FORM |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
, | ||||||||||||||
, | ||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated Filer | ☐ | |||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | |||||||||
Emerging Growth Company |
Page | |||||||||||
June 30, 2022 | December 31, 2021 | |||||||||||||
(Unaudited) | ||||||||||||||
ASSETS | ||||||||||||||
Real estate investments: | ||||||||||||||
Income producing property | $ | $ | ||||||||||||
Held for development | ||||||||||||||
Construction in progress | ||||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Net real estate investments | ||||||||||||||
Real estate investments held for sale | ||||||||||||||
Cash and cash equivalents | ||||||||||||||
Restricted cash | ||||||||||||||
Accounts receivable, net | ||||||||||||||
Notes receivable, net | ||||||||||||||
Construction receivables, including retentions, net | ||||||||||||||
Construction contract costs and estimated earnings in excess of billings | ||||||||||||||
Equity method investments | ||||||||||||||
Operating lease right-of-use assets | ||||||||||||||
Finance lease right-of-use assets | ||||||||||||||
Acquired lease intangible assets | ||||||||||||||
Other assets | ||||||||||||||
Total Assets | $ | $ | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Indebtedness, net | $ | $ | ||||||||||||
Liabilities related to assets held for sale | ||||||||||||||
Accounts payable and accrued liabilities | ||||||||||||||
Construction payables, including retentions | ||||||||||||||
Billings in excess of construction contract costs and estimated earnings | ||||||||||||||
Operating lease liabilities | ||||||||||||||
Finance lease liabilities | ||||||||||||||
Other liabilities | ||||||||||||||
Total Liabilities | ||||||||||||||
Stockholders’ equity: | ||||||||||||||
Preferred stock, $ | ||||||||||||||
Common stock, $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Distributions in excess of earnings | ( | ( | ||||||||||||
Accumulated other comprehensive gain (loss) | ( | |||||||||||||
Total stockholders’ equity | ||||||||||||||
Noncontrolling interests in investment entities | ||||||||||||||
Noncontrolling interests in Operating Partnership | ||||||||||||||
Total Equity | ||||||||||||||
Total Liabilities and Equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Rental revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Total revenues | ||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Rental expenses | ||||||||||||||||||||||||||
Real estate taxes | ||||||||||||||||||||||||||
General contracting and real estate services expenses | ||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||
Amortization of right-of-use assets - finance leases | ||||||||||||||||||||||||||
General and administrative expenses | ||||||||||||||||||||||||||
Acquisition, development and other pursuit costs | ||||||||||||||||||||||||||
Impairment charges | ||||||||||||||||||||||||||
Total expenses | ||||||||||||||||||||||||||
Gain on real estate dispositions, net | ||||||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Loss on extinguishment of debt | ( | ( | ||||||||||||||||||||||||
Change in fair value of derivatives and other | ||||||||||||||||||||||||||
Unrealized credit loss provision | ( | ( | ( | ( | ||||||||||||||||||||||
Other income (expense), net | ||||||||||||||||||||||||||
Income before taxes | ||||||||||||||||||||||||||
Income tax benefit | ||||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interests: | ||||||||||||||||||||||||||
Investment entities | ( | ( | ||||||||||||||||||||||||
Operating Partnership | ( | ( | ( | ( | ||||||||||||||||||||||
Net income attributable to Armada Hoffler Properties, Inc. | ||||||||||||||||||||||||||
Preferred stock dividends | ( | ( | ( | ( | ||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Net income attributable to common stockholders per share (basic and diluted) | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted-average common shares outstanding (basic and diluted) | ||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Unrealized cash flow hedge gains (losses) | ( | |||||||||||||||||||||||||
Realized cash flow hedge losses reclassified to net income | ||||||||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests: | ||||||||||||||||||||||||||
Investment entities | ( | ( | ||||||||||||||||||||||||
Operating Partnership | ( | ( | ( | ( | ||||||||||||||||||||||
Comprehensive income attributable to Armada Hoffler Properties, Inc. | $ | $ | $ | $ |
Preferred stock | Common stock | Additional paid-in capital | Distributions in excess of earnings | Accumulated other comprehensive loss | Total stockholders' equity | Noncontrolling interests in investment entities | Noncontrolling interests in Operating Partnership | Total equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized cash flow hedge gains | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Realized cash flow hedge losses reclassified to net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net proceeds from issuance of common stock | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest in acquired real estate entity | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards, net | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions of noncontrolling interests | — | — | ( | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Redemption of operating partnership units | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions declared on common shares and units ($ | — | — | — | ( | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized cash flow hedge losses | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized cash flow hedge losses reclassified to net income | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net proceeds from issuance of common stock | — | — | ( | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards, net | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions declared on common shares and units ($ | — | — | — | ( | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | Common stock | Additional paid-in capital | Distributions in excess of earnings | Accumulated other comprehensive loss | Total stockholders' equity | Noncontrolling interests in investment entities | Noncontrolling interests in Operating Partnership | Total equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized cash flow hedge gains | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Realized cash flow hedge losses reclassified to net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net proceeds from issuance of common stock | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards, net | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of operating partnership units | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions declared on common shares and units ($ | — | — | — | ( | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized cash flow hedge losses | — | — | — | — | ( | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Realized cash flow hedge losses reclassified to net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net proceeds from issuance of common stock | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards, net | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of noncontrolling interest in real estate entity | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions declared on common shares and units ($ | — | — | — | ( | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation of buildings and tenant improvements | ||||||||||||||
Amortization of leasing costs, in-place lease intangibles and below market ground rents - operating leases | ||||||||||||||
Accrued straight-line rental revenue | ( | ( | ||||||||||||
Amortization of leasing incentives and above or below-market rents | ( | ( | ||||||||||||
Amortization of right-of-use assets - finance leases | ||||||||||||||
Accrued straight-line ground rent expense | ||||||||||||||
Unrealized credit loss provision | ||||||||||||||
Adjustment for uncollectable lease accounts | ||||||||||||||
Noncash stock compensation | ||||||||||||||
Impairment charges | ||||||||||||||
Noncash interest expense | ||||||||||||||
Noncash loss on extinguishment of debt | ||||||||||||||
Gain on real estate dispositions, net | ( | ( | ||||||||||||
Change in fair value of derivatives and other | ( | ( | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Property assets | ( | ( | ||||||||||||
Property liabilities | ( | ( | ||||||||||||
Construction assets | ( | |||||||||||||
Construction liabilities | ( | |||||||||||||
Interest receivable | ( | |||||||||||||
Net cash provided by operating activities | ||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||
Development of real estate investments | ( | ( | ||||||||||||
Tenant and building improvements | ( | ( | ||||||||||||
Acquisitions of real estate investments, net of cash received | ( | ( | ||||||||||||
Dispositions of real estate investments, net of selling costs | ||||||||||||||
Notes receivable issuances | ( | ( | ||||||||||||
Notes receivable paydowns | ||||||||||||||
Leasing costs | ( | ( | ||||||||||||
Leasing incentives | ( | |||||||||||||
Contributions to equity method investments | ( | ( | ||||||||||||
Net cash used for investing activities | ( | ( | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||
Proceeds from issuance of common stock, net | ||||||||||||||
Common shares tendered for tax withholding | ( | ( | ||||||||||||
Debt issuances, credit facility and construction loan borrowings | ||||||||||||||
Debt and credit facility repayments, including principal amortization | ( | ( | ||||||||||||
Debt issuance costs | ( | ( | ||||||||||||
Acquisition of NCI in consolidated RE investments | ( | ( | ||||||||||||
Distributions to noncontrolling interests | ( | |||||||||||||
Contributions from noncontrolling interests | ||||||||||||||
Dividends and distributions | ( | ( | ||||||||||||
Net cash provided by (used for) financing activities | ( | |||||||||||||
Net increase 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 (1) | $ | $ | ||||||||||||
Six Months Ended June 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Supplemental Disclosures (noncash transactions): | ||||||||||||||
Increase in dividends and distributions payable | $ | $ | ||||||||||||
Increase (decrease) in accrued capital improvements and development costs | ( | |||||||||||||
Operating Partnership units redeemed for common shares | ||||||||||||||
Debt assumed at fair value in conjunction with real estate purchases | ||||||||||||||
Noncontrolling interest in acquired real estate entity | ||||||||||||||
Recognition of finance lease right-of-use assets | ||||||||||||||
Recognition of finance lease liabilities | ||||||||||||||
June 30, 2022 | June 30, 2021 | |||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash (a) | ||||||||||||||
Cash, cash equivalents, and restricted cash | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Office real estate | ||||||||||||||||||||||||||
Rental revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Rental expenses | ||||||||||||||||||||||||||
Real estate taxes | ||||||||||||||||||||||||||
Segment net operating income | ||||||||||||||||||||||||||
Retail real estate | ||||||||||||||||||||||||||
Rental revenues | ||||||||||||||||||||||||||
Rental expenses | ||||||||||||||||||||||||||
Real estate taxes | ||||||||||||||||||||||||||
Segment net operating income | ||||||||||||||||||||||||||
Multifamily residential real estate | ||||||||||||||||||||||||||
Rental revenues | ||||||||||||||||||||||||||
Rental expenses | ||||||||||||||||||||||||||
Real estate taxes | ||||||||||||||||||||||||||
Segment net operating income | ||||||||||||||||||||||||||
General contracting and real estate services | ||||||||||||||||||||||||||
Segment revenues | ||||||||||||||||||||||||||
Segment expenses | ||||||||||||||||||||||||||
Segment gross profit | ||||||||||||||||||||||||||
Net operating income | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net operating income | $ | $ | $ | $ | ||||||||||||||||||||||
Depreciation and amortization | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization of right-of-use assets - finance leases | ( | ( | ( | ( | ||||||||||||||||||||||
General and administrative expenses | ( | ( | ( | ( | ||||||||||||||||||||||
Acquisition, development and other pursuit costs | ( | ( | ( | ( | ||||||||||||||||||||||
Impairment charges | ( | ( | ( | ( | ||||||||||||||||||||||
Gain on real estate dispositions, net | ||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Loss on extinguishment of debt | ( | ( | ||||||||||||||||||||||||
Change in fair value of derivatives and other | ||||||||||||||||||||||||||
Unrealized credit loss provision | ( | ( | ( | ( | ||||||||||||||||||||||
Other income (expense), net | ||||||||||||||||||||||||||
Income tax benefit | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Base rent and tenant charges | $ | $ | $ | $ | ||||||||||||||||||||||
Accrued straight-line rental adjustment | ||||||||||||||||||||||||||
Lease incentive amortization | ( | ( | ( | ( | ||||||||||||||||||||||
Above/below market lease amortization | ||||||||||||||||||||||||||
Total rental revenue | $ | $ | $ | $ |
Exelon Building | ||||||||
Land | $ | |||||||
Site improvements | ||||||||
Building | ||||||||
In-place leases | ||||||||
Above-market leases | ||||||||
Net assets acquired | $ |
Outstanding loan amount (a) | Interest compounding | |||||||||||||||||||||||||||||||
Development Project | June 30, 2022 | December 31, 2021 | Maximum loan commitment | Interest rate | ||||||||||||||||||||||||||||
City Park 2 | $ | $ | $ | % | Annually | |||||||||||||||||||||||||||
Interlock Commercial | (b) | % | None | |||||||||||||||||||||||||||||
Nexton Multifamily | % | Annually | ||||||||||||||||||||||||||||||
Total mezzanine & preferred equity | $ | |||||||||||||||||||||||||||||||
Exelon note receivable | ||||||||||||||||||||||||||||||||
Other notes receivable | ||||||||||||||||||||||||||||||||
Notes receivable guarantee premium | ||||||||||||||||||||||||||||||||
Allowance for credit losses | ( | (c) | ( | |||||||||||||||||||||||||||||
Total notes receivable | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
Development Project | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
City Park 2 | $ | (a) | $ | $ | (a) | $ | |||||||||||||||||||||||
Interlock Commercial | (a) | (a) | (a) | (a) | |||||||||||||||||||||||||
Nexton Multifamily | |||||||||||||||||||||||||||||
Solis Apartments at Interlock | (b) | (b) | |||||||||||||||||||||||||||
Total mezzanine | |||||||||||||||||||||||||||||
Other interest income | |||||||||||||||||||||||||||||
Total interest income | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | ||||||||||||||||||||||
Unrealized credit loss provision (release) | ||||||||||||||||||||||||||
Extinguishment due to acquisition | ( | |||||||||||||||||||||||||
Ending balance (a) | $ | $ | $ | $ |
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |||||||||||||||||||||||||
Construction contract costs and estimated earnings in excess of billings | Billings in excess of construction contract costs and estimated earnings | Construction contract costs and estimated earnings in excess of billings | Billings in excess of construction contract costs and estimated earnings | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | ||||||||||||||||||||||
Revenue recognized that was included in the balance at the beginning of the period | — | ( | — | ( | ||||||||||||||||||||||
Increases due to new billings, excluding amounts recognized as revenue during the period | — | — | ||||||||||||||||||||||||
Transferred to receivables | ( | — | ( | — | ||||||||||||||||||||||
Construction contract costs and estimated earnings not billed during the period | — | — | ||||||||||||||||||||||||
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion | ( | ( | ||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
Costs incurred on uncompleted construction contracts | $ | $ | |||||||||
Estimated earnings | |||||||||||
Billings | ( | ( | |||||||||
Net position | $ | ( | $ | ( | |||||||
Construction contract costs and estimated earnings in excess of billings | $ | $ | |||||||||
Billings in excess of construction contract costs and estimated earnings | ( | ( | |||||||||
Net position | $ | ( | $ | ( |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Beginning backlog | $ | $ | $ | $ | ||||||||||||||||||||||
New contracts/change orders | ||||||||||||||||||||||||||
Work performed | ( | ( | ( | ( | ||||||||||||||||||||||
Ending backlog | $ | $ | $ | $ |
Effective Date | Maturity Date | Notional Amount | Strike Rate | Premium Paid | ||||||||||||||||||||||
7/1/2020 | 7/1/2023 | $ | (a) | $ | ||||||||||||||||||||||
11/1/2020 | 11/1/2023 | (a) | ||||||||||||||||||||||||
2/2/2021 | 2/1/2023 | |||||||||||||||||||||||||
3/4/2021 | 4/1/2023 | |||||||||||||||||||||||||
5/5/2021 | 5/1/2023 | |||||||||||||||||||||||||
5/5/2021 | 5/1/2023 | |||||||||||||||||||||||||
6/16/2021 | 7/1/2023 | |||||||||||||||||||||||||
1/11/2022 | 2/1/2024 | |||||||||||||||||||||||||
4/7/2022 | 2/1/2024 | (a) | (b) | |||||||||||||||||||||||
9/1/2022 | 9/1/2024 | (a) | (b)(c) | |||||||||||||||||||||||
Total | $ | $ |
Related Debt | Notional Amount | Index | Swap Fixed Rate | Debt effective rate | Effective Date | Expiration Date | |||||||||||||||||||||||||||||||||||
Senior unsecured term loan | $ | (a) | 1-month LIBOR | % | % | 4/1/2019 | 10/26/2022 | ||||||||||||||||||||||||||||||||||
Senior unsecured term loan | 1-month LIBOR | % | % | 5/1/2018 | 5/1/2023 | ||||||||||||||||||||||||||||||||||||
249 Central Park Retail, South Retail, and Fountain Plaza Retail | (a) | 1-month LIBOR | % | % | 4/1/2019 | 8/10/2023 | |||||||||||||||||||||||||||||||||||
Senior unsecured term loan | (a) | 1-month LIBOR | % | % | 10/12/2018 | 10/12/2023 | |||||||||||||||||||||||||||||||||||
Senior unsecured term loan | (a) | 1-month LIBOR | % | % | 4/1/2020 | 4/1/2024 | |||||||||||||||||||||||||||||||||||
Senior unsecured term loan | (a) | 1-month LIBOR | % | % | 4/1/2020 | 4/1/2024 | |||||||||||||||||||||||||||||||||||
Senior unsecured term loan | (a) | 1-month LIBOR | % | % | 4/1/2020 | 4/1/2024 | |||||||||||||||||||||||||||||||||||
Thames Street Wharf | (a) | 1-month BSBY | % | % | 9/30/2021 | 9/30/2026 | |||||||||||||||||||||||||||||||||||
Total | $ | ||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||||||||||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||||||||||||||||||||||||
Derivatives not designated as accounting hedges | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | $ | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||||||
Interest rate caps | ||||||||||||||||||||||||||||||||||||||
Total derivatives not designated as accounting hedges | ( | |||||||||||||||||||||||||||||||||||||
Derivatives designated as accounting hedges | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | ( | |||||||||||||||||||||||||||||||||||||
Interest rate caps | ||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | $ | $ | $ | $ | $ | ( |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Interest rate swaps | $ | $ | ( | $ | $ | |||||||||||||||||||||
Interest rate caps | ( | |||||||||||||||||||||||||
Total change in fair value of interest rate derivatives | $ | $ | ( | $ | $ | |||||||||||||||||||||
Comprehensive income statement presentation: | ||||||||||||||||||||||||||
Change in fair value of derivatives and other | $ | $ | $ | $ | ||||||||||||||||||||||
Unrealized cash flow hedge gains (losses) | ( | |||||||||||||||||||||||||
Total change in fair value of interest rate derivatives | $ | $ | ( | $ | $ |
Equity type | Declaration Date | Record Date | Payment Date | Dividends per Share/Unit | Aggregate Dividends/Distributions on Stock and Units (in thousands) | |||||||||||||||||||||||||||
Common Stock/Class A Units | 10/25/2021 | 12/29/2021 | 01/06/2022 | $ | $ | |||||||||||||||||||||||||||
Common Stock/Class A Units | 02/23/2022 | 03/30/2022 | 04/07/2022 | |||||||||||||||||||||||||||||
Common Stock/Class A Units | 05/12/2022 | 06/29/2022 | 07/07/2022 | |||||||||||||||||||||||||||||
Series A Preferred Stock | 10/25/2021 | 01/03/2022 | 01/14/2022 | |||||||||||||||||||||||||||||
Series A Preferred Stock | 02/23/2022 | 04/01/2022 | 04/15/2022 | |||||||||||||||||||||||||||||
Series A Preferred Stock | 05/12/2022 | 07/01/2022 | 07/15/2022 |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||
Indebtedness, net (a) | $ | $ | $ | $ | ||||||||||||||||||||||
Notes receivable, net | ||||||||||||||||||||||||||
Interest rate swap liabilities | ||||||||||||||||||||||||||
Interest rate swap and cap assets |
Development project | Payment guarantee amount | Guarantee liability | ||||||||||||
Interlock Commercial | $ | $ | ||||||||||||
Harbor Point Parcel 4 (a) | ||||||||||||||
Total | $ | $ |
Property | Segment | Location | Ownership Interest | ||||||||||||||||||||
4525 Main Street | Office | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
Armada Hoffler Tower | Office | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
Brooks Crossing Office | Office | Newport News, Virginia | 100 | % | |||||||||||||||||||
Exelon Office | Office | Baltimore, Maryland** | 79 | % | (1) | ||||||||||||||||||
One City Center | Office | Durham, North Carolina | 100 | % | |||||||||||||||||||
One Columbus | Office | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
Thames Street Wharf | Office | Baltimore, Maryland** | 100 | % | |||||||||||||||||||
Two Columbus | Office | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
249 Central Park Retail | Retail | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
Apex Entertainment | Retail | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
Broad Creek Shopping Center | Retail | Norfolk, Virginia | 100 | % | |||||||||||||||||||
Broadmoor Plaza | Retail | South Bend, Indiana | 100 | % | |||||||||||||||||||
Brooks Crossing Retail | Retail | Newport News, Virginia | 65 | % | (2) | ||||||||||||||||||
Columbus Village | Retail | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
Columbus Village II | Retail | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
Commerce Street Retail | Retail | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
Delray Beach Plaza | Retail | Delray Beach, Florida | 100 | % | |||||||||||||||||||
Dimmock Square | Retail | Colonial Heights, Virginia | 100 | % | |||||||||||||||||||
Fountain Plaza Retail | Retail | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
Greenbrier Square | Retail | Chesapeake, Virginia | 100 | % | |||||||||||||||||||
Greentree Shopping Center | Retail | Chesapeake, Virginia | 100 | % |
Property | Segment | Location | Ownership Interest | ||||||||||||||||||||
Hanbury Village | Retail | Chesapeake, Virginia | 100 | % | |||||||||||||||||||
Harrisonburg Regal | Retail | Harrisonburg, Virginia | 100 | % | |||||||||||||||||||
Lexington Square | Retail | Lexington, South Carolina | 100 | % | |||||||||||||||||||
Market at Mill Creek | Retail | Mount Pleasant, South Carolina | 70 | % | (2) | ||||||||||||||||||
Marketplace at Hilltop | Retail | Virginia Beach, Virginia | 100 | % | |||||||||||||||||||
Nexton Square | Retail | Summerville, South Carolina | 100 | % | |||||||||||||||||||
North Hampton Market | Retail | Taylors, South Carolina | 100 | % | |||||||||||||||||||
North Pointe Center | Retail | Durham, North Carolina | 100 | % | |||||||||||||||||||
Overlook Village | Retail | Asheville, North Carolina | 100 | % | |||||||||||||||||||
Parkway Centre | Retail | Moultrie, Georgia | 100 | % | |||||||||||||||||||
Parkway Marketplace | Retail | Virginia Beach, Virginia | 100 | % | |||||||||||||||||||
Patterson Place | Retail | Durham, North Carolina | 100 | % | |||||||||||||||||||
Perry Hall Marketplace | Retail | Perry Hall, Maryland | 100 | % | |||||||||||||||||||
Premier Retail | Retail | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
Providence Plaza | Retail | Charlotte, North Carolina | 100 | % | |||||||||||||||||||
Red Mill Commons | Retail | Virginia Beach, Virginia | 100 | % | |||||||||||||||||||
Sandbridge Commons | Retail | Virginia Beach, Virginia | 100 | % | (3) | ||||||||||||||||||
South Retail | Retail | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
South Square | Retail | Durham, North Carolina | 100 | % | |||||||||||||||||||
Southgate Square | Retail | Colonial Heights, Virginia | 100 | % | |||||||||||||||||||
Southshore Shops | Retail | Chesterfield, Virginia | 100 | % | |||||||||||||||||||
Studio 56 Retail | Retail | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
Tyre Neck Harris Teeter | Retail | Portsmouth, Virginia | 100 | % | |||||||||||||||||||
Wendover Village | Retail | Greensboro, North Carolina | 100 | % | |||||||||||||||||||
1305 Dock Street | Multifamily | Baltimore, Maryland** | 79 | % | (1) | ||||||||||||||||||
1405 Point | Multifamily | Baltimore, Maryland** | 100 | % | |||||||||||||||||||
Edison Apartments | Multifamily | Richmond, Virginia | 100 | % | |||||||||||||||||||
Encore Apartments | Multifamily | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
Greenside Apartments | Multifamily | Charlotte, North Carolina | 100 | % | |||||||||||||||||||
Liberty Apartments | Multifamily | Newport News, Virginia | 100 | % | |||||||||||||||||||
Premier Apartments | Multifamily | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
Smith's Landing | Multifamily | Blacksburg, Virginia | 100 | % | |||||||||||||||||||
The Cosmopolitan | Multifamily | Virginia Beach, Virginia* | 100 | % | |||||||||||||||||||
The Residences at Annapolis Junction | Multifamily | Annapolis Junction, Maryland | 95 | % | (2)(4) | ||||||||||||||||||
Property | Segment | Location | Ownership Interest | ||||||||||||||||||||
Wills Wharf | Office | Baltimore, Maryland** | 100 | % | |||||||||||||||||||
Chronicle Mill | Multifamily | Belmont, North Carolina | 85 | % | (1) | ||||||||||||||||||
Gainesville Apartments | Multifamily | Gainesville, Georgia | 95 | % | (2) | ||||||||||||||||||
Southern Post | Mixed-use | Roswell, Georgia | 100 | % | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
Rental revenues | $ | 18,314 | $ | 11,756 | $ | 6,558 | $ | 35,337 | $ | 23,391 | $ | 11,946 | ||||||||||||||||||||||||||
Property expenses | 6,635 | 4,351 | 2,284 | 12,279 | 8,584 | 3,695 | ||||||||||||||||||||||||||||||||
Segment NOI | $ | 11,679 | $ | 7,405 | $ | 4,274 | $ | 23,058 | $ | 14,807 | $ | 8,251 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
Rental revenues | $ | 10,371 | $ | 10,290 | $ | 81 | $ | 20,546 | $ | 20,500 | $ | 46 | ||||||||||||||||||||||||||
Property expenses | 3,697 | 3,527 | 170 | 7,259 | 7,011 | 248 | ||||||||||||||||||||||||||||||||
Same Store NOI | $ | 6,674 | $ | 6,763 | $ | (89) | $ | 13,287 | $ | 13,489 | $ | (202) | ||||||||||||||||||||||||||
Non-Same Store NOI | 5,005 | 642 | 4,363 | 9,771 | 1,318 | 8,453 | ||||||||||||||||||||||||||||||||
Segment NOI | $ | 11,679 | $ | 7,405 | $ | 4,274 | $ | 23,058 | $ | 14,807 | $ | 8,251 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
Rental revenues | $ | 21,544 | $ | 19,204 | $ | 2,340 | $ | 42,974 | $ | 37,459 | $ | 5,515 | ||||||||||||||||||||||||||
Property expenses | 5,604 | 5,193 | 411 | 11,343 | 10,056 | 1,287 | ||||||||||||||||||||||||||||||||
Segment NOI | $ | 15,940 | $ | 14,011 | $ | 1,929 | $ | 31,631 | $ | 27,403 | $ | 4,228 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
Rental revenues | $ | 19,736 | $ | 18,686 | $ | 1,050 | $ | 36,422 | $ | 34,063 | $ | 2,359 | ||||||||||||||||||||||||||
Property expenses | 4,983 | 4,857 | 126 | 9,241 | 8,737 | 504 | ||||||||||||||||||||||||||||||||
Same Store NOI | $ | 14,753 | $ | 13,829 | $ | 924 | $ | 27,181 | $ | 25,326 | $ | 1,855 | ||||||||||||||||||||||||||
Non-Same Store NOI | 1,187 | 182 | 1,005 | 4,450 | 2,077 | 2,373 | ||||||||||||||||||||||||||||||||
Segment NOI | $ | 15,940 | $ | 14,011 | $ | 1,929 | $ | 31,631 | $ | 27,403 | $ | 4,228 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
Rental revenues | $ | 15,366 | $ | 16,418 | $ | (1,052) | $ | 31,548 | $ | 32,269 | $ | (721) | ||||||||||||||||||||||||||
Property expenses | 6,283 | 7,213 | (930) | 12,973 | 14,255 | (1,282) | ||||||||||||||||||||||||||||||||
Segment NOI | $ | 9,083 | $ | 9,205 | $ | (122) | $ | 18,575 | $ | 18,014 | $ | 561 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
Rental revenues | $ | 10,958 | $ | 10,131 | $ | 827 | $ | 21,679 | $ | 19,775 | $ | 1,904 | ||||||||||||||||||||||||||
Property expenses | 4,085 | 4,022 | 63 | 8,107 | 7,946 | 161 | ||||||||||||||||||||||||||||||||
Same Store NOI | $ | 6,873 | $ | 6,109 | $ | 764 | $ | 13,572 | $ | 11,829 | $ | 1,743 | ||||||||||||||||||||||||||
Non-Same Store NOI | 2,210 | 3,096 | (886) | 5,003 | 6,185 | (1,182) | ||||||||||||||||||||||||||||||||
Segment NOI | $ | 9,083 | $ | 9,205 | $ | (122) | $ | 18,575 | $ | 18,014 | $ | 561 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
Segment revenues | $ | 45,273 | $ | 18,408 | $ | 26,865 | $ | 69,923 | $ | 53,971 | $ | 15,952 | ||||||||||||||||||||||||||
Segment expenses | 43,418 | 18,131 | 25,287 | 67,239 | 52,406 | 14,833 | ||||||||||||||||||||||||||||||||
Segment gross profit | $ | 1,855 | $ | 277 | $ | 1,578 | $ | 2,684 | $ | 1,565 | $ | 1,119 | ||||||||||||||||||||||||||
Operating margin | 4.1 | % | 1.5 | % | 2.6 | % | 3.8 | % | 2.9 | % | 0.9 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Beginning backlog | $ | 419,439 | $ | 38,838 | $ | 215,518 | $ | 71,258 | |||||||||||||||
New contracts/change orders | 167,143 | 50,278 | 395,746 | 53,402 | |||||||||||||||||||
Work performed | (45,368) | (18,897) | (70,050) | (54,441) | |||||||||||||||||||
Ending backlog | $ | 541,214 | $ | 70,219 | $ | 541,214 | $ | 70,219 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||
Rental revenues | $ | 55,224 | $ | 47,378 | $ | 7,846 | $ | 109,859 | $ | 93,119 | $ | 16,740 | ||||||||||||||||||||||||||
General contracting and real estate services revenues | 45,273 | 18,408 | 26,865 | 69,923 | 53,971 | 15,952 | ||||||||||||||||||||||||||||||||
Total revenues | 100,497 | 65,786 | 34,711 | 179,782 | 147,090 | 32,692 | ||||||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||
Rental expenses | 12,685 | 11,292 | 1,393 | 25,354 | 22,124 | 3,230 | ||||||||||||||||||||||||||||||||
Real estate taxes | 5,837 | 5,465 | 372 | 11,241 | 10,771 | 470 | ||||||||||||||||||||||||||||||||
General contracting and real estate services expenses | 43,418 | 18,131 | 25,287 | 67,239 | 52,406 | 14,833 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 18,781 | 17,285 | 1,496 | 37,338 | 35,351 | 1,987 | ||||||||||||||||||||||||||||||||
Amortization of right-of-use assets - finance leases | 277 | 278 | (1) | 555 | 467 | 88 | ||||||||||||||||||||||||||||||||
General and administrative expenses | 3,617 | 3,487 | 130 | 8,325 | 7,508 | 817 | ||||||||||||||||||||||||||||||||
Acquisition, development and other pursuit costs | 26 | 32 | (6) | 37 | 103 | (66) | ||||||||||||||||||||||||||||||||
Impairment charges | 286 | 83 | 203 | 333 | 3,122 | (2,789) | ||||||||||||||||||||||||||||||||
Total expenses | 84,927 | 56,053 | 28,874 | 150,422 | 131,852 | 18,570 | ||||||||||||||||||||||||||||||||
Gain on real estate dispositions, net | 19,493 | — | 19,493 | 19,493 | 3,717 | 15,776 | ||||||||||||||||||||||||||||||||
Operating income | 35,063 | 9,733 | 25,330 | 48,853 | 18,955 | 29,898 | ||||||||||||||||||||||||||||||||
Interest income | 3,352 | 6,746 | (3,394) | 6,920 | 10,862 | (3,942) | ||||||||||||||||||||||||||||||||
Interest expense | (9,371) | (8,418) | (953) | (18,402) | (16,393) | (2,009) | ||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (618) | — | (618) | (776) | — | (776) | ||||||||||||||||||||||||||||||||
Change in fair value of derivatives and other | 2,548 | 314 | 2,234 | 6,730 | 707 | 6,023 | ||||||||||||||||||||||||||||||||
Unrealized credit loss provision | (295) | (388) | 93 | (900) | (333) | (567) | ||||||||||||||||||||||||||||||||
Other income (expense), net | 68 | 7 | 61 | 297 | 186 | 111 | ||||||||||||||||||||||||||||||||
Income before taxes | 30,747 | 7,994 | 22,753 | 42,722 | 13,984 | 28,738 | ||||||||||||||||||||||||||||||||
Income tax benefit | 20 | 461 | (441) | 321 | 480 | (159) | ||||||||||||||||||||||||||||||||
Net income | 30,767 | 8,455 | 22,312 | 43,043 | 14,464 | 28,579 | ||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests in investment entities | (128) | — | (128) | (228) | — | (228) | ||||||||||||||||||||||||||||||||
Preferred stock dividends | (2,887) | (2,887) | — | (5,774) | (5,774) | — | ||||||||||||||||||||||||||||||||
Net income attributable to common stockholders and OP Unitholders | $ | 27,752 | $ | 5,568 | $ | 22,184 | $ | 37,041 | $ | 8,690 | $ | 28,351 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
Office | $ | 18,314 | $ | 11,756 | $ | 6,558 | $ | 35,337 | $ | 23,391 | $ | 11,946 | ||||||||||||||||||||||||||
Retail | 21,544 | 19,204 | 2,340 | 42,974 | 37,459 | 5,515 | ||||||||||||||||||||||||||||||||
Multifamily | 15,366 | 16,418 | (1,052) | 31,548 | 32,269 | (721) | ||||||||||||||||||||||||||||||||
$ | 55,224 | $ | 47,378 | $ | 7,846 | $ | 109,859 | $ | 93,119 | $ | 16,740 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
Office | $ | 4,600 | $ | 2,938 | $ | 1,662 | $ | 8,740 | $ | 5,813 | $ | 2,927 | ||||||||||||||||||||||||||
Retail | 3,333 | 3,013 | 320 | 6,834 | 5,849 | 985 | ||||||||||||||||||||||||||||||||
Multifamily | 4,752 | 5,341 | (589) | 9,780 | 10,462 | (682) | ||||||||||||||||||||||||||||||||
$ | 12,685 | $ | 11,292 | $ | 1,393 | $ | 25,354 | $ | 22,124 | $ | 3,230 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||
Office | $ | 2,035 | $ | 1,413 | $ | 622 | $ | 3,539 | $ | 2,771 | $ | 768 | ||||||||||||||||||||||||||
Retail | 2,271 | 2,180 | 91 | 4,509 | 4,207 | 302 | ||||||||||||||||||||||||||||||||
Multifamily | 1,531 | 1,872 | (341) | 3,193 | 3,793 | (600) | ||||||||||||||||||||||||||||||||
$ | 5,837 | $ | 5,465 | $ | 372 | $ | 11,241 | $ | 10,771 | $ | 470 |
Amount Outstanding | Interest Rate (a) | Effective Rate for Variable Debt | Maturity Date | Balance at Maturity | |||||||||||||||||||||||||||||||
Secured Debt | |||||||||||||||||||||||||||||||||||
Marketplace at Hilltop | $ | 9,492 | 4.42 | % | October 1, 2022 | $ | 9,383 | ||||||||||||||||||||||||||||
1405 Point | 51,914 | LIBOR+ | 2.25 | % | 4.04 | % | January 1, 2023 | 51,532 | |||||||||||||||||||||||||||
Wills Wharf | 64,288 | LIBOR+ | 2.25 | % | 4.04 | % | June 26, 2023 | 64,288 | |||||||||||||||||||||||||||
249 Central Park Retail(b) | 16,226 | LIBOR+ | 1.60 | % | 3.85 | % | (c) | August 10, 2023 | 15,935 | ||||||||||||||||||||||||||
Fountain Plaza Retail(b) | 9,765 | LIBOR+ | 1.60 | % | 3.85 | % | (c) | August 10, 2023 | 9,589 | ||||||||||||||||||||||||||
South Retail(b) | 7,124 | LIBOR+ | 1.60 | % | 3.85 | % | (c) | August 10, 2023 | 6,996 | ||||||||||||||||||||||||||
One City Center | 23,760 | LIBOR+ | 1.85 | % | 3.64 | % | April 1, 2024 | 22,559 | |||||||||||||||||||||||||||
Chronicle Mill | 14,640 | LIBOR+ | 3.00 | % | 4.79 | % | May 5, 2024 | 14,640 | |||||||||||||||||||||||||||
Red Mill Central | 2,100 | 4.80 | % | June 17, 2024 | 1,765 | ||||||||||||||||||||||||||||||
Gainesville Apartments | 30,328 | LIBOR+ | 3.00 | % | 4.79 | % | August 31, 2024 | 30,327 | |||||||||||||||||||||||||||
Premier Apartments(d) | 16,399 | LIBOR+ | 1.55 | % | 3.34 | % | October 31, 2024 | 15,848 | |||||||||||||||||||||||||||
Premier Retail(d) | 8,077 | LIBOR+ | 1.55 | % | 3.34 | % | October 31, 2024 | 7,806 | |||||||||||||||||||||||||||
Red Mill South | 5,356 | 3.57 | % | May 1, 2025 | 4,383 | ||||||||||||||||||||||||||||||
Brooks Crossing Office | 14,631 | LIBOR+ | 1.60% | 3.39 | % | July 1, 2025 | 13,798 | ||||||||||||||||||||||||||||
Market at Mill Creek | 12,818 | LIBOR+ | 1.55% | 3.34 | % | July 12, 2025 | 10,876 | ||||||||||||||||||||||||||||
Encore Apartments(e) | 24,253 | 2.93 | % | February 10, 2026 | 22,213 | ||||||||||||||||||||||||||||||
4525 Main Street(e) | 31,133 | 2.93 | % | February 10, 2026 | 28,514 | ||||||||||||||||||||||||||||||
Thames Street Wharf | 70,044 | BSBY+ | 1.30 | % | 2.35 | % | (c) | September 30, 2026 | 60,839 | ||||||||||||||||||||||||||
Exelon Building | 175,000 | BSBY+ | 1.50 | % | 1.00 | % | (f) | November 1, 2026 | 175,000 | ||||||||||||||||||||||||||
Southgate Square | 26,656 | LIBOR+ | 1.90 | % | 3.69 | % | December 21, 2026 | 24,741 | |||||||||||||||||||||||||||
Nexton Square | 22,500 | SOFR+ | 1.95 | % | 3.45 | % | June 30, 2027 | 19,453 | |||||||||||||||||||||||||||
Greenbrier Square | 20,000 | 3.74% | October 10, 2027 | 18,049 | |||||||||||||||||||||||||||||||
Lexington Square | 14,034 | 4.50 | % | September 1, 2028 | 12,044 | ||||||||||||||||||||||||||||||
Red Mill North | 4,135 | 4.73 | % | December 31, 2028 | 3,295 | ||||||||||||||||||||||||||||||
Greenside Apartments | 32,232 | 3.17 | % | December 15, 2029 | 26,095 | ||||||||||||||||||||||||||||||
The Residences at Annapolis Junction(g) | 84,375 | SOFR+ | 2.66 | % | 4.16 | % | (f) | November 1, 2030 | 71,183 | ||||||||||||||||||||||||||
Smith's Landing | 15,997 | 4.05 | % | June 1, 2035 | 384 | ||||||||||||||||||||||||||||||
Liberty Apartments | 13,414 | 5.66 | % | November 1, 2043 | 90 | ||||||||||||||||||||||||||||||
Edison Apartments | 15,747 | 5.30 | % | December 1, 2044 | 100 | ||||||||||||||||||||||||||||||
The Cosmopolitan | 41,670 | 3.35 | % | July 1, 2051 | 187 | ||||||||||||||||||||||||||||||
Total secured debt | $ | 878,108 | $ | 741,912 | |||||||||||||||||||||||||||||||
Unsecured debt | |||||||||||||||||||||||||||||||||||
Senior unsecured revolving credit facility | $ | 82,000 | LIBOR+ | 1.30%-1.85% | 3.29 | % | January 24, 2024 | $ | 82,000 | ||||||||||||||||||||||||||
Senior unsecured term loan | 19,500 | LIBOR+ | 1.25%-1.80% | 3.24 | % | January 24, 2025 | 19,500 | ||||||||||||||||||||||||||||
Senior unsecured term loan | 185,500 | LIBOR+ | 1.25%-1.80% | 1.95%-4.47% | (c) | January 24, 2025 | 185,500 | ||||||||||||||||||||||||||||
Total unsecured debt | 287,000 | 287,000 | |||||||||||||||||||||||||||||||||
Total principal balances | $ | 1,165,108 | $ | 1,028,912 | |||||||||||||||||||||||||||||||
Other notes payable(h) | 9,204 | ||||||||||||||||||||||||||||||||||
Unamortized GAAP adjustments | (9,599) | ||||||||||||||||||||||||||||||||||
Loans reclassified to liabilities related to assets held for sale, net | (84,049) | ||||||||||||||||||||||||||||||||||
Indebtedness, net | $ | 1,080,664 |
Year(1) | Amount Due | Percentage of Total | |||||||||||||||
2022 (excluding six months ended June 30, 2022) | $ | 15,043 | 1 | % | |||||||||||||
2023 | 159,084 | 14 | % | ||||||||||||||
2024 | 187,106 | 16 | % | ||||||||||||||
2025 | 246,368 | 21 | % | ||||||||||||||
2026 | 321,012 | 28 | % | ||||||||||||||
Thereafter | 236,495 | 20 | % | ||||||||||||||
Total | $ | 1,165,108 | 100 | % |
Effective Date | Maturity Date | Strike Rate | Notional Amount | |||||||||||||||||
7/1/2020 | 7/1/2023 | 0.50% (LIBOR) | (a) | $ | 100,000 | |||||||||||||||
11/1/2020 | 11/1/2023 | 1.84% (SOFR) | 84,375 | |||||||||||||||||
2/2/2021 | 2/1/2023 | 0.50% (LIBOR) | 100,000 | |||||||||||||||||
3/4/2021 | 4/1/2023 | 2.50% (LIBOR) | 14,479 | |||||||||||||||||
5/5/2021 | 5/1/2023 | 0.50% (LIBOR) | (a) | 50,000 | ||||||||||||||||
5/5/2021 | 5/1/2023 | 0.50% (LIBOR) | (a) | 35,100 | ||||||||||||||||
6/16/2021 | 7/1/2023 | 0.50% (LIBOR) | (a) | 100,000 | ||||||||||||||||
1/11/2022 | 2/1/2024 | 4.00% (BSBY) | 175,000 | |||||||||||||||||
4/7/2022 | 2/1/2024 | 1.00%-3.00% (BSBY) | (b) | 175,000 | ||||||||||||||||
9/1/2022 | 9/1/2024 | 1.00%-3.00% (SOFR) | (b)(c) | 73,562 | ||||||||||||||||
Total | $ | 907,516 |
Related Debt | Notional Amount | Index | Swap Fixed Rate | Debt effective rate | Effective Date | Expiration Date | ||||||||||||||||||||||||||||||||
Senior unsecured term loan | $ | 50,000 | 1-month LIBOR | 2.26 | % | 3.71 | % | 4/1/2019 | 10/26/2022 | |||||||||||||||||||||||||||||
Senior unsecured term loan | 50,000 | 1-month LIBOR | 2.78 | % | 4.23 | % | 5/1/2018 | 5/1/2023 | ||||||||||||||||||||||||||||||
249 Central Park Retail, South Retail, and Fountain Plaza Retail | 33,115 | 1-month LIBOR | 2.25 | % | 3.85 | % | 4/1/2019 | 8/10/2023 | ||||||||||||||||||||||||||||||
Senior unsecured term loan | 10,500 | 1-month LIBOR | 3.02 | % | 4.47 | % | 10/12/2018 | 10/12/2023 | ||||||||||||||||||||||||||||||
Senior unsecured term loan | 25,000 | 1-month LIBOR | 0.50 | % | 1.95 | % | 4/1/2020 | 4/1/2024 | ||||||||||||||||||||||||||||||
Senior unsecured term loan | 25,000 | 1-month LIBOR | 0.50 | % | 1.95 | % | 4/1/2020 | 4/1/2024 | ||||||||||||||||||||||||||||||
Senior unsecured term loan | 25,000 | 1-month LIBOR | 0.55 | % | 2.00 | % | 4/1/2020 | 4/1/2024 | ||||||||||||||||||||||||||||||
Thames Street Wharf | 70,044 | 1-month BSBY | 1.05 | % | 2.35 | % | 9/30/2021 | 9/30/2026 | ||||||||||||||||||||||||||||||
Total | $ | 288,659 | ||||||||||||||||||||||||||||||||||||
Development project | Payment guarantee amount | Guarantee liability | ||||||||||||
Interlock Commercial | $ | 37,450 | $ | 1,346 | ||||||||||
Harbor Point Parcel 4 (a) | 32,910 | 242 | ||||||||||||
Total | $ | 70,360 | $ | 1,588 |
Six Months Ended June 30, | ||||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Operating Activities | $ | 50,407 | $ | 40,640 | $ | 9,767 | ||||||||||||||
Investing Activities | (86,950) | (31,605) | (55,345) | |||||||||||||||||
Financing Activities | 72,512 | (6,223) | 78,735 | |||||||||||||||||
Net Increase (decrease) | $ | 35,969 | $ | 2,812 | $ | 33,157 | ||||||||||||||
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period | $ | 40,443 | $ | 50,430 | ||||||||||||||||
Cash, Cash Equivalents, and Restricted Cash, End of Period | $ | 76,412 | $ | 53,242 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in thousands, except per share and unit amounts) | ||||||||||||||||||||||||||
Net income attributable to common stockholders and OP Unitholders | $ | 27,752 | $ | 5,568 | $ | 37,041 | $ | 8,690 | ||||||||||||||||||
Depreciation and amortization (1) | 18,509 | 17,285 | 36,794 | 35,351 | ||||||||||||||||||||||
Gain on operating real estate dispositions, net (2) | (19,493) | — | (19,493) | (3,464) | ||||||||||||||||||||||
Impairment of real estate assets | 201 | — | 201 | 3,039 | ||||||||||||||||||||||
FFO attributable to common stockholders and OP Unitholders | 26,969 | 22,853 | 54,543 | 43,616 | ||||||||||||||||||||||
Acquisition, development and other pursuit costs | 26 | 32 | 37 | 103 | ||||||||||||||||||||||
Impairment of intangible assets and liabilities | 85 | 83 | 132 | 83 | ||||||||||||||||||||||
Loss on extinguishment of debt | 618 | — | 776 | — | ||||||||||||||||||||||
Unrealized credit loss provision | 295 | 388 | 900 | 333 | ||||||||||||||||||||||
Amortization of right-of-use assets - finance leases | 277 | 278 | 555 | 467 | ||||||||||||||||||||||
Change in fair value of derivatives not designated as cash flow hedges and other | (2,548) | (314) | (6,730) | (707) | ||||||||||||||||||||||
Amortization of interest rate cap premiums on designated cash flow hedges | 481 | 59 | 523 | 117 | ||||||||||||||||||||||
Normalized FFO available to common stockholders and OP Unitholders | $ | 26,203 | $ | 23,379 | $ | 50,736 | $ | 44,012 | ||||||||||||||||||
Net income attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.31 | $ | 0.07 | $ | 0.42 | $ | 0.11 | ||||||||||||||||||
FFO attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.31 | $ | 0.28 | $ | 0.62 | $ | 0.54 | ||||||||||||||||||
Normalized FFO attributable to common stockholders and OP Unitholders per diluted share and unit | $ | 0.30 | $ | 0.29 | $ | 0.58 | $ | 0.54 | ||||||||||||||||||
Weighted average common shares and units - diluted | 88,331 | 81,262 | 88,042 | 80,771 |
(1) The adjustment for depreciation and amortization for the three and six months ended June 30, 2022 excludes $0.3 million and $0.5 million, respectively, of depreciation attributable to our joint venture partners. | ||
(2) The adjustment for gain on operating real estate dispositions for the six months ended June 30, 2021 excludes the gain on sale of easement rights on a non-operating parcel. |
Exhibit No. | Description | |||||||
101* | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, were formatted in Inline XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Balance Sheet, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Statements of Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
104* | Cover page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL. | |||||||
* | Filed herewith | |||||||
** | Furnished herewith |
ARMADA HOFFLER PROPERTIES, INC. | |||||
Date: August 5, 2022 | /s/ Louis S. Haddad | ||||
Louis S. Haddad | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
Date: August 5, 2022 | /s/ Matthew T. Barnes-Smith | ||||
Matthew T. Barnes-Smith | |||||
Chief Financial Officer, Treasurer and Corporate Secretary | |||||
(Principal Accounting and Financial Officer) |
COMPANY: | ||||||||
ARMADA HOFFLER PROPERTIES, INC. | ||||||||
By:______________________________________________ | ||||||||
Name: | ||||||||
Title: | ||||||||
INDEMNITEE | ||||||||
_________________________________________________ | ||||||||
Name: | ||||||||
Address: |
Name:______________________________ |
Indemnitee | Date | |||||||
Daniel A. Hoffler | May 13, 2013 | |||||||
A. Russell Kirk | May 13, 2013 | |||||||
John W. Snow | May 13, 2013 | |||||||
George F. Allen | May 13, 2013 | |||||||
James A. Carroll | May 13, 2013 | |||||||
James C. Cherry | May 13, 2013 | |||||||
Louis S. Haddad | May 13, 2013 | |||||||
Eva S. Hardy | March 25, 2015 | |||||||
Dorothy McAuliffe | September 27, 2019 | |||||||
Dennis H. Gartman | July 13, 2022 | |||||||
Joseph W. Prueher | October 24, 2013 | |||||||
Anthony P. Nero | May 13, 2013 | |||||||
Eric E. Apperson | May 13, 2013 | |||||||
Shelly R. Hampton | May 13, 2013 | |||||||
Michael P. O’Hara | May 13, 2013 | |||||||
Eric L. Smith | May 13, 2013 | |||||||
Matthew T. Barnes-Smith | March 21, 2022 |
Date: August 5, 2022 | /s/ Louis S. Haddad | |||||||
Louis S. Haddad | ||||||||
President and Chief Executive Officer |
Date: August 5, 2022 | /s/ Matthew T. Barnes-Smith | |||||||
Matthew T. Barnes-Smith | ||||||||
Chief Financial Officer, Treasurer and Corporate Secretary |
Date: August 5, 2022 | /s/ Louis S. Haddad | |||||||
Louis S. Haddad | ||||||||
President and Chief Executive Officer |
Date: August 5, 2022 | /s/ Matthew T. Barnes-Smith | |||||||
Matthew T. Barnes-Smith | ||||||||
Chief Financial Officer, Treasurer and Corporate Secretary |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 67,729,650 | 63,011,700 |
Common stock, shares outstanding (in shares) | 67,729,650 | 63,011,700 |
Redeemable convertible preferred stock | ||
Preferred stock, shares authorized (in shares) | 9,980,000 | 9,980,000 |
Preferred Stock dividend rate percentage | 6.75% | |
Preferred stock, shares issued (in shares) | 6,843,418 | 6,843,418 |
Preferred stock, shares outstanding (in shares) | 6,843,418 | 6,843,418 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Revenues | ||||
Rental revenues | $ 55,224 | $ 47,378 | $ 109,859 | $ 93,119 |
General contracting and real estate services revenues | 45,273 | 18,408 | 69,923 | 53,971 |
Total revenues | 100,497 | 65,786 | 179,782 | 147,090 |
Expenses | ||||
Rental expenses | 12,685 | 11,292 | 25,354 | 22,124 |
Real estate taxes | 5,837 | 5,465 | 11,241 | 10,771 |
General contracting and real estate services expenses | 43,418 | 18,131 | 67,239 | 52,406 |
Depreciation and amortization | 18,781 | 17,285 | 37,338 | 35,351 |
Amortization of right-of-use assets - finance leases | 277 | 278 | 555 | 467 |
General and administrative expenses | 3,617 | 3,487 | 8,325 | 7,508 |
Acquisition, development and other pursuit costs | 26 | 32 | 37 | 103 |
Impairment charges | 286 | 83 | 333 | 3,122 |
Total expenses | 84,927 | 56,053 | 150,422 | 131,852 |
Gain on real estate dispositions, net | 19,493 | 0 | 19,493 | 3,717 |
Operating income | 35,063 | 9,733 | 48,853 | 18,955 |
Interest income | 3,352 | 6,746 | 6,920 | 10,862 |
Interest expense | (9,371) | (8,418) | (18,402) | (16,393) |
Loss on extinguishment of debt | (618) | 0 | (776) | 0 |
Change in fair value of derivatives and other | 2,548 | 314 | 6,730 | 707 |
Unrealized credit loss provision | (295) | (388) | (900) | (333) |
Other income (expense), net | 68 | 7 | 297 | 186 |
Income before taxes | 30,747 | 7,994 | 42,722 | 13,984 |
Income tax benefit | 20 | 461 | 321 | 480 |
Net income | 30,767 | 8,455 | 43,043 | 14,464 |
Net income attributable to noncontrolling interests: | ||||
Investment entities | (128) | 0 | (228) | 0 |
Operating Partnership | (6,479) | (1,429) | (8,662) | (2,240) |
Net income attributable to Armada Hoffler Properties, Inc. | 24,160 | 7,026 | 34,153 | 12,224 |
Preferred stock dividends | (2,887) | (2,887) | (5,774) | (5,774) |
Net income attributable to common stockholders | $ 21,273 | $ 4,139 | $ 28,379 | $ 6,450 |
Net income attributable to common stockholders per share (basic) (in dollars per share) | $ 0.31 | $ 0.07 | $ 0.42 | $ 0.11 |
Net income attributable to common stockholders per share (diluted) (in dollars per share) | $ 0.31 | $ 0.07 | $ 0.42 | $ 0.11 |
Weighted-average common shares outstanding (basic) (in shares) | 67,710 | 60,409 | 67,420 | 59,918 |
Weighted-average common shares outstanding (diluted) (in shares) | 67,710 | 60,409 | 67,420 | 59,918 |
Comprehensive income: | ||||
Net income | $ 30,767 | $ 8,455 | $ 43,043 | $ 14,464 |
Unrealized cash flow hedge gains (losses) | 3,950 | (469) | 11,672 | 1,807 |
Realized cash flow hedge losses reclassified to net income | 866 | 1,103 | 1,653 | 2,181 |
Comprehensive income | 35,583 | 9,089 | 56,368 | 18,452 |
Comprehensive income attributable to Armada Hoffler Properties, Inc. | $ 27,776 | $ 7,497 | $ 44,278 | $ 15,178 |
Revenue, Product and Service [Extensible List] | Real Estate [Member] | Real Estate [Member] | Real Estate [Member] | Real Estate [Member] |
Noncontrolling interests in investment entities | ||||
Expenses | ||||
Net income | $ 128 | $ 0 | ||
Comprehensive income: | ||||
Net income | 128 | 0 | ||
Unrealized cash flow hedge gains (losses) | 55 | |||
Realized cash flow hedge losses reclassified to net income | 45 | |||
Comprehensive income attributable to noncontrolling interests: | (228) | 0 | $ (328) | $ 0 |
Noncontrolling interests in Operating Partnership | ||||
Expenses | ||||
Net income | 6,479 | 1,429 | ||
Comprehensive income: | ||||
Net income | 6,479 | 1,429 | ||
Unrealized cash flow hedge gains (losses) | 909 | (120) | ||
Realized cash flow hedge losses reclassified to net income | 191 | 283 | ||
Comprehensive income attributable to noncontrolling interests: | $ (7,579) | $ (1,592) | $ (11,762) | $ (3,274) |
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands |
Total |
Total stockholders' equity |
Preferred stock |
Common stock |
Additional paid-in capital |
Distributions in excess of earnings |
Accumulated other comprehensive loss |
Noncontrolling interests in investment entities |
Noncontrolling interests in Operating Partnership |
---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2020 | $ 756,802 | $ 523,199 | $ 171,085 | $ 591 | $ 472,747 | $ (112,356) | $ (8,868) | $ 488 | $ 233,115 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 6,009 | 5,198 | 5,198 | 0 | 811 | ||||
Unrealized cash flow hedge gains (losses) | 2,276 | 1,685 | 1,685 | 591 | |||||
Realized cash flow hedge losses reclassified to net income | 1,078 | 798 | 798 | 280 | |||||
Net proceeds from issuance of common stock | 8,981 | 8,981 | 7 | 8,974 | |||||
Restricted stock awards, net | 632 | 632 | 1 | 631 | |||||
Redemption of operating partnership units | (3) | 131 | 131 | (134) | |||||
Dividends declared on preferred stock | (2,887) | (2,887) | (2,887) | ||||||
Dividends and distributions declared on common shares and units | 12,136 | 9,008 | 9,008 | 3,128 | |||||
Ending balance at Mar. 31, 2021 | 760,752 | 528,729 | 171,085 | 599 | 482,483 | (119,053) | (6,385) | 488 | 231,535 |
Beginning balance at Dec. 31, 2020 | 756,802 | 523,199 | 171,085 | 591 | 472,747 | (112,356) | (8,868) | 488 | 233,115 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 14,464 | ||||||||
Unrealized cash flow hedge gains (losses) | 1,807 | ||||||||
Realized cash flow hedge losses reclassified to net income | 2,181 | ||||||||
Noncontrolling interest in acquired real estate entity | 0 | ||||||||
Ending balance at Jun. 30, 2021 | 767,619 | 537,195 | 171,085 | 610 | 496,111 | (124,697) | (5,914) | 634 | 229,790 |
Beginning balance at Mar. 31, 2021 | 760,752 | 528,729 | 171,085 | 599 | 482,483 | (119,053) | (6,385) | 488 | 231,535 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 8,455 | 7,026 | 7,026 | 0 | 1,429 | ||||
Unrealized cash flow hedge gains (losses) | (469) | (349) | (349) | (120) | |||||
Realized cash flow hedge losses reclassified to net income | 1,103 | 820 | 820 | 283 | |||||
Net proceeds from issuance of common stock | 14,116 | 14,116 | 11 | 14,105 | |||||
Restricted stock awards, net | 473 | 473 | 473 | ||||||
Acquisitions of noncontrolling interests | (804) | (950) | (950) | 146 | |||||
Dividends declared on preferred stock | (2,887) | (2,887) | (2,887) | ||||||
Dividends and distributions declared on common shares and units | 13,120 | 9,783 | 9,783 | 3,337 | |||||
Ending balance at Jun. 30, 2021 | 767,619 | 537,195 | 171,085 | 610 | 496,111 | (124,697) | (5,914) | 634 | 229,790 |
Beginning balance at Dec. 31, 2021 | 779,823 | 555,352 | 171,085 | 630 | 525,030 | (141,360) | (33) | 629 | 223,842 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 12,276 | 9,993 | 9,993 | 100 | 2,183 | ||||
Unrealized cash flow hedge gains (losses) | 7,722 | 5,907 | 5,907 | 1,815 | |||||
Realized cash flow hedge losses reclassified to net income | 787 | 602 | 602 | 185 | |||||
Net proceeds from issuance of common stock | 65,194 | 65,194 | 45 | 65,149 | |||||
Noncontrolling interest in acquired real estate entity | 23,065 | 23,065 | |||||||
Restricted stock awards, net | 1,064 | 1,064 | 1,064 | ||||||
Acquisitions of noncontrolling interests | (3,901) | (3,901) | (3,901) | ||||||
Redemption of operating partnership units | 0 | 132 | 132 | (132) | |||||
Dividends declared on preferred stock | (2,887) | (2,887) | (2,887) | ||||||
Dividends and distributions declared on common shares and units | 14,939 | 11,433 | 11,433 | 3,506 | |||||
Ending balance at Mar. 31, 2022 | 868,204 | 620,023 | 171,085 | 675 | 587,474 | (145,687) | 6,476 | 23,794 | 224,387 |
Beginning balance at Dec. 31, 2021 | 779,823 | 555,352 | 171,085 | 630 | 525,030 | (141,360) | (33) | 629 | 223,842 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 43,043 | ||||||||
Unrealized cash flow hedge gains (losses) | 11,672 | ||||||||
Realized cash flow hedge losses reclassified to net income | 1,653 | ||||||||
Noncontrolling interest in acquired real estate entity | 23,065 | ||||||||
Ending balance at Jun. 30, 2022 | 886,336 | 633,923 | 171,085 | 677 | 588,012 | (135,942) | 10,091 | 23,952 | 228,461 |
Beginning balance at Mar. 31, 2022 | 868,204 | 620,023 | 171,085 | 675 | 587,474 | (145,687) | 6,476 | 23,794 | 224,387 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 30,767 | 24,160 | 24,160 | 128 | 6,479 | ||||
Unrealized cash flow hedge gains (losses) | 3,950 | 2,986 | 2,986 | 55 | 909 | ||||
Realized cash flow hedge losses reclassified to net income | 866 | 630 | 1 | 629 | 45 | 191 | |||
Net proceeds from issuance of common stock | (35) | (35) | (35) | ||||||
Restricted stock awards, net | 575 | 575 | 2 | 573 | |||||
Distributions to noncontrolling interests | (84) | (84) | |||||||
Contributions from noncontrolling interests | 14 | 14 | |||||||
Dividends declared on preferred stock | (2,887) | (2,887) | (2,887) | ||||||
Dividends and distributions declared on common shares and units | 15,034 | 11,529 | 11,529 | 3,505 | |||||
Ending balance at Jun. 30, 2022 | $ 886,336 | $ 633,923 | $ 171,085 | $ 677 | $ 588,012 | $ (135,942) | $ 10,091 | $ 23,952 | $ 228,461 |
Condensed Consolidated Statement of Equity (Parenthetical) - $ / shares |
3 Months Ended | |||
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Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
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Statement of Stockholders' Equity [Abstract] | ||||
Dividend declared (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.16 | $ 0.15 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 |
Jun. 30, 2021 |
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OPERATING ACTIVITIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ 43,043 | $ 14,464 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of buildings and tenant improvements | 27,613 | 25,209 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of leasing costs, in-place lease intangibles and below market ground rents - operating leases | 9,725 | 10,142 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued straight-line rental revenue | (3,036) | (3,327) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of leasing incentives and above or below-market rents | (520) | (508) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of right-of-use assets - finance leases | 555 | 467 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued straight-line ground rent expense | 76 | 81 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized credit loss provision | 900 | 333 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment for uncollectable lease accounts | 405 | 562 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncash stock compensation | 2,115 | 1,440 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment charges | 333 | 3,122 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncash interest expense | 2,143 | 1,329 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncash loss on extinguishment of debt | 776 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on real estate dispositions, net | (19,493) | (3,717) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of derivatives and other | (6,730) | (707) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property assets | (8,243) | (1,469) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property liabilities | (2,429) | (2,968) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction assets | (18,005) | 26,865 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction liabilities | 25,205 | (34,645) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest receivable | (4,026) | 3,967 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | 50,407 | 40,640 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Development of real estate investments | (35,478) | (19,476) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tenant and building improvements | (8,467) | (4,817) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions of real estate investments, net of cash received | (93,313) | (28,173) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dispositions of real estate investments, net of selling costs | 101,812 | 9,156 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable issuances | (20,829) | (19,796) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable paydowns | 11,545 | 38,490 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leasing costs | (1,836) | (1,068) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leasing incentives | (51) | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions to equity method investments | (40,333) | (5,921) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash used for investing activities | (86,950) | (31,605) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock, net | 65,159 | 23,097 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares tendered for tax withholding | (774) | (553) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt issuances, credit facility and construction loan borrowings | 324,096 | 19,119 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and credit facility repayments, including principal amortization | (273,698) | (18,379) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt issuance costs | (3,303) | (2,024) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of NCI in consolidated RE investments | (3,901) | (804) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (84) | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | 14 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | (34,997) | (26,679) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used for) financing activities | 72,512 | (6,223) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net increase in cash, cash equivalents, and restricted cash | 35,969 | 2,812 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 40,443 | 50,430 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | [1] | 76,412 | 53,242 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Disclosures (noncash transactions): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase in dividends and distributions payable | 750 | 4,351 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in accrued capital improvements and development costs | (2,626) | 2,058 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Partnership units redeemed for common shares | 132 | 131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt assumed at fair value in conjunction with real estate purchases | 156,071 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest in acquired real estate entity | 23,065 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of finance lease right-of-use assets | 0 | 24,466 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognition of finance lease liabilities | $ 0 | $ 27,940 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Consolidated Statements of Cash Flows - Footnotes (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
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Statement of Cash Flows [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ 69,731 | $ 35,247 | $ 43,493 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 6,681 | [1] | 5,196 | 9,749 | [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash | $ 76,412 | [2] | $ 40,443 | $ 53,242 | [2] | $ 50,430 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business of Organization |
6 Months Ended |
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Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business of Organization | Business of Organization Armada Hoffler Properties, Inc. (the "Company") is a full-service real estate company with extensive experience developing, building, owning, and managing high-quality, institutional-grade office, retail, and multifamily properties in attractive markets primarily throughout the Mid-Atlantic and Southeastern United States. The Company is a real estate investment trust ("REIT"), the sole general partner of Armada Hoffler, L.P. (the "Operating Partnership") and, as of June 30, 2022, owned 76.7% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are carried on primarily through the Operating Partnership and the wholly owned subsidiaries thereof. As of June 30, 2022, the Company's property portfolio consisted of 55 stabilized operating properties and four properties either under development or not yet stabilized. Refer to Note 5 for information related to the Company's recent acquisitions and dispositions of properties.
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Significant Accounting Policies |
6 Months Ended |
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Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The condensed consolidated financial statements include the financial position and results of operations of the Company and its consolidated subsidiaries, including the Operating Partnership, its wholly-owned subsidiaries, and any interests in variable interest entities ("VIEs") where the Company has been determined to be the primary beneficiary. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition, and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best judgment after considering past, current, and expected events and economic conditions. Actual results could differ significantly from management’s estimates. Reclassifications Certain items have been reclassified from their prior year classifications to conform to the current year presentation. These reclassifications had no effect on net income or stockholders' equity as previously reported. Recent Accounting Pronouncements Accounting Standards Adopted in 2022 Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04 Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848), which became effective on March 12, 2020 and generally can be applied through December 31, 2022. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. This Accounting Standards Update ("ASU") also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by reference rate reform. Application of the guidance is optional and only available in certain situations. In January 2021, FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848). The amendments in this standard are elective and principally apply to entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Similar to ASU No. 2020-04, provisions of this ASU are effective upon issuance and generally can be applied through December 31, 2022. During the six months ended June 30, 2022, the Company elected to apply the practical expedients to modifications of qualifying contracts as continuations of the existing contracts rather than as new contracts. The adoption of the new guidance did not have a material impact on the consolidated financial statements. Management will continue to evaluate the impacts of reference rate reform. Earnings Per Share In August 2020, FASB issued ASU 2020-06 an update to ASC Topic 470 and ASC Topic 815, which became effective January 1, 2022. ASU 2020-06 simplifies the accounting for convertible instruments and removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception. This ASU also simplifies diluted earnings per share calculation in certain areas and provides updated disclosure requirements. The Company adopted ASU 2020-06 effective January 1, 2022 and the adoption did not have a material impact on the consolidated financial statements. Other Accounting Policies See the Company's Annual Report on Form 10-K for the year ended December 31, 2021 for a description of other accounting principles upon which basis the accompanying consolidated financial statements were prepared.
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments | Segments Net operating income (segment revenues minus segment expenses) is the measure used by the Company’s chief operating decision-maker to assess segment performance. Net operating income is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, net operating income should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate net operating income in the same manner. The Company considers net operating income to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate and construction businesses. Net operating income of the Company’s reportable segments for the three and six months ended June 30, 2022 and 2021 was as follows (in thousands):
Rental expenses represent costs directly associated with the operation and management of the Company’s real estate properties. Rental expenses include asset management expenses, property management fees, repairs and maintenance, insurance, and utilities. General contracting and real estate services revenues for the three months ended June 30, 2022 and 2021 exclude revenue related to intercompany construction contracts of $14.2 million and $5.4 million, respectively, as it is eliminated in consolidation. General contracting and real estate services revenues for the six months ended June 30, 2022 and 2021 exclude revenue related to intercompany construction contracts of $22.8 million and $7.4 million, respectively, as it is eliminated in consolidation. General contracting and real estate services expenses for the three months ended June 30, 2022 and 2021 exclude expenses related to intercompany construction contracts of $14.0 million and $5.4 million, respectively. General contracting and real estate services expenses for the six months ended June 30, 2022 and 2021 exclude expenses related to intercompany construction contracts of $22.5 million and $7.4 million, respectively, as it is eliminated in consolidation. The following table reconciles net operating income to net income, the most directly comparable GAAP measure, for the three and six months ended June 30, 2022 and 2021 (in thousands):
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Lessee Disclosures As a lessee, the Company has eight ground leases on seven properties. These ground leases have maximum lease terms (including renewal options) that expire between 2074 and 2117. The exercise of lease renewal options is at the Company's sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Five of these leases have been classified as operating leases and three of these leases have been classified as finance leases. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants. Lessor Disclosures As a lessor, the Company leases its properties under operating leases and recognizes base rents on a straight-line basis over the lease term. The Company also recognizes revenue from tenant recoveries, through which tenants reimburse the Company on an accrual basis for certain expenses such as utilities, janitorial services, repairs and maintenance, security and alarms, parking lot and ground maintenance, administrative services, management fees, insurance, and real estate taxes. Rental revenues are reduced by the amount of any leasing incentives amortized on a straight-line basis over the term of the applicable lease. In addition, the Company recognizes contingent rental revenue (e.g., percentage rents based on tenant sales thresholds) when the sales thresholds are met. Many tenant leases include one or more options to renew, with renewal terms that can extend the lease term from to 25 years, or more. The exercise of lease renewal options is at the tenant's sole discretion. The Company includes a renewal period in the lease term only if it appears at lease inception that the renewal is reasonably assured. Rental revenue for the three and six months ended June 30, 2022 and 2021 comprised the following (in thousands):
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Leases | Leases Lessee Disclosures As a lessee, the Company has eight ground leases on seven properties. These ground leases have maximum lease terms (including renewal options) that expire between 2074 and 2117. The exercise of lease renewal options is at the Company's sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Five of these leases have been classified as operating leases and three of these leases have been classified as finance leases. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants. Lessor Disclosures As a lessor, the Company leases its properties under operating leases and recognizes base rents on a straight-line basis over the lease term. The Company also recognizes revenue from tenant recoveries, through which tenants reimburse the Company on an accrual basis for certain expenses such as utilities, janitorial services, repairs and maintenance, security and alarms, parking lot and ground maintenance, administrative services, management fees, insurance, and real estate taxes. Rental revenues are reduced by the amount of any leasing incentives amortized on a straight-line basis over the term of the applicable lease. In addition, the Company recognizes contingent rental revenue (e.g., percentage rents based on tenant sales thresholds) when the sales thresholds are met. Many tenant leases include one or more options to renew, with renewal terms that can extend the lease term from to 25 years, or more. The exercise of lease renewal options is at the tenant's sole discretion. The Company includes a renewal period in the lease term only if it appears at lease inception that the renewal is reasonably assured. Rental revenue for the three and six months ended June 30, 2022 and 2021 comprised the following (in thousands):
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Real Estate Investment |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Investment | Real Estate Investment Property Acquisitions Exelon On January 14, 2022, the Company acquired a 79% membership interest and an additional 11% economic interest in the partnership that owns the Exelon Building for a purchase price of approximately $92.2 million in cash and a loan to the seller of $12.8 million. The Exelon Building is a mixed-use structure located in Baltimore's Harbor Point and is comprised of an office building, the Exelon Office, that serves as the headquarters for Constellation Energy Corp., which was spun-off from Exelon, a Fortune 100 energy company, in February 2022, as well as a multifamily component, 1305 Dock Street. The Exelon Office includes a parking garage and retail space. The Exelon Building was subject to a $156.1 million loan, which the Company immediately refinanced following the acquisition with a new $175.0 million loan. The new loan bears interest at a rate of the Bloomberg Short-Term Bank Yield Index ("BSBY") plus a spread of 1.50% and will mature on November 1, 2026. This loan is hedged by an interest rate cap corridor of 1.00% and 3.00% as well as an interest rate cap of 4.00%. See Note 9 for further details. The following table summarizes the purchase price allocation (including acquisition costs) based on the relative fair value of the assets acquired for the two operating properties purchased during the six months ended June 30, 2022 (in thousands):
Ten Tryon On January 14, 2022, the Company acquired the remaining 20% ownership interest in the entity that is developing the Ten Tryon project in Charlotte, North Carolina for a cash payment of $3.9 million. The Company recorded the amount as an adjustment to additional paid-in-capital. The Residences at Annapolis Junction On April 11, 2022, the Company exercised its option to acquire an additional 16% of the partnership that owns The Residences at Annapolis Junction, increasing its ownership to 95%. In exchange for this increased partnership interest, the terms of the partnership waterfall calculation in the event of a capital event have been modified. Property Dispositions On April 1, 2022, the Company completed the sale of Hoffler Place for a sale price of $43.1 million. The loss recognized upon sale was $0.8 million. On April 25, 2022, the Company completed the sale of Summit Place for a sale price of $37.8 million. The loss recognized upon sale was $0.5 million. In addition to the losses recognized on the sales of the Hoffler Place and Summit Place student-housing properties during the three months ended June 30, 2022 described above, the Company recognized impairment of real estate of $18.3 million to record these properties at their fair values during the three months ended December 31, 2021. On June 29, 2022, the Company completed the sale of the Home Depot and Costco outparcels at North Pointe for a sale price of $23.9 million. The gain on disposition was $20.9 million. Real Estate Held for Sale As of June 30, 2022, the Company had classified The Residences at Annapolis Junction and the AutoZone and Valvoline outparcels at Sandbridge Commons in real estate investments held for sale. Subsequent to June 30, 2022, the Company sold these properties. See Note 15 for more information. Equity Method Investments Harbor Point Parcel 3 The Company owns a 50% interest in Harbor Point Parcel 3, a joint venture with Beatty Development Group, for purposes of developing T. Rowe Price's new global headquarters office building in Baltimore, Maryland. The Company is a noncontrolling partner in the joint venture and will serve as the project's general contractor. During the six months ended June 30, 2022, the Company invested $21.1 million in Harbor Point Parcel 3. The Company has an estimated equity commitment of up to $39.0 million relating to this project. As of June 30, 2022 and December 31, 2021, the carrying value of the Company's investment in Harbor Point Parcel 3 was $33.8 million and $12.7 million, respectively. For the six months ended June 30, 2022, Harbor Point Parcel 3 had no operating activity, and therefore the Company received no allocated income. Based on the terms of the operating agreement, the Company has concluded that Harbor Point Parcel 3 is a VIE and that the Company holds a variable interest. The Company has significant influence over the project due to its 50% ownership; however, the Company does not have the power to direct the activities of the project that most significantly impact its performance. This includes activity as the managing member of the entity, which is a power that is retained by the Company's joint venture partner. Accordingly, the Company is not the project's primary beneficiary and, therefore, does not consolidate Harbor Point Parcel 3 in its consolidated financial statements. The Company's investment in the project is recorded as an equity method investment in the consolidated balance sheets. Harbor Point Parcel 4 On April 1, 2022, the Company acquired a 78% interest in Harbor Point Parcel 4, a real estate venture with Beatty Development Group, for purposes of developing a mixed-use project, which is planned to include multifamily units, retail space, and a parking garage. The Company holds an option to increase its ownership to 90%. The Company is a noncontrolling partner in the real estate venture and will serve as the project's general contractor. During the six months ended June 30, 2022, the Company invested $19.7 million in Harbor Point Parcel 4. The Company has an estimated equity commitment of up to $100.0 million relating to this project. As of June 30, 2022, the carrying value of the Company's investment in Harbor Point Parcel 4 was $19.7 million. For the six months ended June 30, 2022, Harbor Point Parcel 4 had no operating activity, and therefore the Company received no allocated income. Based on the terms of the operating agreement, the Company has concluded that Harbor Point Parcel 4 is a VIE and that the Company holds a variable interest. The Company has significant influence over the project due to its 78% ownership; however, the Company does not have the power to direct the activities of the project that most significantly impact its performance. This includes activity as the managing member of the entity, which is a power that is retained by the Company's partner. Accordingly, the Company is not the project's primary beneficiary and, therefore, does not consolidate Harbor Point Parcel 4 in its consolidated financial statements. The Company's investment in the project is recorded as an equity method investment in the consolidated balance sheets.
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Notes Receivable and Current Expected Credit Losses |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Receivable and Current Expected Credit Losses | Notes Receivable and Current Expected Credit Losses Notes Receivable The Company had the following notes receivable outstanding as of June 30, 2022 and December 31, 2021 ($ in thousands):
________________________________________ (a) Outstanding loan amounts include any accrued and unpaid interest, as applicable. (b) This amount includes interest reserves. (c) The amount excludes $0.5 million of Current Expected Credit Losses ("CECL") allowance that relates to the unfunded commitments, which was recorded as a liability under Other liabilities in the consolidated balance sheet. Interest on the notes receivable is accrued and funded utilizing the interest reserves for each loan, which are components of the respective maximum loan commitments, and such accrued interest is generally added to the loan receivable balances. The Company recognized interest income for the three and six months ended June 30, 2022 and 2021 as follows (in thousands):
________________________________________ (a) Includes recognition of interest income related to fee amortization. (b) Includes prepayment premium of $2.4 million from early payoff of the loan. City Park 2 On March 23, 2022, the Company entered into a $20.6 million preferred equity investment for the development of a multifamily property located in Charlotte, North Carolina. The investment has economic terms consistent with a note receivable, including a mandatory redemption or maturity on April 28, 2026, and it is accounted for as a note receivable. The Company's investment bears interest at a rate of 13%, compounded annually. Management has concluded that this entity is a VIE. Because the other investor in the project, TP City Park 2 LLC, is the developer of City Park 2 Multifamily, the Company does not have the power to direct the activities of the project that most significantly impact its performance. Accordingly, the Company is not the project's primary beneficiary and does not consolidate the project in its consolidated financial statements. Interlock Commercial During February 2022, the Company received $13.5 million as a partial repayment of the Interlock Commercial mezzanine loan, which consisted of $11.1 million of principal and $2.4 million of interest. Allowance for Loan Losses The Company is exposed to credit losses primarily through its mezzanine lending activities and preferred equity investments. As of June 30, 2022, the Company had three mezzanine loans (including the Nexton Multifamily and City Park 2 preferred equity investments that are accounted for as notes receivable), each of which are financing development projects in various stages of completion or lease-up. Each of these projects is subject to a loan that is senior to the Company’s mezzanine loan. Interest on these loans is paid in kind and is generally not expected to be paid until a sale of the project after completion of the development. The Company's management performs a quarterly analysis of the loan portfolio to determine the risk of credit loss based on the progress of development activities, including leasing activities, projected development costs, and current and projected mezzanine and senior construction loan balances. The Company estimates future losses on its notes receivable using risk ratings that correspond to probabilities of default and loss given default. The Company's risk ratings are as follows: •Pass: loans in this category are adequately collateralized by a development project with conditions materially consistent with the Company's underwriting assumptions. •Special Mention: loans in this category show signs that the economic performance of the project may suffer as a result of slower-than-expected leasing activity or an extended development or marketing timeline. Loans in this category warrant increased monitoring by management. •Substandard: loans in this category may not be fully collected by the Company unless remediation actions are taken. Remediation actions may include obtaining additional collateral or assisting the borrower with asset management activities to prepare the project for sale. The Company will also consider placing the loan on nonaccrual status if it does not believe that additional interest accruals will ultimately be collected. On a quarterly basis, the Company compares the risk inherent in its loans to industry loan loss data experienced during past business cycles. The Company updated the risk ratings for each of its notes receivable as of June 30, 2022 and obtained industry loan loss data relative to these risk ratings. Each of the outstanding loans as of June 30, 2022 was "Pass" rated. At December 31, 2021, the Company reported $126.4 million of notes receivable, net of allowances of $1.0 million. At June 30, 2022, the Company reported $139.4 million of notes receivable, net of allowances of $1.5 million. Changes in the allowance for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands):
________________________________________ (a) The amount as of June 30, 2022 includes $0.5 million of allowance related to the unfunded commitments, which was recorded as Other liabilities on the consolidated balance sheet. The Company places loans on non-accrual status when the loan balance, together with the balance of any senior loan, approximately equals the estimated realizable value of the underlying development project. As of June 30, 2022, the Company had the Exelon note, which bears interest at 3% per annum, on non-accrual status. The principal balance of the note receivable is adequately secured by the seller's partnership interest. As of June 30, 2022 and December 31, 2021, there were no other loans on non-accrual status.
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Construction Contracts |
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Contractors [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction Contracts | Construction Contracts Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of June 30, 2022 during the next twelve months. Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized. The following table summarizes the changes to the balances in the Company’s construction contract costs and estimated earnings in excess of billings account and the billings in excess of construction contract costs and estimated earnings account for the six months ended June 30, 2022 and 2021 (in thousands):
The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable. Pre-contract costs of $1.0 million and $2.2 million were deferred as of June 30, 2022 and December 31, 2021, respectively. Amortization of pre-contract costs for the six months ended June 30, 2022 and 2021 was $0.5 million and $0.2 million, respectively. Construction receivables and payables include retentions, which are amounts that are generally withheld until the completion of the contract or the satisfaction of certain restrictive conditions such as fulfillment guarantees. As of June 30, 2022 and December 31, 2021, construction receivables included retentions of $9.4 million and $3.1 million, respectively. The Company expects to collect substantially all construction receivables outstanding as of June 30, 2022 during the next twelve months. As of June 30, 2022 and December 31, 2021, construction payables included retentions of $10.3 million and $4.2 million, respectively. The Company expects to pay substantially all construction payables outstanding as of June 30, 2022 during the next twelve months. The Company’s net position on uncompleted construction contracts comprised the following as of June 30, 2022 and December 31, 2021 (in thousands):
The above table reflects the net effect of projects closed as of June 30, 2022 and December 31, 2021, respectively. The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of June 30, 2022 and 2021 were as follows (in thousands):
The Company expects to complete a majority of the uncompleted contracts in place as of June 30, 2022 during the next 12 to 24 months.
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Indebtedness |
6 Months Ended |
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Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Credit Facility The Company has a senior credit facility that was amended and restated on October 3, 2019, which provides for a $355.0 million credit facility comprised of a $150.0 million senior unsecured revolving credit facility (the "revolving credit facility") and a $205.0 million senior unsecured term loan facility (the "term loan facility" and, together with the revolving credit facility, the "credit facility"), with a syndicate of banks. The credit facility includes an accordion feature that allows the total commitments to be further increased to $700.0 million, subject to certain conditions, including obtaining commitments from any one or more lenders. The revolving credit facility has a scheduled maturity date of January 24, 2024, with two six-month extension options, subject to certain conditions, including payment of a 0.075% extension fee at each extension. The term loan facility has a scheduled maturity date of January 24, 2025. The revolving credit facility bears interest at the London Inter-Bank Offered Rate ("LIBOR") plus a margin ranging from 1.30% to 1.85% and the term loan facility bears interest at LIBOR plus a margin ranging from 1.25% to 1.80%, in each case depending on the Company's total leverage. The Company is also obligated to pay an unused commitment fee of 0.15% or 0.25% on the unused portions of the commitments under the revolving credit facility, depending on the amount of borrowings under the credit facility. As of June 30, 2022 and December 31, 2021, the outstanding balance on the revolving credit facility was $82.0 million and $5.0 million, respectively. The outstanding balance on the term loan facility was $205.0 million as of both dates. As of June 30, 2022, the effective interest rates on the revolving credit facility and the term loan facility were 3.29% and 3.24%, respectively. The Company may, at any time, voluntarily prepay any loan under the credit facility in whole or in part without premium or penalty. The Operating Partnership is the borrower, and its obligations under the credit facility are guaranteed by the Company and certain of its subsidiaries that are not otherwise prohibited from providing such guaranty. The credit agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Company's ability to borrow under the credit facility is subject to ongoing compliance with a number of financial covenants, affirmative covenants, and other restrictions. The credit agreement includes customary events of default, in certain cases subject to customary cure periods. The occurrence of an event of default, if not cured within the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest, and all other amounts payable under the credit facility to be immediately due and payable. The Company is currently in compliance with all covenants governing the credit facility. Other 2022 Financing Activity On January 5, 2022, the Company contributed $2.6 million to the Harbor Point Parcel 3 joint venture in order to meet the lender's equity funding requirement since a $15.0 million standby letter of credit, which was available for draw down on the revolving credit facility in the event the Company did not meet its equity requirement, expired on January 4, 2022. On January 14, 2022, the Company acquired a 79% membership interest and an additional 11% economic interest in the partnership that owns the mixed-use property known as the Exelon Building. The property was subject to a $156.1 million loan, which the Company immediately refinanced following the acquisition with a new $175.0 million loan. The new loan bears interest at a rate of BSBY plus a spread of 1.50% and will mature on November 1, 2026. On January 19, 2022, the Company paid off the $14.1 million balance of the loan secured by the Delray Beach Plaza shopping center. On March 3, 2022, the Company paid off the $10.3 million balance of the loan secured by the Red Mill West Commons shopping center. On April 25, 2022, Harbor Point Parcel 3, a joint venture to which the Company is party, entered into a construction loan agreement for $161.5 million. On April 25, 2022, Harbor Point Parcel 4, a real estate venture to which the Company is party, entered into a construction loan agreement for $109.7 million. On June 29, 2022, the Company paid off the $1.9 million loan balance associated with North Pointe Phase II in conjunction with the sale of the property leased and occupied by Costco. On June 30, 2022, the Company refinanced the $20.1 million loan secured by Nexton Square. The new $22.5 million loan bears interest at a rate of Secured Overnight Financing Rate ("SOFR") plus a spread of 1.95% (SOFR has a 0.30% floor) and will mature on June 30, 2027. During the six months ended June 30, 2022, the Company borrowed $26.9 million under its existing construction loans to fund new development and construction.
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and other liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of interest rate derivatives in the condensed consolidated statements of comprehensive income. For derivatives that qualify as cash flow hedges, the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. As of June 30, 2022, the Company had the following LIBOR, SOFR, and BSBY interest rate caps ($ in thousands):
________________________________________ (a) Designated as a cash flow hedge. (b) The Company purchased interest rate caps at 1.00% and sold interest rate caps at 3.00%, resulting in interest rate cap corridors of 1.00% and 3.00%. The intended goal of these corridors is to provide a level of protection from the effect of rising interest rates and reduce the all-in cost of the derivative instrument. (c) The Company purchased this interest rate cap corridor during the three months ended June 30, 2022 with an effective date of September 1, 2022. The notional amount represents the maximum notional amount that will eventually be in effect. The notional amount is scheduled to increase over the term of the corridor in accordance with projected borrowings on the associated loan. As of June 30, 2022, the Company held the following floating-to-fixed interest rate swaps ($ in thousands):
________________________________________ (a) Designated as a cash flow hedge. For the interest rate swaps and caps designated as cash flow hedges, realized losses are reclassified out of accumulated other comprehensive loss to interest expense in the condensed consolidated statements of comprehensive income due to payments made to the swap counterparty. During the next 12 months, the Company anticipates recognizing approximately $7.3 million of net hedging gains as reductions to interest expense. These amounts will be reclassified from accumulated other comprehensive gain into earnings to offset the variability of the hedged items during this period. The Company’s derivatives were comprised of the following as of June 30, 2022 and December 31, 2021 (in thousands):
The changes in the fair value of the Company’s derivatives during the three and six months ended June 30, 2022 and 2021 were comprised of the following (in thousands):
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Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity Stockholders’ Equity On March 10, 2020, the Company commenced an at-the-market continuous equity offering program (the "ATM Program") through which the Company may, from time to time, issue and sell shares of its common stock and shares of its 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock (the "Series A Preferred Stock") having an aggregate offering price of up to $300.0 million, to or through its sales agents and, with respect to shares of its common stock, may enter into separate forward sales agreements to or through the forward purchaser. During the six months ended June 30, 2022, the Company issued and sold 475,074 shares of common stock at a weighted average price of $15.21 per share under the ATM Program, receiving net proceeds, after offering costs and commissions, of $7.1 million. During the six months ended June 30, 2022, the Company did not issue any shares of Series A Preferred Stock under the ATM Program. Shares having an aggregate offering price of $205.0 million remained unsold under the ATM Program as of August 4, 2022. On January 11, 2022, the Company completed an underwritten public offering of 4,025,000 shares of common stock, which were pre-purchased from the Company by the underwriter at a purchase price of $14.45 per share of common stock including fees, resulting in net proceeds after offering costs of $58.0 million. Noncontrolling Interests As of June 30, 2022 and December 31, 2021, the Company held a 76.7% and 75.3% common interest in the Operating Partnership, respectively. As of June 30, 2022, the Company also held a preferred interest in the Operating Partnership in the form of preferred units with a liquidation preference of $171.1 million. The Company is the primary beneficiary of the Operating Partnership as it has the power to direct the activities of the Operating Partnership and the rights to absorb 76.7% of the net income of the Operating Partnership. As the primary beneficiary, the Company consolidates the financial position and results of operations of the Operating Partnership. Noncontrolling interests in the Operating Partnership represent units of limited partnership interest in the Operating Partnership not held by the Company. As of June 30, 2022, there were 20,621,336 Class A units of limited partnership interest in the Operating Partnership ("Class A Units") not held by the Company. The Company's financial position and results of operations are the same as those of the Operating Partnership. Additionally, the Operating Partnership owns a majority interest in certain non-wholly-owned operating and development properties. The noncontrolling interest for investment entities of $24.0 million relates to the minority partners' interest in certain joint venture entities as of June 30, 2022, including $23.3 million for minority partners’ interest in the Exelon Building. The noncontrolling interest for consolidated real estate entities was $0.6 million as of December 31, 2021. On January 1, 2022, due to holders of Class A Units tendering an aggregate of 12,149 Class A Units for redemption by the Operating Partnership, the Company elected to satisfy the redemption requests through the issuance of an equal number of shares of common stock. Dividends and Distributions During the six months ended June 30, 2022, the following dividends/distributions were declared or paid:
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Stock-Based Compensation |
6 Months Ended |
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Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s Amended and Restated 2013 Equity Incentive Plan (the "Equity Plan") permits the grant of restricted stock awards, stock options, stock appreciation rights, performance units, and other equity-based awards up to an aggregate of 1,700,000 shares of common stock. As of June 30, 2022, there were 398,307 shares available for issuance under the Equity Plan. During the six months ended June 30, 2022, the Company granted an aggregate of 286,086 shares of restricted stock to employees and non-employee directors with a weighted average grant date fair value of $14.62 per share. Of those shares, 52,088 were surrendered by the employees for income tax withholdings. Employee restricted stock awards generally vest over a period of two years: one-third immediately on the grant date and the remaining two-thirds in equal amounts on the first two anniversaries following the grant date, subject to continued service to the Company. Beginning with grants made in 2021, executive officers' restricted shares generally vest over a period of three years: two-fifths immediately on the grant date and the remaining three-fifths in equal amounts on the first three anniversaries following the grant date, subject to continued service to the Company. Non-employee director restricted stock awards vest either immediately upon grant or over a period of one year, subject to continued service to the Company. Unvested restricted stock awards are entitled to receive dividends from their grant date. During the three months ended June 30, 2022 and 2021, the Company recognized $0.6 million and $0.5 million, respectively, of stock-based compensation cost. During the six months ended June 30, 2022 and 2021, the Company recognized $2.4 million and $1.7 million, respectively, of stock-based compensation cost. As of June 30, 2022, there were 221,693 nonvested restricted shares outstanding; the total unrecognized compensation expense related to nonvested restricted shares was $2.3 million, which the Company expects to recognize over the next 33 months.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 — unobservable inputs Except as disclosed below, the carrying amounts of the Company’s financial instruments approximate their fair values. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps and caps. The Company measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. Financial assets and liabilities whose fair values are not measured at fair value but for which the fair value is disclosed include the Company's notes receivable and indebtedness. The fair value is estimated by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity, credit characteristics, and other terms of the arrangements, which are Level 3 inputs under the fair value hierarchy. In certain cases, the inputs used to estimate the fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. The carrying amounts and fair values of the Company’s financial instruments as of June 30, 2022 and December 31, 2021 were as follows (in thousands):
_______________________________________ (a) The values as of June 30, 2022 and December 31, 2021 include loans reclassified to liabilities related to assets held for sale.
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Related Party Transactions |
6 Months Ended |
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Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company provides general contracting services to certain related party entities that are included in these condensed consolidated financial statements. Revenue and gross profit from construction contracts with these entities for the three months ended June 30, 2021 were $6.3 million and $0.2 million, respectively. Revenue and gross profit from construction contracts with these entities for the six months ended June 30, 2021 were $18.7 million and $0.7 million, respectively. Revenue and gross profit from construction contracts with these entities for the three and six months ended June 30, 2022 were immaterial. There were no outstanding construction receivables due from related parties as of June 30, 2022 compared to $4.1 million outstanding at December 31, 2021. The general contracting services described above include contracts with an aggregate price of $81.6 million with the developer of a mixed-use project, including an apartment building, retail space, and a parking garage located in Virginia Beach, Virginia. The developer is owned in part by certain executives of the Company, not including the Chief Executive Officer and Chief Financial Officer. These contracts were executed in 2019 and were substantially complete as of September 10, 2021. Aggregate gross profit was projected at $3.9 million to the Company, representing a gross profit margin of 5.1% as of June 30, 2022. As part of these contracts and per the requirements of the lender for this project, the Company issued a letter of credit for $9.5 million to secure certain performances of the Company's subsidiary construction company under the contracts, of which $1.9 million remains outstanding as of June 30, 2022. The Company provides general contracting services to the Harbor Point Parcel 3 and Harbor Point Parcel 4 partnerships. See Note 5 for more information. During the three and six months ended June 30, 2022, the Company recognized gross profit of $0.1 million and $0.2 million, respectively, relating to these construction contracts. The Operating Partnership entered into tax protection agreements that indemnify certain directors and executive officers of the Company from their tax liabilities resulting from the potential future sale of certain of the Company’s properties prior to May 13, 2023.
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Commitments and Contingencies |
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings The Company is from time to time involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. The Company currently is a party to various legal proceedings, none of which management expects will have a material adverse effect on the Company’s financial position, results of operations, or liquidity. Management accrues a liability for litigation if an unfavorable outcome is determined to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined to be probable and a range of loss can be reasonably estimated, management accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Management does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on the Company’s financial position or results of operations; however, litigation is subject to inherent uncertainties. Under the Company’s leases, tenants are typically obligated to indemnify the Company from and against all liabilities, costs, and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant. Guarantees In connection with certain of the Company's mezzanine lending activities and equity method investments, the Company has made guarantees to pay portions of certain senior loans of third parties associated with the development projects. The following table summarizes the outstanding guarantees made by the Company as of June 30, 2022 (in thousands):
_______________________________________ (a) As of June 30, 2022, no amounts have been funded on this senior loan. Commitments The Company has a bonding line of credit for its general contracting construction business and is contingently liable under performance and payment bonds, bonds for cancellation of mechanics liens and defect bonds. Such bonds collectively totaled $2.7 million and $2.1 million as of June 30, 2022 and December 31, 2021, respectively. In addition, as of June 30, 2022, the Company has an outstanding letter of credit for $1.9 million to secure certain performances of the Company's subsidiary construction company under a related party project. Unfunded Loan Commitments The Company has certain commitments related to its notes receivable investments that it may be required to fund in the future. The Company is generally obligated to fund these commitments at the request of the borrower or upon the occurrence of events outside of the Company's direct control. As of June 30, 2022, the Company had three notes receivable with a total of $19.3 million of unfunded commitments. If commitments are funded in the future, interest will be charged at rates consistent with the existing investments. As of June 30, 2022, the Company has recorded a $0.5 million CECL allowance that relates to the unfunded commitments, which was recorded as a liability in Other liabilities in the consolidated balance sheet. See Note 6 for more information.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through the date on which this Quarterly Report on Form 10-Q was filed, the date on which these financial statements were issued, and identified the items below for discussion. Real Estate On July 22, 2022, the Company sold The Residences at Annapolis Junction for a sale price of $150.0 million. This property was classified as held for sale as of June 30, 2022. On July 26, 2022, the Company sold the AutoZone and Valvoline outparcels at Sandbridge Commons for a sale price of $3.5 million. The property was classified as held for sale as of June 30, 2022. Indebtedness On July 22, 2022, the Company paid off the $84.4 million loan secured by The Residences at Annapolis Junction in conjunction with the disposition mentioned above. In July 2022, the Company had net paydowns of $31.0 million on the revolving credit facility. Derivative Financial Instruments On July 1, 2022, the Company modified and extended two interest rate caps with total notional amounts of $200.0 million and LIBOR strike rates of 0.50%, which were scheduled to expire on July 1, 2023. The modified agreements establish a SOFR corridor bought at 1.00% and sold at 3.00% on a $200.0 million notional amount, with the expiration date extended to March 1, 2024. The Company did not pay a premium for this modification. On July 5, 2022, the Company modified and extended an interest rate cap with a notional amount of $50.0 million and a LIBOR strike rate of 0.50%, which was scheduled to expire on May 1, 2023. The modified agreement establishes a SOFR corridor bought at 1.00% and sold at 3.00% on a $50.0 million notional amount, with the expiration date extended to January 1, 2024. The Company paid a de minimis premium for this modification. On July 5, 2022, the Company modified and extended the interest rate cap associated with the Chronicle Mill project with a notional amount of $35.1 million and a LIBOR strike rate of 0.50%, which was scheduled to expire on May 1, 2023. The modified agreement establishes a SOFR corridor bought at 1.00% and sold at 3.00% on a $35.1 million notional amount, with the expiration date extended to January 1, 2024. The Company paid a de minimis premium for this modification. Equity On July 1, 2022, due to a holder of Class A Units tendering 10,146 Class A Units for redemption by the Operating Partnership, the Company elected to satisfy the redemption request with a cash payment of $0.1 million. On July 28, 2022, the Company announced that its board of directors declared a cash dividend of $0.19 per common share for the third quarter of 2022. The third quarter dividend will be payable in cash on October 6, 2022 to stockholders of record on September 28, 2022. On July 28, 2022, the Company announced that its board of directors declared a cash dividend of $0.421875 per share of Series A Preferred Stock for the third quarter of 2022. The dividend will be payable in cash on October 14, 2022 to stockholders of record on October 3, 2022.
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Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The condensed consolidated financial statements include the financial position and results of operations of the Company and its consolidated subsidiaries, including the Operating Partnership, its wholly-owned subsidiaries, and any interests in variable interest entities ("VIEs") where the Company has been determined to be the primary beneficiary. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition, and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best judgment after considering past, current, and expected events and economic conditions. Actual results could differ significantly from management’s estimates.
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Reclassifications | Reclassifications Certain items have been reclassified from their prior year classifications to conform to the current year presentation. These reclassifications had no effect on net income or stockholders' equity as previously reported.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted in 2022 Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04 Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848), which became effective on March 12, 2020 and generally can be applied through December 31, 2022. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. This Accounting Standards Update ("ASU") also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by reference rate reform. Application of the guidance is optional and only available in certain situations. In January 2021, FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848). The amendments in this standard are elective and principally apply to entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Similar to ASU No. 2020-04, provisions of this ASU are effective upon issuance and generally can be applied through December 31, 2022. During the six months ended June 30, 2022, the Company elected to apply the practical expedients to modifications of qualifying contracts as continuations of the existing contracts rather than as new contracts. The adoption of the new guidance did not have a material impact on the consolidated financial statements. Management will continue to evaluate the impacts of reference rate reform. Earnings Per Share In August 2020, FASB issued ASU 2020-06 an update to ASC Topic 470 and ASC Topic 815, which became effective January 1, 2022. ASU 2020-06 simplifies the accounting for convertible instruments and removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception. This ASU also simplifies diluted earnings per share calculation in certain areas and provides updated disclosure requirements. The Company adopted ASU 2020-06 effective January 1, 2022 and the adoption did not have a material impact on the consolidated financial statements.
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Segments | Segments Net operating income (segment revenues minus segment expenses) is the measure used by the Company’s chief operating decision-maker to assess segment performance. Net operating income is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, net operating income should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate net operating income in the same manner. The Company considers net operating income to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate and construction businesses.
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Construction Contracts | Construction Contracts Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of June 30, 2022 during the next twelve months. Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized. The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable.
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Derivative Financial Instruments | Derivative Financial Instruments The Company enters into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and other liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of interest rate derivatives in the condensed consolidated statements of comprehensive income. For derivatives that qualify as cash flow hedges, the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings.
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Legal Proceedings | Legal Proceedings The Company is from time to time involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. The Company currently is a party to various legal proceedings, none of which management expects will have a material adverse effect on the Company’s financial position, results of operations, or liquidity. Management accrues a liability for litigation if an unfavorable outcome is determined to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined to be probable and a range of loss can be reasonably estimated, management accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Management does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on the Company’s financial position or results of operations; however, litigation is subject to inherent uncertainties. Under the Company’s leases, tenants are typically obligated to indemnify the Company from and against all liabilities, costs, and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant.
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Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 — unobservable inputs Except as disclosed below, the carrying amounts of the Company’s financial instruments approximate their fair values. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps and caps. The Company measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. Financial assets and liabilities whose fair values are not measured at fair value but for which the fair value is disclosed include the Company's notes receivable and indebtedness. The fair value is estimated by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity, credit characteristics, and other terms of the arrangements, which are Level 3 inputs under the fair value hierarchy. In certain cases, the inputs used to estimate the fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments.
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Segments (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net operating income of reportable segments | Net operating income of the Company’s reportable segments for the three and six months ended June 30, 2022 and 2021 was as follows (in thousands):
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Reconciliation of net operating income to net income | The following table reconciles net operating income to net income, the most directly comparable GAAP measure, for the three and six months ended June 30, 2022 and 2021 (in thousands):
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of rental revenue | Rental revenue for the three and six months ended June 30, 2022 and 2021 comprised the following (in thousands):
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Real Estate Investment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the purchase price allocation | The following table summarizes the purchase price allocation (including acquisition costs) based on the relative fair value of the assets acquired for the two operating properties purchased during the six months ended June 30, 2022 (in thousands):
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Notes Receivable and Current Expected Credit Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of mezzanine loans | The Company had the following notes receivable outstanding as of June 30, 2022 and December 31, 2021 ($ in thousands):
________________________________________ (a) Outstanding loan amounts include any accrued and unpaid interest, as applicable. (b) This amount includes interest reserves. (c) The amount excludes $0.5 million of Current Expected Credit Losses ("CECL") allowance that relates to the unfunded commitments, which was recorded as a liability under Other liabilities in the consolidated balance sheet.
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Summary of interest income | The Company recognized interest income for the three and six months ended June 30, 2022 and 2021 as follows (in thousands):
________________________________________ (a) Includes recognition of interest income related to fee amortization. (b) Includes prepayment premium of $2.4 million from early payoff of the loan.
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Allowance for credit losses on financing receivables | Changes in the allowance for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands):
________________________________________ (a) The amount as of June 30, 2022 includes $0.5 million of allowance related to the unfunded commitments, which was recorded as Other liabilities on the consolidated balance sheet.
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Construction Contracts (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractors [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of balances and changes of construction contracts | The following table summarizes the changes to the balances in the Company’s construction contract costs and estimated earnings in excess of billings account and the billings in excess of construction contract costs and estimated earnings account for the six months ended June 30, 2022 and 2021 (in thousands):
The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of June 30, 2022 and 2021 were as follows (in thousands):
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Net position of uncompleted construction contracts | The Company’s net position on uncompleted construction contracts comprised the following as of June 30, 2022 and December 31, 2021 (in thousands):
The above table reflects the net effect of projects closed as of June 30, 2022 and December 31, 2021, respectively.
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Derivative Financial Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of LIBOR interest rate caps and floating to fixed interest rate swaps | As of June 30, 2022, the Company had the following LIBOR, SOFR, and BSBY interest rate caps ($ in thousands):
________________________________________ (a) Designated as a cash flow hedge. (b) The Company purchased interest rate caps at 1.00% and sold interest rate caps at 3.00%, resulting in interest rate cap corridors of 1.00% and 3.00%. The intended goal of these corridors is to provide a level of protection from the effect of rising interest rates and reduce the all-in cost of the derivative instrument. (c) The Company purchased this interest rate cap corridor during the three months ended June 30, 2022 with an effective date of September 1, 2022. The notional amount represents the maximum notional amount that will eventually be in effect. The notional amount is scheduled to increase over the term of the corridor in accordance with projected borrowings on the associated loan. As of June 30, 2022, the Company held the following floating-to-fixed interest rate swaps ($ in thousands):
________________________________________ (a) Designated as a cash flow hedge.
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Schedule of derivatives | The Company’s derivatives were comprised of the following as of June 30, 2022 and December 31, 2021 (in thousands):
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Schedule of changes in fair value of derivatives | The changes in the fair value of the Company’s derivatives during the three and six months ended June 30, 2022 and 2021 were comprised of the following (in thousands):
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Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions | During the six months ended June 30, 2022, the following dividends/distributions were declared or paid:
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Fair Value of Financial Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying amounts and fair values of financial instruments measured based on level two inputs | The carrying amounts and fair values of the Company’s financial instruments as of June 30, 2022 and December 31, 2021 were as follows (in thousands):
_______________________________________ (a) The values as of June 30, 2022 and December 31, 2021 include loans reclassified to liabilities related to assets held for sale.
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Commitment and Contingencies (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of guarantees | The following table summarizes the outstanding guarantees made by the Company as of June 30, 2022 (in thousands):
_______________________________________ (a) As of June 30, 2022, no amounts have been funded on this senior loan.
|
Business of Organization - Additional Information (Details) - property |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Business And Organization [Line Items] | ||
Percentage of operating partnership held | 76.70% | 75.30% |
Operating Property | ||
Business And Organization [Line Items] | ||
Number of real estate properties | 55 | |
Development Property | ||
Business And Organization [Line Items] | ||
Number of real estate properties | 4 | |
General Partner | ||
Business And Organization [Line Items] | ||
Percentage of operating partnership held | 0.10% |
Segments - Net Income of Reportable Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Segment Reporting Information | ||||
Rental revenues | $ 55,224 | $ 47,378 | $ 109,859 | $ 93,119 |
Rental expenses | 12,685 | 11,292 | 25,354 | 22,124 |
Real estate taxes | 5,837 | 5,465 | 11,241 | 10,771 |
Segment revenues | 45,273 | 18,408 | 69,923 | 53,971 |
Gross profit | 38,557 | 30,898 | 75,948 | 61,789 |
General contracting and real estate services | ||||
Segment Reporting Information | ||||
Segment revenues | 45,273 | 18,408 | 69,923 | 53,971 |
Segment expenses | 43,418 | 18,131 | 67,239 | 52,406 |
Gross profit | 1,855 | 277 | 2,684 | 1,565 |
Office real estate | ||||
Segment Reporting Information | ||||
Rental revenues | 18,314 | 11,756 | 35,337 | 23,391 |
Rental expenses | 4,600 | 2,938 | 8,740 | 5,813 |
Real estate taxes | 2,035 | 1,413 | 3,539 | 2,771 |
Gross profit | 11,679 | 7,405 | 23,058 | 14,807 |
Retail real estate | ||||
Segment Reporting Information | ||||
Rental revenues | 21,544 | 19,204 | 42,974 | 37,459 |
Rental expenses | 3,333 | 3,013 | 6,834 | 5,849 |
Real estate taxes | 2,271 | 2,180 | 4,509 | 4,207 |
Gross profit | 15,940 | 14,011 | 31,631 | 27,403 |
Multifamily residential real estate | ||||
Segment Reporting Information | ||||
Rental revenues | 15,366 | 16,418 | 31,548 | 32,269 |
Rental expenses | 4,752 | 5,341 | 9,780 | 10,462 |
Real estate taxes | 1,531 | 1,872 | 3,193 | 3,793 |
Gross profit | $ 9,083 | $ 9,205 | $ 18,575 | $ 18,014 |
Segments - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Segment Reporting Information | ||||
General contracting and real estate services revenues | $ 45,273 | $ 18,408 | $ 69,923 | $ 53,971 |
General contracting and real estate services | ||||
Segment Reporting Information | ||||
General contracting and real estate services revenues | 45,273 | 18,408 | 69,923 | 53,971 |
General contracting and real estate services expenses | 43,418 | 18,131 | 67,239 | 52,406 |
General contracting and real estate services | Intercompany Eliminations | ||||
Segment Reporting Information | ||||
General contracting and real estate services revenues | 14,200 | 5,400 | 22,800 | 7,400 |
General contracting and real estate services expenses | $ 14,000 | $ 5,400 | $ 22,500 | $ 7,400 |
Segments - Reconciliation of Net Operating Income to Net Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Segment Reporting [Abstract] | ||||||
Net operating income | $ 38,557 | $ 30,898 | $ 75,948 | $ 61,789 | ||
Depreciation and amortization | (18,781) | (17,285) | (37,338) | (35,351) | ||
Amortization of right-of-use assets - finance leases | (277) | (278) | (555) | (467) | ||
General and administrative expenses | (3,617) | (3,487) | (8,325) | (7,508) | ||
Acquisition, development and other pursuit costs | (26) | (32) | (37) | (103) | ||
Impairment charges | (286) | (83) | (333) | (3,122) | ||
Gain on real estate dispositions, net | 19,493 | 0 | 19,493 | 3,717 | ||
Interest income | 3,352 | 6,746 | 6,920 | 10,862 | ||
Interest expense | (9,371) | (8,418) | (18,402) | (16,393) | ||
Loss on extinguishment of debt | (618) | 0 | (776) | 0 | ||
Change in fair value of derivatives and other | 2,548 | 314 | 6,730 | 707 | ||
Unrealized credit loss provision | (295) | (388) | (900) | (333) | ||
Other income (expense), net | 68 | 7 | 297 | 186 | ||
Income tax benefit | 20 | 461 | 321 | 480 | ||
Net income | $ 30,767 | $ 12,276 | $ 8,455 | $ 6,009 | $ 43,043 | $ 14,464 |
Leases - Additional Information (Details) |
6 Months Ended |
---|---|
Jun. 30, 2022
lease
extension
property
| |
Lessee, Lease, Description [Line Items] | |
Number of ground leases | 8 |
Number of properties subject to ground leases | property | 7 |
Number of operating leases | 5 |
Number of finance leases | 3 |
Number of options to extend, more than | extension | 1 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 25 years |
Leases - Lessor, Rental Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Leases [Abstract] | ||||
Base rent and tenant charges | $ 53,424 | $ 45,686 | $ 106,303 | $ 89,284 |
Accrued straight-line rental adjustment | 1,544 | 1,436 | 3,036 | 3,327 |
Lease incentive amortization | (173) | (159) | (346) | (318) |
Above/below market lease amortization | 429 | 415 | 866 | 826 |
Total rental revenue | $ 55,224 | $ 47,378 | $ 109,859 | $ 93,119 |
Real Estate Investment - Property Acquisitions and Dispositions (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2022
USD ($)
|
Apr. 25, 2022
USD ($)
|
Apr. 01, 2022
USD ($)
|
Jan. 14, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
Jun. 30, 2022
USD ($)
property
|
Jun. 30, 2021
USD ($)
|
Apr. 11, 2022 |
Apr. 07, 2022 |
Jan. 11, 2022 |
|
Real Estate Properties [Line Items] | ||||||||||
Acquisitions of real estate investments, net of cash received | $ 93,313 | $ 28,173 | ||||||||
Number of operating properties acquired | property | 2 | |||||||||
Dispositions of real estate investments, net of selling costs | $ 101,812 | $ 9,156 | ||||||||
Hoffler Place and Summit Place | Hoffler Place and Summit Place Disposal Group | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Impairment of Real Estate | $ 18,300 | |||||||||
Minimum | Interest rate caps | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Strike Rate | 1.00% | |||||||||
Maximum | Interest rate caps | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Strike Rate | 3.00% | |||||||||
The Residences At Annapolis Junction | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Interests in equity method investments | 95.00% | |||||||||
Ten Tryon project | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Percentage of voting interests acquired | 20.00% | |||||||||
Cash payment | $ 3,900 | |||||||||
The Residences At Annapolis Junction | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Percentage of voting interests acquired | 16.00% | |||||||||
Hoffler Place | Disposed of by Sale | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Dispositions of real estate investments, net of selling costs | $ 43,100 | |||||||||
Loss on sales of investment real estate | $ 800 | |||||||||
Summit Place | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Dispositions of real estate investments, net of selling costs | $ 37,800 | |||||||||
Summit Place | Disposed of by Sale | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Loss on sales of investment real estate | $ 500 | |||||||||
North Point | Disposed of by Sale | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Dispositions of real estate investments, net of selling costs | $ 23,900 | |||||||||
Loss on sales of investment real estate | $ 20,900 | |||||||||
BSBY | Interest rate caps | Not designated as accounting hedges | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Strike Rate | 4.00% | |||||||||
Exelon building | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Percentage of membership interest acquired | 79.00% | |||||||||
Percentage of economic interest acquired | 11.00% | |||||||||
Acquisitions of real estate investments, net of cash received | $ 92,200 | |||||||||
Loan issued to seller | 12,800 | |||||||||
Liabilities incurred | 156,100 | |||||||||
Debt instrument, face amount | $ 175,000 | |||||||||
Exelon building | BSBY | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Stated interest rate, basis spread on variable rate | 1.50% | |||||||||
Exelon building | BSBY | Interest rate caps | Not designated as accounting hedges | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Strike Rate | 4.00% | |||||||||
Exelon building | BSBY | Minimum | Interest rate caps | Not designated as accounting hedges | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Strike Rate | 1.00% | |||||||||
Exelon building | BSBY | Maximum | Interest rate caps | Not designated as accounting hedges | ||||||||||
Real Estate Properties [Line Items] | ||||||||||
Strike Rate | 3.00% |
Real Estate Investment - Summary of the Purchase Price Allocation (Details) - Exelon building $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Land | $ 23,317 |
Above-market leases | 306 |
Net assets acquired | 272,385 |
In-place leases | |
Business Acquisition [Line Items] | |
In-place leases | 53,705 |
Site improvements | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | 141 |
Building | |
Business Acquisition [Line Items] | |
Property, plant, and equipment | $ 194,916 |
Real Estate Investment - Equity Method Investments (Details) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Apr. 01, 2022 |
Dec. 31, 2021 |
|
Real Estate [Line Items] | ||||
Investment in equity method investment during period | $ 40,333 | $ 5,921 | ||
Equity method investments | $ 53,260 | $ 12,685 | ||
Harbor Point Parcel 3 | Beatty Development Group | ||||
Real Estate [Line Items] | ||||
Interests in equity method investments | 50.00% | |||
Investment in equity method investment during period | $ 21,100 | |||
Maximum commitment | 39,000 | |||
Equity method investments | $ 33,800 | $ 12,700 | ||
Harbor Point Parcel 4 | Beatty Development Group | ||||
Real Estate [Line Items] | ||||
Interests in equity method investments | 78.00% | 78.00% | ||
Investment in equity method investment during period | $ 19,700 | |||
Maximum commitment | 100,000 | |||
Equity method investments | $ 19,700 | |||
Potential increase in ownership percentage | 90.00% |
Notes Receivable and Current Expected Credit Losses (Summary of Mezzanine Loans) (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Mar. 23, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Notes receivable guarantee premium | $ 1,345 | $ 1,243 | |
Allowance for credit losses | (1,452) | (994) | |
Total notes receivable | 139,383 | 126,429 | |
Mezzanine loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Notes receivable | 119,201 | 118,946 | |
Maximum loan commitment | 149,909 | ||
Mezzanine loan | City Park 2 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Notes receivable | 8,014 | 0 | |
Maximum loan commitment | $ 20,594 | $ 20,600 | |
Interest rate | 13.00% | 13.00% | |
Mezzanine loan | Interlock Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Notes receivable | $ 86,334 | 95,379 | |
Maximum loan commitment | $ 107,000 | ||
Interest rate | 15.00% | ||
Mezzanine loan | Nexton Multifamily | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Notes receivable | $ 24,853 | 23,567 | |
Maximum loan commitment | $ 22,315 | ||
Interest rate | 11.00% | ||
Mezzanine loan | Exelon building | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest rate | 3.00% | ||
Exelon note receivable | Exelon building | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Notes receivable | $ 12,834 | 0 | |
Other notes receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Notes receivable | 7,455 | $ 7,234 | |
Unfunded loan commitment | Other liabilities | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit losses | $ (500) |
Notes Receivable and Current Expected Credit Losses (Schedule of Interest on the Mezzanine Loans) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | $ 3,352 | $ 6,746 | $ 6,920 | $ 10,862 |
Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 3,239 | 6,639 | 6,697 | 10,650 |
Other notes receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 113 | 107 | 223 | 212 |
City Park 2 | Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 206 | 0 | 224 | 0 |
Interlock Commercial | Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 2,361 | 3,310 | 5,187 | 6,384 |
Nexton Multifamily | Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 672 | 261 | 1,286 | 261 |
Solis Apartments at Interlock | Mezzanine loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | $ 0 | 3,068 | $ 0 | 4,005 |
Payment for debt extinguishment | $ 2,400 | $ 2,400 |
Notes Receivable and Current Expected Credit Losses (Additional Information) (Details) |
1 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Feb. 28, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
loan
|
Jun. 30, 2021
USD ($)
|
Mar. 23, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable paydowns | $ 11,545,000 | $ 38,490,000 | |||
Notes receivable, net | 139,383,000 | $ 126,429,000 | |||
Allowance for credit losses | 1,452,000 | 994,000 | |||
Notes receivable, nonaccrual status | 0 | $ 0 | |||
Mezzanine loan | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Maximum loan commitment | $ 149,909,000 | ||||
Number of financial instruments | loan | 3 | ||||
Mezzanine loan | City Park 2 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Maximum loan commitment | $ 20,594,000 | $ 20,600,000 | |||
Interest rate | 13.00% | 13.00% | |||
Mezzanine loan | Interlock Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Maximum loan commitment | $ 107,000,000 | ||||
Interest rate | 15.00% | ||||
Repayment received | $ 13,500,000 | ||||
Notes receivable paydowns | 11,100,000 | ||||
Interest payments received | $ 2,400,000 | ||||
Mezzanine loan | Exelon building | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Interest rate | 3.00% |
Notes Receivable and Current Expected Credit Losses (Changes in Allowance for Credit Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | $ 1,599 | $ 1,741 | $ 994 | $ 2,584 | |
Unrealized credit loss provision | 295 | 388 | 900 | 333 | |
Extinguishment due to acquisition | 0 | 0 | 0 | (788) | |
Ending balance | 1,894 | $ 2,129 | 1,894 | $ 2,129 | |
Allowance for credit losses | $ 1,452 | $ 1,452 | $ 994 |
Construction Contracts - Summary of Costs in Excess of Billings and Billings in Excess of Costs (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Construction contract costs and estimated earnings in excess of billings | ||
Beginning balance | $ 243 | $ 138 |
Transferred to receivables | (361) | (464) |
Construction contract costs and estimated earnings not billed during the period | 493 | 85 |
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion | 118 | 326 |
Ending balance | 493 | 85 |
Billings in excess of construction contract costs and estimated earnings | ||
Beginning balance | 4,881 | 6,088 |
Revenue recognized that was included in the balance at the beginning of the period | (4,881) | (6,088) |
Increases due to new billings, excluding amounts recognized as revenue during the period | 15,442 | 4,191 |
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion | (367) | (54) |
Ending balance | $ 15,075 | $ 4,137 |
Construction Contracts - Additional Information (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Construction receivables retentions | $ 9.4 | $ 3.1 | |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Expected completion of contracts | 12 months | ||
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Expected completion of contracts | 24 months | ||
Construction | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Retentions | $ 10.3 | 4.2 | |
Portion Attributable To Pending Contracts | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Deferred pre-contract costs | 1.0 | $ 2.2 | |
Amortization of pre-contract costs | $ 0.5 | $ 0.2 |
Construction Contracts - Summary of Net Position (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|
Contractors [Abstract] | ||||
Costs incurred on uncompleted construction contracts | $ 411,547 | $ 379,993 | ||
Estimated earnings | 16,423 | 15,115 | ||
Billings | (442,552) | (399,746) | ||
Net position | (14,582) | (4,638) | ||
Construction contract costs and estimated earnings in excess of billings | 493 | 243 | $ 85 | $ 138 |
Billings in excess of construction contract costs and estimated earnings | $ (15,075) | $ (4,881) | $ (4,137) | $ (6,088) |
Construction Contracts - Summary of Backlog (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Revenue, Remaining Performance Obligation [Roll Forward] | ||||
Beginning backlog | $ 419,439 | $ 38,838 | $ 215,518 | $ 71,258 |
New contracts/change orders | 167,143 | 50,278 | 395,746 | 53,402 |
Work performed | (45,368) | (18,897) | (70,050) | (54,441) |
Ending backlog | $ 541,214 | $ 70,219 | $ 541,214 | $ 70,219 |
Indebtedness - Additional Information (Details) |
6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022
USD ($)
|
Jun. 29, 2022
USD ($)
|
Apr. 25, 2022
USD ($)
|
Mar. 03, 2022
USD ($)
|
Jan. 19, 2022
USD ($)
|
Jan. 14, 2022
USD ($)
|
Jan. 05, 2022
USD ($)
|
Oct. 03, 2019
USD ($)
extension
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2021
USD ($)
|
Jan. 04, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Indebtedness | ||||||||||||
Investment in equity method investment during period | $ 40,333,000 | $ 5,921,000 | ||||||||||
Long-term debt | $ 1,080,664,000 | $ 1,080,664,000 | $ 917,556,000 | |||||||||
Exelon building | ||||||||||||
Indebtedness | ||||||||||||
Percentage of membership interest acquired | 79.00% | |||||||||||
Percentage of economic interest acquired | 11.00% | |||||||||||
Liabilities incurred | $ 156,100,000 | |||||||||||
Debt instrument, face amount | $ 175,000,000 | |||||||||||
Harbor Point Parcel 3 partnership | ||||||||||||
Indebtedness | ||||||||||||
Investment in equity method investment during period | $ 2,600,000 | |||||||||||
Credit facility, amount outstanding | $ 15,000,000 | |||||||||||
BSBY | Exelon building | ||||||||||||
Indebtedness | ||||||||||||
Stated interest rate, basis spread on variable rate | 1.50% | |||||||||||
Minimum | Revolving credit facility | ||||||||||||
Indebtedness | ||||||||||||
Basis points on unused commitment fee | 0.15% | |||||||||||
Maximum | Revolving credit facility | ||||||||||||
Indebtedness | ||||||||||||
Basis points on unused commitment fee | 0.25% | |||||||||||
New credit facility | ||||||||||||
Indebtedness | ||||||||||||
Aggregate capacity under the credit facility | $ 355,000,000 | |||||||||||
New credit facility | Revolving credit facility | ||||||||||||
Indebtedness | ||||||||||||
Aggregate capacity under the credit facility | 150,000,000 | |||||||||||
Accordion feature maximum borrowing capacity | $ 700,000,000 | |||||||||||
Number of extension options | extension | 2 | |||||||||||
Duration of extension option | 6 months | |||||||||||
Extension fee percentage | 0.075% | |||||||||||
Line of credit, amount outstanding | $ 82,000,000 | $ 82,000,000 | 5,000,000 | |||||||||
Interest rate on credit facility as of end of period | 3.29% | 3.29% | ||||||||||
New credit facility | Term loan facility | ||||||||||||
Indebtedness | ||||||||||||
Aggregate capacity under the credit facility | $ 205,000,000 | |||||||||||
Line of credit, amount outstanding | $ 205,000,000 | $ 205,000,000 | $ 205,000,000 | |||||||||
Interest rate on credit facility as of end of period | 3.24% | 3.24% | ||||||||||
New credit facility | Minimum | Revolving credit facility | LIBOR | ||||||||||||
Indebtedness | ||||||||||||
Stated interest rate, basis spread on variable rate | 1.30% | |||||||||||
New credit facility | Minimum | Term loan facility | LIBOR | ||||||||||||
Indebtedness | ||||||||||||
Stated interest rate, basis spread on variable rate | 1.25% | |||||||||||
New credit facility | Maximum | Revolving credit facility | LIBOR | ||||||||||||
Indebtedness | ||||||||||||
Stated interest rate, basis spread on variable rate | 1.85% | |||||||||||
New credit facility | Maximum | Term loan facility | LIBOR | ||||||||||||
Indebtedness | ||||||||||||
Stated interest rate, basis spread on variable rate | 1.80% | |||||||||||
Secured debt | Delray Beach Plaza | ||||||||||||
Indebtedness | ||||||||||||
Extinguishment of debt, amount | $ 14,100,000 | |||||||||||
Secured debt | Red Mill West Commons | ||||||||||||
Indebtedness | ||||||||||||
Extinguishment of debt, amount | $ 10,300,000 | |||||||||||
Secured debt | Harbor Point Parcel 4 | ||||||||||||
Indebtedness | ||||||||||||
Extinguishment of debt, amount | $ 109,700,000 | |||||||||||
Secured debt | Nexton Square | ||||||||||||
Indebtedness | ||||||||||||
Repayments of long-term debt | $ 20,100,000 | |||||||||||
Long-term debt | $ 22,500,000 | $ 22,500,000 | ||||||||||
Secured debt | North Point | ||||||||||||
Indebtedness | ||||||||||||
Extinguishment of debt, amount | $ 1,900,000 | |||||||||||
Secured debt | Secured Overnight Financing Rate (SOFR) | Nexton Square | ||||||||||||
Indebtedness | ||||||||||||
Stated interest rate, basis spread on variable rate | 1.95% | |||||||||||
Secured debt | Minimum | Secured Overnight Financing Rate (SOFR) | Nexton Square | ||||||||||||
Indebtedness | ||||||||||||
Stated interest rate, basis spread on variable rate | 0.30% | |||||||||||
Construction loans | ||||||||||||
Indebtedness | ||||||||||||
Borrowings under construction loans | $ 26,900,000 | |||||||||||
Construction loans | Harbor Point Parcel 3 | ||||||||||||
Indebtedness | ||||||||||||
Debt instrument, face amount | $ 161,500,000 |
Derivative Financial Instruments Derivative Financial Instruments - Schedule of LIBOR interest rate caps (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Apr. 07, 2022 |
Jan. 11, 2022 |
Dec. 31, 2021 |
Jun. 16, 2021 |
May 05, 2021 |
Mar. 04, 2021 |
Feb. 02, 2021 |
Nov. 01, 2020 |
Jul. 01, 2020 |
---|---|---|---|---|---|---|---|---|---|---|
Derivative [Line Items] | ||||||||||
Notional Amount | $ 1,123,710 | $ 1,073,587 | ||||||||
Interest rate caps | ||||||||||
Derivative [Line Items] | ||||||||||
Cap rate purchased, interest rate | 1.00% | |||||||||
Interest rate caps | Minimum | ||||||||||
Derivative [Line Items] | ||||||||||
Strike Rate | 1.00% | |||||||||
Interest rate caps | Maximum | ||||||||||
Derivative [Line Items] | ||||||||||
Strike Rate | 3.00% | |||||||||
Interest rate caps | LIBOR | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 907,516 | |||||||||
Premium Paid | $ 5,741 | |||||||||
Interest rate cap 0.50% LIBOR one | LIBOR | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 50,000 | |||||||||
Strike Rate | 0.50% | |||||||||
Interest rate cap 0.50% LIBOR two | LIBOR | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 35,100 | |||||||||
Strike Rate | 0.50% | |||||||||
Interest Rate Cap Two | ||||||||||
Derivative [Line Items] | ||||||||||
Cap rate sold, interest rate | 3.00% | |||||||||
Designated as accounting hedge | Interest rate caps | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 360,472 | 384,375 | ||||||||
Designated as accounting hedge | Interest rate caps | LIBOR | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 100,000 | |||||||||
Strike Rate | 0.50% | |||||||||
Premium Paid | $ 232 | |||||||||
Designated as accounting hedge | Interest rate caps | Secured Overnight Financing Rate (SOFR) | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | 73,562 | $ 84,375 | ||||||||
Strike Rate | 1.84% | |||||||||
Premium Paid | $ 1,370 | $ 91 | ||||||||
Designated as accounting hedge | Interest rate caps | Secured Overnight Financing Rate (SOFR) | Minimum | ||||||||||
Derivative [Line Items] | ||||||||||
Strike Rate | 1.00% | |||||||||
Designated as accounting hedge | Interest rate caps | Secured Overnight Financing Rate (SOFR) | Maximum | ||||||||||
Derivative [Line Items] | ||||||||||
Strike Rate | 3.00% | |||||||||
Designated as accounting hedge | Interest rate caps | BSBY | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 175,000 | |||||||||
Premium Paid | $ 3,595 | |||||||||
Designated as accounting hedge | Interest rate caps | BSBY | Minimum | ||||||||||
Derivative [Line Items] | ||||||||||
Strike Rate | 1.00% | |||||||||
Designated as accounting hedge | Interest rate caps | BSBY | Maximum | ||||||||||
Derivative [Line Items] | ||||||||||
Strike Rate | 3.00% | |||||||||
Not designated as accounting hedges | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 524,579 | 449,579 | ||||||||
Not designated as accounting hedges | Interest rate caps | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 474,579 | $ 399,579 | ||||||||
Not designated as accounting hedges | Interest rate caps | LIBOR | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 100,000 | $ 14,479 | $ 100,000 | |||||||
Strike Rate | 0.50% | 2.50% | 0.50% | |||||||
Premium Paid | $ 120 | $ 4 | $ 45 | |||||||
Not designated as accounting hedges | Interest rate caps | BSBY | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 175,000 | |||||||||
Strike Rate | 4.00% | |||||||||
Premium Paid | $ 154 | |||||||||
Not designated as accounting hedges | Interest rate cap 0.50% LIBOR one | LIBOR | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 50,000 | |||||||||
Strike Rate | 0.50% | |||||||||
Premium Paid | $ 75 | |||||||||
Not designated as accounting hedges | Interest rate cap 0.50% LIBOR two | LIBOR | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 35,100 | |||||||||
Strike Rate | 0.50% | |||||||||
Premium Paid | $ 55 |
Derivative Financial Instruments - Floating-to-Fixed Interest Rate Swaps (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Derivative [Line Items] | ||
Notional amount | $ 1,123,710 | $ 1,073,587 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 288,659 | |
Not designated as accounting hedges | ||
Derivative [Line Items] | ||
Notional amount | 524,579 | 449,579 |
Not designated as accounting hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 50,000 | 50,000 |
Not designated as accounting hedges | Senior Unsecured Term Loan 2.78% | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 50,000 | |
Fixed interest rate | 2.78% | |
Effective interest rate | 4.23% | |
Designated as accounting hedge | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 238,659 | $ 239,633 |
Designated as accounting hedge | Senior Unsecured Term Loan 2.26% | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 50,000 | |
Fixed interest rate | 2.26% | |
Effective interest rate | 3.71% | |
Designated as accounting hedge | 249 Central Park Retail, South Retail, and Fountain Plaza Retail | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 33,115 | |
Fixed interest rate | 2.25% | |
Effective interest rate | 3.85% | |
Designated as accounting hedge | Senior Unsecured Term Loan 3.02% | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 10,500 | |
Fixed interest rate | 3.02% | |
Effective interest rate | 4.47% | |
Designated as accounting hedge | Senior Unsecured Term Loan 0.50%, Term Loan One | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 25,000 | |
Fixed interest rate | 0.50% | |
Effective interest rate | 1.95% | |
Designated as accounting hedge | Senior Unsecured Term Loan 0.50%, Term Loan Two | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 25,000 | |
Fixed interest rate | 0.50% | |
Effective interest rate | 1.95% | |
Designated as accounting hedge | Senior Unsecured Term Loan 0.55% | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 25,000 | |
Fixed interest rate | 0.55% | |
Effective interest rate | 2.00% | |
Designated as accounting hedge | Thames Street Wharf | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 70,044 | |
Fixed interest rate | 1.05% | |
Effective interest rate | 2.35% |
Derivative Financial Instruments - Additional Information (Details) $ in Millions |
Jun. 30, 2022
USD ($)
|
---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain (loss) reclassified during next 12 months | $ 7.3 |
Derivative Financial Instruments - Schedule of Derivatives (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Derivative [Line Items] | ||
Notional amount | $ 1,123,710 | $ 1,073,587 |
Asset, Fair Value | 24,270 | 2,926 |
Liability, Fair Value | 0 | (3,467) |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 288,659 | |
Not designated as accounting hedges | ||
Derivative [Line Items] | ||
Notional amount | 524,579 | 449,579 |
Asset, Fair Value | 6,609 | 1,019 |
Liability, Fair Value | 0 | (1,454) |
Not designated as accounting hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 50,000 | 50,000 |
Asset, Fair Value | 90 | 0 |
Liability, Fair Value | 0 | (1,454) |
Not designated as accounting hedges | Interest rate caps | ||
Derivative [Line Items] | ||
Notional amount | 474,579 | 399,579 |
Asset, Fair Value | 6,519 | 1,019 |
Liability, Fair Value | 0 | 0 |
Designated as accounting hedge | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 238,659 | 239,633 |
Asset, Fair Value | 8,453 | 1,317 |
Liability, Fair Value | 0 | (2,013) |
Designated as accounting hedge | Interest rate caps | ||
Derivative [Line Items] | ||
Notional amount | 360,472 | 384,375 |
Asset, Fair Value | 9,208 | 590 |
Liability, Fair Value | $ 0 | $ 0 |
Derivative Financial Instruments - Change in Fair Value of Derivatives (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Derivative [Line Items] | ||||||
Change in fair value of derivatives and other | $ 2,674 | $ 348 | $ 6,891 | $ 775 | ||
Unrealized cash flow hedge gains (losses) | 3,950 | $ 7,722 | (469) | $ 2,276 | 11,672 | 1,807 |
Total change in fair value of interest rate derivatives | 6,624 | (121) | 18,563 | 2,582 | ||
Interest rate swaps | ||||||
Derivative [Line Items] | ||||||
Total change in fair value of interest rate derivatives | 2,807 | (86) | 9,564 | 2,375 | ||
Interest rate caps | ||||||
Derivative [Line Items] | ||||||
Total change in fair value of interest rate derivatives | $ 3,817 | $ (35) | $ 8,999 | $ 207 |
Equity - Additional Information (Details) - USD ($) |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Aug. 04, 2022 |
Jan. 11, 2022 |
Jan. 01, 2022 |
Mar. 10, 2020 |
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Class of Stock [Line Items] | ||||||
Percentage of operating partnership held | 76.70% | 75.30% | ||||
Preferred stock issued | $ 171,085,000 | $ 171,085,000 | ||||
Noncontrolling interests in investment entities | Operating Partnership | ||||||
Class of Stock [Line Items] | ||||||
Ownership interest percentage in properties | 24,000,000 | $ 600,000 | ||||
Noncontrolling interests in investment entities | Operating Partnership | Exelon building | ||||||
Class of Stock [Line Items] | ||||||
Ownership interest percentage in properties | $ 23,300,000 | |||||
Class A units | ||||||
Class of Stock [Line Items] | ||||||
Class A Units not held by Company (in shares) | 20,621,336 | |||||
The Amendments | Subsequent event | ||||||
Class of Stock [Line Items] | ||||||
Maximum aggregate offering price of shares to be sold (up to) | $ 205,000,000 | |||||
The Amendments | Common stock | ||||||
Class of Stock [Line Items] | ||||||
Shares issued (in shares) | 475,074 | |||||
Sale of stock, weighted average price per share | $ 15.21 | |||||
Consideration received on transaction | $ 7,100,000 | |||||
Public offering | ||||||
Class of Stock [Line Items] | ||||||
Consideration received on transaction | $ 58,000,000 | |||||
Sale of stock, number of shares issued in transaction | 4,025,000 | |||||
Weighted average price (in dollars per share) | $ 14.45 | |||||
Redeemable convertible preferred stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock dividend rate percentage | 6.75% | |||||
Redeemable convertible preferred stock | At The Market Program | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock dividend rate percentage | 6.75% | |||||
Maximum aggregate offering price of shares to be sold (up to) | $ 300,000,000 | |||||
Common Class A | Stock Issuance - Shares From Existing Shareholder | ||||||
Class of Stock [Line Items] | ||||||
Sale of stock, number of shares issued in transaction | 12,149 |
Equity - Dividends and Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
May 12, 2022 |
Feb. 23, 2022 |
Oct. 25, 2021 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
|
Class of Stock [Line Items] | |||||||
Common stock dividend declared (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.16 | $ 0.15 | |||
Aggregate common stock dividends | $ 15,034 | $ 14,939 | $ 13,120 | $ 12,136 | |||
Aggregate preferred stock dividends | $ 2,887 | $ 2,887 | $ 2,887 | $ 2,887 | |||
Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Common stock dividend declared (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.17 | ||||
Aggregate common stock dividends | $ 15,020 | $ 15,014 | $ 14,209 | ||||
Series A preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock dividends declared (in dollars per share) | $ 0.421875 | $ 0.421875 | $ 0.421875 | ||||
Aggregate preferred stock dividends | $ 2,887 | $ 2,887 | $ 2,887 |
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ 0.6 | $ 0.5 | $ 2.4 | $ 1.7 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock granted (in shares) | 286,086 | |||
Restricted stock granted, grant date fair value (in dollars per share) | $ 14.62 | |||
Restricted stock surrendered, forfeited in period (in shares) | 52,088 | |||
Employee restricted stock award, vesting period | 2 years | |||
Nonvested restricted shares outstanding (in shares) | 221,693 | 221,693 | ||
Unrecognized compensation cost | $ 2.3 | $ 2.3 | ||
Unrecognized compensation cost, recognition period | 33 months | |||
Restricted Stock | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Employee restricted stock award, vesting period | 3 years | |||
Restricted Stock | Non-Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Non-employee restricted stock award vest grant over period | 1 year | |||
Restricted Stock | Grant Date | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 33.33% | |||
Restricted Stock | Grant Date | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 40.00% | |||
Restricted Stock | First Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 33.33% | |||
Restricted Stock | First Anniversary | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 20.00% | |||
Restricted Stock | Second Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 33.33% | |||
Restricted Stock | Second Anniversary | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 20.00% | |||
Restricted Stock | Third Anniversary | Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Restricted stock award, vesting percentage | 20.00% | |||
Amended and Restated 2013 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of shares reserved for issuance (in shares) | 1,700,000 | 1,700,000 | ||
Shares available for issuance (in shares) | 398,307 | 398,307 |
Fair Value of Financial Instruments - Carrying Amounts and Fair Values of Financial Instruments Measured based on Level Two Inputs (Detail) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Carrying Value | ||
Fair Value of Financial Instruments | ||
Indebtedness, net | $ 1,164,713 | $ 958,910 |
Notes receivable, net | 139,383 | 126,429 |
Interest rate swap liabilities | 0 | 3,467 |
Interest rate swap and cap assets | 24,270 | 2,926 |
Fair Value | ||
Fair Value of Financial Instruments | ||
Indebtedness, net | 1,158,485 | 976,520 |
Notes receivable, net | 139,383 | 126,429 |
Interest rate swap liabilities | 0 | 3,467 |
Interest rate swap and cap assets | $ 24,270 | $ 2,926 |
Related Party Transactions - Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Related Party Transactions | |||||
Due from related parties | $ 0 | $ 0 | $ 4,100,000 | ||
Beatty Development Group | |||||
Related Party Transactions | |||||
Gross profit from related parties | 100,000 | 200,000 | |||
Construction Contracts | |||||
Related Party Transactions | |||||
Revenue from contracts with affiliated entities | $ 6,300,000 | $ 18,700,000 | |||
Gross profit from related parties | $ 200,000 | $ 700,000 | |||
Executive Officer | Construction Contracts | |||||
Related Party Transactions | |||||
Gross profit from related parties | 3,900,000 | ||||
Related party amount of transaction | $ 81,600,000 | ||||
Gross profit margin, related parties | 5.10% | ||||
Letters of credit outstanding | 1,900,000 | $ 1,900,000 | |||
Executive Officer | Construction Contracts | Letter of Credit | |||||
Related Party Transactions | |||||
Aggregate capacity under the letter of credit | $ 9,500,000 | $ 9,500,000 |
Commitments and Contingencies - Guarantees (Details) - Payment Guarantee $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Commitments and Contingencies | |
Payment guarantee amount | $ 70,360 |
Guarantee liability | 1,588 |
Interlock Commercial | |
Commitments and Contingencies | |
Payment guarantee amount | 37,450 |
Guarantee liability | 1,346 |
Harbor Point Parcel 4 | |
Commitments and Contingencies | |
Payment guarantee amount | 32,910 |
Guarantee liability | $ 242 |
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Commitments and Contingencies | ||
Line of credit, performance and payment bonds | $ 2,700 | $ 2,100 |
Allowance for credit losses | 1,452 | $ 994 |
Unfunded loan commitment | ||
Commitments and Contingencies | ||
Loans and leases receivable, commitments, variable rates | 19,300 | |
Unfunded loan commitment | Other liabilities | ||
Commitments and Contingencies | ||
Allowance for credit losses | 500 | |
Operating Partnership | ||
Commitments and Contingencies | ||
Credit facility, amount outstanding | $ 1,900 |
Subsequent Events (Details) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 28, 2022
$ / shares
|
Jul. 26, 2022
USD ($)
|
Jul. 22, 2022
USD ($)
|
Jul. 01, 2022
USD ($)
loan
shares
|
May 12, 2022
$ / shares
|
Feb. 23, 2022
$ / shares
|
Oct. 25, 2021
$ / shares
|
Jul. 31, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
$ / shares
|
Mar. 31, 2022
$ / shares
|
Jun. 30, 2021
$ / shares
|
Mar. 31, 2021
$ / shares
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2021
USD ($)
|
Jul. 05, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
May 05, 2021
USD ($)
|
|
Subsequent Event [Line Items] | |||||||||||||||||
Proceeds from sale of real estate held-for-investment | $ 101,812 | $ 9,156 | |||||||||||||||
Notional amount | $ 1,123,710 | $ 1,123,710 | $ 1,073,587 | ||||||||||||||
Dividend declared (in dollars per share) | $ / shares | $ 0.17 | $ 0.17 | $ 0.16 | $ 0.15 | |||||||||||||
Interest rate caps | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Cap rate purchased, interest rate | 1.00% | 1.00% | |||||||||||||||
Interest rate caps | LIBOR | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Notional amount | $ 907,516 | $ 907,516 | |||||||||||||||
Interest rate cap 0.50% LIBOR one | LIBOR | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Notional amount | $ 50,000 | ||||||||||||||||
Interest rate cap (in percent) | 0.50% | ||||||||||||||||
Interest rate cap 0.50% LIBOR two | LIBOR | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Notional amount | $ 35,100 | ||||||||||||||||
Interest rate cap (in percent) | 0.50% | ||||||||||||||||
Interest Rate Caps Expiring July 2023 | LIBOR | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Notional amount | $ 200,000 | $ 200,000 | |||||||||||||||
Interest rate cap (in percent) | 0.50% | 0.50% | |||||||||||||||
Common Class A | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Dividend declared (in dollars per share) | $ / shares | $ 0.17 | $ 0.17 | $ 0.17 | ||||||||||||||
Subsequent event | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Dividend declared (in dollars per share) | $ / shares | $ 0.19 | ||||||||||||||||
Preferred stock dividends declared (in dollars per share) | $ / shares | $ 0.421875 | ||||||||||||||||
Subsequent event | Interest rate caps | Secured Overnight Financing Rate (SOFR) | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Notional amount | $ 200,000 | ||||||||||||||||
Cap rate purchased, interest rate | 1.00% | ||||||||||||||||
Cap rate sold, interest rate | 3.00% | ||||||||||||||||
Subsequent event | Interest Rate Cap 1.00% To 3.00% Two | Secured Overnight Financing Rate (SOFR) | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Notional amount | $ 35,100 | ||||||||||||||||
Cap rate purchased, interest rate | 1.00% | ||||||||||||||||
Cap rate sold, interest rate | 3.00% | ||||||||||||||||
Subsequent event | Interest Rate Cap 1.00% to 3.00% One | Secured Overnight Financing Rate (SOFR) | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Notional amount | $ 50,000 | ||||||||||||||||
Cap rate purchased, interest rate | 1.00% | ||||||||||||||||
Cap rate sold, interest rate | 3.00% | ||||||||||||||||
Subsequent event | Interest Rate Caps Expiring July 2023 | LIBOR | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Number of interest rate caps modified and extended | loan | 2 | ||||||||||||||||
Subsequent event | Common Class A | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Stock redeemed (in shares) | shares | 10,146 | ||||||||||||||||
Payments for redemption of stock | $ 100 | ||||||||||||||||
Subsequent event | Annapolis Junction Apartments | Disposed of by sale, discontinued operations | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Proceeds from sale of real estate held-for-investment | $ 150,000 | ||||||||||||||||
Subsequent event | Sandbridge Commons | Disposed of by sale, not discontinued operations | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Proceeds from sale of real estate held-for-investment | $ 3,500 | ||||||||||||||||
Subsequent event | Revolving credit facility | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Repayments on revolving credit facility | $ 31,000 | ||||||||||||||||
Subsequent event | Construction loans | Annapolis Junction Apartments | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Extinguishment of debt, amount | $ 84,400 |
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