Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 02, 2021 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35908 | |
Entity Registrant Name | ARMADA HOFFLER PROPERTIES, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 46-1214914 | |
Entity Address, Address Line One | 222 Central Park Avenue | |
Entity Address, Address Line Two | Suite 2100 | |
Entity Address, City or Town | Virginia Beach | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23462 | |
City Area Code | 757 | |
Local Phone Number | 366-4000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 61,505,432 | |
Amendment Flag | false | |
Entity Central Index Key | 0001569187 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Common stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | AHH | |
Security Exchange Name | NYSE | |
Redeemable convertible preferred stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share | |
Trading Symbol | AHHPrA | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Real estate investments: | |||
Income producing property | $ 1,744,124 | $ 1,680,943 | |
Held for development | 11,294 | 13,607 | |
Construction in progress | 54,871 | 63,367 | |
Gross real estate investments | 1,810,289 | 1,757,917 | |
Accumulated depreciation | (278,218) | (253,965) | |
Net real estate investments | 1,532,071 | 1,503,952 | |
Real estate investments held for sale | 68,762 | 1,165 | |
Cash and cash equivalents | 28,038 | 40,998 | |
Restricted cash | 5,415 | [1] | 9,432 |
Accounts receivable, net | 30,576 | 28,259 | |
Notes receivable, net | 118,164 | 135,432 | |
Construction receivables, including retentions, net | 13,753 | 38,735 | |
Construction contract costs and estimated earnings in excess of billings | 370 | 138 | |
Equity method investment | 9,174 | 1,078 | |
Operating lease right-of-use assets | 23,547 | 32,760 | |
Finance lease right-of-use assets | 47,266 | 23,544 | |
Acquired lease intangible assets | 65,197 | 58,154 | |
Other assets | 42,051 | 43,324 | |
Total Assets | 1,984,384 | 1,916,971 | |
LIABILITIES AND EQUITY | |||
Indebtedness, net | 968,424 | 963,845 | |
Liabilities related to assets held for sale | 60,021 | 0 | |
Accounts payable and accrued liabilities | 26,549 | 23,900 | |
Construction payables, including retentions | 22,078 | 49,821 | |
Billings in excess of construction contract costs and estimated earnings | 2,674 | 6,088 | |
Operating lease liabilities | 31,607 | 41,659 | |
Finance lease liabilities | 46,078 | 17,954 | |
Other liabilities | 62,197 | 56,902 | |
Total Liabilities | 1,219,628 | 1,160,169 | |
Stockholders’ equity: | |||
Preferred stock, $0.01 par value, 100,000,000 shares authorized: 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock, 9,980,000 shares authorized, 6,843,418 shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 171,085 | 171,085 | |
Common stock, $0.01 par value, 500,000,000 shares authorized; 61,324,232 and 59,073,220 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 613 | 591 | |
Additional paid-in capital | 500,889 | 472,747 | |
Distributions in excess of earnings | (130,904) | (112,356) | |
Accumulated other comprehensive loss | (5,420) | (8,868) | |
Total stockholders’ equity | 536,263 | 523,199 | |
Noncontrolling interests in investment entities | 634 | 488 | |
Noncontrolling interests in Operating Partnership | 227,859 | 233,115 | |
Total Equity | 764,756 | 756,802 | |
Total Liabilities and Equity | $ 1,984,384 | $ 1,916,971 | |
[1] | Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 61,324,232 | 59,073,220 |
Common stock, shares outstanding (in shares) | 61,324,232 | 59,073,220 |
Redeemable convertible preferred stock | ||
Preferred Stock dividend rate percentage | 6.75% | 6.75% |
Preferred stock, shares authorized (in shares) | 9,980,000 | 9,980,000 |
Preferred stock, shares issued (in shares) | 6,843,418 | 6,843,418 |
Preferred stock, shares outstanding (in shares) | 6,843,418 | 6,843,418 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Rental revenues | $ 49,560 | $ 39,636 | $ 142,679 | $ 121,840 |
General contracting and real estate services revenues | 17,502 | 58,617 | 71,473 | 163,283 |
Total revenues | 67,062 | 98,253 | 214,152 | 285,123 |
Expenses | ||||
Rental expenses | 12,717 | 10,223 | 34,841 | 27,907 |
Real estate taxes | 5,543 | 4,760 | 16,314 | 13,326 |
General contracting and real estate services expenses | 15,944 | 56,509 | 68,350 | 157,401 |
Depreciation and amortization | 16,886 | 14,176 | 52,237 | 42,232 |
Amortization of right-of-use assets - finance leases | 278 | 147 | 745 | 440 |
General and administrative expenses | 3,449 | 2,601 | 10,957 | 9,382 |
Acquisition, development and other pursuit costs | 8 | 26 | 111 | 555 |
Impairment charges | 0 | 47 | 3,122 | 205 |
Total expenses | 54,825 | 88,489 | 186,677 | 251,448 |
Gain (loss) on real estate dispositions, net | (113) | 3,612 | 3,604 | 6,388 |
Operating income | 12,124 | 13,376 | 31,079 | 40,063 |
Interest income | 3,766 | 4,417 | 14,628 | 16,055 |
Interest expense | (8,827) | (7,523) | (25,220) | (22,938) |
Change in fair value of derivatives and other | 131 | 318 | 838 | (1,424) |
Unrealized credit loss release (provision) | 617 | 33 | 284 | (227) |
Other income (expense), net | (105) | 177 | 81 | 521 |
Income before taxes | 7,706 | 10,798 | 21,690 | 32,050 |
Income tax benefit | 42 | 28 | 522 | 220 |
Net income | 7,748 | 10,826 | 22,212 | 32,270 |
Net (income) loss attributable to noncontrolling interests: | ||||
Investment entities | 0 | 45 | 0 | 181 |
Operating Partnership | (1,237) | (2,262) | (3,477) | (7,548) |
Net income attributable to Armada Hoffler Properties, Inc. | 6,511 | 8,609 | 18,735 | 24,903 |
Preferred stock dividends | (2,887) | (2,220) | (8,661) | (4,462) |
Net income attributable to common stockholders | $ 3,624 | $ 6,389 | $ 10,074 | $ 20,441 |
Net income attributable to common stockholders per share (basic) (in dollars per share) | $ 0.06 | $ 0.11 | $ 0.17 | $ 0.36 |
Net income attributable to common stockholders per share (diluted) (in dollars per share) | $ 0.06 | $ 0.11 | $ 0.17 | $ 0.36 |
Weighted-average common shares outstanding (basic) (in shares) | 61,083 | 57,923 | 60,310 | 57,000 |
Weighted-average common shares outstanding (diluted) (in shares) | 61,083 | 57,923 | 60,310 | 57,000 |
Comprehensive income: | ||||
Net income | $ 7,748 | $ 10,826 | $ 22,212 | $ 32,270 |
Unrealized cash flow hedge gains (losses) | (460) | (118) | 1,347 | (9,886) |
Realized cash flow hedge losses reclassified to net income | 1,123 | 1,070 | 3,304 | 2,260 |
Comprehensive income | 8,411 | 11,778 | 26,863 | 24,644 |
Comprehensive income attributable to Armada Hoffler Properties, Inc. | $ 7,005 | $ 9,311 | $ 22,183 | $ 19,376 |
Revenue, Product and Service [Extensible List] | Real Estate [Member] | Real Estate [Member] | Real Estate [Member] | Real Estate [Member] |
Noncontrolling interests in investment entities | ||||
Expenses | ||||
Net income | $ 0 | $ (45) | ||
Comprehensive income: | ||||
Net income | 0 | (45) | ||
Comprehensive (income) loss attributable to noncontrolling interests: | 0 | 45 | $ 0 | $ 181 |
Noncontrolling interests in Operating Partnership | ||||
Expenses | ||||
Net income | 1,237 | 2,262 | ||
Comprehensive income: | ||||
Net income | 1,237 | 2,262 | ||
Unrealized cash flow hedge gains (losses) | (117) | (31) | ||
Realized cash flow hedge losses reclassified to net income | 286 | 280 | ||
Comprehensive (income) loss attributable to noncontrolling interests: | $ (1,406) | $ (2,512) | $ (4,680) | $ (5,449) |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Equity - USD ($) $ in Thousands | Total | Total stockholders' equity | Preferred stock | Common stock | Additional paid-in capital | Distributions in excess of earnings | Accumulated other comprehensive loss | Noncontrolling interests in investment entities | Noncontrolling interests in Operating Partnership | Redeemable convertible preferred stock | Redeemable convertible preferred stockTotal stockholders' equity | Redeemable convertible preferred stockPreferred stock | Redeemable convertible preferred stockAdditional paid-in capital | Cumulative Effect, Period of Adoption, Adjustment | [1] | Cumulative Effect, Period of Adoption, AdjustmentTotal stockholders' equity | [1] | Cumulative Effect, Period of Adoption, AdjustmentDistributions in excess of earnings | [1] | Cumulative Effect, Period of Adoption, AdjustmentNoncontrolling interests in Operating Partnership | [1] |
Beginning balance at Dec. 31, 2019 | $ 655,447 | $ 408,577 | $ 63,250 | $ 563 | $ 455,680 | $ (106,676) | $ (4,240) | $ 4,462 | $ 242,408 | $ (3,009) | $ (2,185) | $ (2,185) | $ (824) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | 9,135 | 6,992 | 6,992 | (92) | 2,235 | ||||||||||||||||
Unrealized cash flow hedge gains (losses) | (7,489) | (5,438) | (5,438) | (2,051) | |||||||||||||||||
Realized cash flow hedge losses reclassified to net income | 392 | 285 | 285 | 107 | |||||||||||||||||
Net proceeds from issuance of common stock | 1,349 | 1,349 | 1 | 1,348 | |||||||||||||||||
Restricted stock awards, net | 777 | 777 | 1 | 776 | |||||||||||||||||
Dividends declared on preferred stock | (1,067) | (1,067) | (1,067) | ||||||||||||||||||
Dividends and distributions declared | (17,134) | (12,454) | (12,454) | (4,680) | |||||||||||||||||
Ending balance at Mar. 31, 2020 | 638,401 | 396,836 | 63,250 | 565 | 457,804 | (115,390) | (9,393) | 4,370 | 237,195 | ||||||||||||
Beginning balance at Dec. 31, 2019 | 655,447 | 408,577 | 63,250 | 563 | 455,680 | (106,676) | (4,240) | 4,462 | 242,408 | $ (3,009) | $ (2,185) | $ (2,185) | $ (824) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | 32,270 | ||||||||||||||||||||
Unrealized cash flow hedge gains (losses) | (9,886) | ||||||||||||||||||||
Realized cash flow hedge losses reclassified to net income | 2,260 | ||||||||||||||||||||
Ending balance at Sep. 30, 2020 | 751,437 | 519,267 | 171,085 | 579 | 464,632 | (107,262) | (9,767) | 537 | 231,633 | ||||||||||||
Beginning balance at Mar. 31, 2020 | 638,401 | 396,836 | 63,250 | 565 | 457,804 | (115,390) | (9,393) | 4,370 | 237,195 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | 12,309 | 9,302 | 9,302 | (44) | 3,051 | ||||||||||||||||
Unrealized cash flow hedge gains (losses) | (2,279) | (1,657) | (1,657) | (622) | |||||||||||||||||
Realized cash flow hedge losses reclassified to net income | 798 | 580 | 580 | 218 | |||||||||||||||||
Net proceeds from issuance of common stock | 4,416 | 4,416 | 5 | 4,411 | $ 91 | $ 91 | $ 96 | $ (5) | |||||||||||||
Restricted stock awards, net | 515 | 515 | 515 | ||||||||||||||||||
Acquisition of noncontrolling interest in real estate entity | (6,130) | (2,386) | (2,386) | (3,744) | |||||||||||||||||
Dividends and distributions declared | (1,175) | (1,175) | (1,175) | 0 | |||||||||||||||||
Ending balance at Jun. 30, 2020 | 646,946 | 406,522 | 63,346 | 570 | 460,339 | (107,263) | (10,470) | 582 | 239,842 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | 10,826 | 8,609 | 8,609 | (45) | 2,262 | ||||||||||||||||
Unrealized cash flow hedge gains (losses) | (118) | (87) | (87) | (31) | |||||||||||||||||
Realized cash flow hedge losses reclassified to net income | 1,070 | 790 | 790 | 280 | |||||||||||||||||
Net proceeds from issuance of common stock | 1,622 | 1,622 | 2 | 1,620 | $ 101,369 | $ 101,369 | $ 107,739 | $ (6,370) | |||||||||||||
Restricted stock awards, net | 520 | 520 | 520 | ||||||||||||||||||
Issuance of operating partnership units for acquisitions | 67 | 67 | |||||||||||||||||||
Redemption of operating partnership units | 0 | 8,530 | 7 | 8,523 | (8,530) | ||||||||||||||||
Dividends declared on preferred stock | (2,220) | (2,220) | (2,220) | ||||||||||||||||||
Dividends and distributions declared | (8,645) | (6,388) | (6,388) | (2,257) | |||||||||||||||||
Ending balance at Sep. 30, 2020 | 751,437 | 519,267 | 171,085 | 579 | 464,632 | (107,262) | (9,767) | 537 | 231,633 | ||||||||||||
Beginning balance at Dec. 31, 2020 | 756,802 | 523,199 | 171,085 | 591 | 472,747 | (112,356) | (8,868) | 488 | 233,115 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | 6,009 | 5,198 | 5,198 | 811 | |||||||||||||||||
Unrealized cash flow hedge gains (losses) | 2,276 | 1,685 | 1,685 | 591 | |||||||||||||||||
Realized cash flow hedge losses reclassified to net income | 1,078 | 798 | 798 | 280 | |||||||||||||||||
Net proceeds from issuance of common stock | 8,981 | 8,981 | 7 | 8,974 | |||||||||||||||||
Restricted stock awards, net | 632 | 632 | 1 | 631 | |||||||||||||||||
Redemption of operating partnership units | (3) | 131 | 131 | (134) | |||||||||||||||||
Dividends declared on preferred stock | (2,887) | (2,887) | (2,887) | ||||||||||||||||||
Dividends and distributions declared | (12,136) | (9,008) | (9,008) | (3,128) | |||||||||||||||||
Ending balance at Mar. 31, 2021 | 760,752 | 528,729 | 171,085 | 599 | 482,483 | (119,053) | (6,385) | 488 | 231,535 | ||||||||||||
Beginning balance at Dec. 31, 2020 | 756,802 | 523,199 | 171,085 | 591 | 472,747 | (112,356) | (8,868) | 488 | 233,115 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | 22,212 | ||||||||||||||||||||
Unrealized cash flow hedge gains (losses) | 1,347 | ||||||||||||||||||||
Realized cash flow hedge losses reclassified to net income | 3,304 | ||||||||||||||||||||
Ending balance at Sep. 30, 2021 | 764,756 | 536,263 | 171,085 | 613 | 500,889 | (130,904) | (5,420) | 634 | 227,859 | ||||||||||||
Beginning balance at Mar. 31, 2021 | 760,752 | 528,729 | 171,085 | 599 | 482,483 | (119,053) | (6,385) | 488 | 231,535 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | 8,455 | 7,026 | 7,026 | 1,429 | |||||||||||||||||
Unrealized cash flow hedge gains (losses) | (469) | (349) | (349) | (120) | |||||||||||||||||
Realized cash flow hedge losses reclassified to net income | 1,103 | 820 | 820 | 283 | |||||||||||||||||
Net proceeds from issuance of common stock | 14,116 | 14,116 | 11 | 14,105 | |||||||||||||||||
Restricted stock awards, net | 473 | 473 | 473 | ||||||||||||||||||
Acquisition of noncontrolling interest in real estate entity | (804) | (950) | (950) | 146 | |||||||||||||||||
Dividends declared on preferred stock | (2,887) | (2,887) | (2,887) | ||||||||||||||||||
Dividends and distributions declared | (13,120) | (9,783) | (9,783) | (3,337) | |||||||||||||||||
Ending balance at Jun. 30, 2021 | 767,619 | 537,195 | 171,085 | 610 | 496,111 | (124,697) | (5,914) | 634 | 229,790 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | 7,748 | 6,511 | 6,511 | 0 | 1,237 | ||||||||||||||||
Unrealized cash flow hedge gains (losses) | (460) | (343) | (343) | (117) | |||||||||||||||||
Realized cash flow hedge losses reclassified to net income | 1,123 | 837 | 837 | 286 | |||||||||||||||||
Net proceeds from issuance of common stock | 4,331 | 4,331 | 3 | 4,328 | |||||||||||||||||
Restricted stock awards, net | 450 | 450 | 450 | ||||||||||||||||||
Dividends declared on preferred stock | (2,887) | (2,887) | (2,887) | ||||||||||||||||||
Dividends and distributions declared | (13,168) | (9,831) | (9,831) | (3,337) | |||||||||||||||||
Ending balance at Sep. 30, 2021 | $ 764,756 | $ 536,263 | $ 171,085 | $ 613 | $ 500,889 | $ (130,904) | $ (5,420) | $ 634 | $ 227,859 | ||||||||||||
[1] | The Company recorded cumulative effect adjustments related to the new Current Expected Credit Losses ("CECL") standard in the first quarter of 2020. |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Equity (Parenthetical) - $ / shares | 3 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||||
Dividend declared (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.15 | $ 0.11 | $ 0.22 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
OPERATING ACTIVITIES | |||
Net income | $ 22,212 | $ 32,270 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of buildings and tenant improvements | 38,521 | 31,565 | |
Amortization of leasing costs, in-place lease intangibles and below market ground rents - operating leases | 13,716 | 10,667 | |
Accrued straight-line rental revenue | (4,209) | (3,434) | |
Amortization of leasing incentives and above or below-market rents | (794) | (593) | |
Amortization of right-of-use assets - finance leases | 745 | 440 | |
Accrued straight-line ground rent expense | 157 | 54 | |
Unrealized credit loss provision (release) | (284) | 227 | |
Adjustment for uncollectable lease accounts | 683 | 3,195 | |
Noncash stock compensation | 1,830 | 1,907 | |
Impairment charges | 3,122 | 205 | |
Noncash interest expense | 2,178 | 1,499 | |
Gain on real estate dispositions, net | (3,604) | (6,388) | |
Change in fair value of derivatives and other | (838) | 1,424 | |
Changes in operating assets and liabilities: | |||
Property assets | (1,303) | (6,642) | |
Property liabilities | 4,555 | 4,042 | |
Construction assets | 25,329 | (8,328) | |
Construction liabilities | (34,181) | 18,824 | |
Interest receivable | 1,387 | (13,167) | |
Net cash provided by operating activities | 69,222 | 67,767 | |
INVESTING ACTIVITIES | |||
Development of real estate investments | (38,659) | (52,157) | |
Tenant and building improvements | (6,621) | (8,195) | |
Acquisitions of real estate investments, net of cash received | (73,569) | (34,785) | |
Dispositions of real estate investments, net of selling costs | 12,583 | 96,458 | |
Notes receivable issuances | (26,230) | (17,687) | |
Notes receivable paydowns | 42,301 | 16,220 | |
Leasing costs | (2,595) | (2,438) | |
Leasing incentives | (467) | (1,289) | |
Contributions to equity method investments | (8,096) | 0 | |
Net cash used for investing activities | (101,353) | (3,873) | |
FINANCING ACTIVITIES | |||
Proceeds from issuance of cumulative redeemable perpetual preferred stock, net | 0 | 101,460 | |
Proceeds from issuance of common stock, net | 27,428 | 7,387 | |
Common shares tendered for tax withholding | (553) | (534) | |
Debt issuances, credit facility and construction loan borrowings | 59,942 | 81,004 | |
Debt and credit facility repayments, including principal amortization | (25,734) | (181,182) | |
Debt issuance costs | (2,463) | (326) | |
Acquisition of NCI in consolidated RE investments | (804) | 0 | |
Dividends and distributions | (42,662) | (36,058) | |
Net cash provided by (used for) financing activities | 15,154 | (28,249) | |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (16,977) | 35,645 | |
Cash, cash equivalents, and restricted cash, beginning of period | 50,430 | 43,579 | |
Cash, cash equivalents, and restricted cash, end of period | [1] | 33,453 | 79,224 |
Supplemental Disclosures (noncash transactions): | |||
Increase (decrease) in dividends and distributions payable | 4,423 | (5,817) | |
Increase (decrease) in accrued capital improvements and development costs | 5,804 | (12,564) | |
Note payable issued in acquisition of noncontrolling interest in real estate investment | 0 | 6,130 | |
Issuance of operating partnership units for acquisitions | 0 | 67 | |
Operating Partnership units redeemed for common shares | 131 | 8,530 | |
Note payable recorded for mandatorily redeemable partnership interest | 0 | 3,829 | |
Debt assumed at fair value in conjunction with real estate purchases | 19,989 | 22,512 | |
Recognition of finance lease right-of-use assets | 24,466 | 0 | |
Recognition of finance lease liabilities | $ 27,940 | $ 0 | |
[1] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statements of Cash Flows (in thousands): September 30, 2021 September 30, 2020 Cash and cash equivalents $ 28,038 $ 73,579 Restricted cash (a) 5,415 5,645 Cash, cash equivalents, and restricted cash $ 33,453 $ 79,224 (a) Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - Footnotes (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | ||
Statement of Cash Flows [Abstract] | ||||||
Cash and cash equivalents | $ 28,038 | $ 40,998 | $ 73,579 | |||
Restricted cash | 5,415 | [1] | 9,432 | 5,645 | [1] | |
Cash, cash equivalents, and restricted cash | $ 33,453 | [2] | $ 50,430 | $ 79,224 | [2] | $ 43,579 |
[1] | Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements. | |||||
[2] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statements of Cash Flows (in thousands): September 30, 2021 September 30, 2020 Cash and cash equivalents $ 28,038 $ 73,579 Restricted cash (a) 5,415 5,645 Cash, cash equivalents, and restricted cash $ 33,453 $ 79,224 (a) Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements. |
Business of Organization
Business of Organization | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business of Organization | Business of Organization Armada Hoffler Properties, Inc. (the "Company") is a full-service real estate company with extensive experience developing, building, owning, and managing high-quality, institutional-grade office, retail, and multifamily properties in attractive markets primarily throughout the Mid-Atlantic and Southeastern United States. The Company is a real estate investment trust ("REIT"), the sole general partner of Armada Hoffler, L.P. (the "Operating Partnership") and, as of September 30, 2021, owned 74.6% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are carried on primarily through the Operating Partnership and the wholly owned subsidiaries thereof. As of September 30, 2021, the Company's property portfolio consisted of 57 stabilized operating properties and three properties either under development or not yet stabilized. Refer to Note 5 for information related to the Company's recent acquisitions and dispositions of properties. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The condensed consolidated financial statements include the financial position and results of operations of the Company and its consolidated subsidiaries, including the Operating Partnership, its wholly-owned subsidiaries, and any interests in variable interest entities ("VIEs") where the Company has been determined to be the primary beneficiary. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition, and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year, particularly in light of the novel coronavirus ("COVID-19") pandemic and its effects on the domestic and global economies during interim periods in 2020 and 2021. The pandemic has led to continuous changes in operational restrictions imposed by governments and other authorities around the world, including federal, state, and local authorities in the United States instituting restrictions on freedom of movement and business operations such as travel bans, border closings, business closures, quarantines, and shelter-in-place orders, causing many of the Company’s tenants, particularly in the Company’s retail portfolio, to suspend or limit operations for certain periods of time. While operations in many areas have been allowed to fully or partially re-open, no assurance can be given that such closures or restrictions will not be reinstituted in the future. The extent of the COVID-19 pandemic’s effect on our business activity will depend on future developments, including the duration and intensity of the pandemic, the timing and effectiveness of COVID-19 vaccines (including against COVID-19 variant strains), the duration of, or the reinstatement of, government measures to mitigate the pandemic or address its effects, and the timing and effectiveness of vaccine administration, all of which are uncertain and difficult to predict. Due to the uncertainty surrounding the COVID-19 pandemic, we are not able at this time to estimate the full effect of these factors on our business. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best judgment after considering past, current, and expected events and economic conditions. Actual results could differ significantly from management’s estimates. Reclassifications Certain items have been reclassified from their prior year classifications to conform to the current year presentation. The amounts previously classified as Interest expense on indebtedness and Interest expense on finance leases for the three and nine months ended September 30, 2020 in the Condensed Consolidated Statement of Comprehensive Income are now included in a single line item as Interest expense. These reclassifications had no effect on net income or stockholders' equity as previously reported. Recent Accounting Pronouncements Recently Issued Accounting Standards Not Yet Adopted: Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04 Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848), which became effective on March 12, 2020 and generally can be applied through December 31, 2022. 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. The Company is currently evaluating the effect that adopting this standard may have on its Consolidated Financial Statements. Earnings Per Share In August 2020, the FASB issued ASU 2020-06 an update to ASC Topic 470 and ASC Topic 815, which will be effective beginning January 1, 2022. ASU 2020-06 simplifies the accounting for convertible instruments and removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception. This ASU also simplifies diluted earnings per share calculation in certain areas and provides updated disclosure requirements. The Company is currently evaluating the impact of ASU 2020-06 on its consolidated financial statements. Other Accounting Policies See the Company's Annual Report on Form 10-K for the year ended December 31, 2020 for a description of other accounting principles upon which basis the accompanying consolidated financial statements were prepared. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segments | Segments Net operating income (segment revenues minus segment expenses) is the measure used by the Company’s chief operating decision-maker to assess segment performance. Net operating income is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, net operating income should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate net operating income in the same manner. The Company considers net operating income to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate and construction businesses. Net operating income of the Company’s reportable segments for the three and nine months ended September 30, 2021 and 2020 was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Office real estate Rental revenues $ 11,933 $ 11,456 $ 35,324 $ 32,142 Rental expenses 3,409 3,042 9,222 7,879 Real estate taxes 1,547 1,375 4,318 3,749 Segment net operating income 6,977 7,039 21,784 20,514 Retail real estate Rental revenues 20,223 15,669 57,682 54,794 Rental expenses 3,270 2,618 9,119 8,096 Real estate taxes 2,100 1,808 6,307 5,981 Segment net operating income 14,853 11,243 42,256 40,717 Multifamily residential real estate Rental revenues 17,404 12,511 49,673 34,904 Rental expenses 6,038 4,563 16,500 11,932 Real estate taxes 1,896 1,577 5,689 3,596 Segment net operating income 9,470 6,371 27,484 19,376 General contracting and real estate services Segment revenues 17,502 58,617 71,473 163,283 Segment expenses 15,944 56,509 68,350 157,401 Segment gross profit 1,558 2,108 3,123 5,882 Net operating income $ 32,858 $ 26,761 $ 94,647 $ 86,489 Rental expenses represent costs directly associated with the operation and management of the Company’s real estate properties. Rental expenses include asset management expenses, property management fees, repairs and maintenance, insurance, and utilities. General contracting and real estate services revenues for the three months ended September 30, 2021 and 2020 exclude revenue related to intercompany construction contracts of $8.6 million and $3.2 million, respectively, as it is eliminated in consolidation. General contracting and real estate services revenues for the nine months ended September 30, 2021 and 2020 exclude revenue related to intercompany construction contracts of $16.0 million and $24.7 million, respectively. General contracting and real estate services expenses for the three months ended September 30, 2021 and 2020 exclude expenses related to intercompany construction contracts of $8.6 million and $3.2 million, respectively. General contracting and real estate services expenses for the nine months ended September 30, 2021 and 2020 exclude expenses related to intercompany construction contracts of $16.0 million and $24.5 million, respectively. The following table reconciles net operating income to net income, the most directly comparable GAAP measure, for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net operating income $ 32,858 $ 26,761 $ 94,647 $ 86,489 Depreciation and amortization (16,886) (14,176) (52,237) (42,232) Amortization of right-of-use assets - finance leases (278) (147) (745) (440) General and administrative expenses (3,449) (2,601) (10,957) (9,382) Acquisition, development and other pursuit costs (8) (26) (111) (555) Impairment charges — (47) (3,122) (205) Gain (loss) on real estate dispositions, net (113) 3,612 3,604 6,388 Interest income 3,766 4,417 14,628 16,055 Interest expense (8,827) (7,523) (25,220) (22,938) Change in fair value of derivatives and other 131 318 838 (1,424) Unrealized credit loss release (provision) 617 33 284 (227) Other income (expense), net (105) 177 81 521 Income tax benefit 42 28 522 220 Net income $ 7,748 $ 10,826 $ 22,212 $ 32,270 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases Lessee Disclosures As a lessee, the Company has nine ground leases on eight properties. These ground leases have maximum lease terms (including renewal options) that expire between 2074 and 2117. The exercise of lease renewal options is at the Company's sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Six of these leases have been classified as operating leases and three of these leases have been classified as finance leases. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants. Lessor Disclosures As a lessor, the Company leases its properties under operating leases and recognizes base rents on a straight-line basis over the lease term. The Company also recognizes revenue from tenant recoveries, through which tenants reimburse the Company on an accrual basis for certain expenses such as utilities, janitorial services, repairs and maintenance, security and alarms, parking lot and ground maintenance, administrative services, management fees, insurance, and real estate taxes. Rental revenues are reduced by the amount of any leasing incentives amortized on a straight-line basis over the term of the applicable lease. In addition, the Company recognizes contingent rental revenue (e.g., percentage rents based on tenant sales thresholds) when the sales thresholds are met. Many tenant leases include one or more options to renew, with renewal terms that can extend the lease term from one Rental revenue for the three and nine months ended September 30, 2021 and 2020 comprised the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Base rent and tenant charges $ 48,391 $ 37,532 $ 137,675 $ 117,812 Accrued straight-line rental adjustment 883 1,925 4,210 3,435 Lease incentive amortization (167) (164) (485) (497) Above/below market lease amortization 453 343 1,279 1,090 Total rental revenue $ 49,560 $ 39,636 $ 142,679 $ 121,840 |
Leases | Leases Lessee Disclosures As a lessee, the Company has nine ground leases on eight properties. These ground leases have maximum lease terms (including renewal options) that expire between 2074 and 2117. The exercise of lease renewal options is at the Company's sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Six of these leases have been classified as operating leases and three of these leases have been classified as finance leases. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants. Lessor Disclosures As a lessor, the Company leases its properties under operating leases and recognizes base rents on a straight-line basis over the lease term. The Company also recognizes revenue from tenant recoveries, through which tenants reimburse the Company on an accrual basis for certain expenses such as utilities, janitorial services, repairs and maintenance, security and alarms, parking lot and ground maintenance, administrative services, management fees, insurance, and real estate taxes. Rental revenues are reduced by the amount of any leasing incentives amortized on a straight-line basis over the term of the applicable lease. In addition, the Company recognizes contingent rental revenue (e.g., percentage rents based on tenant sales thresholds) when the sales thresholds are met. Many tenant leases include one or more options to renew, with renewal terms that can extend the lease term from one Rental revenue for the three and nine months ended September 30, 2021 and 2020 comprised the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Base rent and tenant charges $ 48,391 $ 37,532 $ 137,675 $ 117,812 Accrued straight-line rental adjustment 883 1,925 4,210 3,435 Lease incentive amortization (167) (164) (485) (497) Above/below market lease amortization 453 343 1,279 1,090 Total rental revenue $ 49,560 $ 39,636 $ 142,679 $ 121,840 |
Real Estate Investment
Real Estate Investment | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Real Estate Investment | Real Estate Investment Property Acquisitions Delray Beach Plaza On February 26, 2021, the Company acquired Delray Beach Plaza, a Whole Foods-anchored retail property located in Delray Beach, Florida, for a contract price of $27.6 million plus capitalized transaction costs of $0.2 million. The developer of this property repaid the Company's mezzanine note receivable of $14.3 million at the time of the acquisition. Hoffler Place On June 28, 2021, the Company purchased the remaining 7.5% ownership interest in Hoffler Place for a cash payment of $0.3 million. Summit Place On June 28, 2021, the Company purchased the remaining 10% ownership interest in Summit Place for a cash payment of $0.5 million. Overlook Village On July 28, 2021, the Company acquired Overlook Village, a retail center in Asheville, North Carolina, for a contract price of $28.3 million plus capitalized acquisition costs of $0.1 million. Greenbrier Square On August 24, 2021, the Company acquired Greenbrier Square, a Kroger-anchored retail center in Chesapeake, Virginia, for total consideration of $36.5 million plus capitalized acquisition costs of $0.3 million. As a part of this acquisition, the Company assumed a note payable of $20.0 million. The following table summarizes the purchase price allocation (including acquisition costs) based on relative fair value of the assets acquired and intangible liabilities assumed for the three operating properties purchased during the nine months ended September 30, 2021 (in thousands): Delray Beach Plaza Overlook Village Greenbrier Square Land $ — $ 6,328 $ 8,549 Site improvements 4,607 1,727 1,974 Building and improvements 22,544 18,375 19,196 In-place leases 7,209 3,997 6,659 Above-market leases — 81 1,753 Below-market leases (3,121) (2,146) (1,365) Finance lease liabilities (27,940) — — Finance lease right-of-use assets 24,466 — — Fair value adjustment on acquired debt — — 11 Net assets acquired $ 27,765 $ 28,362 $ 36,777 Property Dispositions On January 4, 2021, the Company completed the sale of the 7-Eleven outparcel at Hanbury Village for a sales price of $2.9 million. The gain on disposition was $2.4 million. On January 14, 2021, the Company completed the sale of a land outparcel at Nexton Square for a sale price of $0.9 million. There was no gain or loss on the disposition. In conjunction with the sale, the Company paid down the Nexton Square loan by $0.8 million. On March 16, 2021, the Company completed the sale of Oakland Marketplace for a sale price of $5.5 million. The gain on disposition was $1.1 million. On March 18, 2021, the Company completed the sale of easement rights at Courthouse 7-Eleven for a sale price of $0.3 million. The gain on disposition was $0.2 million. Impairment and Disposal of Real Estate During the three months ended March 31, 2021, the Company recognized impairment of real estate of $3.0 million related to the Socastee Commons shopping center in Myrtle Beach, South Carolina. The Company anticipated a decline in cash flows due to the expiration of the anchor tenant lease. The Company had not re-leased the anchor tenant space and had determined that it was not probable that this space would be leased at rates sufficient to recover the Company’s investment in the property. The Company recorded an impairment loss equal to the excess of the book value of the property’s assets over the estimated fair value of the property during the first quarter of 2021. On August 25, 2021, the Company completed the sale of Socastee Commons for a price of $3.8 million. The loss on disposition was $0.1 million. Real Estate Investments Held for Sale During the three months ended September 30, 2021, the Company classified the Johns Hopkins Village multifamily property in real estate investments held for sale. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2021. Equity Method Investment Harbor Point Parcel 3 The Company owns a 50% interest in Harbor Point Parcel 3, a joint venture with Beatty Development Group, for purposes of developing T. Rowe Price's new global headquarters office building in Baltimore, Maryland. The Company is a noncontrolling partner in the joint venture and will serve as the project's general contractor. During the nine months ended September 30, 2021, the Company invested $8.1 million in Harbor Point Parcel 3. The Company has an estimated equity commitment of up to $30.0 million relating to this project. As of September 30, 2021 and December 31, 2020, the carrying value of the Company's investment in Harbor Point Parcel 3 was $9.2 million and $1.1 million, respectively. For the nine months ended September 30, 2021, Harbor Point Parcel 3 had no operating activity, and therefore the Company received no allocated income. Based on the terms of the operating agreement, the Company has concluded that Harbor Point Parcel 3 is a VIE and that the Company holds a variable interest. The Company does not have the power to direct the activities of the project that most significantly impact its performance. Accordingly, the Company is not the project's primary beneficiary and, therefore, does not consolidate Harbor Point Parcel 3 in its consolidated financial statements. The Company has significant influence over the project due to its 50% ownership as well as certain rights and responsibilities relating to the development project. The Company's investment in the project is recorded as an equity method investment in the consolidated balance sheets. |
Notes Receivable and Current Ex
Notes Receivable and Current Expected Credit Losses | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Notes Receivable and Current Expected Credit Losses | Notes Receivable and Current Expected Credit Losses Notes Receivable The Company had the following notes receivable outstanding as of September 30, 2021 and December 31, 2020 ($ in thousands): Outstanding loan amount Interest compounding Development Project September 30, December 31, Maximum loan commitment Interest rate Delray Beach Plaza $ — $ 14,289 $ 17,000 15.0 % (a) Annually Interlock Commercial 92,254 85,318 107,000 15.0 % (b) None Nexton Multifamily 18,549 — 22,315 11.0 % Annually Solis Apartments at Interlock — 28,969 41,100 13.0 % Annually Total mezzanine 110,803 128,576 $ 187,415 Other notes receivable 7,124 6,809 Notes receivable guarantee premium 1,631 2,631 Allowance for credit losses (1,394) (c) (2,584) Total notes receivable $ 118,164 $ 135,432 ________________________________________ (a) Loan was placed on nonaccrual status effective April 1, 2020. (b) $3.0 million of this loan is subject to an interest rate of 18%. (c) The amount excludes $0.1 million of CECL allowance that relates to the unfunded commitments, which was recorded as a liability under Other Liabilities in our consolidated balance sheet. Interest on the mezzanine loans is accrued and funded utilizing the interest reserves for each loan, which are components of the respective maximum loan commitments, and such accrued interest is generally added to the loan receivable balances. The Company recognized interest income for the three and nine months ended September 30, 2021 and 2020 as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Development Project 2021 2020 2021 2020 The Residences at Annapolis Junction $ — $ — (a) $ — $ 2,468 (a)(b) Delray Beach Plaza — — (a) — (a) 489 (a) Nexton Multifamily 397 — 658 — Nexton Square — 380 — 1,177 Interlock Commercial 3,260 (b) 3,189 (b) 9,644 (b) 9,364 (b) Solis Apartments at Interlock — 847 4,005 (c) 2,522 Total mezzanine 3,657 4,416 14,307 16,020 Other interest income 109 1 321 35 Total interest income $ 3,766 $ 4,417 $ 14,628 $ 16,055 ________________________________________ (a) Loan was placed on nonaccrual status effective April 1, 2020. (b) Includes recognition of interest income related to an exit fee that is due upon repayment of the loan. (c) Includes prepayment premium of $2.4 million from early payoff of the loan. Delray Beach Plaza On February 26, 2021, the Company acquired Delray Beach Plaza, a Whole Foods-anchored retail property located in Delray Beach, Florida for a contract price of $27.6 million plus capitalized transaction costs of $0.2 million. The developer of this property repaid the Company's mezzanine note receivable of $14.3 million at the time of the acquisition, which consisted of $12.3 million of principal and $2.0 million of accrued interest. Interlock Commercial In March 2021, the Company loaned an additional $7.5 million as part of the Interlock Commercial loan to fund project costs due to an additional equity requirement to reduce the senior loan. In September 2021, the loan was modified to increase the maximum loan commitment to $107.0 million and to modify and clarify certain rights and responsibilities under the loan. During the three months ended September 30, 2021, the borrower repaid $5.0 million, comprised of $3.8 million of principal and $1.2 million of accrued interest. During the nine months ended September 30, 2021, the borrower repaid $11.0 million of this loan, comprised of $6.8 million of principal and $4.2 million of accrued interest. Nexton Multifamily On April 1, 2021, the Company entered into a $22.3 million preferred equity investment for the development of a multifamily property located in Summerville, South Carolina, adjacent to the Company's Nexton Square property. The investment has economic terms consistent with a note receivable, including a mandatory redemption or maturity on October 1, 2026, and it is accounted for as a note receivable. The Company's investment bears interest at a rate of 11%, compounded annually. Management has concluded that this entity is a VIE. Because the other investor in the project, TP Nexton LLC, is the developer of Nexton Multifamily, the Company does not have the power to direct the activities of the project that most significantly impact its performance. Accordingly, the Company is not the project's primary beneficiary and does not consolidate the project in its consolidated financial statements. Solis Apartments at Interlock On June 7, 2021 the borrower paid off the Solis Apartments at Interlock note receivable in full. The Company received a total of $33.0 million, which consisted of $23.2 million outstanding principal, $7.4 million of accrued interest, and a prepayment premium of $2.4 million that resulted from the early payoff of the loan. Allowance for Loan Losses The Company is exposed to credit losses primarily through its mezzanine lending activities. As of September 30, 2021, the Company had two mezzanine loans, both of which are financing development projects in various stages of completion or lease-up. Each of these projects is subject to a loan that is senior to the Company’s mezzanine loan. Interest on these loans is paid in kind and is generally not expected to be paid until a sale of the project after completion of the development. The Company's management performs a quarterly analysis of the loan portfolio to determine the risk of credit loss based on the progress of development activities, including leasing activities, projected development costs, and current and projected mezzanine and senior construction loan balances. The Company estimates future losses on its notes receivable using risk ratings that correspond to probabilities of default and loss given default. The Company's risk ratings are as follows: • Pass: loans in this category are adequately collateralized by a development project with conditions materially consistent with the Company's underwriting assumptions. • Special Mention: loans in this category show signs that the economic performance of the project may suffer as a result of slower-than-expected leasing activity or an extended development or marketing timeline. Loans in this category warrant increased monitoring by management. • Substandard: loans in this category may not be fully collected by the Company unless remediation actions are taken. Remediation actions may include obtaining additional collateral or assisting the borrower with asset management activities to prepare the project for sale. The Company will also consider placing the loan on nonaccrual status if it does not believe that additional interest accruals will ultimately be collected. On a quarterly basis, the Company compares the risk inherent in its loans to industry loan loss data experienced during past business cycles. The Company updated the risk ratings for each of its notes receivable as of September 30, 2021 and obtained industry loan loss data relative to these risk ratings. Each of the outstanding loans as of September 30, 2021 was Pass-rated. At December 31, 2020, the Company reported $135.4 million of notes receivable, net of allowances of $2.6 million. At September 30, 2021, the Company reported $118.2 million of notes receivable, net of allowances of $1.4 million. Changes in the allowance for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Beginning balance $ 2,129 $ 3,085 $ 2,584 $ — Cumulative effect of accounting change — — — 2,825 Unrealized credit loss provision (release) (617) (33) (284) 227 Extinguishment due to acquisition — — (788) — Ending balance (a) $ 1,512 $ 3,052 $ 1,512 $ 3,052 ________________________________________ (a) The amount as of September 30, 2021 includes $0.1 million of allowance related to the unfunded commitments, which was recorded as Other liabilities on the Consolidated Balance Sheet. The Company places loans on non-accrual status when the loan balance, together with the balance of any senior loan, approximately equals the estimated realizable value of the underlying development project. As of December 31, 2020, the Company had one loan with non-accrual status with an amortized cost basis of $13.6 million. As of September 30, 2021, there were no loans on non-accrual status. |
Construction Contracts
Construction Contracts | 9 Months Ended |
Sep. 30, 2021 | |
Contractors [Abstract] | |
Construction Contracts | Construction Contracts Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of September 30, 2021 during the next twelve months. Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized. The following table summarizes the changes to the balances in the Company’s construction contract costs and estimated earnings in excess of billings account and the billings in excess of construction contract costs and estimated earnings account for the nine months ended September 30, 2021 and 2020 (in thousands): Nine Months Ended Nine Months Ended Construction contract costs and estimated earnings in excess of billings Billings in excess of construction contract costs and estimated earnings Construction contract costs and estimated earnings in excess of billings Billings in excess of construction contract costs and estimated earnings Beginning balance $ 138 $ 6,088 $ 249 $ 5,306 Revenue recognized that was included in the balance at the beginning of the period — (6,088) — (5,306) Increases due to new billings, excluding amounts recognized as revenue during the period — 3,791 — 7,237 Transferred to receivables (665) — (468) — Construction contract costs and estimated earnings not billed during the period 370 — 215 — Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion 527 (1,117) 219 (152) Ending balance $ 370 $ 2,674 $ 215 $ 7,085 The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable. Pre-contract costs of $2.6 million and $1.7 million were deferred as of September 30, 2021 and December 31, 2020, respectively. Amortization of pre-contract costs for the nine months ended September 30, 2021 and 2020 was $0.2 million and $0.7 million, respectively. Construction receivables and payables include retentions, which are amounts that are generally withheld until the completion of the contract or the satisfaction of certain restrictive conditions such as fulfillment guarantees. As of September 30, 2021 and December 31, 2020, construction receivables included retentions of $7.1 million and $17.1 million, respectively. The Company expects to collect substantially all construction receivables outstanding as of September 30, 2021 during the next twelve months. As of September 30, 2021 and December 31, 2020, construction payables included retentions of $6.5 million and $17.7 million, respectively. The Company expects to pay substantially all construction payables outstanding as of September 30, 2021 during the next twelve months. The Company’s net position on uncompleted construction contracts comprised the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Costs incurred on uncompleted construction contracts $ 360,247 $ 461,725 Estimated earnings 14,427 13,205 Billings (376,978) (480,880) Net position $ (2,304) $ (5,950) Construction contract costs and estimated earnings in excess of billings $ 370 $ 138 Billings in excess of construction contract costs and estimated earnings (2,674) (6,088) Net position $ (2,304) $ (5,950) The above table reflects the net effect of projects closed as of September 30, 2021 and December 31, 2020, respectively. The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of September 30, 2021 and 2020 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Beginning backlog $ 70,219 $ 193,742 $ 71,258 $ 242,622 New contracts/change orders 53,590 (12,461) 106,992 43,469 Work performed (16,944) (58,590) (71,385) (163,400) Ending backlog $ 106,865 $ 122,691 $ 106,865 $ 122,691 The Company expects to complete a majority of the uncompleted contracts in place as of September 30, 2021 during the next 12 to 18 months. |
Indebtedness
Indebtedness | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Credit Facility The Company has a senior credit facility that was amended and restated on October 3, 2019, which provides for a $355.0 million credit facility comprised of a $150.0 million senior unsecured revolving credit facility (the "revolving credit facility") and a $205.0 million senior unsecured term loan facility (the "term loan facility" and, together with the revolving credit facility, the "credit facility"), with a syndicate of banks. The credit facility includes an accordion feature that allows the total commitments to be further increased to $700.0 million, subject to certain conditions, including obtaining commitments from any one or more lenders. The revolving credit facility has a scheduled maturity date of January 24, 2024, with two six-month extension options, subject to certain conditions, including payment of a 0.075% extension fee at each extension. The term loan facility has a scheduled maturity date of January 24, 2025. The revolving credit facility bears interest at LIBOR (the London Inter-Bank Offered Rate) plus a margin ranging from 1.30% to 1.85% and the term loan facility bears interest at LIBOR plus a margin ranging from 1.25% to 1.80%, in each case depending on the Company's total leverage. The Company is also obligated to pay an unused commitment fee of 15 or 25 basis points on the unused portions of the commitments under the revolving credit facility, depending on the amount of borrowings under the credit facility. As of September 30, 2021 and December 31, 2020, the outstanding balance on the revolving credit facility was $30.0 million and $10.0 million, respectively. The outstanding balance on the term loan facility was $205.0 million as of both dates. As of September 30, 2021, the effective interest rates on the revolving credit facility and the term loan facility were 1.58% and 1.53%, respectively. The Company may, at any time, voluntarily prepay any loan under the credit facility in whole or in part without premium or penalty. The Company's unencumbered borrowing pool will support revolving borrowings of up to $134 million as of September 30, 2021. The Operating Partnership is the borrower, and its obligations under the credit facility are guaranteed by the Company and certain of its subsidiaries that are not otherwise prohibited from providing such guaranty. The credit agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Company's ability to borrow under the credit facility is subject to ongoing compliance with a number of financial covenants, affirmative covenants, and other restrictions. The credit agreement includes customary events of default, in certain cases subject to customary cure periods. The occurrence of an event of default, if not cured within the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest, and all other amounts payable under the credit facility to be immediately due and payable. On January 7, 2021, the Operating Partnership entered into a $15.0 million standby letter of credit using the available capacity under the credit facility to guarantee the funding of its investment in the Harbor Point Parcel 3 joint venture, which is the developer of T. Rowe Price's new global headquarters. This letter of credit is available for draw down on the revolving credit facility in the event the Company does not meet its equity requirement. The Company is currently in compliance with all covenants governing the credit facility. Other 2021 Financing Activity On January 15, 2021, the Company refinanced the loan secured by 4525 Main Street and Encore Apartments. The Company increased the balance by $1.5 million, bringing the total balance of the loan to $57.0 million. The new loan bears interest at a rate of 2.93% and will mature on February 10, 2026. On January 28, 2021, the Company refinanced the Nexton Square loan and paid the balance down by $2.0 million, bringing the balance to $20.1 million. The loan bears interest at a rate of LIBOR plus a spread of 2.25% (LIBOR has a 0.25% floor) and will mature on February 1, 2023. On March 8, 2021, the Company obtained a loan secured by Delray Beach Plaza in the amount of $14.5 million. The loan bears interest at a rate of LIBOR plus a spread of 3.00% and will mature on March 8, 2026. On April 15, 2021, the Company refinanced the $19.5 million Southgate Square loan. The loan bears interest at a rate of LIBOR plus a spread of 2.25% (LIBOR has a 0.75% floor) and will mature on April 29, 2024. The loan term may be extended for an additional two years under the satisfaction of certain criteria. On May 5, 2021, the Company entered into a $35.1 million construction loan agreement for the Chronicle Mill development project. The loan bears interest rate at LIBOR plus a spread of 3.00% (LIBOR has a 0.25% floor). The loan matures on May 5, 2024 and has two 12-month extension options. On August 24, 2021, as a part of the Greenbrier Square acquisition, the Company assumed a note payable of $20.0 million. The loan bears interest at a fixed rate of 3.74% and will mature on October 10, 2027. In September 2021, the loan covenants for the syndicated loan secured by Wills Wharf were modified to extend the deadline for the Company to meet a lease-up requirement included in the loan agreement from October 1, 2021 to February 1, 2022. On September 30, 2021, the Company refinanced the loan secured by Thames Street Wharf. The new $71.0 million loan bears interest at a rate of Bloomberg Short-Term Bank Yield Index ("BSBY") plus a spread of 1.30% and will mature on September 30, 2026. The Company simultaneously entered into an interest rate swap agreement that effectively fixes the interest rate at 2.35% for the term of the loan. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and other liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of interest rate derivatives in the condensed consolidated statements of comprehensive income. For derivatives that qualify as cash flow hedges, the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. As of September 30, 2021, the Company had the following LIBOR and Secured Overnight Financing Rate ("SOFR") interest rate caps ($ in thousands): Effective Date Maturity Date Notional Amount Strike Rate Premium Paid 5/15/2019 6/1/2022 $ 100,000 2.50% (LIBOR) $ 288 1/10/2020 2/1/2022 50,000 (a) 1.75% (LIBOR) 87 1/28/2020 2/1/2022 50,000 (a) 1.75% (LIBOR) 62 3/2/2020 3/1/2022 100,000 (a) 1.50% (LIBOR) 111 7/1/2020 7/1/2023 100,000 (a) 0.50% (LIBOR) 232 11/1/2020 11/1/2023 84,375 (a) 1.84% (SOFR) (b) 91 2/2/2021 2/1/2023 100,000 0.50% (LIBOR) 45 3/4/2021 4/1/2023 14,479 2.50% (LIBOR) 4 5/5/2021 5/1/2023 50,000 0.50% (LIBOR) 75 5/5/2021 5/1/2023 35,100 0.50% (LIBOR) 55 6/16/2021 7/1/2023 100,000 0.50% (LIBOR) 120 Total $ 783,954 $ 1,170 ________________________________________ (a) Designated as a cash flow hedge. (b) This interest rate cap is subject to SOFR, which has been identified as the alternative to LIBOR. LIBOR will be phased out beginning December 31, 2021. As of September 30, 2021, the Company held the following floating-to-fixed interest rate swaps ($ in thousands): Related Debt Notional Amount Index Swap Fixed Rate Debt effective rate Effective Date Expiration Date Senior unsecured term loan $ 50,000 1-month LIBOR 2.78 % 4.23 % 5/1/2018 5/1/2023 John Hopkins Village 50,123 (a) 1-month LIBOR 2.94 % 4.19 % 8/7/2018 8/7/2025 Senior unsecured term loan 10,500 (a) 1-month LIBOR 3.02 % 4.47 % 10/12/2018 10/12/2023 249 Central Park Retail, South Retail, and Fountain Plaza Retail 33,501 (a) 1-month LIBOR 2.25 % 3.85 % 4/1/2019 8/10/2023 Senior unsecured term loan 50,000 (a) 1-month LIBOR 2.26 % 3.71 % 4/1/2019 10/26/2022 Senior unsecured term loan 25,000 (a) 1-month LIBOR 0.50 % 1.95 % 4/1/2020 4/1/2024 Senior unsecured term loan 25,000 (a) 1-month LIBOR 0.50 % 1.95 % 4/1/2020 4/1/2024 Senior unsecured term loan 25,000 (a) 1-month LIBOR 0.55 % 2.00 % 4/1/2020 4/1/2024 Thames Street Wharf 71,000 (a) 1-month BSBY (b) 1.05 % 2.35 % 9/30/2021 9/30/2026 Total $ 340,124 ________________________________________ (a) Designated as a cash flow hedge. (b) This interest rate swap is subject to BSBY, which has been identified as an alternative to LIBOR. LIBOR will be phased out beginning December 31, 2021. For the interest rate swaps and caps designated as cash flow hedges, realized losses are reclassified out of accumulated other comprehensive loss to interest expense in the Condensed Consolidated Statements of Comprehensive Income due to payments made to the swap counterparty. During the next 12 months, the Company anticipates reclassifying approximately $4.6 million of net hedging losses from accumulated other comprehensive loss into earnings to offset the variability of the hedged items during this period. The Company’s derivatives were comprised of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Notional Fair Value Notional Fair Value Asset Liability Asset Liability Derivatives not designated as accounting hedges Interest rate swaps $ 50,000 $ — $ (2,030) $ 50,000 $ — $ (3,056) Interest rate caps 399,579 217 — 150,000 4 — Total derivatives not designated as accounting hedges 449,579 217 (2,030) 200,000 4 (3,056) Derivatives designated as accounting hedges Interest rate swaps 290,124 — (7,380) 290,231 — (11,797) Interest rate caps 384,375 144 — 384,375 86 — Total derivatives $ 1,124,078 $ 361 $ (9,410) $ 874,606 $ 90 $ (14,853) The changes in the fair value of the Company’s derivatives during the three and nine months ended September 30, 2021 and 2020 were comprised of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Interest rate swaps $ (60) $ 323 $ 2,315 $ (10,907) Interest rate caps (234) (111) (27) (391) Total change in fair value of interest rate derivatives $ (294) $ 212 $ 2,288 $ (11,298) Comprehensive income statement presentation: Change in fair value of derivatives and other $ 166 $ 330 $ 941 $ (1,412) Unrealized cash flow hedge gains (losses) (460) (118) 1,347 (9,886) Total change in fair value of interest rate derivatives $ (294) $ 212 $ 2,288 $ (11,298) |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | Equity Stockholders’ Equity On March 10, 2020, the Company commenced an at-the-market continuous equity offering program (the "ATM Program") through which the Company may, from time to time, issue and sell shares of its common stock and shares of its 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock (the "Series A Preferred Stock") having an aggregate offering price of up to $300.0 million, to or through its sales agents and, with respect to shares of its common stock, may enter into separate forward sales agreements to or through the forward purchaser. During the nine months ended September 30, 2021, the Company issued and sold 2,118,670 shares of common stock at a weighted average price of $13.21 per share under the ATM Program, receiving net proceeds, after offering costs and commissions, of $27.4 million. During the nine months ended September 30, 2021, the Company did not issue any shares of Series A Preferred Stock under the ATM Program. Shares having an aggregate offering price of $234.5 million remained unsold under the ATM Program as of November 2, 2021. Noncontrolling Interests As of September 30, 2021 and December 31, 2020, the Company held a 74.6% and 73.9% common interest in the Operating Partnership, respectively. As of September 30, 2021, the Company also held a preferred interest in the Operating Partnership in the form of preferred units with a liquidation preference of $171.1 million. The Company is the primary beneficiary of the Operating Partnership as it has the power to direct the activities of the Operating Partnership and the rights to absorb 74.6% of the net income of the Operating Partnership. As the primary beneficiary, the Company consolidates the financial position and results of operations of the Operating Partnership. Noncontrolling interests in the Operating Partnership represent units of limited partnership interest in the Operating Partnership not held by the Company. As of September 30, 2021, there were 20,853,485 Class A units of limited partnership interest in the Operating Partnership ("Class A Units") not held by the Company. The Company's financial position and results of operations are the same as those of the Operating Partnership. Additionally, the Operating Partnership owns a majority interest in certain non-wholly-owned operating and development properties. The noncontrolling interest for investment entities of $0.6 million relates to the minority partners' interest in certain joint venture entities as of September 30, 2021. The noncontrolling interest for consolidated real estate entities was $0.5 million as of December 31, 2020. On January 4, 2021, a holder of Class A Units tendered 12,000 Class A Units for redemption by the Operating Partnership, which the Company elected to satisfy by issuing an equal number of shares of common stock. Dividends and Distributions During the nine months ended September 30, 2021, the following dividends/distributions were declared or paid: Equity type Declaration Date Record Date Payment Date Dividends per Share/Unit Aggregate Dividends/Distributions on Stock and Units (in thousands) Common Stock/Class A Units 11/10/2020 12/30/2020 01/07/2021 $ 0.11 $ 8,793 Common Stock/Class A Units 02/09/2021 03/31/2021 04/08/2021 0.15 12,112 Common Stock/Class A Units 05/03/2021 06/30/2021 07/08/2021 0.16 13,095 Common Stock/Class A Units 09/02/2021 09/29/2021 10/07/2021 0.16 13,148 Series A Preferred Stock 11/10/2020 01/04/2021 01/15/2021 0.421875 2,887 Series A Preferred Stock 02/09/2021 04/01/2021 04/15/2021 0.421875 2,887 Series A Preferred Stock 05/03/2021 07/01/2021 07/15/2021 0.421875 2,887 Series A Preferred Stock 09/02/2021 10/01/2021 10/15/2021 0.421875 2,887 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s Amended and Restated 2013 Equity Incentive Plan (the "Equity Plan") permits the grant of restricted stock awards, stock options, stock appreciation rights, performance units, and other equity-based awards up to an aggregate of 1,700,000 shares of common stock. As of September 30, 2021, there were 608,441 shares available for issuance under the Equity Plan. During the nine months ended September 30, 2021, the Company granted an aggregate of 165,685 shares of restricted stock to employees and non-employee directors with a weighted average grant date fair value of $12.87 per share. Of those shares, 43,646 were surrendered by the employees for income tax withholdings. Employee restricted stock awards generally vest over a period of two years: one-third immediately on the grant date and the remaining two-thirds in equal amounts on the first two anniversaries following the grant date, subject to continued service to the Company. Beginning with grants made in 2021, executive officers' restricted shares generally vest over a period of three years: two-fifths immediately on the grant date and the remaining three-fifths in equal amounts on the first three anniversaries following the grant date, subject to continued service to the Company. Non-employee director restricted stock awards vest either immediately upon grant or over a period of one year, subject to continued service to the Company. Unvested restricted stock awards are entitled to receive dividends from their grant date. During the three months ended September 30, 2021 and 2020, the Company recognized $0.5 million and $0.5 million, respectively, of stock-based compensation cost. During the nine months ended September 30, 2021 and 2020, the Company |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 — unobservable inputs Except as disclosed below, the carrying amounts of the Company’s financial instruments approximate their fair values. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps and caps. The Company measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. Financial assets and liabilities whose fair values are not measured at fair value but for which the fair value is disclosed include the Company's notes receivable and indebtedness. The fair value is estimated by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity, credit characteristics, and other terms of the arrangements, which are Level 3 inputs under the fair value hierarchy. In certain cases, the inputs used to estimate the fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. The carrying amounts and fair values of the Company’s financial instruments as of September 30, 2021 and December 31, 2020 were as follows (in thousands): September 30, 2021 December 31, 2020 Carrying Fair Carrying Fair Indebtedness, net (a) $ 1,018,547 $ 1,037,473 $ 963,845 $ 980,714 Notes receivable, net 118,164 118,164 135,432 135,223 Interest rate swap liabilities 9,410 9,410 14,853 14,853 Interest rate swap and cap assets 361 361 90 90 _______________________________________ (a) The values as of September 30, 2021 include the loan reclassified to liabilities related to assets held for sale. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company provides general contracting services to certain related party entities that are included in these condensed consolidated financial statements. Revenue from construction contracts with these entities for the three months ended September 30, 2021 and 2020 was $4.1 million and $15.9 million, respectively. Gross profit from such contracts was $0.8 million and $0.6 million for the three months ended September 30, 2021 and 2020, respectively. Revenue from construction contracts with these entities for the nine months ended September 30, 2021 and 2020 was $22.8 million and $35.4 million, respectively. Gross profit from such contracts was $1.5 million and $1.3 million for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021 and December 31, 2020, there was $3.9 million and $8.6 million, respectively, outstanding from related parties of the Company included in net construction receivables. The general contracting services described above include contracts with an aggregate price of $81.8 million with the developer of a mixed-use project, including an apartment building, retail space, and a parking garage located in Virginia Beach, Virginia. The developer is owned in part by certain executives of the Company, not including the Chief Executive Officer and Chief Financial Officer. These contracts were executed in 2019 and were substantially complete as of |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings The Company is from time to time involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. The Company currently is a party to various legal proceedings, none of which management expects will have a material adverse effect on the Company’s financial position, results of operations, or liquidity. Management accrues a liability for litigation if an unfavorable outcome is determined to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined to be probable and a range of loss can be reasonably estimated, management accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Management does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on the Company’s financial position or results of operations; however, litigation is subject to inherent uncertainties. Under the Company’s leases, tenants are typically obligated to indemnify the Company from and against all liabilities, costs, and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant. Guarantees In connection with the Company's mezzanine lending activities, the Company has made guarantees to pay portions of certain senior loans of third parties associated with the development projects. As of September 30, 2021, the Company had an outstanding payment guarantee for Interlock Commercial for $37.5 million. The Company has recorded a $1.6 million liability and corresponding addition to notes receivable relating to this guarantee. Commitments The Company has a bonding line of credit for its general contracting construction business and is contingently liable under performance and payment bonds, bonds for cancellation of mechanics liens and defect bonds. Such bonds collectively totaled $2.1 million and $2.4 million as of September 30, 2021 and December 31, 2020, respectively. In addition, as of September 30, 2021, the Company has outstanding a letter of credit for $9.5 million to secure certain performances of the Company's subsidiary construction company under a related party project. On January 7, 2021, the Operating Partnership entered into a $15.0 million standby letter of credit using the available capacity under the credit facility to guarantee the funding of its investment in the Harbor Point Parcel 3 joint venture, which is the developer of T. Rowe Price's new global headquarters. This letter of credit is available for draw down on the revolving credit facility in the event the Company does not meet its equity requirement. Unfunded Loan Commitments The Company has certain commitments related to its notes receivable investments that it may be required to fund in the future. The Company is generally obligated to fund these commitments at the request of the borrower or upon the occurrence of events outside of the Company's direct control. As of September 30, 2021, the Company had two notes receivable with commitments totaling approximately $6.6 million. If commitments are funded in the future, interest will be charged at rates consistent with the existing investments. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through the date on which this Form 10-Q was filed, the date on which these financial statements were issued, and identified the items below for discussion. Real Estate In October 2021, the Company sold Courthouse 7-Eleven for a contract price of $3.1 million. As of September 30, 2021, the property did not meet the criteria to be classified as held for sale. Indebtedness In October 2021, the Company borrowed $20.0 million under the revolving credit facility. In October 2021, the Company borrowed $3.7 million on its construction loans to fund development activities. Equity On October 1, 2021, due to the holders of Class A Units tendering an aggregate of 220,000 Class A Units for redemption by the Operating Partnership, the Company elected to satisfy the redemption requests with an aggregate cash payment of $2.9 million. In October 2021, the Company sold an aggregate of 181,562 shares of common stock at a weighted average price of $13.56 per share under the ATM Program, receiving net proceeds, after offering costs and commissions, of $2.4 million. On October 25, 2021, the Company announced that its board of directors declared a cash dividend of $0.17 per common share for the fourth quarter of 2021. This represents a 6.25% increase over the prior quarter's cash dividend. The fourth quarter dividend will be payable in cash on January 6, 2022 to stockholders of record on December 29, 2021. On October 25, 2021, the Company announced that its board of directors declared a cash dividend of $0.421875 per share of Series A Preferred Stock for the fourth quarter of 2021. The dividend will be payable in cash on January 14, 2022 to stockholders of record on January 3, 2022. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The condensed consolidated financial statements include the financial position and results of operations of the Company and its consolidated subsidiaries, including the Operating Partnership, its wholly-owned subsidiaries, and any interests in variable interest entities ("VIEs") where the Company has been determined to be the primary beneficiary. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition, and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year, particularly in light of the novel coronavirus ("COVID-19") pandemic and its effects on the domestic and global economies during interim periods in 2020 and 2021. The pandemic has led to continuous changes in operational restrictions imposed by governments and other authorities around the world, including federal, state, and local authorities in the United States instituting restrictions on freedom of movement and business operations such as travel bans, border closings, business closures, quarantines, and shelter-in-place orders, causing many of the Company’s tenants, particularly in the Company’s retail portfolio, to suspend or limit operations for certain periods of time. While operations in many areas have been allowed to fully or partially re-open, no assurance can be given that such closures or restrictions will not be reinstituted in the future. The extent of the COVID-19 pandemic’s effect on our business activity will depend on future developments, including the duration and intensity of the pandemic, the timing and effectiveness of COVID-19 vaccines (including against COVID-19 variant strains), the duration of, or the reinstatement of, government measures to mitigate the pandemic or address its effects, and the timing and effectiveness of vaccine administration, all of which are uncertain and difficult to predict. Due to the uncertainty surrounding the COVID-19 pandemic, we are not able at this time to estimate the full effect of these factors on our business. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best |
Reclassification | Reclassifications Certain items have been reclassified from their prior year classifications to conform to the current year presentation. The amounts previously classified as Interest expense on indebtedness and Interest expense on finance leases for the three and nine months ended September 30, 2020 in the Condensed Consolidated Statement of Comprehensive Income are now included in a single line item as Interest expense. These reclassifications had no effect on net income or stockholders' equity as previously reported. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Standards Not Yet Adopted: Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04 Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848), which became effective on March 12, 2020 and generally can be applied through December 31, 2022. 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. The Company is currently evaluating the effect that adopting this standard may have on its Consolidated Financial Statements. Earnings Per Share In August 2020, the FASB issued ASU 2020-06 an update to ASC Topic 470 and ASC Topic 815, which will be effective beginning January 1, 2022. ASU 2020-06 simplifies the accounting for convertible instruments and removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception. This ASU also simplifies diluted earnings per share calculation in certain areas and provides updated disclosure requirements. The Company is currently evaluating the impact of ASU 2020-06 on its consolidated financial statements. |
Segments | Segments Net operating income (segment revenues minus segment expenses) is the measure used by the Company’s chief operating decision-maker to assess segment performance. Net operating income is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, net operating income should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate net operating income in the same manner. The Company considers net operating income to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate and construction businesses. |
Construction Contracts | Construction Contracts Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of September 30, 2021 during the next twelve months. Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized. |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and other liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of interest rate derivatives in the condensed consolidated statements of comprehensive income. For derivatives that qualify as cash flow hedges, the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 — unobservable inputs Except as disclosed below, the carrying amounts of the Company’s financial instruments approximate their fair values. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps and caps. The Company measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. Financial assets and liabilities whose fair values are not measured at fair value but for which the fair value is disclosed include the Company's notes receivable and indebtedness. The fair value is estimated by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity, credit characteristics, and other terms of the arrangements, which are Level 3 inputs under the fair value hierarchy. In certain cases, the inputs used to estimate the fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. |
Legal Proceedings | Legal Proceedings The Company is from time to time involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. The Company currently is a party to various legal proceedings, none of which management expects will have a material adverse effect on the Company’s financial position, results of operations, or liquidity. Management accrues a liability for litigation if an unfavorable outcome is determined to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined to be probable and a range of loss can be reasonably estimated, management accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Management does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on the Company’s financial position or results of operations; however, litigation is subject to inherent uncertainties. Under the Company’s leases, tenants are typically obligated to indemnify the Company from and against all liabilities, costs, and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Net operating income of reportable segments | Net operating income of the Company’s reportable segments for the three and nine months ended September 30, 2021 and 2020 was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Office real estate Rental revenues $ 11,933 $ 11,456 $ 35,324 $ 32,142 Rental expenses 3,409 3,042 9,222 7,879 Real estate taxes 1,547 1,375 4,318 3,749 Segment net operating income 6,977 7,039 21,784 20,514 Retail real estate Rental revenues 20,223 15,669 57,682 54,794 Rental expenses 3,270 2,618 9,119 8,096 Real estate taxes 2,100 1,808 6,307 5,981 Segment net operating income 14,853 11,243 42,256 40,717 Multifamily residential real estate Rental revenues 17,404 12,511 49,673 34,904 Rental expenses 6,038 4,563 16,500 11,932 Real estate taxes 1,896 1,577 5,689 3,596 Segment net operating income 9,470 6,371 27,484 19,376 General contracting and real estate services Segment revenues 17,502 58,617 71,473 163,283 Segment expenses 15,944 56,509 68,350 157,401 Segment gross profit 1,558 2,108 3,123 5,882 Net operating income $ 32,858 $ 26,761 $ 94,647 $ 86,489 |
Reconciliation of net operating income to net income | The following table reconciles net operating income to net income, the most directly comparable GAAP measure, for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net operating income $ 32,858 $ 26,761 $ 94,647 $ 86,489 Depreciation and amortization (16,886) (14,176) (52,237) (42,232) Amortization of right-of-use assets - finance leases (278) (147) (745) (440) General and administrative expenses (3,449) (2,601) (10,957) (9,382) Acquisition, development and other pursuit costs (8) (26) (111) (555) Impairment charges — (47) (3,122) (205) Gain (loss) on real estate dispositions, net (113) 3,612 3,604 6,388 Interest income 3,766 4,417 14,628 16,055 Interest expense (8,827) (7,523) (25,220) (22,938) Change in fair value of derivatives and other 131 318 838 (1,424) Unrealized credit loss release (provision) 617 33 284 (227) Other income (expense), net (105) 177 81 521 Income tax benefit 42 28 522 220 Net income $ 7,748 $ 10,826 $ 22,212 $ 32,270 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of rental revenue | Rental revenue for the three and nine months ended September 30, 2021 and 2020 comprised the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Base rent and tenant charges $ 48,391 $ 37,532 $ 137,675 $ 117,812 Accrued straight-line rental adjustment 883 1,925 4,210 3,435 Lease incentive amortization (167) (164) (485) (497) Above/below market lease amortization 453 343 1,279 1,090 Total rental revenue $ 49,560 $ 39,636 $ 142,679 $ 121,840 |
Real Estate Investment (Tables)
Real Estate Investment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Summary of the purchase price allocation | The following table summarizes the purchase price allocation (including acquisition costs) based on relative fair value of the assets acquired and intangible liabilities assumed for the three operating properties purchased during the nine months ended September 30, 2021 (in thousands): Delray Beach Plaza Overlook Village Greenbrier Square Land $ — $ 6,328 $ 8,549 Site improvements 4,607 1,727 1,974 Building and improvements 22,544 18,375 19,196 In-place leases 7,209 3,997 6,659 Above-market leases — 81 1,753 Below-market leases (3,121) (2,146) (1,365) Finance lease liabilities (27,940) — — Finance lease right-of-use assets 24,466 — — Fair value adjustment on acquired debt — — 11 Net assets acquired $ 27,765 $ 28,362 $ 36,777 |
Notes Receivable and Current _2
Notes Receivable and Current Expected Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Summary of Mezzanine Loans | The Company had the following notes receivable outstanding as of September 30, 2021 and December 31, 2020 ($ in thousands): Outstanding loan amount Interest compounding Development Project September 30, December 31, Maximum loan commitment Interest rate Delray Beach Plaza $ — $ 14,289 $ 17,000 15.0 % (a) Annually Interlock Commercial 92,254 85,318 107,000 15.0 % (b) None Nexton Multifamily 18,549 — 22,315 11.0 % Annually Solis Apartments at Interlock — 28,969 41,100 13.0 % Annually Total mezzanine 110,803 128,576 $ 187,415 Other notes receivable 7,124 6,809 Notes receivable guarantee premium 1,631 2,631 Allowance for credit losses (1,394) (c) (2,584) Total notes receivable $ 118,164 $ 135,432 ________________________________________ (a) Loan was placed on nonaccrual status effective April 1, 2020. (b) $3.0 million of this loan is subject to an interest rate of 18%. (c) The amount excludes $0.1 million of CECL allowance that relates to the unfunded commitments, which was recorded as a liability under Other Liabilities in our consolidated balance sheet. |
Summary of Interest Income | The Company recognized interest income for the three and nine months ended September 30, 2021 and 2020 as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Development Project 2021 2020 2021 2020 The Residences at Annapolis Junction $ — $ — (a) $ — $ 2,468 (a)(b) Delray Beach Plaza — — (a) — (a) 489 (a) Nexton Multifamily 397 — 658 — Nexton Square — 380 — 1,177 Interlock Commercial 3,260 (b) 3,189 (b) 9,644 (b) 9,364 (b) Solis Apartments at Interlock — 847 4,005 (c) 2,522 Total mezzanine 3,657 4,416 14,307 16,020 Other interest income 109 1 321 35 Total interest income $ 3,766 $ 4,417 $ 14,628 $ 16,055 ________________________________________ (a) Loan was placed on nonaccrual status effective April 1, 2020. (b) Includes recognition of interest income related to an exit fee that is due upon repayment of the loan. (c) Includes prepayment premium of $2.4 million from early payoff of the loan. |
Allowance for Credit Losses on Financing Receivables | Changes in the allowance for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Beginning balance $ 2,129 $ 3,085 $ 2,584 $ — Cumulative effect of accounting change — — — 2,825 Unrealized credit loss provision (release) (617) (33) (284) 227 Extinguishment due to acquisition — — (788) — Ending balance (a) $ 1,512 $ 3,052 $ 1,512 $ 3,052 ________________________________________ (a) The amount as of September 30, 2021 includes $0.1 million of allowance related to the unfunded commitments, which was recorded as Other liabilities on the Consolidated Balance Sheet. |
Construction Contracts (Tables)
Construction Contracts (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Contractors [Abstract] | |
Summary of balances and changes of construction contracts | The following table summarizes the changes to the balances in the Company’s construction contract costs and estimated earnings in excess of billings account and the billings in excess of construction contract costs and estimated earnings account for the nine months ended September 30, 2021 and 2020 (in thousands): Nine Months Ended Nine Months Ended Construction contract costs and estimated earnings in excess of billings Billings in excess of construction contract costs and estimated earnings Construction contract costs and estimated earnings in excess of billings Billings in excess of construction contract costs and estimated earnings Beginning balance $ 138 $ 6,088 $ 249 $ 5,306 Revenue recognized that was included in the balance at the beginning of the period — (6,088) — (5,306) Increases due to new billings, excluding amounts recognized as revenue during the period — 3,791 — 7,237 Transferred to receivables (665) — (468) — Construction contract costs and estimated earnings not billed during the period 370 — 215 — Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion 527 (1,117) 219 (152) Ending balance $ 370 $ 2,674 $ 215 $ 7,085 The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of September 30, 2021 and 2020 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Beginning backlog $ 70,219 $ 193,742 $ 71,258 $ 242,622 New contracts/change orders 53,590 (12,461) 106,992 43,469 Work performed (16,944) (58,590) (71,385) (163,400) Ending backlog $ 106,865 $ 122,691 $ 106,865 $ 122,691 |
Net position of uncompleted construction contracts | The Company’s net position on uncompleted construction contracts comprised the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Costs incurred on uncompleted construction contracts $ 360,247 $ 461,725 Estimated earnings 14,427 13,205 Billings (376,978) (480,880) Net position $ (2,304) $ (5,950) Construction contract costs and estimated earnings in excess of billings $ 370 $ 138 Billings in excess of construction contract costs and estimated earnings (2,674) (6,088) Net position $ (2,304) $ (5,950) The above table reflects the net effect of projects closed as of September 30, 2021 and December 31, 2020, respectively. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of LIBOR interest rate caps and floating to fixed interest rate swaps | As of September 30, 2021, the Company had the following LIBOR and Secured Overnight Financing Rate ("SOFR") interest rate caps ($ in thousands): Effective Date Maturity Date Notional Amount Strike Rate Premium Paid 5/15/2019 6/1/2022 $ 100,000 2.50% (LIBOR) $ 288 1/10/2020 2/1/2022 50,000 (a) 1.75% (LIBOR) 87 1/28/2020 2/1/2022 50,000 (a) 1.75% (LIBOR) 62 3/2/2020 3/1/2022 100,000 (a) 1.50% (LIBOR) 111 7/1/2020 7/1/2023 100,000 (a) 0.50% (LIBOR) 232 11/1/2020 11/1/2023 84,375 (a) 1.84% (SOFR) (b) 91 2/2/2021 2/1/2023 100,000 0.50% (LIBOR) 45 3/4/2021 4/1/2023 14,479 2.50% (LIBOR) 4 5/5/2021 5/1/2023 50,000 0.50% (LIBOR) 75 5/5/2021 5/1/2023 35,100 0.50% (LIBOR) 55 6/16/2021 7/1/2023 100,000 0.50% (LIBOR) 120 Total $ 783,954 $ 1,170 ________________________________________ (a) Designated as a cash flow hedge. (b) This interest rate cap is subject to SOFR, which has been identified as the alternative to LIBOR. LIBOR will be phased out beginning December 31, 2021. As of September 30, 2021, the Company held the following floating-to-fixed interest rate swaps ($ in thousands): Related Debt Notional Amount Index Swap Fixed Rate Debt effective rate Effective Date Expiration Date Senior unsecured term loan $ 50,000 1-month LIBOR 2.78 % 4.23 % 5/1/2018 5/1/2023 John Hopkins Village 50,123 (a) 1-month LIBOR 2.94 % 4.19 % 8/7/2018 8/7/2025 Senior unsecured term loan 10,500 (a) 1-month LIBOR 3.02 % 4.47 % 10/12/2018 10/12/2023 249 Central Park Retail, South Retail, and Fountain Plaza Retail 33,501 (a) 1-month LIBOR 2.25 % 3.85 % 4/1/2019 8/10/2023 Senior unsecured term loan 50,000 (a) 1-month LIBOR 2.26 % 3.71 % 4/1/2019 10/26/2022 Senior unsecured term loan 25,000 (a) 1-month LIBOR 0.50 % 1.95 % 4/1/2020 4/1/2024 Senior unsecured term loan 25,000 (a) 1-month LIBOR 0.50 % 1.95 % 4/1/2020 4/1/2024 Senior unsecured term loan 25,000 (a) 1-month LIBOR 0.55 % 2.00 % 4/1/2020 4/1/2024 Thames Street Wharf 71,000 (a) 1-month BSBY (b) 1.05 % 2.35 % 9/30/2021 9/30/2026 Total $ 340,124 ________________________________________ (a) Designated as a cash flow hedge. (b) This interest rate swap is subject to BSBY, which has been identified as an alternative to LIBOR. LIBOR will be phased out beginning December 31, 2021. |
Schedule of derivatives | The Company’s derivatives were comprised of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Notional Fair Value Notional Fair Value Asset Liability Asset Liability Derivatives not designated as accounting hedges Interest rate swaps $ 50,000 $ — $ (2,030) $ 50,000 $ — $ (3,056) Interest rate caps 399,579 217 — 150,000 4 — Total derivatives not designated as accounting hedges 449,579 217 (2,030) 200,000 4 (3,056) Derivatives designated as accounting hedges Interest rate swaps 290,124 — (7,380) 290,231 — (11,797) Interest rate caps 384,375 144 — 384,375 86 — Total derivatives $ 1,124,078 $ 361 $ (9,410) $ 874,606 $ 90 $ (14,853) |
Schedule of changes in fair value of derivatives | The changes in the fair value of the Company’s derivatives during the three and nine months ended September 30, 2021 and 2020 were comprised of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Interest rate swaps $ (60) $ 323 $ 2,315 $ (10,907) Interest rate caps (234) (111) (27) (391) Total change in fair value of interest rate derivatives $ (294) $ 212 $ 2,288 $ (11,298) Comprehensive income statement presentation: Change in fair value of derivatives and other $ 166 $ 330 $ 941 $ (1,412) Unrealized cash flow hedge gains (losses) (460) (118) 1,347 (9,886) Total change in fair value of interest rate derivatives $ (294) $ 212 $ 2,288 $ (11,298) |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Dividends and Distributions | During the nine months ended September 30, 2021, the following dividends/distributions were declared or paid: Equity type Declaration Date Record Date Payment Date Dividends per Share/Unit Aggregate Dividends/Distributions on Stock and Units (in thousands) Common Stock/Class A Units 11/10/2020 12/30/2020 01/07/2021 $ 0.11 $ 8,793 Common Stock/Class A Units 02/09/2021 03/31/2021 04/08/2021 0.15 12,112 Common Stock/Class A Units 05/03/2021 06/30/2021 07/08/2021 0.16 13,095 Common Stock/Class A Units 09/02/2021 09/29/2021 10/07/2021 0.16 13,148 Series A Preferred Stock 11/10/2020 01/04/2021 01/15/2021 0.421875 2,887 Series A Preferred Stock 02/09/2021 04/01/2021 04/15/2021 0.421875 2,887 Series A Preferred Stock 05/03/2021 07/01/2021 07/15/2021 0.421875 2,887 Series A Preferred Stock 09/02/2021 10/01/2021 10/15/2021 0.421875 2,887 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Carrying amounts and fair values of financial instruments measured based on level two inputs | The carrying amounts and fair values of the Company’s financial instruments as of September 30, 2021 and December 31, 2020 were as follows (in thousands): September 30, 2021 December 31, 2020 Carrying Fair Carrying Fair Indebtedness, net (a) $ 1,018,547 $ 1,037,473 $ 963,845 $ 980,714 Notes receivable, net 118,164 118,164 135,432 135,223 Interest rate swap liabilities 9,410 9,410 14,853 14,853 Interest rate swap and cap assets 361 361 90 90 _______________________________________ (a) The values as of September 30, 2021 include the loan reclassified to liabilities related to assets held for sale. |
Business of Organization - Addi
Business of Organization - Additional Information (Details) - property | Sep. 30, 2021 | Dec. 31, 2020 |
Business And Organization [Line Items] | ||
Percentage of operating partnership held | 74.60% | 73.90% |
Operating Property | ||
Business And Organization [Line Items] | ||
Number of real estate properties | 57 | |
Development Property | ||
Business And Organization [Line Items] | ||
Number of real estate properties | 3 | |
General Partner | ||
Business And Organization [Line Items] | ||
Percentage of operating partnership held | 0.10% |
Segments - Net Income of Report
Segments - Net Income of Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information | ||||
Rental revenues | $ 49,560 | $ 39,636 | $ 142,679 | $ 121,840 |
Rental expenses | 12,717 | 10,223 | 34,841 | 27,907 |
Real estate taxes | 5,543 | 4,760 | 16,314 | 13,326 |
Segment revenues | 17,502 | 58,617 | 71,473 | 163,283 |
Gross profit | 32,858 | 26,761 | 94,647 | 86,489 |
General contracting and real estate services | ||||
Segment Reporting Information | ||||
Segment revenues | 17,502 | 58,617 | 71,473 | 163,283 |
Segment expenses | 15,944 | 56,509 | 68,350 | 157,401 |
Gross profit | 1,558 | 2,108 | 3,123 | 5,882 |
Office real estate | ||||
Segment Reporting Information | ||||
Rental revenues | 11,933 | 11,456 | 35,324 | 32,142 |
Rental expenses | 3,409 | 3,042 | 9,222 | 7,879 |
Real estate taxes | 1,547 | 1,375 | 4,318 | 3,749 |
Gross profit | 6,977 | 7,039 | 21,784 | 20,514 |
Retail real estate | ||||
Segment Reporting Information | ||||
Rental revenues | 20,223 | 15,669 | 57,682 | 54,794 |
Rental expenses | 3,270 | 2,618 | 9,119 | 8,096 |
Real estate taxes | 2,100 | 1,808 | 6,307 | 5,981 |
Gross profit | 14,853 | 11,243 | 42,256 | 40,717 |
Multifamily residential real estate | ||||
Segment Reporting Information | ||||
Rental revenues | 17,404 | 12,511 | 49,673 | 34,904 |
Rental expenses | 6,038 | 4,563 | 16,500 | 11,932 |
Real estate taxes | 1,896 | 1,577 | 5,689 | 3,596 |
Gross profit | $ 9,470 | $ 6,371 | $ 27,484 | $ 19,376 |
Segments - Additional Informati
Segments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information | ||||
General contracting and real estate services revenues | $ 17,502 | $ 58,617 | $ 71,473 | $ 163,283 |
General contracting and real estate services | ||||
Segment Reporting Information | ||||
General contracting and real estate services revenues | 17,502 | 58,617 | 71,473 | 163,283 |
General contracting and real estate services expenses | 15,944 | 56,509 | 68,350 | 157,401 |
General contracting and real estate services | Intercompany Eliminations | ||||
Segment Reporting Information | ||||
General contracting and real estate services revenues | 8,600 | 3,200 | 16,000 | 24,700 |
General contracting and real estate services expenses | $ 8,600 | $ 3,200 | $ 16,000 | $ 24,500 |
Segments - Reconciliation of Ne
Segments - Reconciliation of Net Operating Income to Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Gross profit | $ 32,858 | $ 26,761 | $ 94,647 | $ 86,489 | ||||
Amortization of finance leases | (278) | (147) | (745) | (440) | ||||
General and administrative expenses | (3,449) | (2,601) | (10,957) | (9,382) | ||||
Acquisition, development and other pursuit costs | (8) | (26) | (111) | (555) | ||||
Impairment charges | 0 | (47) | (3,122) | (205) | ||||
Gain (loss) on real estate dispositions, net | (113) | 3,612 | 3,604 | 6,388 | ||||
Interest income | 3,766 | 4,417 | 14,628 | 16,055 | ||||
Interest expense | (8,827) | (7,523) | (25,220) | (22,938) | ||||
Change in fair value of derivatives and other | 131 | 318 | 838 | (1,424) | ||||
Unrealized credit loss release (provision) | 617 | 33 | 284 | (227) | ||||
Other income (expense), net | (105) | 177 | 81 | 521 | ||||
Income tax benefit | 42 | 28 | 522 | 220 | ||||
Net income | 7,748 | $ 8,455 | $ 6,009 | 10,826 | $ 12,309 | $ 9,135 | 22,212 | 32,270 |
Operating Segments | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Gross profit | 32,858 | 26,761 | 94,647 | 86,489 | ||||
Segment Reconciling Items | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Depreciation and amortization | (16,886) | (14,176) | (52,237) | (42,232) | ||||
Amortization of finance leases | (278) | (147) | (745) | (440) | ||||
General and administrative expenses | (3,449) | (2,601) | (10,957) | (9,382) | ||||
Acquisition, development and other pursuit costs | (8) | (26) | (111) | (555) | ||||
Impairment charges | 0 | (47) | (3,122) | (205) | ||||
Gain (loss) on real estate dispositions, net | (113) | 3,612 | 3,604 | 6,388 | ||||
Interest income | 3,766 | 4,417 | 14,628 | 16,055 | ||||
Interest expense | (8,827) | (7,523) | (25,220) | (22,938) | ||||
Change in fair value of derivatives and other | 131 | 318 | 838 | (1,424) | ||||
Unrealized credit loss release (provision) | 617 | 33 | 284 | (227) | ||||
Other income (expense), net | (105) | 177 | 81 | 521 | ||||
Income tax benefit | $ 42 | $ 28 | $ 522 | $ 220 |
Leases - Additional Information
Leases - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021leaseextensionproperty | |
Lessee, Lease, Description [Line Items] | |
Number of ground leases | 9 |
Number of properties subject to ground leases | property | 8 |
Number of operating leases | 6 |
Number of finance leases | 3 |
Number of options to extend, more than | extension | 1 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 15 years |
Leases - Lessor, Rental Income
Leases - Lessor, Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Base rent and tenant charges | $ 48,391 | $ 37,532 | $ 137,675 | $ 117,812 |
Accrued straight-line rental adjustment | 883 | 1,925 | 4,210 | 3,435 |
Lease incentive amortization | (167) | (164) | (485) | (497) |
Above/below market lease amortization | 453 | 343 | 1,279 | 1,090 |
Total rental revenue | $ 49,560 | $ 39,636 | $ 142,679 | $ 121,840 |
Real Estate Investment - Proper
Real Estate Investment - Property Acquisition (Details) $ in Thousands | Aug. 24, 2021USD ($) | Jul. 28, 2021USD ($) | Jun. 28, 2021USD ($) | Feb. 26, 2021USD ($) | Sep. 30, 2021USD ($)property | Sep. 30, 2020USD ($) |
Real Estate Properties [Line Items] | ||||||
Repayments of notes receivable | $ 42,301 | $ 16,220 | ||||
Acquisitions of real estate investments, net of cash received | $ 73,569 | $ 34,785 | ||||
Number of operating properties acquired | property | 3 | |||||
Delray Beach Plaza | ||||||
Real Estate Properties [Line Items] | ||||||
Consideration transferred | $ 27,600 | |||||
Acquisition related costs | 200 | |||||
Delray Beach Plaza | Mezzanine Loan | ||||||
Real Estate Properties [Line Items] | ||||||
Repayments of notes receivable | $ 14,300 | |||||
Hoffler Place | ||||||
Real Estate Properties [Line Items] | ||||||
Percentage of ownership interest | 0.075 | |||||
Acquisitions of real estate investments, net of cash received | $ 300 | |||||
Summit Place | ||||||
Real Estate Properties [Line Items] | ||||||
Percentage of ownership interest | 0.10 | |||||
Cash payment | $ 500 | |||||
Overlook Village | Overlook Village | ||||||
Real Estate Properties [Line Items] | ||||||
Acquisition related costs | $ 100 | |||||
Consideration transferred | $ 28,300 | |||||
Greenbrier Square | ||||||
Real Estate Properties [Line Items] | ||||||
Consideration transferred | $ 36,500 | |||||
Acquisition related costs | 300 | |||||
Loans payable | $ 20,000 |
Real Estate Investment - Summar
Real Estate Investment - Summary of the Purchase Price Allocation (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Delray Beach Plaza | |
Business Acquisition [Line Items] | |
Land | $ 0 |
Above-market leases | 0 |
Below-market leases | (3,121) |
Finance lease liabilities | (27,940) |
Finance lease right-of-use assets | 24,466 |
Fair value adjustment on acquired debt | 0 |
Net assets acquired | 27,765 |
Overlook Village | |
Business Acquisition [Line Items] | |
Land | 6,328 |
Above-market leases | 81 |
Below-market leases | (2,146) |
Finance lease liabilities | 0 |
Finance lease right-of-use assets | 0 |
Fair value adjustment on acquired debt | 0 |
Net assets acquired | 28,362 |
Greenbrier Square | |
Business Acquisition [Line Items] | |
Land | 8,549 |
Above-market leases | 1,753 |
Below-market leases | (1,365) |
Finance lease liabilities | 0 |
Finance lease right-of-use assets | 0 |
Fair value adjustment on acquired debt | 11 |
Net assets acquired | 36,777 |
Land Improvements | Delray Beach Plaza | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 4,607 |
Land Improvements | Overlook Village | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 1,727 |
Land Improvements | Greenbrier Square | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 1,974 |
Building and Building Improvements | Delray Beach Plaza | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 22,544 |
Building and Building Improvements | Overlook Village | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 18,375 |
Building and Building Improvements | Greenbrier Square | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 19,196 |
In-place lease assets | Delray Beach Plaza | |
Business Acquisition [Line Items] | |
Finite-lived intangibles | 7,209 |
In-place lease assets | Overlook Village | |
Business Acquisition [Line Items] | |
Finite-lived intangibles | 3,997 |
In-place lease assets | Greenbrier Square | |
Business Acquisition [Line Items] | |
Finite-lived intangibles | $ 6,659 |
Real Estate Investment - Prop_2
Real Estate Investment - Property Disposition (Details) - USD ($) $ in Thousands | Mar. 18, 2021 | Mar. 16, 2021 | Jan. 14, 2021 | Jan. 04, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Real Estate Properties [Line Items] | ||||||
Proceeds from sale of real estate held-for-investment | $ 12,583 | $ 96,458 | ||||
Repayments of loan | $ 25,734 | $ 181,182 | ||||
Hanbury Village | Disposed of by Sale | ||||||
Real Estate Properties [Line Items] | ||||||
Proceeds from sale of real estate held-for-investment | $ 2,900 | |||||
Gain (loss) on disposition of property | $ 2,400 | |||||
Nexton Square | Disposed of by Sale | ||||||
Real Estate Properties [Line Items] | ||||||
Proceeds from sale of real estate held-for-investment | $ 900 | |||||
Repayments of loan | $ 800 | |||||
Oakland Marketplace | Disposed of by Sale | ||||||
Real Estate Properties [Line Items] | ||||||
Proceeds from sale of real estate held-for-investment | $ 5,500 | |||||
Gain (loss) on disposition of property | $ 1,100 | |||||
Courthouse 7-Eleven | Disposed of by Sale | ||||||
Real Estate Properties [Line Items] | ||||||
Proceeds from sale of real estate held-for-investment | $ 300 | |||||
Gain (loss) on disposition of property | $ 200 |
Real Estate Investment - Impair
Real Estate Investment - Impairment of Real Estate (Details) - Socastee Commons Shopping Center - Socastee Commons - USD ($) $ in Millions | Aug. 25, 2021 | Mar. 31, 2021 |
Real Estate Properties [Line Items] | ||
Impairment of Real Estate | $ 3 | |
Held-for-sale | ||
Real Estate Properties [Line Items] | ||
Gain (loss) on disposition of property | $ 0.1 | |
Disposal group, including discontinued operation, consideration | $ 3.8 |
Real Estate Investment - Equity
Real Estate Investment - Equity Method Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Real Estate [Line Items] | |||
Investment in equity method investment during period | $ 8,096 | $ 0 | |
Equity method investment | $ 9,174 | $ 1,078 | |
Harbor Point Parcel 3 | Beatty Development Group | |||
Real Estate [Line Items] | |||
Interests in equity method investments | 50.00% | ||
Investment in equity method investment during period | $ 8,100 | ||
Maximum commitment | 30,000 | ||
Equity method investment | $ 9,200 | $ 1,100 |
Notes Receivable and Current _3
Notes Receivable and Current Expected Credit Losses (Summary of Mezzanine Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Apr. 01, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Notes receivable guarantee premium | $ 1,631 | $ 2,631 | |||||
Allowance for credit losses | (1,394) | $ (2,129) | (2,584) | $ (3,085) | $ 0 | ||
Total notes receivable | 118,164 | 135,432 | |||||
Interlock Commercial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum loan commitment | 107,000 | ||||||
Additional funds available | 7,500 | ||||||
Nexton Multifamily | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maximum loan commitment | $ 22,300 | ||||||
Interest rate | 11.00% | ||||||
Mezzanine Loan | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Notes receivable | 110,803 | 128,576 | |||||
Maximum loan commitment | 187,415 | ||||||
Mezzanine Loan | Delray Beach Plaza | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Notes receivable | 0 | 14,289 | |||||
Maximum loan commitment | $ 17,000 | ||||||
Interest rate | 15.00% | ||||||
Mezzanine Loan | Interlock Commercial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Notes receivable | $ 92,254 | 85,318 | |||||
Maximum loan commitment | $ 107,000 | ||||||
Interest rate | 15.00% | ||||||
Additional funds available | $ 3,000 | ||||||
Interest rate | 18.00% | ||||||
Mezzanine Loan | Nexton Multifamily | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Notes receivable | $ 18,549 | 0 | |||||
Maximum loan commitment | $ 22,315 | ||||||
Interest rate | 11.00% | ||||||
Mezzanine Loan | Solis Apartments at Interlock | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Notes receivable | $ 0 | 28,969 | |||||
Maximum loan commitment | $ 41,100 | ||||||
Interest rate | 13.00% | ||||||
Other Notes Receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Notes receivable | $ 7,124 | $ 6,809 | |||||
Unfunded Loan Commitment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | (1,512) | $ (3,052) | |||||
Unfunded Loan Commitment | Other Liabilities | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for credit losses | $ (100) |
Notes Receivable and Current _4
Notes Receivable and Current Expected Credit Losses (Schedule of Interest on the Mezzanine Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | $ 3,766 | $ 4,417 | $ 14,628 | $ 16,055 |
Mezzanine Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 3,657 | 4,416 | 14,307 | 16,020 |
Other Notes Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 109 | 1 | 321 | 35 |
The Residences at Annapolis Junction | Mezzanine Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 0 | 0 | 0 | 2,468 |
Delray Beach Plaza | Mezzanine Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 0 | 0 | 0 | 489 |
Nexton Multifamily | Mezzanine Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 397 | 0 | 658 | 0 |
Nexton Square | Mezzanine Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 0 | 380 | 0 | 1,177 |
Interlock Commercial | Mezzanine Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 3,260 | 3,189 | 9,644 | 9,364 |
Solis Apartments at Interlock | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Prepayment premium received | 2,400 | |||
Solis Apartments at Interlock | Mezzanine Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | $ 0 | $ 847 | $ 4,005 | $ 2,522 |
Notes Receivable and Current _5
Notes Receivable and Current Expected Credit Losses (Additional Information) (Details) | Jun. 07, 2021USD ($) | Feb. 26, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Apr. 01, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Repayments of notes receivable | $ 42,301,000 | $ 16,220,000 | ||||||||
Notes receivable, net | $ 118,164,000 | 118,164,000 | $ 135,432,000 | |||||||
Allowance for credit losses | 1,394,000 | 1,394,000 | $ 2,129,000 | 2,584,000 | $ 3,085,000 | $ 0 | ||||
Notes receivable, nonaccrual status | 0 | 0 | 13,600,000 | |||||||
Delray Beach Plaza | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Consideration transferred | $ 27,600,000 | |||||||||
Acquisition related costs | 200,000 | |||||||||
Note receivable, face amount | 12,300,000 | |||||||||
Notes receivable, accrued interest | 2,000,000 | |||||||||
Interlock Commercial | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Repayments of notes receivable | 5,000,000 | 11,000,000 | ||||||||
Notes receivable, principal | 3,800,000 | 6,800,000 | ||||||||
Notes receivable, accrued interest | 1,200,000 | 4,200,000 | ||||||||
Additional funds available | 7,500,000 | 7,500,000 | ||||||||
Maximum loan commitment | 107,000,000 | 107,000,000 | ||||||||
Nexton Multifamily | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Maximum loan commitment | $ 22,300,000 | |||||||||
Interest rate | 11.00% | |||||||||
Solis Apartments at Interlock | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Repayments of notes receivable | $ 33,000,000 | |||||||||
Note receivable, face amount | 23,200,000 | |||||||||
Notes receivable, accrued interest | 7,400,000 | |||||||||
Prepayment premium received | $ 2,400,000 | |||||||||
Mezzanine Loan | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Maximum loan commitment | 187,415,000 | 187,415,000 | ||||||||
Notes receivable | 110,803,000 | $ 110,803,000 | 128,576,000 | |||||||
Number of financial instruments | loan | 2 | |||||||||
Mezzanine Loan | Delray Beach Plaza | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Repayments of notes receivable | $ 14,300,000 | |||||||||
Maximum loan commitment | $ 17,000,000 | $ 17,000,000 | ||||||||
Interest rate | 15.00% | 15.00% | ||||||||
Notes receivable | $ 0 | $ 0 | 14,289,000 | |||||||
Mezzanine Loan | Interlock Commercial | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Additional funds available | 3,000,000 | 3,000,000 | ||||||||
Maximum loan commitment | $ 107,000,000 | $ 107,000,000 | ||||||||
Interest rate | 15.00% | 15.00% | ||||||||
Notes receivable | $ 92,254,000 | $ 92,254,000 | 85,318,000 | |||||||
Mezzanine Loan | Nexton Multifamily | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Maximum loan commitment | $ 22,315,000 | $ 22,315,000 | ||||||||
Interest rate | 11.00% | 11.00% | ||||||||
Notes receivable | $ 18,549,000 | $ 18,549,000 | $ 0 |
Notes Receivable and Current _6
Notes Receivable and Current Expected Credit Losses (Changes in Allowance for Credit Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 2,129 | $ 3,085 | $ 2,584 | $ 0 |
Unrealized credit loss provision (release) | (617) | (33) | (284) | 227 |
Extinguishment due to acquisition | 0 | 0 | (788) | 0 |
Ending balance | 1,394 | 1,394 | ||
Unfunded Loan Commitment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Ending balance | 1,512 | 3,052 | 1,512 | 3,052 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 0 | $ 0 | $ 0 | $ 2,825 |
Construction Contracts - Summar
Construction Contracts - Summary of Costs in Excess of Billings and Billings in Excess of Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Construction contract costs and estimated earnings in excess of billings | ||
Beginning balance | $ 138 | $ 249 |
Transferred to receivables | (665) | (468) |
Construction contract costs and estimated earnings not billed during the period | 370 | 215 |
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion | 527 | 219 |
Ending balance | 370 | 215 |
Billings in excess of construction contract costs and estimated earnings | ||
Beginning balance | 6,088 | 5,306 |
Revenue recognized that was included in the balance at the beginning of the period | (6,088) | (5,306) |
Increases due to new billings, excluding amounts recognized as revenue during the period | 3,791 | 7,237 |
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion | (1,117) | (152) |
Ending balance | $ 2,674 | $ 7,085 |
Construction Contracts - Additi
Construction Contracts - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Capitalized contract cost, amortization | $ 0.2 | $ 0.7 | |
Construction receivables retentions | 7.1 | $ 17.1 | |
Construction | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Retentions | 6.5 | 17.7 | |
Portion Attributable To Pending Contracts | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Deferred pre-contract costs | $ 2.6 | $ 1.7 |
Construction Contracts - Summ_2
Construction Contracts - Summary of Net Position (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Contractors [Abstract] | ||||
Costs incurred on uncompleted construction contracts | $ 360,247 | $ 461,725 | ||
Estimated earnings | 14,427 | 13,205 | ||
Billings | (376,978) | (480,880) | ||
Net position | (2,304) | (5,950) | ||
Construction contract costs and estimated earnings in excess of billings | 370 | 138 | $ 215 | $ 249 |
Billings in excess of construction contract costs and estimated earnings | $ (2,674) | $ (6,088) | $ (7,085) | $ (5,306) |
Construction Contracts - Summ_3
Construction Contracts - Summary of Backlog (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue, Remaining Performance Obligation [Roll Forward] | ||||
Beginning backlog | $ 70,219 | $ 193,742 | $ 71,258 | $ 242,622 |
New contracts/change orders | 53,590 | (12,461) | 106,992 | 43,469 |
Work performed | (16,944) | (58,590) | (71,385) | (163,400) |
Ending backlog | $ 106,865 | $ 122,691 | $ 106,865 | $ 122,691 |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Expected completion of contracts | 12 months | 12 months | ||
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Expected completion of contracts | 18 months | 18 months |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Details) | Sep. 30, 2021USD ($) | Aug. 24, 2021USD ($) | May 05, 2021USD ($)extension | Apr. 15, 2021USD ($) | Mar. 08, 2021USD ($) | Jan. 28, 2021USD ($) | Jan. 15, 2021USD ($) | Oct. 03, 2019USD ($)extension | Sep. 30, 2021USD ($) | Jan. 07, 2021USD ($) | Dec. 31, 2020USD ($) |
Indebtedness | |||||||||||
Long-term debt | $ 968,424,000 | $ 968,424,000 | $ 963,845,000 | ||||||||
Harbor Point Parcel 3 Partnership | |||||||||||
Indebtedness | |||||||||||
Credit facility, amount outstanding | $ 15,000,000 | ||||||||||
LIBOR | Chronicle Mill | |||||||||||
Indebtedness | |||||||||||
Stated interest rate, basis spread on variable rate | 3.00% | ||||||||||
Minimum | Revolving Credit Facility | |||||||||||
Indebtedness | |||||||||||
Basis points on unused commitment fee | 0.15% | ||||||||||
Maximum | Revolving Credit Facility | |||||||||||
Indebtedness | |||||||||||
Basis points on unused commitment fee | 0.25% | ||||||||||
New Credit Facility | Harbor Point Parcel 3 Partnership | |||||||||||
Indebtedness | |||||||||||
Credit facility, amount outstanding | $ 15,000,000 | ||||||||||
Construction loans | |||||||||||
Indebtedness | |||||||||||
Borrowings under construction loans | $ 13,300,000 | ||||||||||
Construction loans | Chronicle Mill | |||||||||||
Indebtedness | |||||||||||
Number of extension options | extension | 2 | ||||||||||
Duration of extension option | 12 months | ||||||||||
Long-term debt | $ 35,100,000 | ||||||||||
Construction loans | LIBOR | Chronicle Mill | |||||||||||
Indebtedness | |||||||||||
Floor interest rate | 0.25% | ||||||||||
Operating Partnership | |||||||||||
Indebtedness | |||||||||||
Credit facility, amount outstanding | 9,500,000 | 9,500,000 | |||||||||
Operating Partnership | New Credit Facility | |||||||||||
Indebtedness | |||||||||||
Aggregate capacity under the credit facility | $ 355,000,000 | ||||||||||
Operating Partnership | New Credit Facility | Revolving Credit Facility | |||||||||||
Indebtedness | |||||||||||
Aggregate capacity under the credit facility | 134,000,000 | 150,000,000 | 134,000,000 | ||||||||
Accordion feature maximum borrowing capacity | $ 700,000,000 | ||||||||||
Number of extension options | extension | 2 | ||||||||||
Duration of extension option | 6 months | ||||||||||
Extension fee percentage | 0.075% | ||||||||||
Line of credit, amount outstanding | $ 30,000,000 | $ 30,000,000 | 10,000,000 | ||||||||
Interest rate on credit facility as of end of period | 1.58% | 1.58% | |||||||||
Operating Partnership | New Credit Facility | Term Loan Facility | |||||||||||
Indebtedness | |||||||||||
Aggregate capacity under the credit facility | $ 205,000,000 | ||||||||||
Line of credit, amount outstanding | $ 205,000,000 | $ 205,000,000 | $ 205,000,000 | ||||||||
Interest rate on credit facility as of end of period | 1.53% | 1.53% | |||||||||
Operating Partnership | New Credit Facility | Minimum | Revolving Credit Facility | LIBOR | |||||||||||
Indebtedness | |||||||||||
Stated interest rate, basis spread on variable rate | 1.30% | ||||||||||
Operating Partnership | New Credit Facility | Minimum | Term Loan Facility | LIBOR | |||||||||||
Indebtedness | |||||||||||
Stated interest rate, basis spread on variable rate | 1.25% | ||||||||||
Operating Partnership | New Credit Facility | Maximum | Revolving Credit Facility | LIBOR | |||||||||||
Indebtedness | |||||||||||
Stated interest rate, basis spread on variable rate | 1.85% | ||||||||||
Operating Partnership | New Credit Facility | Maximum | Term Loan Facility | LIBOR | |||||||||||
Indebtedness | |||||||||||
Stated interest rate, basis spread on variable rate | 1.80% | ||||||||||
4525 Main Street and Encore Apartments | |||||||||||
Indebtedness | |||||||||||
Increase long term debt | $ 1,500,000 | ||||||||||
Loan interest rate | 2.93% | ||||||||||
Long-term debt | $ 57,000,000 | ||||||||||
Nexton Square | |||||||||||
Indebtedness | |||||||||||
Repayments of long-term debt | $ 2,000,000 | ||||||||||
Long-term debt | $ 20,100,000 | ||||||||||
Floor interest rate | 0.25% | ||||||||||
Nexton Square | LIBOR | |||||||||||
Indebtedness | |||||||||||
Stated interest rate, basis spread on variable rate | 2.25% | ||||||||||
Delray Beach Plaza | Secured Debt | |||||||||||
Indebtedness | |||||||||||
Long-term debt | $ 14,500,000 | ||||||||||
Delray Beach Plaza | Secured Debt | LIBOR | |||||||||||
Indebtedness | |||||||||||
Stated interest rate, basis spread on variable rate | 3.00% | ||||||||||
Southgate Square | |||||||||||
Indebtedness | |||||||||||
Long-term debt | $ 19,500,000 | ||||||||||
Conditional extension term | 2 years | ||||||||||
Southgate Square | LIBOR | |||||||||||
Indebtedness | |||||||||||
Stated interest rate, basis spread on variable rate | 2.25% | ||||||||||
Floor interest rate | 0.75% | ||||||||||
Greenbrier Square | |||||||||||
Indebtedness | |||||||||||
Notes payable assumed | $ 20,000,000 | ||||||||||
Greenbrier Square | LIBOR | |||||||||||
Indebtedness | |||||||||||
Stated interest rate, basis spread on variable rate | 3.74% | ||||||||||
Thames Street Wharf | |||||||||||
Indebtedness | |||||||||||
Loan interest rate | 2.35% | 2.35% | |||||||||
Long-term debt | $ 71,000,000 | $ 71,000,000 | |||||||||
Thames Street Wharf | BSBY | |||||||||||
Indebtedness | |||||||||||
Stated interest rate, basis spread on variable rate | 1.30% |
Derivative Financial Instrume_3
Derivative Financial Instruments Derivative Financial Instruments - Schedule of LIBOR interest rate caps (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 16, 2021 | May 05, 2021 | Mar. 04, 2021 | Feb. 02, 2021 | Dec. 31, 2020 | Nov. 01, 2020 | Jul. 01, 2020 | Mar. 02, 2020 | Jan. 28, 2020 | Jan. 10, 2020 | May 15, 2019 |
Derivative [Line Items] | ||||||||||||
Notional Amount | $ 1,124,078 | $ 874,606 | ||||||||||
Interest rate caps | LIBOR | ||||||||||||
Derivative [Line Items] | ||||||||||||
Notional Amount | 783,954 | |||||||||||
Premium Paid | 1,170 | |||||||||||
Not designated as accounting hedges | ||||||||||||
Derivative [Line Items] | ||||||||||||
Notional Amount | 449,579 | 200,000 | ||||||||||
Not designated as accounting hedges | Interest rate caps | ||||||||||||
Derivative [Line Items] | ||||||||||||
Notional Amount | 399,579 | 150,000 | ||||||||||
Not designated as accounting hedges | Interest rate caps | LIBOR | ||||||||||||
Derivative [Line Items] | ||||||||||||
Notional Amount | $ 100,000 | $ 14,479 | $ 100,000 | $ 100,000 | ||||||||
Strike Rate | 0.50% | 2.50% | 0.50% | 2.50% | ||||||||
Premium Paid | $ 120 | $ 4 | $ 45 | $ 288 | ||||||||
Not designated as accounting hedges | Interest rate cap 0.50% LIBOR one | LIBOR | ||||||||||||
Derivative [Line Items] | ||||||||||||
Notional Amount | $ 50,000 | |||||||||||
Strike Rate | 0.50% | |||||||||||
Premium Paid | $ 75 | |||||||||||
Not designated as accounting hedges | Interest rate cap 0.50% LIBOR two | LIBOR | ||||||||||||
Derivative [Line Items] | ||||||||||||
Notional Amount | $ 35,100 | |||||||||||
Strike Rate | 0.50% | |||||||||||
Premium Paid | $ 55 | |||||||||||
Designated as accounting hedge | Interest rate caps | ||||||||||||
Derivative [Line Items] | ||||||||||||
Notional Amount | $ 384,375 | $ 384,375 | ||||||||||
Designated as accounting hedge | Interest rate caps | LIBOR | ||||||||||||
Derivative [Line Items] | ||||||||||||
Notional Amount | $ 100,000 | $ 100,000 | $ 50,000 | $ 50,000 | ||||||||
Strike Rate | 0.50% | 1.50% | 1.75% | 1.75% | ||||||||
Premium Paid | $ 232 | $ 111 | $ 62 | $ 87 | ||||||||
Designated as accounting hedge | Interest rate caps | SOFR | ||||||||||||
Derivative [Line Items] | ||||||||||||
Notional Amount | $ 84,375 | |||||||||||
Strike Rate | 1.84% | |||||||||||
Premium Paid | $ 91 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Floating-to-Fixed Interest Rate Swaps (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Notional amount | $ 1,124,078 | $ 874,606 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 340,124 | |
Not designated as accounting hedges | ||
Derivative [Line Items] | ||
Notional amount | 449,579 | 200,000 |
Not designated as accounting hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 50,000 | 50,000 |
Not designated as accounting hedges | Senior Unsecured Term Loan 2.78% | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 50,000 | |
Fixed interest rate | 2.78% | |
Effective interest rate | 4.23% | |
Designated as accounting hedge | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 290,124 | $ 290,231 |
Designated as accounting hedge | John Hopkins Village | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 50,123 | |
Fixed interest rate | 2.94% | |
Effective interest rate | 4.19% | |
Designated as accounting hedge | Senior Unsecured Term Loan 3.02% | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 10,500 | |
Fixed interest rate | 3.02% | |
Effective interest rate | 4.47% | |
Designated as accounting hedge | 249 Central Park Retail, South Retail, and Fountain Plaza Retail | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 33,501 | |
Fixed interest rate | 2.25% | |
Effective interest rate | 3.85% | |
Designated as accounting hedge | Senior Unsecured Term Loan 2.26% | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 50,000 | |
Fixed interest rate | 2.26% | |
Effective interest rate | 3.71% | |
Designated as accounting hedge | Thames Street Wharf | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 71,000 | |
Fixed interest rate | 1.05% | |
Effective interest rate | 2.35% | |
Designated as accounting hedge | Senior Unsecured Term Loan 0.50%, Term Loan One | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 25,000 | |
Fixed interest rate | 0.50% | |
Effective interest rate | 1.95% | |
Designated as accounting hedge | Senior Unsecured Term Loan 0.50%, Term Loan Two | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 25,000 | |
Fixed interest rate | 0.50% | |
Effective interest rate | 1.95% | |
Designated as accounting hedge | Senior Unsecured Term Loan 0.55% | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 25,000 | |
Fixed interest rate | 0.55% | |
Effective interest rate | 2.00% |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional Information (Details) $ in Millions | Sep. 30, 2021USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain (loss) reclassified during next 12 months | $ (4.6) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Derivatives (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Notional amount | $ 1,124,078 | $ 874,606 |
Asset, Fair Value | 361 | 90 |
Liability, Fair Value | (9,410) | (14,853) |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 340,124 | |
Not designated as accounting hedges | ||
Derivative [Line Items] | ||
Notional amount | 449,579 | 200,000 |
Asset, Fair Value | 217 | 4 |
Liability, Fair Value | (2,030) | (3,056) |
Not designated as accounting hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 50,000 | 50,000 |
Asset, Fair Value | 0 | 0 |
Liability, Fair Value | (2,030) | (3,056) |
Not designated as accounting hedges | Interest rate caps | ||
Derivative [Line Items] | ||
Notional amount | 399,579 | 150,000 |
Asset, Fair Value | 217 | 4 |
Liability, Fair Value | 0 | 0 |
Designated as accounting hedge | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 290,124 | 290,231 |
Asset, Fair Value | 0 | 0 |
Liability, Fair Value | (7,380) | (11,797) |
Designated as accounting hedge | Interest rate caps | ||
Derivative [Line Items] | ||
Notional amount | 384,375 | 384,375 |
Asset, Fair Value | 144 | 86 |
Liability, Fair Value | $ 0 | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Change in Fair Value of Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative [Line Items] | ||||
Change in fair value of derivatives and other | $ 166 | $ 330 | $ 941 | $ (1,412) |
Unrealized cash flow hedge gains (losses) | (460) | (118) | 1,347 | (9,886) |
Total change in fair value of interest rate derivatives | (294) | 212 | 2,288 | (11,298) |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Total change in fair value of interest rate derivatives | (60) | 323 | 2,315 | (10,907) |
Interest rate caps | ||||
Derivative [Line Items] | ||||
Total change in fair value of interest rate derivatives | $ (234) | $ (111) | $ (27) | $ (391) |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | Nov. 02, 2021 | Oct. 01, 2021 | Jan. 04, 2021 | Mar. 10, 2020 | Oct. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | |||||||
Percentage of operating partnership held | 74.60% | 73.90% | |||||
Class A units | |||||||
Class of Stock [Line Items] | |||||||
Class A Units not held by Company (in shares) | 20,853,485 | ||||||
The Amendments | Common stock | |||||||
Class of Stock [Line Items] | |||||||
Shares issued (in shares) | 2,118,670 | ||||||
Sale of stock, weighted average price per share | $ 13.21 | ||||||
Consideration received on transaction | $ 27,400,000 | ||||||
The Amendments | Common stock | Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Shares issued (in shares) | 181,562 | ||||||
Sale of stock, weighted average price per share | $ 13.56 | ||||||
Consideration received on transaction | $ 2,400,000 | ||||||
Noncontrolling interests in investment entities | Operating Partnership | |||||||
Class of Stock [Line Items] | |||||||
Ownership interest percentage in properties | $ 600,000 | $ 500,000 | |||||
Redeemable convertible preferred stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock dividend rate percentage | 6.75% | 6.75% | |||||
Redeemable convertible preferred stock | At The Market Program | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock dividend rate percentage | 6.75% | ||||||
Maximum aggregate offering price of shares to be sold (up to) | $ 300,000,000 | ||||||
Series A Preferred Stock | The Amendments | Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Maximum aggregate offering price of shares to be sold (up to) | $ 234,500,000 | ||||||
Common Class A | Stock Issuance - Shares From Existing Shareholder | |||||||
Class of Stock [Line Items] | |||||||
Sale of stock, number of shares issued in transaction | 12,000 | ||||||
Common Class A | Stock Issuance - Shares From Existing Shareholder | Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Consideration received on transaction | $ 2,900,000 | ||||||
Sale of stock, number of shares issued in transaction | 220,000 |
Equity - Dividends and Distribu
Equity - Dividends and Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 02, 2021 | May 03, 2021 | Feb. 09, 2021 | Nov. 10, 2020 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 |
Class of Stock [Line Items] | |||||||||
Dividend declared (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.15 | $ 0.11 | $ 0.22 | ||||
Aggregate Dividends | $ 2,887 | $ 2,887 | $ 2,887 | $ 2,220 | $ 1,067 | ||||
Common Class A | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend declared (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.15 | $ 0.11 | |||||
Aggregate Dividends | $ 13,148 | $ 13,095 | $ 12,112 | $ 8,793 | |||||
Series A Preferred Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends declared (in dollars per share) | $ 0.421875 | $ 0.421875 | $ 0.421875 | $ 0.421875 | |||||
Aggregate Dividends | $ 2,887 | $ 2,887 | $ 2,887 | $ 2,887 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ 0.5 | $ 0.5 | $ 2.1 | $ 2.3 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock granted (in shares) | 165,685 | |||
Restricted stock granted, grant date fair value (in dollars per share) | $ 12.87 | |||
Restricted stock surrendered, forfeited in period (in dollars per share) | 43,646 | |||
Employee restricted stock award, vesting period | 2 years | |||
Nonvested restricted shares outstanding (in shares) | 152,453 | 152,453 | ||
Unrecognized compensation cost | $ 1.1 | $ 1.1 | ||
Unrecognized compensation cost, recognition period | 30 months | |||
Restricted Stock | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Employee restricted stock award, vesting period | 3 years | |||
Restricted Stock | Non-Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Non-employee restricted stock award vest grant over period | 1 year | |||
Restricted Stock | Grant Date | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 33.33% | |||
Restricted Stock | Grant Date | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 40.00% | |||
Restricted Stock | First Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 33.33% | |||
Restricted Stock | First Anniversary | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 20.00% | |||
Restricted Stock | Second Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 33.33% | |||
Restricted Stock | Second Anniversary | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 20.00% | |||
Restricted Stock | Third Anniversary | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 20.00% | |||
Amended and Restated 2013 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of shares reserved for issuance (in shares) | 1,700,000 | 1,700,000 | ||
Shares available for issuance (in shares) | 608,441 | 608,441 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Amounts and Fair Values of Financial Instruments Measured based on Level Two Inputs (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Fair Value of Financial Instruments | ||
Indebtedness, net | $ 1,018,547 | $ 963,845 |
Notes receivable, net | 118,164 | 135,432 |
Interest rate swap liabilities | 9,410 | 14,853 |
Interest rate swap and cap assets | 361 | 90 |
Fair Value | ||
Fair Value of Financial Instruments | ||
Indebtedness, net | 1,037,473 | 980,714 |
Notes receivable, net | 118,164 | 135,223 |
Interest rate swap liabilities | 9,410 | 14,853 |
Interest rate swap and cap assets | $ 361 | $ 90 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | May 13, 2013 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Operating Partnership | ||||||
Related Party Transactions | ||||||
Credit facility, amount outstanding | $ 9.5 | $ 9.5 | ||||
Construction Contracts | ||||||
Related Party Transactions | ||||||
Revenue from contracts with affiliated entities | 4.1 | $ 15.9 | 22.8 | $ 35.4 | ||
Gross profit from related parties | 0.8 | $ 0.6 | 1.5 | $ 1.3 | ||
Due from related parties | 3.9 | 3.9 | $ 8.6 | |||
Tax Protection Agreements | Operating Partnership | ||||||
Related Party Transactions | ||||||
Future sale period for properties in limited number of cases | 10 years | |||||
Executive Officer | Construction Contracts | ||||||
Related Party Transactions | ||||||
Gross profit from related parties | 3.8 | |||||
Related party amount of transaction | $ 81.8 | |||||
Gross profit margin, related parties | 4.90% | |||||
Credit facility, amount outstanding | $ 9.5 | $ 9.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Jan. 07, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies | |||
Line of credit, performance and payment bonds | $ 2.1 | $ 2.4 | |
Unfunded Loan Commitment | |||
Commitments and Contingencies | |||
Loans and leases receivable, commitments, variable rates | 6.6 | ||
Harbor Point Parcel 3 Partnership | |||
Commitments and Contingencies | |||
Credit facility, amount outstanding | $ 15 | ||
Interlock Commercial | Financial Guarantee | |||
Commitments and Contingencies | |||
Guarantor obligations, maximum exposure (up to) | 37.5 | ||
Guarantor obligations, carrying value | 1.6 | ||
Operating Partnership | |||
Commitments and Contingencies | |||
Credit facility, amount outstanding | $ 9.5 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 25, 2021 | Oct. 01, 2021 | Sep. 02, 2021 | May 03, 2021 | Feb. 09, 2021 | Jan. 04, 2021 | Nov. 10, 2020 | Oct. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 |
Subsequent Event [Line Items] | ||||||||||||||
Dividend declared (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.15 | $ 0.11 | $ 0.22 | |||||||||
Common Class A | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Dividend declared (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.15 | $ 0.11 | ||||||||||
Series A Preferred Stock | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Dividends declared (in dollars per share) | $ 0.421875 | $ 0.421875 | $ 0.421875 | $ 0.421875 | ||||||||||
Stock Issuance - Shares From Existing Shareholder | Common Class A | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Sale of stock, number of shares issued in transaction | 12,000 | |||||||||||||
Common stock | The Amendments | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Consideration received on transaction | $ 27.4 | |||||||||||||
Shares issued (in shares) | 2,118,670 | |||||||||||||
Sale of stock, weighted average price per share | $ 13.21 | |||||||||||||
Construction loans | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Borrowings under construction loans | $ 13.3 | |||||||||||||
Subsequent Event | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Dividend declared (in dollars per share) | $ 0.17 | |||||||||||||
Increase from prior dividend | 6.25% | |||||||||||||
Subsequent Event | Series A Preferred Stock | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Dividends declared (in dollars per share) | $ 0.421875 | |||||||||||||
Subsequent Event | Stock Issuance - Shares From Existing Shareholder | Common Class A | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Sale of stock, number of shares issued in transaction | 220,000 | |||||||||||||
Consideration received on transaction | $ 2.9 | |||||||||||||
Subsequent Event | Common stock | The Amendments | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Consideration received on transaction | $ 2.4 | |||||||||||||
Shares issued (in shares) | 181,562 | |||||||||||||
Sale of stock, weighted average price per share | $ 13.56 | |||||||||||||
Subsequent Event | Revolving Credit Facility | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Proceeds from long-term lines of credit | $ 20 | |||||||||||||
Subsequent Event | Courthouse 7-Eleven | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Consideration transferred | 3.1 | |||||||||||||
Subsequent Event | Construction loans | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Borrowings under construction loans | $ 3.7 |
Uncategorized Items - ahh-20210
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |