Revenue Recognition

Except for the changes below, the Company has consistently applied the accounting policies to all periods presented in these condensed consolidated financial statements. The Company adopted Topic 606, Revenue from Contracts with Customers, ("Topic 606") with a date of initial application of January 1, 2018 on a modified retrospective basis. As a result, the Company has changed its accounting policy from Topic 605, Revenue Recognition, ("Topic 605") for revenue recognized through other fee income on the condensed consolidated statement of operations and comprehensive income (loss). The Company applied Topic 606 by recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of distributions in excess of accumulated net income at January 1, 2018. Therefore, the comparative information has not been adjusted and continues to be reported under Topic 605. As of January 1, 2018, revenue from contracts with customers is measured based on a consideration specified in a contract with a customer. For the comparative information reported under Topic 605, the Company recognized the fees as revenue when the related services were performed. The implementation of Topic 606 generally did not change the timing or pattern of revenue recognition for other fee income. As a result, the cumulative effect recognized in distributions in excess of accumulated net income on January 1, 2018 relating to other fee income is immaterial. The Company has elected to apply Topic 606 to new and existing contracts that are not completed contracts as of January 1, 2018.

The Company has changed its accounting policy regarding the sales of investment property in accordance with Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets, that the Company adopted on January 1, 2018. When a sale contract exists and the Company has transferred control of the investment property, the Company derecognizes the investment property and recognizes a gain or loss equal to the difference between the amount of consideration transferred and the carrying amount of the investment property. Historically, the Company recognized gains and losses from the sale of investment property at the time of sale using the full accrual method based on the criteria in Topic 360-20, Property, Plant and Equipment - Real Estate Sales.

The following table reflects the disaggregation of other fee income:



	Three months ended March 31,
	2018		2017
Property management fee	$	728	$	741
Asset management fee	303		303
Leasing commissions and other fees	45		48
Other fee income	$	1,076	$	1,092

Contract Balances

The Company recognizes revenue when it satisfies a performance obligation. These rights to consideration most often result in receivables which are settled through recurring monthly customer payments for the services provided over the term of the contract, which has a remaining original duration through 2023. The Company generally does not receive prepayments for services or recognize revenue prior to being legally entitled to payment from the customer. As a result, the Company generally does not record material contract assets or contract liabilities. The Company has receivables of $560 and $515 as of March 31, 2018 and December 31, 2017, respectively, which are included in deferred costs and other assets, net on the condensed consolidated balance sheets.

Property Management and Asset Management Fees

Property management and asset management fees are recognized over time as services are rendered. The bundled services of the property management performance obligation and asset management performance obligation each qualify as a series of distinct services satisfied over time. The variable consideration related to each of the performance obligations is recognized in each of the periods which directly relate to the Company's efforts to provide those services. Accordingly, the Company has elected the optional exemption provided by Topic 606 and does not disclose information about remaining wholly unsatisfied performance obligations. The uncertainty of the property management and asset management fees, which generally relate to the fluctuation in cash receipts from tenants and potentially changing equity capitalization, are resolved on a monthly basis. For certain services, the Company acts as an agent on behalf of the customer to arrange for performance by a third party. Based on the Company's judgment, both the underlying asset management service activities and the underlying property management service activities are not distinct but are inputs (or fulfillment activities) to provide the combined output (either the overall asset management service or the overall property management service).

Leasing Commissions and Other Fees

The leasing commissions and other fees are recognized at a point in time consistent with the underlying service (i.e. upon lease execution). The leasing performance obligation and other performance obligations are satisfied at the point in time which the customer is transferred control over and consumes the benefit of the service (i.e. increased occupancy). The variable consideration related to each of the performance obligations is recognized in each of the periods which directly relate to the Company's efforts to provide those services. The uncertainty of the leasing commissions and other fees are resolved upon delivery of the underlying service (i.e. upon lease execution).