Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 10, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-13610 | ||
Entity Registrant Name | CREATIVE MEDIA & COMMUNITY TRUST CORPORATION | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 75-6446078 | ||
Entity Address, Address Line One | 17950 Preston Road, | ||
Entity Address, Address Line Two | Suite 600, | ||
Entity Address, City or Town | Dallas, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75252 | ||
City Area Code | (972) | ||
Local Phone Number | 349-3200 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 126.1 | ||
Entity Common Stock, Shares Outstanding | 23,369,331 | ||
Documents Incorporated by Reference | Part III of this Annual Report on Form 10-K incorporates by reference specified portions of Creative Media & Community Trust Corporation’s Proxy Statement for its 2022 Annual Meeting of Stockholders, which the registrant anticipates will be filed with the Securities and Exchange Commission no later than April 30, 2022. | ||
Entity Central Index Key | 0000908311 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Common Stock, $0.001 Par Value | Nasdaq Global Market | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.001 Par Value | ||
Trading Symbol | CMCT | ||
Security Exchange Name | NASDAQ | ||
Common Stock, $0.001 Par Value | Tel Aviv Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.001 Par Value | ||
Trading Symbol | CMCT-L | ||
Series L Preferred Stock, $0.001 Par Value | Nasdaq Global Market | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Series L Preferred Stock, $0.001 Par Value | ||
Trading Symbol | CMCTP | ||
Security Exchange Name | NASDAQ | ||
Series L Preferred Stock, $0.001 Par Value | Tel Aviv Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Series L Preferred Stock, $0.001 Par Value | ||
Trading Symbol | CMCTP |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Los Angeles, CA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Investments in real estate, net | $ 497,984 | $ 506,040 |
Cash and cash equivalents | 22,311 | 33,636 |
Restricted cash | 11,340 | 10,013 |
Loans receivable, net | 73,543 | 83,135 |
Accounts receivable, net | 3,396 | 1,737 |
Deferred rent receivable and charges, net | 36,095 | 35,956 |
Other intangible assets, net | 5,251 | 6,313 |
Other assets | 10,946 | 8,787 |
TOTAL ASSETS | 660,866 | 685,617 |
LIABILITIES: | ||
Debt, net | 201,145 | 324,313 |
Accounts payable and accrued expenses | 26,751 | 20,327 |
Intangible liabilities, net | 237 | 587 |
Due to related parties | 4,541 | 6,706 |
Other liabilities | 16,861 | 9,733 |
Total liabilities | 249,535 | 361,666 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
EQUITY: | ||
Common stock, $0.001 par value; 900,000,000 shares authorized; 23,369,331 and 14,827,410 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively | 24 | 15 |
Additional paid-in capital | 866,746 | 794,127 |
Distributions in excess of earnings | (804,227) | (778,519) |
Total stockholders’ equity | 373,204 | 277,659 |
Noncontrolling interests | 345 | 455 |
Total equity | 373,549 | 278,114 |
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY | 660,866 | 685,617 |
Series A Preferred Stock | ||
LIABILITIES: | ||
REDEEMABLE PREFERRED STOCK: Series A cumulative redeemable preferred stock, $0.001 par value; 36,000,000 shares authorized; 1,633,965 and 1,631,965 shares issued and outstanding, respectively, as of December 31, 2021 and 2,008,256 and 2,007,856 shares issued and outstanding, respectively, as of December 31, 2020; liquidation preference of $25.00 per share, subject to adjustment | 37,782 | 45,837 |
Series A Cumulative Preferred Stock | ||
EQUITY: | ||
Cumulative redeemable preferred stock | 156,431 | 108,729 |
Series D Preferred Stock | ||
EQUITY: | ||
Cumulative redeemable preferred stock | 1,396 | 473 |
Series L Preferred Stock | ||
EQUITY: | ||
Cumulative redeemable preferred stock | $ 152,834 | $ 152,834 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, authorized shares (in shares) | 900,000,000 | 900,000,000 |
Common stock, issued shares (in shares) | 23,369,331 | 14,827,410 |
Common stock, outstanding shares (in shares) | 23,369,331 | 14,827,410 |
Series A Preferred Stock | ||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 36,000,000 | 36,000,000 |
Preferred stock, shares issued (in shares) | 1,633,965 | 2,008,256 |
Preferred stock, shares outstanding (in shares) | 1,631,965 | 2,007,856 |
Preferred stock, liquidation preference per share (in usd per share) | $ 25 | $ 25 |
Series A Cumulative Preferred Stock | ||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 36,000,000 | 36,000,000 |
Preferred stock, shares issued (in shares) | 6,492,632 | 4,484,376 |
Preferred stock, shares outstanding (in shares) | 6,271,337 | 4,377,762 |
Preferred stock, liquidation preference per share (in usd per share) | $ 25 | $ 25 |
Series D Preferred Stock | ||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 32,000,000 | 32,000,000 |
Preferred stock, shares issued (in shares) | 56,857 | 19,145 |
Preferred stock, shares outstanding (in shares) | 56,857 | 19,145 |
Preferred stock, liquidation preference per share (in usd per share) | $ 25 | $ 25 |
Series L Preferred Stock | ||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 9,000,000 | 9,000,000 |
Preferred stock, shares issued (in shares) | 8,080,740 | 8,080,740 |
Preferred stock, shares outstanding (in shares) | 5,387,160 | 5,387,160 |
Preferred stock, liquidation preference per share (in usd per share) | $ 28.37 | $ 28.37 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES: | ||
Rental and other property income | $ 52,838 | $ 54,823 |
Hotel income | $ 16,722 | $ 11,882 |
Revenue from Contract with Customer, Product and Service [Extensible List] | Hotel | Hotel |
Interest and other income | $ 21,366 | $ 10,503 |
Total Revenues | 90,926 | 77,208 |
EXPENSES: | ||
Rental and other property operating | 39,272 | 37,544 |
Asset management and other fees to related parties | 9,030 | 9,793 |
Interest | 9,413 | 11,415 |
General and administrative | 6,844 | 6,772 |
Transaction costs | 143 | 0 |
Depreciation and amortization | 20,112 | 21,406 |
Loss on early extinguishment of debt (Note 6) | 0 | 281 |
Impairment of real estate (Note 3) | 0 | 0 |
Total Expenses | 88,785 | 92,945 |
Gain on sale of real estate (Note 3) | 0 | 0 |
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES | 2,141 | (15,737) |
Provision (benefit) for income taxes | 2,992 | (722) |
NET (LOSS) INCOME | (851) | (15,015) |
Net loss (income) attributable to noncontrolling interests | 1 | (1) |
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY | (850) | (15,016) |
Redeemable preferred stock dividends declared or accumulated (Note 9) | (18,763) | (18,002) |
Redeemable preferred stock deemed dividends (Note 9) | (253) | (377) |
Redeemable preferred stock redemptions (Note 9) | (113) | (72) |
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (19,979) | $ (33,467) |
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE: | ||
Basic (in usd per share) | $ (1.04) | $ (2.27) |
Diluted (in usd per share) | $ (1.04) | $ (2.27) |
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING: | ||
Basic (in shares) | 19,187 | 14,748 |
Diluted (in shares) | 19,187 | 14,748 |
Corporate | ||
EXPENSES: | ||
Expense reimbursements to related parties | $ 2,050 | $ 2,243 |
Lending Segment | ||
EXPENSES: | ||
Expense reimbursements to related parties | $ 1,921 | $ 3,491 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common Stock | Preferred Stock | Additional Paid-in Capital | Distributions in Excess of Earnings | Noncontrolling Interests | Series A Preferred Stock | Series A Preferred StockTotal Stockholders' Equity | Series A Preferred StockPreferred Stock | Series A Preferred StockAdditional Paid-in Capital | Series A Preferred StockDistributions in Excess of Earnings | Series L Preferred Stock | Series L Preferred StockTotal Stockholders' Equity | Series L Preferred StockPreferred Stock | Series L Preferred StockDistributions in Excess of Earnings | Series D Preferred Stock | Series D Preferred StockTotal Stockholders' Equity | Series D Preferred StockPreferred Stock | Series D Preferred StockAdditional Paid-in Capital | Series D Preferred StockDistributions in Excess of Earnings |
Beginning balance (in shares) at Dec. 31, 2019 | 14,602,149 | 8,224,254 | 2,837,094 | 5,387,160 | |||||||||||||||||
Beginning balance at Dec. 31, 2019 | $ 278,195 | $ 277,690 | $ 15 | $ 223,467 | $ 794,825 | $ (740,617) | $ 505 | $ 70,633 | $ 152,834 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Distributions to noncontrolling interests | (51) | (51) | |||||||||||||||||||
Stock-based compensation expense (in shares) | 21,912 | ||||||||||||||||||||
Stock-based compensation expense | 222 | 222 | 222 | 0 | |||||||||||||||||
Issuance of shares of stock (in shares) | 203,349 | 19,145 | 19,145 | ||||||||||||||||||
Issuance of shares of stock | 2,359 | 2,359 | $ 473 | 2,359 | $ 456 | $ 456 | $ 473 | $ (17) | $ 0 | ||||||||||||
Common dividends | (4,431) | (4,431) | (4,431) | ||||||||||||||||||
Issuance of Series A Preferred Warrants | 28 | 28 | 28 | ||||||||||||||||||
Dividends to holders of Series Preferred Stock | $ (9,579) | $ (9,579) | $ (9,579) | $ (8,406) | $ (8,406) | $ (8,406) | (21) | (21) | (21) | ||||||||||||
Reclassification of Series A preferred Stock to permanent equity (in shares) | 1,570,421 | 1,570,421 | |||||||||||||||||||
Reclassification of Series A Preferred Stock to permanent equity | 35,483 | 35,483 | $ 38,837 | (3,354) | $ 38,837 | ||||||||||||||||
Redemption of Series A Preferred Stock (in shares) | (29,753) | (29,753) | |||||||||||||||||||
Redemption of Series A Preferred Stock | $ (741) | (749) | (749) | $ (741) | $ 64 | (72) | |||||||||||||||
Redeemable preferred stock deemed dividends | (377) | (377) | (377) | ||||||||||||||||||
Net (loss) income | (15,015) | (15,016) | (15,016) | 1 | |||||||||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 14,827,410 | 9,784,067 | 4,377,762 | 5,387,160 | 19,145 | ||||||||||||||||
Ending balance at Dec. 31, 2020 | 278,114 | 277,659 | $ 15 | $ 262,036 | 794,127 | (778,519) | 455 | $ 108,729 | $ 152,834 | $ 473 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Contributions to noncontrolling interests | 9 | 9 | |||||||||||||||||||
Distributions to noncontrolling interests | (118) | (118) | |||||||||||||||||||
Stock-based compensation expense (in shares) | 20,332 | ||||||||||||||||||||
Stock-based compensation expense | 220 | 220 | 220 | ||||||||||||||||||
Issuance of shares of stock (in shares) | 8,521,589 | 37,712 | 37,712 | ||||||||||||||||||
Issuance of shares of stock | 76,921 | 76,921 | $ 9 | $ 923 | 76,912 | 893 | 893 | $ 923 | $ (30) | ||||||||||||
Common dividends | (5,732) | (5,732) | (5,732) | ||||||||||||||||||
Dividends to holders of Series Preferred Stock | (10,289) | (10,289) | (10,289) | $ (8,406) | $ (8,406) | $ (8,406) | $ (65) | $ (65) | $ (65) | ||||||||||||
Reclassification of Series A preferred Stock to permanent equity (in shares) | 2,006,456 | 2,006,456 | |||||||||||||||||||
Reclassification of Series A Preferred Stock to permanent equity | 45,806 | 45,806 | $ 50,508 | (4,702) | 146,200 | $ 50,508 | |||||||||||||||
Redemption of Series A Preferred Stock (in shares) | (112,881) | (112,881) | |||||||||||||||||||
Redemption of Series A Preferred Stock | $ (2,806) | $ (2,700) | $ (2,700) | $ (2,806) | $ 219 | $ (113) | |||||||||||||||
Redeemable preferred stock deemed dividends | (253) | (253) | (253) | ||||||||||||||||||
Net (loss) income | (851) | (850) | (850) | (1) | |||||||||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 23,369,331 | 11,715,354 | 6,271,337 | 5,387,160 | 56,857 | ||||||||||||||||
Ending balance at Dec. 31, 2021 | $ 373,549 | $ 373,204 | $ 24 | $ 310,661 | $ 866,746 | $ (804,227) | $ 345 | $ 156,431 | $ 152,834 | $ 1,396 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Dividends paid per common share (in usd per share) | $ 0.300 | $ 0.300 |
Preferred dividends, per share amount (in usd per share) | 1.560 | 1.560 |
Series A Preferred Stock | ||
Preferred dividends, per share amount (in usd per share) | 1.375 | 1.719 |
Series D Preferred Stock | ||
Preferred dividends, per share amount (in usd per share) | $ 1.413 | $ 1.648 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (851) | $ (15,015) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization, net | 20,188 | 21,085 |
Loss on early extinguishment of debt | 0 | 281 |
Amortization of deferred loan costs | 1,068 | 1,192 |
Amortization of premiums and discounts on debt | (61) | (84) |
Unrealized premium adjustment | 2,930 | 1,281 |
Amortization of deferred costs and accretion of fees on loans receivable, net | (622) | (410) |
(Recoveries) write-offs of uncollectible receivables | (82) | 2,622 |
Deferred income taxes | 72 | (995) |
Stock-based compensation | 220 | 222 |
Loans funded, held for sale to secondary market | (96,991) | (28,131) |
Proceeds from sale of guaranteed loans | 109,000 | 25,722 |
Principal collected on loans subject to secured borrowings | 1,786 | 3,695 |
Commitment fees remitted and other operating activity | (2,559) | (935) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,519) | (419) |
Other assets | (1,340) | 1,233 |
Accounts payable and accrued expenses | 2,574 | (1,080) |
Deferred leasing costs | (1,669) | (1,838) |
Other liabilities | 7,128 | (274) |
Due to related parties | 7,009 | 4,675 |
Net cash provided by operating activities | 46,281 | 12,827 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to investments in real estate | (4,047) | (14,731) |
Acquisition of real estate | (2,933) | (6,131) |
Loans funded | (36,299) | (25,393) |
Principal collected on loans | 30,584 | 7,884 |
Other investing activity | 0 | 51 |
Net cash (used in) provided by investing activities | (12,695) | (38,320) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment of unsecured revolving lines of credit, revolving credit facilities, mortgages payable, term notes and principal on SBA 7(a) loan-backed notes | (157,910) | (57,584) |
Proceeds from unsecured revolving lines of credit, revolving credit facilities and term notes | 35,396 | 77,516 |
Payment of principal on secured borrowings | (1,786) | (3,695) |
Payment of deferred preferred stock offering costs | (1,149) | (943) |
Payment of deferred costs | (1) | (983) |
Payment of common dividends | (3,979) | (4,431) |
Proceeds from issuance of Common Stock | 78,825 | 0 |
Payment of Common Stock offering costs | (1,900) | 0 |
Net proceeds from issuance of Series A Preferred Warrants | 0 | 28 |
Net proceeds from issuance of Preferred Stock | 29,829 | 41,958 |
Payment of preferred stock dividends | (18,045) | (16,536) |
Redemption of Preferred Stock | (2,755) | (2,084) |
Noncontrolling interests’ distributions | (118) | (51) |
Noncontrolling interests’ contributions | 9 | 0 |
Net cash provided by (used in) financing activities | (43,584) | 33,195 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (9,998) | 7,702 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | ||
Beginning of period | 43,649 | 35,947 |
End of period | 33,651 | 43,649 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS: | ||
Cash and cash equivalents | 22,311 | 33,636 |
Restricted cash | 11,340 | 10,013 |
Total cash and cash equivalents and restricted cash | 33,651 | 43,649 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid during the period for interest | 8,463 | 10,315 |
Federal income taxes paid | 2,900 | 273 |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Accrued capital expenditures, tenant improvements and real estate developments | 2,127 | 267 |
Accrued deferred costs | 0 | 125 |
Accrued preferred stock offering costs | 161 | 675 |
Accrual of dividends payable to preferred stockholders | 12,051 | 11,343 |
Accrual of dividends payable to common stockholders | 1,753 | 0 |
Preferred stock offering costs offset against redeemable preferred stock | 400 | 583 |
Reclassification of Series A Preferred Stock from temporary equity to permanent equity | 45,806 | 35,483 |
Reclassification of loans receivable, net to real estate owned | 0 | 174 |
Reclassification of Series A Preferred Stock from permanent equity to accounts payable and accrued expenses | 48 | 25 |
Redeemable preferred stock deemed dividends | 253 | 377 |
Accrued Redeemable Preferred Stock fees | 638 | 493 |
Equity-based payment for management fees | $ 9,174 | $ 7,400 |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND OPERATIONS | 1. ORGANIZATION AND OPERATIONS Creative Media & Community Trust Corporation (formerly known as CIM Commercial Trust Corporation) (the “Company”), is a Maryland corporation and real estate investment trust (“REIT”). The Company’s portfolio of investments currently consists of Class A and creative office real assets in vibrant and improving metropolitan communities throughout the United States. The Company seeks to acquire, operate and develop premier multifamily and creative office assets that cater to rapidly growing industries such as technology, media and entertainment in vibrant and emerging communities throughout the United States. The Company seeks to apply the expertise of CIM Group, L.P. (“CIM Group”) to the acquisition, development and operation of top-tier multifamily properties situated in dynamic markets with similar business and employment characteristics to its creative office investments. The Company was originally organized in 1993 as PMC Commercial Trust (“PMC Commercial”), a Texas real estate investment trust. The Company’s common stock, $0.001 par value per share (“Common Stock”), is currently traded on the Nasdaq Global Market (“Nasdaq”) under the ticker symbol “CMCT”, and on the Tel Aviv Stock Exchange (the “TASE”) under the ticker symbol “CMCT-L.” The Company’s Series L preferred stock, $0.001 par value per share (“Series L Preferred Stock”), is currently traded on Nasdaq and on the TASE, in each case under the ticker symbol “CMCTP.” The Company has authorized for issuance 900,000,000 shares of common stock and 100,000,000 shares of preferred stock (“Preferred Stock”). The Company filed Articles of Amendment (the “Reverse Stock Split Amendment”) to effectuate a one-for-three reverse stock split of the Company’s Common Stock, effective on September 3, 2019 (the “Reverse Stock Split”). Pursuant to the Reverse Stock Split Amendment, every three shares of Common Stock issued and outstanding immediately prior to the effective time of the Reverse Stock Split were converted into one share of Common Stock, par value $0.003 per share. In connection with the Reverse Split Amendment, the Company filed Articles of Amendment to revert the par value of the Common Stock issued and outstanding from $0.003 per share to $0.001 per share, effective as of September 3, 2019, following the effective time of the Reverse Split Amendment. All Common Stock and per share of Common Stock amounts set forth in this Annual Report on Form 10-K have been adjusted to give retroactive effect to the Reverse Stock Split, unless otherwise stated. The Company conducted a continuous public offering of Series A Preferred Units from October 2016 through January 2020, where each Series A Preferred Unit consisted of one share of Series A Preferred Stock, par value $0.001 per share, of the Company (collectively, the “Series A Preferred Stock”) with an initial stated value of $25.00 per share, subject to adjustment (the “Series A Preferred Stock Stated Value”), and one warrant (collectively, the “Series A Preferred Warrants”) to purchase 0.25 of a share of Common Stock, subject to adjustment (Note 10). Proceeds and expenses from the sale of the Series A Preferred Units were allocated to the Series A Preferred Stock and Series A Preferred Warrants using their relative fair values on the date of issuance. Since February 2020, the Company has been conducting a continuous public offering of Series A Preferred Stock and Series D preferred stock, par value $0.001 per share (the “Series D Preferred Stock”), with an initial stated value of $25.00 per share, subject to adjustment (the “Series D Preferred Stock Stated Value”). The selling price of the Series A Preferred Stock in the offering has been, and is expected to continue to be, $25.00 per share and the selling price of the Series D Preferred Stock was $25.00 per share for all sales that occurred from the beginning of the offering to and including June 28, 2020 and is expected to be, and since June 29, 2020, has been, $24.50 per share through the end of the life of the offering. During the year ended December 31, 2021, the Company conducted a rights offering (the “Rights Offering”) pursuant to which the Company issued an aggregate of 8,521,589 shares of Common Stock at a subscription price of $9.25 per share for aggregate gross proceeds of $78.8 million before issuance costs of $1.9 million. The Company has qualified and intends to continue to qualify as a REIT, as defined in the Internal Revenue Code of 1986, as amended. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. BASIS OF PRESENTATION AND 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 (“GAAP”). Principles of Consolidation —The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In determining whether the Company has controlling interests in an entity and the requirement to consolidate the accounts in that entity, the Company analyzes its investments in real estate in accordance with standards set forth in GAAP to determine whether they are variable interest entities (“VIEs”), and if so, whether the Company is the primary beneficiary. The Company’s judgment with respect to its level of influence or control over an entity and whether the Company is the primary beneficiary of a VIE involves consideration of various factors, including the form of the Company’s ownership interest, the Company’s voting interest, the size of the Company’s investment (including loans), and the Company’s ability to participate in major policy-making decisions. The Company’s ability to correctly assess its influence or control over an entity affects the presentation of these investments in real estate on the Company’s consolidated financial statements. As of December 31, 2021, the Company has determined that the trust formed for the benefit of the note holders (the “Trust”) for the securitization of the unguaranteed portion of certain of the Company’s SBA 7(a) loans receivable is considered a VIE. Applying the consolidation requirements for VIEs, the Company determined that it is the primary beneficiary based on its power to direct activities through its role as servicer and its obligations to absorb losses and right to receive benefits. Investments in Real Estate —Investments in real estate are stated at depreciated cost. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives as follows: Buildings and improvements 15 - 40 years Furniture, fixtures, and equipment 3 - 5 years Tenant improvements Lesser of useful life or lease term The fair value of real estate acquired is recorded to acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of acquired above-market and below-market leases, in-place leases and ground leases, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. Capitalized Project Costs The Company capitalizes project costs, including pre-construction costs, interest expense, property taxes, insurance, and other costs directly related and essential to the development, redevelopment, or construction of a project, while activities are ongoing to prepare an asset for its intended use. Costs incurred after a project is substantially complete and ready for its intended use are expensed as incurred. Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Ordinary repairs and maintenance are expensed as incurred. Recoverability of Investments in Real Estate —The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. Investments in real estate are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If, and when, such events or changes in circumstances are present, the recoverability of assets to be held and used requires significant judgment and estimates and is measured by a comparison of the carrying amount to the future undiscounted cash flows expected to be generated by the assets and their eventual disposition. If the undiscounted cash flows are less than the carrying amount of the assets, an impairment is recognized to the extent the carrying amount of the assets exceeds the estimated fair value of the assets. The process for evaluating real estate impairment requires management to make significant assumptions related to certain inputs, including rental rates, lease-up period, occupancy, estimated holding periods, capital expenditures, growth rates, market discount rates and terminal capitalization rates. These inputs require a subjective evaluation based on the specific property and market. Changes in the assumptions could have a significant impact on either the fair value, the amount of impairment charge, if any, or both. Any asset held for sale is reported at the lower of the asset’s carrying amount or fair value, less costs to sell. When an asset is identified by the Company as held for sale, the Company will cease recording depreciation and amortization of the asset. The Company did not recognize any impairment of long-lived assets during the years ended December 31, 2021 and 2020 (Note 3). Cash and Cash Equivalents —Cash and cash equivalents include short-term liquid investments with initial maturities of three months or less. Restricted Cash —The Company’s mortgage loan and hotel management agreements provide for depositing cash into restricted accounts reserved for capital expenditures, free rent, tenant improvement and leasing commission obligations. Restricted cash also includes cash required to be segregated in connection with certain of the Company’s loans receivable. Loans Receivable —The Company’s loans receivable are carried at their unamortized principal balance less unamortized acquisition discounts and premiums, deferred origination fees, retained loan discounts and loan loss reserves. Acquisition discounts or premiums, origination fees and retained loan discounts are amortized as a component of interest and other income using the effective interest method over the life of the respective loans, or on a straight-line basis when it approximates the effective interest method. All loans were originated pursuant to programs sponsored by the Small Business Administration (the “SBA”). The programs consist of loans originated under the SBA 7(a) Small Business Loan Program (the “SBA 7(a) Program”) and, commencing with the quarter ended June 30, 2020, the Paycheck Protection Program (the “PPP”). Pursuant to the SBA 7(a) Program, the Company sells the portion of the loan that is guaranteed by the SBA. Upon sale of the SBA guaranteed portion of the loans, which are accounted for as sales, the unguaranteed portion of the loan retained by the Company is recorded at fair value and a discount is recorded as a reduction in basis of the retained portion of the loan. Unamortized retained loan discounts were $9.6 million and $7.8 million as of December 31, 2021 and 2020, respectively. At the closing of the merger between CIM Urban REIT, LLC (“CIM REIT”), an affiliate of CIM Group, and certain of its subsidiaries and PMC Commercial Trust, the predecessor to the Company, the carrying value of the Company’s loans was adjusted to estimated fair market value and acquisition discounts of $33.9 million were recorded, which are being accreted to interest and other income using the effective interest method. Acquisition discounts of $381,000 and $492,000 remained as of December 31, 2021 and 2020, respectively. A loan receivable is generally classified as non-accrual (a “Non-Accrual Loan”) if (i) it is past due as to payment of principal or interest for a period of 60 days or more, (ii) any portion of the loan is classified as doubtful or is charged-off or (iii) the repayment in full of the principal and or interest is in doubt. Generally, loans are charged-off when management determines that the Company will be unable to collect any remaining amounts due under the loan agreement, either through liquidation of collateral or other means. Interest income, included in interest and other income, on a Non-Accrual Loan is recognized on the cost recovery basis. Loan Loss Reserves —On a quarterly basis, and more frequently if indicators exist, the Company evaluates the collectability of its loans receivable. The Company’s evaluation of collectability involves significant judgment, estimates, and a review of the ability of the borrower to make principal and interest payments, the underlying collateral and the borrowers’ business models and future operations. For the years ended December 31, 2021 and 2020, the Company recorded net impairment losses of $19,000 and a net recovery of $16,000, respectively, on its loans receivable. There were no material loans receivable subject to credit risk which were considered to be impaired as of December 31, 2021 or 2020. The Company considers a loan to be impaired when the Company does not expect to collect all of the contractual interest and principal payments as scheduled in the loan agreements. The Company also establishes a general loan loss reserve when available information indicates that it is probable a loss has occurred based on the carrying value of the portfolio and the amount of the loss can be reasonably estimated. Significant judgment is required in determining the general loan loss reserve, including estimates of the likelihood of default and the estimated fair value of the collateral. The general loan loss reserve includes those loans, which may have negative characteristics which have not yet become known to the Company. In addition to the reserves established on loans not considered impaired that have been evaluated under a specific evaluation, the Company establishes the general loan loss reserve using a consistent methodology to determine a loss percentage to be applied to loan balances. These loss percentages are based on many factors, primarily cumulative and recent loss history and general economic conditions. For the years ended December 31, 2021 and 2020, the Company has loan loss reserves of $943,000 and $885,000, respectively. Deferred Rent Receivable and Charges —Deferred rent receivable and charges consist of deferred rent, deferred leasing costs, deferred offering costs (Note 9) and other deferred costs. Deferred leasing costs, which represent lease commissions and other direct costs associated with the acquisition of tenants, are capitalized and amortized on a straight-line basis over the terms of the related leases. Deferred offering costs represent direct costs incurred in connection with the Company’s offerings of Series A Preferred Units, and, after January 2020, Series A Preferred Stock and Series D Preferred Stock, excluding costs specifically identifiable to a closing, such as commissions, dealer-manager fees, and other offering fees and expenses. Generally, for a specific issuance of securities, issuance-specific offering costs are recorded as a reduction of proceeds raised on the issuance date and offering costs incurred but not directly related to a specifically identifiable closing of a security are deferred. Deferred offering costs are first allocated to each issuance of a security on a pro-rata basis equal to the ratio of the number of securities issued in a given issuance to the maximum number of securities that are expected to be issued in the related offering. In the case of the Series A Preferred Units, which were issued prior to February 2020, the issuance-specific offering costs and the deferred offering costs allocated to such issuance were further allocated to the Series A Preferred Stock and Series A Preferred Warrants issued in such issuance based on the relative fair value of the instruments on the date of issuance. The deferred offering costs allocated to the Series A Preferred Stock and Series A Preferred Warrants are reductions to temporary equity and permanent equity, respectively. As of December 31, 2021 and 2020, deferred rent receivable and charges, net consist of the following: December 31, 2021 December 31, 2020 (in thousands) Deferred rent receivable $ 20,870 $ 20,470 Deferred leasing costs, net of accumulated amortization of $8,971 and $7,742, respectively 8,453 8,950 Deferred offering costs 6,281 6,046 Other deferred costs 491 490 Deferred rent receivable and charges, net $ 36,095 $ 35,956 Noncontrolling Interests —Noncontrolling interests represent the interests in various properties owned by third parties. Redeemable Preferred Stock —Beginning on the date of original issuance of any given shares of Series A Preferred Stock or Series D Preferred Stock, and from and after the fifth anniversary date of the original issuance of the Series L Preferred Stock, the holder of such shares has the right to require the Company to redeem such shares, subject to certain limitations as discussed in Note 9. The Company records the activity related to the Series A Preferred Warrants, Series D Preferred Stock and Series L Preferred Stock in permanent equity. In the event a holder of Series A Preferred Stock requests redemption of such shares and such redemption takes place prior to the first anniversary of the date of original issuance, the Company is required to pay such redemption in cash. As a result, the Company records issuances of Series A Preferred Stock in temporary equity. On the first anniversary of the date of original issuance of a particular share of Series A Preferred Stock, the Company reclassifies such share of Series A Preferred Stock from temporary equity to permanent equity because the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary date. Purchase Accounting for Acquisition of Investments in Real Estate —The Company applies the acquisition method to all acquired real estate assets. The purchase consideration of the real estate, which includes the transaction costs incurred in connection with such acquisitions, is recorded at fair value to the acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, and furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of acquired above-market and below-market leases, in-place leases and ground leases, if any, based in each case on their relative fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. The fair value of the tangible assets of an acquired property is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land (or acquired ground lease if the land is subject to a ground lease), land improvements, building and improvements, and tenant improvements based on management’s determination of the relative fair values of these assets. Management determines the as-if-vacant fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases, including leasing commissions, legal, and other related costs. In allocating the purchase consideration of the identified intangible assets and liabilities of an acquired property, above-market, below-market, and in-place lease values are recorded based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the remaining non-cancelable term of the lease, and for below-market leases, over a period equal to the initial term plus any below-market fixed-rate renewal periods. Acquired above-market and below-market leases are amortized and recorded to rental and other property income over the initial terms of the respective leases. The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationships, is measured by the estimated cost of operations during a theoretical lease-up period to replace in-place leases, including lost revenues and any unreimbursed operating expenses, plus an estimate of deferred leasing commissions for in-place leases. The value of in-place leases is amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease is terminated prior to its stated expiration, all unamortized amounts relating to that lease are written-off. Revenue Recognition —At the inception of a revenue-producing contract, the Company determines if a contract qualifies as a lease and if not, then as a customer contract. Based on this determination, the appropriate treatment in accordance with GAAP is applied to the contract, including its revenue recognition. Revenue from leasing activities The Company operates as a lessor of real estate assets. When the Company enters into a contract or amends an existing contract, the Company evaluates if the contracts meet the definition of a lease using the following criteria: • One party (lessor) must hold an identified asset; • The counterparty (lessee) must have the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of the contract; and • The counterparty (lessee) must have the right to direct the use of the identified asset throughout the period of the contract. The Company determined that the Company’s contracts with its tenants explicitly identify the premises and that any substitution rights to relocate tenants to other premises within the same building stated in the contract are not substantive. Additionally, so long as payments are made timely under such contracts, the Company’s tenants have the right to obtain substantially all the economic benefits from the use of the identified asset and can direct how and for what purpose the premises are used to conduct their operations. Therefore, the contracts with the Company’s tenants constitute leases. All leases are classified as operating leases and minimum rents are recognized on a straight-line basis over the terms of the leases when collectability is probable and the tenant has taken possession or controls the physical use of the leased asset. The excess of rents recognized over amounts contractually due pursuant to the underlying leases is recorded as deferred rent. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is considered the owner of the improvements, any tenant improvement allowance that is funded is treated as an incentive. Lease incentives paid to tenants are included in other assets and amortized as a reduction to rental revenue on a straight-line basis over the term of the related lease. Lease incentives of $4.0 million and $4.0 million are presented net of accumulated amortization of $2.7 million and $2.4 million as of December 31, 2021 and 2020, respectively. Reimbursements from tenants, consisting of amounts due from tenants for common area maintenance, real estate taxes, insurance, and other recoverable costs, are recognized as revenue and are included in rental and other property income in the period the expenses are incurred, with the corresponding expenses included in rental and other property operating expense. Tenant reimbursements are recognized and presented on a gross basis when the Company is primarily responsible for fulfilling the promise to provide the specified good or service and control that specified good or service before it is transferred to the tenant. The Company has elected not to separate lease and non-lease components as the pattern of revenue recognition does not differ for the two components, and the non-lease component is not the primary component in the Company’s leases. In addition to minimum rents, certain leases, including the Company’s parking leases with third-party operators, provide for additional rents based upon varying percentages of tenants’ sales in excess of annual minimums. Percentage rent is recognized once lessees’ specified sales targets have been met. For the years ended December 31, 2021 and 2020, the Company recognized rental income as follows: Year Ended December 31, 2021 2020 (in thousands) Rental and other property income Fixed lease payments (1) $ 45,773 $ 50,245 Variable lease payments (2) 7,065 4,578 Rental and other property income $ 52,838 $ 54,823 (1) Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above-market leases, below-market leases and lease incentives. (2) Variable lease payments include expense reimbursements billed to tenants and percentage rent, net of bad debt expense from the Company’s operating leases plus cash payments from tenants deemed not probable of collections. Collectability of Lease-Related Receivables The Company continually reviews whether collection of lease-related receivables, including any straight-line rent, and current and future operating expense reimbursements from tenants is probable. The determination of whether collectability is probable takes into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. Upon the determination that the collectability of a receivable is not probable, the Company will record a reduction to rental and other property income and a decrease in the outstanding receivable. Revenue from leases where collection is deemed to be not probable is recorded on a cash basis until collectability becomes probable. Management’s estimate of the collectability of lease-related receivables is based on the best information available at the time of estimate. The Company does not use a general reserve approach. As of December 31, 2021 and 2020, the Company had identified certain tenants where collection was no longer considered probable and decreased outstanding receivables by $579,000 and $1.9 million, respectively, across all operating leases. Revenue from lending activities Interest income included in interest and other income is comprised of interest earned on loans and the Company’s short-term investments and the accretion of loan discounts. Interest income on loans is accrued as earned with the accrual of interest suspended when the related loan becomes a Non-Accrual Loan (as defined below). Revenue from hotel activities The Company recognizes revenue from hotel activities separate from its leasing activities. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or implied by customary business practices. Various performance obligations of hotel revenues can be categorized as follows: • cancellable and noncancelable room revenues from reservations and • ancillary services including facility usage and food or beverage. Cancellable reservations represent a single performance obligation of providing lodging services at the hotel. The Company satisfies its performance obligation and recognizes revenues associated with these reservations over time as services are rendered to the customer. The Company satisfies its performance obligation and recognizes revenues associated with noncancelable reservations at the earlier of (i) the date on which the customer cancels the reservation or (ii) over time as services are rendered to the customer. Ancillary services include facilities usage and providing food and beverage. The Company satisfies its performance obligation and recognizes revenues associated with these services at a point in time when the good or service is delivered to the customer. At inception of a contract with a customer for hotel goods and services, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate. The Company presents hotel revenues net of sales, occupancy, and other taxes. Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 16: Year Ended December 31, 2021 2020 (in thousands) Hotel properties Hotel income $ 16,722 $ 11,882 Rental and other property income 1,070 1,353 Interest and other income 57 79 Hotel revenues $ 17,849 $ 13,314 Tenant recoveries outside of the lease agreements Tenant recoveries outside of the lease agreements are related to construction projects in which the Company’s tenants have agreed to fully reimburse the Company for all costs related to construction. These services include architectural, permit expediter and construction services. At inception of the contract with the customer, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate. While these individual services are distinct, in the context of the arrangement with the customer, all of these services are bundled together and represent a single package of construction services requested by the customer. The Company satisfies its performance obligation and recognizes revenues associated with these services over time as the construction is completed. No amounts were recognized for tenant recoveries outside of the lease agreements for the years ended December 31, 2021 and 2020. As of December 31, 2021, there were no remaining performance obligations associated with tenant recoveries outside of the lease agreements. Premiums and Discounts on Debt — Premiums and discounts on debt are accreted or amortized to interest expense using the effective interest method or on a straight-line basis over the respective term of the debt, which approximates the effective interest method. Stock-Based Compensation Plans —The Company has issued and continue to issue restricted shares under stock-based compensation plans described more fully in Note 8. The Company uses fair value recognition provisions to account for all awards granted, modified or settled. Earnings per Share (“EPS”) —Basic EPS is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of Common Stock outstanding for the period. Net income attributable to common stockholders includes a deduction for dividends due to preferred stockholders. Diluted EPS is computed by dividing net income attributable to common stockholders by the weighted average number of shares of Common Stock outstanding adjusted for the dilutive effect, if any, of securities such as stock-based compensation awards, warrants, including the Series A Preferred Warrants and preferred stock, including the Series A Preferred Stock, Series D Preferred Stock and Series L Preferred Stock, whose redemption is payable in shares of Common Stock or cash, at the discretion of the Company. The dilutive effect of stock-based compensation awards and warrants, including the Series A Preferred Warrants, is reflected in the weighted average diluted shares calculation by application of the treasury stock method. The dilutive effect of preferred stock, including the Series A Preferred Stock, Series D Preferred Stock and Series L Preferred Stock, whose redemption is payable in shares of Common Stock or cash, at the discretion of the Company, is reflected in the weighted average diluted shares calculation by application of the if-converted method. Distributions —Distributions on the Company’s Series A Preferred Stock, Series D Preferred Stock, Series L Preferred Stock and Common Stock are recorded when they are authorized by its Board of Directors and declared by the Company. Assets Held for Sale and Discontinued Operations —In the ordinary course of business, the Company may periodically enter into agreements to dispose of its assets. Some of these agreements are non-binding because either they do not obligate either party to pursue any transactions until the execution of a definitive agreement or they provide the potential buyer with the ability to terminate without penalty or forfeiture of any material deposit, subject to certain specified contingencies, such as completion of due diligence at the discretion of such buyer. The Company does not classify assets that are subject to such non-binding agreements as held for sale. The Company classifies assets as held for sale, if material, when they meet the necessary criteria, which include: a) management commits to and actively embarks upon a plan to sell the assets, b) the assets to be sold are available for immediate sale in their present condition, c) the sale is expected to be completed within one year under terms usual and customary for such sales and d) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company generally believes that it meets these criteria when the plan for sale has been approved by its management, having the authority to approve the sale, there are no known significant contingencies related to the sale and management believes it is probable that the sale will be completed within one year. Assets held for sale are recorded at the lower of cost or estimated fair value less cost to sell. In addition, if the Company were to determine that the asset disposal associated with assets held for sale or disposed of represents a strategic shift, the revenues, expenses and net gain (loss) on dispositions would be recorded in discontinued operations for all periods presented through the date of the applicable disposition. Derivative Financial Instruments —As part of risk management and operational strategies, from time to time, the Company may enter into derivative contracts with various counterparties. All derivatives are recognized on the balance sheet at their estimated fair value. Accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the designation of the derivative instrument. The change in fair value of the derivative instrument that is designated as a hedge is recorded as other comprehensive income. The changes in fair value for derivative instruments that are not designated as hedges or that do not meet the hedge accounting criteria are recorded as a gain or loss to operations. Income Taxes —The Company has elected to be taxed as a REIT under the provisions of the Code. To the extent the Company qualifies for taxation as a REIT, it generally will not be subject to a federal corporate income tax on its taxable income that is distributed to its stockholders. The Company may, however, be subject to certain federal excise taxes and state and local taxes on its income and property. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income taxes at regular corporate rates and will not be able to qualify as a REIT for four subsequent taxable years. In order to remain qualified as a REIT under the Code, the Company must satisfy various requirements in each taxable year, including, among others, limitations on share ownership, |
INVESTMENTS IN REAL ESTATE
INVESTMENTS IN REAL ESTATE | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
INVESTMENTS IN REAL ESTATE | 3. INVESTMENTS IN REAL ESTATE Investments in real estate consist of the following: December 31, 2021 2020 (in thousands) Land $ 141,236 $ 139,397 Land improvements 2,644 2,611 Buildings and improvements 454,431 450,741 Furniture, fixtures, and equipment 4,398 4,969 Tenant improvements 29,733 31,414 Work in progress 10,260 8,073 Investments in real estate 642,702 637,205 Accumulated depreciation (144,718) (131,165) Net investments in real estate $ 497,984 $ 506,040 For the years ended December 31, 2021 and 2020, the Company recorded depreciation expense of $16.9 million and $17.7 million, respectively. 2021 Transactions —During the year ended December 31, 2021, the Company acquired a 100% fee-simple interest in the following property from an unrelated third-party. The purchase was accounted for as an asset acquisition. Asset Date of Purchase Property Type Acquisition Square Feet Price (1) (in thousands) 1037 North Sycamore, Los Angeles, CA Office July 13, 2021 4,900 $ 2,900 (1) Transaction costs that were capitalized as a component of the assets acquired and liabilities assumed in connection with the acquisition of this property totaled $33,000, which are not included in the purchase price above. There were no dispositions during the year ended December 31, 2021. 2020 Transactions —During the year ended December 31, 2020, the Company acquired a 100% fee-simple interest in the following property from an unrelated third-party. The purchase was accounted for as an asset acquisition. Asset Date of Purchase Property Type Acquisition Square Feet Price (1) (in thousands) 1021 East 7th Street, Austin, TX Office November 30, 2020 11,180 $ 6,079 (1) Transaction costs that were capitalized as a component of the assets acquired and liabilities assumed in connection with the acquisition of this property totaled $51,000, which are not included in the purchase price above. There were no dispositions during the year ended December 31, 2020. The results of operations of the properties the Company acquired have been included in the consolidated statements of operations from the date of acquisition. The purchase price of the acquisitions completed during the years ended December 31, 2021 and 2020 were less than 10% of the Company’s total assets as of the respective most recent annual consolidated financial statements filed at or prior to the date of acquisition. The following table summarizes the purchase price allocation of the aforementioned acquisitions during the years ended December 31, 2021 and 2020. Year Ended December 31, 2021 2020 (in thousands) Land $ 1,839 $ 4,976 Land improvements 33 9 Buildings and improvements 1,061 534 Tenant improvements — 190 Acquired in-place leases (1) — 408 Acquired above-market leases (2) — 18 Acquired below-market leases (3) — (5) Net assets acquired $ 2,933 $ 6,130 (1) Acquired in-place leases have a weighted average amortization period of 3 years for the 2020 acquisition. (2) Acquired above-market leases have a weighted average amortization period of 3 years for the 2020 acquisition. (3) Acquired below-market leases have a weighted average amortization period of 3 years for the 2020 acquisition. Property Concentrations —Kaiser Foundation Health Plan, Incorporated (“Kaiser”), which occupied space in one of the Company’s Oakland, California properties accounted for 30.9% of its annualized rental income for the year ended December 31, 2021. |
LOANS RECEIVABLE
LOANS RECEIVABLE | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
LOANS RECEIVABLE | 4. LOANS RECEIVABLE Loans receivable consist of the following: December 31, 2021 2020 (in thousands) SBA 7(a) loans receivable, subject to credit risk $ 42,103 $ 32,226 SBA 7(a) loans receivable, subject to loan-backed notes 18,050 23,631 SBA 7(a) loans receivable, Paycheck Protection Program 5,050 14,484 SBA 7(a) loans receivable, subject to secured borrowings 6,857 8,786 SBA 7(a) loans receivable, held for sale 1,200 4,009 Loans receivable 73,260 83,136 Deferred capitalized costs, net 1,226 884 Loan loss reserves (943) (885) Loans receivable, net $ 73,543 $ 83,135 SBA 7(a) Loans Receivable, Subject to Credit Risk —Represents the unguaranteed portions of loans originated under the SBA 7(a) Program which were retained by the Company. SBA 7(a) Loans Receivable, Subject to Loan-Backed Notes —Represents the unguaranteed portions of loans originated under the SBA 7(a) Program which were transferred to a trust and are held as collateral in connection with a securitization transaction. The proceeds received from the transfer are reflected as loan-backed notes payable (Note 6). These loans are subject to credit risk. SBA 7(a) Loans Receivable, Paycheck Protection Program —As an SBA 7(a) licensee, the Company originated loans under the PPP. As of December 31, 2021, a significant portion of these loans have been either forgiven or repaid, and the Company expects that all of the outstanding PPP loans will be forgiven, either in part or in full, by the SBA or be repaid by the borrower, including both principal and accrued interest. SBA 7(a) Loans Receivable, Subject to Secured Borrowings —Represents the government guaranteed portions of loans originated under the SBA 7(a) Program which were sold with the proceeds received from the sale reflected as secured borrowings—government guaranteed loans. There is no credit risk associated with these loans since the SBA has guaranteed payment of the principal. SBA 7(a) Loans Receivable, Held for Sale — Represents the government guaranteed portion of loans held for sale at the end of the period or that had been sold but in respect of which proceeds had not been received as of the end of the period. Other |
OTHER INTANGIBLE ASSETS AND LIA
OTHER INTANGIBLE ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
OTHER INTANGIBLE ASSETS AND LIABILITIES | 5. OTHER INTANGIBLE ASSETS AND LIABILITIES A schedule of our intangible assets and liabilities and related accumulated amortization and accretion as of December 31, 2021 and 2020, is as follows: As of December 31, 2021 2020 (in thousands) Intangible assets: Acquired in-place leases, net of accumulated amortization of $9,030 and $9,228, respectively, with an average useful life of 9 and 8 years, respectively $ 2,266 $ 3,316 Acquired above-market leases, net of accumulated amortization of $27 and $15, respectively, both with an average useful life of 6 years 28 40 Trade name and license 2,957 2,957 Total intangible lease assets, net $ 5,251 $ 6,313 Intangible lease liabilities: Acquired below-market leases, net of accumulated amortization of $1,134 and $1,786, respectively, with an average useful life of 5 and 4 years, respectively $ 237 $ 587 Amortization of the acquired above-market leases is recorded as a reduction to rental and other property income, and amortization of the acquired in-place leases is included in depreciation and amortization in the accompanying consolidated statements of operations. Amortization of the acquired below-market leases is recorded as an increase to rental and other property income in the accompanying consolidated statements of operations. During the years ended December 31, 2021 and 2020, the Company recognized amortization related to its intangible assets and liabilities as follows: Year Ended December 31, 2021 2020 (in thousands) Acquired above-market lease amortization $ 12 $ 10 Acquired in-place lease amortization $ 1,050 $ 1,364 Acquired below-market lease amortization $ 350 $ 700 A schedule of future amortization and accretion of acquired intangible assets and liabilities as of December 31, 2021, is as follows: Assets Liabilities Acquired Acquired Acquired Above-Market In-Place Below-Market Years Ending December 31, Leases Leases Leases (in thousands) 2022 $ 12 $ 813 $ (236) 2023 10 470 (1) 2024 5 374 — 2025 1 171 — 2026 — 123 — Thereafter — 315 — $ 28 $ 2,266 $ (237) |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | 6. DEBT The following table summarizes the debt balances as of December 31, 2021 and 2020, and the debt activity for the year ended December 31, 2021 (in thousands): During the Year Ended December 31, 2021 Balances as of December 31, 2020 Debt Issuances & Assumptions Repayments Accretion & (Amortization) Balances as of December 31, 2021 Mortgage Payable: Outstanding Balance $ 97,100 $ — $ — $ — $ 97,100 Deferred debt issuance costs — Mortgage Payable (147) — — 27 (120) Total Mortgage Payable 96,953 — — 27 96,980 Secured Borrowings – Government Guaranteed Loans: Outstanding Balance 8,457 — (1,786) — 6,671 Unamortized premiums 457 — — (152) 305 Total Secured Borrowings—Government Guaranteed Loans 8,914 — (1,786) (152) 6,976 Other Debt: 2018 revolving credit facility 166,500 25,000 (131,500) — 60,000 2020 unsecured revolving credit facility — — — — — Junior subordinated notes 27,070 — — — 27,070 SBA 7(a) loan-backed notes 14,230 — (6,560) — 7,670 Borrowed funds from the Federal Reserve through the Paycheck Protection Program Liquidity Facility 14,484 10,396 (19,850) — 5,030 Deferred debt issuance costs — other (2,155) — — 1,166 (989) Discount on junior subordinated notes (1,683) — — 91 (1,592) Total Other Debt 218,446 35,396 (157,910) 1,257 97,189 Total Debt, Net $ 324,313 $ 35,396 $ (159,696) $ 1,132 $ 201,145 Mortgage Payable —The mortgage payable is secured by a deed of trust on a property and assignments of rents receivable. As of December 31, 2021, the Company’s mortgage payable had a fixed interest rate of 4.14% per annum, with monthly payments of interest only, due on July 1, 2026. The loan is nonrecourse. Secured Borrowings — Government Guaranteed Loans —Secured borrowings—government guaranteed loans represent sold loans which are treated as secured borrowings because the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Secured Borrowing and Collateral . These loans included cash premiums that are amortized as a reduction to interest expense over the life of the loan using the effective interest method and are fully amortized when the underlying loan is repaid in full. As of December 31, 2021, the Company’s secured borrowings-government guaranteed loans included $4.0 million of loans sold for a premium and excess spread, with a variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.89%, and $2.6 million of loans sold for an excess spread, with a variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 1.56%. 2018 Revolving Credit Facility —In October 2018, the Company entered into a secured revolving credit facility with a bank syndicate that, as amended, allows the Company to borrow up to $209.5 million, subject to a borrowing base calculation (the “2018 revolving credit facility”). In September 2020, the 2018 revolving credit facility was amended (the “2018 Credit Facility Modification”) to remedy the effect that COVID-19 had on the Company’s ability to borrow under the 2018 revolving credit facility during the period from September 2, 2020 through August 14, 2021 (the “Deferral Period”). The 2018 revolving credit facility bore interest during the Deferral Period at (A) the base rate plus 1.05% or (B) LIBOR plus 2.05% and (ii) bears interest after the Deferral Period, at (A) the base rate plus 0.55% or (B) LIBOR plus 1.55%. As of December 31, 2021 and 2020, the variable interest rate was 2.15% and 2.20%, respectively. The 2018 revolving credit facility is also subject to an unused commitment fee of 0.15% or 0.25% depending on the amount of aggregate unused commitments. The 2018 revolving credit facility is secured by deeds of trust on certain of the Company’s properties. The 2018 revolving credit facility contains customary covenants and is not subject to any financial covenants (though the amount the Company may borrow under the 2018 revolving credit facility is determined by a borrowing base calculation). The 2018 revolving credit facility matures in October 2022 and provides for one one-year extension option under certain conditions, including providing notice of the election and paying an extension fee of 0.15% of each lender’s commitment being extended on the effective date of such extension. As of December 31, 2021 and 2020, $60.0 million and $166.5 million, respectively, was outstanding under the 2018 revolving credit facility, and approximately $117.6 million and $28.0 million, respectively, was available for future borrowings. 2020 Unsecured Revolving Credit Facility —In May 2020, the Company entered into an unsecured revolving credit facility with a bank (the “2020 unsecured revolving credit facility”) pursuant to which the Company can borrow up to a maximum of $10.0 million. Outstanding advances under the 2020 unsecured revolving credit facility bear interest at the rate of 1.00%. The Company also pays a revolving credit facility fee of 1.12% with each advance under the 2020 unsecured revolving credit facility, which fee is subject to a cap of $112,000 in the aggregate. The 2020 unsecured revolving credit facility contains certain customary covenants including a maximum leverage ratio and a minimum fixed charge coverage ratio, as well as certain other conditions. The 2020 unsecured revolving credit facility matures in May 2022. As of December 31, 2021, no amounts were outstanding under the 2020 unsecured revolving credit facility and $10.0 million was available for future borrowings. Junior Subordinated Notes —The Company has junior subordinated notes with a variable interest rate which resets quarterly based on the three-month LIBOR plus 3.25%, with quarterly interest only payments. The junior subordinated balance is due at maturity on March 30, 2035. The junior subordinated notes may be redeemed at par at the Company’s option. SBA 7(a) Loan-Backed Notes —On May 30, 2018, the Company completed a securitization of the unguaranteed portion of certain of its SBA 7(a) loans receivable with the issuance of $38.2 million of unguaranteed SBA 7(a) loan-backed notes. The SBA 7(a) loan-backed notes are secured by deeds of trust or mortgages and are collateralized solely by the right to receive payments and other recoveries attributable to the unguaranteed portions of certain of the Company’s SBA 7(a) loans receivable. The SBA 7(a) loan-backed notes mature on March 20, 2043, with monthly payments due as payments on the collateralized loans are received. Based on the anticipated repayments of the Company’s collateralized SBA 7(a) loans, at issuance, the Company estimated the weighted average remaining life of the SBA 7(a) loan-backed notes to be approximately two years. The SBA 7(a) loan-backed notes bear interest at the lower of the one-month LIBOR plus 1.40% or the prime rate less 1.08%. As of December 31, 2021 and 2020, the variable interest rate was 1.49% and 1.55%, respectively. The Company reflects the SBA 7(a) loans receivable as assets on its consolidated balance sheets and the SBA 7(a) loan-backed notes as debt on its consolidated balance sheets. The restricted cash on the Company’s consolidated balance sheets included funds related to the Company’s SBA 7(a) loan-backed notes of $1.9 million and $1.2 million, as of December 31, 2021 and 2020, respectively. Paycheck Protection Program Liquidity Facility —In June 2020, the Company commenced borrowing funds from the Federal Reserve through the PPP Liquidity Facility (the “PPPLF”) to finance all the loans the Company originated under the PPP. Advances under the PPPLF carry an interest rate of 0.35%, are made on a dollar-for-dollar basis based on the amount of loans originated under the PPP and are secured by loans made by the Company under the PPP. The PPPLF contains customary covenants but is not subject to any financial covenants. The maturity date of PPPLF borrowings is the same as the maturity date of the loans pledged to secure the extension of credit, generally two years. At maturity, both principal and accrued interest are due. The maturity date of a PPPLF borrowing will be accelerated if, among other things, the Company has been reimbursed by the SBA for a loan forgiveness (to the extent of the forgiveness), the Company has received payment from the SBA representing exercise of the loan guarantee or the Company has received payment from the underlying borrower (to the extent of the payment received). As of December 31, 2021 and 2020, $5.0 million and $14.5 million, respectively, was outstanding under the PPPLF. As the PPP has ended, no new extensions of credit may be made under the PPPLF. Deferred debt issuance costs, which represent legal and third-party fees incurred in connection with the Company’s borrowing activities, are capitalized and amortized to interest expense on a straight-line basis over the life of the related loan, approximating the effective interest method. Deferred debt issuance costs are presented net of accumulated amortization and are a reduction to total debt. As of December 31, 2021 and 2020, accrued interest and unused commitment fees payable of $467,000 and $564,000, respectively, are included in accounts payable and accrued expenses. Future principal payments on the Company’s debt (face value) as of December 31, 2021 are as follows: Years Ending December 31, Mortgage Payable Secured Borrowings Principal (1) 2018 Revolving Credit Facility Other (1) (2) Total (in thousands) 2022 $ — $ 380 $ 60,000 $ 2,446 $ 62,826 2023 — 391 — 1,598 1,989 2024 — 402 — 1,613 2,015 2025 — 414 — 1,704 2,118 2026 97,100 426 — 452 97,978 Thereafter — 4,658 — 31,957 36,615 $ 97,100 $ 6,671 $ 60,000 $ 39,770 $ 203,541 (1) Principal payments on secured borrowings and SBA 7(a) loan-backed notes, which are included in Other, are generally dependent upon cash flows received from the underlying loans. The Company’s estimate of their repayment is based on scheduled payments on the underlying loans. The Company’s estimate will differ from actual amounts to the extent the Company experiences prepayments and or loan liquidations or charge-offs. No payment is due unless payments are received from the borrowers on the underlying loans. (2) Represents the junior subordinated notes, SBA 7(a) loan-backed notes, and borrowed funds from the Federal Reserve through the PPPLF. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLANS | 7. STOCK-BASED COMPENSATION PLANS On April 3, 2015, the Company’s board of directors (the “Board of Directors”) unanimously approved the Company’s 2015 Equity Incentive Plan (the “2015 Equity Incentive Plan”), which was approved by the Company’s stockholders. Under the 2015 Equity Incentive Plan, the Company granted awards of restricted shares of Common Stock to each of the independent members of the Board of Directors. A summary of the Company’s restricted shares as of December 31, 2021 and 2020 and the changes during the years ended is as follows: Weighted Number Average Grant of Date Fair Value Shares (1) Per Share (1) Balance, December 31, 2019 3,880 $ 56.66 Granted 21,912 $ 10.04 Vested (3,880) $ 56.66 Balance, December 31, 2020 21,912 $ 10.04 Granted 20,332 $ 10.82 Vested (21,912) $ 10.04 Balance, December 31, 2021 20,332 $ 10.82 (1) Amounts have been adjusted to give retroactive effect to the Reverse Stock Split. Compensation expense related to these restricted shares of Common Stock is recognized over the vesting period, and generally vests based on one year of continuous service. The Company recorded compensation expense related to these restricted shares of Common Stoc k in the amount of $220,000 and $222,000 for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, there was $73,000 of total unrecognized compensation expense related to shares of Common Stock which will be recognized ratably over the remaining vesting period. The estimated fair value of restricted shares vested during 2021 and 2020 was $220,000 and $220,000, respectively. |
EARNINGS PER SHARE (''EPS'')
EARNINGS PER SHARE (''EPS'') | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE ("EPS") | 8. EARNINGS PER SHARE (“EPS”) The computations of basic EPS are based on the Company’s weighted average shares outstanding. Outstanding Series A Preferred Warrants were not included in the computation of diluted EPS for the years ended December 31, 2021 and 2020 because their impact was either anti-dilutive or such warrants were not exercisable during such periods (Note 10). No shares of Series D Preferred Stock outstanding as of December 31, 2021 and December 31, 2020 had a dilutive effect. Outstanding shares of Series L Preferred Stock were not included in the computation of diluted EPS for the years ended December 31, 2021 and 2020 because such shares were not redeemable during such periods. EPS for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method for computing EPS in the respective periods. In addition, EPS is calculated independently for each component and may not be additive due to rounding. The following table reconciles the numerator and denominator used in computing the Company’s basic and diluted per-share amounts for net (loss) income attributable to common stockholders for the years ended December 31, 2021 and 2020: Year Ended December 31, 2021 2020 (in thousands, except per share amounts) Numerator: Net (loss) income attributable to common stockholders $ (19,979) $ (33,467) Redeemable preferred stock dividends declared on dilutive shares — (1) Diluted net (loss) income attributable to common stockholders $ (19,979) $ (33,468) Denominator: Basic weighted average shares of Common Stock outstanding 19,187 14,748 Effect of dilutive securities—contingently issuable shares — — Diluted weighted average shares and common stock equivalents outstanding 19,187 14,748 Net (loss) income attributable to common stockholders per share: Basic $ (1.04) $ (2.27) Diluted $ (1.04) $ (2.27) |
REDEEMABLE PREFERRED STOCK
REDEEMABLE PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
REDEEMABLE PREFERRED STOCK | 9. REDEEMABLE PREFERRED STOCK The table below provides information regarding the issuances, reclassifications and redemptions of each class of the Company’s preferred stock in permanent equity during the years ended December 31, 2021 and 2020 (dollar amounts in thousands): Preferred Stock Series A Series D Series L Total Shares Amount Shares Amount Shares Amount Shares Amount Balances, December 31, 2019 2,837,094 $ 70,633 — $ — 5,387,160 $ 152,834 8,224,254 $ 223,467 Issuance of Series D Preferred Stock — — 19,145 473 — — 19,145 473 Reclassification of Series A Preferred Stock to permanent equity 1,570,421 38,837 — — — — 1,570,421 38,837 Redemption of Series A Preferred Stock (29,753) (741) — — — — (29,753) (741) Balances, December 31, 2020 4,377,762 $ 108,729 19,145 $ 473 5,387,160 $ 152,834 9,784,067 $ 262,036 Issuance of Series D Preferred Stock — — 37,712 923 — — 37,712 923 Reclassification of Series A Preferred Stock to permanent equity 2,006,456 50,508 — — — — 2,006,456 50,508 Redemption of Series A Preferred Stock (112,881) (2,806) — — — — (112,881) (2,806) Balances, December 31, 2021 6,271,337 $ 156,431 56,857 $ 1,396 5,387,160 $ 152,834 11,715,354 $ 310,661 As of December 31, 2021, the Company had issued in registered public offerings 7,557,916 shares of Series A Preferred Stock, 4,603,287 Series A Preferred Warrants and 56,857 shares of Series D Preferred Stock and received gross proceeds of $190.3 million ($188.2 million of which was allocated to the Series A Preferred Stock, $761,000 of which was allocated to the Series A Preferred Warrants, and $1.4 million of which was allocated to the Series D Preferred Stock) and, additionally, had issued 568,681 shares of Series A Preferred Stock as payment for services to the Administrator, for which no cash proceeds were received. In connection with such issuance, costs specifically identifiable to the offering of Series A Preferred Stock, Series A Preferred Warrants and Series D Preferred Stock, such as commissions, dealer manager fees and other offering fees and expenses, totaled $15.9 million ($15.7 million of which was allocated to the Series A Preferred Stock, $142,000 of which was allocated to the Series A Preferred Warrants, and $35,000 of which was allocated to the Series D Preferred Stock). In addition, as of December 31, 2021, non-issuance-specific costs related to this offering totaled $8.0 million. As of December 31, 2021, the Company has reclassified and allocated $1.7 million, $5,000 and $13,000 from deferred charges to Series A Preferred Stock, Series A Preferred Warrants and Series D Preferred Stock, respectively, as a reduction to the gross proceeds received. Such reclassification was based on the cumulative number of securities issued relative to the maximum number of securities expected to be issued under the offering. As of December 31, 2021, there were 7,903,302 shares of Series A Preferred Stock outstanding, 4,541,852 Series A Preferred Warrants to purchase 1,178,125 shares of Common Stock outstanding, and 56,857 shares of Series D Preferred Stock outstanding. As of December 31, 2021, 223,295 shares of Series A Preferred Stock and no shares of Series D Preferred Stock have been redeemed. Series A Preferred Stock —The Company conducted a continuous public offering of Series A Preferred Units from October 2016 through January 2020, where each Series A Preferred Unit consisted of one share of Series A Preferred Stock, par value $0.001 per share, of the Company with an initial stated value of $25.00 per share, subject to adjustment, and one warrant to purchase 0.25 of a share of Common Stock. Proceeds and expenses from the sale of the Series A Preferred Units were allocated to the Series A Preferred Stock and Series A Preferred Warrants using their relative fair values on the date of issuance. Since February 2020, the Company has been conducting a continuous public offering with respect to shares of the Company’s Series A Preferred Stock, which, since such time, is no longer being issued as a unit with an accompanying Series A Preferred Warrant. Net proceeds from the issuance of shares of Series A Preferred Stock are initially recorded in temporary equity at an amount equal to the gross proceeds allocated to such shares of Series A Preferred Stock minus the costs specifically identifiable to the issuance of such shares and the non-issuance specific offering costs allocated to such shares. If the net proceeds from the issuance of shares of Series A Preferred Stock are less than the redemption value of such shares at the time they are issued, or if the redemption value of such shares subsequently becomes greater than the carrying value of such shares, an adjustment is recorded to increase the carrying amount of such shares to their redemption value as of the balance sheet date. Such adjustment is considered a deemed dividend for purposes of calculating basic and diluted EPS. During the years ended December 31, 2021 and December 31, 2020, the Company recorded redeemable preferred stock deemed dividends of $253,000 and $377,000, respectively, related to such adjustments. On the first anniversary of the issuance of a particular share of Series A Preferred Stock, the Company reclassifies such share of Series A Preferred Stock from temporary equity to permanent equity because the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary date. As of December 31, 2021, the Company had reclassified an aggregate of $146.2 million in net proceeds from temporary equity to permanent equity. Series D Preferred Stock —Since February 2020, the Company has been conducting a continuous public offering with respect to shares of its Series D Preferred Stock, par value $0.001 per share, subject to adjustment. The selling price of the Series D Preferred Stock was $25.00 per share for all sales that occurred from the beginning of the offering to and including June 28, 2020 and is expected to be, and since June 29, 2020, has been, $24.50 per share through the end of the life of the offering. Shares of Series D Preferred Stock are recorded in permanent equity at the time of their issuance. Series L Preferred Stock —On November 21, 2017, the Company issued 8,080,740 shares of Series L Preferred Stock having an initial stated value of $28.37 per share (“Series L Preferred Stock Stated Value”), subject to adjustment. The Company received gross proceeds of $229.3 million from the sale of the Series L Preferred Stock, which was reduced by issuance-specific offering costs, such as commissions, dealer manager fees, and other offering fees and expenses, totaling $15.9 million, a discount of $2.9 million, and non-issuance-specific costs of $2.5 million. These fees have been recorded as a reduction to the gross proceeds in permanent equity. On October 22, 2019, the Company commenced a tender offer for the purchase of up to 2,693,580 shares of Series L Preferred Stock (the “Tender Offer”), representing one-third of the then-outstanding shares of Series L Preferred Stock. The Tender Offer was oversubscribed, and pursuant to the terms of the Tender Offer, shares of Series L Preferred Stock were accepted for purchase on a pro rata basis. The Company repurchased 2,693,580 shares of Series L Preferred Stock at a purchase price of $29.12 per share, as converted to and paid in ILS. The shares of Series L Preferred Stock accepted for payment by the Company were restored to the status of authorized but unissued shares of preferred stock without designation as to class or series. Until the fifth anniversary of the date of original issuance of the Series L Preferred Stock, the Company is prohibited from issuing any shares of preferred stock ranking senior to or on parity with the Series L Preferred Stock with respect to the payment of dividends, other distributions, liquidation, and or dissolution or winding up of the Company unless the Minimum Fixed Charge Coverage Ratio, calculated in accordance with the Articles Supplementary describing the Series L Preferred Stock, is equal to or greater than 1.25:1.00. As of December 31, 2021 and 2020, the Company was in compliance with the Series L Preferred Stock Minimum Fixed Charge Coverage Ratio. Refer to Note 12 for a discussion of certain payments the Company has made in shares of Common Stock and in shares of Preferred Stock and may make in shares of Preferred Stock in lieu of cash payments in order to remain in compliance with the Series L Preferred Stock Minimum Fixed Charge Coverage Ratio. Dividends —With respect to the payment of dividends, the Series A Preferred Stock ranks senior to the Series L Preferred Stock and the Common Stock, and on parity with the Series D Preferred Stock. The Series L Preferred Stock ranks senior to the Common Stock (except with respect to and only to the extent of the Initial Dividend) and junior to the Series A Preferred Stock, Series D Preferred Stock and Common Stock (with respect to and only to the extent of the Initial Dividend). With respect to the distribution of amounts upon liquidation, dissolution or winding-up, the Series A Preferred Stock ranks on parity with the Series D Preferred Stock and Series L Preferred Stock, to the extent of the Series L Preferred Stock Stated Value, and otherwise ranks senior to the Series L Preferred Stock and the Common Stock. With respect to the distribution of amounts upon liquidation, dissolution or winding-up, the Series L Preferred Stock ranks senior to the Common Stock, both (i) to the extent of the Series L Preferred Stock Stated Value and (ii) following payment to holders of the Common Stock of an amount equal to any unpaid Initial Dividend, to the extent of any accrued and unpaid dividends on the Series L Preferred Stock, on parity with the Series A Preferred Stock and Series D Preferred Stock, to the extent of the Series L Preferred Stock Stated Value and junior to the Series A Preferred Stock, Series D Preferred Stock and Common Stock (to the extent of the Initial Dividend), in all instances with respect to any accrued and unpaid dividends on the Series L Preferred Stock. Holders of Series A Preferred Stock are entitled to receive, if, as and when authorized by the Company’s Board of Directors, and declared by the Company out of legally available funds, cumulative cash dividends on each share of Series A Preferred Stock at an annual rate of 5.50% of the Series A Preferred Stock Stated Value (i.e., the equivalent of $0.34375 per share per quarter) (the “Series A Dividend”). Holders of Series D Preferred Stock are entitled to receive, if, as and when authorized by the Company’s Board of Directors, and declared by the Company out of legally available funds, cumulative cash dividends on each share of Series D Preferred Stock at an annual rate of 5.65% of the Series D Preferred Stock Stated Value (i.e., the equivalent of $0.35313 per share per quarter) (the “Series D Dividend”). Dividends on each share of Series A Preferred Stock and Series D Preferred Stock begin accruing on, and are cumulative from, the date of issuance. The Company expects to pay the Series A Dividend and Series D Dividend in arrears on a monthly basis in accordance with the foregoing provisions, unless the Company’s results of operations, general financing conditions, general economic conditions, applicable requirements of the MGCL or other factors make it imprudent to do so. The timing and amount of the Series A Dividend and the Series D Dividend will be determined by the Company’s Board of Directors, in its sole discretion, and may vary from time to time. Holders of Series L Preferred Stock are entitled to receive, if, as and when authorized by the Company’s Board of Directors, and declared by the Company out of legally available funds, cumulative cash dividends on each share of Series L Preferred Stock at an annual rate of 5.50% of the Series L Preferred Stock Stated Value (i.e., the equivalent of $1.56035 per share per year). Dividends on each share of Series L Preferred Stock began accruing on, and are cumulative from, the date of issuance. The Company expects to pay dividends on the Series L Preferred Stock in arrears on an annual basis in accordance with the foregoing provisions, unless the Company’s results of operations, general financing conditions, general economic conditions, applicable requirements of the MGCL or other factors make it imprudent to do so. If the Company fails to timely declare distributions or fails to timely pay distributions on the Series L Preferred Stock, the annual dividend rate of the Series L Preferred Stock will temporarily increase by 1.00% per year, up to a maximum rate of 8.50% per annum. However, prior to the payment of any distributions on Series L Preferred Stock in respect of a given year, the Company must first declare and pay dividends on the Common Stock in respect of such year in an aggregate amount equal to the Initial Dividend announced by the Company’s Board of Directors at the end of the prior fiscal year. On December 29, 2021, the Company announced an Initial Dividend on shares of its Common Stock for fiscal year 2021 in the aggregate amount of $7,010,799. During the year ended December 31, 2021, the Company paid $9.6 million, $50,000 and $8.4 million of cash dividends on its Series A Preferred Stock, Series D Preferred Stock and Series L Preferred Stock, respectively. During the year ended December 31, 2020, the Company paid $8.1 million, $12,000 and $8.4 million of cash dividends on its Series A Preferred Stock, Series D Preferred Stock and Series L Preferred Stock, respectively. Redemptions —The Company’s Series A Preferred Stock and Series D Preferred Stock are redeemable at the option of the holder or the Company. The redemption schedule of the Series A Preferred Stock and Series D Preferred Stock allows redemptions at the option of the holder of Series A Preferred Stock or Series D Preferred Stock from the date of original issuance of any such shares at the Series A Preferred Stock Stated Value or Series D Preferred Stock Stated Value, respectively, less a redemption fee applicable prior to the fifth anniversary of the issuance of such shares, plus accrued and unpaid dividends. The Company has the right to redeem the Series A Preferred Stock or Series D Preferred Stock after the fifth anniversary of the date of original issuance of such shares at the Series A Preferred Stock Stated Value or Series D Preferred Stock Stated Value, respectively, plus accrued and unpaid dividends. At the Company’s discretion, the redemption price will be paid in cash or in Common Stock based on the volume weighted average price of the Company’s Common Stock for the 20 trading days prior to the redemption; provided that the redemption price of any shares of Series A Preferred Stock redeemed prior to the first anniversary of the date of original issuance of such shares must be paid in cash. From and after the fifth anniversary of the date of original issuance of the Series L Preferred Stock, each holder will have the right to require the Company to redeem, and the Company will also have the option to redeem (subject to certain conditions), such shares of Series L Preferred Stock at a redemption price equal to the Series L Preferred Stock Stated Value, plus, provided certain conditions are met, all accrued and unpaid distributions. Notwithstanding the foregoing, a holder of |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | 10. STOCKHOLDERS’ EQUITY Dividends Holders of the Company’s Common Stock are entitled to receive dividends, if, as and when authorized by the Board of Directors and declared by the Company out of legally available funds. In determining the Company’s dividend policy, the Board of Directors considers many factors including the amount of cash resources available for dividend distributions, capital spending plans, cash flow, the Company’s financial position, applicable requirements of the MGCL, any applicable contractual restrictions, and future growth in NAV and cash flow per share prospects. Consequently, the dividend rate on a quarterly basis does not necessarily correlate directly to any individual factor. Cash dividends per share of Common Stock paid in respect of the years ended December 31, 2021 and 2020 consist of the following: Declaration Date Payment Date Type Cash Dividend Per September 7, 2021 September 29, 2021 Regular Quarterly $ 0.075 June 7, 2021 June 30, 2021 Regular Quarterly $ 0.075 March 5, 2021 March 30, 2021 Regular Quarterly $ 0.075 December 2, 2020 December 29, 2020 Regular Quarterly $ 0.075 September 2, 2020 September 29, 2020 Regular Quarterly $ 0.075 June 3, 2020 June 29, 2020 Regular Quarterly $ 0.075 March 2, 2020 March 25, 2020 Regular Quarterly $ 0.075 On December 9, 2021, the Company declared a cash dividend of $0.075 per share of its Common Stock, which was paid on January 5, 2022 to stockholders of record at the close of business on December 20, 2021. On March 8, 2022, the Company declared a cash dividend of $0.085 per share of its Common Stock, to be paid on April 1, 2022 to stockholders of record at the close of business on March 19, 2022. Rights Offering During the year ended December 31, 2021 , the Company conducted the Rights Offering pursuant to which the Company issued an aggregate of 8,521,589 shares of Common Stock at a subscription price of $9.25 per share for aggregate gross proceeds of $78.8 million. Offering costs of $1.9 million were incurred in connection with the Rights Offering and recorded as a reduction to additional paid-in capital. Series A Preferred Warrants Prior to February 2020, the Series A Preferred Stock was sold as a unit that included one share of Series A Preferred Stock and one Series A Preferred Warrant that could be exercised to purchase 0.25 of a share of Common Stock. The Series A Preferred Warrants are exercisable beginning on the first anniversary of the date of their original issuance until and including the fifth anniversary of the date of such issuance. At the time of issuance, the exercise price of each Series A Preferred Warrant was at a 15.0% premium to the per share estimated NAV of the Company’s Common Stock then most recently published and designated as the applicable NAV. However, in accordance with the terms of the Series A Preferred Warrants, the exercise price of each Series A Preferred Warrant issued prior to the Reverse Stock Split was automatically adjusted to reflect the effect of the Reverse Stock Split and, in the discretion of the Company’s Board of Directors, the exercise price and the number of shares issuable upon exercise of each Series A Preferred Warrant issued prior to the Special Dividend was adjusted to reflect the effect of the Special Dividend. Proceeds and expenses from the sale of the Series A Preferred Units were allocated to the Series A Preferred Stock and Series A Preferred Warrants using their relative fair values on the date of issuance. As of December 31, 2021, there were 4,541,852 Series A Preferred Warrants outstanding to purchase 1,178,125 shares of Common Stock in connection with the Company’s offering of Series A Preferred Units and allocated net proceeds of $610,000 to the warrants outstanding as of December 31, 2021 , after specifically identifiable offering costs and allocated general offering costs, to the Series A Preferred Warrants in permanent equity. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 11. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company determines the estimated fair value of financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. The hierarchy for inputs used in measuring fair value is as follows: Level 1 Inputs —Quoted prices in active markets for identical assets or liabilities Level 2 Inputs —Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 Inputs —Unobservable inputs In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Management’s estimation of the fair value of the Company’s financial instruments is based on a Level 3 valuation in the fair value hierarchy established for disclosure of how a company values its financial instruments. In general, quoted market prices from active markets for the identical financial instrument (Level 1 inputs), if available, should be used to value a financial instrument. If quoted prices are not available for the identical financial instrument, then a determination should be made if Level 2 inputs are available. Level 2 inputs include quoted prices for similar financial instruments in active markets for identical or similar financial instruments in markets that are not active (i.e., markets in which there are few transactions for the financial instruments, the prices are not current, price quotations vary substantially, or in which little information is released publicly). There is limited reliable market information for the Company’s financial instruments and the Company utilizes other methodologies based on unobservable inputs for valuation purposes since there are no Level 1 or Level 2 inputs available. Accordingly, Level 3 inputs are used to measure fair value. In general, estimates of fair value may differ from the carrying amounts of the financial assets and liabilities primarily as a result of the effects of discounting future cash flows. Considerable judgment is required to interpret market data and develop estimates of fair value. Accordingly, the estimates presented are made at a point in time and may not be indicative of the amounts the Company could realize in a current market exchange. The following describes the methods the Company uses to estimate the fair value of the Company’s financial assets and liabilities. Debt —The carrying amounts of the Company’s secured borrowings—government guaranteed loans, SBA 7(a) loan-backed notes, 2018 revolving credit facility and borrowed funds from the Federal Reserve through the PPPLF approximate their fair values, as the interest rates on these securities are variable and approximate current market interest rates. The Company determines the fair value of mortgage notes payable and junior subordinated notes by performing discounted cash flow analyses using an appropriate market discount rate. The Company calculates the market discount rate for its mortgage notes payable by obtaining period-end treasury or swap rates, as applicable, for maturities that correspond to the maturities of the Company’s debt and then adding an appropriate credit spread. These credit spreads take into account factors such as the Company’s credit standing, the maturity of the debt, whether the debt is secured or unsecured, and the loan-to-value ratios of the debt. When estimating the fair value of the Company’s mortgages payable as of December 31, 2021 and 2020, the Company used a rate of 3.22% and 3.38%, respectively. The rate used to estimate the fair value of the Company’s junior subordinated notes was 4.46% and 4.49% as of December 31, 2021 and 2020, respectively. Loans Receivable —The Company determines the fair value of loans receivable by performing a present value analysis for the anticipated future cash flows using an appropriate market discount rate taking into consideration the credit risk and using an anticipated prepayment rate. The value of the government guaranteed portions of loans held for sale is based primarily on the anticipated proceeds to be received upon sale. The following summarizes the ranges of discount rates and prepayment rates used to arrive at the estimated fair values of the Company’s loans receivable: Year Ended December 31, 2021 2020 Discount Rate Prepayment Rate Discount Rate Prepayment Rate SBA 7(a) loans receivable, subject to credit risk 6.25% - 8.25% 5.00% - 17.50% 6.50% - 8.25% 4.00% - 17.50% SBA 7(a) loans receivable, subject to loan-backed notes 5.75% - 7.75% 5.00% - 17.50% 5.50% - 8.00% 4.88% - 17.50% SBA 7(a) loans receivable, subject to secured borrowings 7.00% - 7.75% 5.00% - 17.50% 7.00% - 7.75% 5.00% - 17.50% SBA 7(a) loans receivable, paycheck protection program 1.00% N/A 1.00% N/A Other Financial Instruments —The carrying amounts of the Company’s cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses approximate their fair values due to their short-term maturities at December 31, 2021 and 2020. Due to the short-term maturities of these instruments, Level 1 inputs are utilized to estimate the fair value of these financial instruments. The estimated fair values of those financial instruments which are not recorded at fair value on a recurring basis on the Company’s consolidated balance sheets are as follows: December 31, 2021 December 31, 2020 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Level (in thousands) Assets: SBA 7(a) loans receivable, paycheck protection program $ 4,903 $ 5,050 $ 14,089 $ 14,484 3 SBA 7(a) loans receivable, subject to loan-backed notes $ 18,077 $ 19,635 $ 23,606 $ 24,850 3 SBA 7(a) loans receivable, subject to credit risk $ 42,416 $ 44,399 $ 32,509 $ 32,397 3 SBA 7(a) loans receivable, subject to secured borrowings $ 6,891 $ 6,976 $ 8,822 $ 8,914 3 SBA 7(a) loans receivable, held for sale $ 1,256 $ 1,355 $ 4,109 $ 4,527 3 Liabilities: Mortgage payable (1) $ 97,100 $ 100,838 $ 97,100 $ 100,799 2, 3 Junior subordinated notes (1) $ 27,070 $ 24,378 $ 27,070 $ 24,236 3 (1) The carrying amounts for the mortgage payable and junior subordinated notes represents the principal outstanding amounts, excluding deferred debt issuance costs and discounts. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | 12. RELATED-PARTY TRANSACTIONS Asset Management and Other Fees to Related Parties Asset Management Fees —CIM Urban and CIM Capital, LLC, an affiliate of CIM REIT and CIM Group (“CIM Capital”), have an investment management agreement, pursuant to which CIM Urban engaged CIM Capital to provide certain services to CIM Urban (the “Investment Management Agreement”). CIM Capital has assigned its duties under the Investment Management Agreement to its four wholly-owned subsidiaries: CIM Capital Securities Management, LLC, a securities manager, CIM Capital RE Debt Management, LLC, a debt manager, CIM Capital Controlled Company Management, LLC, a controlled company manager, and CIM Capital Real Property Management, LLC, a real property manager. The “Operator” refers to CIM Capital and its four wholly-owned subsidiaries. CIM Urban pays asset management fees to the Operator on a quarterly basis in arrears. The fee is calculated as a percentage of the daily average adjusted fair value of CIM Urban’s assets: Daily Average Adjusted Fair Quarterly Fee From Greater of To and Including Percentage (in thousands) $ — $ 500,000 0.2500% $ 500,000 $ 1,000,000 0.2375% $ 1,000,000 $ 1,500,000 0.2250% $ 1,500,000 $ 4,000,000 0.2125% $ 4,000,000 $ 20,000,000 0.1000% Asset management fees are included in asset management and other fees to related parties in the accompanying consolidated statements of operations. In lieu of cash payment of the asset management fee, the Company has issued to the Operator shares of its Common Stock and shares of its Series A Preferred Stock. The Company has issued shares of its Series A Preferred Stock to the Operator as payment for the quarterly asset management fee for the year ended December 31, 2021 . Subject to applicable laws and regulations under Nasdaq and the TASE and the agreement of the Operator, it is likely that the Company will seek to pay some or part of the asset management fees for part of 2022 in shares of Series A Preferred Stock. Property Management Fees and Reimbursements — CIM Management, Inc. and certain of its affiliates (collectively, the “CIM Management Entities”), all affiliates of CIM REIT and CIM Group, provide property management, leasing, and development services to CIM Urban. Property management fees earned by the CIM Management entities and onsite management costs incurred on behalf of CIM Urban are included in rental and other property operating expenses in the accompanying consolidated statements of operations. Leasing commissions earned are capitalized to deferred charges on the accompanying consolidated balance sheets. Construction management fees are capitalized to investments in real estate on the accompanying consolidated balance sheets. Administrative Fees and Expenses — The Company and its subsidiaries have a master services agreement (the “Master Services Agreement”) with CIM Service Provider, LLC (the “Administrator”), an affiliate of CIM Group, pursuant to which the Administrator provides, or arranges for other service providers to provide, management and administration services to the Company and its subsidiaries. Pursuant to the Master Services Agreement, the Company appointed an affiliate of CIM Group as the administrator of Urban Partners GP, LLC. Under the Master Services Agreement, for fiscal quarters prior to April 1,2020, the Company paid a base service fee (the “Base Service Fee”) to the Administrator initially set at $1.0 million per year (subject to an annual escalation by a specified inflation factor beginning on January 1, 2015), payable quarterly in arrears. On May 11, 2020, the Master Services Agreement was amended to replace the Base Service Fee with an incentive fee (the “Prior Incentive Fee”) pursuant to which the Administrator was entitled to receive, on a quarterly basis, 15.00% of the Company’s quarterly core funds from operations in excess of a quarterly threshold equal to 1.75% (i.e., 7.00% on an annualized basis) of the Company’s average adjusted common stockholders’ equity (i.e., common stockholders’ equity plus accumulated depreciation and amortization) for such quarter. The amendment was effective as of April 1, 2020. Please see “—Fee Waiver” below for how the fees paid to the Administrator has been calculated since the beginning of 2022. The Base Service Fee is included in asset management and other fees to related parties in the accompanying consolidated statements of operations. In addition, pursuant to the terms of the Master Services Agreement, the Administrator may receive compensation and or reimbursement for performing certain services for the Company and its subsidiaries that are not covered by the Base Service Fee or the Prior Incentive Fee, as the case may be. During the years ended December 31, 2021 and 2020, such services performed by the Administrator and its affiliates included accounting, tax, reporting, internal audit, legal, compliance, risk management, IT, human resources, corporate communications, operational and on-going support in connection with the Company’s offering of Preferred Stock. The Administrator’s compensation is based on the salaries and benefits of the employees of the Administrator and or its affiliates who performed these services (allocated based on the percentage of time spent on the affairs of the Company and its subsidiaries). The expense for such services is included in expense reimbursements to related parties—corporate in the accompanying consolidated statements of operations. Lending Segment Expenses — The Company has a Staffing and Reimbursement Agreement with CIM SBA Staffing, LLC (“CIM SBA”), an affiliate of CIM Group, and the Company’s subsidiary, PMC Commercial Lending, LLC. The agreement provides that CIM SBA will provide personnel and resources to the Company and that the Company will reimburse CIM SBA for the costs and expenses of providing such personnel and resources. The expense for such services is included in expense reimbursements to related parties—lending segment in the accompanying consolidated statements of operations. Offering-Related Fees — CCO Capital, LLC (“CCO Capital”) became the exclusive dealer manager for the Company’s public offering of the Series A Preferred Units effective as of May 31, 2019. CCO Capital is a registered broker dealer and is under common control with the Operator and the Administrator. The Company’s offering of the Series A Preferred Units ended at the end of January 2020. On January 28, 2020, the Company entered into the Second Amended and Restated Dealer Manager Agreement, pursuant to which CCO Capital acts as the exclusive dealer manager for the Company’s public offering of its Series A Preferred Stock and Series D Preferred Stock. Thereunder, the Company agreed to compensate CCO Capital, as the dealer manager for the offering, as follows: (1) an upfront dealer manager fee of up to 1.25% of the selling price of each share of Preferred Stock sold, (2) selling commissions of up to 5.50% of the selling price of each share of Series A Preferred Stock sold (with no selling commissions payable in respect of shares of Series D Preferred Stock sold) and (3) a trailing dealer manager fee that accrues daily in an amount equal to 1/365 th of 0.25% per annum of the selling price of each share of Preferred Stock sold. CCO Capital, in its sole discretion, may reallow to another broker-dealer authorized by it to sell shares in the offering a portion of the upfront dealer manager fee earned by it in respect of shares sold by such broker-dealer. On April 9, 2020, the Company entered into Amendment No. 1 to the Second Amended and Restated Dealer Manager Agreement, pursuant to which the selling commissions were increased from up to 5.50% to up to 7.00% of the selling price of each share of Series A Preferred Stock sold thereafter. The Company has been informed that CCO Capital generally reallows 100% of the selling commissions on sales of Series A Preferred Stock and generally reallows substantially all of the upfront dealer manager fee on sales of Series A Preferred Stock and Series D Preferred Stock, to participating broker-dealers. On September 22, 2021, the Company entered into Amendment No. 2 to the Second Amended and Restated Dealer Manager Agreement, pursuant to which the upfront dealer manager fee payable to the Dealer Manager was changed to up to 3.00% and the trailing dealer manager fee with respect to the sale of shares of Series A Preferred Stock sold in the Offering on or after September 9, 2021 was eliminated. The Company recorded fees and expense reimbursements as shown in the table below for services provided by related parties related to the services described above during the periods indicated: Year Ended December 31, 2021 2020 (in thousands) Asset Management Fees: Asset management fees (1) $ 9,030 $ 9,511 Property Management Fees and Reimbursements: Property management fees $ 1,641 $ 1,670 Onsite management and other cost reimbursement $ 2,687 $ 3,356 Leasing commissions $ 162 $ 112 Construction management fees $ 226 $ 344 Administrative Fees and Expenses: Base service fee (2) $ — $ 282 Expense reimbursements to related parties - corporate $ 2,050 $ 2,243 Lending Segment Expenses: Expense reimbursements to related parties - lending segment (3) $ 1,921 $ 3,491 Offering-Related Fees: Upfront dealer manager and trailing dealer manager fees (4) $ 690 $ 1,149 Non-issuance specific offering costs (5) $ 106 $ 99 (1) The Company issued to the Operator an aggregate of 270,209 shares of its Series A Preferred Stock , in lieu of cash payment of the asset management fees incurred during the year ended December 31, 2021. The Company issued to the Operator 203,349 shares of its Common Stock and 287,199 s hares of Series A Preferred Stock in lieu of cash payment of the asset management fees incurred during the year ended December 31, 2020. (2) For the year ended December 31, 2020, the Company issued to the Administrator 11,273 shares of our Series A Preferred Stock, in lieu of cash as payment of the Base Service Fee for the first quarter of 2020. (3) Expense reimbursements to related parties - lending segment do not include personnel costs capitalized to deferred loan origination costs of $347,000 and $136,000 for the years ended December 31, 2021 and 2020, respectively. (4) Represents fees earned by CCO Capital and allocated to Series A Preferred Stock and Series D Preferred Stock. (5) As of December 31, 2021 and 2020, $2.0 million and $1.5 million, respectively, was included in deferred costs as reimbursable expenses incurred pursuant to the Master Services Agreement and the then applicable dealer manager agreement with CCO Capital. These non-issuance specific costs are allocated against the gross proceeds from the sale of the Series A Preferred Stock and the Series D Preferred Stock on a pro rata basis for each issuance as a percentage of the total offering. As of December 31, 2021 and 2020, due to related parties consisted of the following: December 31, 2021 2020 (in thousands) Asset management fees $ 2,244 $ 2,386 Property management fees and reimbursements 320 1,662 Expense reimbursements - corporate 692 647 Expense reimbursements - lending segment 341 690 Upfront dealer manager and trailing dealer manager fees 638 493 Non-issuance specific offering costs 143 668 Other amounts due to the CIM Management Entities and certain of its affiliates 163 160 Total due to related parties $ 4,541 $ 6,706 Fee Waiver On January 5, 2022, the Company and certain of its subsidiaries entered into a Fee Waiver (the “Fee Waiver”) with the Operator and the Administrator with respect to fees that are payable to them. The Fee Waiver is effective retroactively to January 1, 2022 (the “Effective Date”). Pursuant to the Fee Waiver, the Administrator agrees to voluntarily waive any fees in excess of those set forth in the Fee Waiver, to the extent it would otherwise have been entitled to such additional compensation under the Master Service Agreement, and the Operator agrees to voluntarily waive any fees in excess of those set forth in the Fee Waiver, to the extent it would otherwise have been entitled to such additional compensation under the Investment Management Agreement (the “Existing Methodology). 1. Base Fee: A base asset management fee (the “Base Fee”) is payable quarterly in arrears to the Operator in an amount equal to an annual rate of 1% (or 0.25% per quarter) of the average of the “Net Asset Value Attributable to Common Stockholders” as of the first and last day of the applicable quarter. Net Asset Value Attributable to Common stockholders is defined as (a) the sum of the Company’s (1) investments in real estate at fair value, (2) cash, (3) loans receivable at fair value and (4) the book value of the other assets of the Company, excluding deferred costs and net of other liabilities at book value, less (b) the Company’s (i) debt at face value, (ii) outstanding preferred stock at stated value, and (iii) non-controlling interests at book value; provided, that, non-controlling interests in any UPREIT operating partnership relating to the Company shall not be excluded. 2. Incentive Fee: An incentive fee (the “Revised Incentive Fee”) is payable quarterly in arrears to the Administrator with respect to the quarterly core funds from operations in excess of a quarterly threshold equal to 1.75% (i.e., 7.00% on an annualized basis) of the Company’s “Adjusted Common Equity” (as defined below) for such quarter (“Excess Core FFO”) as follows: (i) no Incentive Fee in any quarter in which the Excess Core FFO is $0; (ii) 100% of any Excess Core FFO up to an amount equal to the product of (x) the average of the Adjusted Common Equity as of the first and last day of the applicable quarter and (y) 0.4375%; and (iii) 20% of any Excess Core FFO thereafter. Revised Incentive Fees payable for any partial quarter will be appropriately prorated. “Adjusted Common Equity” means Common Equity plus Excluded Depreciation and Amortization. “Common Equity” means Total Stockholders’ Equity minus Excluded Equity. “Total Stockholders’ Equity” means the amount reflected as total stockholders’ equity in accordance with GAAP on the consolidated balance sheet of the Company and its subsidiaries as of the last day of a given quarter. “Excluded Equity” means the sum of all preferred securities of the Company and its subsidiaries classified as permanent equity in accordance with GAAP on the consolidated balance sheet of the Company and its subsidiaries as of the last day of a given quarter. “Excluded Depreciation and Amortization” means, for a given quarter, the amount of all accumulated depreciation and amortization of (i) the Company and its subsidiaries and (ii) to the extent allocable to the Company and its subsidiaries, the unconsolidated affiliates, in each case as of the last day of such quarter that corresponds to the periodic depreciation and amortization expense calculated in each case in accordance with GAAP that is a permitted add back to net income calculated in accordance with GAAP when calculating funds from operations. 3. Capital Gains Fee: A capital gains fee (the “Capital Gains Fee”) is payable quarterly in arrears to the Administrator in an amount equal to (i) 15% of the cumulative aggregate realized capital gains minus the cumulative aggregate realized capital losses (in each case since the Effective Date), minus (ii) the aggregate capital gains fees paid since the Effective Date. Realized capital gains and realized capital losses are calculated by subtracting from the sales price of a property: (a) any costs incurred to sell such property, and (b) the current gross value of the property (meaning the property’s original acquisition price plus any subsequent, non-reimbursed capital improvements thereon paid for by the Company). Following the end of each quarter, the Administrator will deliver to the Company (i) a calculation of the cumulative fees earned by the Operator and the Administrator under the methodology prescribed by the Fee Waiver (the “Fee Waiver Methodology”) from the Effective Date through the end of such quarter and (ii) a calculation of the cumulative fees that would have been earned, in the absence of the Fee Waiver, by the Operator and the Administrator during such period under the Master Services Agreement and the Investment Management Agreement, without giving effect to the Fee Waiver (the “Pre-Fee Waiver Methodology”). If, in respect of any quarter, the aggregate fees that are payable under the Fee Waiver Methodology exceed the aggregate fees that would have been payable under the Pre-Fee Waiver Methodology for the equivalent period, such quarter is deemed an “Excess Quarter”. For any quarter following an Excess Quarter, the Company (upon the direction of the independent members of the Board) may, at its option and upon written notice to Administrator, elect to calculate all fees due to the Administrator and the Operator in accordance with the Pre-Fee Waiver Methodology from and after such Excess Quarter. Any election by the Company to adopt the Pre-Fee Waiver Methodology is irrevocable, and all fees due to the Administrator and the Operator from and after such election will be calculated in accordance with the Pre-Fee Waiver Methodology . Other During the year ended December 31, 2020, the Company’s President, Jan F. Salit, retired effective as of September 16, 2020. Mr. Salit received a $450,000 payment, representing one year of his base salary, upon the satisfaction of certain conditions specified therein, including the execution of an agreement with the Company that contains, among other things, mutual release and non-disparagement provisions. Related to this payment, $287,000 was borne by the Company based on the time that Mr. Salit devoted to the Company relative to other matters relating to CIM Group. On October 1, 2015, an affiliate of CIM Group entered into a five-year lease renewal with respect to a property owned by the Company, which was terminated in October 2020. For the years ended December 31, 2021 and 2020, the Company recorded rental and other property income related to this tenant of $0 and $87,000, respectively. On May 15, 2019, CIM Group entered into an approximately 11-year lease for approximately 32,000 rentable square feet with respect to a property owned by the Company. The lease was amended on August 7, 2019 to reduce the rentable square feet to approximately 30,000 rentable square feet. For the years ended December 31, 2021 and 2020, the Company recorded rental and other property income related to this tenant of $1.5 million. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES Loan Commitments —Commitments to extend credit are agreements to lend to a customer when the terms established in the contract are met. The Company’s outstanding commitments to fund loans were $32.6 million as of December 31, 2021, the majority of which are for prime-based loans to be originated by the Company’s subsidiary engaged in SBA 7(a) Small Business Loan Program lending, the government guaranteed portion of which is intended to be sold. Commitments generally have fixed expiration dates. Since some commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements. General —In connection with the ownership and operation of real estate properties, the Company has certain obligations for the payment of tenant improvement allowances and lease commissions in connection with new leases and renewals. the Company had a total of $8.1 million in future obligations under leases to fund tenant improvements and other future construction obligations as of December 31, 2021. As of December 31, 2021, $2.5 million was funded to reserve accounts included in restricted cash on the Company’s consolidated balance sheet for these tenant improvement obligations in connection with the mortg age loan agreement entered into in June 2016. Employment Agreements —The Company has an employment agreement with one of its officers. Under certain circumstances, this employment agreement provides for (1) severance payment equal to the annual base salary paid to the officer and (2) death and disability payments in an amount equal to two times and one time, respectively, the annual base salary paid to the officer. Litigation —The Company is not currently involved in any material pending or threatened legal proceedings nor, to the Company’s knowledge, are any material legal proceedings currently threatened against the Company, other than routine litigation arising in the ordinary course of business. In the normal course of business, the Company is periodically party to certain legal actions and proceedings involving matters that are generally incidental to the Company’s business. While the outcome of these legal actions and proceedings cannot be predicted with certainty, in management’s opinion, the resolution of these legal proceedings and actions will not have a material adverse effect on the Company’s business, financial condition, results of operations, cash flow or the Company’s ability to satisfy its debt service obligations or to maintain its level of distributions on Common Stock or Preferred Stock. In September 2018, the Company filed a lawsuit against the City and County of San Francisco seeking a refund of the $11.8 million in penalties, interest and legal fees paid by the Company for real property transfer tax allegedly due for a transaction in a prior year. The Company disputed that such penalties, interest and legal fees were payable but, in order to contest the asserted tax obligations, the Company had to pay such amounts to the City and County of San Francisco in August 2017. The Company has been vigorously pursuing this litigation and intends to continue to do so. A subsidiary of the Company is a defendant in a lawsuit in connection with injuries sustained by a third-party contractor at a property previously owned by such subsidiary. While it is possible that a loss may be incurred, the Company is unable to estimate a range of potential losses due to the complexity and current status of the lawsuit. However, the Company maintains insurance coverage to mitigate the impact of adverse exposures in lawsuits of this nature and do not expect this lawsuit to have a material adverse effect on the Company’s business, financial condition, results of operations, cash flow or the Company ability to satisfy its debt service obligations or to maintain the level of distributions on the Company’s Common Stock or Preferred Stock. SBA Related —If the SBA establishes that a loss on an SBA guaranteed loan is attributable to significant technical deficiencies in the manner in which the loan was originated, funded or serviced under the PPP or the SBA 7(a) Small Business Loan Program, the SBA may seek recovery of the principal loss related to the deficiency from the Company. As of December 31, 2021, the Company serviced an aggregate of $262.4 million of the guaranteed portion of SBA 7(a) loans . With respect to the guaranteed portion of SBA loans that have been sold, the SBA will first honor its guarantee and then seek compensation from the Company in the event that a loss is deemed to be attributable to technical deficiencies. Based on historical experience, the Company does not expect that this contingency is probable to be asserted. However, if asserted, it could have a material adverse effect on the Company’s business, financial condition, results of operations, cash flow or the Company’s ability to satisfy its debt service obligations or to maintain its level of distributions on Common Stock or Preferred Stock. Environmental Matters —In connection with the ownership and operation of real estate properties, the Company may be potentially liable for costs and damages related to environmental matters, including asbestos-containing materials. The Company has not been notified by any governmental authority of any noncompliance, liability, or other claim in connection with any of the properties, and the Company is not aware of any other environmental condition with respect to any of the properties that management believes will have a material adverse effect on the Company’s business, financial condition, results of operations, cash flow or the Company’s ability to satisfy its debt service obligations or to maintain its level of distributions on Common Stock or Preferred Stock. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | 14. LEASES Future minimum rental revenue under long-term operating leases as of December 31, 2021, excluding tenant reimbursements of certain costs, are as follows (in thousands): Years Ending December 31, Total 2022 $ 44,521 2023 42,101 2024 40,059 2025 24,022 2026 17,246 Thereafter 32,937 $ 200,886 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 15. INCOME TAXES The Company has elected to be taxed as a REIT under the Code. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that the Company distributes at least 90% of its taxable income to its stockholders. As a REIT, the Company generally will not be subject to corporate level federal income tax on net income that is currently distributed to stockholders. The Company has wholly-owned TRS’s which are subject to federal and state income taxes. The income generated from the TRS’s is taxed at normal corporate rates. The provision for income taxes results in effective tax rates that differ from federal and state statutory rates. A reconciliation of the provision for income tax attributable to the TRSs’ income from continuing operations computed at federal statutory rates to the income tax provision reported in the financial statements is as follows: Year Ended December 31, 2021 2020 (in thousands) (Loss) income from continuing operations before income taxes for TRSs $ 9,242 $ (7,995) Expected federal income tax (benefit) provision $ 1,941 $ (1,679) State income taxes (40) (1,562) Change in valuation allowance (273) 2,605 Other 1,364 (86) Income tax (benefit) provision $ 2,992 $ (722) The components of the Company’s net deferred tax asset, which are included in other assets, are as follows: December 31, 2021 2020 (in thousands) Deferred tax assets: Net operating losses $ 2,367 $ 2,645 Secured borrowings—government guaranteed loans 64 96 Other 153 160 Total gross deferred tax assets 2,584 2,901 Valuation allowance (2,370) (2,643) 214 258 Deferred tax liabilities: Loans receivable (96) (67) (96) (67) Deferred tax asset, net $ 118 $ 191 The net operating loss carryforwards as of December 31, 2021 and 2020 were generated by TRSs and are available to offset future taxable income of these TRSs. The decrease in the valuation allowance recorded in 2021 was $273,000. The periods subject to examination for the Company’s federal and state income tax returns are 2018 through 2021. As of December 31, 2021 and 2020, no reserves for uncertain tax positions have been established and the Company does not anticipate any material changes in the amount of unrecognized tax benefits recorded to occur within the next 12 months. The Tax Cuts and Jobs Act of 2017, signed into law in late December 2017, made sweeping changes to provisions of the Code applicable to businesses. The CARES Act, signed into law in March 2020, made additional changes to provisions on the Code applicable to the businesses. Management has reviewed these statutory changes and determined that the impact to the Company’s consolidated financial statements is not material. |
SEGMENT DISCLOSURE
SEGMENT DISCLOSURE | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT DISCLOSURE | 16. SEGMENT DISCLOSURE The Company’s reportable segments during the years ended December 31, 2021 and 2020 consist of two types of commercial real estate properties, namely, office and hotel, as well as a segment for the Company’s lending business. Management internally evaluates the operating performance and financial results of the segments based on net operating income. The Company also has certain general and administrative level activities, including public company expenses, legal, accounting, and tax preparation that are not considered separate operating segments. The reportable segments are accounted for on the same basis of accounting as described in Note 2. For the Company’s real estate segments, the Company defines net operating income (loss) as rental and other property income and expense reimbursements less property related expenses, and excludes non-property income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, gain (loss) on sale of real estate, gain (loss) on early extinguishment of debt, impairment of real estate, transaction costs, and provision (benefit) for income taxes. For the Company’s lending segment, the Company defines net operating income as interest income net of interest expense and general overhead expenses. The net operating income (loss) of the Company’s segments for the years ended December 31, 2021 and 2020 is as follows: Year Ended December 31, 2021 2020 (in thousands) Office: Revenues $ 53,289 $ 55,468 Property expenses: Operating 23,431 23,485 General and administrative 347 490 Total property expenses 23,778 23,975 Segment net operating income—office 29,511 31,493 Hotel: Revenues 17,849 13,314 Property expenses: Operating 15,841 14,059 General and administrative 128 64 Total property expenses 15,969 14,123 Segment net operating income (loss)—hotel 1,880 (809) Lending: Revenues 19,787 8,322 Lending expenses: Interest expense 408 868 Expense reimbursements to related parties—lending segment 1,921 3,491 General and administrative 1,788 2,006 Total lending expenses 4,117 6,365 Segment net operating income—lending 15,670 1,957 Total segment net operating income $ 47,061 $ 32,641 A reconciliation of the Company’s segment net operating income to net income attributable to the Company for the years ended December 31, 2021 and 2020 is as follows: Year Ended December 31, 2021 2020 (in thousands) Total segment net operating income $ 47,061 $ 32,641 Interest and other income 1 104 Asset management and other fees to related parties (9,030) (9,793) Expense reimbursements to related parties—corporate (2,050) (2,243) Interest expense (9,005) (10,547) General and administrative (4,581) (4,212) Transaction costs (143) — Depreciation and amortization (20,112) (21,406) Loss on early extinguishment of debt — (281) Impairment of real estate — — Gain on sale of real estate — — Income before provision for income taxes 2,141 (15,737) (Provision) benefit for income taxes (2,992) 722 Net (loss) income (851) (15,015) Net loss (income) attributable to noncontrolling interests 1 (1) Net (loss) income attributable to the Company $ (850) $ (15,016) The condensed assets for each of the segments as of December 31, 2021 and 2020, along with capital expenditures and loan originations for the years ended December 31, 2021 and 2020 are as follows: December 31, 2021 2020 (in thousands) Condensed assets: Office $ 449,843 $ 472,544 Hotel 101,308 100,285 Lending 96,729 94,626 Non-segment assets 12,986 18,162 Total assets $ 660,866 $ 685,617 Year Ended December 31, 2021 2020 (in thousands) Capital expenditures (1) and loan originations: Office $ 5,714 $ 8,514 Hotel 193 821 Total capital expenditures 5,907 9,335 Loan originations 133,290 53,524 Total capital expenditures and loan originations $ 139,197 $ 62,859 (1) Represents additions and improvements to real estate investments, excluding acquisitions. Includes the activity for dispositions through their respective disposition dates. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS Property Acquisitions In February 2022, the Company and a co-investor acquired from an unrelated third-party a 100% fee-simple interest in an office property located in the Echo Park neighborhood of Los Angeles, California for a purchase price of $51.0 million, which excludes transaction costs of $51,000 that were incurred in connection with this acquisition. The property has approximately 97,564 square feet of office space and 2,760 square feet of retail space. The Company owns approximately 44% of this property. The Company plans to undertake a capital improvement program to renovate and modernize the building into creative office space as well as a limited number of multifamily units. In February 2022, the Company acquired from an unrelated third-party a 100% fee-simple interest in a 11,318 square feet land site with a 3,752 square feet building located in Los Angeles, California for a purchase price of $2.3 million, which excludes transaction costs of $8,000 that were incurred in connection with this acquisition. The Company intends to pursue entitlements for residential use and develop into multifamily units. Dividend Declaration On March 8, 2022, the Company declared a cash dividend of $0.085 per share of its Common Stock, to be paid on April 1, 2022 to stockholders of record at the close of business on March 19, 2022. On March 8, 2022, the Company declared a quarterly cash dividend of $0.34375 per share of the Series A Preferred Stock for the second quarter of 2022. The dividend will be payable as follows: $0.114583 per share to be paid on May 16, 2022 to Series A Preferred Stockholders of record on May 5, 2022; $0.114583 per share to be paid on June 15, 2022 to Series A Preferred Stockholders of record on June 5, 2022; and $0.114583 per share to be paid on July 15, 2022 to Series A Preferred Stockholders of record on July 5, 2022. For shares of Series A Preferred Stock issued during the second quarter of 2021, the dividend will be prorated from the date of issuance, and the monthly dividend payments will reflect such proration, as applicable. On March 8, 2022, the Company declared a quarterly cash dividend of $0.353125 per share of the Series D Preferred Stock for the second quarter of 2022. The dividend will be payable as follows: $0.117708 per share to be paid on May 16, 2022 to Series D Preferred Stockholders of record on May 5, 2022; $0.117708 per share to be paid on June 15, 2022 to Series D Preferred Stockholders of record on June 5, 2022; and $0.117708 per share to be paid on July 15, 2022 to Series D Preferred Stockholders of record on July 5, 2022. For shares of Series D Preferred Stock issued during the second quarter of 2021, the dividend will be prorated from the date of issuance, and the monthly dividend payments will reflect such proration, as applicable. Fee Waiver On January 5, 2022, the Company and certain of its subsidiaries entered into the Fee Waiver with the Operator and the Administrator with respect to fees that are payable to them. The Fee Waiver is effective retroactively to January 1, 2022. See Note 12 “Related-Party Transactions— Fee Waiver.” |
SCHEDULE III - REAL ESTATE AND
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2021 | |
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 December 31, 2021 (in thousands) Initial Cost Net Gross Amount at Which Carried (2) Property Name, Encumbrances Land Building Land Building Total Acc. Year Built / Year of Office 3601 S Congress Avenue Austin, TX (1) $ 9,569 $ 18,593 $ 12,532 $ 9,569 $ 31,125 $ 40,694 $ 8,857 1918 / 2001 & 2020 2007 1 Kaiser Plaza Oakland, CA $ 97,100 9,261 113,619 19,048 9,261 132,667 141,928 52,113 1970 / 2008 2008 2 Kaiser Plaza Parking Lot Oakland, CA — 10,931 110 3,153 10,931 3,263 14,194 42 N/A 2015 11600 Wilshire Boulevard Los Angeles, CA (1) 3,477 18,522 2,090 3,477 20,612 24,089 6,584 1955 2010 11620 Wilshire Boulevard Los Angeles, CA (1) 7,672 51,999 6,457 7,672 58,456 66,128 17,940 1976 2010 4750 Wilshire Boulevard Los Angeles, CA (1) 16,633 28,985 5,375 16,633 34,360 50,993 6,367 1984 / 2014 2014 Lindblade Media Center Los Angeles, CA (1) 6,342 11,568 (101) 6,342 11,467 17,809 2,198 1930 & 1957 / 2010 2014 1037 N Sycamore Los Angeles, CA — 1,839 1,094 48 1,839 1,142 2,981 14 2000 / 2021 2021 1130 Howard Street San Francisco, CA (1) 8,290 10,480 131 8,290 10,611 18,901 1,297 1930 / 2016 & 2017 2017 9460 Wilshire Boulevard Los Angeles, CA (1) 52,199 76,730 1,681 52,199 78,411 130,610 8,738 1959 / 2008 2018 1021 E 7th Street Austin, TX — 4,976 733 — 4,976 733 5,709 113 1972 / 2001 2020 Hotel Sheraton Grand Hotel Sacramento, CA (1) 3,497 107,447 (99) 3,497 107,348 110,845 36,612 2001 2008 Sheraton Grand Hotel Parking & Retail Sacramento, CA — 6,550 10,996 275 6,550 11,271 17,821 3,843 2001 2008 $ 97,100 $ 141,236 $ 450,876 $ 50,590 $ 141,236 $ 501,466 $ 642,702 $ 144,718 (1) These properties collateralize the revolving credit facility, which had a $60.0 million outstanding balance as of December 31, 2021. (2) The aggregate gross cost of property included above for federal income tax purposes approximates $695.1 million (unaudited) as of December 31, 2021. Schedule III—Real Estate and Accumulated Depreciation (Continued) December 31, 2021 (in thousands) The following table reconciles the Company’s investments in real estate from January 1, 2020 to December 31, 2021: Year Ended December 31, 2021 2020 (in thousands) Investments in Real Estate Balance, beginning of period $ 637,205 $ 629,262 Additions: Improvements 5,907 9,335 Property acquisitions 2,933 5,709 Deductions: Assets held for sale — — Asset sales — — Impairment — — Retirements (3,343) (7,101) Balance, end of period $ 642,702 $ 637,205 The following table reconciles the accumulated depreciation from January 1, 2020 to December 31, 2021: Year Ended December 31, 2021 2020 (in thousands) Accumulated Depreciation Balance, beginning of period $ (131,165) $ (120,555) Additions: depreciation (16,896) (17,711) Deductions: Assets held for sale — — Asset sales — — Retirements 3,343 7,101 Balance, end of period $ (144,718) $ (131,165) |
SCHEDULE IV - MORTGAGE LOANS ON
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE | 12 Months Ended |
Dec. 31, 2021 | |
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 December 31, 2021 (dollars in thousands, except footnotes) Principal Amount of Loans Subject Geographic Number Final Carrying to Delinquent Dispersion of of Size of Loans Maturity Amount of Principal or Collateral Loans From To Interest Rate Date Range Mortgages (1) “Interest” SBA 7(a) Loans - States 2% or greater (2) (3) : Texas 21 $ 10 $ 980 4.75% to 6.00% 05/22/23 — 08/20/46 $ 7,861 $ — Ohio 23 $ 70 $ 890 4.75% to 6.00% 03/26/37 — 12/07/46 7,672 — Indiana 16 $ 100 $ 970 4.75% to 6.00% 05/14/36 — 08/26/46 6,873 — Michigan 20 $ 10 $ 970 4.75% to 6.00% 10/10/33 — 10/27/46 5,859 — Florida 12 $ 90 $ 1,070 5.00% to 6.00% 06/29/32 — 08/19/46 5,173 — Illinois 11 $ 50 $ 530 5.00% to 6.00% 09/08/39 — 10/15/46 2,278 — West Virginia 6 $ 20 $ 870 4.75% to 6.00% 09/25/31 — 09/20/46 2,107 — Pennsylvania 4 $ 310 $ 690 5.00% to 6.00% 03/05/40 — 11/29/43 2,077 — Louisiana 6 $ 90 $ 590 5.00% to 6.00% 11/22/31 — 02/22/46 1,801 — New Mexico 5 $ 100 $ 770 4.75% to 6.00% 11/17/34 — 08/09/46 1,720 — Virginia 5 $ 110 $ 650 5.00% to 5.75% 02/27/43 — 09/08/46 1,640 — Colorado 4 $ 320 $ 520 4.75% to 5.50% 11/16/39 — 09/15/45 1,515 — Kentucky 6 $ 130 $ 420 5.00% to 6.00% 01/04/41 — 10/29/46 1,498 — Alabama 7 $ 30 $ 480 5.00% to 5.75% 07/27/25 — 09/10/46 1,473 — North Carolina 7 $ 60 $ 350 5.25% to 6.00% 09/08/32 — 09/30/46 1,358 — South Carolina 4 $ 270 $ 390 5.00% to 6.00% 11/06/40 — 07/30/44 1,308 — Other (4) 42 $ 1 $ 510 4.75% to 6.00% 03/29/22 — 12/14/46 9,415 85 Government guaranteed portions (5) 1,199 — SBA 7(a) loans, subject to secured borrowings (6) 6,671 — Paycheck Protection Program loans, net (7) 4,903 — General reserves (858) — 199 $ 73,543 (8) $ 85 (1) Excludes general reserves of $858,000 since not specifically identified. (2) Includes $359,000 of loans with subordinate lien positions. (3) Interest rates are variable at spreads over the prime rate unless otherwise noted. (4) Includes a loan with a retained face value of $85,000, a valuation reserve of $85,000 and a fixed interest rate of 6.00%. (5) Represents the government guaranteed portions of the Company’s SBA 7(a) loans detailed above retained by us. As there is no risk of loss to us related to these portions of the guaranteed loans, the geographic information is not presented as it is not meaningful. (6) Represents the guaranteed portion of SBA 7(a) loans which were sold with the proceeds received from the sale reflected as secured borrowings. For Federal income tax purposes, these proceeds are treated as sales and reduce the carrying value of loans receivable. (7) PPP loans are 100% guaranteed. As there is no risk of loss to us related to these loans, the geographic information is not presented as it is not meaningful. Face value of these loans is $5.1 million. (8) For Federal income tax purposes, the aggregate cost basis of the Company’s loans was approximately $66.4 million (unaudited). Schedule IV—Mortgage Loans on Real Estate (Continued) December 31, 2021 (in thousands) Year Ended December 31, 2021 2020 Balance, beginning of period $ 83,135 $ 68,079 Additions during period: New loans 133,290 53,524 Other - deferral of loan origination costs 2,559 382 Other - accretion of loan discounts, net of amortization of deferred origination costs 1,424 933 Deductions during period: Collections of principal (32,370) (11,580) Foreclosures — (174) Cost of mortgages sold, net (114,437) (27,609) Other - bad debt expense (58) (420) Balance, end of period $ 73,543 $ 83,135 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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 (“GAAP”). |
Principles of Consolidation | Principles of Consolidation—The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In determining whether the Company has controlling interests in an entity and the requirement to consolidate the accounts in that entity, the Company analyzes its investments in real estate in accordance with standards set forth in GAAP to determine whether they are variable interest entities (“VIEs”), and if so, whether the Company is the primary beneficiary. The Company’s judgment with respect to its level of influence or control over an entity and whether the Company is the primary beneficiary of a VIE involves consideration of various factors, including the form of the Company’s ownership interest, the Company’s voting interest, the size of the Company’s investment (including loans), and the Company’s ability to participate in major policy-making decisions. The Company’s ability to correctly assess its influence or control over an entity affects the presentation of these investments in real estate on the Company’s consolidated financial statements. As of December 31, 2021, the Company has determined that the trust formed for the benefit of the note holders (the “Trust”) for the securitization of the unguaranteed portion of certain of the Company’s SBA 7(a) loans receivable is considered a VIE. Applying the consolidation requirements for VIEs, the Company determined that it is the primary beneficiary based on its power to direct activities through its role as servicer and its obligations to absorb losses and right to receive benefits. |
Investments in Real Estate | Investments in Real Estate —Investments in real estate are stated at depreciated cost. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives as follows: Buildings and improvements 15 - 40 years Furniture, fixtures, and equipment 3 - 5 years Tenant improvements Lesser of useful life or lease term The fair value of real estate acquired is recorded to acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of acquired above-market and below-market leases, in-place leases and ground leases, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. Capitalized Project Costs The Company capitalizes project costs, including pre-construction costs, interest expense, property taxes, insurance, and other costs directly related and essential to the development, redevelopment, or construction of a project, while activities are ongoing to prepare an asset for its intended use. Costs incurred after a project is substantially complete and ready for its intended use are expensed as incurred. Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Ordinary repairs and maintenance are expensed as incurred. |
Recoverability of Investments in Real Estate | Recoverability of Investments in Real Estate—The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. Investments in real estate are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If, and when, such events or changes in circumstances are present, the recoverability of assets to be held and used requires significant judgment and estimates and is measured by a comparison of the carrying amount to the future undiscounted cash flows expected to be generated by the assets and their eventual disposition. If the undiscounted cash flows are less than the carrying amount of the assets, an impairment is recognized to the extent the carrying amount of the assets exceeds the estimated fair value of the assets. The process for evaluating real estate impairment requires management to make significant assumptions related to certain inputs, including rental rates, lease-up period, occupancy, estimated holding periods, capital expenditures, growth rates, market discount rates and terminal capitalization rates. These inputs require a subjective evaluation based on the specific property and market. Changes in the assumptions could have a significant impact on either the fair value, the amount of impairment charge, if any, or both. Any asset held for sale is reported at the lower of the asset’s carrying amount or fair value, less costs to sell. When an asset is identified by the Company as held for sale, the Company will cease recording depreciation and amortization of the asset. |
Cash and Cash Equivalents | Cash and Cash Equivalents —Cash and cash equivalents include short-term liquid investments with initial maturities of three months or less. |
Restricted Cash | Restricted Cash —The Company’s mortgage loan and hotel management agreements provide for depositing cash into restricted accounts reserved for capital expenditures, free rent, tenant improvement and leasing commission obligations. Restricted cash also includes cash required to be segregated in connection with certain of the Company’s loans receivable. |
Loans Receivable | Loans Receivable —The Company’s loans receivable are carried at their unamortized principal balance less unamortized acquisition discounts and premiums, deferred origination fees, retained loan discounts and loan loss reserves. Acquisition discounts or premiums, origination fees and retained loan discounts are amortized as a component of interest and other income using the effective interest method over the life of the respective loans, or on a straight-line basis when it approximates the effective interest method. All loans were originated pursuant to programs sponsored by the Small Business Administration (the “SBA”). The programs consist of loans originated under the SBA 7(a) Small Business Loan Program (the “SBA 7(a) Program”) and, commencing with the quarter ended June 30, 2020, the Paycheck Protection Program (the “PPP”). Pursuant to the SBA 7(a) Program, the Company sells the portion of the loan that is guaranteed by the SBA. Upon sale of the SBA guaranteed portion of the loans, which are accounted for as sales, the unguaranteed portion of the loan retained by the Company is recorded at fair value and a discount is recorded as a reduction in basis of the retained portion of the loan. Unamortized retained loan discounts were $9.6 million and $7.8 million as of December 31, 2021 and 2020, respectively. At the closing of the merger between CIM Urban REIT, LLC (“CIM REIT”), an affiliate of CIM Group, and certain of its subsidiaries and PMC Commercial Trust, the predecessor to the Company, the carrying value of the Company’s loans was adjusted to estimated fair market value and acquisition discounts of $33.9 million were recorded, which are being accreted to interest and other income using the effective interest method. Acquisition discounts of $381,000 and $492,000 remained as of December 31, 2021 and 2020, respectively. A loan receivable is generally classified as non-accrual (a “Non-Accrual Loan”) if (i) it is past due as to payment of principal or interest for a period of 60 days or more, (ii) any portion of the loan is classified as doubtful or is charged-off or (iii) the repayment in full of the principal and or interest is in doubt. Generally, loans are charged-off when management determines that the Company will be unable to collect any remaining amounts due under the loan agreement, either through liquidation of collateral or other means. Interest income, included in interest and other income, on a Non-Accrual Loan is recognized on the cost recovery basis. |
Loan Loss Reserves | Loan Loss Reserves—On a quarterly basis, and more frequently if indicators exist, the Company evaluates the collectability of its loans receivable. The Company’s evaluation of collectability involves significant judgment, estimates, and a review of the ability of the borrower to make principal and interest payments, the underlying collateral and the borrowers’ business models and future operations. For the years ended December 31, 2021 and 2020, the Company recorded net impairment losses of $19,000 and a net recovery of $16,000, respectively, on its loans receivable. There were no material loans receivable subject to credit risk which were considered to be impaired as of December 31, 2021 or 2020. The Company considers a loan to be impaired when the Company does not expect to collect all of the contractual interest and principal payments as scheduled in the loan agreements. The Company also establishes a general loan loss reserve when available information indicates that it is probable a loss has occurred based on the carrying value of the portfolio and the amount of the loss can be reasonably estimated. Significant judgment is required in determining the general loan loss reserve, including estimates of the likelihood of default and the estimated fair value of the collateral. The general loan loss reserve includes those loans, which may have negative characteristics which have not yet become known to the Company. In addition to the reserves established on loans not considered impaired that have been evaluated under a specific evaluation, the Company establishes the general loan loss reserve using a consistent methodology to determine a loss percentage to be applied to loan balances. These loss percentages are based on many factors, primarily cumulative and recent loss history and general economic conditions. |
Deferred Rent Receivable and Charges | Deferred Rent Receivable and Charges —Deferred rent receivable and charges consist of deferred rent, deferred leasing costs, deferred offering costs (Note 9) and other deferred costs. Deferred leasing costs, which represent lease commissions and other direct costs associated with the acquisition of tenants, are capitalized and amortized on a straight-line basis over the terms of the related leases. Deferred offering costs represent direct costs incurred in connection with the Company’s offerings of Series A Preferred Units, and, after January 2020, Series A Preferred Stock and Series D Preferred Stock, excluding costs specifically identifiable to a closing, such as commissions, dealer-manager fees, and other offering fees and expenses. Generally, for a specific issuance of securities, issuance-specific offering costs are recorded as a reduction of proceeds raised on the issuance date and offering costs incurred but not directly related to a specifically identifiable closing of a security are deferred. Deferred offering costs are first allocated to each issuance of a security on a pro-rata basis equal to the |
Noncontrolling Interests | Noncontrolling Interests —Noncontrolling interests represent the interests in various properties owned by third parties. |
Redeemable Preferred Stock | Redeemable Preferred Stock —Beginning on the date of original issuance of any given shares of Series A Preferred Stock or Series D Preferred Stock, and from and after the fifth anniversary date of the original issuance of the Series L Preferred Stock, the holder of such shares has the right to require the Company to redeem such shares, subject to certain limitations as discussed in Note 9. The Company records the activity related to the Series A Preferred Warrants, Series D Preferred Stock and Series L Preferred Stock in permanent equity. In the event a holder of Series A Preferred Stock requests redemption of such shares and such redemption takes place prior to the first anniversary of the date of original issuance, the Company is required to pay such redemption in cash. As a result, the Company records issuances of Series A Preferred Stock in temporary equity. On the first anniversary of the date of original issuance of a particular share of Series A Preferred Stock, the Company reclassifies such share of Series A Preferred Stock from temporary equity to permanent equity because the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary date. |
Purchase Accounting for Acquisition of Investments in Real Estate | Purchase Accounting for Acquisition of Investments in Real Estate —The Company applies the acquisition method to all acquired real estate assets. The purchase consideration of the real estate, which includes the transaction costs incurred in connection with such acquisitions, is recorded at fair value to the acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, and furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of acquired above-market and below-market leases, in-place leases and ground leases, if any, based in each case on their relative fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. The fair value of the tangible assets of an acquired property is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land (or acquired ground lease if the land is subject to a ground lease), land improvements, building and improvements, and tenant improvements based on management’s determination of the relative fair values of these assets. Management determines the as-if-vacant fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases, including leasing commissions, legal, and other related costs. In allocating the purchase consideration of the identified intangible assets and liabilities of an acquired property, above-market, below-market, and in-place lease values are recorded based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the remaining non-cancelable term of the lease, and for below-market leases, over a period equal to the initial term plus any below-market fixed-rate renewal periods. Acquired above-market and below-market leases are amortized and recorded to rental and other property income over the initial terms of the respective leases. The aggregate value of other acquired intangible assets, consisting of in-place leases and tenant relationships, is measured by the estimated cost of operations during a theoretical lease-up period to replace in-place leases, including lost revenues and any unreimbursed operating expenses, plus an estimate of deferred leasing commissions for in-place leases. The value of in-place leases is amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease is terminated prior to its stated expiration, all unamortized amounts relating to that lease are written-off. |
Revenue Recognition | Revenue Recognition —At the inception of a revenue-producing contract, the Company determines if a contract qualifies as a lease and if not, then as a customer contract. Based on this determination, the appropriate treatment in accordance with GAAP is applied to the contract, including its revenue recognition. Revenue from leasing activities The Company operates as a lessor of real estate assets. When the Company enters into a contract or amends an existing contract, the Company evaluates if the contracts meet the definition of a lease using the following criteria: • One party (lessor) must hold an identified asset; • The counterparty (lessee) must have the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of the contract; and • The counterparty (lessee) must have the right to direct the use of the identified asset throughout the period of the contract. The Company determined that the Company’s contracts with its tenants explicitly identify the premises and that any substitution rights to relocate tenants to other premises within the same building stated in the contract are not substantive. Additionally, so long as payments are made timely under such contracts, the Company’s tenants have the right to obtain substantially all the economic benefits from the use of the identified asset and can direct how and for what purpose the premises are used to conduct their operations. Therefore, the contracts with the Company’s tenants constitute leases. All leases are classified as operating leases and minimum rents are recognized on a straight-line basis over the terms of the leases when collectability is probable and the tenant has taken possession or controls the physical use of the leased asset. The excess of rents recognized over amounts contractually due pursuant to the underlying leases is recorded as deferred rent. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is considered the owner of the improvements, any tenant improvement allowance that is funded is treated as an incentive. Lease incentives paid to tenants are included in other assets and amortized as a reduction to rental revenue on a straight-line basis over the term of the related lease. Lease incentives of $4.0 million and $4.0 million are presented net of accumulated amortization of $2.7 million and $2.4 million as of December 31, 2021 and 2020, respectively. Reimbursements from tenants, consisting of amounts due from tenants for common area maintenance, real estate taxes, insurance, and other recoverable costs, are recognized as revenue and are included in rental and other property income in the period the expenses are incurred, with the corresponding expenses included in rental and other property operating expense. Tenant reimbursements are recognized and presented on a gross basis when the Company is primarily responsible for fulfilling the promise to provide the specified good or service and control that specified good or service before it is transferred to the tenant. The Company has elected not to separate lease and non-lease components as the pattern of revenue recognition does not differ for the two components, and the non-lease component is not the primary component in the Company’s leases. In addition to minimum rents, certain leases, including the Company’s parking leases with third-party operators, provide for additional rents based upon varying percentages of tenants’ sales in excess of annual minimums. Percentage rent is recognized once lessees’ specified sales targets have been met. For the years ended December 31, 2021 and 2020, the Company recognized rental income as follows: Year Ended December 31, 2021 2020 (in thousands) Rental and other property income Fixed lease payments (1) $ 45,773 $ 50,245 Variable lease payments (2) 7,065 4,578 Rental and other property income $ 52,838 $ 54,823 (1) Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above-market leases, below-market leases and lease incentives. (2) Variable lease payments include expense reimbursements billed to tenants and percentage rent, net of bad debt expense from the Company’s operating leases plus cash payments from tenants deemed not probable of collections. Collectability of Lease-Related Receivables The Company continually reviews whether collection of lease-related receivables, including any straight-line rent, and current and future operating expense reimbursements from tenants is probable. The determination of whether collectability is probable takes into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. Upon the determination that the collectability of a receivable is not probable, the Company will record a reduction to rental and other property income and a decrease in the outstanding receivable. Revenue from leases where collection is deemed to be not probable is recorded on a cash basis until collectability becomes probable. Management’s estimate of the collectability of lease-related receivables is based on the best information available at the time of estimate. The Company does not use a general reserve approach. As of December 31, 2021 and 2020, the Company had identified certain tenants where collection was no longer considered probable and decreased outstanding receivables by $579,000 and $1.9 million, respectively, across all operating leases. Revenue from lending activities Interest income included in interest and other income is comprised of interest earned on loans and the Company’s short-term investments and the accretion of loan discounts. Interest income on loans is accrued as earned with the accrual of interest suspended when the related loan becomes a Non-Accrual Loan (as defined below). Revenue from hotel activities The Company recognizes revenue from hotel activities separate from its leasing activities. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or implied by customary business practices. Various performance obligations of hotel revenues can be categorized as follows: • cancellable and noncancelable room revenues from reservations and • ancillary services including facility usage and food or beverage. Cancellable reservations represent a single performance obligation of providing lodging services at the hotel. The Company satisfies its performance obligation and recognizes revenues associated with these reservations over time as services are rendered to the customer. The Company satisfies its performance obligation and recognizes revenues associated with noncancelable reservations at the earlier of (i) the date on which the customer cancels the reservation or (ii) over time as services are rendered to the customer. Ancillary services include facilities usage and providing food and beverage. The Company satisfies its performance obligation and recognizes revenues associated with these services at a point in time when the good or service is delivered to the customer. At inception of a contract with a customer for hotel goods and services, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate. The Company presents hotel revenues net of sales, occupancy, and other taxes. Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 16: Year Ended December 31, 2021 2020 (in thousands) Hotel properties Hotel income $ 16,722 $ 11,882 Rental and other property income 1,070 1,353 Interest and other income 57 79 Hotel revenues $ 17,849 $ 13,314 Tenant recoveries outside of the lease agreements |
Premiums and Discounts on Debt | Premiums and Discounts on Debt — Premiums and discounts on debt are accreted or amortized to interest expense using the effective interest method or on a straight-line basis over the respective term of the debt, which approximates the effective interest method. |
Stock-Based Compensation Plans | Stock-Based Compensation Plans —The Company has issued and continue to issue restricted shares under stock-based compensation plans described more fully in Note 8. The Company uses fair value recognition provisions to account for all awards granted, modified or settled. |
Earnings per Share ("EPS") | Earnings per Share (“EPS”) —Basic EPS is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of Common Stock outstanding for the period. Net income attributable to common stockholders includes a deduction for dividends due to preferred stockholders. Diluted EPS is computed by dividing net income attributable to common stockholders by the weighted average number of shares of Common Stock outstanding adjusted for the dilutive effect, if any, of securities such as stock-based compensation awards, warrants, including the Series A Preferred Warrants and preferred stock, including the Series A Preferred Stock, Series D Preferred Stock and Series L Preferred Stock, whose redemption is payable in shares of Common Stock or cash, at the discretion of the Company. The dilutive effect of stock-based compensation awards and warrants, including the Series A Preferred Warrants, is reflected in the weighted average diluted shares calculation by application of the treasury stock method. The dilutive effect of preferred stock, including the Series A Preferred Stock, Series D Preferred Stock and Series L Preferred Stock, whose redemption is payable in shares of Common Stock or cash, at the discretion of the Company, is reflected in the weighted average diluted shares calculation by application of the if-converted method. |
Distributions | Distributions —Distributions on the Company’s Series A Preferred Stock, Series D Preferred Stock, Series L Preferred Stock and Common Stock are recorded when they are authorized by its Board of Directors and declared by the Company. |
Assets Held for Sale and Discontinued Operations | Assets Held for Sale and Discontinued Operations —In the ordinary course of business, the Company may periodically enter into agreements to dispose of its assets. Some of these agreements are non-binding because either they do not obligate either party to pursue any transactions until the execution of a definitive agreement or they provide the potential buyer with the ability to terminate without penalty or forfeiture of any material deposit, subject to certain specified contingencies, such as completion of due diligence at the discretion of such buyer. The Company does not classify assets that are subject to such non-binding agreements as held for sale. The Company classifies assets as held for sale, if material, when they meet the necessary criteria, which include: a) management commits to and actively embarks upon a plan to sell the assets, b) the assets to be sold are available for immediate sale in their present condition, c) the sale is expected to be completed within one year under terms usual and customary for such sales and d) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company generally believes that it meets these criteria when the plan for sale has been approved by its management, having the authority to approve the sale, there are no known significant contingencies related to the sale and management believes it is probable that the sale will be completed within one year. Assets held for sale are recorded at the lower of cost or estimated fair value less cost to sell. In addition, if the Company were to determine that the asset disposal associated with assets held for sale or disposed of represents a strategic shift, the revenues, expenses and net gain (loss) on dispositions would be recorded in discontinued operations for all periods presented through the date of the applicable disposition. |
Derivative Financial Instruments | Derivative Financial Instruments —As part of risk management and operational strategies, from time to time, the Company may enter into derivative contracts with various counterparties. All derivatives are recognized on the balance sheet at their estimated fair value. Accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the designation of the derivative instrument. The change in fair value of the derivative instrument that is designated as a hedge is recorded as other comprehensive income. The changes in fair value for derivative instruments that are not designated as hedges or that do not meet the hedge accounting criteria are recorded as a gain or loss to operations. |
Income Taxes | Income Taxes —The Company has elected to be taxed as a REIT under the provisions of the Code. To the extent the Company qualifies for taxation as a REIT, it generally will not be subject to a federal corporate income tax on its taxable income that is distributed to its stockholders. The Company may, however, be subject to certain federal excise taxes and state and local taxes on its income and property. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income taxes at regular corporate rates and will not be able to qualify as a REIT for four subsequent taxable years. In order to remain qualified as a REIT under the Code, the Company must satisfy various requirements in each taxable year, including, among others, limitations on share ownership, asset diversification, sources of income, and the distribution of at least 90% of its taxable income within the specified time in accordance with the Code. The Company has wholly-owned taxable REIT subsidiaries (“TRS’s”) which are subject to federal income taxes. The income generated from the taxable REIT subsidiaries is taxed at normal corporate rates. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. The Company has established a policy on classification of penalties and interest related to audits of its federal and state income tax returns. If incurred, the Company’s policy for recording interest and penalties associated with audits will be to record such items as a component of general and administrative expense. Penalties, if incurred, will be recorded in general and administrative expense and interest paid or received will be recorded in interest expense or interest income, respectively, in the Company’s consolidated statements of operations. ASC 740, Income Taxes , provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more likely than not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current period. The Company has reviewed all open tax years and concluded that the application of ASC 740 resulted in no material effect to its consolidated financial position or results of operations. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases such estimates on historical experience, information available at the time, and assumptions the Company believes to be reasonable under the circumstances and at such time, including the impact of extraordinary events such as COVID-19. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk —Financial instruments that subject us to credit risk consist primarily of cash and cash equivalents and interest rate swap agreements. The Company has its cash and cash equivalents on deposit with what it believes to be high-quality financial institutions. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000. Management routinely assesses the financial strength of its tenants and, as a consequence, believes that its accounts receivable credit risk exposure is limited. The majority of the Company’s revenues are earned from properties located in California. The Company is subject to risks incidental to the ownership and operation of commercial real estate. These include, among others, the risks normally associated with changes in the general economic climate in the communities in which the Company operates, trends in the real estate industry, changes in tax laws, interest rate levels, availability of financing, and the potential liability under environmental and other laws. |
Segment Information | Segment Information —Segment information is prepared on the same basis that the Company’s management reviews information for operational decision-making purposes. The Company reportable segments for the years ended December 31, 2021 and 2020 consist of two types of commercial real estate properties, namely office and hotel, as well as a segment for its lending business. The products for the Company’s office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking, and storage space rental. The products for the Company’s hotel segment include revenues generated from the operations of hotel properties and rental income generated from a garage located directly across the street from the hotel. The income from the Company’s lending segment includes premium income recognized from the sale of the government guaranteed portion of loans receivable, income from the yield on its loans receivable and other related fee income earned on its loans receivable. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements— In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which was subsequently amended by ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses (“ASU 2018-19”) in November 2018. Subsequently, the FASB issued ASU No. 2019-04, ASU No. 2019-05, ASU No. 2019-10, ASU No. 2019-11 and ASU No. 2020-02 to provide additional guidance on the credit losses standard. ASU 2016-13 and the related updates improve financial reporting requiring more timely recognition of credit losses on loans and other financial instruments that are not accounted for at fair value through net income, including loans held-for-investment, held-to-maturity debt securities, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology under current GAAP. ASU 2018-19 clarified that receivables arising from operating leases are not within the scope of Topic 326. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with ASU No. 2016-02, Leases (Topic 842). For smaller reporting companies, public entities that are not SEC filers, and entities that are not public business entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2022. Early adoption is permitted for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2018. The Company has not yet adopted ASU 2016-13 and the related updates and remains in the process of evaluating the impact of adoption of this new accounting guidance on its consolidated financial statements. On April 10, 2020, the FASB issued a question-and-answer document (the “Q&A”) to address stakeholder questions on the application of the lease accounting guidance for lease concessions related to the effects of COVID-19. The lease modification guidance in Topic 842, Leases , (or Topic 840, Leases ) would require the Company to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was made pursuant to the enforceable rights and obligations of the existing lease agreement (precluded from applying the lease modification accounting framework). However, the Q&A provides |
Fair Value of Financial Instruments | The Company determines the estimated fair value of financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. The hierarchy for inputs used in measuring fair value is as follows: Level 1 Inputs —Quoted prices in active markets for identical assets or liabilities Level 2 Inputs —Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 Inputs —Unobservable inputs In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Management’s estimation of the fair value of the Company’s financial instruments is based on a Level 3 valuation in the fair value hierarchy established for disclosure of how a company values its financial instruments. In general, quoted market prices from active markets for the identical financial instrument (Level 1 inputs), if available, should be used to value a financial instrument. If quoted prices are not available for the identical financial instrument, then a determination should be made if Level 2 inputs are available. Level 2 inputs include quoted prices for similar financial instruments in active markets for identical or similar financial instruments in markets that are not active (i.e., markets in which there are few transactions for the financial instruments, the prices are not current, price quotations vary substantially, or in which little information is released publicly). There is limited reliable market information for the Company’s financial instruments and the Company utilizes other methodologies based on unobservable inputs for valuation purposes since there are no Level 1 or Level 2 inputs available. Accordingly, Level 3 inputs are used to measure fair value. In general, estimates of fair value may differ from the carrying amounts of the financial assets and liabilities primarily as a result of the effects of discounting future cash flows. Considerable judgment is required to interpret market data and develop estimates of fair value. Accordingly, the estimates presented are made at a point in time and may not be indicative of the amounts the Company could realize in a current market exchange. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Estimated Useful Lives of Real Estate Investment Assets | Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives as follows: Buildings and improvements 15 - 40 years Furniture, fixtures, and equipment 3 - 5 years Tenant improvements Lesser of useful life or lease term |
Schedule of Deferred Rent Receivables and Charges, Net | As of December 31, 2021 and 2020, deferred rent receivable and charges, net consist of the following: December 31, 2021 December 31, 2020 (in thousands) Deferred rent receivable $ 20,870 $ 20,470 Deferred leasing costs, net of accumulated amortization of $8,971 and $7,742, respectively 8,453 8,950 Deferred offering costs 6,281 6,046 Other deferred costs 491 490 Deferred rent receivable and charges, net $ 36,095 $ 35,956 |
Schedule of Recognized Rental Income | For the years ended December 31, 2021 and 2020, the Company recognized rental income as follows: Year Ended December 31, 2021 2020 (in thousands) Rental and other property income Fixed lease payments (1) $ 45,773 $ 50,245 Variable lease payments (2) 7,065 4,578 Rental and other property income $ 52,838 $ 54,823 (1) Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above-market leases, below-market leases and lease incentives. |
Reconciliation of Hotel Revenue | Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 16: Year Ended December 31, 2021 2020 (in thousands) Hotel properties Hotel income $ 16,722 $ 11,882 Rental and other property income 1,070 1,353 Interest and other income 57 79 Hotel revenues $ 17,849 $ 13,314 |
INVESTMENTS IN REAL ESTATE (Tab
INVESTMENTS IN REAL ESTATE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Investments in Real Estate | Investments in real estate consist of the following: December 31, 2021 2020 (in thousands) Land $ 141,236 $ 139,397 Land improvements 2,644 2,611 Buildings and improvements 454,431 450,741 Furniture, fixtures, and equipment 4,398 4,969 Tenant improvements 29,733 31,414 Work in progress 10,260 8,073 Investments in real estate 642,702 637,205 Accumulated depreciation (144,718) (131,165) Net investments in real estate $ 497,984 $ 506,040 |
Schedule of Asset Acquisitions | During the year ended December 31, 2021, the Company acquired a 100% fee-simple interest in the following property from an unrelated third-party. The purchase was accounted for as an asset acquisition. Asset Date of Purchase Property Type Acquisition Square Feet Price (1) (in thousands) 1037 North Sycamore, Los Angeles, CA Office July 13, 2021 4,900 $ 2,900 (1) Transaction costs that were capitalized as a component of the assets acquired and liabilities assumed in connection with the acquisition of this property totaled $33,000, which are not included in the purchase price above. Asset Date of Purchase Property Type Acquisition Square Feet Price (1) (in thousands) 1021 East 7th Street, Austin, TX Office November 30, 2020 11,180 $ 6,079 (1) Transaction costs that were capitalized as a component of the assets acquired and liabilities assumed in connection with the acquisition of this property totaled $51,000, which are not included in the purchase price above. |
Schedule of the Fair Value of the Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price allocation of the aforementioned acquisitions during the years ended December 31, 2021 and 2020. Year Ended December 31, 2021 2020 (in thousands) Land $ 1,839 $ 4,976 Land improvements 33 9 Buildings and improvements 1,061 534 Tenant improvements — 190 Acquired in-place leases (1) — 408 Acquired above-market leases (2) — 18 Acquired below-market leases (3) — (5) Net assets acquired $ 2,933 $ 6,130 (1) Acquired in-place leases have a weighted average amortization period of 3 years for the 2020 acquisition. (2) Acquired above-market leases have a weighted average amortization period of 3 years for the 2020 acquisition. |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | Loans receivable consist of the following: December 31, 2021 2020 (in thousands) SBA 7(a) loans receivable, subject to credit risk $ 42,103 $ 32,226 SBA 7(a) loans receivable, subject to loan-backed notes 18,050 23,631 SBA 7(a) loans receivable, Paycheck Protection Program 5,050 14,484 SBA 7(a) loans receivable, subject to secured borrowings 6,857 8,786 SBA 7(a) loans receivable, held for sale 1,200 4,009 Loans receivable 73,260 83,136 Deferred capitalized costs, net 1,226 884 Loan loss reserves (943) (885) Loans receivable, net $ 73,543 $ 83,135 |
OTHER INTANGIBLE ASSETS AND L_2
OTHER INTANGIBLE ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Liabilities and Related Accumulated Amortization and Accretion | A schedule of our intangible assets and liabilities and related accumulated amortization and accretion as of December 31, 2021 and 2020, is as follows: As of December 31, 2021 2020 (in thousands) Intangible assets: Acquired in-place leases, net of accumulated amortization of $9,030 and $9,228, respectively, with an average useful life of 9 and 8 years, respectively $ 2,266 $ 3,316 Acquired above-market leases, net of accumulated amortization of $27 and $15, respectively, both with an average useful life of 6 years 28 40 Trade name and license 2,957 2,957 Total intangible lease assets, net $ 5,251 $ 6,313 Intangible lease liabilities: Acquired below-market leases, net of accumulated amortization of $1,134 and $1,786, respectively, with an average useful life of 5 and 4 years, respectively $ 237 $ 587 |
Schedule of Amortization of Acquired Leases | During the years ended December 31, 2021 and 2020, the Company recognized amortization related to its intangible assets and liabilities as follows: Year Ended December 31, 2021 2020 (in thousands) Acquired above-market lease amortization $ 12 $ 10 Acquired in-place lease amortization $ 1,050 $ 1,364 Acquired below-market lease amortization $ 350 $ 700 |
Schedule of Future Amortization and Accretion of Acquisition Related Intangible Assets and Liabilities | A schedule of future amortization and accretion of acquired intangible assets and liabilities as of December 31, 2021, is as follows: Assets Liabilities Acquired Acquired Acquired Above-Market In-Place Below-Market Years Ending December 31, Leases Leases Leases (in thousands) 2022 $ 12 $ 813 $ (236) 2023 10 470 (1) 2024 5 374 — 2025 1 171 — 2026 — 123 — Thereafter — 315 — $ 28 $ 2,266 $ (237) |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Activity | The following table summarizes the debt balances as of December 31, 2021 and 2020, and the debt activity for the year ended December 31, 2021 (in thousands): During the Year Ended December 31, 2021 Balances as of December 31, 2020 Debt Issuances & Assumptions Repayments Accretion & (Amortization) Balances as of December 31, 2021 Mortgage Payable: Outstanding Balance $ 97,100 $ — $ — $ — $ 97,100 Deferred debt issuance costs — Mortgage Payable (147) — — 27 (120) Total Mortgage Payable 96,953 — — 27 96,980 Secured Borrowings – Government Guaranteed Loans: Outstanding Balance 8,457 — (1,786) — 6,671 Unamortized premiums 457 — — (152) 305 Total Secured Borrowings—Government Guaranteed Loans 8,914 — (1,786) (152) 6,976 Other Debt: 2018 revolving credit facility 166,500 25,000 (131,500) — 60,000 2020 unsecured revolving credit facility — — — — — Junior subordinated notes 27,070 — — — 27,070 SBA 7(a) loan-backed notes 14,230 — (6,560) — 7,670 Borrowed funds from the Federal Reserve through the Paycheck Protection Program Liquidity Facility 14,484 10,396 (19,850) — 5,030 Deferred debt issuance costs — other (2,155) — — 1,166 (989) Discount on junior subordinated notes (1,683) — — 91 (1,592) Total Other Debt 218,446 35,396 (157,910) 1,257 97,189 Total Debt, Net $ 324,313 $ 35,396 $ (159,696) $ 1,132 $ 201,145 |
Schedule of Future Principal Payments on Debt | Future principal payments on the Company’s debt (face value) as of December 31, 2021 are as follows: Years Ending December 31, Mortgage Payable Secured Borrowings Principal (1) 2018 Revolving Credit Facility Other (1) (2) Total (in thousands) 2022 $ — $ 380 $ 60,000 $ 2,446 $ 62,826 2023 — 391 — 1,598 1,989 2024 — 402 — 1,613 2,015 2025 — 414 — 1,704 2,118 2026 97,100 426 — 452 97,978 Thereafter — 4,658 — 31,957 36,615 $ 97,100 $ 6,671 $ 60,000 $ 39,770 $ 203,541 (1) Principal payments on secured borrowings and SBA 7(a) loan-backed notes, which are included in Other, are generally dependent upon cash flows received from the underlying loans. The Company’s estimate of their repayment is based on scheduled payments on the underlying loans. The Company’s estimate will differ from actual amounts to the extent the Company experiences prepayments and or loan liquidations or charge-offs. No payment is due unless payments are received from the borrowers on the underlying loans. (2) Represents the junior subordinated notes, SBA 7(a) loan-backed notes, and borrowed funds from the Federal Reserve through the PPPLF. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Shares and the Changes During the Year | A summary of the Company’s restricted shares as of December 31, 2021 and 2020 and the changes during the years ended is as follows: Weighted Number Average Grant of Date Fair Value Shares (1) Per Share (1) Balance, December 31, 2019 3,880 $ 56.66 Granted 21,912 $ 10.04 Vested (3,880) $ 56.66 Balance, December 31, 2020 21,912 $ 10.04 Granted 20,332 $ 10.82 Vested (21,912) $ 10.04 Balance, December 31, 2021 20,332 $ 10.82 (1) Amounts have been adjusted to give retroactive effect to the Reverse Stock Split. |
EARNINGS PER SHARE (''EPS'') (T
EARNINGS PER SHARE (''EPS'') (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Numerator and Denominator Used in Computing Basic and Diluted Per Share Computations | The following table reconciles the numerator and denominator used in computing the Company’s basic and diluted per-share amounts for net (loss) income attributable to common stockholders for the years ended December 31, 2021 and 2020: Year Ended December 31, 2021 2020 (in thousands, except per share amounts) Numerator: Net (loss) income attributable to common stockholders $ (19,979) $ (33,467) Redeemable preferred stock dividends declared on dilutive shares — (1) Diluted net (loss) income attributable to common stockholders $ (19,979) $ (33,468) Denominator: Basic weighted average shares of Common Stock outstanding 19,187 14,748 Effect of dilutive securities—contingently issuable shares — — Diluted weighted average shares and common stock equivalents outstanding 19,187 14,748 Net (loss) income attributable to common stockholders per share: Basic $ (1.04) $ (2.27) Diluted $ (1.04) $ (2.27) |
REDEEMABLE PREFERRED STOCK (Tab
REDEEMABLE PREFERRED STOCK (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Issuances, Reclassifications and Redemptions for each class of Preferred Stock in Permanent Equity | The table below provides information regarding the issuances, reclassifications and redemptions of each class of the Company’s preferred stock in permanent equity during the years ended December 31, 2021 and 2020 (dollar amounts in thousands): Preferred Stock Series A Series D Series L Total Shares Amount Shares Amount Shares Amount Shares Amount Balances, December 31, 2019 2,837,094 $ 70,633 — $ — 5,387,160 $ 152,834 8,224,254 $ 223,467 Issuance of Series D Preferred Stock — — 19,145 473 — — 19,145 473 Reclassification of Series A Preferred Stock to permanent equity 1,570,421 38,837 — — — — 1,570,421 38,837 Redemption of Series A Preferred Stock (29,753) (741) — — — — (29,753) (741) Balances, December 31, 2020 4,377,762 $ 108,729 19,145 $ 473 5,387,160 $ 152,834 9,784,067 $ 262,036 Issuance of Series D Preferred Stock — — 37,712 923 — — 37,712 923 Reclassification of Series A Preferred Stock to permanent equity 2,006,456 50,508 — — — — 2,006,456 50,508 Redemption of Series A Preferred Stock (112,881) (2,806) — — — — (112,881) (2,806) Balances, December 31, 2021 6,271,337 $ 156,431 56,857 $ 1,396 5,387,160 $ 152,834 11,715,354 $ 310,661 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Cash Dividends Paid | Cash dividends per share of Common Stock paid in respect of the years ended December 31, 2021 and 2020 consist of the following: Declaration Date Payment Date Type Cash Dividend Per September 7, 2021 September 29, 2021 Regular Quarterly $ 0.075 June 7, 2021 June 30, 2021 Regular Quarterly $ 0.075 March 5, 2021 March 30, 2021 Regular Quarterly $ 0.075 December 2, 2020 December 29, 2020 Regular Quarterly $ 0.075 September 2, 2020 September 29, 2020 Regular Quarterly $ 0.075 June 3, 2020 June 29, 2020 Regular Quarterly $ 0.075 March 2, 2020 March 25, 2020 Regular Quarterly $ 0.075 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement Inputs | The following summarizes the ranges of discount rates and prepayment rates used to arrive at the estimated fair values of the Company’s loans receivable: Year Ended December 31, 2021 2020 Discount Rate Prepayment Rate Discount Rate Prepayment Rate SBA 7(a) loans receivable, subject to credit risk 6.25% - 8.25% 5.00% - 17.50% 6.50% - 8.25% 4.00% - 17.50% SBA 7(a) loans receivable, subject to loan-backed notes 5.75% - 7.75% 5.00% - 17.50% 5.50% - 8.00% 4.88% - 17.50% SBA 7(a) loans receivable, subject to secured borrowings 7.00% - 7.75% 5.00% - 17.50% 7.00% - 7.75% 5.00% - 17.50% SBA 7(a) loans receivable, paycheck protection program 1.00% N/A 1.00% N/A |
Schedule of Fair Values of Financial Instrument Not Recorded at Fair Value on a Recurring Basis | The estimated fair values of those financial instruments which are not recorded at fair value on a recurring basis on the Company’s consolidated balance sheets are as follows: December 31, 2021 December 31, 2020 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Level (in thousands) Assets: SBA 7(a) loans receivable, paycheck protection program $ 4,903 $ 5,050 $ 14,089 $ 14,484 3 SBA 7(a) loans receivable, subject to loan-backed notes $ 18,077 $ 19,635 $ 23,606 $ 24,850 3 SBA 7(a) loans receivable, subject to credit risk $ 42,416 $ 44,399 $ 32,509 $ 32,397 3 SBA 7(a) loans receivable, subject to secured borrowings $ 6,891 $ 6,976 $ 8,822 $ 8,914 3 SBA 7(a) loans receivable, held for sale $ 1,256 $ 1,355 $ 4,109 $ 4,527 3 Liabilities: Mortgage payable (1) $ 97,100 $ 100,838 $ 97,100 $ 100,799 2, 3 Junior subordinated notes (1) $ 27,070 $ 24,378 $ 27,070 $ 24,236 3 (1) The carrying amounts for the mortgage payable and junior subordinated notes represents the principal outstanding amounts, excluding deferred debt issuance costs and discounts. |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Asset Management Fees Calculation | The fee is calculated as a percentage of the daily average adjusted fair value of CIM Urban’s assets: Daily Average Adjusted Fair Quarterly Fee From Greater of To and Including Percentage (in thousands) $ — $ 500,000 0.2500% $ 500,000 $ 1,000,000 0.2375% $ 1,000,000 $ 1,500,000 0.2250% $ 1,500,000 $ 4,000,000 0.2125% $ 4,000,000 $ 20,000,000 0.1000% |
Schedule of Related Party Transactions | The Company recorded fees and expense reimbursements as shown in the table below for services provided by related parties related to the services described above during the periods indicated: Year Ended December 31, 2021 2020 (in thousands) Asset Management Fees: Asset management fees (1) $ 9,030 $ 9,511 Property Management Fees and Reimbursements: Property management fees $ 1,641 $ 1,670 Onsite management and other cost reimbursement $ 2,687 $ 3,356 Leasing commissions $ 162 $ 112 Construction management fees $ 226 $ 344 Administrative Fees and Expenses: Base service fee (2) $ — $ 282 Expense reimbursements to related parties - corporate $ 2,050 $ 2,243 Lending Segment Expenses: Expense reimbursements to related parties - lending segment (3) $ 1,921 $ 3,491 Offering-Related Fees: Upfront dealer manager and trailing dealer manager fees (4) $ 690 $ 1,149 Non-issuance specific offering costs (5) $ 106 $ 99 (1) The Company issued to the Operator an aggregate of 270,209 shares of its Series A Preferred Stock , in lieu of cash payment of the asset management fees incurred during the year ended December 31, 2021. The Company issued to the Operator 203,349 shares of its Common Stock and 287,199 s hares of Series A Preferred Stock in lieu of cash payment of the asset management fees incurred during the year ended December 31, 2020. (2) For the year ended December 31, 2020, the Company issued to the Administrator 11,273 shares of our Series A Preferred Stock, in lieu of cash as payment of the Base Service Fee for the first quarter of 2020. (3) Expense reimbursements to related parties - lending segment do not include personnel costs capitalized to deferred loan origination costs of $347,000 and $136,000 for the years ended December 31, 2021 and 2020, respectively. (4) Represents fees earned by CCO Capital and allocated to Series A Preferred Stock and Series D Preferred Stock. (5) As of December 31, 2021 and 2020, $2.0 million and $1.5 million, respectively, was included in deferred costs as reimbursable expenses incurred pursuant to the Master Services Agreement and the then applicable dealer manager agreement with CCO Capital. These non-issuance specific costs are allocated against the gross proceeds from the sale of the Series A Preferred Stock and the Series D Preferred Stock on a pro rata basis for each issuance as a percentage of the total offering. As of December 31, 2021 and 2020, due to related parties consisted of the following: December 31, 2021 2020 (in thousands) Asset management fees $ 2,244 $ 2,386 Property management fees and reimbursements 320 1,662 Expense reimbursements - corporate 692 647 Expense reimbursements - lending segment 341 690 Upfront dealer manager and trailing dealer manager fees 638 493 Non-issuance specific offering costs 143 668 Other amounts due to the CIM Management Entities and certain of its affiliates 163 160 Total due to related parties $ 4,541 $ 6,706 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Revenue Under Long-Term Operating Leases | Future minimum rental revenue under long-term operating leases as of December 31, 2021, excluding tenant reimbursements of certain costs, are as follows (in thousands): Years Ending December 31, Total 2022 $ 44,521 2023 42,101 2024 40,059 2025 24,022 2026 17,246 Thereafter 32,937 $ 200,886 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Net Income to REIT Taxable Income | A reconciliation of the provision for income tax attributable to the TRSs’ income from continuing operations computed at federal statutory rates to the income tax provision reported in the financial statements is as follows: Year Ended December 31, 2021 2020 (in thousands) (Loss) income from continuing operations before income taxes for TRSs $ 9,242 $ (7,995) Expected federal income tax (benefit) provision $ 1,941 $ (1,679) State income taxes (40) (1,562) Change in valuation allowance (273) 2,605 Other 1,364 (86) Income tax (benefit) provision $ 2,992 $ (722) |
Schedule of Components of Net Deferred Tax Asset | The components of the Company’s net deferred tax asset, which are included in other assets, are as follows: December 31, 2021 2020 (in thousands) Deferred tax assets: Net operating losses $ 2,367 $ 2,645 Secured borrowings—government guaranteed loans 64 96 Other 153 160 Total gross deferred tax assets 2,584 2,901 Valuation allowance (2,370) (2,643) 214 258 Deferred tax liabilities: Loans receivable (96) (67) (96) (67) Deferred tax asset, net $ 118 $ 191 |
SEGMENT DISCLOSURE (Tables)
SEGMENT DISCLOSURE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Net Operating Income (Loss) | The net operating income (loss) of the Company’s segments for the years ended December 31, 2021 and 2020 is as follows: Year Ended December 31, 2021 2020 (in thousands) Office: Revenues $ 53,289 $ 55,468 Property expenses: Operating 23,431 23,485 General and administrative 347 490 Total property expenses 23,778 23,975 Segment net operating income—office 29,511 31,493 Hotel: Revenues 17,849 13,314 Property expenses: Operating 15,841 14,059 General and administrative 128 64 Total property expenses 15,969 14,123 Segment net operating income (loss)—hotel 1,880 (809) Lending: Revenues 19,787 8,322 Lending expenses: Interest expense 408 868 Expense reimbursements to related parties—lending segment 1,921 3,491 General and administrative 1,788 2,006 Total lending expenses 4,117 6,365 Segment net operating income—lending 15,670 1,957 Total segment net operating income $ 47,061 $ 32,641 |
Schedule of Reconciliation of Segment Net Operating Income to Net Income Attributable to the Company | A reconciliation of the Company’s segment net operating income to net income attributable to the Company for the years ended December 31, 2021 and 2020 is as follows: Year Ended December 31, 2021 2020 (in thousands) Total segment net operating income $ 47,061 $ 32,641 Interest and other income 1 104 Asset management and other fees to related parties (9,030) (9,793) Expense reimbursements to related parties—corporate (2,050) (2,243) Interest expense (9,005) (10,547) General and administrative (4,581) (4,212) Transaction costs (143) — Depreciation and amortization (20,112) (21,406) Loss on early extinguishment of debt — (281) Impairment of real estate — — Gain on sale of real estate — — Income before provision for income taxes 2,141 (15,737) (Provision) benefit for income taxes (2,992) 722 Net (loss) income (851) (15,015) Net loss (income) attributable to noncontrolling interests 1 (1) Net (loss) income attributable to the Company $ (850) $ (15,016) |
Schedule of Segment Condensed Assets | The condensed assets for each of the segments as of December 31, 2021 and 2020, along with capital expenditures and loan originations for the years ended December 31, 2021 and 2020 are as follows: December 31, 2021 2020 (in thousands) Condensed assets: Office $ 449,843 $ 472,544 Hotel 101,308 100,285 Lending 96,729 94,626 Non-segment assets 12,986 18,162 Total assets $ 660,866 $ 685,617 |
Schedule of Segment Capital Expenditures and Loan Originations | Year Ended December 31, 2021 2020 (in thousands) Capital expenditures (1) and loan originations: Office $ 5,714 $ 8,514 Hotel 193 821 Total capital expenditures 5,907 9,335 Loan originations 133,290 53,524 Total capital expenditures and loan originations $ 139,197 $ 62,859 (1) Represents additions and improvements to real estate investments, excluding acquisitions. Includes the activity for dispositions through their respective disposition dates. |
ORGANIZATION AND OPERATIONS (De
ORGANIZATION AND OPERATIONS (Details) $ / shares in Units, $ in Millions | Sep. 03, 2019$ / shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020$ / sharesshares | Jun. 29, 2020$ / shares | Jun. 28, 2020$ / shares | Feb. 29, 2020$ / shares | Jan. 31, 2020$ / sharesshares | Nov. 21, 2017$ / shares |
Class of Stock [Line Items] | ||||||||
Common stock, par value (in usd per share) | $ 0.003 | $ 0.001 | $ 0.001 | |||||
Common stock, shares authorized (in shares) | shares | 900,000,000 | 900,000,000 | ||||||
Preferred stock, shares authorized (in shares) | shares | 100,000,000 | |||||||
Reverse stock split ratio, common stock | 0.3333 | |||||||
Registration Statement | ||||||||
Class of Stock [Line Items] | ||||||||
Number of warrants included in preferred stock unit (in shares) | shares | 1 | |||||||
Warrant right to purchase a share of common stock (in shares) | shares | 0.25 | 0.25 | ||||||
Rights Offering | ||||||||
Class of Stock [Line Items] | ||||||||
Purchase price (in usd per share) | $ 9.25 | |||||||
Sale of stock, number of shares issued (in shares) | shares | 8,521,589 | |||||||
Consideration received on transaction | $ | $ 78.8 | |||||||
Reduction to additional paid-in capital, due to offering costs incurred | $ | $ 1.9 | |||||||
Series L Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 | ||||||
Preferred stock, liquidation preference per share (in usd per share) | 28.37 | 28.37 | ||||||
Series L Preferred Stock | Registration Statement | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, liquidation preference per share (in usd per share) | $ 28.37 | |||||||
Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, par value (in usd per share) | 0.001 | 0.001 | ||||||
Preferred stock, liquidation preference per share (in usd per share) | 25 | 25 | ||||||
Series A Preferred Stock | Registration Statement | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares included in preferred stock unit (in shares) | shares | 1 | |||||||
Preferred stock, par value (in usd per share) | 0.001 | $ 0.001 | ||||||
Preferred stock, stated value (in usd per share) | 25 | $ 25 | ||||||
Series A Preferred Stock | Continuous Public Offering | ||||||||
Class of Stock [Line Items] | ||||||||
Purchase price (in usd per share) | $ 25 | |||||||
Series D Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, par value (in usd per share) | 0.001 | 0.001 | 0.001 | |||||
Preferred stock, liquidation preference per share (in usd per share) | $ 25 | $ 25 | 25 | |||||
Series D Preferred Stock | Continuous Public Offering | ||||||||
Class of Stock [Line Items] | ||||||||
Purchase price (in usd per share) | $ 24.50 | $ 25 | $ 25 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investments in Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments in Real Estate | ||
Impairment of real estate | $ 0 | $ 0 |
Buildings and improvements | Minimum | ||
Investments in Real Estate | ||
Estimated useful lives | 15 years | |
Buildings and improvements | Maximum | ||
Investments in Real Estate | ||
Estimated useful lives | 40 years | |
Furniture, fixtures, and equipment | Minimum | ||
Investments in Real Estate | ||
Estimated useful lives | 3 years | |
Furniture, fixtures, and equipment | Maximum | ||
Investments in Real Estate | ||
Estimated useful lives | 5 years |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 11, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unamortized retained loan discounts | $ 9,600 | $ 7,800 | |
Loan receivable, nonaccrual, past due period (more than) | 60 days | ||
Impairment (recovery) on loans receivable | $ 19 | (16) | |
Loan loss reserves | 943 | 885 | |
PMC Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Acquisition discounts | $ 381 | $ 492 | $ 33,900 |
BASIS OF PRESENTATION AND SUM_6
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred Rent Receivable and Charges (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Deferred rent receivable | $ 20,870 | $ 20,470 |
Deferred leasing costs, net of accumulated amortization of $8,971 and $7,742, respectively | 8,453 | 8,950 |
Deferred leasing costs, accumulated amortization | 8,971 | 7,742 |
Deferred offering costs | 6,281 | 6,046 |
Other deferred costs | 491 | 490 |
Deferred rent receivable and charges, net | $ 36,095 | $ 35,956 |
BASIS OF PRESENTATION AND SUM_7
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Lease incentives | $ 4,000,000 | $ 4,000,000 |
Lease incentives, accumulated amortization | 2,700,000 | 2,400,000 |
Allowance for uncollectible accounts receivable | 579,000 | 1,900,000 |
Tenant recoveries outside of lease agreements | 0 | $ 0 |
Performance obligations | $ 0 |
BASIS OF PRESENTATION AND SUM_8
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recognized Rental Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Fixed lease payments | $ 45,773 | $ 50,245 |
Variable lease payments | 7,065 | 4,578 |
Rental and other property income | $ 52,838 | $ 54,823 |
BASIS OF PRESENTATION AND SUM_9
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Hotel Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Hotel income | $ 16,722 | $ 11,882 |
Rental and other property income | 52,838 | 54,823 |
Interest and other income | 21,366 | 10,503 |
Total Revenues | 90,926 | 77,208 |
Hotel | ||
Disaggregation of Revenue [Line Items] | ||
Hotel income | 16,722 | 11,882 |
Rental and other property income | 1,070 | 1,353 |
Interest and other income | 57 | 79 |
Total Revenues | $ 17,849 | $ 13,314 |
BASIS OF PRESENTATION AND SU_10
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment (Details) - property | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Number of types of commercial real estate properties | 2 | 2 |
INVESTMENTS IN REAL ESTATE - Ne
INVESTMENTS IN REAL ESTATE - Net Investments in Real Estate (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Business Combination and Asset Acquisition [Abstract] | ||
Land | $ 141,236 | $ 139,397 |
Land improvements | 2,644 | 2,611 |
Buildings and improvements | 454,431 | 450,741 |
Furniture, fixtures, and equipment | 4,398 | 4,969 |
Tenant improvements | 29,733 | 31,414 |
Work in progress | 10,260 | 8,073 |
Investments in real estate | 642,702 | 637,205 |
Accumulated depreciation | (144,718) | (131,165) |
Net investments in real estate | $ 497,984 | $ 506,040 |
INVESTMENTS IN REAL ESTATE - Na
INVESTMENTS IN REAL ESTATE - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)property | Dec. 31, 2020USD ($)property | |
Business Acquisition [Line Items] | ||
Depreciation expense | $ | $ 16.9 | $ 17.7 |
Number of property dispositions | property | 0 | 0 |
Kaiser Foundation Health Plan, Inc. | Revenues | Customer Concentration Risk | ||
Business Acquisition [Line Items] | ||
Concentration risk | 30.90% | |
1037 North Sycamore, Los Angeles, CA | ||
Business Acquisition [Line Items] | ||
Percentage of ownership acquired | 100.00% | |
1021 East 7th Street, Austin, TX | ||
Business Acquisition [Line Items] | ||
Percentage of ownership acquired | 100.00% |
INVESTMENTS IN REAL ESTATE - Ac
INVESTMENTS IN REAL ESTATE - Acquisitions (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)ft² | Dec. 31, 2020USD ($)ft² | |
1037 North Sycamore, Los Angeles, CA | ||
Business Acquisition [Line Items] | ||
Square Feet | ft² | 4,900 | |
Purchase price | $ 2,900 | |
Transaction costs, capitalized | $ 33 | |
1021 East 7th Street, Austin, TX | ||
Business Acquisition [Line Items] | ||
Square Feet | ft² | 11,180 | |
Purchase price | $ 6,079 | |
Transaction costs, capitalized | $ 51 |
INVESTMENTS IN REAL ESTATE - Fa
INVESTMENTS IN REAL ESTATE - Fair Value of Net Assets Acquired (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Acquired below-market leases | $ 0 | $ (5) |
Net assets acquired | 2,933 | 6,130 |
Land | ||
Business Acquisition [Line Items] | ||
Property, plant and equipment | 1,839 | 4,976 |
Land improvements | ||
Business Acquisition [Line Items] | ||
Property, plant and equipment | 33 | 9 |
Buildings and improvements | ||
Business Acquisition [Line Items] | ||
Property, plant and equipment | 1,061 | 534 |
Tenant improvements | ||
Business Acquisition [Line Items] | ||
Property, plant and equipment | 0 | 190 |
Acquired in-place Leases | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 0 | $ 408 |
Weighted average amortization period | 9 years | 8 years |
Acquired above-market leases | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 0 | $ 18 |
Series of Individually Immaterial Business Acquisitions | ||
Business Acquisition [Line Items] | ||
Acquired below market lease, weighted average amortization period | 3 years | |
Series of Individually Immaterial Business Acquisitions | Acquired in-place Leases | ||
Business Acquisition [Line Items] | ||
Weighted average amortization period | 3 years | |
Series of Individually Immaterial Business Acquisitions | Acquired above-market leases | ||
Business Acquisition [Line Items] | ||
Weighted average amortization period | 3 years |
LOANS RECEIVABLE- Loans Receiva
LOANS RECEIVABLE- Loans Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 73,260 | $ 83,136 |
Deferred capitalized costs, net | 1,226 | 884 |
Loan loss reserves | (943) | (885) |
Loans receivable, net | 73,543 | 83,135 |
SBA 7(a) loans receivable, subject to credit risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 42,103 | 32,226 |
SBA 7(a) loans receivable, subject to loan-backed notes | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 18,050 | 23,631 |
SBA 7(a) loans receivable, Paycheck Protection Program | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 5,050 | 14,484 |
SBA 7(a) loans receivable, subject to secured borrowings | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 6,857 | 8,786 |
SBA 7(a) loans receivable, held for sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 1,200 | $ 4,009 |
LOANS RECEIVABLE - Narrative (D
LOANS RECEIVABLE - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, net | $ 73,543 | $ 83,135 |
Accounts Receivable | Customer Concentration Risk | Hospitality Industry | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk | 99.80% | 99.10% |
SBA 7(a) loans receivable, subject to credit risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, percent current | 100.00% | 98.80% |
SBA 7(a) loans receivable, subject to credit risk | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, net | $ 1,100 | $ 1,400 |
OTHER INTANGIBLE ASSETS AND L_3
OTHER INTANGIBLE ASSETS AND LIABILITIES - Intangible Assets and Liabilities and Related Accumulated Amortization and Accretion (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible assets: | ||
Intangible lease assets, net | $ 5,251 | $ 6,313 |
Intangible lease liabilities: | ||
Acquired below-market leases, net of accumulated amortization of $1,134 and $1,786, respectively, with an average useful life of 5 and 4 years, respectively | 237 | 587 |
Acquired Below Market Leases | ||
Intangible lease liabilities: | ||
Acquired below-market leases, net of accumulated amortization of $1,134 and $1,786, respectively, with an average useful life of 5 and 4 years, respectively | 237 | 587 |
Acquired below-market leases, accumulated amortization | $ 1,134 | $ 1,786 |
Acquired finite lived intangible lease liabilities average useful life | 5 years | 4 years |
Acquired in-place Leases | ||
Intangible assets: | ||
Intangible lease assets, net | $ 2,266 | $ 3,316 |
Intangible lease assets, accumulated amortization | $ 9,030 | $ 9,228 |
Acquired finite lived intangible lease assets average useful life | 9 years | 8 years |
Above Market Leases | ||
Intangible assets: | ||
Intangible lease assets, net | $ 28 | $ 40 |
Intangible lease assets, accumulated amortization | $ 27 | $ 15 |
Acquired finite lived intangible lease assets average useful life | 6 years | 6 years |
Trade name and license | ||
Intangible assets: | ||
Intangible lease assets, net | $ 2,957 | $ 2,957 |
OTHER INTANGIBLE ASSETS AND L_4
OTHER INTANGIBLE ASSETS AND LIABILITIES - Amortization of Acquired Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired below-market lease amortization | $ 350 | $ 700 |
Above Market Leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired leases amortization | 12 | 10 |
Acquired in-place Leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired leases amortization | $ 1,050 | $ 1,364 |
OTHER INTANGIBLE ASSETS AND L_5
OTHER INTANGIBLE ASSETS AND LIABILITIES - Future Amortization and Accretion of Acquisition Related Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Future amortization of acquisition related intangible assets | ||
Intangible lease assets, net | $ 5,251 | $ 6,313 |
Future accretion of acquisition related intangible liabilities | ||
Intangible lease liabilities, net | (237) | (587) |
Acquired Below Market Leases | ||
Future accretion of acquisition related intangible liabilities | ||
2022 | (236) | |
2023 | (1) | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Intangible lease liabilities, net | (237) | (587) |
Above Market Leases | ||
Future amortization of acquisition related intangible assets | ||
2022 | 12 | |
2023 | 10 | |
2024 | 5 | |
2025 | 1 | |
2026 | 0 | |
Thereafter | 0 | |
Intangible lease assets, net | 28 | 40 |
Acquired in-place Leases | ||
Future amortization of acquisition related intangible assets | ||
2022 | 813 | |
2023 | 470 | |
2024 | 374 | |
2025 | 171 | |
2026 | 123 | |
Thereafter | 315 | |
Intangible lease assets, net | $ 2,266 | $ 3,316 |
DEBT - Debt Activity (Details)
DEBT - Debt Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt [Roll Forward] | ||
Debt Issuances & Assumptions | $ 35,396 | |
Repayments | (159,696) | |
Accretion & (Amortization) | 1,068 | $ 1,192 |
Amortization of debt discount (premium) | (61) | (84) |
Accretion & (Amortization) | 1,132 | |
Total Debt, Net | 201,145 | 324,313 |
Mortgage Payable | ||
Debt [Roll Forward] | ||
Outstanding, beginning balance | 97,100 | |
Deferred loan costs, beginning balance | (147) | |
Accretion & (Amortization) | 27 | |
Deferred loan costs, ending balance | (120) | (147) |
Outstanding, ending balance | 97,100 | 97,100 |
Total Debt, Net | 96,980 | 96,953 |
Secured Borrowings - Government Guaranteed Loans | ||
Debt [Roll Forward] | ||
Outstanding, beginning balance | 8,457 | |
Premiums (discounts), beginning balance | 457 | |
Repayments | (1,786) | |
Amortization of debt discount (premium) | (152) | |
Premiums (discounts), ending balance | 305 | 457 |
Outstanding, ending balance | 6,671 | 8,457 |
Total Debt, Net | 6,976 | 8,914 |
Other Debt | ||
Debt [Roll Forward] | ||
Debt Issuances & Assumptions | 35,396 | |
Repayments | (157,910) | |
Accretion & (Amortization) | 1,257 | |
Total Debt, Net | 97,189 | 218,446 |
Junior subordinated notes | ||
Debt [Roll Forward] | ||
Outstanding, beginning balance | 27,070 | |
Premiums (discounts), beginning balance | (1,683) | |
Amortization of debt discount (premium) | 91 | |
Premiums (discounts), ending balance | (1,592) | (1,683) |
Outstanding, ending balance | 27,070 | 27,070 |
SBA 7(a) loan-backed notes | ||
Debt [Roll Forward] | ||
Outstanding, beginning balance | 14,230 | |
Repayments | (6,560) | |
Outstanding, ending balance | 7,670 | 14,230 |
Deferred debt issuance costs — other | ||
Debt [Roll Forward] | ||
Deferred loan costs, beginning balance | (2,155) | |
Debt Issuances & Assumptions | 0 | |
Repayments | 0 | |
Accretion & (Amortization) | 1,166 | |
Deferred loan costs, ending balance | (989) | (2,155) |
Revolving Credit Facility | Line of Credit | ||
Debt [Roll Forward] | ||
Outstanding, beginning balance | 166,500 | |
Debt Issuances & Assumptions | 25,000 | |
Repayments | (131,500) | |
Outstanding, ending balance | 60,000 | $ 166,500 |
Revolving Credit Facility | Line of Credit | Paycheck Protection Program Liquidity Facility, CARES Act | ||
Debt [Roll Forward] | ||
Debt Issuances & Assumptions | 10,396 | |
Repayments | (19,850) | |
Outstanding, ending balance | $ 5,030 |
DEBT - Mortgages Payable and Se
DEBT - Mortgages Payable and Secured Borrowings Government Guaranteed Loans Narrative (Details) $ in Millions | Dec. 31, 2021USD ($) |
Mortgage Payable | |
Debt Instrument [Line Items] | |
Fixed interest rate | 4.14% |
Secured borrowing principal on SBA 7(a) loans sold for a premium and excess spread | |
Debt Instrument [Line Items] | |
Excess spread | $ 4 |
Weighted average rate | 3.89% |
Secured borrowing principal on SBA 7(a) loans sold for excess spread | |
Debt Instrument [Line Items] | |
Excess spread | $ 2.6 |
Weighted average rate | 1.56% |
DEBT - 2018 and 2020 Revolving
DEBT - 2018 and 2020 Revolving Credit Facility Narrative (Details) | 1 Months Ended | ||||
Sep. 30, 2020 | May 31, 2020USD ($) | Oct. 31, 2018USD ($)property | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 2.15% | 2.20% | |||
Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Unused commitment fee | 0.15% | ||||
Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Unused commitment fee | 0.25% | ||||
Revolving Credit Facility | Base rate | Debt Instrument, During, Deferral Period | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 1.05% | ||||
Revolving Credit Facility | Base rate | Debt Instrument, Following, Deferral Period | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 0.55% | ||||
Revolving Credit Facility | LIBOR | Debt Instrument, During, Deferral Period | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 2.05% | ||||
Revolving Credit Facility | LIBOR | Debt Instrument, Following, Deferral Period | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 1.55% | ||||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 209,500,000 | ||||
Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Number of extension options | property | 1 | ||||
Extension option, term | 1 year | ||||
Extension fee percentage | 0.15% | ||||
Outstanding balance | $ 60,000,000 | $ 166,500,000 | |||
Amount available for future borrowings | 117,600,000 | $ 28,000,000 | |||
Line of Credit | Revolving Credit Facility | Unsecured Revolving Credit Facility Due May 2022 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 10,000,000 | ||||
Amount available for future borrowings | 10,000,000 | ||||
Fixed interest rate | 1.00% | ||||
Fee percentage for each advance made | 1.12% | ||||
Maximum fee amount payable | $ 112,000 | ||||
Debt outstanding | $ 0 |
DEBT - Junior Subordinated Note
DEBT - Junior Subordinated Notes and SBA 7(a) Loan-Backed Notes Narrative (Details) - USD ($) $ in Thousands | May 30, 2018 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Restricted cash | $ 11,340 | $ 10,013 | |
Junior subordinated notes | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 3.25% | ||
SBA 7(a) loan-backed notes | |||
Debt Instrument [Line Items] | |||
Proceeds from SBA 7(a) loan-backed notes | $ 38,200 | ||
Weighted average life of notes | 2 years | ||
Effective interest rate | 1.49% | 1.55% | |
Restricted cash | $ 1,900 | $ 1,200 | |
SBA 7(a) loan-backed notes | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.40% | ||
SBA 7(a) loan-backed notes | Prime Rate | |||
Debt Instrument [Line Items] | |||
Interest rate margin | (1.08%) |
DEBT - Paycheck Protection Prog
DEBT - Paycheck Protection Program Liquidity Facility Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||
Accrued interest and unused commitment fee payable | $ 467 | $ 564 | |
Revolving Credit Facility | Paycheck Protection Program Liquidity Facility, CARES Act | Line of Credit | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 0.35% | ||
Debt outstanding | $ 5,000 | $ 14,484 |
DEBT - Future Principal Payment
DEBT - Future Principal Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
2022 | $ 62,826 |
2023 | 1,989 |
2024 | 2,015 |
2025 | 2,118 |
2026 | 97,978 |
Thereafter | 36,615 |
Total Debt | 203,541 |
Mortgage Payable | |
Debt Instrument [Line Items] | |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 97,100 |
Thereafter | 0 |
Total Debt | 97,100 |
Secured Borrowings Principal | |
Debt Instrument [Line Items] | |
2022 | 380 |
2023 | 391 |
2024 | 402 |
2025 | 414 |
2026 | 426 |
Thereafter | 4,658 |
Total Debt | 6,671 |
Line of Credit | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
2022 | 60,000 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Other | |
Debt Instrument [Line Items] | |
2022 | 2,446 |
2023 | 1,598 |
2024 | 1,613 |
2025 | 1,704 |
2026 | 452 |
Thereafter | 31,957 |
Total Debt | $ 39,770 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Restricted Shares and the Changes During the Year (Details) - Restricted Stock - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares | ||
Balance, January 1 (in shares) | 21,912 | 3,880 |
Granted (in shares) | 20,332 | 21,912 |
Vested (in shares) | (21,912) | (3,880) |
Balance, December 31 (in shares) | 20,332 | 21,912 |
Weighted Average Grant Date Fair Value Per Share | ||
Balance, January 1 (in dollars per share) | $ 10.04 | $ 56.66 |
Granted (in dollars per share) | 10.82 | 10.04 |
Vested (in dollars per share) | 10.04 | 56.66 |
Balance, December 31 (in dollars per share) | $ 10.82 | $ 10.04 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - Restricted Stock - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based compensation plans | ||
Award vesting period | 1 year | |
Stock-based compensation expense | $ 220 | $ 222 |
Unrecognized compensation expense | 73 | |
Fair value of shares vested | $ 220 | $ 220 |
EARNINGS PER SHARE ("EPS") - Re
EARNINGS PER SHARE ("EPS") - Reconciliation of the Numerator and Denominator Used in Computing Basic and Diluted Per Share Computations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | ||
Net (loss) income attributable to common stockholders | $ (19,979) | $ (33,467) |
Redeemable preferred stock dividends declared on dilutive shares | 0 | (1) |
Diluted net (loss) income attributable to common stockholders | $ (19,979) | $ (33,468) |
Denominator: | ||
Basic weighted average shares of common stock outstanding (in shares) | 19,187,000 | 14,748,000 |
Effect of dilutive securities—contingently issuable shares (in shares) | 0 | 0 |
Diluted weighted average shares and common stock equivalents outstanding (in shares) | 19,187,000 | 14,748,000 |
Net (loss) income attributable to common stockholders per share: | ||
Basic (in usd per share) | $ (1.04) | $ (2.27) |
Diluted (in usd per share) | $ (1.04) | $ (2.27) |
Series D Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average number diluted shares (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 56,857 | 19,145 |
REDEEMABLE PREFERRED STOCK - Is
REDEEMABLE PREFERRED STOCK - Issuances, Reclassifications and Redemptions for each class of Preferred Stock in Permanent Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 278,114 | $ 278,195 |
Issuance of Series D Preferred Stock | 76,921 | 2,359 |
Reclassification of Series A Preferred Stock to permanent equity | 45,806 | 35,483 |
Ending balance | $ 373,549 | $ 278,114 |
Preferred Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 9,784,067 | 8,224,254 |
Beginning balance | $ 262,036 | $ 223,467 |
Issuance of Series D Preferred Stock (in shares) | 37,712 | 19,145 |
Issuance of Series D Preferred Stock | $ 923 | $ 473 |
Reclassification of Series A preferred Stock to permanent equity (in shares) | 2,006,456 | 1,570,421 |
Reclassification of Series A Preferred Stock to permanent equity | $ 50,508 | $ 38,837 |
Redemption of Series A Preferred Stock (in shares) | (112,881) | (29,753) |
Redemption of Series A Preferred Stock | $ (2,806) | $ (741) |
Ending balance (in shares) | 11,715,354 | 9,784,067 |
Ending balance | $ 310,661 | $ 262,036 |
Series A Preferred Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification of Series A Preferred Stock to permanent equity | 146,200 | |
Redemption of Series A Preferred Stock | $ (2,700) | $ (749) |
Series A Preferred Stock | Preferred Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 4,377,762 | 2,837,094 |
Beginning balance | $ 108,729 | $ 70,633 |
Reclassification of Series A preferred Stock to permanent equity (in shares) | 2,006,456 | 1,570,421 |
Reclassification of Series A Preferred Stock to permanent equity | $ 50,508 | $ 38,837 |
Redemption of Series A Preferred Stock (in shares) | (112,881) | (29,753) |
Redemption of Series A Preferred Stock | $ (2,806) | $ (741) |
Ending balance (in shares) | 6,271,337 | 4,377,762 |
Ending balance | $ 156,431 | $ 108,729 |
Series D Preferred Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Issuance of Series D Preferred Stock | $ 893 | $ 456 |
Series D Preferred Stock | Preferred Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 19,145 | |
Beginning balance | $ 473 | |
Issuance of Series D Preferred Stock (in shares) | 37,712 | 19,145 |
Issuance of Series D Preferred Stock | $ 923 | $ 473 |
Ending balance (in shares) | 56,857 | 19,145 |
Ending balance | $ 1,396 | $ 473 |
Series L Preferred Stock | Preferred Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 5,387,160 | 5,387,160 |
Beginning balance | $ 152,834 | $ 152,834 |
Ending balance (in shares) | 5,387,160 | 5,387,160 |
Ending balance | $ 152,834 | $ 152,834 |
REDEEMABLE PREFERRED STOCK - Na
REDEEMABLE PREFERRED STOCK - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2020 | |
Class of Stock [Line Items] | |||
Gross proceeds from issuance of preferred stock and warrants | $ 190,300,000 | ||
Net proceeds from issuance of Preferred Stock | 29,829,000 | $ 41,958,000 | |
Issuance offering costs for preferred stock and warrants | 15,900,000 | ||
Non-issuance offering costs for preferred stock and warrants | $ 8,000,000 | ||
Registration Statement | |||
Class of Stock [Line Items] | |||
Number of warrants included in preferred stock unit (in shares) | 1 | ||
Series A Preferred Warrants | |||
Class of Stock [Line Items] | |||
Warrants issued (in shares) | 4,603,287 | ||
Gross proceeds from issuance of preferred stock and warrants | $ 761,000 | ||
Issuance offering costs for preferred stock and warrants | 142,000 | ||
Reclassification to deferred rent receivable and charges | $ 5,000 | ||
Warrants outstanding (in shares) | 4,541,852 | ||
Outstanding common stock available for purchase (in shares) | 1,178,125 | ||
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Gross proceeds from issuance of preferred stock and warrants | $ 188,200,000 | ||
Issuance offering costs for preferred stock and warrants | 15,700,000 | ||
Reclassification to deferred rent receivable and charges | $ 1,700,000 | ||
Preferred stock, shares outstanding (in shares) | 7,903,302 | ||
Preferred stock, shares redeemed (in shares) | 223,295 | ||
Series A Preferred Stock | Preferred Stock, Shares Issued, One | |||
Class of Stock [Line Items] | |||
Preferred stock, shares issued (in shares) | 7,557,916 | ||
Series A Preferred Stock | Preferred Stock, Shares Issued, Two | |||
Class of Stock [Line Items] | |||
Preferred stock, shares issued (in shares) | 568,681 | ||
Net proceeds from issuance of Preferred Stock | $ 0 | ||
Series D Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares issued (in shares) | 56,857 | 19,145 | |
Gross proceeds from issuance of preferred stock and warrants | $ 1,400,000 | ||
Issuance offering costs for preferred stock and warrants | 35,000 | ||
Reclassification to deferred rent receivable and charges | $ 13,000 | ||
Preferred stock, shares outstanding (in shares) | 56,857 | 19,145 | |
Preferred stock, shares redeemed (in shares) | 0 | ||
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares issued (in shares) | 1,633,965 | 2,008,256 | |
Preferred stock, shares outstanding (in shares) | 1,631,965 | 2,007,856 | |
Series A Preferred Stock | Registration Statement | |||
Class of Stock [Line Items] | |||
Number of shares included in preferred stock unit (in shares) | 1 |
REDEEMABLE PREFERRED STOCK - Se
REDEEMABLE PREFERRED STOCK - Series A Preferred Stock Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2020 | |
Class of Stock [Line Items] | |||
Redeemable preferred stock dividend | $ 253 | $ 377 | |
Reclassification of Series A Preferred Stock to permanent equity | $ 45,806 | 35,483 | |
Registration Statement | |||
Class of Stock [Line Items] | |||
Warrant right to purchase a share of common stock (in shares) | 0.25 | 0.25 | |
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Redeemable preferred stock dividend | $ 253 | $ 377 | |
Reclassification of Series A Preferred Stock to permanent equity | $ 146,200 | ||
Series A Preferred Stock | Registration Statement | |||
Class of Stock [Line Items] | |||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 | |
Preferred stock, stated value (in usd per share) | $ 25 | $ 25 |
REDEEMABLE PREFERRED STOCK - _2
REDEEMABLE PREFERRED STOCK - Series D Preferred Stock Narrative (Details) - Series D Preferred Stock - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 29, 2020 | Jun. 28, 2020 | Feb. 29, 2020 |
Class of Stock [Line Items] | |||||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||
Continuous Public Offering | |||||
Class of Stock [Line Items] | |||||
Purchase price (in usd per share) | $ 24.50 | $ 25 | $ 25 |
REDEEMABLE PREFERRED STOCK - _3
REDEEMABLE PREFERRED STOCK - Series L Preferred Stock (Details) - Series L Preferred Stock, $0.001 Par Value - USD ($) $ / shares in Units, $ in Millions | Oct. 22, 2019 | Nov. 21, 2017 | Dec. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||||
Preferred stock, shares issued (in shares) | 8,080,740 | 8,080,740 | 8,080,740 | |
Preferred stock, liquidation preference per share (in usd per share) | $ 28.37 | $ 28.37 | ||
Gross proceeds from sale of preferred stock | $ 229.3 | |||
Offering costs | 15.9 | |||
Discount on shares issued | 2.9 | |||
Offering costs, non-issuance specific | $ 2.5 | |||
Minimum fixed charge coverage ratio | 125.00% | |||
Tender Offer | ||||
Class of Stock [Line Items] | ||||
Authorized shares for repurchase (in shares) | 2,693,580 | |||
Authorized shares for repurchase, percentage of share outstanding | 33.00% | |||
Purchase price (in usd per share) | $ 29.12 | |||
Registration Statement | ||||
Class of Stock [Line Items] | ||||
Preferred stock, liquidation preference per share (in usd per share) | $ 28.37 |
REDEEMABLE PREFERRED STOCK - Di
REDEEMABLE PREFERRED STOCK - Dividends Narrative (Details) - USD ($) | Dec. 29, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | |||
Initial dividend on common stock | $ 7,010,799 | ||
Payments on preferred stock dividends | $ 18,045,000 | $ 16,536,000 | |
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Annual dividend rate | 5.50% | ||
Preferred stock, dividend rate (in usd per share) | $ 0.34375 | ||
Payments on preferred stock dividends | $ 9,600,000 | 8,100,000 | |
Series D Preferred Stock | |||
Class of Stock [Line Items] | |||
Annual dividend rate | 5.65% | ||
Preferred stock, dividend rate (in usd per share) | $ 0.35313 | ||
Payments on preferred stock dividends | $ 50,000 | 12,000 | |
Series L Preferred Stock | |||
Class of Stock [Line Items] | |||
Annual dividend rate | 5.50% | ||
Preferred stock, dividend rate (in usd per share) | $ 1.56035 | ||
Dividend increase per year for failure to timely declare or pay dividends | 1.00% | ||
Dividend increase per year for failure to timely declare or pay dividends, maximum increase | 8.50% | ||
Payments on preferred stock dividends | $ 8,400,000 | $ 8,400,000 |
REDEEMABLE PREFERRED STOCK - Re
REDEEMABLE PREFERRED STOCK - Redemptions Narrative (Details) | 12 Months Ended |
Dec. 31, 2021day | |
Series A Preferred Stock | |
Class of Stock [Line Items] | |
Preferred stock redemption, trading days prior to redemption | 20 |
STOCKHOLDERS' EQUITY - Cash Div
STOCKHOLDERS' EQUITY - Cash Dividends Declared and Paid (Details) - $ / shares | Dec. 09, 2021 | Sep. 29, 2021 | Sep. 07, 2021 | Jun. 30, 2021 | Jun. 07, 2021 | Mar. 30, 2021 | Mar. 05, 2021 | Dec. 29, 2020 | Dec. 02, 2020 | Sep. 29, 2020 | Sep. 02, 2020 | Jun. 29, 2020 | Jun. 03, 2020 | Mar. 25, 2020 | Mar. 02, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Dividends Payable [Line Items] | |||||||||||||||||
Dividends declared, common (in usd per share) | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | |||||||||
Cash Dividend Per Share of Common Stock (in usd per share) | $ 0.300 | $ 0.300 | |||||||||||||||
Common Stock, $0.001 Par Value | |||||||||||||||||
Dividends Payable [Line Items] | |||||||||||||||||
Cash Dividend Per Share of Common Stock (in usd per share) | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 08, 2022 | Dec. 09, 2021 | Sep. 07, 2021 | Jun. 07, 2021 | Mar. 05, 2021 | Dec. 02, 2020 | Sep. 02, 2020 | Jun. 03, 2020 | Mar. 02, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2020 |
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Dividends declared, common (in usd per share) | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | ||||
Net proceeds from issuance of warrants | $ 0 | $ 28 | ||||||||||
Series A Preferred Warrants | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Warrants outstanding (in shares) | 4,541,852 | |||||||||||
Outstanding common stock available for purchase (in shares) | 1,178,125 | |||||||||||
Net proceeds from issuance of warrants | $ 610 | |||||||||||
Rights Offering | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Sale of stock, number of shares issued (in shares) | 8,521,589 | |||||||||||
Purchase price (in usd per share) | $ 9.25 | |||||||||||
Consideration received on transaction | $ 78,800 | |||||||||||
Reduction to additional paid-in capital, due to offering costs incurred | $ 1,900 | |||||||||||
Registration Statement | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Number of warrants included in preferred stock unit (in shares) | 1 | |||||||||||
Warrant right to purchase a share of common stock (in shares) | 0.25 | 0.25 | ||||||||||
Premium of the exercise price of the warrant as a percent to net asset value of common stock | 15.00% | |||||||||||
Registration Statement | Series A Preferred Stock | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Number of shares included in preferred stock unit (in shares) | 1 | |||||||||||
Subsequent event | ||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||
Dividends declared, common (in usd per share) | $ 0.085 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Details) - Discount Rate - Valuation Technique, Discounted Cash Flow | Dec. 31, 2021 | Dec. 31, 2020 |
Mortgage Payable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for debt | 0.0322 | 0.0338 |
Junior subordinated notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for debt | 0.0446 | 0.0449 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value Measurement Inputs (Details) - Valuation Technique, Discounted Cash Flow | Dec. 31, 2021 | Dec. 31, 2020 |
SBA 7(a) loans receivable, Paycheck Protection Program | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for loans receivable | 0.0100 | 1 |
Minimum | SBA 7(a) loans receivable, subject to credit risk | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for loans receivable | 0.0625 | 0.0650 |
Minimum | SBA 7(a) loans receivable, subject to credit risk | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for loans receivable | 0.0500 | 0.0400 |
Minimum | SBA 7(a) loans receivable, subject to loan-backed notes | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for loans receivable | 0.0575 | 0.0550 |
Minimum | SBA 7(a) loans receivable, subject to loan-backed notes | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for loans receivable | 0.0500 | 0.0488 |
Minimum | SBA 7(a) loans receivable, subject to secured borrowings | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for loans receivable | 0.0700 | 0.0700 |
Minimum | SBA 7(a) loans receivable, subject to secured borrowings | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for loans receivable | 0.0500 | 0.0500 |
Maximum | SBA 7(a) loans receivable, subject to credit risk | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for loans receivable | 0.0825 | 0.0825 |
Maximum | SBA 7(a) loans receivable, subject to credit risk | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for loans receivable | 0.1750 | 0.1750 |
Maximum | SBA 7(a) loans receivable, subject to loan-backed notes | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for loans receivable | 0.0775 | 0.0800 |
Maximum | SBA 7(a) loans receivable, subject to loan-backed notes | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for loans receivable | 0.1750 | 0.1750 |
Maximum | SBA 7(a) loans receivable, subject to secured borrowings | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for loans receivable | 0.0775 | 0.0775 |
Maximum | SBA 7(a) loans receivable, subject to secured borrowings | Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for loans receivable | 0.1750 | 0.1750 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable Inputs (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Liabilities: | ||
Mortgage payable | $ 97,100 | $ 97,100 |
Junior subordinated notes | 27,070 | 27,070 |
Carrying Amount | SBA 7(a) loans receivable, Paycheck Protection Program | ||
Assets: | ||
Loans receivable | 4,903 | 14,089 |
Carrying Amount | SBA 7(a) loans receivable, subject to loan-backed notes | ||
Assets: | ||
Loans receivable | 18,077 | 23,606 |
Carrying Amount | SBA 7(a) loans receivable, subject to credit risk | ||
Assets: | ||
Loans receivable | 42,416 | 32,509 |
Carrying Amount | SBA 7(a) loans receivable, subject to secured borrowings | ||
Assets: | ||
Loans receivable | 6,891 | 8,822 |
Carrying Amount | SBA 7(a) loans receivable, held for sale | ||
Assets: | ||
Loans receivable | 1,256 | 4,109 |
Estimated Fair Value | Level 2 | Fair Value, Nonrecurring | ||
Liabilities: | ||
Mortgage payable | 100,838 | 100,799 |
Estimated Fair Value | Level 3 | Fair Value, Nonrecurring | ||
Liabilities: | ||
Mortgage payable | 100,838 | 100,799 |
Junior subordinated notes | 24,378 | 24,236 |
Estimated Fair Value | Level 3 | SBA 7(a) loans receivable, Paycheck Protection Program | Fair Value, Nonrecurring | ||
Assets: | ||
Loans receivable | 5,050 | 14,484 |
Estimated Fair Value | Level 3 | SBA 7(a) loans receivable, subject to loan-backed notes | Fair Value, Nonrecurring | ||
Assets: | ||
Loans receivable | 19,635 | 24,850 |
Estimated Fair Value | Level 3 | SBA 7(a) loans receivable, subject to credit risk | Fair Value, Nonrecurring | ||
Assets: | ||
Loans receivable | 44,399 | 32,397 |
Estimated Fair Value | Level 3 | SBA 7(a) loans receivable, subject to secured borrowings | Fair Value, Nonrecurring | ||
Assets: | ||
Loans receivable | 6,976 | 8,914 |
Estimated Fair Value | Level 3 | SBA 7(a) loans receivable, held for sale | Fair Value, Nonrecurring | ||
Assets: | ||
Loans receivable | $ 1,355 | $ 4,527 |
RELATED-PARTY TRANSACTIONS - As
RELATED-PARTY TRANSACTIONS - Asset Management and Other Fees to Related Parties Narrative (Details) $ in Thousands | Jan. 05, 2022USD ($) | Sep. 22, 2021 | May 11, 2020 | Apr. 09, 2020 | Jan. 28, 2020 | Dec. 31, 2021subsidiary | Mar. 11, 2014USD ($) |
Subsequent event | |||||||
Related Party Transaction [Line Items] | |||||||
Incentive fee | $ 0 | ||||||
Master Services Agreement, Amendment, Quarterly Incentive Fee, Threshold For Eligibility, Per Quarter | C I M Service Provider LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 1.75% | ||||||
Second Amended And Restated Dealer Manager Agreement, Trailing Dealer Manager Fee, Annual | CCO Capital, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 0.25% | ||||||
Affiliated Entity | Subsequent event | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 0.4375% | ||||||
Affiliated Entity | FFO | Subsequent event | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 20.00% | ||||||
Affiliated Entity | Master Services Agreement, Amendment, Annual Incentive Fee | Subsequent event | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 1.00% | ||||||
Affiliated Entity | Master Services Agreement, Amendment, Quarterly Incentive Fee | Subsequent event | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 0.25% | ||||||
Affiliated Entity | Master Services Agreement, Amendment, Quarterly Incentive Fee | C I M Service Provider LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 15.00% | ||||||
Affiliated Entity | Master Services Agreement, Amendment, Quarterly Incentive Fee | FFO | Subsequent event | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 100.00% | ||||||
Affiliated Entity | Master Services Agreement, Amendment, Quarterly Incentive Fee, Threshold For Eligibility, Per Quarter | C I M Service Provider LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 1.75% | ||||||
Affiliated Entity | Master Services Agreement, Amendment, Quarterly Incentive Fee, Threshold For Eligibility, Annualized | C I M Service Provider LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 7.00% | ||||||
Affiliated Entity | Capital Gain Fee | Subsequent event | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 15.00% | ||||||
Affiliated Entity | Second Amended And Restated Dealer Manager Agreement, Upfront Dealer Manager Fee | CCO Capital, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 3.00% | ||||||
Affiliated Entity | Second Amended And Restated Dealer Manager Agreement, Selling Commissions Payable | CCO Capital, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 5.50% | ||||||
Affiliated Entity | Second Amended And Restated Dealer Manager Agreement, Trailing Dealer Manager Fee, Annual | CCO Capital, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 1.25% | ||||||
Affiliated Entity | Second Amended And Restated Dealer Manager Agreement, Amendment No. 1, Selling Commissions Payable | CCO Capital, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 7.00% | ||||||
Affiliated Entity | Second Amended And Restated Dealer Manager Agreement, Trailing Dealer Manager Fee, Daily Accruing Rate Of Annual Rate | CCO Capital, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 0.27% | ||||||
C I M Service Provider LLC | Master Services Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Related party, fees payable per year under agreement | $ 1,000 | ||||||
CIM Capital, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Number of subsidiaries | subsidiary | 4 | ||||||
CCO Capital, LLC | Second Amended And Restated Dealer Manager Agreement, Amendment No. 1, Reallowance Of Selling Commissions | |||||||
Related Party Transaction [Line Items] | |||||||
Related party transaction, rate | 100.00% |
RELATED-PARTY TRANSACTIONS - _2
RELATED-PARTY TRANSACTIONS - Asset Management Fees Calculation (Details) - C I M Urban REIT Management L P $ in Thousands | Dec. 31, 2021USD ($) |
0 - 500,000 | |
Related Party Transaction [Line Items] | |
Quarterly fee percentage | 0.25% |
0 - 500,000 | Minimum | |
Related Party Transaction [Line Items] | |
Daily average adjusted fair value of investments | $ 0 |
0 - 500,000 | Maximum | |
Related Party Transaction [Line Items] | |
Daily average adjusted fair value of investments | $ 500,000 |
500,000 - 1,000,000 | |
Related Party Transaction [Line Items] | |
Quarterly fee percentage | 0.2375% |
500,000 - 1,000,000 | Minimum | |
Related Party Transaction [Line Items] | |
Daily average adjusted fair value of investments | $ 500,000 |
500,000 - 1,000,000 | Maximum | |
Related Party Transaction [Line Items] | |
Daily average adjusted fair value of investments | $ 1,000,000 |
1,000,000 - 1,500,000 | |
Related Party Transaction [Line Items] | |
Quarterly fee percentage | 0.225% |
1,000,000 - 1,500,000 | Minimum | |
Related Party Transaction [Line Items] | |
Daily average adjusted fair value of investments | $ 1,000,000 |
1,000,000 - 1,500,000 | Maximum | |
Related Party Transaction [Line Items] | |
Daily average adjusted fair value of investments | $ 1,500,000 |
1,500,000 - 4,000,000 | |
Related Party Transaction [Line Items] | |
Quarterly fee percentage | 0.2125% |
1,500,000 - 4,000,000 | Minimum | |
Related Party Transaction [Line Items] | |
Daily average adjusted fair value of investments | $ 1,500,000 |
1,500,000 - 4,000,000 | Maximum | |
Related Party Transaction [Line Items] | |
Daily average adjusted fair value of investments | $ 4,000,000 |
4,000,000 - 20,000,000 | |
Related Party Transaction [Line Items] | |
Quarterly fee percentage | 0.10% |
4,000,000 - 20,000,000 | Minimum | |
Related Party Transaction [Line Items] | |
Daily average adjusted fair value of investments | $ 4,000,000 |
4,000,000 - 20,000,000 | Maximum | |
Related Party Transaction [Line Items] | |
Daily average adjusted fair value of investments | $ 20,000,000 |
RELATED-PARTY TRANSACTIONS - Fe
RELATED-PARTY TRANSACTIONS - Fees and Expense Reimbursements (Details) - Affiliated Entity - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
C I M Service Provider LLC | Series A Preferred Stock | ||||
Related Party Transaction [Line Items] | ||||
Related party, shares issued (in shares) | 11,273 | |||
Asset management fees | ||||
Related Party Transaction [Line Items] | ||||
Related party, fees and expense reimbursements | $ 9,030 | $ 9,511 | ||
Property management fees | ||||
Related Party Transaction [Line Items] | ||||
Related party, fees and expense reimbursements | 1,641 | 1,670 | ||
Onsite management and other cost reimbursement | ||||
Related Party Transaction [Line Items] | ||||
Related party, fees and expense reimbursements | 2,687 | 3,356 | ||
Lease commission | ||||
Related Party Transaction [Line Items] | ||||
Related party, fees and expense reimbursements | 162 | 112 | ||
Construction management fees | ||||
Related Party Transaction [Line Items] | ||||
Related party, fees and expense reimbursements | 226 | 344 | ||
Base service fee | ||||
Related Party Transaction [Line Items] | ||||
Related party, fees and expense reimbursements | 0 | 282 | ||
Expense reimbursements to related parties - corporate | ||||
Related Party Transaction [Line Items] | ||||
Related party, fees and expense reimbursements | $ 2,050 | $ 2,243 | ||
Expenses reimbursements to related parties - lending segment | ||||
Related Party Transaction [Line Items] | ||||
Related party, fees and expense reimbursements | 1,921 | 3,491 | ||
Upfront dealer manager and trailing dealer manager fees | ||||
Related Party Transaction [Line Items] | ||||
Related party, fees and expense reimbursements | 690 | 1,149 | ||
Non-issuance specific offering costs | ||||
Related Party Transaction [Line Items] | ||||
Related party, fees and expense reimbursements | 106 | 99 | ||
Deferred costs | $ 2,000 | $ 1,500 | $ 2,000 | $ 1,500 |
Investment Management Agreement | CIM Capital, LLC | Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Related party, shares issued (in shares) | 203,349 | |||
Investment Management Agreement | CIM Capital, LLC | Series A Preferred Stock | ||||
Related Party Transaction [Line Items] | ||||
Related party, shares issued (in shares) | 270,209 | 287,199 | ||
Personnel Fees | ||||
Related Party Transaction [Line Items] | ||||
Deferred personnel costs | $ 347 | $ 136 |
RELATED-PARTY TRANSACTIONS - Du
RELATED-PARTY TRANSACTIONS - Due to Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 4,541 | $ 6,706 |
Asset management fees | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 2,244 | 2,386 |
Property management fees and reimbursements | Affiliated Entity | C I M Management Entities | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 320 | 1,662 |
Expense Reimbursements | Affiliated Entity | Corporate, Non-Segment | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 692 | 647 |
Expense Reimbursements | Affiliated Entity | Operating Segments | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 341 | 690 |
Upfront dealer manager and trailing dealer manager fees | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 638 | 493 |
Non-issuance specific offering costs | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 143 | 668 |
Other amounts due to the CIM Management Entities and certain of its affiliates | Affiliated Entity | C I M Management Entities and Related Parties | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 163 | $ 160 |
RELATED-PARTY TRANSACTIONS - Ot
RELATED-PARTY TRANSACTIONS - Other Narrative (Details) ft² in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Aug. 07, 2019ft² | May 15, 2019ft² | Oct. 01, 2015 | |
C I M Management Entities Affiiate | |||||
Related Party Transaction [Line Items] | |||||
Lease renewal term | 5 years | ||||
Revenue from related parties | $ 0 | $ 87 | |||
Employment Agreement | President | |||||
Related Party Transaction [Line Items] | |||||
Contractual obligation in connection with retirement of company president | 450 | ||||
Employment Agreement | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Due to related party | 287 | ||||
Eleven year lease | CIM Group | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | $ 1,500 | $ 1,500 | |||
Operating lease term | 11 years | ||||
Square feet | ft² | 30 | 32 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2018USD ($) | Dec. 31, 2021USD ($)officer | Dec. 31, 2020USD ($) | |
Commitment and Contingencies [Line Items] | |||
Outstanding loan commitments and approvals to fund loans | $ 32,600 | ||
Future obligations under leases to fund tenant improvements and in other future construction obligation | 8,100 | ||
Restricted cash | 11,340 | $ 10,013 | |
SBA 7(a) Loans | Government guaranteed portions | |||
Commitment and Contingencies [Line Items] | |||
Aggregate amount serviced | $ 262,400 | ||
Pending litigation | City and County of San Francisco Real Property Transfer Tax Case | |||
Commitment and Contingencies [Line Items] | |||
Refund sought for penalties, interest and legal fees paid for real property transfer tax | $ 11,800 | ||
Executive officers | Employment agreements | |||
Commitment and Contingencies [Line Items] | |||
Number of officers covered under employment agreement | officer | 1 | ||
Multiplier to annual base salary paid in event of death | 2 | ||
Multiplier to annual base salary paid in event of disability | 1 | ||
Restricted cash for tenant improvement allowance | |||
Commitment and Contingencies [Line Items] | |||
Restricted cash | $ 2,500 |
LEASES - Future Minimum Rental
LEASES - Future Minimum Rental Revenue under Long-Term Operating Leases (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 44,521 |
2023 | 42,101 |
2024 | 40,059 |
2025 | 24,022 |
2026 | 17,246 |
Thereafter | 32,937 |
Total | $ 200,886 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Net Income to REIT Taxable Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | ||
(Loss) income from continuing operations before income taxes for TRSs | $ 2,141 | $ (15,737) |
Income tax (benefit) provision | 2,992 | (722) |
TRS | ||
Income Tax Contingency [Line Items] | ||
(Loss) income from continuing operations before income taxes for TRSs | 9,242 | (7,995) |
Expected federal income tax (benefit) provision | 1,941 | (1,679) |
State income taxes | (40) | (1,562) |
Change in valuation allowance | (273) | 2,605 |
Other | 1,364 | (86) |
Income tax (benefit) provision | $ 2,992 | $ (722) |
INCOME TAXES - Components of Ne
INCOME TAXES - Components of Net Deferred Tax Asset (Details) - TRS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating losses | $ 2,367 | $ 2,645 |
Secured borrowings—government guaranteed loans | 64 | 96 |
Other | 153 | 160 |
Total gross deferred tax assets | 2,584 | 2,901 |
Valuation allowance | (2,370) | (2,643) |
Deferred tax asset, net of valuation allowance | 214 | 258 |
Deferred tax liabilities: | ||
Loans receivable | (96) | (67) |
Deferred tax liabilities | (96) | (67) |
Deferred tax asset, net | $ 118 | $ 191 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Reserve for uncertain tax positions | $ 0 | $ 0 |
TRS | ||
Operating Loss Carryforwards [Line Items] | ||
Decrease in valuation allowance | $ 273,000 |
SEGMENT DISCLOSURE - Narrative
SEGMENT DISCLOSURE - Narrative (Details) - property | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | ||
Number of types of commercial real estate properties | 2 | 2 |
SEGMENT DISCLOSURE - Segment Ne
SEGMENT DISCLOSURE - Segment Net Operating Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 90,926 | $ 77,208 |
Property and Lending expenses: | ||
Interest expense | 9,413 | 11,415 |
General and administrative | 6,844 | 6,772 |
Total Expenses | 88,785 | 92,945 |
Hotel | ||
Segment Reporting Information [Line Items] | ||
Revenues | 17,849 | 13,314 |
Operating Segments | ||
Property and Lending expenses: | ||
Expense reimbursements to related parties | 1,921 | 3,491 |
Segment net operating income (loss) | 47,061 | 32,641 |
Operating Segments | Office | ||
Segment Reporting Information [Line Items] | ||
Revenues | 53,289 | 55,468 |
Property and Lending expenses: | ||
Operating | 23,431 | 23,485 |
General and administrative | 347 | 490 |
Total Expenses | 23,778 | 23,975 |
Segment net operating income (loss) | 29,511 | 31,493 |
Operating Segments | Hotel | ||
Segment Reporting Information [Line Items] | ||
Revenues | 17,849 | 13,314 |
Property and Lending expenses: | ||
Operating | 15,841 | 14,059 |
General and administrative | 128 | 64 |
Total Expenses | 15,969 | 14,123 |
Segment net operating income (loss) | 1,880 | (809) |
Operating Segments | Lending | ||
Segment Reporting Information [Line Items] | ||
Revenues | 19,787 | 8,322 |
Property and Lending expenses: | ||
Interest expense | 408 | 868 |
Expense reimbursements to related parties | 1,921 | 3,491 |
General and administrative | 1,788 | 2,006 |
Total Expenses | 4,117 | 6,365 |
Segment net operating income (loss) | $ 15,670 | $ 1,957 |
SEGMENT DISCLOSURE - Reconcilia
SEGMENT DISCLOSURE - Reconciliation of Segment Operating Income to Net Income Attributable to Company (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Interest and other income | $ 21,366 | $ 10,503 |
Asset management and other fees to related parties | (9,030) | (9,793) |
Interest expense | (9,413) | (11,415) |
General and administrative | (6,844) | (6,772) |
Transaction costs | (143) | 0 |
Depreciation and amortization | (20,112) | (21,406) |
Loss on early extinguishment of debt | 0 | (281) |
Impairment of real estate | 0 | 0 |
Gain on sale of real estate | 0 | 0 |
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES | 2,141 | (15,737) |
(Provision) benefit for income taxes | (2,992) | 722 |
NET (LOSS) INCOME | (851) | (15,015) |
Net loss (income) attributable to noncontrolling interests | 1 | (1) |
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY | (850) | (15,016) |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segment net operating income | 47,061 | 32,641 |
Expense reimbursements to related parties—corporate | (1,921) | (3,491) |
Corporate And Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Interest and other income | 1 | 104 |
Asset management and other fees to related parties | (9,030) | (9,793) |
Interest expense | (9,005) | (10,547) |
General and administrative | (4,581) | (4,212) |
Corporate, Non-Segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Expense reimbursements to related parties—corporate | $ (2,050) | $ (2,243) |
SEGMENT DISCLOSURE - Assets and
SEGMENT DISCLOSURE - Assets and Capital Expenditures and Loan Originations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Total assets | $ 660,866 | $ 685,617 |
Total capital expenditures | 5,907 | 9,335 |
Loan originations | 133,290 | 53,524 |
Total capital expenditures and loan originations | 139,197 | 62,859 |
Office | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 5,714 | 8,514 |
Hotel | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 193 | 821 |
Operating Segments | Office | ||
Segment Reporting Information [Line Items] | ||
Total assets | 449,843 | 472,544 |
Operating Segments | Hotel | ||
Segment Reporting Information [Line Items] | ||
Total assets | 101,308 | 100,285 |
Operating Segments | Lending | ||
Segment Reporting Information [Line Items] | ||
Total assets | 96,729 | 94,626 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 12,986 | $ 18,162 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Thousands | Jul. 15, 2022$ / shares | Jun. 15, 2022$ / shares | May 17, 2022$ / shares | Mar. 08, 2022$ / shares | Dec. 09, 2021$ / shares | Sep. 07, 2021$ / shares | Jun. 07, 2021$ / shares | Mar. 05, 2021$ / shares | Dec. 02, 2020$ / shares | Sep. 02, 2020$ / shares | Jun. 03, 2020$ / shares | Mar. 02, 2020$ / shares | Feb. 28, 2022USD ($)ft² | Dec. 31, 2021$ / shares | Dec. 31, 2020$ / shares |
Subsequent Event [Line Items] | |||||||||||||||
Dividends declared, common (in usd per share) | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | |||||||
Preferred dividends, per share amount (in usd per share) | $ 1.560 | $ 1.560 | |||||||||||||
Series A Preferred Stock | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Preferred dividends, per share amount (in usd per share) | 1.375 | 1.719 | |||||||||||||
Series A Preferred Stock | Forecast | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Preferred dividends, per share amount (in usd per share) | $ 0.114583 | $ 0.114583 | $ 0.114583 | ||||||||||||
Series D Preferred Stock | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Preferred dividends, per share amount (in usd per share) | $ 1.413 | $ 1.648 | |||||||||||||
Series D Preferred Stock | Forecast | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Preferred dividends, per share amount (in usd per share) | $ 0.117708 | $ 0.117708 | $ 0.117708 | ||||||||||||
Subsequent event | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Dividends declared, common (in usd per share) | $ 0.085 | ||||||||||||||
Subsequent event | Series A Preferred Stock | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Preferred stock, dividends per share, declared (in usd per share) | 0.34375 | ||||||||||||||
Subsequent event | Series D Preferred Stock | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Preferred stock, dividends per share, declared (in usd per share) | $ 0.353125 | ||||||||||||||
Office Property, Los Angeles, California | Subsequent event | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Asset acquisition, percentage of voting interests acquired | 44.00% | ||||||||||||||
Office Property, Los Angeles, California | Subsequent event | Office Building | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Percentage of ownership acquired | 100.00% | ||||||||||||||
Purchase price | $ | $ 51,000 | ||||||||||||||
Transaction costs | $ | $ 51 | ||||||||||||||
Square Feet | ft² | 97,564 | ||||||||||||||
Office Property, Los Angeles, California | Subsequent event | Retail Site | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Square Feet | ft² | 2,760 | ||||||||||||||
Land and Building, Los Angeles, California | Subsequent event | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Percentage of ownership acquired | 100.00% | ||||||||||||||
Purchase price | $ | $ 2,300 | ||||||||||||||
Transaction costs | $ | $ 8 | ||||||||||||||
Land and Building, Los Angeles, California | Subsequent event | Land | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Square Feet | ft² | 11,318 | ||||||||||||||
Land and Building, Los Angeles, California | Subsequent event | Building | |||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||
Area of land | ft² | 3,752 |
SCHEDULE III - REAL ESTATE AN_2
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | |||
Encumbrances | $ 97,100 | ||
Initial Cost | |||
Land | 141,236 | ||
Building and Improvements | 450,876 | ||
Net Improvements (Write-Offs) Since Acquisition | 50,590 | ||
Gross Amount at Which Carried | |||
Land | 141,236 | ||
Building and Improvements | 501,466 | ||
Investments in real estate | 642,702 | $ 637,205 | |
Accumulated Depreciation | 144,718 | 131,165 | $ 120,555 |
Other disclosures | |||
Federal tax cost basis (unaudited) | 695,100 | ||
Line of Credit | Revolving Credit Facility | |||
Other disclosures | |||
Outstanding balance | 60,000 | $ 166,500 | |
Office Building | 3601 S Congress Avenue Austin, TX | |||
Initial Cost | |||
Land | 9,569 | ||
Building and Improvements | 18,593 | ||
Net Improvements (Write-Offs) Since Acquisition | 12,532 | ||
Gross Amount at Which Carried | |||
Land | 9,569 | ||
Building and Improvements | 31,125 | ||
Investments in real estate | 40,694 | ||
Accumulated Depreciation | 8,857 | ||
Office Building | 1 Kaiser Plaza Oakland, CA | |||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | |||
Encumbrances | 97,100 | ||
Initial Cost | |||
Land | 9,261 | ||
Building and Improvements | 113,619 | ||
Net Improvements (Write-Offs) Since Acquisition | 19,048 | ||
Gross Amount at Which Carried | |||
Land | 9,261 | ||
Building and Improvements | 132,667 | ||
Investments in real estate | 141,928 | ||
Accumulated Depreciation | 52,113 | ||
Office Building | 2 Kaiser Plaza Parking Lot Oakland, CA | |||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | |||
Encumbrances | 0 | ||
Initial Cost | |||
Land | 10,931 | ||
Building and Improvements | 110 | ||
Net Improvements (Write-Offs) Since Acquisition | 3,153 | ||
Gross Amount at Which Carried | |||
Land | 10,931 | ||
Building and Improvements | 3,263 | ||
Investments in real estate | 14,194 | ||
Accumulated Depreciation | 42 | ||
Office Building | 11600 Wilshire Blvd Los Angeles, CA | |||
Initial Cost | |||
Land | 3,477 | ||
Building and Improvements | 18,522 | ||
Net Improvements (Write-Offs) Since Acquisition | 2,090 | ||
Gross Amount at Which Carried | |||
Land | 3,477 | ||
Building and Improvements | 20,612 | ||
Investments in real estate | 24,089 | ||
Accumulated Depreciation | 6,584 | ||
Office Building | 11620 Wilshire Blvd Los Angeles, CA | |||
Initial Cost | |||
Land | 7,672 | ||
Building and Improvements | 51,999 | ||
Net Improvements (Write-Offs) Since Acquisition | 6,457 | ||
Gross Amount at Which Carried | |||
Land | 7,672 | ||
Building and Improvements | 58,456 | ||
Investments in real estate | 66,128 | ||
Accumulated Depreciation | 17,940 | ||
Office Building | 4750 Wilshire Blvd Los Angeles, CA | |||
Initial Cost | |||
Land | 16,633 | ||
Building and Improvements | 28,985 | ||
Net Improvements (Write-Offs) Since Acquisition | 5,375 | ||
Gross Amount at Which Carried | |||
Land | 16,633 | ||
Building and Improvements | 34,360 | ||
Investments in real estate | 50,993 | ||
Accumulated Depreciation | 6,367 | ||
Office Building | Lindblade Media Center Los Angeles, CA | |||
Initial Cost | |||
Land | 6,342 | ||
Building and Improvements | 11,568 | ||
Net Improvements (Write-Offs) Since Acquisition | (101) | ||
Gross Amount at Which Carried | |||
Land | 6,342 | ||
Building and Improvements | 11,467 | ||
Investments in real estate | 17,809 | ||
Accumulated Depreciation | 2,198 | ||
Office Building | 1037 N Sycamore Los Angeles, CA | |||
Initial Cost | |||
Land | 1,839 | ||
Building and Improvements | 1,094 | ||
Net Improvements (Write-Offs) Since Acquisition | 48 | ||
Gross Amount at Which Carried | |||
Land | 1,839 | ||
Building and Improvements | 1,142 | ||
Investments in real estate | 2,981 | ||
Accumulated Depreciation | 14 | ||
Office Building | 1130 Howard Street San Francisco, CA | |||
Initial Cost | |||
Land | 8,290 | ||
Building and Improvements | 10,480 | ||
Net Improvements (Write-Offs) Since Acquisition | 131 | ||
Gross Amount at Which Carried | |||
Land | 8,290 | ||
Building and Improvements | 10,611 | ||
Investments in real estate | 18,901 | ||
Accumulated Depreciation | 1,297 | ||
Office Building | 9460 Wilshire Boulevard Los Angeles, CA | |||
Initial Cost | |||
Land | 52,199 | ||
Building and Improvements | 76,730 | ||
Net Improvements (Write-Offs) Since Acquisition | 1,681 | ||
Gross Amount at Which Carried | |||
Land | 52,199 | ||
Building and Improvements | 78,411 | ||
Investments in real estate | 130,610 | ||
Accumulated Depreciation | 8,738 | ||
Office Building | 1021 East 7th Street, Austin, TX | |||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | |||
Encumbrances | 0 | ||
Initial Cost | |||
Land | 4,976 | ||
Building and Improvements | 733 | ||
Net Improvements (Write-Offs) Since Acquisition | 0 | ||
Gross Amount at Which Carried | |||
Land | 4,976 | ||
Building and Improvements | 733 | ||
Investments in real estate | 5,709 | ||
Accumulated Depreciation | 113 | ||
Hotel | Sheraton Grand Hotel Sacramento, CA | |||
Initial Cost | |||
Land | 3,497 | ||
Building and Improvements | 107,447 | ||
Net Improvements (Write-Offs) Since Acquisition | (99) | ||
Gross Amount at Which Carried | |||
Land | 3,497 | ||
Building and Improvements | 107,348 | ||
Investments in real estate | 110,845 | ||
Accumulated Depreciation | 36,612 | ||
Hotel | Sheraton Grand Hotel Parking & Retail Sacramento, CA | |||
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | |||
Encumbrances | 0 | ||
Initial Cost | |||
Land | 6,550 | ||
Building and Improvements | 10,996 | ||
Net Improvements (Write-Offs) Since Acquisition | 275 | ||
Gross Amount at Which Carried | |||
Land | 6,550 | ||
Building and Improvements | 11,271 | ||
Investments in real estate | 17,821 | ||
Accumulated Depreciation | $ 3,843 |
SCHEDULE III - REAL ESTATE AN_3
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION - Property Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments in Real Estate | ||
Balance, beginning of period | $ 637,205 | $ 629,262 |
Additions: | ||
Improvements | 5,907 | 9,335 |
Property acquisitions | 2,933 | 5,709 |
Deductions: | ||
Assets held for sale | 0 | 0 |
Asset sales | 0 | 0 |
Impairment | 0 | 0 |
Retirements | (3,343) | (7,101) |
Balance, end of period | 642,702 | 637,205 |
Accumulated Depreciation | ||
Balance, beginning of period | (131,165) | (120,555) |
Additions: depreciation | (16,896) | (17,711) |
Assets held for sale | 0 | 0 |
Asset sales | 0 | 0 |
Retirements | 3,343 | 7,101 |
Balance, end of period | $ (144,718) | $ (131,165) |
SCHEDULE IV - MORTGAGE LOANS _2
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying amount of mortgages | $ 73,543 | $ 83,135 | $ 68,079 |
Loans receivable | 73,260 | 83,136 | |
SBA 7(a) loans receivable, Paycheck Protection Program | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Loans receivable | $ 5,050 | $ 14,484 | |
SBA 7(a) Loans | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 199 | ||
Carrying amount of mortgages | $ 73,543 | ||
Principal amount of loans subject to delinquent principal or "interest" | 85 | ||
Loans not secured by real estate | 359 | ||
Federal income tax cost basis of mortgage loans (unaudited) | 66,400 | ||
SBA 7(a) Loans | Government guaranteed portions | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying amount of mortgages | 1,199 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | SBA 7(a) loans receivable, subject to secured borrowings | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying amount of mortgages | 6,671 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | SBA 7(a) loans receivable, Paycheck Protection Program | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Carrying amount of mortgages | 4,903 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | General reserves | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
General reserves | (858) | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
Reserves | $ 858 | ||
SBA 7(a) Loans | Texas | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 21 | ||
Carrying amount of mortgages | $ 7,861 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | Texas | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 10 | ||
Interest Rate | 4.75% | ||
SBA 7(a) Loans | Texas | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 980 | ||
Interest Rate | 6.00% | ||
SBA 7(a) Loans | Ohio | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 23 | ||
Carrying amount of mortgages | $ 7,672 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | Ohio | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 70 | ||
Interest Rate | 4.75% | ||
SBA 7(a) Loans | Ohio | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 890 | ||
Interest Rate | 6.00% | ||
SBA 7(a) Loans | Indiana | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 16 | ||
Carrying amount of mortgages | $ 6,873 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | Indiana | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 100 | ||
Interest Rate | 4.75% | ||
SBA 7(a) Loans | Indiana | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 970 | ||
Interest Rate | 6.00% | ||
SBA 7(a) Loans | Michigan | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 20 | ||
Carrying amount of mortgages | $ 5,859 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | Michigan | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 10 | ||
Interest Rate | 4.75% | ||
SBA 7(a) Loans | Michigan | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 970 | ||
Interest Rate | 6.00% | ||
SBA 7(a) Loans | Florida | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 12 | ||
Carrying amount of mortgages | $ 5,173 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | Florida | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 90 | ||
Interest Rate | 5.00% | ||
SBA 7(a) Loans | Florida | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 1,070 | ||
Interest Rate | 6.00% | ||
SBA 7(a) Loans | Illinois | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 11 | ||
Carrying amount of mortgages | $ 2,278 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | Illinois | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 50 | ||
Interest Rate | 5.00% | ||
SBA 7(a) Loans | Illinois | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 530 | ||
Interest Rate | 6.00% | ||
SBA 7(a) Loans | West Virginia | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 6 | ||
Carrying amount of mortgages | $ 2,107 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | West Virginia | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 20 | ||
Interest Rate | 4.75% | ||
SBA 7(a) Loans | West Virginia | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 870 | ||
Interest Rate | 6.00% | ||
SBA 7(a) Loans | Pennsylvania | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 4 | ||
Carrying amount of mortgages | $ 2,077 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | Pennsylvania | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 310 | ||
Interest Rate | 5.00% | ||
SBA 7(a) Loans | Pennsylvania | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 690 | ||
Interest Rate | 6.00% | ||
SBA 7(a) Loans | Pennsylvania | Mortgage Loans - $284,000 | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 85 | ||
Interest Rate | 6.00% | ||
General reserves | $ (85) | ||
Reserves | $ 85 | ||
SBA 7(a) Loans | Louisiana | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 6 | ||
Carrying amount of mortgages | $ 1,801 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | Louisiana | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 90 | ||
Interest Rate | 5.00% | ||
SBA 7(a) Loans | Louisiana | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 590 | ||
Interest Rate | 6.00% | ||
SBA 7(a) Loans | New Mexico | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 5 | ||
Carrying amount of mortgages | $ 1,720 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | New Mexico | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 100 | ||
Interest Rate | 4.75% | ||
SBA 7(a) Loans | New Mexico | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 770 | ||
Interest Rate | 6.00% | ||
SBA 7(a) Loans | Virginia | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 5 | ||
Carrying amount of mortgages | $ 1,640 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | Virginia | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 110 | ||
Interest Rate | 5.00% | ||
SBA 7(a) Loans | Virginia | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 650 | ||
Interest Rate | 5.75% | ||
SBA 7(a) Loans | Colorado | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 4 | ||
Carrying amount of mortgages | $ 1,515 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | Colorado | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 320 | ||
Interest Rate | 4.75% | ||
SBA 7(a) Loans | Colorado | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 520 | ||
Interest Rate | 5.50% | ||
SBA 7(a) Loans | Kentucky | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 6 | ||
Carrying amount of mortgages | $ 1,498 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | Kentucky | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 130 | ||
Interest Rate | 5.00% | ||
SBA 7(a) Loans | Kentucky | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 420 | ||
Interest Rate | 6.00% | ||
SBA 7(a) Loans | Alabama | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 7 | ||
Carrying amount of mortgages | $ 1,473 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | Alabama | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 30 | ||
Interest Rate | 5.00% | ||
SBA 7(a) Loans | Alabama | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 480 | ||
Interest Rate | 5.75% | ||
SBA 7(a) Loans | North Carolina | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 7 | ||
Carrying amount of mortgages | $ 1,358 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | North Carolina | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 60 | ||
Interest Rate | 5.25% | ||
SBA 7(a) Loans | North Carolina | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 350 | ||
Interest Rate | 6.00% | ||
SBA 7(a) Loans | South Carolina | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 4 | ||
Carrying amount of mortgages | $ 1,308 | ||
Principal amount of loans subject to delinquent principal or "interest" | 0 | ||
SBA 7(a) Loans | South Carolina | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 270 | ||
Interest Rate | 5.00% | ||
SBA 7(a) Loans | South Carolina | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 390 | ||
Interest Rate | 6.00% | ||
SBA 7(a) Loans | Other | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Number of loans | loan | 42 | ||
Carrying amount of mortgages | $ 9,415 | ||
Principal amount of loans subject to delinquent principal or "interest" | 85 | ||
SBA 7(a) Loans | Other | Minimum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 1 | ||
Interest Rate | 4.75% | ||
SBA 7(a) Loans | Other | Maximum | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Size of loans | $ 510 | ||
Interest Rate | 6.00% |
SCHEDULE IV - MORTGAGE LOANS _3
SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE - Mortgage Loan Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Mortgage Loans on Real Estate | ||
Balance, beginning of period | $ 83,135 | $ 68,079 |
Additions during period: | ||
New loans | 133,290 | 53,524 |
Other - deferral of loan origination costs | 2,559 | 382 |
Other - accretion of loan discounts, net of amortization of deferred origination costs | 1,424 | 933 |
Deductions during period: | ||
Collections of principal | (32,370) | (11,580) |
Foreclosures | 0 | (174) |
Cost of mortgages sold, net | (114,437) | (27,609) |
Other - bad debt expense | (58) | (420) |
Balance, end of period | $ 73,543 | $ 83,135 |