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COVID-19 | 3 Months Ended
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Mar. 31, 2020
Unusual or Infrequent Items, or Both [Abstract] |
COVID-19 | COVID-19 Beginning in the latter half of March 2020, the respiratory disease caused by COVID-19 began to spread worldwide, causing significant disruptions to the U.S. and world economies. On March 4, 2020 and March 13, 2020, a state of emergency was declared for the state of California and for the United States, respectively. In response to the issuance of U.S. federal guidelines to contain the spread of COVID-19, U.S. state and local jurisdictions, including those in which the Company operates, have implemented various containment or mitigation measures, including shelter-in-place orders and the temporary closure of non-essential businesses. COVID‑19 has triggered a period of significant global economic slowdown, and the impact of COVID-19 on the U.S. economy will be significant for the remainder of 2020 and potentially beyond. The economic downturn caused by COVID-19 will adversely affect the operations of our office portfolio to the extent of, among other things: (i) the inability of our tenants to pay rents, (ii) the deferral of rent payments by our tenants, (iii) tenants’ requests to modify terms of their leases in a way that will reduce the economic value of their leases, (iv) an increase in early lease terminations or a decrease in lease renewals and (v) our inability to re-lease vacant space in our office portfolio due to “shelter in place” or similar orders or a systemic shift in the demand for office space as a result of COVID-19. The following information provides early insight into the effects of COVID-19 on our rent collections for April 2020. We are providing this information on a one-time basis and undertake no obligation to provide updated rent collection information in the future. This information is preliminary and unaudited. As of May 5, 2020, the Company has collected approximately 90.0% of the $4,237,000 of rental and other property income billed to tenants related to April 2020, excluding rental and other property income billed to its parking tenants. The Company has not received any of the $409,000 rental and other property income payable by its parking tenants in respect of April 2020. Further, as of May 5, 2020, the Company has received several requests from tenants to defer or abate the rent payments in respect of April 2020, and the Company is evaluating each tenant rent relief request on an individual basis, considering a number of factors. Additionally, the spread of COVID-19 in the United States and the resulting increase of restrictions on and cancellations of travel, meetings and social gatherings are expected to adversely impact the operations of our hotel in Sacramento, California. For the fourth quarter of 2019, the net operating income of our hotel constituted approximately 22% of our total segment net operating income. For the month of March 2020, the occupancy, average daily rate ("ADR") and revenue per available room ("RevPAR") at our hotel in Sacramento, California were 38.6%, $172.05 and $66.48, respectively, as compared to occupancy, ADR and RevPAR of 85.6%, $176.12 and $150.84 for the month of March 2019, respectively. For the month of April 2020, the occupancy, ADR and RevPAR at our hotel in Sacramento, California were 12.8%, $129.90 and $16.56, respectively, as compared to occupancy, ADR and RevPAR of 83.3%, $187.76 and $156.38 for the month of April 2019, respectively. Loans originated by us through March 31, 2020 under the SBA 7(a) Guaranteed Loan Program consist primarily of loans to borrowers in the limited service hospitality sector. Currently, our borrowers are experiencing significant cash flow deficits as the travel and leisure industry decline caused by COVID-19 has severely impacted limited service hospitality properties. We sell the portion of loans originated by us under the SBA 7(a) Program that is guaranteed by the SBA; however, during April 2020, the secondary market for the sale of such guaranteed portions declined, both as a result of significantly decreased demand for such loans in general and, specifically, for limited service hospitality loans. As a result of the disruption caused by COVID-19, the Company has temporarily suspended the vast majority of repositioning of the existing office building at 4750 Wilshire Boulevard and the vast majority of renovations at the Sheraton Grand Hotel in Sacramento. The extent to which COVID-19 will impact the Company’s operations and those of its tenants and business partners will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of COVID-19, the actions taken to contain COVID-19 or mitigate its impact, and the direct and indirect economic effects of COVID-19 and the related containment measures. Accordingly, the Company cannot predict the significance, extent or duration of any adverse impact of COVID-19 on its business, financial condition, results of operations, cash flow or its ability to satisfy its debt service obligations or to maintain its level of distributions on the Common Stock or Preferred Stock. However, if the pandemic continues, it will have an adverse effect on the Company’s business, financial condition, results of operations, and liquidity for the remainder of 2020. We also continue to examine the impact that the CARES Act may have on our business and currently, we are unable to determine the impact that the CARES Act will have on our business, financial condition, results of operations, or liquidity.

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- Definition The entire disclosure for an event or transaction that is unusual in nature or infrequent in occurrence, or both. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=114868817 + Details
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