QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer ☐ | Accelerated filer ☐ | Smaller reporting company | |||||||||
Emerging growth Company |
PAGE | ||||||||
March 31, 2021 | December 31, 2020 | ||||||||||
Assets | |||||||||||
Real estate, net | $ | $ | |||||||||
Notes receivable (including $ | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Investment in unconsolidated joint ventures | |||||||||||
Receivable from related parties | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Equity | |||||||||||
Liabilities: | |||||||||||
Mortgages and notes payable | |||||||||||
Bonds payable | |||||||||||
Accounts payable and other liabilities (including $ | |||||||||||
Accrued interest payable | |||||||||||
Deferred revenue | |||||||||||
Total liabilities | |||||||||||
Equity | |||||||||||
Shareholders' Equity: | |||||||||||
Preferred stock, Series A, $ | |||||||||||
Common stock, $ | |||||||||||
Treasury stock, | ( | ||||||||||
Paid-in capital | |||||||||||
Retained earnings | |||||||||||
Total shareholders' equity | |||||||||||
Non-controlling interest | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Revenues: | ||||||||||||||
Rental revenues (including $ | $ | $ | ||||||||||||
Other income | ||||||||||||||
Total revenue | ||||||||||||||
Expenses: | ||||||||||||||
Property operating expenses (including $ | ||||||||||||||
Depreciation and amortization | ||||||||||||||
General and administrative (including $ | ||||||||||||||
Advisory fee to related party | ||||||||||||||
Total operating expenses | ||||||||||||||
Net operating loss | ( | ( | ||||||||||||
Interest income (including $ | ||||||||||||||
Interest expense (including $ | ( | ( | ||||||||||||
(Loss) gain on foreign currency transactions | ||||||||||||||
Equity in income (loss) from unconsolidated joint ventures | ( | |||||||||||||
Gain on sale or write-down of assets, net | ||||||||||||||
Income tax provision | ( | ( | ||||||||||||
Net income | ||||||||||||||
Net income attributable to noncontrolling interest | ( | ( | ||||||||||||
Net income attributable to the Company | $ | $ | ||||||||||||
Earnings per share - basic | ||||||||||||||
Basic and diluted | $ | $ | ||||||||||||
Weighted average common shares used in computing earnings per share | ||||||||||||||
Basic and diluted |
Preferred Stock | Common Stock | Treasury Stock | Paid-in Capital | Retained Earnings | Total Shareholders' Equity | Noncontrolling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Cancellation of treasury shares | — | — | ( | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | ( | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | $ | $ | $ | ( | $ | $ | $ | $ | $ |
For the Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash Flow From Operating Activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Gain on sale or write down of assets | ( | ( | |||||||||
Gain on foreign currency transactions | ( | ( | |||||||||
Depreciation and amortization | |||||||||||
Provision for bad debts | ( | ( | |||||||||
Equity in (income ) loss from unconsolidated joint ventures | ( | ||||||||||
Distribution of income from unconsolidated joint ventures | |||||||||||
Changes in assets and liabilities, net of dispositions: | |||||||||||
Other assets | ( | ||||||||||
Related party receivables | ( | ||||||||||
Accrued interest payable | ( | ( | |||||||||
Accounts payable and other liabilities | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
Cash Flow From Investing Activities: | |||||||||||
Collection of notes receivable | |||||||||||
Originations and advances on notes receivable | ( | ( | |||||||||
Acquisition of real estate | ( | ||||||||||
Development and renovation of real estate | ( | ( | |||||||||
Deferred leasing costs | ( | ||||||||||
Proceeds from sale of assets | |||||||||||
Contribution to unconsolidated joint ventures | ( | ||||||||||
Distribution from unconsolidated joint ventures | |||||||||||
Net cash provided by investing activities | |||||||||||
Cash Flow From Financing Activities: | |||||||||||
Proceeds from mortgages, other notes and bonds payable | |||||||||||
Payments on mortgages, other notes and bonds payable | ( | ( | |||||||||
Debt extinguishment costs | |||||||||||
Deferred financing costs | ( | ||||||||||
Preferred stock dividends | |||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net income | $ | $ | |||||||||
Net income attributable to non-controlling interest | ( | ( | |||||||||
Net income loss attributable to the Company | $ | $ | |||||||||
Weighted-average common shares outstanding — basic and diluted | |||||||||||
EPS - attributable to common shares — basic and diluted | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash - Beginning of period | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
$ | $ | ||||||||||
Cash - End of Period | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
$ | $ | ||||||||||
Proceeds from mortgages, notes and bonds payable | |||||||||||
Proceeds from mortgages and notes payable | $ | $ | |||||||||
Proceeds from bonds | |||||||||||
$ | $ | ||||||||||
Payment of mortgages, notes and bonds payable | |||||||||||
Recurring payment on mortgages and notes payable | $ | $ | |||||||||
Bond payments | |||||||||||
$ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Property acquired in exchange for note payable | $ | $ | |||||||||
Assets contributed to joint venture | |||||||||||
Liabilities assumed by joint venture | |||||||||||
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Multifamily Segment | ||||||||||||||
Revenues | $ | $ | ||||||||||||
Operating expenses | ( | ( | ||||||||||||
Profit from segment | ||||||||||||||
Commercial Segment | ||||||||||||||
Revenues | ||||||||||||||
Operating expenses | ( | ( | ||||||||||||
Profit from segment | ||||||||||||||
Total profit from segments | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Total profit from segments | $ | $ | ||||||||||||
Other non-segment items of income (expense) | ||||||||||||||
Depreciation | ( | ( | ||||||||||||
General and administrative | ( | ( | ||||||||||||
Advisory fee to related party | ( | ( | ||||||||||||
Other income | ||||||||||||||
Interest income | ||||||||||||||
Interest expense | ( | ( | ||||||||||||
Gain on foreign currency transaction | ||||||||||||||
Income (losses) from unconsolidated joint ventures | ( | |||||||||||||
Gain on sales or write-down of assets | ||||||||||||||
Income tax expense | ( | ( | ||||||||||||
Net income | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Fixed component | $ | $ | ||||||||||||
Variable component | ||||||||||||||
$ | $ |
2021 | $ | |||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
Thereafter | ||||||||
$ |
March 31, 2021 | December 31, 2020 | ||||||||||
Land | $ | $ | |||||||||
Building and improvements | |||||||||||
Tenant improvements | |||||||||||
Construction in progress | |||||||||||
Total cost | |||||||||||
Less accumulated deprecation | ( | ( | |||||||||
Total real estate, net | |||||||||||
Property held for sale | |||||||||||
Total real estate | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Land(1) | $ | $ | |||||||||
Residential Properties(2) | |||||||||||
$ | $ |
Carrying value | ||||||||||||||||||||||||||
Property/Borrower | March 31, 2021 | December 31, 2020 | Interest Rate | Maturity Date | ||||||||||||||||||||||
ABC Land and Development, Inc. | $ | $ | % | 6/30/21 | ||||||||||||||||||||||
ABC Paradise, LLC | % | 6/30/21 | ||||||||||||||||||||||||
Autumn Breeze(1) | % | 7/1/22 | ||||||||||||||||||||||||
Bellwether Ridge(1) | % | 11/1/21 | ||||||||||||||||||||||||
Forest Pines(1) | % | 11/1/22 | ||||||||||||||||||||||||
Lake Wales | % | 6/30/21 | ||||||||||||||||||||||||
Legacy Pleasant Grove | % | 10/23/22 | ||||||||||||||||||||||||
McKinney Ranch | % | 9/15/22 | ||||||||||||||||||||||||
One Realco Land Holding, Inc. | % | 6/30/21 | ||||||||||||||||||||||||
Parc at Ingleside(1) | % | 12/1/21 | ||||||||||||||||||||||||
Parc at Opelika(1) | % | 1/13/23 | ||||||||||||||||||||||||
Parc at Windmill Farms(1) | % | 11/1/22 | ||||||||||||||||||||||||
Phillips Foundation for Better Living, Inc.(2) | % | 3/31/23 | ||||||||||||||||||||||||
Phillips Foundation for Better Living, Inc.(2) | % | 3/31/24 | ||||||||||||||||||||||||
Plum Tree(1) | % | 4/26/26 | ||||||||||||||||||||||||
Riverview on the Park Land, LLC | % | 6/30/21 | ||||||||||||||||||||||||
RNC Portfolio, Inc. | % | 9/1/24 | ||||||||||||||||||||||||
Spartan Land | % | 1/16/23 | ||||||||||||||||||||||||
Spyglass of Ennis(1) | % | 11/1/22 | ||||||||||||||||||||||||
Steeple Crest(1) | % | 8/1/21 | ||||||||||||||||||||||||
Unified Housing Foundation, Inc. (2)(3) | % | 7/31/21 | ||||||||||||||||||||||||
Unified Housing Foundation, Inc. (2)(3) | % | 8/30/21 | ||||||||||||||||||||||||
Unified Housing Foundation, Inc. (2)(3) | % | 10/31/21 | ||||||||||||||||||||||||
Unified Housing Foundation, Inc. (2)(3) | % | 12/31/21 | ||||||||||||||||||||||||
Unified Housing Foundation, Inc. (2)(3) | % | 3/31/22 | ||||||||||||||||||||||||
Unified Housing Foundation, Inc. (2)(3) | % | 3/31/23 | ||||||||||||||||||||||||
Unified Housing Foundation, Inc. (2)(3) | % | 5/31/23 | ||||||||||||||||||||||||
Unified Housing Foundation, Inc. (2)(3) | % | 12/31/32 | ||||||||||||||||||||||||
Unified Housing Foundation, Inc. (2)(3) | % | 3/31/24 | ||||||||||||||||||||||||
$ | $ |
March 31, 2021 | December 31, 2020 | |||||||||||||
Assets (1) | ||||||||||||||
Real estate | $ | $ | ||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and Partners Capital (1) | ||||||||||||||
Mortgage notes payable | $ | $ | ||||||||||||
Mezzanine notes payable | ||||||||||||||
Other liabilities | ||||||||||||||
Our share of partners' capital | ||||||||||||||
Outside partner's capital | ||||||||||||||
Total liabilities and partners' capital | $ | $ | ||||||||||||
Investment in unconsolidated joint ventures | ||||||||||||||
Our share of partners' capital | $ | $ | ||||||||||||
Our share of Mezzanine note payable | ||||||||||||||
Basis adjustment (2) | ( | ( | ||||||||||||
Total investment in unconsolidated joint ventures | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Revenue (1) | |||||||||||
Rental revenue | $ | $ | |||||||||
Other revenue | |||||||||||
Total revenue | |||||||||||
Expenses (1) | |||||||||||
Operating expenses | |||||||||||
Depreciation and amortization | |||||||||||
Interest | |||||||||||
Total expenses | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Our share of net loss in unconsolidated joint ventures | $ | $ | ( |
Carrying value | ||||||||||||||||||||||||||
Property / Entity | March 31, 2021 | December 31, 2020 | Effective Interest Rate | Maturity Date | ||||||||||||||||||||||
600 Las Colinas | % | 11/1/2023 | ||||||||||||||||||||||||
770 South Post Oak | % | 6/1/2025 | ||||||||||||||||||||||||
Athens(1) | % | 8/28/2022 | ||||||||||||||||||||||||
Chelsea | % | 12/1/2050 | ||||||||||||||||||||||||
EQK Portage - Land | % | 11/13/2024 | ||||||||||||||||||||||||
HSW Partners | % | 6/17/2021 | ||||||||||||||||||||||||
Forest Grove(2) | % | 5/5/2024 | ||||||||||||||||||||||||
Landing Bayou | % | 9/1/2053 | ||||||||||||||||||||||||
Legacy at Pleasant Grove | % | 4/1/2048 | ||||||||||||||||||||||||
McKinney 36 Land | % | 6/30/2022 | ||||||||||||||||||||||||
New Concept Energy | % | 9/30/2021 | ||||||||||||||||||||||||
Overlook at Allensville Phase II(3) | % | 5/1/2059 | ||||||||||||||||||||||||
Parc at Denham Springs Phase II | % | 2/1/2060 | ||||||||||||||||||||||||
Stanford Center | % | 2/26/2022 | ||||||||||||||||||||||||
Sugar Mill Phase III | % | 2/1/2060 | ||||||||||||||||||||||||
Toulon | % | 12/1/2051 | ||||||||||||||||||||||||
Villas at Bon Secour | % | 1/1/2022 | ||||||||||||||||||||||||
Vista Ridge | % | 8/1/2053 | ||||||||||||||||||||||||
Windmill Farms(4) | % | 2/28/2023 | ||||||||||||||||||||||||
$ | $ |
Bond Issuance | March 31, 2021 | December 31, 2020 | Interest Rate | Maturity | ||||||||||||||||||||||
Series A Bonds(1) | $ | $ | % | 7/31/23 | ||||||||||||||||||||||
Series B Bonds(2) | % | 7/31/25 | ||||||||||||||||||||||||
Series C Bonds(1) | % | 1/31/23 | ||||||||||||||||||||||||
Less unamortized deferred issuance costs | ( | ( | ||||||||||||||||||||||||
$ | $ |
Three Months Ended March 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Current | $ | $ | ||||||||||||
Deferred | ||||||||||||||
$ | $ |
Property | Location | No. of Units | Costs to Date (1) | Total Projected Costs (1) | ||||||||||||||||||||||
Athens | Athens, AL | 232 | 289 | 34,800 | ||||||||||||||||||||||
Heritage McKinney | McKinney, TX | 170 | 318 | 24,650 | ||||||||||||||||||||||
Total | 402 | $ | 607 | $ | 59,450 |
Three Months Ended March 31, | ||||||||||||||||||||
2021 | 2020 | Variance | ||||||||||||||||||
Multifamily Segment | ||||||||||||||||||||
Revenue | $ | 3,836 | $ | 3,556 | $ | 280 | ||||||||||||||
Operating expenses | (2,123) | (1,945) | (178) | |||||||||||||||||
1,713 | 1,611 | 102 | ||||||||||||||||||
Commercial Segment | ||||||||||||||||||||
Revenue | 6,525 | 7,886 | (1,361) | |||||||||||||||||
Operating expenses | (3,709) | (4,364) | 655 | |||||||||||||||||
2,816 | 3,522 | (706) | ||||||||||||||||||
Segment operating income | 4,529 | 5,133 | (604) | |||||||||||||||||
Other non-segment items of income (expense) | ||||||||||||||||||||
Depreciation and amortization | (3,327) | (3,394) | 67 | |||||||||||||||||
General, administrative and advisory | (5,671) | (6,665) | 994 | |||||||||||||||||
Interest, net | (2,094) | (3,848) | 1,754 | |||||||||||||||||
Gain on foreign currency transactions | 7,617 | 7,843 | (226) | |||||||||||||||||
Gain sale or write down of assets | 17,398 | 4,138 | 13,260 | |||||||||||||||||
Income (loss) from joint ventures | 3,336 | (260) | 3,596 | |||||||||||||||||
Other income | 1,427 | 1,441 | (14) | |||||||||||||||||
Net income | $ | 23,215 | $ | 4,388 | $ | 18,827 |
Three Months Ended March 31, | |||||||||||||||||
2021 | 2020 | Incr /(Decr) | |||||||||||||||
Net cash provided by (used in) operating activities | $ | (1,449) | $ | (11,602) | $ | 10,153 | |||||||||||
Net cash provided by (used in) investing activities | $ | 14,645 | $ | 5,434 | $ | 9,211 | |||||||||||
Net cash (used in) provided by financing activities | $ | (25,155) | $ | (9,039) | $ | (16,116) |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net income attributable to the Company | $ | 18,068 | $ | 2,946 | |||||||
Depreciation and amortization on consolidated assets | 3,327 | 3,394 | |||||||||
Gain on sale or write down of assets | (17,398) | (4,138) | |||||||||
Gain on sale of land | 5,957 | 4,138 | |||||||||
Depreciation and amortization on unconsolidated joint ventures at pro rata share | (1,870) | 375 | |||||||||
FFO-Basic and Diluted | 8,084 | 6,715 | |||||||||
Gain on foreign currency transaction | (7,617) | (7,843) | |||||||||
FFO-adjusted | $ | 467 | $ | (1,128) |
Exhibit Number | Description of Exhibit | |||||||
3.0 | Certificate of Restatement of Articles of Incorporation of American Realty Investors, Inc. dated August 3, 2000 (incorporated by reference to Exhibit 3.0 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2000). | |||||||
3.1 | Certificate of Correction of Restated Articles of Incorporation of American Realty Investors, Inc. dated August 29, 2000 (incorporated by reference to Exhibit 3.1 to Registrant’s Quarterly Report on Form 10-Q dated September 30, 2000). | |||||||
3.2 | Articles of Amendment to the Restated Articles of Incorporation of American Realty Investors, Inc. decreasing the number of authorized shares of and eliminating Series B Cumulative Convertible Preferred Stock dated August 23, 2003 (incorporated by reference to Exhibit 3.3 to Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003). | |||||||
3.3 | Articles of Amendment to the Restated Articles of Incorporation of American Realty Investors, Inc., decreasing the number of authorized shares of and eliminating Series I Cumulative Preferred Stock dated October 1, 2003 (incorporated by reference to Exhibit 3.4 to Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003). | |||||||
3.4 | Bylaws of American Realty Investors, Inc. (incorporated by reference to Exhibit 3.2 to Registrant’s Registration Statement on Form S-4 filed December 30, 1999). | |||||||
4.1 | Certificate of Designations, Preferences and Relative Participating or Optional or Other Special Rights, and Qualifications, Limitations or Restrictions Thereof of Series F Redeemable Preferred Stock of American Realty Investors, Inc., dated June 11, 2001 (incorporated by reference to Exhibit 4.1 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2001). | |||||||
4.2 | Certificate of Withdrawal of Preferred Stock, Decreasing the Number of Authorized Shares of and Eliminating Series F Redeemable Preferred Stock, dated June 18, 2002 (incorporated by reference to Exhibit 3.0 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2002). | |||||||
4.3 | Certificate of Designation, Preferences and Rights of the Series I Cumulative Preferred Stock of American Realty Investors, Inc., dated February 3, 2003 (incorporated by reference to Exhibit 4.3 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2002). | |||||||
4.4 | Certificate of Designation for Nevada Profit Corporations designating the Series J 8% Cumulative Convertible Preferred Stock as filed with the Secretary of State of Nevada on March 16, 2006 (incorporated by reference to Registrant’s current report on Form 8-K for event of March 16, 2006). | |||||||
4.5 | Certificate of Designation for Nevada Profit Corporation designating the Series K Convertible Preferred Stock as filed with the Secretary of State of Nevada on May 6, 2013 (incorporated by reference to Registrant’s current report on form 8-K for event of May 7, 2013). | |||||||
10.1 | Advisory Agreement between American Realty Investors, Inc. and Pillar Income Asset Management, Inc., dated April 30, 2011 (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, dated May 2, 2011). | |||||||
10.2 | Second Amendment to Modification of Stipulation of Settlement dated October 17, 2001 (incorporated by reference to Exhibit 10.1 to the Registrant’s Registration Statement on Form S-4, dated February 24, 2002). | |||||||
Certification by the Principal Executive Officer pursuant to Rule 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended. | ||||||||
Certification pursuant to 18 U.S.C. 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
101.INS | XBRL Instance Document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
AMERICAN REALTY INVESTORS, INC. | ||||||||
Date: May 13, 2021 | By: | /s/ Erik L. Johnson | ||||||
Erik L. Johnson Executive Vice President and Chief Financial Officer (Principal Executive and Financial Officer) |
Date: May 13, 2021 | By: | /s/ Erik L. Johnson | ||||||
Erik L. Johnson Executive Vice President and Chief Financial Officer (Principal Executive and Financial Officer) |
AMERICAN REALTY INVESTORS, INC. | ||||||||
Date: May 13, 2021 | By: | /s/ Erik L. Johnson | ||||||
Erik L. Johnson Executive Vice President and Chief Financial Officer (Principal Executive and Financial Officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Notes and interest receivable | $ 137,718 | $ 130,626 |
Accounts payable and other liabilities | $ 23,502 | $ 27,299 |
Preferred stock, par value (in dollars per share) | $ 2.00 | $ 2.00 |
Preferred stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, issued (in shares) | 1,800,614 | 1,800,614 |
Preferred stock, outstanding (in shares) | 1,800,614 | 1,800,614 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 16,152,043 | 16,209,228 |
Common stock, outstanding (in shares) | 16,152,043 | 16,152,043 |
Treasury stock (in shares) | 57,185 | |
Related Parties | ||
Notes and interest receivable | $ 75,135 | $ 70,375 |
Accounts payable and other liabilities | $ 14,724 | $ 12,488 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2021 |
Mar. 31, 2020 |
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Rental revenues | $ 10,361 | $ 11,442 |
Property operating expenses | 5,832 | 6,309 |
General and administrative | 3,235 | 4,292 |
Interest income | 5,644 | 5,754 |
Interest expense | 7,738 | 9,602 |
Affiliate | ||
Rental revenues | 242 | 221 |
Property operating expenses | 382 | 242 |
General and administrative | 1,670 | 1,133 |
Interest income | 4,769 | 5,073 |
Interest expense | $ 1,395 | $ 1,915 |
CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Thousands |
Total |
Parent |
Preferred Stock |
Common Stock |
Treasury Stock |
Paid-in Capital |
Retained Earnings |
Noncontrolling Interest |
---|---|---|---|---|---|---|---|---|
Balance at beginning at Dec. 31, 2019 | $ 296,516 | $ 239,499 | $ 3,601 | $ 164 | $ (6,395) | $ 78,421 | $ 163,708 | $ 57,017 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 4,388 | 2,946 | 2,946 | 1,442 | ||||
Balance at ending at Mar. 31, 2020 | 300,904 | 242,445 | 3,601 | 164 | (6,395) | 78,421 | 166,654 | 58,459 |
Balance at beginning at Dec. 31, 2020 | 330,406 | 236,791 | 1,801 | 162 | (2) | 62,092 | 172,738 | 93,615 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cancellation of treasury shares | 0 | 2 | (2) | |||||
Net income | 23,215 | 18,068 | 18,068 | 5,147 | ||||
Balance at ending at Mar. 31, 2021 | $ 353,621 | $ 254,859 | $ 1,801 | $ 162 | $ 0 | $ 62,090 | $ 190,806 | $ 98,762 |
Organization |
3 Months Ended |
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Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization As used herein, the terms “the Company”, “we”, “our” or “us” refer to American Realty Investors, Inc., a Nevada corporation, which was formed in 1999. Our common stock trades on the New York Stock Exchange (“NYSE”) under the symbol (“ARL”) and over 90% of our stock is owned by related party entities. Our primary business is the acquisition, development and ownership of income-producing multifamily and commercial properties. In addition, we opportunistically acquire land for future development in in-fill or high-growth suburban markets. From time to time and when we believe it appropriate to do so, we will also sell land and income-producing properties. We generate revenues by leasing apartment units to residents, and leasing office, industrial and retail space to various for-profit businesses as well as certain local, state and federal agencies. We also generate revenues from gains on sales of income-producing properties and land. We own approximately 78.4% of Transcontinental Realty Investors, Inc. ("TCI") and substantially all of our operations are conducted through TCI, whose common stock is traded on the NYSE under the symbol “TCI”. Accordingly, we include TCI’s financial results in our consolidated financial statements. Substantially all of TCI's assets are held by its wholly-owned subsidiary, Southern Properties Capital Ltd. (“SPC”), which was formed for the purpose of raising funds by issuing non-convertible bonds that are listed and traded on the Tel-Aviv Stock Exchange ("TASE"). At March 31, 2021, our portfolio of income-producing properties consisted of: ● Six commercial properties consisting of five office buildings and 1 retail property comprising in aggregate of approximately 1,575,685 square feet; ● Nine multifamily properties owned directly by us comprising in 1,492 units, excluding apartments being developed; ● Approximately 1,922 acres of developed and undeveloped land; and ● Fifty-two multifamily properties totaling 10,032 units owned by our 50% owned investment in VAA. Our day to day operations are managed by Pillar Income Asset Management, Inc. (“Pillar”). Their duties include, but are not limited to, locating, evaluating and recommending real estate and real estate-related investment opportunities and arranging debt and equity financing with third party lenders and investors. All of the Companies employees are Pillar employees. Our commercial properties are managed by Regis Realty Prime, LLC (“Regis”). Regis provides leasing, construction management and brokerage services. Our multifamily properties are managed by outside management companies. Pillar and Regis are considered to be related parties (See Note 12 – Related Party Transactions).
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Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included. The consolidated balance sheet at December 31, 2020 was derived from the audited consolidated financial statements at that date, but does not include all of the information and disclosures required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2020. Certain 2020 consolidated financial statement amounts have been reclassified to conform to the current presentation. We consolidate entities in which we are considered to be the primary beneficiary of a variable interest entity (“VIE”) or have a majority of the voting interest of the entity. We have determined that we are a primary beneficiary of the VIE when we have (i) the power to direct the activities of a VIE that most significantly impacts its economic performance, and (ii) the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether we are the primary beneficiary, we consider qualitative and quantitative factors, including ownership interest, management representation, ability to control decision and other contractual rights. We account for entities in which we have less than a controlling financial interest or entities where we are not deemed to be the primary beneficiary under the equity method of accounting. Accordingly, we include our share of the net earnings or losses of these entities in our results of operations. Newly Issued Accounting Standards In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The standard provides guidance, optional expedients and exceptions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The standard was effective upon issuance and can be applied through December 31, 2022. We have mortgage notes payable with interest rates that reference LIBOR, and therefore, we will adopt this standard when LIBOR is discontinued. On April 10, 2020, the FASB issued a Staff Q&A (“Q&A”) related to the application of the lease guidance in ASC 842 for the accounting impact of lease concessions related to the COVID-19 pandemic. The Q&A, allows an entity to make an election to account for lease concessions related to the effects of the COVID-19 as though enforceable rights and obligations for those concessions existed. As a result of this election, an entity will not have to analyze each lease to determine whether enforceable rights and obligations for concessions exist in the lease and can elect to apply or not apply the lease modification guidance in ASC 842, as long as the concessions do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. Our adoption of the guidance of the Q&A did not have a significant impact on our consolidated financial statements during the three months ended March 31, 2021 and 2020.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Earnings Per Share (“EPS”) have been computed by dividing net income available to common shares, adjusted for preferred dividends, by the weighted-average number of common shares outstanding during the period. Shares issued during the period shall be weighted for the portion of the period that they were outstanding. The following table details our basic and diluted earnings per common share calculation:
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Supplemental Cash Flow Information |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following presents the schedule of interest paid and other supplemental cash flow information:
The following is a schedule of noncash investing and financing activities:
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Operating Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segments | Operating SegmentsOur segments are based on the internal reporting that we review for operational decision-making purposes. We operate in two reportable segments: (i) the acquisition, development, ownership and management of multifamily apartment communities and (ii) the acquisition, ownership and management of commercial real estate properties. The services for our multifamily segment include rental of apartments and other tenant services, including parking and storage space rental. Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources. Therefore, depreciation and amortization expense is not allocated among segments. General and administrative expenses, advisory fees, interest income and interest expense are not included in segment profit as our internal reporting addresses these items on a corporate level. The following table presents our reportable segments for the three months ended March 31, 2021 and 2020:
The table below reflects the reconciliation of total profit from segments to net income for the three months ended March 31, 2021 and 2020:
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Lease Revenue |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Revenue | Lease RevenueWe lease our multifamily apartment communities and commercial properties under agreements that are classified as operating leases. Our multifamily leases generally includes minimum rents and charges for ancillary services. Our commercial property leases generally included minimum rents and recoveries for property taxes and common area maintenance. Minimum rental revenues are recognized on a straight-line basis over the terms of the related leases. The following table summarizes the components of rental revenue for the three months ended March 31, 2021 and 2020:
The following table summarizes the future rental payments to us from under non-cancelable leases. The table exclude multifamily leases, which typically have a term of one-year or less:
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Real Estate Activity |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Activity | Real Estate Activity Below is a summary of the real estate owned as of March 31, 2021 and December 31, 2020:
The gain (loss) on sale or write-down of assets, net for the three months ended March 31, 2021 and 2020 consist of the following:
(1)Includes the sale of lots related to our investment in Windmill Farms, Mercer Crossing and other land holdings. (2)Includes the gain from Overlook at Allensville Phase II transaction (See Note 9 – Investment in Unconsolidated Joint Ventures) and the recognition of gains on various multifamily properties that had been previously been deferred (See Note 14 – Deferred Income).
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Notes Receivable |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Receivable | Notes Receivable The following table summarizes our notes receivable as of March 31, 2021 and December 31, 2020:
(1)The note is convertible, at our option, into a 100% ownership interest in the underlying development property, and is collateralized by the underlying development property. (2) The borrower is determined to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. (3) Principal and interest payments on the notes from Unified Housing Foundation, Inc. (“UHF”) are funded from surplus cash flow from operations, sale or refinancing of the underlying properties and are cross collateralized to the extent that any surplus cash available from any of the properties underlying the notes.
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Investment in Unconsolidated Joint Ventures |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Unconsolidated Joint Ventures | Investment in Unconsolidated Joint Ventures On November 19, 2018, we formed the VAA joint venture with the Macquarie Group (“Macquarie”). In connection with the formation of VAA, we sold a 50% ownership interest in certain multifamily properties to Macquarie for a $236,800 cash payment, resulting in a gain on sale of assets of $154,100. We then immediately transferred our respective ownership interests in the multifamily projects ("VAA Portfolio") to VAA in exchange for a 50% voting interest and a 49% profit participation interest ("Class A interest") in VAA and note payable (“Mezzanine Loan”) in accordance with the terms of a contribution agreement (the “Contribution”). Upon completion of the Contribution, VAA owned and controlled 52 multifamily properties. VAA assumed all liabilities of those properties, including mortgage debt insured by the Department of Housing and Urban Development (“HUD”). Concurrent with the Contribution, VAA issued Class B interests with a 2% profits participation interest and no voting rights to Daniel J. Moos, our former President and Chief Executive Officer (“Class B Member”). The Class B Member serves as the Manager of VAA. Interest on the Mezzanine loan is limited to cash generated from the properties and matures concurrently with the termination of VAA. Accordingly, we account for our interest in the Mezzanine Loan as additional equity interest and includes any interest payments accrued as income from unconsolidated joint ventures. On March 30, 2021, we sold a 50% ownership interest in the special purpose entity that owned Overlook at Allensville Phase II, a 144 unit multifamily property in Sevierville, Tennessee to Macquarie bank for $2,551 resulting in gain on sale of assets of $1,417. Concurrent with the sale, we each contributed our 50% ownership interests into VAA. We also own a 20% ownership interest in a 20% interest in Gruppa Florentina, LLC ("Milano"), which operates several pizza parlors in Central and Northern California. Milano also has 23 franchised locations, including two operating, under the trade name Angelo & Vito’s Pizzerias. The following is a summary of our investment in unconsolidated joint ventures:
(1) These amounts include the assets of $1,280,899 and $1,279,197 of VAA at March 31, 2021 and December 31, 2020, respectively, and liabilities of $1,125,391 and $1,106,231 of VAA at March 31, 2021 and December 31, 2020, respectively. (2) We amortize the difference between the cost of our investments in unconsolidated joint ventures and the book value of our underlying equity into income on a straight-line basis consistent with the lives of the underlying assets. The following is a summary of our loss from investments in unconsolidated joint ventures:
(1) These amounts include revenue of $32,685 and $29,559 of VAA during the three months ended March 31, 2021 and 2020, respectively, and expenses of $37,457 and $37,453 of VAA during the three months ended March 31, 2021 and 2020, respectively.
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Mortgages and Notes Payable |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgages and Notes Payable | Mortgages and Other Notes Payable The following table summarizes our mortgages and other notes payable as of March 31, 2021 and December 31, 2020:
(1) On March 2, 2021, the loan was extended to August 28, 2022. (2) The loan bears interest at prime rate plus 0.5%March 31, 2021 and December 31, 2020. (3) On March 30, 2021, the loan was assumed by VAA in connection with our contribution of of the underlying property to the joint venture (See Note 9 – Investment in Unconsolidated Joint Ventures). (4) On March 4, 2021, the loan was extended to February 28, 2023 at an interest of 5%. Interest payable at March 31, 2021 and December 31, 2020, was $1,169 and $1,123, respectively. We capitalized interest of $858 and $585 during the years ended March 31, 2021 and 2020, respectively. There are various land mortgages, secured by the property, that are in the process of a modification or extension to the original note due to expiration of the loan. We are working with our existing lenders and new lenders to modify, extend the loans before they become due or refinancing the loans with terms that are similar to the existing agreement. As of March 31, 2021, we were in compliance with all our loan covenants.
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Bonds Payable |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds Payable | Bonds Payable We have issued three series of nonconvertible bonds ("Bonds') through SPC, which are traded on the TASE. The Bonds are denominated in New Israeli Shekels ("NIS") and provide for semiannual principal and interest payments through maturity. In connection with the Bonds, we incurred a (loss) gain on foreign currency transactions of $7,617 and $7,843 for the three months ended March 31, 2021 and 2020, respectively. The outstanding balance of our Bonds at March 31, 2021 and December 31, 2020 is as follows:
(1) The bonds are collateralized by the assets of SPC. (2) The bonds are collateralized by a trust deed in Browning Place, a 625,297 square foot office building in Farmers Branch, Texas.
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Related Party Transactions |
3 Months Ended |
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Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We engage in certain business transactions with related parties, including but not limited to asset acquisition and dispositions of real estate. Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to or in our best interest. Pillar and Regis are wholly owned by an affiliates of the MRHI, which also owns approximately 90.8% of the Company. Pillar is compensated for advisory services in accordance with an agreement. Regis receives property management fees and leasing commissions in accordance with the terms of its property-level management agreement. In addition, Regis is entitled to receive real estate brokerage commissions in accordance with the terms of a non-exclusive brokerage agreement. Rental income includes $242 and $221 for the three months ended March 31, 2021 and 2020, respectively, for office space leased to Pillar and Regis. Property operating expense includes $382 and $242 for the three months ended March 31, 2021 and 2020, respectively, for management fees on commercial properties payable to Regis. General and administrative expense includes $1,670 and $1,133 for the three months ended March 31, 2021 and 2020, respectively, for employee compensation and other reimbursable costs payable to Pillar. Advisor fees paid to Pillar were $2,436 and $2,373 for the three months ended March 31, 2021 and 2020, respectively. Notes receivable are includes amounts held by UHF and Pillar (See Note 8 – Notes Notes Receivable). UHF is determined to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. Interest income on these notes was $4,769 and $5,073 for the three months ended March 31, 2021 and 2020, respectively. Interest expense on notes payable to Pillar was $1,395 and $1,915 for the three months ended March 31, 2021 and 2020, respectively. Related party receivables represents amounts outstanding from Pillar for loans and unreimbursed fees, expenses and costs as provided above.
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Noncontrolling Interests |
3 Months Ended |
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Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling InterestsThe noncontrolling interest represents the third party ownership interest in TCI and Income Opportunity Realty Investors, Inc. ("IOR"). We owned 78.4% of TCI and 81.1% in in IOR during the three months ended March 31, 2021 and 2020. |
Deferred Income |
3 Months Ended |
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Mar. 31, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Income | Deferred Income In previous years, we sold properties to related parties where we have had continuing involvement in the form of management or financial assistance associated with the sale of the properties. Because of the continuing involvement associated with the sale, the sales criteria for the full accrual method is not met, and as such we deferred some or all of the gain recognition and accounted for the sale by applying the finance, deposit, installment or cost recovery methods, as appropriate, until the sales criteria is met. The gain on these transactions have been deferred until the properties are sold to a non-related third party. On January 29, 2021, UHF sold El Dorado, a 208 unit multifamily property in McKinney, Texas; Limestone Ranch, a 252 unit multifamily property in Lewisville, Texas; and Marquis, a 276 unit multifamily property in Lewisville, Texas to a non-related third party. As a result, we recognized a gain of $10,026 that had been previously deferred upon our sale of these properties to UHF. As of March 31, 2021 and December 31, 2020, we had deferred gain of $9,791 and $19,821, respectively.
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Income Taxes |
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Income Taxes | Income Taxes We are part of a tax sharing and compensating agreement with respect to federal income taxes with ARL. In accordance with the agreement, our expense (benefit) in each year is calculated based on the amount of losses absorbed by taxable income multiplied by the maximum statutory tax rate of 21%. The following table summarizes our income tax provision:
The 2020 and 2019 effective tax rate is driven primarily by the passing of the Tax Cuts and Jobs Act by congress on December 22, 2017. This act reduced the statutory tax rate for corporations to 21%, starting in 2019. As a result, our tax assets were remeasured to reflect the new tax rate for future years with the impact on the 2018 provision for income taxes.
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Commitments and Contingencies |
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Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Comittments and Contigencies We believes that we will generate excess cash from property operations in the next twelve months; such excess, however, might not be sufficient to discharge all of our obligations as they become due. We intend to sell income-producing assets, refinance real estate and obtain additional borrowings primarily secured by real estate to meet our liquidity requirements. We were the primary guarantor, on a $24,300 mezzanine loan between UHF and a lender. The guarantee was removed on January 29, 2021, concurrent with the repayment of the loan by UHF. We are the defendant in ongoing litigation with Mr. David Clapper and related entities (collectively, "Clapper”) regarding a multifamily property transaction that occurred in 1988. In March 2016, the court ruled in favor of Clapper and awarded them approximately $59,000. We appealed the ruling, and the appellate court remanded the case to trial that began in May 2021. We were the plaintiff in a lawsuit against Dynex Commercial, Inc. (“Dynex”) for failure to fulfill certain loan commitments. In January 2015, the court awarded us with a judgment of $24,800. We are pursuing all legal means to collect this award. However, due to the uncertainty of the collectability of the award, the receivable has been fully reserved. In February 2019, we were charged in a lawsuit brought by Paul Berger (“Berger”) that alleges that we a completed improper sales and/or transfers of property with IOR. Berger requests that we pay off various related party loans to IOR and that IOR then distribute the funds to its shareholders. We intend to vigorously defend against the allegations. In connection with the formation of VAA, ten of the properties that we contributed to the joint venture are subject to an earn-out provision that provides for a remeasurement of the value of those properties after a two-year period following the completion of construction. As of March 31, 2021, we have recorded a liability of $10,000, which we believe is the amount that will be required to settle our obligation. We have been unable to reach agreement with our joint venture partner on the remeasured value. As a result, the parties have filed for arbitration in accordance with the joint venture agreement.
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Subsequent Events |
3 Months Ended |
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Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsThe date to which events occurring after March 31, 2021, the date of the most recent balance sheet, have been evaluated for possible adjustment to the consolidated financial statements or disclosure is May 13, 2021, which is the date on which the consolidated financial statements were available to be issued. |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included. The consolidated balance sheet at December 31, 2020 was derived from the audited consolidated financial statements at that date, but does not include all of the information and disclosures required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2020. Certain 2020 consolidated financial statement amounts have been reclassified to conform to the current presentation. We consolidate entities in which we are considered to be the primary beneficiary of a variable interest entity (“VIE”) or have a majority of the voting interest of the entity. We have determined that we are a primary beneficiary of the VIE when we have (i) the power to direct the activities of a VIE that most significantly impacts its economic performance, and (ii) the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether we are the primary beneficiary, we consider qualitative and quantitative factors, including ownership interest, management representation, ability to control decision and other contractual rights. We account for entities in which we have less than a controlling financial interest or entities where we are not deemed to be the primary beneficiary under the equity method of accounting. Accordingly, we include our share of the net earnings or losses of these entities in our results of operations.
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Newly Issued Accounting Standards | Newly Issued Accounting Standards In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The standard provides guidance, optional expedients and exceptions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The standard was effective upon issuance and can be applied through December 31, 2022. We have mortgage notes payable with interest rates that reference LIBOR, and therefore, we will adopt this standard when LIBOR is discontinued. On April 10, 2020, the FASB issued a Staff Q&A (“Q&A”) related to the application of the lease guidance in ASC 842 for the accounting impact of lease concessions related to the COVID-19 pandemic. The Q&A, allows an entity to make an election to account for lease concessions related to the effects of the COVID-19 as though enforceable rights and obligations for those concessions existed. As a result of this election, an entity will not have to analyze each lease to determine whether enforceable rights and obligations for concessions exist in the lease and can elect to apply or not apply the lease modification guidance in ASC 842, as long as the concessions do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. Our adoption of the guidance of the Q&A did not have a significant impact on our consolidated financial statements during the three months ended March 31, 2021 and 2020.
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Earnings per Share (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | The following table details our basic and diluted earnings per common share calculation:
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Supplemental Cash Flow Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures | The following presents the schedule of interest paid and other supplemental cash flow information:
The following is a schedule of noncash investing and financing activities:
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Operating Segments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Profit by Reportable segment | The following table presents our reportable segments for the three months ended March 31, 2021 and 2020:
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Reconciliation of Revenue from Segments to Consolidated | The table below reflects the reconciliation of total profit from segments to net income for the three months ended March 31, 2021 and 2020:
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Lease Revenue (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Rental Revenue | The following table summarizes the components of rental revenue for the three months ended March 31, 2021 and 2020:
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Schedule of Future Rental Payments | The following table summarizes the future rental payments to us from under non-cancelable leases. The table exclude multifamily leases, which typically have a term of one-year or less:
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Real Estate Activity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the Real Estate Owned | Below is a summary of the real estate owned as of March 31, 2021 and December 31, 2020:
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Schedule Of Gain Loss On Sale Or Write-down Of Assets | The gain (loss) on sale or write-down of assets, net for the three months ended March 31, 2021 and 2020 consist of the following:
(1)Includes the sale of lots related to our investment in Windmill Farms, Mercer Crossing and other land holdings. (2)Includes the gain from Overlook at Allensville Phase II transaction (See Note 9 – Investment in Unconsolidated Joint Ventures) and the recognition of gains on various multifamily properties that had been previously been deferred (See Note 14 – Deferred Income).
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Notes Receivable (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notes Receivable | The following table summarizes our notes receivable as of March 31, 2021 and December 31, 2020:
(1)The note is convertible, at our option, into a 100% ownership interest in the underlying development property, and is collateralized by the underlying development property. (2) The borrower is determined to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. (3) Principal and interest payments on the notes from Unified Housing Foundation, Inc. (“UHF”) are funded from surplus cash flow from operations, sale or refinancing of the underlying properties and are cross collateralized to the extent that any surplus cash available from any of the properties underlying the notes.
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Investment in Unconsolidated Joint Ventures (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Investments in Unconsolidated Joint Ventures | The following is a summary of our investment in unconsolidated joint ventures:
(1) These amounts include the assets of $1,280,899 and $1,279,197 of VAA at March 31, 2021 and December 31, 2020, respectively, and liabilities of $1,125,391 and $1,106,231 of VAA at March 31, 2021 and December 31, 2020, respectively. (2) We amortize the difference between the cost of our investments in unconsolidated joint ventures and the book value of our underlying equity into income on a straight-line basis consistent with the lives of the underlying assets. The following is a summary of our loss from investments in unconsolidated joint ventures:
(1) These amounts include revenue of $32,685 and $29,559 of VAA during the three months ended March 31, 2021 and 2020, respectively, and expenses of $37,457 and $37,453 of VAA during the three months ended March 31, 2021 and 2020, respectively.
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Mortgages and Notes Payable (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The following table summarizes our mortgages and other notes payable as of March 31, 2021 and December 31, 2020:
(1) On March 2, 2021, the loan was extended to August 28, 2022. (2) The loan bears interest at prime rate plus 0.5%March 31, 2021 and December 31, 2020. (3) On March 30, 2021, the loan was assumed by VAA in connection with our contribution of of the underlying property to the joint venture (See Note 9 – Investment in Unconsolidated Joint Ventures). (4) On March 4, 2021, the loan was extended to February 28, 2023 at an interest of 5%.
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Bonds Payable (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Bonds Payable | The outstanding balance of our Bonds at March 31, 2021 and December 31, 2020 is as follows:
(1) The bonds are collateralized by the assets of SPC. (2) The bonds are collateralized by a trust deed in Browning Place, a 625,297 square foot office building in Farmers Branch, Texas
|
Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Provisions | The following table summarizes our income tax provision:
|
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Earnings Per Share [Abstract] | ||
Net income | $ 23,215 | $ 4,388 |
Net income attributable to non-controlling interest | (5,147) | (1,442) |
Net income loss attributable to the Company | $ 18,068 | $ 2,946 |
Weighted-average common shares outstanding - basic and diluted (in shares) | 16,152,043 | 15,997,076 |
EPS - attributable to common shares - basic and diluted (in dollars per share) | $ 1.12 | $ 0.18 |
Supplemental Cash Flows Information - Schedule of Noncash Investing and Financing Activities (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Supplemental Cash Flow Elements [Abstract] | ||
Property acquired in exchange for note payable | $ 0 | $ 3,350 |
Assets contributed to joint venture | 18,608 | 0 |
Liabilities assumed by joint venture | $ 17,592 | $ 0 |
Operating Segments (Details) |
3 Months Ended |
---|---|
Mar. 31, 2021
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Operating Segments - Profit by Reportable Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Segment Reporting Information [Line Items] | ||
Revenues | $ 11,828 | $ 13,130 |
Total profit from segments | (3,002) | (3,238) |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Total profit from segments | 4,529 | 5,133 |
Operating segments | Multifamily Segment | ||
Segment Reporting Information [Line Items] | ||
Revenues | 3,836 | 3,556 |
Operating expenses | (2,123) | (1,945) |
Profit from segment | 1,713 | 1,611 |
Operating segments | Commercial Segment | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,525 | 7,886 |
Operating expenses | (3,709) | (4,364) |
Profit from segment | $ 2,816 | $ 3,522 |
Lease Revenue - Schedule of Rental Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Leases [Abstract] | ||
Fixed component | $ 9,863 | $ 10,812 |
Variable component | 498 | 630 |
Total rental revenue | $ 10,361 | $ 11,442 |
Lease Revenue - Schedule of Future Rental Payments (Details) $ in Thousands |
Mar. 31, 2021
USD ($)
|
---|---|
Leases [Abstract] | |
2021 | $ 17,909 |
2022 | 21,363 |
2023 | 16,003 |
2024 | 10,889 |
2025 | 6,938 |
Thereafter | 25,566 |
Total | $ 98,668 |
Real Estate Activity - Real Estate Investment Components (Details) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Real Estate [Abstract] | ||
Land | $ 48,357 | $ 50,759 |
Building and improvements | 281,115 | 297,644 |
Tenant improvements | 30,935 | 30,935 |
Construction in progress | 73,656 | 77,891 |
Total cost | 434,063 | 457,229 |
Less accumulated deprecation | (84,603) | (82,418) |
Total real estate, net | 349,460 | 374,811 |
Property held for sale | 1,660 | 2,572 |
Total real estate | $ 351,120 | $ 377,383 |
Real Estate Activity - Schedule of Gain (Loss) on Sale or Write-down of Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Gain on sale or write-down of assets, net | $ 17,398 | $ 4,138 |
Land | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Gain on sale or write-down of assets, net | 5,957 | 4,138 |
Multifamily | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Gain on sale or write-down of assets, net | $ 11,441 | $ 0 |
Mortgages and Other Notes Payable - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2019 |
Dec. 31, 2020 |
|
Debt Instrument [Line Items] | |||
Interest payable | $ 3,385 | $ 7,639 | |
Interest costs capitalized | 858 | $ 585 | |
Mortgages and other notes payable | |||
Debt Instrument [Line Items] | |||
Interest payable | $ 1,169 | $ 1,123 |
Bonds Payable - Narrative (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021
USD ($)
bond
|
Mar. 31, 2020
USD ($)
|
|
Debt Instrument [Line Items] | ||
Number issued | bond | 3 | |
Gain on foreign currency transaction | $ 7,617 | $ 7,843 |
Nonconvertible Bonds | ||
Debt Instrument [Line Items] | ||
Gain on foreign currency transaction | $ 7,617 | $ 7,843 |
Bonds Payable - Schedule of Long-term Debt Instruments (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021
USD ($)
ft²
|
Dec. 31, 2020
USD ($)
|
|
Debt Instrument [Line Items] | ||
Bonds payable | $ 208,021 | $ 237,888 |
Browning Place | ||
Debt Instrument [Line Items] | ||
Land collateral (acres) | ft² | 625,297 | |
Nonconvertible Bonds | ||
Debt Instrument [Line Items] | ||
Bonds | $ 215,620 | 245,988 |
Less unamortized deferred issuance costs | (7,599) | (8,100) |
Bonds payable | 208,021 | 237,888 |
Series A Bonds | ||
Debt Instrument [Line Items] | ||
Bonds | $ 76,448 | 95,133 |
Interest Rate | 7.30% | |
Series B Bonds | ||
Debt Instrument [Line Items] | ||
Bonds | $ 56,688 | 65,318 |
Interest Rate | 6.80% | |
Series C Bonds | ||
Debt Instrument [Line Items] | ||
Bonds | $ 82,484 | $ 85,537 |
Interest Rate | 4.65% |
Noncontrolling Interest (Details) |
Mar. 31, 2021 |
Mar. 31, 2020 |
---|---|---|
TCI | ||
Noncontrolling Interest [Line Items] | ||
Ownership interest | 78.40% | |
IOR | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage by noncontrolling owners | 81.10% |
Deferred Income (Details) $ in Thousands |
Jan. 29, 2021
USD ($)
property
|
Mar. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
---|---|---|---|
Deferred Revenue Arrangement [Line Items] | |||
Deferred revenue | $ | $ 9,791 | $ 19,821 | |
UHF | |||
Deferred Revenue Arrangement [Line Items] | |||
Gain on sale | $ | $ 10,026 | ||
UHF | Multifamily | El Dorado | |||
Deferred Revenue Arrangement [Line Items] | |||
Number of real estate properties | 208 | ||
UHF | Multifamily | Limestone Ranch | |||
Deferred Revenue Arrangement [Line Items] | |||
Number of real estate properties | 252 | ||
UHF | Multifamily | Marquis | |||
Deferred Revenue Arrangement [Line Items] | |||
Number of real estate properties | 276 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Income Tax Disclosure [Abstract] | ||
Current | $ 40 | $ 247 |
Deferred | 0 | 0 |
Income tax provision | $ 40 | $ 247 |
Commitments and Contingencies (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Jan. 30, 2015
USD ($)
|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2021
USD ($)
segment
|
Jan. 29, 2021
USD ($)
|
|
Clapper | ||||
Loss Contingencies [Line Items] | ||||
Award settled to other party | $ 59,000 | |||
UHF | Payment Guarantee | ||||
Loss Contingencies [Line Items] | ||||
Loan guarantee amount | $ 24,300 | |||
Dynex | Judgement | ||||
Loss Contingencies [Line Items] | ||||
Settlement award | $ 24,800 | |||
VAA | VAA | ||||
Loss Contingencies [Line Items] | ||||
Contributed properties with earn-out provisions | segment | 10 | |||
Earn-out Provision, Term | 2 years | |||
Liability | $ 10,000 |
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