XML 27 R17.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Assets and Liabilities of Disposal Group Held for Sale | 6 Months Ended
--- | ---
Jun. 30, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Assets and Liabilities of Disposal Group Held for Sale | 9. Assets and Liabilities of Disposal Group Held for Sale 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 Company determined that certain joint venture equity investments met the criteria to be classified as held for sale and transferred either the assets and liabilities of the respective Consolidated VIEs or its equity investment in the joint venture entity to assets and liabilities of disposal group held for sale. In December 2023, the Company suspended the marketing of nine joint venture equity investments that were reported in assets and liabilities of disposal group held for sale primarily due to unfavorable market conditions and a lack of transactional activity in the multi-family market. As such, the Company determined that these joint venture equity investments no longer met the criteria to be classified as held for sale and transferred either the assets and liabilities of the respective Consolidated VIEs or its equity investment in the joint venture entity to their respective categories or equity investments, at fair value, respectively, on the accompanying condensed consolidated balance sheets as of December 31, 2023. In March 2024, the Company suspended the marketing of one additional joint venture equity investment, determined that it no longer met the criteria to be classified as held for sale and transferred the assets and liabilities of the Consolidated VIE to their respective categories on the accompanying condensed consolidated balance sheets as of March 31, 2024. As a result of this transfer, the Company adjusted the carrying value of the long-lived assets in the Consolidated VIE to the lower of the carrying amount before the assets were classified as held for sale adjusted for depreciation and amortization expense that would have been recognized had the assets been continuously classified as held and used and the fair value of the assets at the date of the transfer and recognized an approximately $14.6 million loss on reclassification of disposal group during the three months ended March 31, 2024. In June 2024, in response to productive negotiations with operating partners and increased transactional activity, the Company determined that five joint venture equity investments met the criteria to be classified as held for sale and transferred the assets and liabilities of the respective Consolidated VIEs to assets and liabilities of disposal group held for sale on the accompanying condensed consolidated balance sheet as of June 30, 2024. As a result, the Company recognized a loss of $1.8 million included in impairment of real estate in the accompanying condensed consolidated statements of operations for the three months ended June 30, 2024. Seven joint venture equity investments are classified as disposal group held for sale as of June 30, 2024. During the three and six months ended June 30, 2024, the Company sold its joint venture equity investments in one and two multi-family properties, respectively, which resulted in the de-consolidation of the joint venture entities' assets and liabilities and a gain on de-consolidation of approximately $0.3 million, which is included in other income (loss) in the accompanying condensed consolidated statements of operations. The following table presents the carrying values of the major classes of assets and liabilities of disposal group held for sale as of June 30, 2024 and December 31, 2023, respectively (dollar amounts in thousands):
|  | June 30, 2024 |  | December 31, 2023
Cash and cash equivalents |  | $ | 5,108 |  |  | $ | 5,676 |
Real estate, net |  | 355,984 |  |  | 407,834 |
Other assets |  | 12,446 |  |  | 12,507 |
Total assets of disposal group held for sale (1) |  | $ | 373,538 |  |  | $ | 426,017 |
Mortgages payable on real estate, net (2) |  | $ | 330,400 |  |  | $ | 378,386 |
Other liabilities |  | 9,738 |  |  | 7,638 |
Total liabilities of disposal group held for sale (1) |  | $ | 340,138 |  |  | $ | 386,024 |
(1)Assets and liabilities of the disposal group held for sale are in Consolidated VIEs because the Company is the primary beneficiary. (2)As of June 30, 2024, multi-family properties owned by two joint venture equity investments are in default on a mortgage payable in the amount of $121.2 million. The events of default include a breach of the loan document in failure to secure a replacement interest rate cap agreement and failure to pay $1.1 million of interest owed to the lender. Also included in the disposal group held for sale are non-controlling interests in Consolidated VIEs in the amount of $3.0 million and $3.2 million as of June 30, 2024 and December 31, 2023, respectively. Real estate, net included in assets of disposal group held for sale is recorded at the lower of the net carrying amount of the assets or the estimated fair value, net of selling costs. Fair value for real estate, net was based upon a discounted cash flow analysis using property financial information and assumptions regarding market rent, revenue and expense growth, capitalization rates and equity return rates. For real estate, net of the disposal group held for sale as of June 30, 2024, the Company recognized impairment losses of $1.8 million and $21.9 million, inclusive of losses recognized upon transfer into disposal group held for sale, in the three and six months ended June 30, 2024, respectively. As of June 30, 2023, the fair values, net of selling costs of multi-family properties owned by four of the joint venture entities in which we hold equity investments were less than the properties' net carrying values. Accordingly, the Company recognized net impairment losses of $16.9 million and $27.1 million in the three and six months ended June 30, 2023, respectively. Impairment on real estate, net of recovery of previously impaired real estate, is included in impairment of real estate on the accompanying condensed consolidated statements of operations. See Note 16 for descriptions of valuation methodologies utilized for other classes of assets and liabilities of disposal group held for sale. The following table presents the pretax losses of the disposal group held for sale as of June 30, 2024 for the three and six months ended June 30, 2024 and 2023, respectively (dollar amounts in thousands):
|  | For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Pretax (loss) income of disposal group held for sale |  | $ | (8,835) |  |  | $ | (12,211) |  |  | $ | (49,526) |  |  | $ | (29,360) |
Pretax loss (income) of disposal group attributable to non-controlling interest in Consolidated VIEs |  | 771 |  |  | (145) |  |  | 5,235 |  |  | 1,056 |
Pretax loss of disposal group attributable to Company's common stockholders |  | $ | (8,064) |  |  | $ | (12,356) |  |  | $ | (44,291) |  |  | $ | (28,304) |

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

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration