Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 08, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Apollo Realty Income Solutions, Inc. | ||
Entity Central Index Key | 0001882850 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Securities Act File Number | 333-264456 | ||
Entity Tax Identification Number | 87-2557571 | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Address, Address Line One | 9 West 57th Street | ||
Entity Address, Address Line Two | 42nd Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10019 | ||
City Area Code | 212 | ||
Local Phone Number | 515-3200 | ||
Entity Public Float | $ 0 | ||
Auditor Firm ID | 34 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | New York, New York | ||
Common Stock - Class A-II Shares | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 14,170,753 | ||
Common Stock - Class A-I Shares | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 6,351,769 | ||
Common stock - Class F-I Shares | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 5,414,578 | ||
Common Stock - Class I Shares | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 201,505 | ||
Common Stock - Class E Shares | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 160,325 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Investments in real estate, net | $ 154,513 | ||
Investments in real estate debt, at fair value | 328,189 | ||
Cash and cash equivalents | 95,205 | $ 131,589 | |
Other assets | 31,764 | 5,000 | |
Total assets | [1] | 609,671 | 136,589 |
Liabilities and Equity | |||
Mortgage notes, net | 35,591 | ||
Other liabilities | 14,406 | ||
Total liabilities | [1] | 65,828 | 8,298 |
Commitments and contingencies (See Note 16) | |||
Redeemable non-controlling interests | 967 | ||
Equity | |||
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized at December 31, 2023 and December 31, 2022, and none issued and outstanding | |||
Common stock, $0.01 par value per share (See Note 14 - Equity) | 220 | 18 | |
Additional paid-in capital | 438,432 | 31,367 | |
Retained earnings (accumulated deficit) | 2,681 | (815) | |
Total stockholders' equity | 441,333 | 30,570 | |
Non-controlling interests attributable to the Operating Partnership | 101,543 | 97,721 | |
Total equity | 542,876 | 128,291 | |
Total liabilities and equity | 609,671 | 136,589 | |
Due to Affiliates | |||
Liabilities and Equity | |||
Due to affiliates | $ 15,831 | $ 8,298 | |
[1] Represents the consolidated assets and liabilities of ARIS Operating Partnership L.P., a Delaware limited partnership (the "Operating Partnership"). The Operating Partnership is a consolidated variable interest entity ("VIE"), of which the Company is the sole general partner and owns approximately 81 % and 27 % as of December 31, 2023 and December 31, 2022, respectively. See "Note 2 — Summary of Significant Accounting Policies " for additional information. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
VIE ownership percentage | 81% | 27% |
Consolidated Statement of Opera
Consolidated Statement of Operations (Unaudited) - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Revenues | ||
Rental revenue | $ 6,912 | |
Total revenues | 6,912 | |
Expenses | ||
Rental property operating | 834 | |
General and administrative | $ 1,678 | 5,380 |
Organization expenses | 1,487 | |
Management fee | 3,440 | |
Performance participation allocation | 562 | |
Depreciation and amortization | 2,544 | |
Total expenses | 3,165 | 12,760 |
Other income | ||
Income from investments in real estate debt | 17,490 | |
Other income | 114 | 6,241 |
Interest expense | (554) | |
Total other income | 114 | 23,177 |
Net income (loss) | (3,051) | 17,329 |
Net income (loss) attributable to non-controlling interests in ARIS OP | (2,236) | 4,570 |
Net income (loss) attributable to ARIS stockholders | $ (815) | $ 12,759 |
Net income (loss) per share of common stock, basic | $ (12.13) | $ 1.08 |
Net income (loss) per share of common stock, diluted | $ (12.13) | $ 1.08 |
Weighted-average shares of common stock outstanding, basic | 67,216 | 11,850,738 |
Weighted-average shares of common stock outstanding, diluted | 67,216 | 11,850,738 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Total Stockholders' Equity | Non-Controlling Interest |
Beginning Balance at Feb. 18, 2022 | $ 200 | $ 200 | $ 200 | |||
Beginning Balance, Shares at Feb. 18, 2022 | 10 | |||||
Common stock issued, value | 36,275 | $ 18 | 36,257 | 36,275 | ||
Common stock issued, shares | 1,814 | |||||
Offering costs | (5,133) | (5,090) | (5,090) | $ (43) | ||
Net income (loss) | (3,051) | $ (815) | (815) | (2,236) | ||
Contributions from non-controlling interests | 100,000 | 100,000 | ||||
Ending Balance at Dec. 31, 2022 | 128,291 | $ 18 | 31,367 | (815) | 30,570 | 97,721 |
Ending Balance, Shares at Dec. 31, 2022 | 1,824 | |||||
Common stock issued, value | 407,608 | $ 202 | 407,406 | 407,608 | ||
Common stock issued, shares | 20,133 | |||||
Offering costs | (1,323) | (1,323) | (1,323) | |||
Distribution reinvestments, value | 3,552 | 1,058 | 1,058 | 2,494 | ||
Distribution reinvestments, shares | 52 | |||||
Amortization of restricted stock grants | 75 | 75 | 75 | |||
Share class transfer, shares | (59) | |||||
Repurchase of common stock | (151) | (151) | (151) | |||
Repurchase of common stock, shares | (7) | |||||
Net income (loss) | 17,329 | 12,760 | 12,760 | 4,569 | ||
Contributions from non-controlling interests | 932 | 932 | ||||
Transfer to redeemable non-controlling interests | (967) | 967 | ||||
Distributions to non-controlling interest | (3,206) | (3,206) | ||||
Distributions declared on common stock | (9,264) | (9,264) | (9,264) | |||
Ending Balance at Dec. 31, 2023 | $ 542,876 | $ 220 | $ 438,432 | $ 2,681 | $ 441,333 | $ 101,543 |
Ending Balance, Shares at Dec. 31, 2023 | 21,943 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) (Unaudited) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Allocated to redeemable non-controlling interest | $ 13 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Cash flows from operating activities | ||
Net income | $ (3,051) | $ 17,329 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Management fee | 3,440 | |
Performance participation allocation | 562 | |
Depreciation and amortization | 2,544 | |
Straight line rent amortization | (1,425) | |
Above- and below- market lease amortization, net | (209) | |
Amortization of discount/premium | (210) | |
Amortization of deferred financing costs | 161 | |
Amortization of restricted stock awards | 75 | |
Unrealized gain on fair value of investments in real estate debt and real estate related securities | (207) | |
Realized gain on sale of real-estate related securities | (3) | |
Changes in assets and liabilities: | ||
Other assets | (3,544) | |
Due to affiliates | 3,165 | 5,198 |
Other liabilities | 1,876 | |
Net cash provided by operating activities | 114 | 25,587 |
Cash flows from investing activities: | ||
Acquisitions of real estate | (5,000) | (166,332) |
Capital improvements to real estate | (621) | |
Origination and acquisition of real estate debt | (262,980) | |
Purchase of real estate-related securities | (25,419) | |
Add-on fundings of commercial mortgage loans | (39,488) | |
Repayments from real-estate related securities | 117 | |
Net cash used in investing activities | (5,000) | (494,723) |
Cash flows from financing activities: | ||
Borrowings from mortgage notes | 36,000 | |
Payment of deferred financing costs | (1,627) | |
Proceeds from issuance of common stock | 36,275 | 405,566 |
Contributions from non-controlling interests | 100,000 | |
Distributions paid | (7,018) | |
Repurchase of common stock | (151) | |
Offering costs paid | (18) | |
Net cash provided by financing activities | 136,275 | 432,752 |
Net change in cash and cash equivalents | 131,389 | (36,384) |
Cash and cash equivalents, beginning of period | 200 | 131,589 |
Cash and cash equivalents, end of period | 131,589 | 95,205 |
Non-cash investing and financing activities | ||
Accrued offering costs due to affiliate | $ 5,133 | 1,305 |
Distribution reinvestments | 3,552 | |
Distributions accrued and not paid | 1,900 | |
Issuance of Class E shares for payment of management fee | 2,042 | |
Transfer to redeemable non-controlling interests | 779 | |
Redeemable non-controlling interests issuance as Class E units for payment of management fee | 176 | |
Allocation to redeemable non-controlling interests | $ 12 |
Organization and Business Purpo
Organization and Business Purpose | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Purpose | Note 1 — Organization and Business Purpose Apollo Realty Income Solutions, Inc. (the "Company") was formed on September 8, 2021 as a Maryland corporation. The Company is the sole general partner of ARIS Operating Partnership L.P., a Delaware limited partnership (the "Operating Partnership"). ARIS Special Limited Partner, LLC (the "Special Limited Partner"), a subsidiary of Apollo Global Management, Inc. (together with its subsidiaries, "Apollo"), owns a special limited partner interest in the Operating Partnership. The Company was organized to invest primarily in a portfolio of diversified income-oriented commercial real estate in the United States. Substantially all of the Company's business is conducted through the Operating Partnership. The Company commenced its operations on December 22, 2022 and the Company and the Operating Partnership are both externally managed by ARIS Management, LLC (the "Adviser"), an indirect subsidiary of Apollo. The Company has registered with the Securities and Exchange Commission (the "SEC") an offering of up to $ 5.0 billion in shares of common stock, consisting of up to $ 4.0 billion in shares in its primary offering and up to $ 1.0 billion in shares pursuant to its distribution reinvestment plan (the "Offering"). In the Offering, the Company intends to sell any combination of nine classes of shares of its common stock, Class S shares, Class D shares, Class I shares, Class F-S shares, Class F-D shares, Class F-I shares, Class A-I shares, Class A-II shares, and Class A-III shares with a dollar value up to the maximum offering amount. The share classes have different upfront selling commissions, ongoing stockholder servicing fees, management fees, and performance participation allocations. The purchase price per share for each class of common stock will vary and will generally equal the Company's prior month's net asset value ("NAV") per share, as calculated monthly, plus applicable upfront selling commissions and dealer manager fees. The Company also may issue Class E shares to certain of Apollo's affiliates and employees in one or more private placements; however, Class E shares are not being offered to the public pursuant to the Offering. The Company intends to elect to be taxed as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986, as amended (the "Code"), commencing with the taxable year ended December 31, 2023. To maintain its tax qualification as a REIT, the Company will be required to distribute at least 90 % of its taxable income, excluding net capital gains, to stockholders and meet certain other asset, income, and ownership tests. As of December 31, 2023 , the Company owned three properties, had twelve investments in commercial real estate debt, and held fourteen real estate-related securities. The Company currently operates in two reportable segments: Real Estate and Real Estate Debt. See " Note 17 — Segment Reporting " for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include the accounts of the Company and the Operating Partnership. All intercompany balances and transactions are eliminated in consolidation. Principles of Consolidation The Company consolidates all entities that it controls through either majority ownership or voting rights. In addition, the Company consolidates all variable interest entities ("VIEs") of which it is considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as the primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE's economic performance, and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. The Operating Partnership is considered to be a VIE. The Company consolidates this entity as it has the ability to direct the most significant activities of the entities such as purchases, dispositions, financings, budgets, and overall operating plans. The accompanying consolidated financial statements include the accounts of the Company and the Company's subsidiary partnerships. Third party unitholders of Operating Partnership's share of the assets, liabilities and operations of the Operating Partnership is included in non-controlling interest as equity of the Company. The non-controlling interest is generally computed based on third party unit-holders ownership percentage. Non-controlling interests in the Operating Partnership represent Operating Partnership units that are held by third parties, including the Adviser, and Operating Partnership units issued to the Adviser under an advisory agreement by and among the Company, the Operating Partnership and the Adviser (as amended, restated or otherwise modified from time to time, the "Advisory Agreement"). Operating Partnership units may be redeemed for cash, or at the Company's option, for shares of common stock of the Company on a one-for-one basis, unless those units are held by the Adviser or Special Limited Partner, in which case such Operating Partnership units shall be redeemed for shares of common stock of the Company or cash, at the holder's election. Since the number of shares of common stock outstanding is equal to the number of Operating Partnership units owned by the Company, the redemption value of each common unit of the Operating Partnership is equal to the market value of each share of common stock and distributions paid to each unitholder is equivalent to dividends paid to common stockholders, per respective share class. Cash and Cash Equivalents Cash and cash equivalents represent cash held in banks, cash on hand, and liquid investments with original maturities of three months or less. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. As of December 31, 2023, the Company held $ 91.3 million of cash equivalents and did no t hold any cash equivalents as of December 31, 2022 . As of December 31, 2023 and 2022 there was no restricted cash on hand. Fair Value Measurements Under normal market conditions, the fair value of an investment is the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). The Company uses a hierarchical framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment, and the state of the marketplace, including the existence and transparency of transactions between market participants. Investments with readily available actively quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following levels within the fair value hierarchy: Level 1 — quoted prices are available in active markets for identical investments as of the measurement date. The Company does not adjust the quoted price for these investments. Level 2 — quoted prices are available in markets that are not active or model inputs are based on inputs that are either directly or indirectly observable as of the measurement date. Level 3 — pricing inputs are unobservable and include instances where there is minimal, if any, market activity for the investment. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed. The Company has elected the fair value option ("FVO") for investments in real estate debt as the Company believes fair value provides a more accurate depiction of these assets value. As of December 31, 2023, the Company's investments in real estate debt consisted of commercial mortgage loans secured by real estate assets and real estate-related securities. The Company generally determines the fair value of its investments in real estate debt by utilizing third-party pricing service providers whenever available. The Company's investments in commercial mortgage loans are unlikely to have readily available market quotations. In such cases, the Company will generally determine the initial value based on the acquisition price of such investment if acquired by the Company or the par value of such investment if originated by the Company. Following the initial measurement, the Company will determine fair value by utilizing or reviewing certain of the following (i) market yield data, (ii) discounted cash flow modeling, (iii) collateral asset performance, (iv) local or macro real estate performance, (v) capital market conditions, (vi) debt yield or loan-to-value ratios, and (vii) borrower financial condition and performance. The inputs used in determining the fair value of the Company's investments in commercial mortgage loans are considered Level 3. The fair value of real estate-related securities may be determined by using third-party pricing service providers or broker-dealer quotes, reported trades or valuation estimates from their internal pricing models to determine the reported price. The inputs used in determining the fair value of the Company's investments in real estate-related securities are considered Level 2. The following table details the Company's assets measured at fair value on a recurring basis ($ in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Investments in real estate debt $ — $ 25,321 $ 302,868 $ 328,189 The following table details the Company's assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): Investments in Real Estate Debt Total Balance as of December 31, 2022 $ — $ — Originations, acquisitions, and add on fundings 302,668 302,668 Included in net income: Unrealized gain from investments in real estate debt 200 200 Balance as of December 31, 2023 $ 302,868 $ 302,868 The following table contains the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy ($ in thousands): December 31, 2023 Fair Value Valuation Technique Unobservable Inputs Rate Range Impact to Valuation from an Increase in Input Assets: Investments in real estate debt $ 302,868 Discounted cash flow Discount rate 8.41 %- 10.00 % Decrease As of December 31, 2022 , the Company did no t hold any assets at fair value. Investment Property and Lease Intangibles Acquisitions of properties are accounted for utilizing the acquisition method and, accordingly, the operations of acquired properties will be included in the Company's results of operations from their respective dates of acquisition. The Company will utilize a report from an independent appraiser to record the purchase of identifiable assets acquired and liabilities assumed such as land, buildings and improvements, equipment and identifiable intangible assets and liabilities such as amounts related to in-place leases, acquired above- and below-market leases, tenant relationships, asset retirement obligations and mortgage loans payable. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place leases that may have a customer relationship intangible value, including (but not limited to) the nature and extent of the existing relationship with the tenants, the tenants' credit quality and expectations of lease renewals. The estimated fair value of acquired in-place leases is the costs the Company would have incurred to lease the properties to the occupancy level of the properties at the date of acquisition. Such estimates include the fair value of leasing commissions, legal costs, and other direct costs that would be incurred to lease the properties to such occupancy levels. Additionally, the Company evaluates the time period over which such occupancy levels would be achieved. Such evaluation includes an estimate of the net market-based rental revenues and net operating costs (primarily consisting of real estate taxes, insurance and utilities) that would be incurred during the lease-up period. Acquired in-place leases as of the date of acquisition are amortized over the remaining lease terms. The amortization of in-place lease intangibles is recorded in depreciation and amortization expense on the Company's consolidated statements of operations. Acquired above- and below-market lease values are recorded based on the present value of the difference between the contractual amounts to be paid pursuant to the in-place leases and the Company's estimate of fair market value lease rates for the corresponding in-place leases. The capitalized above- and below-market lease values are amortized as adjustments to rental revenue over the remaining terms of the respective leases, which include periods covered by bargain renewal options, if applicable. Should a tenant terminate its lease, the unamortized portion of the in-place lease value will be charged to amortization expense and the unamortized portion of out-of-market lease value will be charged to rental revenue. The Company's investments in real estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Description Depreciable Life Buildings 39 - 50 years Buildings and land improvements 10 - 15 years Lease intangibles and leasehold improvements Lease term Significant improvements to properties are capitalized, whereas, repairs and maintenance expenses at the Company's properties are expensed as incurred and included in real estate operating expense on the Company's consolidated statements of operations. When an asset is sold, the cost and related accumulated depreciation are removed from the accounts with the resulting gain or loss reflected in the Company's results of operations for the period. Real estate assets are evaluated for impairment on a quarterly basis. The Company considers the following factors when performing its impairment analysis: (1) management, having the authority to approve the action, commits to a plan to sell the asset; (2) significant negative industry and economic outlook or trends; (3) expected material costs necessary to extend the life or operate the real estate asset; and (4) its ability to hold and dispose of the real estate asset in the ordinary course of business. A real estate asset is considered impaired when the sum of estimated future undiscounted cash flows to be generated by the real estate asset over the estimated remaining holding period is less than the carrying value of such real estate asset. An impairment charge is recorded equal to the excess of the carrying value of the real estate asset over the fair value. When determining the fair value of a real estate asset, the Company makes certain assumptions including, but not limited to, consideration of projected operating cash flows, comparable selling prices and projected cash flows from the eventual disposition of the real estate asset based upon its estimate of a capitalization rate and discount rate. As of December 31, 2023 , the Company had not recorded any impairments on its investments in real estate. Investments in Real Estate Debt The Company's investments in real estate debt consist of commercial mortgage loans secured by real estate and real estate-related securities. The real estate-related securities are classified as available-for-sale securities. The Company has elected the FVO for its commercial mortgage loans secured by real estate and its real estate-related securities. As such, in both instances, the unrealized gain or loss associated with holding these investments at fair value are recorded as a component of income from investments in real estate debt on the Company's consolidated statement of operations. For the year ended December 31, 2023, the Company recorded $ 0.2 million of unrealized gain on its investments in real estate debt. Interest income from the Company's investments in real estate debt is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of premiums and discounts associated with these investments is deferred and recorded over the term of the investment as an adjustment to yield. Upfront costs and fees related to items for which the FVO is elected are recognized in earnings as incurred and are not deferred. Interest income, upfront costs and fees are recorded as components of income from investments in real estate debt on the Company's consolidated statements of operations. Commercial mortgage loans that are significantly past due may be placed on non-accrual status if the Company determines it is probable that it will not collect all payments which are contractually due. When a loan is placed on non-accrual status, interest is only recorded as interest income when it is received. A loan may be placed back on accrual status if the Company determines it is probable that it will collect all payments which are contractually due. Deferred Financing Costs Costs incurred in connection with financings are capitalized and amortized over the respective financing terms and are reflected on the accompanying consolidated statement of operations as a component of interest expense. Revenue Recognition The Company's rental revenue consists of base rent and tenant reimbursement income arising from tenant leases at the Company's properties under operating leases. Base rent is recognized on a straight-line basis over the life of the lease, including any rent step ups or abatements. The Company accounts for base rental revenue (lease component) and common area expense reimbursement (non-lease component) as one lease component under Accounting Standards Codification 842, "Leases". Additionally, the Company also includes the non-components of its leases, such as the reimbursement of utilities, insurance and real estate taxes, within this lease component. The Company evaluates the collectability of receivables related to rental revenue on an individual lease basis. Management exercises judgment in assessing collectability and considers the length of time a receivable has been outstanding, tenant creditworthiness, payment history, available information about the financial condition of the tenant, and current economic trends, among other factors. Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue. However any future cash receipt on leases that are deemed uncollectible will be recorded as income on a cash basis. Income Taxes The Company intends to make an election to be taxed as a REIT under Sections 856 through 860 of the Code commencing with its taxable year ended December 31, 2023. If the Company qualifies for taxation as a REIT, the Company generally will not be subject to federal corporate income tax to the extent it distributes its taxable income to its stockholders. REITs are subject to a number of other organizational and operational requirements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and U.S. federal income and excise taxes on its undistributed income. Earnings per Share of Common Stock Basic earnings per share of common stock is computed by dividing net income or loss for the period by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income or loss for the period by the weighted average number of shares of common stock and common stock equivalents outstanding (unless their effect is anti-dilutive) for the period. As there were no common stock equivalents outstanding during the year ended December 31, 2023, and the period from February 18, 2022 (date of initial capitalization) through December 31, 2022 , the calculation of basic and diluted earnings per share are equal. Organization and Offering Expenses The Adviser has agreed that it and/or its affiliates will advance organization and offering expenses on behalf of the Company (including legal, accounting, and other expenses attributable to the Company's organization, but excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) through December 22, 2023, the first anniversary of the escrow break for the Offering. The Company will reimburse the Adviser and its affiliates for all such advanced expenses ratably over a 60-month period beginning on December 22, 2024. Organization costs are expensed as incurred and recorded as expenses on the Company's consolidated statement of operations and offering costs are charged to equity as such amounts are incurred. As of December 31, 2023, the Adviser and its affiliates had incurred organization and offering costs on the Company's behalf of $ 7.9 million , consisting of offering costs of $ 6.4 million and organization costs of $ 1.5 million . As of December 31, 2022, the Adviser and its affiliates had incurred $ 6.6 million of organization and offering costs on the Company's behalf, consisting of $ 5.1 million of offering costs and $ 1.5 million of organization costs. Such costs became the Company's liability on December 22, 2022, the date on which the proceeds from the Offering were released from escrow. These organization and offering costs are recorded as a component of due to affiliates on the Company's consolidated balance sheet. Apollo Global Securities, LLC (the "Dealer Manager"), a registered broker-dealer affiliated with the Adviser, serves as the dealer manager for the Offering. The Dealer Manager is entitled to receive selling commissions and dealer manager fees based on the transaction price of each applicable class of shares sold in the primary offering. The Dealer Manager is also entitled to receive a stockholder servicing fee based on the aggregate NAV of the Company's outstanding Class S shares, Class D shares, Class F-S shares and Class F-D shares. The following table details the selling commissions, dealer manager fees, and stockholder servicing fees for each applicable share class as of December 31, 2023: Class S Shares Class D Shares Class I Shares Class F-S Shares Class F-D Shares Class F-I Shares Class A-I Shares Class A-II Shares Class A-III Shares Selling commissions and dealer manager fees (% of transaction price) up to 3.5 % up to 1.5 % — up to 3.5 % up to 1.5 % — — — — Stockholder servicing fee (% of NAV) 0.85 % 0.25 % — 0.85 % 0.25 % — — — — For Class S shares and Class F-S shares sold in the primary offering, investors will pay upfront selling commissions of up to 3 % and dealer manager fees of up to 0.5 % of the transaction price; however, such amounts may vary at certain participating broker-dealers, provided that the sum will not exceed 3.5 % of the transaction price. For Class D shares and Class F-D shares sold in the primary offering, investors will pay upfront selling commissions of up to 1.5 % of the transaction price. The Dealer Manager, as the dealer manager for the Offering, is entitled to receive stockholder servicing fees of 0.85 % per annum of the aggregate NAV for Class S shares and Class F-S shares. For Class D shares and Class F-D shares, a charge of 0.25 % per annum of the aggregate NAV will be charged for stockholder servicing fees. The Dealer Manager has entered into agreements with selected dealers that agree to distribute the Company's shares in the Offering, which will provide, among other things, for the reallowance of the full amount of the selling commissions and stockholder servicing fees to such selected dealers. The Company will cease paying the stockholder servicing fee with respect to any Class S share, Class D share, Class F-S share, or Class F-D share held in a stockholder's account at the end of the month in which the total selling commissions, dealer manager fees and stockholder servicing fees paid with respect to such shares would exceed, in the aggregate, 8.75 % of the gross proceeds from the sale of such share. There will not be a stockholder servicing fee, upfront selling commission or dealer manager fee with respect to Class I shares, Class F-I shares, Class A-I shares, Class A-II shares, and Class A-III shares. The Company will accrue the cost of the stockholder servicing fee as an offering cost at the time of each Class S share, Class D share, Class F-S share, and Class F-D share is sold during the primary offering. As of December 31, 2023 , the Company had not sold any of those share classes and as such has not accrued for any stockholder servicing fees. Share Based Payments The Company accounts for share-based compensation to its independent directors, to the Adviser and to employees of the Adviser and its affiliates using the fair value-based methodology prescribed by GAAP. Compensation cost related to restricted common stock issued is measured at its fair value at the grant date and amortized into expense over the vesting period on a straight-line basis. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provide new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods with fiscal years beginning after December 15, 2024. ASU 2023-07 is to be adopted retrospectively to all prior periods presented. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09 "Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company is currently assessing the impact of this guidance, however, it does not expect a material impact to its consolidated financial statements. |
Investments in Real Estate
Investments in Real Estate | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate Investments, Net [Abstract] | |
Investments in Real Estate | Note 3 — Investments in Real Estate Investments in real estate, net consisted of the following ($ in thousands): December 31, 2023 Building and building improvements $ 132,792 Land and land improvements 22,707 Tenant improvements 621 Total 156,120 Accumulated depreciation ( 1,607 ) Investment in real estate, net $ 154,513 During the year ended December 31, 2023, the Company acquired the following properties, that qualified as asset acquisitions ($ in thousands): Property Type Acquisition Date Purchase Price Rickenbacker Industrial January 2023 $ 49,214 16000 Pines Retail August 2023 56,715 Hallmark Industrial October 2023 65,403 Total acquisitions $ 171,332 As of December 31, 2022 , the Company had no t acquired any properties. The following table summarizes the purchase price allocation for the properties acquired during the year ended December 31, 2023 ($ in thousands): Amount Building and building improvements $ 132,792 Land and land improvements 22,707 In-place lease intangibles 26,363 Above-market lease intangibles 325 Below-market lease intangibles ( 10,855 ) Total purchase price $ 171,332 Intangible assets are recorded in other assets on the accompanying consolidated balance sheet. The intangibles of the properties are amortized over the remaining lease terms that they were derived from. As a result, the Company's intangibles have a weighted average amortization period of approximately 13 years . |
Investments in Real Estate Debt
Investments in Real Estate Debt | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate Investments, Net [Abstract] | |
Investments in Real Estate Debt | Note 4 — Investments in Real Estate Debt The following table details the Company's investments in real estate debt as of December 31, 2023 ($ in thousands): December 31, 2023 Type of Investment in Real Estate Debt Number of Positions Weighted Average Coupon (1) Weighted Average Maturity Date (2) Face Amount Cost Basis Fair Value Commercial real estate loan 11 9.1 % September 2027 $ 252,868 $ 252,668 $ 252,868 Mezzanine loan 1 10.0 % September 2026 50,000 50,000 50,000 Real estate-related securities 14 7.0 % May 2037 25,811 25,314 25,321 Total Investments in real estate debt 26 9.3 % April 2028 $ 328,679 $ 327,983 $ 328,189 ____________ (1) Based on applicable benchmark rates as of December 31, 2023. (2) Weighted average maturity date is based on fully extended maturity. The Company did not hold any investments in real estate debt as of December 31, 2022. All of the Company's real estate-related securities have maturity dates greater t han ten years fro m December 31, 2023. The table below details the type of properties securing the loans in the Company's portfolio as of December 31, 2023 ($ in thousands): December 31, 2023 Property Type Fair Value % of Portfolio Multifamily $ 110,670 36.6 % Industrial 91,292 30.1 % Hotel 48,795 16.1 % Data Center 40,651 13.4 % Self-Storage 8,884 2.9 % Other (1) 2,576 0.9 % Total $ 302,868 100.0 % ____________ (1) Other property types represents productions studio. The table below details the geographic distribution of the properties securing the loans in the Company's portfolio as of December 31, 2023 ($ in thousands): December 31, 2023 Geographic Location Fair Value % of Portfolio Northeast $ 169,829 56.1 % Mid-Atlantic 44,166 14.6 % West 32,841 10.8 % Southeast 27,582 9.1 % Southwest 18,400 6.1 % Midwest 10,050 3.3 % Total $ 302,868 100.0 % The total income from investments in real estate debt disclosed on the Company's consolidated statement of operations relates to interest income, upfront fees recognized, and unrealized gain on these investments in real estate debt. For the year ended December 31, 2023, the Company recorded $ 0.2 million of unrealized gains on its investments in real estate debt. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets [Abstract] | |
Other Assets | Note 5 — Other Assets The following table details the components of the Company's other assets at the dates indicated ($ in thousands): December 31, 2023 December 31, 2022 Real estate intangibles, net $ 25,734 $ — Deposits — 5,000 Straight-line rent receivable 1,425 — Interest receivable 1,727 — Other 1,821 — Deferred financing costs, net 1,057 — Total $ 31,764 $ 5,000 |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Note 6 — Intangibles The Company did no t have any intangible assets as of December 31, 2022 . The gross carrying amount and accumulated amortization of the Company's intangible assets consisted of the following as of December 31, 2023 ($ in thousands): December 31, 2023 Intangible assets: In-place lease intangibles $ 26,363 Above-market lease intangibles 325 Total intangible assets 26,688 Accumulated amortization: In-place lease amortization ( 937 ) Above-market lease amortization ( 17 ) Total real estate intangible assets, net $ 25,734 Intangible liabilities Below-market lease intangibles $ ( 10,855 ) Total intangible liabilities ( 10,855 ) Accumulated amortization: Below-market lease amortization 226 Total real estate intangible liabilities, net $ ( 10,629 ) The estimated future amortization on the Company's intangibles for each of the next five years and thereafter as of December 31, 2023, is as follows ($ in thousands): In-Place Lease Intangibles Above-Market Intangibles Below-Market Intangibles 2024 2,155 29 ( 775 ) 2025 2,126 29 ( 775 ) 2026 2,126 29 ( 775 ) 2027 2,126 29 ( 775 ) 2028 2,093 29 ( 756 ) Thereafter 14,800 163 ( 6,773 ) $ 25,426 $ 308 $ ( 10,629 ) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 7 — Leases Lessor The Company's rental revenue consists of rent earned from the operating leases at the Company's industrial and retail properties. The leases at the Company's industrial and retail properties generally includes a fixed base rent, subject to annual step-ups, and a variable component. The variable component of the Company's operating leases primarily consists of the reimbursement of operating expenses such as real estate taxes, insurance, and common area maintenance costs. The Company had no leases as of December 31, 2022. The following table summarizes the fixed and variable components of the Company's operating lease for the year ended December 31, 2023 ($ in thousands): Year Ended December 31, 2023 Fixed lease payments $ 5,879 Variable lease payments 824 Lease Revenue $ 6,703 Above- and below-market lease amortization, net 209 Rental Revenue $ 6,912 The following table presents the undiscounted future minimum rents the Company expects to receive for its industrial and retail properties as of December 31, 2023 ($ in thousands): Year Future Minimum Rents 2024 $ 10,813 2025 10,952 2026 11,214 2027 11,531 2028 11,802 Thereafter 84,314 Total $ 140,626 |
Mortgage Notes
Mortgage Notes | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Mortgage Notes | Note 8 — Mortgage Notes During the year ended December 31, 2023 the Company obtained a $ 36.0 million, non-amortizing, mortgage loan secured by one of its real estate equity properties. The loan has a fixed interest rate of 6.05 % and a five year term with a maturity date in November 2028 . There have been no repayments on this mortgage loan during the year ended December 31, 2023. The mortgage is held net of deferred financing cost of $ 0.5 million, of which $ 15 thousand has been amortized as of December 31, 2023. The Company is in compliance with all covenants as of December 31, 2023. |
Secured Financings on Investmen
Secured Financings on Investments in Real Estate Debt | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Repurchase Agreements [Abstract] | |
Secured Financings on Investments in Real Estate Debt | Note 9 — Secured Financings on Investments in Real Estate Debt During October 2023, certain indirect subsidiaries (the "Sellers") of the Company entered into a Master Repurchase Agreement (the "JPM Repurchase Agreement") with JPMorgan Chase Bank, National Association (the "Buyer"). The JPM Repurchase Agreement provides for a maximum aggregate purchase price of $ 250.0 million and has a three-year term plus two one-year extension options (the "JPM Repurchase Facility"). Subject to the terms and conditions thereof, the JPM Repurchase Agreement provides for the purchase, sale and repurchase of senior mortgage loans and participation interests in performing senior mortgage loans satisfying certain conditions set forth in the JPM Repurchase Agreement. The Operating Partnership has agreed to provide a limited guarantee of the obligations of the Sellers under the JPM Repurchase Agreement. As of December 31, 2023, there are no outstanding borrowings under the JPM Repurchase Agreement and the Company is in compliance with all associated covenants. The Company incurred $ 1.2 million in costs associated with the JPM Repurchase Facility that are recorded in other assets in the consolidated balance sheet net of $ 0.2 million of amortization. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities [Abstract] | |
Other Liabilities | Note 10 — Other Liabilities The following table details the components of the Company's other liabilities at the date indicated ($ in thousands): December 31, 2023 Below market lease intangibles, net $ 10,629 Distribution payable 1,900 Accounts payable and accrued expenses 1,816 Real estate taxes payable 61 Total $ 14,406 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11 — Related Party Transactions Pursuant to the Advisory Agreement the Adviser is responsible for sourcing, evaluating and monitoring the Company's investment opportunities and making decisions related to the acquisition, management, financing and disposition of the Company's assets, in accordance with the Company's investment objectives, guidelines, policies and limitations, subject to oversight by the Company's board of directors. The Special Limited Partner holds a performance participation interest in the Operating Partnership that entitles it to receive an allocation from the Operating Partnership on Class S shares, Class D shares, and Class I shares equal to 12.5 % of the annual Total Return, subject to a 5 % annual Hurdle Amount and a High Water Mark, with a Catch-Up (each term as defined in the limited partnership agreement of the Operating Partnership, by and among the Company, as general partner, the Special Limited Partner and the limited partners party thereto from time to time (as amended, restated or otherwise modified from time to time, the "Limited Partnership Agreement")). On Class F-S shares, Class F-D shares, and Class F-I shares, the Special Limited Partner is entitled to receive an allocation equal to 9.0 % of the annual Total Return, subject to a 5 % annual Hurdle Amount and a High Water Mark, with a Catch-Up (each term as defined in the Limited Partnership Agreement). Such allocation will accrue monthly and be paid annually. There will not be a performance participation interest with respect to Class A-I shares, Class A-II shares, Class A-III shares, and Class E shares. The performance participation interest will be paid, at the Adviser's election, in cash, Class E shares, Class E units or any combination thereof. During the year ended December 31, 2023, the Company accrued $ 0.6 million of performance participation allocation. The Company may retain certain of the Adviser's affiliates for necessary services relating to the Company's investments or its operations, including but not limited to any accounting and audit services (including valuation support services), account management services, administrative services, data management services, information technology services, finance/budget services, legal services, operational services, risk management services, tax services, treasury services, construction, special servicing, leasing, development, coordinating closing and post-closing procedures, property oversight, statutory services, and other property management services, as well as services related to mortgage servicing, group purchasing, healthcare, consulting/brokerage, capital markets/credit origination, broker-dealer services, underwriting, placing, syndicating, structuring, arranging, debt advisory services and other similar services, loan servicing, property, title and/or other types of insurance, title agency services, management consulting and other similar operational matters. Any fees paid to the Adviser's affiliates for any such services will not reduce the management fee or performance participation allocation. Any such arrangements will be at market terms and rates. The Company has engaged Nations Land Services, L.P. ("Nations"), a title agent company in which Apollo has a majority ownership. Nations acts as a title agent in facilitating and issuing title insurance in connection with investments by the Company, affiliates, and related parties, and third parties. Apollo receives distributions from Nations in connection with investments by the Company based on its equity interest in Nations. In each case, there will be no related offset to the Company. During the year ended December 31, 2023, the Company incurred $ 33 thousand of expenses for services provided by Nations. The Dealer Manager serves as the dealer manager for the Offering. The Dealer Manager is a registered broker-dealer affiliated with the Adviser. The Company entered into an agreement (the "Dealer Manager Agreement") with the Dealer Manager in connection with the Offering. Subject to the terms of the Dealer Manager Agreement, the Company's obligations to pay stockholder servicing fees with respect to the Class S shares, Class D shares, Class F-S shares, and Class F-D shares sold in the Offering shall survive until such shares are no longer outstanding (including because such shares have converted into Class I shares or Class F-I shares). The Dealer Manager is entitled to receive selling commissions of up to 3.0 %, and dealer manager fees of up to 0.5 %, of the transaction price of each Class S share and Class F-S share sold in the primary offering; however, such amounts may vary at certain participating broker-dealers, provided that the sum will not exceed 3.5 % of the transaction price. Participating broker-dealers are third-party broker-dealers engaged by the Dealer Manager to participate in the distribution of shares of the Company's common stock. The Dealer Manager is also entitled to receive selling commissions of up to 1.5 % of the transaction price of each Class D share and Class F-D share sold in the primary offering. The Dealer Manager also receives a stockholder servicing fee of 0.85 % and 0.25 % per annum of the aggregate NAV of the Company's outstanding Class S and F-S shares and Class D and F-D shares, respectively. The Dealer Manager has entered into agreements with selected dealers that agree to distribute the Company's shares in the Offering, which will provide, among other things, for the reallowance of the full amount of the selling commissions and stockholder servicing fees to such selected dealers. The Company will cease paying the stockholder servicing fee with respect to any Class S share, Class D share, Class F-S share, or Class F-D share held in a stockholder's account at the end of the month in which the total selling commissions, dealer manager fees and stockholder servicing fees paid with respect to such shares would exceed, in the aggregate, 8.75 % of the gross proceeds from the sale of such share. The Company will accrue the cost of the stockholder servicing fee as an offering cost at the time each Class S share, Class F-S share, Class D share, and Class F-D share is sold during the primary offering. There will no t be a stockholder servicing fee, upfront selling commission or dealer manager fee with respect to Class I shares, Class F-I shares, Class A-I shares, Class A-II shares, and Class A-III shares. From time to time, the Company makes co-investments in commercial mortgage loans alongside Apollo affiliates. As of December 31, 2023, all of the Company's investments in commercial mortgage loans were pari-passu co-investments with Apollo affiliates. The Company may also offer Class E shares, which will only be available to certain of Apollo's affiliates and employees, in one or more private placements. These shares are not being offered to the public pursuant to the Offering and will no t incur any upfront selling costs, ongoing servicing costs, management fee or performance participation allocation. On February 18, 2022, the Company was capitalized with a $ 0.2 million investment by Apollo ARIS Holdings LLC, an indirect wholly-owned subsidiary of Apollo, in exchange for 10,000 shares of Class I common stock. On November 11, 2022, 10,000 shares of Class I common stock held by Apollo ARIS Holdings LLC were exchanged for 10,000 shares of Class F-I common stock. Apollo ARIS Holdings LLC has elected to reinvest the dividends declared on its shares, which has corresponded to the issuance of 279 of additional Class F-I shares in lieu of cash for the dividends paid during the year ended December 31, 2023. On November 29, 2022, the Company and the Operating Partnership entered into a subscription agreement with an affiliate of Apollo to issue 5,000,000 Class A-I units for the aggregate consideration of $ 100.0 million . In May 2023 such affiliate of Apollo elected to reinvest its dividends. In connection with such dividend reinvestment, the Company issued 120,790 Class A-I units in lieu of cash for the dividends paid during the year ended December 31, 2023. Due to Affiliates The following table details the Company's expenses that are due to its Adviser ($ in thousands): December 31, 2023 December 31, 2022 Organization and offering $ 7,906 $ 6,620 General and administrative 6,895 1,678 Management fee payable 468 — Accrued performance participation allocation 562 — Total $ 15,831 $ 8,298 Organization and Offering Expenses The Adviser has advanced $ 7.9 million of organization and offering expenses (including legal, accounting, and other expenses attributable to the Company's organization, but excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) on behalf of the Company through December 22, 2023, the first anniversary of the escrow break for the Offering. The Company will reimburse the Adviser for all such advanced costs ratably over a 60 month period beginning on December 22, 2024. General and Administrative Expenses The Adviser has advanced $ 6.9 million of general and administrative expenses on the Company's behalf as of December 22, 2023, the first anniversary of the escrow break for the Offering. The Adviser will continue to advance certain of the Company's general and administrative expenses through December 22, 2023, the first anniversary of the escrow break for the Offering. The Company will reimburse the Adviser for all such advanced costs ratably over a 60 month period beginning on December 22, 2024. Management Fee Payable The Adviser is entitled to a management fee equal to 1.25 % of NAV per annum, payable monthly on Class S shares, Class D shares, and Class I shares. The Adviser will be paid a management fee equal to 1.0 % of NAV per annum, payable monthly on Class F-S shares, Class F-D shares, Class F-I shares, and Class A-I shares. The Adviser will be paid a management fee equal to 1.0 % of NAV for Class A-II shares per annum payable monthly; and provided that, for the period of April 1, 2023 through September 1, 2026, this management fee will be reduced to 0.92 % of NAV for Class A-II shares per annum payable monthly. The Adviser will be paid a management fee equal to 1.0 % of NAV for Class A-III shares per annum payable monthly; and provided that, for the period of April 1, 2023 through January 2, 2027, this management fee will be reduced to 0.85 % of NAV for Class A-III shares per annum payable monthly. The management fee will be paid, at the Adviser's election, in cash, Class E shares, Class E units or any combination thereof. During the year ended December 31, 2023, the Company incurred $ 3.4 million of management fees. During the year ended December 31, 2023, the Company issued 99,410 Class E shares and 45,687 Class E units to the Adviser as payment for its management fee. The shares and Operating Partnership units issued to the Adviser for payment of the management fee were issued at the applicable NAV per share/unit at the end of each month for which the fee was earned, in reliance upon the exemption from registration set forth in Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"). The Adviser did not submit any repurchase requests for any shares or Operating Partnership units previously issued as payment for the management fee during the year ended December 31, 2023. The Adviser has elected to reinvest the dividends declared on the shares and Operating partnership units issued for its management fee. In connection with such dividend reinvestment, the Company issued 1,349 Class E shares and 859 Class E units to the Adviser in lieu of cash for the dividends paid during the year ended December 31, 2023. |
Economic Dependency
Economic Dependency | 12 Months Ended |
Dec. 31, 2023 | |
Economic Dependency [Abstract] | |
Economic Dependency | Note 12 — Economic Dependency The Company will be dependent on the Adviser and its affiliates for certain services that are essential to it, including the sale of the Company's shares of common stock, acquisition and disposition decisions, and certain other responsibilities. In the event that the Adviser and its affiliates are unable or unwilling to provide such services, the Company would be required to find alternative service providers. The Company may retain third parties, including certain of the Adviser's affiliates, for necessary services relating to its investments or operations. |
Share Based Payments
Share Based Payments | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share Based Payments | Note 13 — Share Based Payments The Company's board of directors approved the Apollo Realty Income Solutions, Inc. Amended and Restated 2022 Equity Incentive Plan (the "2022 Equity Incentive Plan"), pursuant to which, shares of the Company's common stock may be granted from time to time to directors and officers of the Company and employees of the Adviser. The 2022 Equity Incentive Plan allows for up to 10,000,000 shares of the Company's common stock to be issued. The following table summarizes the grants, vesting and forfeitures of restricted common stock during the year ended December 31, 2023: Type Restricted Stock Grant Date Fair Value ($ in thousands) Outstanding as of December 31, 2022 — Granted 4,948 $ 100 Vested — — Forfeiture — — Outstanding as of December 31, 2023 4,948 100 Restricted Stock Grants During the year ended December 31, 2023, the Company issued 4,948 Class E shares to the independent directors of the Company's board of directors to cover the restricted stock portion of the annual base director's fee for the independent directors' services to the Company. The fair value of these shares was determined using the most recently available NAV and they are subject to a one year vesting period . During the year ended December 31, 2023, the Company recorded $ 75 thousand of restricted stock amortization as general and administrative expenses in the consolidated statement of operations. There are three months of remaining amortization related to the grants of restricted stock, which represents unrecognized compensation cost of $ 25 thousand as of December 31, 2023 . |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Equity | Note 14 — Equity Authorized Capital The Company is authorized to issue preferred stock and ten classes of common stock consisting of Class S shares, Class D shares, Class I shares, Class F-S shares, Class F-D shares, Class F-I shares, Class A-I shares, Class A-II shares, Class A-III shares, and Class E shares. The differences among the classes of common stock relate to upfront selling commissions, dealer manager fees, and ongoing stockholder servicing fees, as well as varying management and performance participation allocations. See "Note 11 — Related Party Transactions" for additional information. As of December 31, 2023 and December 31, 2022, the Company had the following classes of common stock authorized, issued and outstanding: December 31, 2023 December 31, 2022 Classification Shares Authorized Shares Issued and Outstanding Shares Authorized Shares Issued and Outstanding Preferred Stock, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class S Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class D Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class I Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class F-S Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class F-D Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class F-I Shares, $ 0.01 par value per share 100,000,000 4,820,377 100,000,000 1,823,750 Class A-I Shares, $ 0.01 par value per share 100,000,000 17,016,652 100,000,000 — Class A-II Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class A-III Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class E Shares, $ 0.01 par value per share 100,000,000 105,707 100,000,000 — Total 1,100,000,000 21,942,736 1,100,000,000 1,823,750 Common Stock The following table details the movement in the Company's outstanding shares of common stock: Class I Class F-I Class A-I Class E Beginning balance, February 18, 2022 (date of initial capitalization) 10,000 — — — Common stock transferred ( 10,000 ) 10,000 — — Common stock issued 1,813,750 December 31, 2022 — 1,823,750 — — Common stock issued — 13,147,002 6,882,222 104,358 Repurchase of common stock — — ( 7,389 ) — Share class transfer — ( 10,185,344 ) 10,126,324 — Dividend reinvestment — 34,969 15,496 1,349 December 31, 2023 — 4,820,377 17,016,652 105,707 On April 4, 2023 (the "Exchange Date"), approximately 5,162,941 Class F-I shares were exchanged for approximately 5,152,707 Class A-I shares at an exchange rate based on the NAV per share/unit for the Company's Class F-I shares and Class A-I units as of the Exchange Date. On November 2, 2023 (the "Second Exchange Date"), approximately 5,022,403 Class F-I shares were exchanged for approximately 4,973,617 Class A-I shares at an exchange rate based on the NAV per share/unit for the Company's Class F-I shares and Class A-I units as of the Second Exchange Date. Distributions The Company generally intends to distribute substantially all of its taxable income to its stockholders each year to comply with the REIT provisions of the Code, as amended. Taxable income does not necessarily equal net income calculated in accordance with GAAP. Each class of common stock receives the same gross distribution per share. The net distribution per share varies for each share class based on differing fee structures. Additionally net distributions will vary based on the applicable stockholder servicing fee, which is deducted from the monthly distribution per share and paid directly to the applicable distributor. The following table details the aggregate distributions declared for each applicable class of common stock: Year Ended December 31, 2023 Class F-I Class A-I Class E Aggregate gross distribution declared per share of common stock $ 0.7810 $ 0.7810 $ 0.7810 Management fee per share of common stock ( 0.1510 ) ( 0.1510 ) — Net distribution declared per share of common stock $ 0.6300 $ 0.6300 $ 0.7810 Repurchases During the year ended December 31, 2023, the Company repurchased 7,389 of Class A-I shares pursuant to the Company's share repurchase plan for an aggregate amount of $ 0.2 million . The Company had no unfulfilled repurchase requests during the year ended December 31, 2023. Redeemable Non-Controlling Interest In connection with its management fee, the Adviser has elected to receive Class E units. See Note 11 — Related Party Transactions for additional information on the Advisers interest. In November 2023, the Limited Partnership Agreement was updated to enable the Adviser to redeem their Class E units for Class E shares or cash at its election. As of that date the Company has classified these Class E units as redeemable non-controlling interest in mezzanine equity on the Company's consolidated balance sheet. The Redeemable non-controlling interest is recorded at the greater of the carrying amount, adjusted for its share of the allocation of income or loss and dividends, or the redemption value, which is equivalent to fair value, of such Operating Partnership units at the end of each measurement period. The following table details the redeemable non-controlling interest activity related to the Adviser for the year ended December 31, 2023 ($ in thousands): Adviser Fair Value at November 8, 2023 $ 779 Settlement of management fees 176 GAAP income allocation 13 Distributions ( 8 ) Reinvestment of distributions 7 Fair value allocation - Balance at December 31, 2023 $ 967 As of December 31, 2023 the carrying value of the redeemable non-controlling interest approximated the fair value. Non-Controlling Interests - Operating Partnership Unitholders Operating Partnership units are subject to the same fees as the corresponding classes of common stock and do not have any preferential rights relative to the Company's interest in the Operating Partnership. On December 22, 2022, the Company issued 5,000,000 Class A-I units to an affiliate of Apollo for the aggregate consideration of $ 100.0 million in a private placement. During the year ended December 31, 2023, the Company issued 45,687 Class E units, to the Adviser for the management fee earned on the Operating Partnership units issued to an affiliate of Apollo, mentioned above. Currently all Operating Partnership unitholders have elected to reinvest their dividends. In connection with such dividend reinvestment, the Company issued 120,790 Class A-I and 859 Class E units in lieu of cash for the dividends paid during the year ended December 31, 2023. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 15 — Earnings per Share The Company's net income (loss) and weighted average number of shares outstanding for the years ended December 31, 2023, and the period February 18, 2022 (date of initial capitalization) through December 31, 2022, consists of the following (in thousands except per share information): Basic and Diluted Net Income (Loss) per Share Attributable to ARIS Stockholders Year Ended December 31, For the Period February 18, 2022 (date of initial capitalization) through December 31, 2023 2022 Numerator: Net income (loss) attributable to ARIS stockholders $ 12,759 $ ( 815 ) Denominator: Basic and diluted weighted average shares of common stock outstanding 11,851 67 Basic and diluted net income (loss) per share of common stock $ 1.08 $ ( 12.13 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16 — Commitments and Contingencies From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. As of December 31, 2023 and December 31, 2022, the Company was not subject to any material litigation nor is the Company aware of any material litigation threatened against it. As of December 31, 2023, the Company had $ 258.1 million of unfunded commitments related to its investments in real estate debt. The timing and amounts of funding are uncertain as these commitments relate to loans for construction costs, capital expenditures, leasing costs, interest and carry costs, among others. As such, the timing and amounts of future funding depend on the progress and performance of the underlying assets of the Company's investments in real estate debt. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 17 — Segment Reporting The Company operates in two reportable segments: Real Estate and Real Estate Debt. The Company allocates resources and evaluates results based off of the performance of each segment individually. The Company believes that Segment Net Operating Income is the key performance metric that captures the unique operating characteristics of each segment. The following table sets forth the total assets by segment as of December 31, 2023 ($ in thousands): Real Estate Real Estate Debt Other Corporate Total Total Assets $ 183,492 $ 330,974 $ 95,205 $ 609,671 The following table sets forth the financial results by segment for the year ended December 31, 2023 ($ in thousands): Real Estate Real Estate Debt Other Corporate Total Revenue — Rental revenue $ 6,912 $ — $ — $ 6,912 Total revenues 6,912 — — 6,912 Expenses Rental property operating ( 834 ) — — ( 834 ) Interest expense ( 554 ) ( 554 ) Total segment expenses ( 1,388 ) — — ( 1,388 ) Income from investments in real estate debt — 17,490 — 17,490 Segment net operating income $ 5,524 $ 17,490 $ — $ 23,014 Depreciation and amortization $ ( 2,544 ) $ — $ — $ ( 2,544 ) General and administrative ( 5,380 ) Management fee ( 3,440 ) Performance participation allocation ( 562 ) Other income 6,241 Net income $ 17,329 Net income attributable to non-controlling interests in ARIS OP $ 4,570 Net income attributable to ARIS stockholders $ 12,759 The Company had no investments and therefore operated in one reportable segment as of December 31, 2022 . |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 18 — Subsequent Events Subsequent to the year ended December 31, 2023, we originated a $ 85.0 million ($ 20.3 million funded at close) first mortgage to finance the construction of a data center in Gainesville, VA, and a $ 50.0 million ($ 45.1 million funded at close) first mortgage secured by a hotel property in Los Angeles, CA. Additionally, we funded approximately $ 79.7 million in add-on fundings for loans closed prior to the year ended December 31, 2023. |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | Schedule III — Real Estate and Accumulated Depreciation as of December 31, 2023 ($ in thousands) _________ Initial Cost Costs Capitalized Gross Amounts at which (1) Description Location Number of Properties Encumbrances Land and Land Improvements Building and Building Improvements Land and Land Improvements Building and Building Improvements Land and Land Improvements Building and Building Improvements Total Accumulated Depreciation (2) Year Acquired Industrial Properties: Rickenbacker Columbus, OH 1 $ — $ 1,491 $ 40,496 $ — $ 621 $ 1,491 $ 41,117 $ 42,608 $ ( 883 ) 2023 Hallmark Liberty, MO 1 36,000 5,515 54,114 — — 5,515 54,114 59,629 ( 340 ) 2023 Total Industrial Properties 36,000 7,006 94,610 — 621 7,006 95,231 102,237 ( 1,223 ) Retail Properties: 16000 Pines Pembroke Pines, FL 1 — 15,701 38,182 — — 15,701 38,182 53,883 ( 384 ) 2023 Total Retail Properties — 15,701 38,182 — — 15,701 38,182 53,883 ( 384 ) Portfolio Total $ 36,000 $ 22,707 $ 132,792 $ — $ 621 $ 22,707 $ 133,413 $ 156,120 $ ( 1,607 ) 1. As of December 31, 2023, the aggregate cost basis for tax purposes was $ 169.1 million. 2. Refer to Note 2 of the Company's consolidated financial statements for details on depreciable lives. The following table summarizes activity for real estate and accumulated depreciation for the year ended December 31, 2023 ($ in thousands): Description December 31, 2023 Real Estate: Balance at the beginning of the year $ - Additions during the year: Land and land improvements 22,707 Building and building improvements 133,413 Dispositions during the year: Land and land improvements - Building and building improvements - Balance at the end of the year $ 156,120 Accumulated Depreciation: Balance at the beginning of the year $ - Accumulated depreciation ( 1,607 ) Dispositions - Balance at the end of the year $ ( 1,607 ) |
Schedule IV - Mortgage Loans on
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule IV - Mortgage Loans on Real Estate | Schedule IV — Mortgage Loans on Real Estate As of December 31, 2023 ($ in thousands) Description Number of Loans Property Type/location Contractual Interest Rate (1) Maturity Date (2) Periodic Payment Principal Balance Fair Value (5) Commercial mortgage loans individually >3% (3) Loan A Industrial/Northeast S+ 9.4 % Mar-28 Interest Only $ 41,292 $ 41,292 Loan B Multifamily/Northeast S+ 9.7 % Oct-25 Interest Only 34,670 34,670 Loan C Other/Mid-Atlantic S+ 9.5 % Jun-28 Interest Only 40,651 40,651 Loan D Hotel/Various S+ 9.5 % Aug-26 Interest Only 25,000 25,000 Loan E Hotel/Various S+ 9.1 % Jul-28 Interest Only 23,795 23,795 Loan F Multifamily/Northeast S+ 9 .% Jun-25 Interest Only 26,000 26,000 Loan G Multifamily/Northeast S+ 8.4 % Jan-29 Interest Only 50,000 50,000 Commercial mortgage loans individually <3% (3) First Mortgage (3) 4 Other/Various S+ 8.6 %- 9.4 % 2028 Interest Only $ 11,460 $ 11,460 Total Commercial mortgage loans $ 252,868 $ 252,868 Description Number of Loans Property Type/location Contractual Interest Rate (1) Maturity Date (2) Periodic Payment Principal Balance Fair Value Subordinate loans individually >3% (3) Subordinate 1 Industrial/Various 10.0 % Sep-26 Interest Only $ 50,000 $ 50,000 Total Subordinate loans $ 50,000 $ 50,000 Total loans (4) $ 302,868 $ 302,868 ________ 1. Assumes applicable benchmark rates as of December 31, 2023 for all floating rate loans. 2. Assumes all extension options are exercised. 3. No prior tax liens or delinquent interest exists on any of the Company's commercial real estate loans. 4. The aggregate cost for U.S. federal income tax purposes is $ 302.9 million. 5. There are no delinquent principal or interest on any loan as of December 31, 2023. The following table summarizes the changes in the balance sheet reported amount of the Company's loan portfolio during 2023 ($ in thousands): Reconciliation of Balance Sheet Reported Amount of Loans December 31, 2023 Balance at beginning of year $ - Loan fundings 302,468 Loan repayments - Unrealized gain on fair value 200 Amortization of fees and other items 200 Balance at the close of year $ 302,868 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include the accounts of the Company and the Operating Partnership. All intercompany balances and transactions are eliminated in consolidation. |
Principles of Consolidation | Principles of Consolidation The Company consolidates all entities that it controls through either majority ownership or voting rights. In addition, the Company consolidates all variable interest entities ("VIEs") of which it is considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as the primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE's economic performance, and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. The Operating Partnership is considered to be a VIE. The Company consolidates this entity as it has the ability to direct the most significant activities of the entities such as purchases, dispositions, financings, budgets, and overall operating plans. The accompanying consolidated financial statements include the accounts of the Company and the Company's subsidiary partnerships. Third party unitholders of Operating Partnership's share of the assets, liabilities and operations of the Operating Partnership is included in non-controlling interest as equity of the Company. The non-controlling interest is generally computed based on third party unit-holders ownership percentage. Non-controlling interests in the Operating Partnership represent Operating Partnership units that are held by third parties, including the Adviser, and Operating Partnership units issued to the Adviser under an advisory agreement by and among the Company, the Operating Partnership and the Adviser (as amended, restated or otherwise modified from time to time, the "Advisory Agreement"). Operating Partnership units may be redeemed for cash, or at the Company's option, for shares of common stock of the Company on a one-for-one basis, unless those units are held by the Adviser or Special Limited Partner, in which case such Operating Partnership units shall be redeemed for shares of common stock of the Company or cash, at the holder's election. Since the number of shares of common stock outstanding is equal to the number of Operating Partnership units owned by the Company, the redemption value of each common unit of the Operating Partnership is equal to the market value of each share of common stock and distributions paid to each unitholder is equivalent to dividends paid to common stockholders, per respective share class. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent cash held in banks, cash on hand, and liquid investments with original maturities of three months or less. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. As of December 31, 2023, the Company held $ 91.3 million of cash equivalents and did no t hold any cash equivalents as of December 31, 2022 . As of December 31, 2023 and 2022 there was no restricted cash on hand. |
Fair Value Measurements | Fair Value Measurements Under normal market conditions, the fair value of an investment is the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). The Company uses a hierarchical framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment, and the state of the marketplace, including the existence and transparency of transactions between market participants. Investments with readily available actively quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following levels within the fair value hierarchy: Level 1 — quoted prices are available in active markets for identical investments as of the measurement date. The Company does not adjust the quoted price for these investments. Level 2 — quoted prices are available in markets that are not active or model inputs are based on inputs that are either directly or indirectly observable as of the measurement date. Level 3 — pricing inputs are unobservable and include instances where there is minimal, if any, market activity for the investment. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed. The Company has elected the fair value option ("FVO") for investments in real estate debt as the Company believes fair value provides a more accurate depiction of these assets value. As of December 31, 2023, the Company's investments in real estate debt consisted of commercial mortgage loans secured by real estate assets and real estate-related securities. The Company generally determines the fair value of its investments in real estate debt by utilizing third-party pricing service providers whenever available. The Company's investments in commercial mortgage loans are unlikely to have readily available market quotations. In such cases, the Company will generally determine the initial value based on the acquisition price of such investment if acquired by the Company or the par value of such investment if originated by the Company. Following the initial measurement, the Company will determine fair value by utilizing or reviewing certain of the following (i) market yield data, (ii) discounted cash flow modeling, (iii) collateral asset performance, (iv) local or macro real estate performance, (v) capital market conditions, (vi) debt yield or loan-to-value ratios, and (vii) borrower financial condition and performance. The inputs used in determining the fair value of the Company's investments in commercial mortgage loans are considered Level 3. The fair value of real estate-related securities may be determined by using third-party pricing service providers or broker-dealer quotes, reported trades or valuation estimates from their internal pricing models to determine the reported price. The inputs used in determining the fair value of the Company's investments in real estate-related securities are considered Level 2. The following table details the Company's assets measured at fair value on a recurring basis ($ in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Investments in real estate debt $ — $ 25,321 $ 302,868 $ 328,189 The following table details the Company's assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): Investments in Real Estate Debt Total Balance as of December 31, 2022 $ — $ — Originations, acquisitions, and add on fundings 302,668 302,668 Included in net income: Unrealized gain from investments in real estate debt 200 200 Balance as of December 31, 2023 $ 302,868 $ 302,868 The following table contains the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy ($ in thousands): December 31, 2023 Fair Value Valuation Technique Unobservable Inputs Rate Range Impact to Valuation from an Increase in Input Assets: Investments in real estate debt $ 302,868 Discounted cash flow Discount rate 8.41 %- 10.00 % Decrease As of December 31, 2022 , the Company did no t hold any assets at fair value. |
Investment Property and Lease Intangibles | Investment Property and Lease Intangibles Acquisitions of properties are accounted for utilizing the acquisition method and, accordingly, the operations of acquired properties will be included in the Company's results of operations from their respective dates of acquisition. The Company will utilize a report from an independent appraiser to record the purchase of identifiable assets acquired and liabilities assumed such as land, buildings and improvements, equipment and identifiable intangible assets and liabilities such as amounts related to in-place leases, acquired above- and below-market leases, tenant relationships, asset retirement obligations and mortgage loans payable. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place leases that may have a customer relationship intangible value, including (but not limited to) the nature and extent of the existing relationship with the tenants, the tenants' credit quality and expectations of lease renewals. The estimated fair value of acquired in-place leases is the costs the Company would have incurred to lease the properties to the occupancy level of the properties at the date of acquisition. Such estimates include the fair value of leasing commissions, legal costs, and other direct costs that would be incurred to lease the properties to such occupancy levels. Additionally, the Company evaluates the time period over which such occupancy levels would be achieved. Such evaluation includes an estimate of the net market-based rental revenues and net operating costs (primarily consisting of real estate taxes, insurance and utilities) that would be incurred during the lease-up period. Acquired in-place leases as of the date of acquisition are amortized over the remaining lease terms. The amortization of in-place lease intangibles is recorded in depreciation and amortization expense on the Company's consolidated statements of operations. Acquired above- and below-market lease values are recorded based on the present value of the difference between the contractual amounts to be paid pursuant to the in-place leases and the Company's estimate of fair market value lease rates for the corresponding in-place leases. The capitalized above- and below-market lease values are amortized as adjustments to rental revenue over the remaining terms of the respective leases, which include periods covered by bargain renewal options, if applicable. Should a tenant terminate its lease, the unamortized portion of the in-place lease value will be charged to amortization expense and the unamortized portion of out-of-market lease value will be charged to rental revenue. The Company's investments in real estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Description Depreciable Life Buildings 39 - 50 years Buildings and land improvements 10 - 15 years Lease intangibles and leasehold improvements Lease term Significant improvements to properties are capitalized, whereas, repairs and maintenance expenses at the Company's properties are expensed as incurred and included in real estate operating expense on the Company's consolidated statements of operations. When an asset is sold, the cost and related accumulated depreciation are removed from the accounts with the resulting gain or loss reflected in the Company's results of operations for the period. Real estate assets are evaluated for impairment on a quarterly basis. The Company considers the following factors when performing its impairment analysis: (1) management, having the authority to approve the action, commits to a plan to sell the asset; (2) significant negative industry and economic outlook or trends; (3) expected material costs necessary to extend the life or operate the real estate asset; and (4) its ability to hold and dispose of the real estate asset in the ordinary course of business. A real estate asset is considered impaired when the sum of estimated future undiscounted cash flows to be generated by the real estate asset over the estimated remaining holding period is less than the carrying value of such real estate asset. An impairment charge is recorded equal to the excess of the carrying value of the real estate asset over the fair value. When determining the fair value of a real estate asset, the Company makes certain assumptions including, but not limited to, consideration of projected operating cash flows, comparable selling prices and projected cash flows from the eventual disposition of the real estate asset based upon its estimate of a capitalization rate and discount rate. As of December 31, 2023 , the Company had not recorded any impairments on its investments in real estate. |
Investments in Real Estate Debt | Investments in Real Estate Debt The Company's investments in real estate debt consist of commercial mortgage loans secured by real estate and real estate-related securities. The real estate-related securities are classified as available-for-sale securities. The Company has elected the FVO for its commercial mortgage loans secured by real estate and its real estate-related securities. As such, in both instances, the unrealized gain or loss associated with holding these investments at fair value are recorded as a component of income from investments in real estate debt on the Company's consolidated statement of operations. For the year ended December 31, 2023, the Company recorded $ 0.2 million of unrealized gain on its investments in real estate debt. Interest income from the Company's investments in real estate debt is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of premiums and discounts associated with these investments is deferred and recorded over the term of the investment as an adjustment to yield. Upfront costs and fees related to items for which the FVO is elected are recognized in earnings as incurred and are not deferred. Interest income, upfront costs and fees are recorded as components of income from investments in real estate debt on the Company's consolidated statements of operations. Commercial mortgage loans that are significantly past due may be placed on non-accrual status if the Company determines it is probable that it will not collect all payments which are contractually due. When a loan is placed on non-accrual status, interest is only recorded as interest income when it is received. A loan may be placed back on accrual status if the Company determines it is probable that it will collect all payments which are contractually due. |
Deferred Financing Costs | Deferred Financing Costs Costs incurred in connection with financings are capitalized and amortized over the respective financing terms and are reflected on the accompanying consolidated statement of operations as a component of interest expense. |
Revenue Recognition | Revenue Recognition The Company's rental revenue consists of base rent and tenant reimbursement income arising from tenant leases at the Company's properties under operating leases. Base rent is recognized on a straight-line basis over the life of the lease, including any rent step ups or abatements. The Company accounts for base rental revenue (lease component) and common area expense reimbursement (non-lease component) as one lease component under Accounting Standards Codification 842, "Leases". Additionally, the Company also includes the non-components of its leases, such as the reimbursement of utilities, insurance and real estate taxes, within this lease component. The Company evaluates the collectability of receivables related to rental revenue on an individual lease basis. Management exercises judgment in assessing collectability and considers the length of time a receivable has been outstanding, tenant creditworthiness, payment history, available information about the financial condition of the tenant, and current economic trends, among other factors. Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue. However any future cash receipt on leases that are deemed uncollectible will be recorded as income on a cash basis. |
Income Taxes | Income Taxes The Company intends to make an election to be taxed as a REIT under Sections 856 through 860 of the Code commencing with its taxable year ended December 31, 2023. If the Company qualifies for taxation as a REIT, the Company generally will not be subject to federal corporate income tax to the extent it distributes its taxable income to its stockholders. REITs are subject to a number of other organizational and operational requirements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and U.S. federal income and excise taxes on its undistributed income. |
Earnings per Share of Common Stock | Earnings per Share of Common Stock Basic earnings per share of common stock is computed by dividing net income or loss for the period by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income or loss for the period by the weighted average number of shares of common stock and common stock equivalents outstanding (unless their effect is anti-dilutive) for the period. As there were no common stock equivalents outstanding during the year ended December 31, 2023, and the period from February 18, 2022 (date of initial capitalization) through December 31, 2022 , the calculation of basic and diluted earnings per share are equal. |
Organization and Offering Expenses | Organization and Offering Expenses The Adviser has agreed that it and/or its affiliates will advance organization and offering expenses on behalf of the Company (including legal, accounting, and other expenses attributable to the Company's organization, but excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) through December 22, 2023, the first anniversary of the escrow break for the Offering. The Company will reimburse the Adviser and its affiliates for all such advanced expenses ratably over a 60-month period beginning on December 22, 2024. Organization costs are expensed as incurred and recorded as expenses on the Company's consolidated statement of operations and offering costs are charged to equity as such amounts are incurred. As of December 31, 2023, the Adviser and its affiliates had incurred organization and offering costs on the Company's behalf of $ 7.9 million , consisting of offering costs of $ 6.4 million and organization costs of $ 1.5 million . As of December 31, 2022, the Adviser and its affiliates had incurred $ 6.6 million of organization and offering costs on the Company's behalf, consisting of $ 5.1 million of offering costs and $ 1.5 million of organization costs. Such costs became the Company's liability on December 22, 2022, the date on which the proceeds from the Offering were released from escrow. These organization and offering costs are recorded as a component of due to affiliates on the Company's consolidated balance sheet. Apollo Global Securities, LLC (the "Dealer Manager"), a registered broker-dealer affiliated with the Adviser, serves as the dealer manager for the Offering. The Dealer Manager is entitled to receive selling commissions and dealer manager fees based on the transaction price of each applicable class of shares sold in the primary offering. The Dealer Manager is also entitled to receive a stockholder servicing fee based on the aggregate NAV of the Company's outstanding Class S shares, Class D shares, Class F-S shares and Class F-D shares. The following table details the selling commissions, dealer manager fees, and stockholder servicing fees for each applicable share class as of December 31, 2023: Class S Shares Class D Shares Class I Shares Class F-S Shares Class F-D Shares Class F-I Shares Class A-I Shares Class A-II Shares Class A-III Shares Selling commissions and dealer manager fees (% of transaction price) up to 3.5 % up to 1.5 % — up to 3.5 % up to 1.5 % — — — — Stockholder servicing fee (% of NAV) 0.85 % 0.25 % — 0.85 % 0.25 % — — — — For Class S shares and Class F-S shares sold in the primary offering, investors will pay upfront selling commissions of up to 3 % and dealer manager fees of up to 0.5 % of the transaction price; however, such amounts may vary at certain participating broker-dealers, provided that the sum will not exceed 3.5 % of the transaction price. For Class D shares and Class F-D shares sold in the primary offering, investors will pay upfront selling commissions of up to 1.5 % of the transaction price. The Dealer Manager, as the dealer manager for the Offering, is entitled to receive stockholder servicing fees of 0.85 % per annum of the aggregate NAV for Class S shares and Class F-S shares. For Class D shares and Class F-D shares, a charge of 0.25 % per annum of the aggregate NAV will be charged for stockholder servicing fees. The Dealer Manager has entered into agreements with selected dealers that agree to distribute the Company's shares in the Offering, which will provide, among other things, for the reallowance of the full amount of the selling commissions and stockholder servicing fees to such selected dealers. The Company will cease paying the stockholder servicing fee with respect to any Class S share, Class D share, Class F-S share, or Class F-D share held in a stockholder's account at the end of the month in which the total selling commissions, dealer manager fees and stockholder servicing fees paid with respect to such shares would exceed, in the aggregate, 8.75 % of the gross proceeds from the sale of such share. There will not be a stockholder servicing fee, upfront selling commission or dealer manager fee with respect to Class I shares, Class F-I shares, Class A-I shares, Class A-II shares, and Class A-III shares. The Company will accrue the cost of the stockholder servicing fee as an offering cost at the time of each Class S share, Class D share, Class F-S share, and Class F-D share is sold during the primary offering. As of December 31, 2023 , the Company had not sold any of those share classes and as such has not accrued for any stockholder servicing fees. |
Share Based Payments | Share Based Payments The Company accounts for share-based compensation to its independent directors, to the Adviser and to employees of the Adviser and its affiliates using the fair value-based methodology prescribed by GAAP. Compensation cost related to restricted common stock issued is measured at its fair value at the grant date and amortized into expense over the vesting period on a straight-line basis. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provide new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods with fiscal years beginning after December 15, 2024. ASU 2023-07 is to be adopted retrospectively to all prior periods presented. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09 "Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company is currently assessing the impact of this guidance, however, it does not expect a material impact to its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Assets Measured at Fair Value on a Recurring Basis | The following table details the Company's assets measured at fair value on a recurring basis ($ in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Investments in real estate debt $ — $ 25,321 $ 302,868 $ 328,189 The following table details the Company's assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): Investments in Real Estate Debt Total Balance as of December 31, 2022 $ — $ — Originations, acquisitions, and add on fundings 302,668 302,668 Included in net income: Unrealized gain from investments in real estate debt 200 200 Balance as of December 31, 2023 $ 302,868 $ 302,868 |
Summary of Quantitative Inputs and Assumptions Used for items Categorized in Level 3 of Fair Value Hierarchy | The following table contains the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy ($ in thousands): December 31, 2023 Fair Value Valuation Technique Unobservable Inputs Rate Range Impact to Valuation from an Increase in Input Assets: Investments in real estate debt $ 302,868 Discounted cash flow Discount rate 8.41 %- 10.00 % Decrease |
Summary of Investments in Real estate Stated at Cost and Generally Depreciated on Straight-Line Basis over Estimated Useful Lives of Assets | The Company's investments in real estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Description Depreciable Life Buildings 39 - 50 years Buildings and land improvements 10 - 15 years Lease intangibles and leasehold improvements Lease term |
Summary of Selling Commissions, Dealer Manager Fees, and Stockholder Servicing Fees for each Applicable Share Class | The following table details the selling commissions, dealer manager fees, and stockholder servicing fees for each applicable share class as of December 31, 2023: Class S Shares Class D Shares Class I Shares Class F-S Shares Class F-D Shares Class F-I Shares Class A-I Shares Class A-II Shares Class A-III Shares Selling commissions and dealer manager fees (% of transaction price) up to 3.5 % up to 1.5 % — up to 3.5 % up to 1.5 % — — — — Stockholder servicing fee (% of NAV) 0.85 % 0.25 % — 0.85 % 0.25 % — — — — |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate Investments, Net [Abstract] | |
Summary of Investments in Real Estate, Net | Investments in real estate, net consisted of the following ($ in thousands): December 31, 2023 Building and building improvements $ 132,792 Land and land improvements 22,707 Tenant improvements 621 Total 156,120 Accumulated depreciation ( 1,607 ) Investment in real estate, net $ 154,513 |
Summary of Acquired Properties Qualified as Asset Acquisitions | During the year ended December 31, 2023, the Company acquired the following properties, that qualified as asset acquisitions ($ in thousands): Property Type Acquisition Date Purchase Price Rickenbacker Industrial January 2023 $ 49,214 16000 Pines Retail August 2023 56,715 Hallmark Industrial October 2023 65,403 Total acquisitions $ 171,332 |
Summary of Purchase Price Allocation for Property Acquired | The following table summarizes the purchase price allocation for the properties acquired during the year ended December 31, 2023 ($ in thousands): Amount Building and building improvements $ 132,792 Land and land improvements 22,707 In-place lease intangibles 26,363 Above-market lease intangibles 325 Below-market lease intangibles ( 10,855 ) Total purchase price $ 171,332 |
Investments in Real Estate De_2
Investments in Real Estate Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate Investments, Net [Abstract] | |
Summary of Companys Investments in Real Estate Debt | The following table details the Company's investments in real estate debt as of December 31, 2023 ($ in thousands): December 31, 2023 Type of Investment in Real Estate Debt Number of Positions Weighted Average Coupon (1) Weighted Average Maturity Date (2) Face Amount Cost Basis Fair Value Commercial real estate loan 11 9.1 % September 2027 $ 252,868 $ 252,668 $ 252,868 Mezzanine loan 1 10.0 % September 2026 50,000 50,000 50,000 Real estate-related securities 14 7.0 % May 2037 25,811 25,314 25,321 Total Investments in real estate debt 26 9.3 % April 2028 $ 328,679 $ 327,983 $ 328,189 ____________ (1) Based on applicable benchmark rates as of December 31, 2023. (2) Weighted average maturity date is based on fully extended maturity. |
Schedule of Mortgage Loans on Real Estate | The table below details the type of properties securing the loans in the Company's portfolio as of December 31, 2023 ($ in thousands): December 31, 2023 Property Type Fair Value % of Portfolio Multifamily $ 110,670 36.6 % Industrial 91,292 30.1 % Hotel 48,795 16.1 % Data Center 40,651 13.4 % Self-Storage 8,884 2.9 % Other (1) 2,576 0.9 % Total $ 302,868 100.0 % ____________ (1) Other property types represents productions studio. The table below details the geographic distribution of the properties securing the loans in the Company's portfolio as of December 31, 2023 ($ in thousands): December 31, 2023 Geographic Location Fair Value % of Portfolio Northeast $ 169,829 56.1 % Mid-Atlantic 44,166 14.6 % West 32,841 10.8 % Southeast 27,582 9.1 % Southwest 18,400 6.1 % Midwest 10,050 3.3 % Total $ 302,868 100.0 % |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets [Abstract] | |
Summary of Components of Other Assets | The following table details the components of the Company's other assets at the dates indicated ($ in thousands): December 31, 2023 December 31, 2022 Real estate intangibles, net $ 25,734 $ — Deposits — 5,000 Straight-line rent receivable 1,425 — Interest receivable 1,727 — Other 1,821 — Deferred financing costs, net 1,057 — Total $ 31,764 $ 5,000 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Gross Carrying Amount and Accumulated Amortization | The gross carrying amount and accumulated amortization of the Company's intangible assets consisted of the following as of December 31, 2023 ($ in thousands): December 31, 2023 Intangible assets: In-place lease intangibles $ 26,363 Above-market lease intangibles 325 Total intangible assets 26,688 Accumulated amortization: In-place lease amortization ( 937 ) Above-market lease amortization ( 17 ) Total real estate intangible assets, net $ 25,734 Intangible liabilities Below-market lease intangibles $ ( 10,855 ) Total intangible liabilities ( 10,855 ) Accumulated amortization: Below-market lease amortization 226 Total real estate intangible liabilities, net $ ( 10,629 ) |
Summary of Estimated Future Amortization | The estimated future amortization on the Company's intangibles for each of the next five years and thereafter as of December 31, 2023, is as follows ($ in thousands): In-Place Lease Intangibles Above-Market Intangibles Below-Market Intangibles 2024 2,155 29 ( 775 ) 2025 2,126 29 ( 775 ) 2026 2,126 29 ( 775 ) 2027 2,126 29 ( 775 ) 2028 2,093 29 ( 756 ) Thereafter 14,800 163 ( 6,773 ) $ 25,426 $ 308 $ ( 10,629 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Fixed and Variable Components of Company's Operating Leases | The following table summarizes the fixed and variable components of the Company's operating lease for the year ended December 31, 2023 ($ in thousands): Year Ended December 31, 2023 Fixed lease payments $ 5,879 Variable lease payments 824 Lease Revenue $ 6,703 Above- and below-market lease amortization, net 209 Rental Revenue $ 6,912 |
Summary of Undiscounted Future Minimum Rents Company Expects to Receive for its Industrial Property | The following table presents the undiscounted future minimum rents the Company expects to receive for its industrial and retail properties as of December 31, 2023 ($ in thousands): Year Future Minimum Rents 2024 $ 10,813 2025 10,952 2026 11,214 2027 11,531 2028 11,802 Thereafter 84,314 Total $ 140,626 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities [Abstract] | |
Shedule Of Company's Other Liabilities | The following table details the components of the Company's other liabilities at the date indicated ($ in thousands): December 31, 2023 Below market lease intangibles, net $ 10,629 Distribution payable 1,900 Accounts payable and accrued expenses 1,816 Real estate taxes payable 61 Total $ 14,406 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Summary of Expenses | The following table details the Company's expenses that are due to its Adviser ($ in thousands): December 31, 2023 December 31, 2022 Organization and offering $ 7,906 $ 6,620 General and administrative 6,895 1,678 Management fee payable 468 — Accrued performance participation allocation 562 — Total $ 15,831 $ 8,298 |
Share Based Payments (Tables)
Share Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Grants, Vesting and Forfeitures of Restricted Common Stock | The following table summarizes the grants, vesting and forfeitures of restricted common stock during the year ended December 31, 2023: Type Restricted Stock Grant Date Fair Value ($ in thousands) Outstanding as of December 31, 2022 — Granted 4,948 $ 100 Vested — — Forfeiture — — Outstanding as of December 31, 2023 4,948 100 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Company's Authorized, Issued and Outstanding Shares | As of December 31, 2023 and December 31, 2022, the Company had the following classes of common stock authorized, issued and outstanding: December 31, 2023 December 31, 2022 Classification Shares Authorized Shares Issued and Outstanding Shares Authorized Shares Issued and Outstanding Preferred Stock, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class S Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class D Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class I Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class F-S Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class F-D Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class F-I Shares, $ 0.01 par value per share 100,000,000 4,820,377 100,000,000 1,823,750 Class A-I Shares, $ 0.01 par value per share 100,000,000 17,016,652 100,000,000 — Class A-II Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class A-III Shares, $ 0.01 par value per share 100,000,000 — 100,000,000 — Class E Shares, $ 0.01 par value per share 100,000,000 105,707 100,000,000 — Total 1,100,000,000 21,942,736 1,100,000,000 1,823,750 |
Schedule of Movement In The Company's Outstanding Shares of Common Stock | The following table details the movement in the Company's outstanding shares of common stock: Class I Class F-I Class A-I Class E Beginning balance, February 18, 2022 (date of initial capitalization) 10,000 — — — Common stock transferred ( 10,000 ) 10,000 — — Common stock issued 1,813,750 December 31, 2022 — 1,823,750 — — Common stock issued — 13,147,002 6,882,222 104,358 Repurchase of common stock — — ( 7,389 ) — Share class transfer — ( 10,185,344 ) 10,126,324 — Dividend reinvestment — 34,969 15,496 1,349 December 31, 2023 — 4,820,377 17,016,652 105,707 |
Schedule of Aggregate Distributions Declared For Each Applicable Class of Common Stock | The following table details the aggregate distributions declared for each applicable class of common stock: Year Ended December 31, 2023 Class F-I Class A-I Class E Aggregate gross distribution declared per share of common stock $ 0.7810 $ 0.7810 $ 0.7810 Management fee per share of common stock ( 0.1510 ) ( 0.1510 ) — Net distribution declared per share of common stock $ 0.6300 $ 0.6300 $ 0.7810 |
Redeemable Non-controlling Interest Activity Related to Adviser | The following table details the redeemable non-controlling interest activity related to the Adviser for the year ended December 31, 2023 ($ in thousands): Adviser Fair Value at November 8, 2023 $ 779 Settlement of management fees 176 GAAP income allocation 13 Distributions ( 8 ) Reinvestment of distributions 7 Fair value allocation - Balance at December 31, 2023 $ 967 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income (Loss) and Weighted Average Number of Shares Outstanding | The Company's net income (loss) and weighted average number of shares outstanding for the years ended December 31, 2023, and the period February 18, 2022 (date of initial capitalization) through December 31, 2022, consists of the following (in thousands except per share information): Basic and Diluted Net Income (Loss) per Share Attributable to ARIS Stockholders Year Ended December 31, For the Period February 18, 2022 (date of initial capitalization) through December 31, 2023 2022 Numerator: Net income (loss) attributable to ARIS stockholders $ 12,759 $ ( 815 ) Denominator: Basic and diluted weighted average shares of common stock outstanding 11,851 67 Basic and diluted net income (loss) per share of common stock $ 1.08 $ ( 12.13 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Total Assets and Financial Results by Segment | The following table sets forth the total assets by segment as of December 31, 2023 ($ in thousands): Real Estate Real Estate Debt Other Corporate Total Total Assets $ 183,492 $ 330,974 $ 95,205 $ 609,671 The following table sets forth the financial results by segment for the year ended December 31, 2023 ($ in thousands): Real Estate Real Estate Debt Other Corporate Total Revenue — Rental revenue $ 6,912 $ — $ — $ 6,912 Total revenues 6,912 — — 6,912 Expenses Rental property operating ( 834 ) — — ( 834 ) Interest expense ( 554 ) ( 554 ) Total segment expenses ( 1,388 ) — — ( 1,388 ) Income from investments in real estate debt — 17,490 — 17,490 Segment net operating income $ 5,524 $ 17,490 $ — $ 23,014 Depreciation and amortization $ ( 2,544 ) $ — $ — $ ( 2,544 ) General and administrative ( 5,380 ) Management fee ( 3,440 ) Performance participation allocation ( 562 ) Other income 6,241 Net income $ 17,329 Net income attributable to non-controlling interests in ARIS OP $ 4,570 Net income attributable to ARIS stockholders $ 12,759 |
Organization and Business Pur_2
Organization and Business Purpose - Additional Information (Details) | 10 Months Ended | 12 Months Ended |
Dec. 31, 2022 Segments shares | Dec. 31, 2023 Investment Property Segments Securities shares | |
Subsidiary, Sale of Stock [Line Items] | ||
Offering of common stock shares | 1,100,000,000 | 1,100,000,000 |
Taxable income distributed to qualify as REIT | 90% | |
Number of property owned by the company | Property | 3 | |
Number of real estate debt investments | Investment | 12 | |
Number of Real estate-related securities | Securities | 14 | |
Number of reportable segments in which the company operates | Segments | 1 | 2 |
Maximum | ||
Subsidiary, Sale of Stock [Line Items] | ||
Offering of common stock shares | 5,000,000,000 | |
Maximum | IPO | ||
Subsidiary, Sale of Stock [Line Items] | ||
Offering of common stock shares | 4,000,000,000 | |
Maximum | Distribution Reinvestment Plan | ||
Subsidiary, Sale of Stock [Line Items] | ||
Offering of common stock shares | 1,000,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Non-controlling interests in operating partnership | $ 101,543,000 | $ 97,721,000 | |
Cash equivalents | 91,300,000 | 0 | |
Unrealized gain (loss) on investments | 200,000 | ||
Organization and offering cost | 7,900,000 | 6,600,000 | |
Offering costs | 6,400,000 | 5,100,000 | |
Assets at fair value | 0 | ||
Organization Costs | $ 1,500,000 | $ 1,500,000 | |
Maximum selling commissions, dealer manager fees and stockholder servicing fees as percentage of gross proceeds from sale of shares | 8.75% | ||
Class S and F-S Shares | |||
Maximum upfront selling commissions percentage | 3% | ||
Maximum dealer manager fees as percentage of transaction price | 0.50% | ||
Maximum selling commissions and dealer manager fees as percentage of transaction price | 3.50% | ||
Stockholder servicing fees percentage per annum of aggregate NAV | 0.85% | ||
Class D and F-D Shares | |||
Maximum upfront selling commissions percentage | 1.50% | ||
Stockholder servicing fees percentage per annum of aggregate NAV | 0.25% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Assets Measured at Fair Value on a Recurring Basis (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Assets: | |
Investments in real estate debt | $ 328,189 |
Fair Value, Recurring | Commercial Real Estate Loans | |
Assets: | |
Investments in real estate debt | 328,189 |
Fair Value, Recurring | Level 2 | Commercial Real Estate Loans | |
Assets: | |
Investments in real estate debt | 302,868 |
Fair Value, Recurring | Level 3 | Commercial Real Estate Loans | |
Assets: | |
Investments in real estate debt | $ 25,321 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Assets Measured at Fair Value on a Recurring Basis Using Level 3 Input (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Assets: | |
Beginning Balance | $ 0 |
Fair Value, Recurring [Member] | Level 3 | |
Assets: | |
Beginning Balance | 0 |
Originations, acquisitions, and add on fundings | 302,668,000 |
Unrealized gain from investments in real estate debt | 200,000 |
Ending Balance | 302,868,000 |
Fair Value, Recurring [Member] | Level 3 | Investments In Real Estates Debt | |
Assets: | |
Beginning Balance | 0 |
Originations, acquisitions, and add on fundings | 302,668,000 |
Unrealized gain from investments in real estate debt | 200,000 |
Ending Balance | $ 302,868,000 |
Summary of Quantitative Inputs
Summary of Quantitative Inputs and Assumptions Used for items Categorized in Level 3 of Fair Value Hierarchy (Details) - Discounted Cash Flow - Investments in Real Estate Debt - Level 3 - Discount Rate $ in Thousands | Dec. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Alternative Investment | $ 302,868 |
Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Rate Range | 8.41 |
Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Rate Range | 10 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Investments in Real Estate Stated at Cost and Generally Depreciated on Straight-Line Basis over Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Buildings | Maximum | |
Real Estate Properties [Line Items] | |
Depreciable Life | 50 years |
Buildings | Minimum | |
Real Estate Properties [Line Items] | |
Depreciable Life | 39 years |
Buildings and land Improvements | Maximum | |
Real Estate Properties [Line Items] | |
Depreciable Life | 15 years |
Buildings and land Improvements | Minimum | |
Real Estate Properties [Line Items] | |
Depreciable Life | 10 years |
Lease intangibles and Leasehold Improvements | |
Real Estate Properties [Line Items] | |
Lease term, Depreciable Life | Lease term |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Selling Commissions, Dealer Manager Fees, and Stockholder Servicing Fees for each Applicable Share Class (Details) | Dec. 31, 2023 |
Common Class S [Member] | |
Stockholder servicing fee (Percentage of NAV) | 0.85% |
Common Class S [Member] | Maximum | |
Selling commissions and dealer manager fees (% of transaction price) | 3.50% |
Common Class D [Member] | |
Stockholder servicing fee (Percentage of NAV) | 0.25% |
Common Class D [Member] | Maximum | |
Selling commissions and dealer manager fees (% of transaction price) | 1.50% |
Common Class F-S [Member] | |
Stockholder servicing fee (Percentage of NAV) | 0.85% |
Common Class F-S [Member] | Maximum | |
Selling commissions and dealer manager fees (% of transaction price) | 3.50% |
Common Class F-D [Member] | |
Stockholder servicing fee (Percentage of NAV) | 0.25% |
Common Class F-D [Member] | Maximum | |
Selling commissions and dealer manager fees (% of transaction price) | 1.50% |
Investments in Real Estate - Su
Investments in Real Estate - Summary of Investments in Real Estate, Net (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Real Estate Investments, Net [Abstract] | |
Building and building improvements | $ 132,792 |
Land and land improvements | 22,707 |
Tenant improvements | 621 |
Total | 156,120 |
Accumulated depreciation | (1,607) |
Investment in real estate, net | $ 154,513 |
Investments in Real Estate - _2
Investments in Real Estate - Summary of Acquired Properties Qualified as Asset Acquisitions (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Real Estate Properties [Line Items] | |
Purchase Price | $ 171,332 |
Rickenbacker | |
Real Estate Properties [Line Items] | |
Property Type | Industrial |
Acquisition Date | 2023-01 |
Purchase Price | $ 49,214 |
16000 Pines | |
Real Estate Properties [Line Items] | |
Property Type | Retail |
Acquisition Date | 2023-08 |
Purchase Price | $ 56,715 |
Hallmark | |
Real Estate Properties [Line Items] | |
Property Type | Industrial |
Acquisition Date | 2023-10 |
Purchase Price | $ 65,403 |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Details) - Property | 10 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2023 | |
Real Estate Properties [Line Items] | ||
Number of properties acquired | 0 | |
Amortization period for intangibles of property | 13 years |
Investments in Real Estate - _3
Investments in Real Estate - Summary of Purchase Price Allocation for Property Acquired (Details) - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Real Estate Properties [Line Items] | ||
Total purchase price | $ 5,000 | $ 166,332 |
Below-market lease intangibles | (10,855) | |
Total purchase price | 171,332 | |
Building and Building Improvements | ||
Real Estate Properties [Line Items] | ||
Total purchase price | 132,792 | |
Land and Land Improvements | ||
Real Estate Properties [Line Items] | ||
Total purchase price | 22,707 | |
In-Place Lease Intangibles | ||
Real Estate Properties [Line Items] | ||
Total purchase price | 26,363 | |
Above-Market Lease Intangibles | ||
Real Estate Properties [Line Items] | ||
Total purchase price | $ 325 |
Investments in Real Estate De_3
Investments in Real Estate Debt - Summary of Company's Investments in Real Estate Debt (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) Positions | |
Real Estate [Line Items] | |
Number of Position | Positions | 26 |
Weighted Average Coupon | 9.30% |
Weighted Average Maturity Date | 2028-04 |
Face Amount | $ 328,679 |
Cost Basis | 327,983 |
Fair Value | $ 328,189 |
Commercial Real Estate Loan | |
Real Estate [Line Items] | |
Number of Position | Positions | 11 |
Weighted Average Coupon | 9.10% |
Weighted Average Maturity Date | 2027-09 |
Face Amount | $ 252,868 |
Cost Basis | 252,668 |
Fair Value | $ 252,868 |
Mezzanine Loans | |
Real Estate [Line Items] | |
Number of Position | Positions | 1 |
Weighted Average Coupon | 10% |
Weighted Average Maturity Date | 2026-09 |
Face Amount | $ 50,000 |
Cost Basis | 50,000 |
Fair Value | $ 50,000 |
Real Estate-related Securities | |
Real Estate [Line Items] | |
Number of Position | Positions | 14 |
Weighted Average Coupon | 7% |
Weighted Average Maturity Date | 2037-05 |
Face Amount | $ 25,811 |
Cost Basis | 25,314 |
Fair Value | $ 25,321 |
Investments in Real Estate De_4
Investments in Real Estate Debt (Additional Information) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Real Estate [Line Items] | |
Unrealized gain (loss) on investments | $ 0.2 |
Minimum | |
Real Estate [Line Items] | |
Real estate related securities maturity period | 10 years |
Investments in Real Estate De_5
Investments in Real Estate Debt - Schedule of Mortgage Loans by Property Type and Geographic Distribution (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 302,868 | [1],[2] |
Percentage of portfolio | 100% | |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 110,670 | |
Percentage of portfolio | 36.60% | |
Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 91,292 | |
Percentage of portfolio | 30.10% | |
Hotel | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 48,795 | |
Percentage of portfolio | 16.10% | |
Data Center | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 40,651 | |
Percentage of portfolio | 13.40% | |
Self-Storage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 8,884 | |
Percentage of portfolio | 2.90% | |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 2,576 | |
Percentage of portfolio | 0.90% | |
Northeast | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 169,829 | |
Percentage of portfolio | 56.10% | |
Mid-Atlantic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 44,166 | |
Percentage of portfolio | 14.60% | |
West | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 32,841 | |
Percentage of portfolio | 10.80% | |
Southeast | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 27,582 | |
Percentage of portfolio | 9.10% | |
Southwest | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 18,400 | |
Percentage of portfolio | 6.10% | |
Midwest | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 10,050 | |
Percentage of portfolio | 3.30% | |
[1] The aggregate cost for U.S. federal income tax purposes is $ 302.9 million. No prior tax liens or delinquent interest exists on any of the Company's commercial real estate loans. |
Other Assets - Summary of Compo
Other Assets - Summary of Components of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Total | $ 31,764 | $ 5,000 |
Real Estate Intangibles, Net | ||
Total | 25,734 | |
Deposits | ||
Total | $ 5,000 | |
Straight-Line Rent Receivable | ||
Total | 1,425 | |
Interest Receivable | ||
Total | 1,727 | |
Other | ||
Total | 1,821 | |
Deferred Financing Costs, Net | ||
Total | $ 1,057 |
Intangibles (Additional Informa
Intangibles (Additional Information) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets | $ 25,734,000 | $ 0 |
Intangibles - Summary of Gross
Intangibles - Summary of Gross Carrying Amount and Accumulated Amortization (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets gross | $ 26,688,000 | |
Total real estate intangible assets, net | 25,734,000 | $ 0 |
Intangible liabilities gross | (10,855,000) | |
Total real estate intangible liabilities, net | (10,629,000) | |
In-Place Lease Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets gross | 26,363,000 | |
Accumulated amortization | (937,000) | |
Total real estate intangible assets, net | 25,426,000 | |
Above-Market Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets gross | 325,000 | |
Accumulated amortization | (17,000) | |
Total real estate intangible assets, net | 308,000 | |
Below-Market Lease Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total real estate intangible assets, net | (10,629,000) | |
Intangible liabilities gross | (10,855,000) | |
Accumulated amortization | $ 226,000 |
Intangibles - Summary of Estima
Intangibles - Summary of Estimated Future Amortization (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total real estate intangible assets, net | $ 25,734,000 | $ 0 |
In-Place Lease Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
2024 | 2,155,000 | |
2025 | 2,126,000 | |
2026 | 2,126,000 | |
2027 | 2,126,000 | |
2028 | 2,093,000 | |
Thereafter | 14,800,000 | |
Total real estate intangible assets, net | 25,426,000 | |
Above-Market Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
2024 | 29,000 | |
2025 | 29,000 | |
2026 | 29,000 | |
2027 | 29,000 | |
2028 | 29,000 | |
Thereafter | 163,000 | |
Total real estate intangible assets, net | 308,000 | |
Below-Market Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
2024 | (775,000) | |
2025 | (775,000) | |
2026 | (775,000) | |
2027 | (775,000) | |
2028 | (756,000) | |
Thereafter | (6,773,000) | |
Total real estate intangible assets, net | $ (10,629,000) |
Mortgage Notes - Additional Inf
Mortgage Notes - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Non-amortizing, mortgage loan | $ 36,000,000 |
Mortgage loan, fixed interest rate | 6.05% |
Mortgage loan, maturity date | November 2028 |
Repayments on mortgage loan | $ 0 |
Mortgage loan, term | five year |
Deferred financing cost | $ 500,000 |
Amortization of deferred financing cost | $ 15,000 |
Leases - Additional Information
Leases - Additional Information (Details) | Dec. 31, 2022 Lease |
Leases [Abstract] | |
Number of leases | 0 |
Leases - Summary of Fixed and V
Leases - Summary of Fixed and Variable Components of Company's Operating Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Leases [Abstract] | |
Fixed lease payments | $ 5,879 |
Variable lease payments | 824 |
Lease Revenue | $ 6,703 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Rental Revenue |
Above- and below-market lease amortization, net | $ 209 |
Rental Revenue | $ 6,912 |
Leases - Summary of Undiscounte
Leases - Summary of Undiscounted Future Minimum Rents Company Expects to Receive for its Industrial Property (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 10,813 |
2025 | 10,952 |
2026 | 11,214 |
2027 | 11,531 |
2028 | 11,802 |
Thereafter | 84,314 |
Total | $ 140,626 |
Secured Financings on Investm_2
Secured Financings on Investments in Real Estate Debt - Additional Information (Details) - Master Repurchase Agreement - USD ($) | 1 Months Ended | 12 Months Ended |
Oct. 31, 2023 | Dec. 31, 2023 | |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Aggregate purchase price under repurchase agreement | $ 250,000,000 | |
Repurchase agreement term | 3 years | |
Repurchase agreement term extension options | two one-year extension options | |
Outstanding borrowings under repurchase agreement | $ 0 | |
Cost incurred under repurchase agreement | $ 1,200,000 | |
Amortization under repurchase agreement | $ 200,000 |
Other Liabilities - Summary of
Other Liabilities - Summary of Company's Other Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Other Liabilities [Abstract] | |
Below market lease intangibles, net | $ 10,629 |
Dividends Payable | 1,900 |
Accounts payable and accrued expenses | 1,816 |
Real estate taxes payable | 61 |
Total | $ 14,406 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 10 Months Ended | 12 Months Ended | 41 Months Ended | 45 Months Ended | ||||
Dec. 22, 2022 | Nov. 29, 2022 | Feb. 18, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | Sep. 01, 2026 | Jan. 02, 2027 | Nov. 11, 2022 | |
Related Party Transaction [Line Items] | ||||||||
Cost of legal services | $ 33,000 | |||||||
Performance participation allocation accrued | $ 600,000 | |||||||
Maximum selling commissions, dealer manager fees and stockholder servicing fees as percentage of gross proceeds from sale of shares | 8.75% | |||||||
Investments | $ 0 | |||||||
Exchange of shares | 1,823,750 | 21,942,736 | ||||||
Aggregate consideration | $ 36,275,000 | $ 407,608,000 | ||||||
Other liabilities | 14,406,000 | |||||||
Management fee | $ 3,440,000 | |||||||
Apollo ARIS Holdings LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Aggregate consideration | $ 200,000 | |||||||
Class S, D and I Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of total return | 12.50% | |||||||
Hurdle amount percentage | 5% | |||||||
Class F-S, F-D and F-I Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of total return | 9% | |||||||
Hurdle amount percentage | 5% | |||||||
Class S and F-S Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Maximum dealer manager fees as percentage of transaction price | 0.50% | |||||||
Maximum selling commissions and dealer manager fees as percentage of transaction price | 3.50% | |||||||
Class E Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Upfront selling costs, ongoing servicing costs, management fee or performance participation allocation | $ 0 | |||||||
Exchange of shares | 105,707 | |||||||
Distribution reinvestments, shares | 1,349 | |||||||
Shares issued as payment for management fees | 45,687 | |||||||
Common Stock - Class I Shares | Apollo ARIS Holdings LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Exchange of shares | 10,000 | 10,000 | ||||||
Common stock - Class F-I Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Exchange of shares | 1,823,750 | 4,820,377 | ||||||
Distribution reinvestments, shares | 34,969 | |||||||
Common stock - Class F-I Shares | Apollo ARIS Holdings LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Exchange of shares | 10,000 | |||||||
Distribution reinvestments, shares | 279 | |||||||
Class A-I Operating Partnership Units | ||||||||
Related Party Transaction [Line Items] | ||||||||
Exchange of shares | 5,000,000 | 5,000,000 | ||||||
Aggregate consideration | $ 100,000,000 | $ 100,000,000 | ||||||
Distribution reinvestments, shares | 120,790 | |||||||
Class E Operating Partnership Units | ||||||||
Related Party Transaction [Line Items] | ||||||||
Distribution reinvestments, shares | 859 | |||||||
Unregistered Class E Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Distribution reinvestments, shares | 1,349 | |||||||
Unregistered Class E Units | ||||||||
Related Party Transaction [Line Items] | ||||||||
Distribution reinvestments, shares | 859 | |||||||
Adviser | Class S, D and I Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of management fee payment of NAV per annum | 1.25% | |||||||
Adviser | Class F-S, F-D and F-I Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of management fee payment of NAV per annum | 1% | |||||||
Adviser | Class A-II Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of management fee payment of NAV per annum | 1% | |||||||
Adviser | Class A-II Shares | Forecast | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of management fee payment of net asset value per annum reduced | 0.92% | |||||||
Adviser | Class A-III Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of management fee payment of NAV per annum | 1% | |||||||
Adviser | Class A-III Shares | Forecast | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of management fee payment of net asset value per annum reduced | 0.85% | |||||||
Adviser | Unregistered Class E Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Shares issued as payment for management fees | 99,410 | |||||||
Adviser | Unregistered Class E Units | ||||||||
Related Party Transaction [Line Items] | ||||||||
Shares issued as payment for management fees | 45,687 | |||||||
Apollo Global Securities, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Maximum selling commissions, dealer manager fees and stockholder servicing fees as percentage of gross proceeds from sale of shares | 8.75% | |||||||
Apollo Global Securities, LLC | Class S and F-S Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Maximum selling commissions as percentage of transaction price | 3% | |||||||
Maximum dealer manager fees as percentage of transaction price | 0.50% | |||||||
Maximum selling commissions and dealer manager fees as percentage of transaction price | 3.50% | |||||||
Stockholder servicing fee as percentage of NAV | 0.85% | |||||||
Apollo Global Securities, LLC | Class D and F-D Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Maximum selling commissions as percentage of transaction price | 1.50% | |||||||
Stockholder servicing fee as percentage of NAV | 0.25% | |||||||
Apollo Global Securities, LLC | Class I and F-I Shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Stockholder servicing fee | $ 0 | |||||||
Upfront selling commission | 0 | |||||||
Dealer manager fee | 0 | |||||||
Organization and Offering | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Other liabilities | 7,900,000 | |||||||
General and Administrative | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Other liabilities | $ 6,900,000 |
Related Party Transactions - Su
Related Party Transactions - Summary of Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Other Liabilities | $ 14,406 | |
Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Other liabilities | 15,831 | $ 8,298 |
Organization and Offering | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Other Liabilities | 7,900 | |
Other liabilities | 7,906 | 6,620 |
General and Administrative | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Other Liabilities | 6,900 | |
Other liabilities | 6,895 | $ 1,678 |
Management Fee Payable | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Other liabilities | 468 | |
Accrued Performance Participation Allocation | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Other liabilities | $ 562 |
Share Based Payments - Addition
Share Based Payments - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Amortization of restricted stock grants | $ 75 |
Restricted Stock | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of restricted stock issued | shares | 4,948 |
Share based compensation, description | The fair value of these shares was determined using the most recently available NAV and they are subject to a one year vesting period |
Amortization of restricted stock grants | $ 75 |
Unrecognized compensation cost | $ 25 |
2022 Equity Incentive Plan | Maximum | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of maximum shares of common stock to be issued | shares | 10,000,000 |
Share Based Payments - Summary
Share Based Payments - Summary of Grants, Vesting and Forfeitures of Restricted Common Stock (Details) - Restricted Stock $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of restricted stock issued | shares | 4,948 |
Outstanding, ending balance (in shares) | shares | 4,948 |
Granted, Grant Date Fair Value | $ | $ 100 |
Grant Date Fair Value, ending balance | $ | $ 100 |
Equity - Schedule of Company's
Equity - Schedule of Company's Authorized, Issued and Outstanding Shares (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 18, 2022 |
Subsidiary, Sale of Stock [Line Items] | |||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, shares authorized | 1,100,000,000 | 1,100,000,000 | |
Common stock, shares issued | 21,942,736 | 1,823,750 | |
Common stock, shares outstanding | 21,942,736 | 1,823,750 | |
Common Stock - Class S Shares | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common Stock - Class D Shares | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common Stock - Class I Shares | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, shares outstanding | 10,000 | ||
Common Stock - Class F-S Shares | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common Stock - Class F-D Shares | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock - Class F-I Shares | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, shares issued | 4,820,377 | 1,823,750 | |
Common stock, shares outstanding | 4,820,377 | 1,823,750 | |
Common Stock - Class A-I Shares | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, shares issued | 17,016,652 | ||
Common stock, shares outstanding | 17,016,652 | ||
Common Stock - Class A-II Shares | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common Stock - Class A-III Shares | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common Stock - Class E Shares | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, shares issued | 105,707 | ||
Common stock, shares outstanding | 105,707 |
Equity - Schedule of Company'_2
Equity - Schedule of Company's Authorized, Issued and Outstanding Shares (Parenthetical) (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Subsidiary, Sale of Stock [Line Items] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Common stock, par value | 0.01 | $ 0.01 |
Common Stock - Class S Shares | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, par value | 0.01 | |
Common Stock - Class D Shares | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, par value | 0.01 | |
Common Stock - Class I Shares | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, par value | 0.01 | |
Common Stock - Class F-S Shares | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, par value | 0.01 | |
Common Stock - Class F-D Shares | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, par value | 0.01 | |
Common stock - Class F-I Shares | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, par value | 0.01 | |
Common Stock - Class A-I Shares | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, par value | 0.01 | |
Common Stock - Class A-II Shares | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, par value | 0.01 | |
Common Stock - Class A-III Shares | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, par value | 0.01 | |
Common Stock - Class E Shares | ||
Subsidiary, Sale of Stock [Line Items] | ||
Common stock, par value | $ 0.01 |
Equity - Schedule of Movement I
Equity - Schedule of Movement In The Company's Outstanding Shares Of Common Stock (Details) - shares | 10 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Class of Stock [Line Items] | ||
Beginning balance | 1,823,750 | |
Ending balance | 1,823,750 | 21,942,736 |
Class I | ||
Class of Stock [Line Items] | ||
Beginning balance | 10,000 | |
Common stock transferred/Share class transfer | (10,000) | |
Class F-I | ||
Class of Stock [Line Items] | ||
Beginning balance | 1,823,750 | |
Common stock transferred/Share class transfer | 10,000 | (10,185,344) |
Common stock issued | 1,813,750 | 13,147,002 |
Dividend reinvestment | 34,969 | |
Ending balance | 1,823,750 | 4,820,377 |
Class A-I | ||
Class of Stock [Line Items] | ||
Common stock transferred/Share class transfer | 10,126,324 | |
Common stock issued | 6,882,222 | |
Repurchase of common stock | (7,389) | |
Dividend reinvestment | 15,496 | |
Ending balance | 17,016,652 | |
Class E | ||
Class of Stock [Line Items] | ||
Common stock issued | 104,358 | |
Dividend reinvestment | 1,349 | |
Ending balance | 105,707 |
Equity - Additional Information
Equity - Additional Information (Details) $ in Thousands | 10 Months Ended | 12 Months Ended | ||||||
Nov. 02, 2023 shares | Apr. 04, 2023 shares | Dec. 22, 2022 USD ($) shares | Nov. 29, 2022 USD ($) shares | Feb. 18, 2022 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2023 USD ($) Request shares | Nov. 11, 2022 shares | |
Class of Stock [Line Items] | ||||||||
Common stock, shares issued | 1,823,750 | 21,942,736 | ||||||
Aggregate consideration | $ | $ 36,275 | $ 407,608 | ||||||
Shares repurchased amount | $ | $ 151 | |||||||
Number of unfulfilled repurchase requests | Request | 0 | |||||||
Apollo ARIS Holdings LLC | ||||||||
Class of Stock [Line Items] | ||||||||
Aggregate consideration | $ | $ 200 | |||||||
Class A-I Operating Partnership Units | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares issued | 5,000,000 | 5,000,000 | ||||||
Aggregate consideration | $ | $ 100,000 | $ 100,000 | ||||||
Distribution reinvestments, shares | 120,790 | |||||||
Common Stock - Class I Shares | Apollo ARIS Holdings LLC | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares issued | 10,000 | 10,000 | ||||||
Common Stock - Class A-I Shares | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares issued | 17,016,652 | |||||||
Common stock not issued | 6,882,222 | |||||||
Number of shares exchanged | 4,973,617 | 5,152,707 | ||||||
Shares repurchased | 7,389 | |||||||
Shares repurchased amount | $ | $ 200 | |||||||
Distribution reinvestments, shares | 15,496 | |||||||
Common Stock - Class E Shares | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares issued | 105,707 | |||||||
Shares issued as payment for management fees | 45,687 | |||||||
Common stock not issued | 104,358 | |||||||
Distribution reinvestments, shares | 1,349 | |||||||
Common stock - Class F-I Shares | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares issued | 1,823,750 | 4,820,377 | ||||||
Common stock not issued | 1,813,750 | 13,147,002 | ||||||
Number of shares exchanged | 5,022,403 | 5,162,941 | ||||||
Distribution reinvestments, shares | 34,969 | |||||||
Common stock - Class F-I Shares | Apollo ARIS Holdings LLC | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares issued | 10,000 | |||||||
Distribution reinvestments, shares | 279 | |||||||
Class E Operating Partnership Units | ||||||||
Class of Stock [Line Items] | ||||||||
Distribution reinvestments, shares | 859 |
Equity - Schedule of Aggregate
Equity - Schedule of Aggregate Distributions Declared For Each Applicable Class of Common Stock (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares | |
Class F-I | |
Dividends Payable [Line Items] | |
Aggregate gross distribution declared per share of common stock | $ 0.781 |
Management fee per share of common stock | (0.151) |
Net distribution declared per share of common stock | 0.63 |
Class A-I | |
Dividends Payable [Line Items] | |
Aggregate gross distribution declared per share of common stock | 0.781 |
Management fee per share of common stock | (0.151) |
Net distribution declared per share of common stock | 0.63 |
Class E | |
Dividends Payable [Line Items] | |
Aggregate gross distribution declared per share of common stock | 0.781 |
Net distribution declared per share of common stock | $ 0.781 |
Equity - Redeemable Non-control
Equity - Redeemable Non-controlling Interest Activity Related to Adviser (Details) - Adviser [Member] $ in Thousands | 2 Months Ended |
Dec. 31, 2023 USD ($) | |
Redeemable Noncontrolling Interest [Line Items] | |
Beginning balance | $ 779 |
Settlement of management fees | 176 |
GAAP income allocation | 13 |
Distributions | (8) |
Reinvestment of distributions | 7 |
Ending balance | $ 967 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Net Income (Loss) and Weighted Average Number of Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 10 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Numerator: | ||
Net income (loss) attributable to ARIS stockholders | $ (815) | $ 12,759 |
Denominator: | ||
Weighted-average shares of common stock outstanding, basic | 67,216 | 11,850,738 |
Weighted-average shares of common stock outstanding, diluted | 67,216 | 11,850,738 |
Net income (loss) per share of common stock, basic | $ (12.13) | $ 1.08 |
Net income (loss) per share of common stock, diluted | $ (12.13) | $ 1.08 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Unfunded commitments related to investments | $ 258.1 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 10 Months Ended | 12 Months Ended |
Dec. 31, 2022 USD ($) Segments | Dec. 31, 2023 Segments | |
Segment Reporting [Abstract] | ||
Number of reportable segments in which the company operates | Segments | 1 | 2 |
Investments | $ | $ 0 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Total Assets and Financial Results by Segment (Details) - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | ||
Segment Reporting Information [Line Items] | ||||
Total Assets | [1] | $ 136,589 | $ 136,589 | $ 609,671 |
Revenues | ||||
Total revenues | 6,912 | |||
Expenses | ||||
Total segment expenses | (1,388) | |||
Income from investments in real estate debt | 17,490 | |||
Segment net operating income | 23,014 | |||
Depreciation and amortization | (2,544) | |||
General and administrative | (1,678) | (5,380) | ||
Management fee | (3,440) | |||
Performance participation allocation | (562) | |||
Other income | 6,241 | |||
Net income (loss) | $ (3,051) | (3,051) | 17,329 | |
Net income attributable to non-controlling interests in ARIS OP | (2,236) | 4,570 | ||
Net income attributable to ARIS stockholders | $ (815) | 12,759 | ||
Interest expense | ||||
Expenses | ||||
Total segment expenses | (554) | |||
Rental Property | ||||
Revenues | ||||
Total revenues | 6,912 | |||
Expenses | ||||
Total segment expenses | (834) | |||
Operating Segments | Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 183,492 | |||
Revenues | ||||
Total revenues | 6,912 | |||
Expenses | ||||
Total segment expenses | (1,388) | |||
Segment net operating income | 5,524 | |||
Depreciation and amortization | (2,544) | |||
Operating Segments | Real Estate | Interest expense | ||||
Expenses | ||||
Total segment expenses | (554) | |||
Operating Segments | Real Estate | Rental Property | ||||
Revenues | ||||
Total revenues | 6,912 | |||
Expenses | ||||
Total segment expenses | (834) | |||
Operating Segments | Real Estate Debt | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 330,974 | |||
Expenses | ||||
Income from investments in real estate debt | 17,490 | |||
Segment net operating income | 17,490 | |||
Other Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | $ 95,205 | |||
[1] Represents the consolidated assets and liabilities of ARIS Operating Partnership L.P., a Delaware limited partnership (the "Operating Partnership"). The Operating Partnership is a consolidated variable interest entity ("VIE"), of which the Company is the sole general partner and owns approximately 81 % and 27 % as of December 31, 2023 and December 31, 2022, respectively. See "Note 2 — Summary of Significant Accounting Policies " for additional information. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Millions | Jan. 01, 2024 | Dec. 31, 2023 |
Subsequent Event [Line Items] | ||
First mortgage to finance construction | $ 36 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Debt instrument add-on fundings for loans | $ 79.7 | |
Subsequent Event | Data Center | ||
Subsequent Event [Line Items] | ||
First mortgage to finance construction | 85 | |
Debt instrument funded amount | 20.3 | |
Subsequent Event | Hotel | ||
Subsequent Event [Line Items] | ||
First mortgage to finance construction | 50 | |
Debt instrument funded amount | $ 45.1 |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Property | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Encumbrances | $ 36,000 | |
Initial Cost | ||
Land and Land Improvements | 22,707 | |
Building and Building Improvements | 132,792 | |
Costs Capitalized Subsequent to Acquisition | ||
Building and Building Improvements | 621 | |
Gross Amounts at which Carried at the Close of Period | ||
Land and Land Improvements | 22,707 | [1] |
Building and Building Improvements | 133,413 | [1] |
Total | 156,120 | |
Accumulated Depreciation | (1,607) | [2] |
Industrial Properties | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Encumbrances | 36,000 | |
Initial Cost | ||
Land and Land Improvements | 7,006 | |
Building and Building Improvements | 94,610 | |
Costs Capitalized Subsequent to Acquisition | ||
Building and Building Improvements | 621 | |
Gross Amounts at which Carried at the Close of Period | ||
Land and Land Improvements | 7,006 | [1] |
Building and Building Improvements | 95,231 | [1] |
Total | 102,237 | |
Accumulated Depreciation | $ (1,223) | [2] |
Industrial Properties | Rickenbacker | Columbus, OH | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Number of Properties | Property | 1 | |
Initial Cost | ||
Land and Land Improvements | $ 1,491 | |
Building and Building Improvements | 40,496 | |
Costs Capitalized Subsequent to Acquisition | ||
Building and Building Improvements | 621 | |
Gross Amounts at which Carried at the Close of Period | ||
Land and Land Improvements | 1,491 | [1] |
Building and Building Improvements | 41,117 | [1] |
Total | 42,608 | |
Accumulated Depreciation | $ (883) | [2] |
Year Acquired | Dec. 31, 2023 | |
Industrial Properties | Hallmark | Liberty, MO | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Number of Properties | Property | 1 | |
Encumbrances | $ 36,000 | |
Initial Cost | ||
Land and Land Improvements | 5,515 | |
Building and Building Improvements | 54,114 | |
Gross Amounts at which Carried at the Close of Period | ||
Land and Land Improvements | 5,515 | [1] |
Building and Building Improvements | 54,114 | [1] |
Total | 59,629 | |
Accumulated Depreciation | $ (340) | [2] |
Year Acquired | Dec. 31, 2023 | |
Retail Properties | ||
Initial Cost | ||
Land and Land Improvements | $ 15,701 | |
Building and Building Improvements | 38,182 | |
Gross Amounts at which Carried at the Close of Period | ||
Land and Land Improvements | 15,701 | [1] |
Building and Building Improvements | 38,182 | [1] |
Total | 53,883 | |
Accumulated Depreciation | $ (384) | [2] |
Retail Properties | 16000 Pines | Pembroke Pines, FL | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||
Number of Properties | Property | 1 | |
Initial Cost | ||
Land and Land Improvements | $ 15,701 | |
Building and Building Improvements | 38,182 | |
Gross Amounts at which Carried at the Close of Period | ||
Land and Land Improvements | 15,701 | [1] |
Building and Building Improvements | 38,182 | [1] |
Total | 53,883 | |
Accumulated Depreciation | $ (384) | [2] |
Year Acquired | Dec. 31, 2023 | |
[1] As of December 31, 2023, the aggregate cost basis for tax purposes was $ 169.1 million. Refer to Note 2 of the Company's consolidated financial statements for details on depreciable lives. |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Aggregate Cost | $ 169.1 |
Schedule III - Real Estate an_4
Schedule III - Real Estate and Accumulated Depreciation - Summary of Activity for Real Estate and Accumulated Depreciation (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | ||
Balance at the end of the year | $ 156,120 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | ||
Accumulated depreciation | (1,607) | |
Balance at the end of the year | (1,607) | [1] |
Land and Land Improvements | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | ||
Additions during the year | 22,707 | |
Building and Building Improvements | ||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | ||
Additions during the year | $ 133,413 | |
[1] Refer to Note 2 of the Company's consolidated financial statements for details on depreciable lives. |
Schedule IV - Mortgage Loans _2
Schedule IV - Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Contract | [2] | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | $ 302,868 | [1] |
Fair Value | $ 302,868 | [1] |
Commercial mortgage loans individually >3% Loan A Industrial Northeast | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Contractual Interest Rate | 9.40% | [3] |
Principal Balance | $ 41,292 | |
Fair Value | $ 41,292 | [4] |
Commercial mortgage loans individually >3% Loan B Multifamily Northeast | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Contractual Interest Rate | 9.70% | [3] |
Principal Balance | $ 34,670 | |
Fair Value | $ 34,670 | [4] |
Commercial mortgage loans individually >3% Loan C Other Mid-Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Contractual Interest Rate | 9.50% | [3] |
Principal Balance | $ 40,651 | |
Fair Value | $ 40,651 | [4] |
Commercial mortgage loans individually >3% Loan D Hotel Various | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Contractual Interest Rate | 9.50% | [3] |
Principal Balance | $ 25,000 | |
Fair Value | $ 25,000 | [4] |
Commercial mortgage loans individually >3% Loan E Hotel Various | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Contractual Interest Rate | 9.10% | [3] |
Principal Balance | $ 23,795 | |
Fair Value | $ 23,795 | [4] |
Commercial mortgage loans individually >3% Loan F Multifamily Northeast | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Contractual Interest Rate | 9% | [3] |
Principal Balance | $ 26,000 | |
Fair Value | $ 26,000 | [4] |
Commercial mortgage loans individually >3% Loan G Multifamily Northeast | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Contractual Interest Rate | 8.40% | [3] |
Principal Balance | $ 50,000 | |
Fair Value | $ 50,000 | [4] |
Commercial mortgage loans individually less than 3% First Mortgage Other Various | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Number of Loans | Contract | 4 | |
Principal Balance | $ 11,460 | |
Fair Value | $ 11,460 | [4] |
Commercial mortgage loans individually less than 3% First Mortgage Other Various | Minimum | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Contractual Interest Rate | 8.60% | [3] |
Commercial mortgage loans individually less than 3% First Mortgage Other Various | Maximum | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Contractual Interest Rate | 9.40% | [3] |
Total Commercial mortgage loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | $ 252,868 | |
Fair Value | $ 252,868 | [4] |
Subordinate loans individually >3% Subordinate Industrial Various | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Number of Loans | Contract | 1 | |
Contractual Interest Rate | 10% | [3] |
Principal Balance | $ 50,000 | |
Fair Value | 50,000 | |
Total Subordinate loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 50,000 | |
Fair Value | $ 50,000 | |
[1] The aggregate cost for U.S. federal income tax purposes is $ 302.9 million. No prior tax liens or delinquent interest exists on any of the Company's commercial real estate loans. Assumes applicable benchmark rates as of December 31, 2023 for all floating rate loans. There are no delinquent principal or interest on any loan as of December 31, 2023. |
Schedule IV - Mortgage Loans _3
Schedule IV - Mortgage Loans on Real Estate (Parenthetical) (Details) | Dec. 31, 2023 USD ($) |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Prior tax liens or delinquent interest | $ 0 |
Aggregate cost for U.S. federal income tax purposes | 302,900,000 |
Delinquent principal or interest | $ 0 |
Schedule IV - Mortgage Loans _4
Schedule IV - Mortgage Loans on Real Estate - Summary of Reconciliation of Balance Sheet Reported Amount of Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Balance at beginning of year | $ 302,468 |
Unrealized gain on fair value | 200 |
Amortization of fees and other items | 200 |
Balance at the close of year | $ 302,868 |