Summary of Significant Accounting Policies (Tables)
|
6 Months Ended |
Jun. 30, 2020 |
|---|
| Accounting Policies [Abstract] |
|
| Summary of Restricted Cash |
Restricted cash consisted of the following:
|
|
|
June 30, |
|
|
December 31, |
|
|
(in thousands) |
|
2020 |
|
|
2019 |
|
|
Escrow funds and other |
|
$ |
601 |
|
|
$ |
2,311 |
|
|
Undistributed 1031 proceeds |
|
|
— |
|
|
|
5,545 |
|
|
|
|
$ |
601 |
|
|
$ |
7,856 |
|
|
| Summary of Rents Received in Advance |
Rent received in advance represents tenant payments received prior to the contractual due date, and is included in Accounts payable and other liabilities on the Condensed Consolidated Balance Sheets. Rent received in advance is as follows:
|
(in thousands) |
|
June 30,
2020 |
|
|
December 31,
2019 |
|
|
Rent received in advance |
|
$ |
11,360 |
|
|
$ |
13,368 |
|
|
| Summary of Changes in the Provisions for Uncollectible Rent |
|
|
|
For the three months ended
June 30, |
|
|
For the six months ended
June 30, |
|
|
(in thousands) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Beginning balance |
|
$ |
1,033 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,086 |
|
|
Provision for uncollectible rent |
|
|
1,190 |
|
|
|
— |
|
|
|
2,223 |
|
|
|
440 |
|
|
Write-offs |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(2,526 |
) |
|
Ending balance |
|
$ |
2,222 |
|
|
$ |
— |
|
|
$ |
2,222 |
|
|
$ |
— |
|
|
| Summary of Significant Unobservable Inputs Used to Estimate Fair Value of Earnout Liability |
The table below provides a summary of the significant unobservable inputs used to estimate the fair value of the earnout liability as of February 7, 2020, the transaction date.
|
Significant Unobservable Inputs |
|
Weighted Average Assumption Used |
|
|
Range |
|
Expected IPO date |
|
April 15, 2020 |
|
|
March 2020 through May 2020 |
|
Peer stock price volatility |
|
20.0% |
|
|
16.22% to 23.09% |
|
Company's net asset value per diluted share |
|
$ |
85.21 |
|
|
(a) |
|
(a) |
The Company’s net asset value per diluted share is primarily based on the fair value of its real estate investment portfolio, together with the fair value of its other assets and liabilities. The fair value of the Company’s real estate investment portfolio as of the measurement date was determined using market capitalization rates that ranged between 6.05% and 7.09%. |
The table below provides a summary of the significant unobservable inputs used to estimate the fair value of the earnout liability as of June 30, 2020.
|
Significant Unobservable Inputs |
|
Weighted Average Assumption Used |
|
|
Range |
|
Expected IPO date |
|
October 21, 2020 |
|
|
September 2020 through February 2021 |
|
Peer stock price volatility |
|
35.0% |
|
|
25.67% to 58.92% |
|
Company's net asset value per diluted share |
|
$ |
71.06 |
|
|
(b) |
|
(b) |
The Company’s net asset value per diluted share is primarily based on the fair value of its real estate investment portfolio, together with the fair value of its other assets and liabilities. The fair value of the Company’s real estate investment portfolio as of the measurement date was determined using market capitalization rates that ranged between 6.11% and 7.17%. |
|
| Summary of Reconciliation of Change in Earnout Liability |
The following table presents a reconciliation of the change in the earnout liability during the three and six months ended June 30, 2020:
|
|
|
For the three months ended |
|
|
For the six months ended |
|
|
(in thousands) |
|
June 30, 2020 |
|
|
June 30, 2020 |
|
|
Beginning balance |
|
$ |
44,296 |
|
|
$ |
— |
|
|
Allocation of Internalization purchase price at February 7, 2020 |
|
|
— |
|
|
|
40,119 |
|
|
Change in fair value subsequent to Internalization |
|
|
(6,321 |
) |
|
|
(2,144 |
) |
|
Ending balance |
|
$ |
37,975 |
|
|
$ |
37,975 |
|
|
| Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis |
The balances of assets and liabilities measured at fair value on a recurring basis are as follows:
|
|
|
June 30, 2020 |
|
|
(in thousands) |
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Interest rate swap, liabilities |
|
$ |
(85,678 |
) |
|
$ |
— |
|
|
$ |
(85,678 |
) |
|
$ |
— |
|
|
Earnout liability |
|
|
(37,975 |
) |
|
|
— |
|
|
|
— |
|
|
|
(37,975 |
) |
|
|
|
December 31, 2019 |
|
|
(in thousands) |
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Interest rate swap, assets |
|
$ |
2,911 |
|
|
$ |
— |
|
|
$ |
2,911 |
|
|
$ |
— |
|
|
Interest rate swap, liabilities |
|
|
(24,471 |
) |
|
|
— |
|
|
|
(24,471 |
) |
|
|
— |
|
|
| Summary of Carrying Amount Reported on Condensed Consolidated Balance Sheets |
The following table summarizes the carrying amount reported on the Condensed Consolidated Balance Sheets and the Company’s estimate of the fair value of the Mortgages and notes payable, net, Unsecured term notes, net, and Unsecured revolving credit facility:
|
(in thousands) |
|
June 30,
2020 |
|
|
December 31,
2019 |
|
|
Carrying amount |
|
$ |
2,038,172 |
|
|
$ |
1,989,451 |
|
|
Fair value |
|
|
2,172,559 |
|
|
|
2,047,860 |
|
|
| Summary of Right-of-Use Assets And Lease Liabilities Associated With Operating Leases Included In Condensed Consolidated Balance Sheets |
Right-of-use assets and lease liabilities associated with operating leases were included in the accompanying Condensed Consolidated Balance Sheets as follows:
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
(in thousands) |
|
Financial Statement Presentation |
|
2020 |
|
|
2019 |
|
|
Right-of-use assets |
|
Prepaid expenses and other assets |
|
$ |
3,313 |
|
|
$ |
1,614 |
|
|
Lease liabilities |
|
Accounts payable and other liabilities |
|
|
2,924 |
|
|
|
1,209 |
|
|