Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | May 02, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Registrant Name | CITY OFFICE REIT, INC. | |
Entity Central Index Key | 0001593222 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 39,938,451 | |
Entity Address, State or Province | BC | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-36409 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 98-1141883 | |
Entity Address, City or Town | Vancouver | |
Entity Address, Address Line One | 666 Burrard Street | |
Entity Address, Address Line Two | Suite 3210 | |
Entity Address, Postal Zip Code | V6C 2X8 | |
City Area Code | 604 | |
Local Phone Number | 806-3366 | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | CIO | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock | |
6.625% Series A Cumulative Redeemable Preferred Stock [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | CIO.PrA | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | 6.625% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Real estate properties | ||
Land | $ 199,537 | $ 199,537 |
Building and improvement | 1,217,036 | 1,215,000 |
Tenant improvement | 142,188 | 139,365 |
Furniture, fixtures and equipment | 689 | 689 |
Real estate properties, gross | 1,559,450 | 1,554,591 |
Accumulated depreciation | (186,143) | (175,720) |
Real estate properties, net | 1,373,307 | 1,378,871 |
Cash and cash equivalents | 35,854 | 28,187 |
Restricted cash | 16,385 | 16,075 |
Rents receivable, net | 46,758 | 44,429 |
Deferred leasing costs, net | 21,841 | 21,989 |
Acquired lease intangible assets, net | 52,692 | 55,438 |
Other assets | 29,039 | 29,450 |
Total Assets | 1,575,876 | 1,574,439 |
Liabilities: | ||
Debt | 708,481 | 690,099 |
Accounts payable and accrued liabilities | 29,527 | 35,753 |
Deferred rent | 8,869 | 9,147 |
Tenant rent deposits | 7,177 | 7,040 |
Acquired lease intangible liabilities, net | 8,781 | 9,150 |
Other liabilities | 21,522 | 20,076 |
Total Liabilities | 784,357 | 771,265 |
Commitments and Contingencies (Note 9) | ||
Equity: | ||
6.625% Series A Preferred stock, $0.01 par value per share, 5,600,000 shares authorized, 4,480,000 issued and outstanding as of March 31, 2023 and December 31, 2022 | 112,000 | 112,000 |
Common stock, $0.01 par value, 100,000,000 shares authorized, 39,938,451 and 39,718,767 shares issued and outstanding as of March 31, 2023 and December 31, 2022 | 399 | 397 |
Additional paid-in capital | 435,626 | 436,161 |
Retained earnings | 242,318 | 251,542 |
Accumulated other comprehensive income | 789 | 2,731 |
Total Stockholders' Equity | 791,132 | 802,831 |
Non-controlling interests in properties | 387 | 343 |
Total Equity | 791,519 | 803,174 |
Total Liabilities and Equity | $ 1,575,876 | $ 1,574,439 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Statement of Financial Position [Abstract] | ||
Preferred stock, Dividend rate percentage | 6.625% | 6.625% |
Preferred stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,600,000 | 5,600,000 |
Preferred stock, shares issued | 4,480,000 | 4,480,000 |
Preferred stock, shares outstanding | 4,480,000 | 4,480,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 39,938,451 | 39,718,767 |
Common stock, shares outstanding | 39,938,451 | 39,718,767 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Rental and other revenues | $ 45,957 | $ 44,852 |
Operating expenses: | ||
Property operating expenses | 17,720 | 16,489 |
General and administrative | 3,765 | 3,456 |
Depreciation and amortization | 15,304 | 15,815 |
Total operating expenses | 36,789 | 35,760 |
Operating income | 9,168 | 9,092 |
Interest expense: | ||
Contractual interest expense | (7,972) | (5,747) |
Amortization of deferred financing costs and debt fair value | (323) | (312) |
Interest expense, net | (8,295) | (6,059) |
Net gain on sale of real estate property | 0 | 21,658 |
Net income | 873 | 24,691 |
Net income attributable to non-controlling interests in properties | (169) | (171) |
Net income attributable to the Company | 704 | 24,520 |
Preferred stock distributions | (1,855) | (1,855) |
Net (loss)/income attributable to common stockholders | $ (1,151) | $ 22,665 |
Net (loss)/income per common share: | ||
Basic | $ (0.03) | $ 0.52 |
Diluted | $ (0.03) | $ 0.51 |
Weighted average common shares outstanding: | ||
Basic | 39,873 | 43,554 |
Diluted | 39,873 | 44,406 |
Dividend distributions declared per common share | $ 0.2 | $ 0.2 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 873 | $ 24,691 |
Other comprehensive (loss)/income: | ||
Unrealized cash flow hedge (loss)/gain | (1,465) | 1,614 |
Amounts reclassified to interest expense | (477) | 140 |
Other comprehensive (loss)/income | (1,942) | 1,754 |
Comprehensive (loss)/income | (1,069) | 26,445 |
Comprehensive income attributable to non-controlling interests in properties | (169) | (171) |
Comprehensive (loss)/income attributable to the Company | $ (1,238) | $ 26,274 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total stockholders' equity [Member] | Non-controlling Interests in Properties [Member] |
Beginning balance at Dec. 31, 2021 | $ 870,595 | $ 112,000 | $ 435 | $ 482,061 | $ 275,502 | $ (382) | $ 869,616 | $ 979 |
Beginning balance, shares at Dec. 31, 2021 | 4,480,000 | 43,554,000 | ||||||
Restricted stock award grants and vesting, values | 904 | 972 | (68) | 904 | ||||
Common stock dividend distribution declared | (8,711) | (8,711) | (8,711) | |||||
Preferred stock dividend distribution declared | (1,855) | (1,855) | (1,855) | |||||
Contributions | 3 | 3 | ||||||
Distributions | (254) | (254) | ||||||
Net income | 24,691 | 24,520 | 24,520 | 171 | ||||
Other comprehensive income (loss) | 1,754 | 1,754 | 1,754 | |||||
Ending balance at Mar. 31, 2022 | 887,127 | $ 112,000 | $ 435 | 483,033 | 289,388 | 1,372 | 886,228 | 899 |
Ending balance, shares at Mar. 31, 2022 | 4,480,000 | 43,554,000 | ||||||
Beginning balance at Dec. 31, 2022 | 803,174 | $ 112,000 | $ 397 | 436,161 | 251,542 | 2,731 | 802,831 | 343 |
Beginning balance, shares at Dec. 31, 2022 | 4,480,000 | 39,718,000 | ||||||
Restricted stock award grants and vesting, values | (618) | $ 2 | (535) | (85) | (618) | |||
Restricted stock award grants and vesting, shares | 220,000 | |||||||
Common stock dividend distribution declared | (7,988) | (7,988) | (7,988) | |||||
Preferred stock dividend distribution declared | (1,855) | (1,855) | (1,855) | |||||
Contributions | 110 | 110 | ||||||
Distributions | (235) | (235) | ||||||
Net income | 873 | 704 | 704 | 169 | ||||
Other comprehensive income (loss) | (1,942) | (1,942) | (1,942) | |||||
Ending balance at Mar. 31, 2023 | $ 791,519 | $ 112,000 | $ 399 | $ 435,626 | $ 242,318 | $ 789 | $ 791,132 | $ 387 |
Ending balance, shares at Mar. 31, 2023 | 4,480,000 | 39,938,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net income | $ 873 | $ 24,691 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,304 | 15,815 |
Amortization of deferred financing costs and debt fair value | 323 | 312 |
Amortization of above and below market leases | 9 | 63 |
Straight-line rent/expense | (2,801) | (2,050) |
Non-cash stock compensation | 1,024 | 904 |
Net gain on sale of real estate property | 0 | (21,658) |
Changes in non-cash working capital: | ||
Rents receivable, net | 539 | (3,844) |
Other assets | (282) | 534 |
Accounts payable and accrued liabilities | (965) | 35 |
Deferred rent | (278) | (436) |
Tenant rent deposits | 137 | 293 |
Net Cash Provided By Operating Activities | 13,883 | 14,659 |
Cash Flows to Investing Activities: | ||
Additions to real estate properties | (11,383) | (6,476) |
Net proceeds from sale of real estate . | 0 | 1,000 |
Deferred leasing costs | (1,037) | (1,423) |
Net Cash Used In Investing Activities | (12,420) | (6,899) |
Cash Flows from/(to) Financing Activities: | ||
Debt issuance and extinguishment costs | (236) | 0 |
Proceeds from borrowings | 25,000 | 14,000 |
Repayment of borrowings | (6,683) | (5,564) |
Dividend distributions paid to stockholders | (9,799) | (10,566) |
Distributions to non-controlling interests in properties | (235) | (254) |
Shares withheld for payment of taxes on restricted stock unit vesting | (1,643) | 0 |
Contributions from non-controlling interests in properties | 110 | 3 |
Net Cash Provided By/(Used In) Financing Activities | 6,514 | (2,381) |
Net Increase in Cash, Cash Equivalents and Restricted Cash | 7,977 | 5,379 |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 44,262 | 42,266 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 52,239 | 47,645 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash: | ||
Cash and Cash Equivalents, End of Period | 35,854 | 26,742 |
Restricted Cash, End of Period | 16,385 | 20,903 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 52,239 | 47,645 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | 7,256 | 5,374 |
Purchase of additions in real estate properties included in accounts payable | 7,811 | 10,465 |
Purchase of deferred leasing costs included in accounts payable | $ 1,207 | $ 3,627 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business City Office REIT, Inc. (the “Company”) was organized in the state of Maryland on November 26, 2013. On April 21, 2014, the Company completed its initial public offering (“IPO”) of shares of the Company’s common stock. The Company contributed the net proceeds of the IPO to City Office REIT Operating Partnership, L.P., a Maryland limited partnership (the “Operating Partnership”), in exchange for common units of limited partnership interest in the Operating Partnership (“common units”). The Company’s interest in the Operating Partnership entitles the Company to share in distributions from, and allocations of profits and losses of, the Operating Partnership in proportion to the Company’s percentage ownership of common units. As the sole general partner of the Operating Partnership, the Company has the exclusive power under the Operating Partnership’s partnership agreement The Company has elected to be taxed and will continue to operate in a manner that will allow it to continue to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). Subject to qualification as a REIT, the Company will be permitted to deduct dividend distributions paid to its stockholders, eliminating the U.S. federal taxation of income represented by such distributions at the Company level. REITs are subject to a number of organizational and operational requirements. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to U.S. federal and state income tax on its taxable income at regular corporate tax rates and, for years prior to 2018, any applicable alternative minimum tax. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Preparation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with Securities and Exchange Commission (“SEC”) rules and regulations and generally accepted accounting principles in the United States of America (“US GAAP”) and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (the “FASB”) established Topic 848, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, by issuing Accounting Standards Update (“ASU”) No. 2020-04 2020-04”). 2020-04 No. 2021-01, 2021-01”). 2021-01 2020-04 2021-01 No. 2022-06, 2022-06”). 2022-06 |
Real Estate Investments
Real Estate Investments | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate [Abstract] | |
Real Estate Investments | 3. Real Estate Investments Sale of Real Estate Property During the first quarter of 2022, the sole tenant at the Lake Vista Pointe property exercised its lease option to purchase the building and the Company signed a purchase and sale agreement with the tenant. At the time the tenant exercised the option, the Company reassessed the classification of the lease, in accordance with ASC 842 – Leases, and determined that the lease should be reclassified from an operating lease to a sales-type lease. This reclassification resulted in a gain on sale of $ million net of disposal-related costs. On June 15, 2022, the Company sold the Lake Vista Pointe property in Dallas, Texas for a gross sales price of $ million. |
Lease Intangibles
Lease Intangibles | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Lease Intangibles | 4. Lease Intangibles Lease intangibles and the value of assumed lease obligations as of March 31, 2023 and December 31, 2022 were comprised of the following (in thousands): Lease Intangible Assets Lease Intangible Liabilities March 31, 2023 Above Market In Place Leases Leasing Total Below Below Market Lease Total Cost $ 18,793 $ 77,530 $ 33,698 $ 130,021 $ (15,091 ) $ (138 ) $ (15,229 ) Accumulated amortization (9,447 ) (50,218 ) (17,664 ) (77,329 ) 6,395 53 6,448 $ 9,346 $ 27,312 $ 16,034 $ 52,692 $ (8,696 ) $ (85 ) $ (8,781 ) Lease Intangible Assets Lease Intangible Liabilities December 31, 2022 Above Market In Place Leases Leasing Total Below Below Total Cost $ 18,793 $ 78,720 $ 34,123 $ 131,636 $ (15,682 ) $ (138 ) $ (15,820 ) Accumulated amortization (9,069 ) (49,772 ) (17,357 ) (76,198 ) 6,618 52 6,670 $ 9,724 $ 28,948 $ 16,766 $ 55,438 $ (9,064 ) $ (86 ) $ (9,150 ) The estimated aggregate amortization expense for lease intangibles for the next five years and in the aggregate are as follows (in thousands): 2023 $ 6,484 2024 6,660 2025 6,479 2026 6,490 2027 5,217 Thereafter 12,581 $ 43,911 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt On January 5, 2023, the Company transitioned the borrowing rate of its unsecured credit facility (the “Unsecured Credit Facility”) and $ million term loan from LIBOR to daily-simple SOFR. The Company applied the practical expedients available under the reference rate reform guidance and accounted for the modifications as continuations of the existing contracts. The following table summarizes the indebtedness as of March 31, 2023 and December 31, 2022 (dollars in thousands): Property March 31, 2023 December 31, 2022 Interest Rate as of March 31, 2023 (1) Maturity Unsecured Credit Facility (3)(5) $ 195,713 $ 200,500 SOFR +1.40 % (2) November 2025 Term Loan (4) 50,000 50,000 SOFR +1.35 % (2) September 2024 Term Loan (5) 25,000 — SOFR +2.10 % (2) January 2026 Mission City 46,646 46,859 3.78 % November 2027 Canyon Park (6) 39,490 39,673 4.30 % March 2027 Circle Point 39,280 39,440 4.49 % September 2028 190 Office Center (7) 38,711 38,894 4.79 % October 2025 SanTan 31,968 32,140 4.56 % March 2027 Intellicenter 31,141 31,297 4.65 % October 2025 The Quad 30,600 30,600 4.20 % September 2028 2525 McKinnon 27,000 27,000 4.24 % April 2027 FRP Collection 26,592 26,784 3.10 % September 2023 Greenwood Blvd 21,263 21,396 3.15 % December 2025 Cascade Station (8) 21,089 21,192 4.55 % May 2024 5090 N. 40 th 20,701 20,810 3.92 % January 2027 AmberGlen 20,000 20,000 3.69 % May 2027 Central Fairwinds 16,163 16,273 3.15 % June 2024 FRP Ingenuity Drive (9) 16,088 16,165 4.44 % December 2024 Carillon Point 14,668 14,773 3.10 % October 2023 Total Principal 712,113 693,796 Deferred financing costs, net (3,786 ) (3,887 ) Unamortized fair value adjustments 154 190 Total $ 708,481 $ 690,099 (1) All interest rates are fixed interest rates with the exception of the Unsecured Credit Facility and the term loans, as explained in footnotes 3, 4 and 5 below. (2) As of March 31, 2023, the daily-simple SOFR rate was 4.87%. (3) Borrowings under the Unsecured Credit Facility bear interest at a rate equal to the daily-simple SOFR rate plus a margin of between 135 to 235 basis points depending upon the Company’s consolidated leverage ratio. On February 9, 2023, the Company entered into a three-year interest rate swap for a notional amount of $140 million, effective March 8, 2023, effectively fixing the SOFR component of the borrowing rate for $140 million of the Unsecured Credit Facility. As of March 31, 2023, the Unsecured Credit Facility had $195.7 million drawn and a $4.2 million letter of credit to satisfy escrow requirements for a mortgage lender. The Unsecured Credit Facility matures in November 2025 and may be extended 12 (4) Borrowings under the $50 million term loan bear interest at a rate equal to the daily-simple SOFR rate plus a margin of between 135 to 225 basis points depending upon the Company’s consolidated leverage ratio. The SOFR component of the borrowing rate is effectively fixed by a $50 million interest rate swap. (5) On January 5, 2023, the Company entered into a second amendment to its amended and restated credit agreement dated November 16, 2021 (as amended, the “Amended and Restated Credit Agreement”) for the Unsecured Credit Facility and entered into a three-year (6) The mortgage loan anticipated repayment date (“ARD”) is March 1, 2027. The final scheduled maturity date can be extended up to 5 years beyond the ARD. If the loan is not paid off at ARD, the loan’s interest rate shall be adjusted to the greater of (i) the initial interest rate plus 200 basis points or (ii) the yield on the five year “on the run” treasury reported by Bloomberg market data service plus 450 basis points. (7) In the fourth quarter of 2022, a ‘cash-sweep period’ began for the 190 Office Center loan due to the non-renewal ‘cash-sweep period’ (8) In the first quarter of 2023, a ‘cash-sweep period’ (9) As of September 30, 2022, the Debt Service Coverage Ratio (“DSCR”) covenant for FRP Ingenuity Drive was not met, which triggered a ‘cash-sweep period’ that began in the fourth quarter of 2022. As of March 31, 2023, the DSCR was still not met. As of March 31, 2023 and December 31, 2022, total restricted cash for the property was $ 2.8 million and $2.6 million, respectively. The scheduled principal repayments of debt as of March 31, 2023 are as follows (in thousands): 2023 $ 46,084 2024 108,480 2025 287,710 2026 29,416 2027 176,303 Thereafter 64,120 $ 712,113 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 6. 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 Inputs – quoted prices in active markets for identical assets or liabilities Level 2 Inputs – observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 Inputs – unobservable inputs In January 2023, the Company amended the $ million interest rate swap to transition from LIBOR to daily-simple SOFR. The Company applied the practical expedients available for hedging relationships under the reference rate reform guidance, which preserves the presentation of the derivative consistent with past presentation and does not result in dedesignation of the hedging relationship. Pursuant to the amended interest rate swap, the Company will pay a fixed rate of approximately % of the notional amount annually, payable monthly, and receive floating rate daily-simple SOFR payments. In January 2023, the Company entered into an interest rate swap for a notional amount of $25 million. Pursuant to the interest rate swap, the Company will pay a fixed rate of approximately 3.90% of the notional amount annually, payable monthly, and receive floating rate daily-simple SOFR payments. In February 2023, the Company entered into an interest rate swap for a notional amount of $140 million. Pursuant to the interest rate swap, the Company will pay a fixed rate of approximately 4.19% of the notional amount annually, payable quarterly, and receive floating rate daily-simple SOFR payments. The fair value of the interest rate swaps have been classified as Level 2 fair value measurements. The interest rate swaps have been designated and qualify as cash flow hedges and have been recognized on the condensed consolidated balance sheets at fair value, presented within other assets and other liabilities. Gains and losses resulting from changes in the fair value of derivatives that have been designated and qualify as cash flow hedges are reported as a component of other comprehensive income/(loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. The following table summarizes the Company’s derivative financial instruments as of March 31, 2023 and December 31, 2022 (in thousands): Notional Value Effective Date Maturity Date Fair Value Assets/(Liabilities) March 31, 2023 December 31, 2022 Interest Rate Swap $ 50,000 September 2019 September 2024 $ 2,241 $ 2,731 Interest Rate Swap 25,000 January 2023 January 2026 (94 ) — Interest Rate Swap 140,000 March 2023 November 2025 (1,358 ) — $ 215,000 $ 789 $ 2,731 For the three months ended March 31, 2023, approximately $0.5 million of realized gains were reclassified to interest expense due to payments received from the swap counterparty. For the three months ended March 31, 2022, approximately $0.1 million of realized losses were reclassified to interest expense due to payments made to the swap counterparty. Cash, Cash Equivalents, Restricted Cash, Rents Receivable, Accounts Payable and Accr ued Lia The Company estimates that the fair value approximates carrying value due to the relatively short-term nature of these instruments. Fair Value of Financial Instruments Not Carried at Fair Value With the exception of fixed rate mortgage loans payable, the carrying amounts of the Company’s financial instruments approximate their fair value. The Company determines the fair value of its fixed rate mortgage loan payable based on a discounted cash flow analysis using a discount rate that approximates the current borrowing rates for instruments of similar maturities. Based on this, the Company has determined that the fair value of these instruments was $425.6 million and $420.7 million (compared to a carrying value of $441.4 million and $443.3 million) as of March 31, 2023, and December 31, 2022, respectively. Accordingly, the fair value of mortgage loans payable have been classified as Level 3 fair value measurements. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions Administrative Services Agreement For the three months ended March 31, 2023 and 2022, the Company earned $0.1 million and $0.1 million, respectively, in administrative services performed for Second City Real Estate II Corporation, Clarity Real Estate Ventures GP, Limited Partnership and their affiliates. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | 8. Leases Lessor Accounting The Company is focused on acquiring, owning and operating high-quality office properties for lease to a stable and diverse tenant base. Our properties have both full-service gross and net leases which are generally classified as operating leases. Rental income related to such leases is recognized on a straight-line basis over the remaining lease term. The Company’s total revenue includes fixed base rental payments provided under the lease and variable payments, which principally consist of tenant expense reimbursements for certain property operating expenses as provided under the lease. The Company recognized fixed and variable lease payments for operating leases for the three months ended March 31, 2023 and 2022 as follows (in thousands): Three Months Ended March 31, 2023 2022 Fixed payments $ 38,914 $ 38,320 Variable payments 6,743 6,440 $ 45,657 $ 44,760 Future minimum lease payments to be received by the Company as of March 31, 2023 under non-cancellable 2023 $ 94,066 2024 118,908 2025 107,742 2026 98,598 2027 82,242 Thereafter 223,165 $ 724,721 The Company’s leases may include various provisions such as scheduled rent increases, renewal options and termination options. The majority of the Company’s leases include defined rent increases rather than variable payments based on an index or unknown rate. Lessee Accounting As a lessee, the Company has ground and office leases which are classified as operating and financing leases. As of March 31, 2023, these leases had remaining terms of under one year to 65 years and a weighted average remaining lease term of 50 years. Right-of-use March 31, 2023 December 31, 2022 Right operating $ 12,825 $ 12,935 Lease operating $ 8,738 $ 8,802 Right financing $ 9,991 $ 10,054 Lease financing $ 1,491 $ 1,475 Lease liabilities are measured at the commencement date based on the present value of future lease payments. One of the Company’s operating ground leases includes rental payment increases over the lease term based on increases in the Consumer Price Index (“CPI”). Changes in the CPI were not estimated as part of the measurement of the operating lease liability. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The Company used a weighted average discount rate of 6.2% in determining its lease liabilities. The discount rates were derived from the Company’s assessment of the credit quality of the Company and adjusted to reflect secured borrowing, estimated yield curves and long-term spread adjustments. Right-of-use Operating lease expense for the three months ended March 31, 2023 and March 31, 2022 were $0.2 million and $0.3 million, respectively. Financing lease expense for the three months ended March 31, 2023 and March 31, 2022 were $0.1 million and $0.1 million, respectively. Future minimum lease payments to be paid by the Company as a lessee for operating and financing leases as of March 31, 2023 for the next five years and thereafter are as follows (in thousands): Operating Leases Financing 2023 $ 459 $ 5 2024 770 7 2025 770 8 2026 724 8 2027 587 8 Thereafter 26,563 6,938 Total future minimum lease payments 29,873 6,974 Discount (21,135 ) (5,483 ) Total $ 8,738 $ 1,491 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies The Company is obligated under certain tenant leases to fund tenant improvements and the expansion of the underlying leased properties. Under various federal, state and local laws, ordinances and regulations relating to the protection of the environment, a current or previous owner or operator of real estate may be liable for the cost of removal or remediation of certain hazardous or toxic substances disposed, stored, generated, released, manufactured or discharged from, on, at, under, or in a property. As such, the Company may be potentially liable for costs associated with any potential environmental remediation at any of its formerly or currently owned properties. The Company believes that it is in compliance in all material respects with all federal, state and local ordinances and regulations regarding hazardous or toxic substances. Management is not aware of any environmental liability that it believes would have a material adverse impact on the Company’s financial position or results of operations. Management is unaware of any instances in which the Company would incur significant environmental costs if any or all properties were sold, disposed of or abandoned. However, there can be no assurance that any such non-compliance, The Company is involved from time to time in lawsuits and other disputes which arise in the ordinary course of business. As of March 31, 2023, management believes that these matters will not have a material adverse effect, individually or in the aggregate, on the Company’s financial position or results of operations. |
Stockholder's Equity
Stockholder's Equity | 3 Months Ended |
Mar. 31, 2023 | |
Federal Home Loan Banks [Abstract] | |
Stockholder's Equity | 10. Stockholders’ Equity Share Repurchase Plan On March 9, 2020, the Company’s Board of Directors (the “Board of Directors”) approved a share repurchase plan authorizing the Company to repurchase up to $ million of its outstanding shares of common stock. In July 2020, the Company completed the full March 2020 share repurchase plan. On August 5, 2020, the Board of Directors approved an additional share repurchase plan authorizing the Company to repurchase up to an additional aggregate amount of $ million of its outstanding shares of common stock. In September 2022, the Company completed the full August 2020 share repurchase plan. Under the share repurchase programs, the shares may be repurchased from time to time using a variety of methods, which may include open market transactions, privately negotiated transactions or otherwise, all in accordance with the rules of the SEC and other applicable legal requirements. Repurchased shares of common stock will be classified as authorized and unissued shares. The Company recognizes the cost of shares of common stock it repurchases, including direct costs incurred, as a reduction in stockholders’ equity. Such reductions of stockholders equity due to the repurchases of shares of common stock will be applied first, to reduce common stock in the amount of the par value associated with the shares of common stock repurchased and second, to reduce additional paid-in There were no shares repurchased during the three months ended March 31, 2023 and 2022. Common Stock and Common Unit Distributions On March 14, 2023, the Board of Directors approved and the Company declared a cash dividend distribution of $ Preferred Stock Distributions On March 14, 2023, the Board of Directors approved and the Company declared a cash dividend distribution of $ Equity Incentive Plan The Company has an equity incentive plan non-executive shares of common stock. To the extent an award granted under the Equity Incentive Plan expires or terminates, the shares subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards. On January 27, 2020, each of the Board of Directors and the Compensation Committee approved a new form of performance-based restricted unit award agreement measurement period beginning January 1 of the year of grant (the “Measurement Period”) relative to the TSR of a defined peer group list of other US Office REIT companies (the “Peer Group”) as of the first trading date in the year of grant. To the extent earned, the payouts of the Performance RSU Awards are intended to be settled in the form of shares of the Company’s common stock, pursuant to the Equity Incentive Plan. Upon satisfaction of the vesting conditions, dividend equivalents in an amount equal to all regular and special dividends declared with respect to the Company’s common stock during each annual measurement period during the Measurement Period are determined and paid on a cumulative, reinvested basis over the term of the applicable Performance RSU Award, at the time such award vests and based on the number of shares of the Company’s common stock that are earned. During the first quarter of 2023, the Performance RSU Awards granted in January 2020, with a January 1, 2020 through December 31, 2022 Measurement Period, were earned at 150% of the target number of shares granted based on achievement of a TSR that was at or above the 75th percentile of the 2020 Peer Group. The following table summarizes the activity of the awards under the Equity Incentive Plan for the three months ended March 31, 2023: Number of RSUs Number of Performance RSUs Outstanding at December 31, 2022 428,320 307,500 Granted 198,022 214,888 Issuance of dividend equivalents 9,485 — Vested (216,520 ) (97,500 ) Outstanding at March 31, 2023 419,307 424,888 The following table summarizes the activity of the awards under the Equity Incentive Plan for the three months ended March 31, 2022: Number of RSUs Number of Performance RSUs Outstanding at December 31, 2021 342,159 217,500 Granted 237,986 90,000 Issuance of dividend equivalents 3,902 — Outstanding at March 31, 2022 584,047 307,500 During the three months ended March 31, 2023 and March 31, 2022, the Company granted the following restricted stock units (“RSUs”) and Performance RSU Awards to directors, executive officers and certain non-executive Units Granted Fair Value Weighted Average Grant Fair Value Per Share RSUs Performance RSUs 2023 198,022 214,888 $ 3,729 $ 9.03 2022 237,986 90,000 5,753 17.54 The RSU Awards will vest in three equal, annual installments on each of the first three anniversaries of the grant date. The Performance RSU Awards will vest on the last day of the three-year measurement period. During the three months ended March 31, 2023 and March 31, 2022, the Company recognized net compensation expense for the RSUs and Performance RSU Awards as follows (in thousands): RSUs Performance RSUs Total 2023 $ 643 $ 381 $ 1,024 2022 599 305 904 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Summary of Significant Accounting Policies | Basis of Preparation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with Securities and Exchange Commission (“SEC”) rules and regulations and generally accepted accounting principles in the United States of America (“US GAAP”) and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (the “FASB”) established Topic 848, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, by issuing Accounting Standards Update (“ASU”) No. 2020-04 2020-04”). 2020-04 No. 2021-01, 2021-01”). 2021-01 2020-04 2021-01 No. 2022-06, 2022-06”). 2022-06 |
Lease Intangibles (Tables)
Lease Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Lease Intangibles and Value of Assumed Lease Obligations | Lease intangibles and the value of assumed lease obligations as of March 31, 2023 and December 31, 2022 were comprised of the following (in thousands): Lease Intangible Assets Lease Intangible Liabilities March 31, 2023 Above Market In Place Leases Leasing Total Below Below Market Lease Total Cost $ 18,793 $ 77,530 $ 33,698 $ 130,021 $ (15,091 ) $ (138 ) $ (15,229 ) Accumulated amortization (9,447 ) (50,218 ) (17,664 ) (77,329 ) 6,395 53 6,448 $ 9,346 $ 27,312 $ 16,034 $ 52,692 $ (8,696 ) $ (85 ) $ (8,781 ) Lease Intangible Assets Lease Intangible Liabilities December 31, 2022 Above Market In Place Leases Leasing Total Below Below Total Cost $ 18,793 $ 78,720 $ 34,123 $ 131,636 $ (15,682 ) $ (138 ) $ (15,820 ) Accumulated amortization (9,069 ) (49,772 ) (17,357 ) (76,198 ) 6,618 52 6,670 $ 9,724 $ 28,948 $ 16,766 $ 55,438 $ (9,064 ) $ (86 ) $ (9,150 ) |
Estimated Aggregate Amortization Expense for Lease Intangibles | The estimated aggregate amortization expense for lease intangibles for the next five years and in the aggregate are as follows (in thousands): 2023 $ 6,484 2024 6,660 2025 6,479 2026 6,490 2027 5,217 Thereafter 12,581 $ 43,911 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Indebtness | The following table summarizes the indebtedness as of March 31, 2023 and December 31, 2022 (dollars in thousands): Property March 31, 2023 December 31, 2022 Interest Rate as of March 31, 2023 (1) Maturity Unsecured Credit Facility (3)(5) $ 195,713 $ 200,500 SOFR +1.40 % (2) November 2025 Term Loan (4) 50,000 50,000 SOFR +1.35 % (2) September 2024 Term Loan (5) 25,000 — SOFR +2.10 % (2) January 2026 Mission City 46,646 46,859 3.78 % November 2027 Canyon Park (6) 39,490 39,673 4.30 % March 2027 Circle Point 39,280 39,440 4.49 % September 2028 190 Office Center (7) 38,711 38,894 4.79 % October 2025 SanTan 31,968 32,140 4.56 % March 2027 Intellicenter 31,141 31,297 4.65 % October 2025 The Quad 30,600 30,600 4.20 % September 2028 2525 McKinnon 27,000 27,000 4.24 % April 2027 FRP Collection 26,592 26,784 3.10 % September 2023 Greenwood Blvd 21,263 21,396 3.15 % December 2025 Cascade Station (8) 21,089 21,192 4.55 % May 2024 5090 N. 40 th 20,701 20,810 3.92 % January 2027 AmberGlen 20,000 20,000 3.69 % May 2027 Central Fairwinds 16,163 16,273 3.15 % June 2024 FRP Ingenuity Drive (9) 16,088 16,165 4.44 % December 2024 Carillon Point 14,668 14,773 3.10 % October 2023 Total Principal 712,113 693,796 Deferred financing costs, net (3,786 ) (3,887 ) Unamortized fair value adjustments 154 190 Total $ 708,481 $ 690,099 (1) All interest rates are fixed interest rates with the exception of the Unsecured Credit Facility and the term loans, as explained in footnotes 3, 4 and 5 below. (2) As of March 31, 2023, the daily-simple SOFR rate was 4.87%. (3) Borrowings under the Unsecured Credit Facility bear interest at a rate equal to the daily-simple SOFR rate plus a margin of between 135 to 235 basis points depending upon the Company’s consolidated leverage ratio. On February 9, 2023, the Company entered into a three-year interest rate swap for a notional amount of $140 million, effective March 8, 2023, effectively fixing the SOFR component of the borrowing rate for $140 million of the Unsecured Credit Facility. As of March 31, 2023, the Unsecured Credit Facility had $195.7 million drawn and a $4.2 million letter of credit to satisfy escrow requirements for a mortgage lender. The Unsecured Credit Facility matures in November 2025 and may be extended 12 (4) Borrowings under the $50 million term loan bear interest at a rate equal to the daily-simple SOFR rate plus a margin of between 135 to 225 basis points depending upon the Company’s consolidated leverage ratio. The SOFR component of the borrowing rate is effectively fixed by a $50 million interest rate swap. (5) On January 5, 2023, the Company entered into a second amendment to its amended and restated credit agreement dated November 16, 2021 (as amended, the “Amended and Restated Credit Agreement”) for the Unsecured Credit Facility and entered into a three-year (6) The mortgage loan anticipated repayment date (“ARD”) is March 1, 2027. The final scheduled maturity date can be extended up to 5 years beyond the ARD. If the loan is not paid off at ARD, the loan’s interest rate shall be adjusted to the greater of (i) the initial interest rate plus 200 basis points or (ii) the yield on the five year “on the run” treasury reported by Bloomberg market data service plus 450 basis points. (7) In the fourth quarter of 2022, a ‘cash-sweep period’ began for the 190 Office Center loan due to the non-renewal ‘cash-sweep period’ (8) In the first quarter of 2023, a ‘cash-sweep period’ (9) As of September 30, 2022, the Debt Service Coverage Ratio (“DSCR”) covenant for FRP Ingenuity Drive was not met, which triggered a ‘cash-sweep period’ that began in the fourth quarter of 2022. As of March 31, 2023, the DSCR was still not met. As of March 31, 2023 and December 31, 2022, total restricted cash for the property was $ 2.8 million and $2.6 million, respectively. |
Schedule of Principal Repayments of Mortgage Payable | The scheduled principal repayments of debt as of March 31, 2023 are as follows (in thousands): 2023 $ 46,084 2024 108,480 2025 287,710 2026 29,416 2027 176,303 Thereafter 64,120 $ 712,113 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of company's derivative financial instruments | The following table summarizes the Company’s derivative financial instruments as of March 31, 2023 and December 31, 2022 (in thousands): Notional Value Effective Date Maturity Date Fair Value Assets/(Liabilities) March 31, 2023 December 31, 2022 Interest Rate Swap $ 50,000 September 2019 September 2024 $ 2,241 $ 2,731 Interest Rate Swap 25,000 January 2023 January 2026 (94 ) — Interest Rate Swap 140,000 March 2023 November 2025 (1,358 ) — $ 215,000 $ 789 $ 2,731 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Operating Lease Lease Income | The Company recognized fixed and variable lease payments for operating leases for the three months ended March 31, 2023 and 2022 as follows (in thousands): Three Months Ended March 31, 2023 2022 Fixed payments $ 38,914 $ 38,320 Variable payments 6,743 6,440 $ 45,657 $ 44,760 |
Schedule of future minimum rental payments for operating leases | Future minimum lease payments to be received by the Company as of March 31, 2023 under non-cancellable 2023 $ 94,066 2024 118,908 2025 107,742 2026 98,598 2027 82,242 Thereafter 223,165 $ 724,721 |
Schedule of supplemental balance sheet information related to leases | Right-of-use March 31, 2023 December 31, 2022 Right operating $ 12,825 $ 12,935 Lease operating $ 8,738 $ 8,802 Right financing $ 9,991 $ 10,054 Lease financing $ 1,491 $ 1,475 |
Schedule future minimum lease payments to be paid | Future minimum lease payments to be paid by the Company as a lessee for operating and financing leases as of March 31, 2023 for the next five years and thereafter are as follows (in thousands): Operating Leases Financing 2023 $ 459 $ 5 2024 770 7 2025 770 8 2026 724 8 2027 587 8 Thereafter 26,563 6,938 Total future minimum lease payments 29,873 6,974 Discount (21,135 ) (5,483 ) Total $ 8,738 $ 1,491 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Federal Home Loan Banks [Abstract] | |
Summary of Activity of Awards under Equity Incentive Plan | The following table summarizes the activity of the awards under the Equity Incentive Plan for the three months ended March 31, 2023: Number of RSUs Number of Performance RSUs Outstanding at December 31, 2022 428,320 307,500 Granted 198,022 214,888 Issuance of dividend equivalents 9,485 — Vested (216,520 ) (97,500 ) Outstanding at March 31, 2023 419,307 424,888 The following table summarizes the activity of the awards under the Equity Incentive Plan for the three months ended March 31, 2022: Number of RSUs Number of Performance RSUs Outstanding at December 31, 2021 342,159 217,500 Granted 237,986 90,000 Issuance of dividend equivalents 3,902 — Outstanding at March 31, 2022 584,047 307,500 |
Summary of Restricted Stock Units ("RSUs") and Performance RSU | During the three months ended March 31, 2023 and March 31, 2022, the Company granted the following restricted stock units (“RSUs”) and Performance RSU Awards to directors, executive officers and certain non-executive Units Granted Fair Value Weighted Average Grant Fair Value Per Share RSUs Performance RSUs 2023 198,022 214,888 $ 3,729 $ 9.03 2022 237,986 90,000 5,753 17.54 |
Summary of Recognized Compensation Expense for RSUs and Performance RSU | During the three months ended March 31, 2023 and March 31, 2022, the Company recognized net compensation expense for the RSUs and Performance RSU Awards as follows (in thousands): RSUs Performance RSUs Total 2023 $ 643 $ 381 $ 1,024 2022 599 305 904 |
Organization and Description _2
Organization and Description of Business - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company formation date | Nov. 26, 2013 |
Operation commencement date | Apr. 21, 2014 |
Real Estate Investments - Addit
Real Estate Investments - Additional Information (Detail) - Lake Vista Pointe [Member] - USD ($) $ in Millions | 3 Months Ended | |
Jun. 15, 2022 | Mar. 31, 2022 | |
Real Estate [Line Items] | ||
Sales-type Lease, Selling Profit (Loss) | $ 21.7 | |
Proceeds from Sale of Real Estate | $ 43.8 |
Lease Intangibles - Schedule of
Lease Intangibles - Schedule of Lease Intangibles and Value of Assumed Lease Obligations (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | $ 130,021 | $ 131,636 |
Accumulated amortization, Lease Intangible Assets | (77,329) | (76,198) |
Total, Lease Intangible Assets | 52,692 | 55,438 |
Cost, Lease Intangible Liabilities | (15,229) | (15,820) |
Accumulated amortization, Lease Intangible Liabilities | 6,448 | 6,670 |
Total, Lease Intangible Liabilities | (8,781) | (9,150) |
Above Market Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 18,793 | 18,793 |
Accumulated amortization, Lease Intangible Assets | (9,447) | (9,069) |
Total, Lease Intangible Assets | 9,346 | 9,724 |
In Place Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 77,530 | 78,720 |
Accumulated amortization, Lease Intangible Assets | (50,218) | (49,772) |
Total, Lease Intangible Assets | 27,312 | 28,948 |
Leasing Commissions [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 33,698 | 34,123 |
Accumulated amortization, Lease Intangible Assets | (17,664) | (17,357) |
Total, Lease Intangible Assets | 16,034 | 16,766 |
Below Market Tenant Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Liabilities | (15,091) | (15,682) |
Accumulated amortization, Lease Intangible Liabilities | 6,395 | 6,618 |
Total, Lease Intangible Liabilities | (8,696) | (9,064) |
Below Market Ground Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Liabilities | (138) | (138) |
Accumulated amortization, Lease Intangible Liabilities | 53 | 52 |
Total, Lease Intangible Liabilities | $ (85) | $ (86) |
Lease Intangibles - Estimated A
Lease Intangibles - Estimated Aggregate Amortization Expense for Lease Intangibles (Detail) $ in Thousands | Mar. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 6,484 |
2024 | 6,660 |
2025 | 6,479 |
2026 | 6,490 |
2027 | 5,217 |
Thereafter | 12,581 |
Total | $ 43,911 |
Debt - Summary of Outstanding I
Debt - Summary of Outstanding Indebtedness (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Jan. 05, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Indebtedness | $ 712,113 | $ 693,796 | |
Deferred financing costs, net | (3,786) | (3,887) | |
Unamortized fair value adjustments | 154 | 190 | |
Total | 708,481 | 690,099 | |
Unsecured Debt [Member] | Term loan [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 50,000 | 50,000 | |
Interest Rate, terms | 1.35 | ||
Interest Rate, spread | 1.35% | ||
Maturity | 2024-09 | ||
Debt Instrument, Face Amount | $ 50,000 | ||
Unsecured Debt [Member] | Term loan [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 25,000 | 0 | |
Interest Rate, terms | 2.10 | ||
Interest Rate, spread | 2.10% | ||
Maturity | 2026-01 | ||
Debt Instrument, Face Amount | 25,000 | ||
Credit Facility [Member] | Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 195,713 | 200,500 | |
Interest Rate, terms | 1.40 | ||
Interest Rate, spread | 1.40% | ||
Maturity | 2025-11 | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Unsecured Debt [Member] | Term loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 50,000 | ||
Mission City [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 46,646 | 46,859 | |
Interest Rate | 3.78% | ||
Maturity | 2027-11 | ||
Canyon Park [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 39,490 | 39,673 | |
Interest Rate | 4.30% | ||
Maturity | 2027-03 | ||
Circle Point [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 39,280 | 39,440 | |
Interest Rate | 4.49% | ||
Maturity | 2028-09 | ||
190 Office Center [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 38,711 | 38,894 | |
Interest Rate | 4.79% | ||
Maturity | 2025-10 | ||
SanTan [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 31,968 | 32,140 | |
Interest Rate | 4.56% | ||
Maturity | 2027-03 | ||
Intellicenter [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 31,141 | 31,297 | |
Interest Rate | 4.65% | ||
Maturity | 2025-10 | ||
The Quad [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 30,600 | 30,600 | |
Interest Rate | 4.20% | ||
Maturity | 2028-09 | ||
2525 McKinnon [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 27,000 | 27,000 | |
Interest Rate | 4.24% | ||
Maturity | 2027-04 | ||
FRP Collection [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 26,592 | 26,784 | |
Interest Rate | 3.10% | ||
Maturity | 2023-09 | ||
Greenwood Blvd [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 21,263 | 21,396 | |
Interest Rate | 3.15% | ||
Maturity | 2025-12 | ||
Cascade Station [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 21,089 | 21,192 | |
Interest Rate | 4.55% | ||
Maturity | 2024-05 | ||
5090 N. 40th St [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 20,701 | 20,810 | |
Interest Rate | 3.92% | ||
Maturity | 2027-01 | ||
AmberGlen Property [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 20,000 | 20,000 | |
Interest Rate | 3.69% | ||
Maturity | 2027-05 | ||
Central Fairwinds [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 16,163 | 16,273 | |
Interest Rate | 3.15% | ||
Maturity | 2024-06 | ||
FRP Ingenuity Drive [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 16,088 | 16,165 | |
Interest Rate | 4.44% | ||
Maturity | 2024-12 | ||
Carillon Point [Member] | Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Indebtedness | $ 14,668 | $ 14,773 | |
Interest Rate | 3.10% | ||
Maturity | 2023-10 |
Debt - Summary of Outstanding_2
Debt - Summary of Outstanding Indebtedness (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2023 | Feb. 09, 2023 | Jan. 06, 2023 | Jan. 05, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Derivative, Notional Amount | $ 215,000 | ||||
Interest Rate Swap [Member] | |||||
Debt Instrument [Line Items] | |||||
Derivative, Notional Amount | $ 140,000 | $ 50,000 | $ 25,000 | ||
Unsecured Debt [Member] | Term loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 1.35% | ||||
Term loan | 50,000 | ||||
Unsecured Debt [Member] | Term loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 2.10% | ||||
Term loan | 25,000 | ||||
Unsecured Debt [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Term loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Term loan | 50,000 | ||||
Unsecured Debt [Member] | Margin [Member] | Term loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 210% | ||||
Unsecured Debt [Member] | Minimum [Member] | Term loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 135% | ||||
Unsecured Debt [Member] | Maximum [Member] | Term loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 225% | ||||
190 Office Center [Member] | |||||
Debt Instrument [Line Items] | |||||
Restricted Cash | $ 3,400 | $ 3,800 | |||
Canyon Park [Member] | Secured Debt [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 200% | ||||
Canyon Park [Member] | Secured Debt [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 450% | ||||
Cascade Station [Member] | |||||
Debt Instrument [Line Items] | |||||
Restricted Cash | $ 700 | ||||
FRP Ingenuity Drive [Member] | Debt Service Coverage Ratio [Member] | |||||
Debt Instrument [Line Items] | |||||
Restricted Cash | 2,800 | $ 2,600 | |||
Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility, outstanding | $ 140,000 | ||||
Credit Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility, outstanding | 4,200 | ||||
Credit Facility [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility, outstanding | $ 195,700 | ||||
Interest Rate, Description | 1.40% | ||||
Credit Facility [Member] | Unsecured Debt [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Term loan [Member] | |||||
Debt Instrument [Line Items] | |||||
One month SOFR rate | 4.87% | ||||
Credit Facility [Member] | Unsecured Debt [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility, authorized amount | 350,000 | ||||
Interest Rate, Description | 135% | ||||
Fixed charge coverage ratio | 1.50% | ||||
Credit Facility [Member] | Unsecured Debt [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility, authorized amount | $ 375,000 | ||||
Interest Rate, Description | 235% |
Debt - Schedule of Principal Re
Debt - Schedule of Principal Repayments of Mortgage Payable (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2023 | $ 46,084 | |
2024 | 108,480 | |
2025 | 287,710 | |
2026 | 29,416 | |
2027 | 176,303 | |
Thereafter | 64,120 | |
Total | $ 712,113 | $ 693,796 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Company's Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Feb. 09, 2023 | Jan. 06, 2023 | Jan. 05, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | |||||
Notional Value | $ 215,000 | ||||
Fair Value | 789 | $ 2,731 | |||
Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Value | $ 140,000 | $ 50,000 | $ 25,000 | ||
September 2024 [Member] | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Value | 50,000 | ||||
Fair Value, Assets | 2,241 | 2,731 | |||
January 2026 [Member] | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Value | 25,000 | ||||
Fair Value, Liability | (94) | 0 | |||
November 2025 [Member] | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Value | 140,000 | ||||
Fair Value, Liability | $ (1,358) | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 08, 2023 | Feb. 09, 2023 | Jan. 06, 2023 | Jan. 05, 2023 | Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Notional amount | $ 215,000 | ||||||
Interest rate swap gain (loss) reclassified to interest expense | 477 | $ (140) | |||||
Debt instrument carrying amount | 712,113 | $ 693,796 | |||||
Interest Rate Swap [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Notional amount | $ 140,000 | $ 50,000 | $ 25,000 | ||||
Fixed interest rate | 4.19% | 1.17% | 3.90% | ||||
Interest rate swap gain (loss) reclassified to interest expense | 500 | $ (100) | |||||
Fair Value, Inputs, Level 3 [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Mortgage loans payable, fair value | 425,600 | 420,700 | |||||
Debt instrument carrying amount | $ 441,400 | $ 443,300 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Administrative Services Agreement [Member] | SCRE II [Member] | Clarity Real Estate Ventures GP, Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Annual payment receivable for services | $ 0.1 | $ 0.1 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Lease cost | $ 0.2 | $ 0.3 |
Operating Lease, Weighted Average Remaining Lease Term | 50 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 6.20% | |
Finance Lease, Weighted Average Remaining Lease Term | 50 years | |
Finance Lease, Weighted Average Discount Rate, Percent | 6.20% | |
Financing Lease Cost | $ 0.1 | $ 0.1 |
Maximum [Member] | ||
Remaining lease terms | 65 years | |
Remaining lease terms, Financing leases | 65 years | |
Minimum [Member] | ||
Remaining lease terms | 1 year | |
Remaining lease terms, Financing leases | 1 year |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fixed payments | $ 38,914 | $ 38,320 |
Variable payments | 6,743 | 6,440 |
Operating Lease, Lease Income | $ 45,657 | $ 44,760 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating Income (Loss) | Operating Income (Loss) |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments under Non-cancellable Operating Leases (Detail) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 94,066 |
2024 | 118,908 |
2025 | 107,742 |
2026 | 98,598 |
2027 | 82,242 |
Thereafter | 223,165 |
Total future minimum lease payments to be received | $ 724,721 |
Leases - Schedule of Operatin_2
Leases - Schedule of Operating Right-of-Use Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Right-of-use asset - operating leases | $ 12,825 | $ 12,935 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Lease liability – operating leases | $ 8,738 | $ 8,802 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities |
Right-of-use asset – financing leases | $ 9,991 | $ 10,054 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Lease liability – financing leases | $ 1,491 | $ 1,475 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Leases - Schedule Future Minimu
Leases - Schedule Future Minimum Lease Payments To Be Paid (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
2023 | $ 459 | |
2024 | 770 | |
2025 | 770 | |
2026 | 724 | |
2027 | 587 | |
Thereafter | 26,563 | |
Total future minimum lease payments | 29,873 | |
Discount | (21,135) | |
Total | 8,738 | $ 8,802 |
2023 | 5 | |
2024 | 7 | |
2025 | 8 | |
2026 | 8 | |
2027 | 8 | |
Thereafter | 6,938 | |
Total future minimum lease payments | 6,974 | |
Discount | (5,483) | |
Total | $ 1,491 | $ 1,475 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Apr. 25, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | May 04, 2022 | Aug. 05, 2020 | Mar. 09, 2020 | |
Class of Stock [Line Items] | |||||||
Preferred stock, Dividend rate percentage | 6.625% | 6.625% | |||||
Maximum number of shares issued under Equity Incentive Plan | 3,763,580 | ||||||
Stock Repurchase Program, Authorized Amount | $ 50 | $ 100 | |||||
Stock Repurchased During Period, Shares | 0 | 0 | |||||
Schedule of Share Based Compensation Arrangement by Share Based Payment Award For Defined Performance | The payouts under the Performance RSU Awards are evaluated on a sliding scale as follows: TSR below the 30th percentile of the Peer Group would result in a 50% payout; TSR at the 50th percentile of the Peer Group would result in a 100% payout; and TSR at or above the 75th percentile of the Peer Group would result in a 150% payout. Payouts are mathematically interpolated between these stated percentile targets, subject to a 150% maximum. | ||||||
Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Series A Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, Dividend rate percentage | 6.625% | ||||||
Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Declared cash dividend distribution per share | $ 0.2 | ||||||
Dividends paid, declared date | Mar. 14, 2023 | ||||||
Dividends paid date | Apr. 25, 2023 | ||||||
Dividends paid, date of record | Apr. 11, 2023 | ||||||
Common Stock [Member] | Dividend Paid [Member] | |||||||
Class of Stock [Line Items] | |||||||
Cash distributions | $ 8 | ||||||
Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Declared cash dividend distribution per share | $ 0.4140625 | ||||||
Dividends paid, declared date | Mar. 14, 2023 | ||||||
Dividends paid date | Apr. 25, 2023 | ||||||
Dividends paid, date of record | Apr. 11, 2023 | ||||||
Preferred Stock [Member] | Dividend Paid [Member] | |||||||
Class of Stock [Line Items] | |||||||
Cash distributions | $ 1.9 | ||||||
Executive Officer [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based Payment Award, Award Vesting Period | 3 years |
Stockholder's Equity - Summary
Stockholder's Equity - Summary of Activity of Awards under Equity Incentive Plan (Detail) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restricted Stock Units (RSUs) [Member] | ||
Schedule Of Share Based Compensation Restricted Stock Units Award Activity [Line Items] | ||
Beginning balance | 428,320 | 342,159 |
Granted | 198,022 | 237,986 |
Issuance of dividend equivalents | 9,485 | 3,902 |
Vested | (216,520) | |
Ending balance | 419,307 | 584,047 |
Performance Restricted Stock Unit [Member] | ||
Schedule Of Share Based Compensation Restricted Stock Units Award Activity [Line Items] | ||
Beginning balance | 307,500 | 217,500 |
Granted | 214,888 | 90,000 |
Issuance of dividend equivalents | 0 | 0 |
Vested | (97,500) | |
Ending balance | 424,888 | 307,500 |
Performance Restricted Stock Unit including 2020 Performance Restricted Stock Unit Awards [Member] | ||
Schedule Of Share Based Compensation Restricted Stock Units Award Activity [Line Items] | ||
Granted | 214,888 |
Stockholder's Equity - Summar_2
Stockholder's Equity - Summary of Restricted Stock Units ("RSUs") and Performance RSU (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule Of Share Based Compensation Restricted Stock Units Award Activity Granted [Line Items] | ||
Fair Value | $ 3,729 | $ 5,753 |
Weighted Average Grant Fair Value Per Share | $ 9.03 | $ 17.54 |
Restricted Stock Units (RSUs) [Member] | ||
Schedule Of Share Based Compensation Restricted Stock Units Award Activity Granted [Line Items] | ||
Units Granted | 198,022 | 237,986 |
Performance Restricted Stock Unit [Member] | ||
Schedule Of Share Based Compensation Restricted Stock Units Award Activity Granted [Line Items] | ||
Units Granted | 214,888 | 90,000 |
Stockholder's Equity - Summar_3
Stockholder's Equity - Summary of Recognized Compensation Expense for RSUs and Performance RSU (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule Of Recognized Net Compensation Expense [Line Items] | ||
Share-based Payment Arrangement, Amount Capitalized | $ 1,024 | $ 904 |
Restricted Stock Units (RSUs) [Member] | ||
Schedule Of Recognized Net Compensation Expense [Line Items] | ||
Share-based Payment Arrangement, Amount Capitalized | 643 | 599 |
Performance Restricted Stock Unit [Member] | ||
Schedule Of Recognized Net Compensation Expense [Line Items] | ||
Share-based Payment Arrangement, Amount Capitalized | $ 381 | $ 305 |