XML 32 R17.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Real Estate, Net | 12 Months Ended
--- | ---
Dec. 31, 2023
Real Estate [Abstract] |
Real Estate, Net | 8. Real Estate, Net The following is a summary of real estate, net, collectively, as of December 31, 2023 and 2022, respectively (dollar amounts in thousands):
|  |  |  |  |  | December 31, 2023 |  |  |  |  |  | December 31, 2022
Land |  |  |  |  |  | $ | 137,883 |  |  |  |  |  |  | $ | 89,550 |
Building and improvements |  |  |  |  |  | 1,020,477 |  |  |  |  |  |  | 611,102 |
Furniture, fixture and equipment |  |  |  |  |  | 38,706 |  |  |  |  |  |  | 13,540 |
Real estate |  |  |  |  |  | $ | 1,197,066 |  |  |  |  |  |  | $ | 714,192 |
Accumulated depreciation |  |  |  |  |  | (65,247) |  |  |  |  |  |  | (21,224) |
Real estate, net (1) |  |  |  |  |  | $ | 1,131,819 |  |  |  |  |  |  | $ | 692,968 |
(1)In September 2022, the Company announced a repositioning of its business through the opportunistic disposition over time of the Company's joint venture equity investments in multi-family properties and reallocation of its capital away from such assets to its targeted assets. Accordingly, the real estate, net related to certain joint venture equity investments in multi-family properties is included in assets of disposal group held for sale on the accompanying consolidated balance sheets. In December 2023, certain of the joint venture equity investments in multi-family properties were determined to no longer meet held for sale criteria and the associated real estate, net was reclassified to real estate, net on the accompanying consolidated balance sheets. See Note 9 for additional information. Multi-family Apartment Properties As of December 31, 2023 and 2022, the Company owned joint venture equity investments in entities that own multi-family apartment communities, which the Company determined to be VIEs and for which the Company is the primary beneficiary. Accordingly, the Company consolidated the joint venture entities into its consolidated financial statements (see Note 7). The multi-family apartment communities generally lease their apartment units to individual tenants at market rates for the production of rental income. These apartment units are generally leased at a fixed monthly rate with no option for the lessee to purchase the leased unit at any point. During the year ended December 31, 2023, the Company became the primary beneficiary of a VIE that owns a multi-family apartment community and in which the Company holds a preferred equity investment. Accordingly, the Company consolidated the VIE into its consolidated financial statements (see Note 7). In August 2022, one of the joint ventures in which the Company held a common equity investment sold its multi-family apartment community for approximately $48.0 million, subject to certain prorations and adjustments typical in such real estate transactions and repaid the related mortgage payable in the amount of approximately $26.0 million. The sale generated a net gain of approximately $16.8 million and a loss on extinguishment of debt of approximately $0.5 million, both of which are included in other income on the accompanying consolidated statements of operations, resulting in a net gain attributable to the Company's common shareholders of approximately $14.4 million. During the year ended December 31, 2021, the Company was the primary beneficiary of a VIE that owned a multi-family apartment community and in which the Company held a preferred equity investment. Accordingly, the Company consolidated the VIE into its consolidated financial statements. In July 2021, the VIE redeemed its non-controlling interest, which caused the entity to no longer meet the criteria for being characterized as a VIE and became a wholly-owned subsidiary of the Company (see Note 7). In November 2021, the Company determined that the multi-family apartment community owned by the wholly-owned subsidiary met the criteria to be classified as held for sale, transferred the property held by the wholly-owned subsidiary from operating real estate to real estate held for sale and recognized a $0.2 million loss. In March 2022, the entity completed the sale of its multi-family apartment community for approximately $52.0 million, subject to certain prorations and adjustments typical in such real estate transactions, repaid the related mortgage payable in the amount of approximately $37.0 million and redeemed the Company's preferred equity investment. The sale generated a net gain of approximately $0.4 million and a loss on extinguishment of debt of approximately $0.6 million, both of which are included in other income on the accompanying consolidated statements of operations. Single-family Rental Properties As of December 31, 2023 and 2022, the Company owned single-family rental homes. These units are leased to individual tenants for the production of rental income and are generally leased at a fixed monthly rate with no option for the lessee to purchase the leased unit at any point. Lease Intangibles Intangibles related to multi-family properties consist of the value of in-place leases and are included in other assets on the accompanying consolidated balance sheets. The following table presents the components of lease intangibles, net as of December 31, 2023 and 2022, respectively (dollar amounts in thousands):
|  | December 31, 2023 |  | December 31, 2022
Lease intangibles |  | $ | 54,581 |  |  | $ | 30,094 |
Accumulated amortization |  | (52,203) |  |  | (30,094) |
Lease intangibles, net |  | $ | 2,378 |  |  | $ | — |
In September 2022, the Company announced a repositioning of its business through the opportunistic disposition over time of the Company's joint venture equity investments in multi-family properties and reallocation of its capital away from such assets to its targeted assets. Accordingly, the lease intangibles, net related to certain joint venture equity investments in multi-family properties are included in assets of disposal group held for sale on the accompanying consolidated balance sheets. In December 2023, certain of the joint venture equity investments in multi-family properties were determined to no longer meet held for sale criteria and the associated lease intangibles, net were reclassified to other assets on the accompanying consolidated balance sheets. See Note 9 for additional information. Depreciation and Amortization Expense The following table presents depreciation and amortization expenses for the years ended December 31, 2023, 2022 and 2021, respectively (dollar amounts in thousands):
|  |  |  | For the Years Ended December 31,
|  |  |  |  |  | 2023 |  | 2022 |  | 2021
Depreciation expense on operating real estate |  |  |  |  |  | $ | 24,620 |  |  | $ | 47,179 |  |  | $ | 5,662 |
Amortization of lease intangibles related to operating real estate |  |  |  |  |  | — |  |  | 79,645 |  |  | 13,588 |
Total depreciation and amortization (1) |  |  |  |  |  | $ | 24,620 |  |  | $ | 126,824 |  |  | $ | 19,250 |
(1)Amounts for the years ended December 31, 2022 and 2021 include depreciation and amortization of multi-family properties that have been reclassified to assets held in disposal group held for sale. The estimated depreciation expense related to operating real estate is as follows (dollar amounts in thousands):
Year Ending December 31, |  | Depreciation Expense
2024 |  | $ | 45,390 |
2025 |  | $ | 45,390 |
2026 |  | $ | 45,271 |
2027 |  | $ | 40,063 |
2028 |  | $ | 38,088 |

X
- References No definition available. + Details
Name: | us-gaap_RealEstateAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 976 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//976/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 978 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//978/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 970 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//970/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 972 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//972/tableOfContent Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 974 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//974/tableOfContent + Details
Name: | us-gaap_RealEstateDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration