Noncontrolling Interest in the Operating Partnership

9 Months Ended

Sep. 30, 2019

Noncontrolling Interest in the Operating Partnership [Abstract]

Noncontrolling Interest in the Operating Partnership

NOTE 11.  NONCONTROLLING INTEREST IN THE OPERATING PARTNERSHIP

Noncontrolling interest in the operating partnership represents the limited partners’ proportionate share of the equity in the operating partnership.  Earnings and loss are allocated to noncontrolling interest in accordance with the weighted average percentage ownership of the operating partnership during the period. 

Our ownership interest in the operating partnership was 99.5% as of September 30, 2019and December 31, 2018. At September 30, 2019 and December 31, 2018,  2,929,710 and 3,281,124common units owned by minority interest holders were outstanding, all of which were held by limited partners.  The total redemption value for the common units was $623and $435 at September 30, 2019 and December 31, 2018, respectively.

Each limited partner of the operating partnership may, subject to certain limitations, require that the operating partnership redeem all or a portion of his or her common units at any time after a specified period following the date the units were acquired, by delivering a redemption notice to the operating partnership. When a limited partner tenders common units for redemption, the Company can, at its sole discretion, choose to purchase the units for either (1) a number of shares of Company common stock at a rate of one share of common stock for each 52common units redeemed or (2) cash in an amount equal to the market value of the number of shares of Company common stock the limited partner would have received if the Company chose to purchase the units for common stock. 

During the three months ended September 30, 2019, 91,729 common units were converted into 1,765 shares of common stock.  Additionally, during the nine months ended September 30, 2019, an additional 259,685 common units were redeemed for cash totaling $42.  During the three and nine months ended September 30, 2018, 800,000 common units were redeemed for cash totaling $160.