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Investments in Real Estate (Tables)
 12 Months Ended
Dec. 31, 2017
Banking And Thrift [Abstract]  
Summary of Investments in Real Estate

As of December 31, 2017, our investments in real estate consisted of 52 apartment properties (unaudited). The table below summarizes our investments in real estate:

 

 

2017

 

 

2016

 

 

Depreciable Lives

(In years)

Land

 

$

193,026

 

 

$

165,120

 

 

-

Building

 

 

1,279,777

 

 

 

1,066,611

 

 

40

Furniture, fixtures and equipment

 

 

31,353

 

 

 

17,625

 

 

5-10

Total investment in real estate

 

$

1,504,156

 

 

$

1,249,356

 

 

 

Accumulated depreciation

 

 

(84,097

)

 

 

(51,511

)

 

 

Investments in real estate, net

 

$

1,420,059

 

 

$

1,197,845

 

 

 

 
Summary of Acquisitions

The below table summarizes the acquisitions for the year ended December 31, 2017:

Property Name

 

Date of Purchase

 

Location

 

Units (unaudited)

 

 

Purchase Price

 

Lakes of Northdale

 

2/27/2017

 

Tampa, FL

 

216

 

 

$

29,750

 

Haverford Place

 

5/24/2017

 

Lexington, KY

 

160

 

 

$

14,240

 

South Terrace (1)

 

6/30/2017

 

Durham, NC

 

328

 

 

$

42,950

 

Cherry Grove (2)

 

9/26/2017

 

North Myrtle Beach, SC

 

172

 

 

$

16,157

 

Riverchase (2)

 

9/26/2017

 

Indianapolis, IN

 

216

 

 

$

18,899

 

Kensington (2)

 

9/26/2017

 

Canal Winchester, OH

 

264

 

 

$

24,409

 

Schirm Farms (2)

 

9/26/2017

 

Canal Winchester, OH

 

264

 

 

$

23,749

 

Live Oak Trace (2)

 

10/25/2017

 

Baton Rouge, LA

 

264

 

 

$

28,501

 

Tides at Calabash (2)

 

11/14/2017

 

Wilmington, NC

 

168

 

 

$

14,269

 

Brunswick Point (2)

 

12/12/2017

 

Wilmington, NC

 

288

 

 

$

30,661

 

Total

 

 

 

 

 

 

2,340

 

 

$

243,585

 

 

(1)

This property was acquired from a joint venture of which our former advisor was a controlling member.  See Note 8: Related Party Transactions and Arrangements.  In conjunction with this acquisition, we issued IROP units to third parties that were members of the joint venture that owned the property.  See Note 6: Stockholder Equity and Noncontrolling Interests.  

 

(2)

These properties were acquired as a part of our acquisition of a nine-community portfolio (the HPI Portfolio), totaling 2,353 units (unaudited), which we agreed to acquire on September 3, 2017 for a total purchase price of $228,144. In connection with the acquisition of these properties, we incurred defeasance costs totaling $3,624, which are included in Acquisition related debt extinguishment expenses within the Consolidated Statements of Operations.

Summary of Fair Value of Assets and Liabilities

The following table summarizes the aggregate fair value of the assets and liabilities associated with the properties acquired, outside of the HPI Portfolio, during the year ended December 31, 2017, on the date of acquisition, accounted for under FASB ASC Topic 805.

Description

 

Fair Value of Asset Acquired During the

Year Ended

December 31, 2017

 

Assets acquired:

 

 

 

 

Investments in real estate

 

$

86,012

 

Accounts receivable and other assets

 

 

331

 

Intangible assets

 

 

928

 

Total assets acquired

 

$

87,271

 

Liabilities assumed:

 

 

 

 

Indebtedness

 

$

-

 

Accounts payable and accrued expenses

 

 

398

 

Accrued interest payable

 

 

-

 

Other liabilities

 

 

150

 

Total liabilities assumed

 

$

548

 

Estimated fair value of net assets acquired

 

$

86,723

 

The following table summarizes the aggregate fair value of the assets and liabilities associated with the HPI Portfolio properties acquired during the year ended December 31, 2017, on the date of acquisition, accounted for under FASB ASC Topic 805.

Description

 

Fair Value of Asset Acquired During the

Year Ended

December 31, 2017

 

Assets acquired:

 

 

 

 

Investments in real estate

 

$

155,059

 

Accounts receivable and other assets

 

 

290

 

Intangible assets

 

 

1,587

 

Total assets acquired

 

$

156,936

 

Liabilities assumed:

 

 

 

 

Indebtedness

 

$

18,977

 

Accounts payable and accrued expenses

 

 

1,479

 

Accrued interest payable

 

 

-

 

Other liabilities

 

 

607

 

Total liabilities assumed

 

$

21,063

 

Estimated fair value of net assets acquired

 

$

135,873

 

 
Pro Forma of Financial Information Purport to Represent Results of Operations for Future Periods

The table below presents the revenue and net income, excluding any acquisition and defeasance costs, for the properties acquired during the year ended December 31, 2017 as reported in our consolidated financial statements.

 

 

For the

Year Ended

December 31, 2017

 

Property

 

Total revenue

 

 

Net Income allocable to common shares

 

Lakes of Northdale

 

$

2,603

 

 

$

709

 

Haverford Place

 

 

1,078

 

 

 

302

 

South Terrace

 

 

2,071

 

 

 

379

 

Cherry Grove

 

 

526

 

 

 

140

 

Riverchase

 

 

533

 

 

 

70

 

Kensington

 

 

736

 

 

 

187

 

Schirm Farms

 

 

711

 

 

 

170

 

Live Oak Trace

 

 

424

 

 

 

108

 

Tides at Calabash

 

 

315

 

 

 

177

 

Brunswick Point

 

 

137

 

 

 

24

 

Total

 

$

9,134

 

 

$

2,266

 

 

The table below represents the revenue, net income and earnings per share effect of the properties acquired during the year ended December 31, 2017, as reported in our consolidated financial statements and on a pro forma basis as if the acquisition occurred on January 1, 2016. These pro forma results are not necessarily indicative of the results that actually would have occurred if the acquisition had occurred on the first day of the periods presented, nor does the pro forma financial information purport to represent the results of operations for future periods.

Description

 

For the

Year Ended

December 31, 2017

 

 

For the

Year Ended

December 31, 2016

 

Pro forma total revenue (unaudited)

 

$

177,642

 

 

$

177,412

 

Pro forma net income (loss) allocable to common shares (unaudited)

 

 

36,219

 

 

 

(3,398

)

Earnings (loss) per share attributable to common shareholders:

 

 

 

 

 

 

 

 

Basic-pro forma (unaudited)

 

$

0.49

 

 

$

(0.07

)

Diluted-pro forma (unaudited)

 

$

0.49

 

 

$

(0.07

)

 
Summary of Disposition of Property's

Dispositions

  The below table summarizes the dispositions for the year ended December 31, 2017 and also presents each property’s contribution to net income allocable to common shares, excluding the impact of the gain on sale:

 

 

 

 

 

 

 

 

 

 

 

 

Net income allocable to common shares

 

Property Name

 

Date of Sale

 

Sale Price

 

 

Gain (loss) on sale (1)

 

 

For the Year Ended December 31, 2017

 

 

For the Year Ended December 31, 2016

 

Copper Mill

 

5/5/2017

 

$

32,000

 

 

$

15,595

 

 

$

548

 

 

$

1,105

 

Heritage Trace

 

6/1/2017

 

 

11,600

 

 

 

(1,256

)

 

 

240

 

 

 

(47

)

Berkshire Square

 

6/9/2017

 

 

16,000

 

 

 

1,510

 

 

 

201

 

 

 

306

 

Crossings

 

11/28/2017

 

 

27,200

 

 

 

3,061

 

 

 

1,374

 

 

 

941

 

Total

 

 

 

$

86,800

 

 

$

18,910

 

 

$

2,363

 

 

$

2,305

 

 

 

 

(1)

The gain (loss) on sale for these properties is net of $4,251 of defeasance and debt prepayment premium costs. All properties were previously classified as held for sale.  

 

The below table summarizes the dispositions for the year ended December 31, 2016 and also presents each property’s contribution to net income (loss) allocable to common shares, excluding the impact of the gain (loss) on sale:

 

 

 

 

 

 

 

 

 

 

 

Property Name

 

Date of Sale

 

Sale Price

 

 

Gain (loss) on sale

 

Cumberland Glen (1)

 

02/18/2016

 

$

18,000

 

 

$

2,452

 

Belle Creek

 

04/07/2016

 

 

23,000

 

 

 

14,191

 

Tresa

 

05/05/2016

 

 

47,000

 

 

 

15,142

 

Total

 

 

 

$

88,000

 

 

$

31,785

 

 

(1)

Gain (loss) on sale related to this property includes a defeasance premium of $1,343.