Subsequent Events

3 Months Ended

Mar. 31, 2020

COVID-19

Subsequent to March 31, 2020, the global economy has continued to be severely impacted by the COVID-19 pandemic and we are closely monitoring the impact of the COVID-19 pandemic on all aspects of our business, including how it will impact our tenants in the near and long term. While we did not incur significant disruptions from the COVID-19 pandemic during the three months ended March 31, 2020, we believe this situation may have an impact on our business and results of operations in the second quarter and in later periods of 2020 that may be material, but cannot be reasonably estimated at this time due to numerous uncertainties.

On April 10, 2020, the FASB issued a staff question-and-answer document (the “Q&A”) to address some frequently asked questions about accounting for deferrals of lease payments and reduced future lease payments (both “concessions”) related to the effects of the COVID-19 pandemic. Consequently, for concessions related to the effects of the COVID-19 pandemic, an entity will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance in ASC 842 to those contracts. Entities may make the elections for any lessor-provided concessions related to the effects of the COVID-19 pandemic as long as the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. There were no lease concessions granted as a result of COVID-19 during the three months ended March 31, 2020. See below for a summary of concessions being granted to tenants impacted by COVID-19 subsequent to March 31, 2020. We are currently evaluating the Q&A and the appropriate accounting for these concessions.

Subsequent to March 31, 2020, we have received rent relief requests from a number of tenants claiming impacts from COVID-19, many of whom may be making such rent relief requests in response to local California governmental moratoriums on commercial tenant evictions and provisions enabling commercial tenants to defer rent. We are evaluating each tenant’s rent relief request on an individual basis and considering a number of factors prior to executing a lease amendment. For tenants requesting rent relief who meet certain established criteria, we are offering the following concessions: (i) application of their security deposit to contractual base rent, (ii) acceleration of future existing contractual rent concessions to cover contractual base rent, (iii) deferral of contractual base rent and (iv) various combinations of the aforementioned options. Not all tenant requests will result in lease amendments, nor are we forgoing our contractual rights under any of our lease agreements. For further information regarding the impact of COVID-19 on the Company, see Part II, Item 1A titled “Risk Factors.”

Acquisitions

On April 1, 2020, we acquired a one-acre parcel of land located at Brady Way in Garden Grove, California for a contract price of $0.9 million. This parcel of land is adjacent to another one of our properties.

On April 3, 2020, we acquired the property located at 720-750 North Vernon Avenue in Azusa, California for a contract price of $15.5 million. The property consists of one multi-tenant building with a total of 71,692 rentable square feet.

Dividends Declared

On May 4, 2020, our board of directors declared the following quarterly cash dividends/distributions:



Security	Amount per Share/Unit		Record Date	Payment Date
Common stock	$	0.215	June 30, 2020	July 15, 2020
OP Units	$	0.215	June 30, 2020	July 15, 2020
5.875% Series A Cumulative Redeemable Preferred Stock	$	0.367188	June 15, 2020	June 30, 2020
5.875% Series B Cumulative Redeemable Preferred Stock	$	0.367188	June 15, 2020	June 30, 2020
5.625% Series C Cumulative Redeemable Preferred Stock	$	0.351563	June 15, 2020	June 30, 2020
4.43937% Cumulative Redeemable Convertible Preferred Units	$	0.505085	June 15, 2020	June 30, 2020
4.00% Cumulative Redeemable Convertible Preferred Units	$	0.45	June 15, 2020	June 30, 2020