Subsequent Events

9 Months Ended

Sep. 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

In October 2022, the Company acquired the remaining 5% ownership interest in the entity that developed Gainesville Apartments. During 2022, the Company made earn-out payments totaling $4.2 million to its development partner in addition to development cost savings of $0.8 million paid to the partner.

On November 4, 2022, the Company acquired a 124,000 square foot grocery-anchored shopping center in Virginia Beach, Virginia for a purchase price of $26.5 million in cash.

Equity Method Investments

In October 2022, Harbor Point Parcel 3 modified its construction loan, which was increased from $161.7 million to $180.4 million as a result of an increase in the scope of the project. As a result, the Company received $3.5 million representing a return of excess equity contributions to the project. In accordance with a preexisting promissory note secured by the development partner's ownership interest in Harbor Point Parcel 4, the Company advanced $3.8 million to the Harbor Point Parcel 3 development partner to satisfy its additional equity contribution required under the Harbor Point Parcel 3 operating agreement.

Notes Receivable

On October 3, 2022, the Company entered into a $19.6 million preferred equity investment for the development of a multifamily property located in Gainesville, Georgia (Gainesville II). This project is located nearby the Company's recently completed multifamily development project in Gainesville. The preferred equity investment has economic and other terms consistent with a note receivable, including a mandatory redemption feature, and it will be accounted for as a note receivable. The Company's investment bears interest at a rate of 14.0%, compounded annually, with minimum interest of $5.9 million over the life of the investment..

Indebtedness

In October 2022, the Company had net borrowings of $37.0 million on the revolving credit facility.

Equity

On November 4, 2022, the Company announced that its board of directors declared a cash dividend of $0.19 per common share for the fourth quarter of 2022. The fourth quarter dividend will be payable in cash on January 5, 2023 to stockholders of record on December 28, 2022.

On November 4, 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 fourth quarter of 2022. The dividend will be payable in cash on January 13, 2023 to stockholders of record on January 3, 2023.