Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies - Additional Information (Details)

v3.19.2
Summary of Significant Accounting Policies - Additional Information (Details)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2019
USD ($)
Property
$ / shares
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
Property
$ / shares
Jun. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
$ / shares
Jan. 01, 2019
USD ($)
Property, Plant and Equipment [Line Items]            
Impairment of assets held for sale $ 1,147 $ 0 $ 1,147 $ 0    
Maturity of highly liquid investments     90 days      
Insurance coverage amount     $ 250      
Past due rent charge term     5 days      
Allowance for uncollectible accounts 982   $ 982   $ 1,070  
Provision for credit losses 110 165 200 263    
Tenant recoveries realized from previous charge-offs 0 0 $ 0 0    
Property management fee, percent fee     3.00%      
Asset management fee, percent fee     2.00%      
Minimum percentage of taxable income to be distributed to stockholders (as percent)     90.00%      
Provision for federal income taxes     $ (23)   $ 13  
Term of disqualification to be taxed as a REIT due to loss of REIT status     5 years      
Advertising $ 114 $ 115 $ 163 $ 158    
Common Stock, Par or Stated Value Per Share | $ / shares $ 0.01   $ 0.01   $ 0.01  
ROU assets $ 11,762   $ 11,762   $ 0  
Number of undeveloped land parcels | Property 6   6      
Real Estate    
Real Estate
Investment properties consist of the following (in thousands):
 
June 30, 2019
 
December 31, 2018
 
(unaudited)
 
 
Land and land improvements
$
100,351

 
$
101,696

Buildings and improvements
367,056

 
374,499

Investment properties at cost
467,407

 
476,195

Less accumulated depreciation
(44,901
)
 
(40,189
)
    Investment properties, net
$
422,506

 
$
436,006


The Company’s depreciation expense on investment properties was $2.88 million and $6.07 million for the three and six months ended June 30, 2019, respectively. The Company’s depreciation expense on investment properties was $3.33 million and $6.50 million for the three and six months ended June 30, 2018, respectively.
A significant portion of the Company’s land, buildings and improvements serve as collateral for its mortgage loans payable portfolio. Accordingly, restrictions exist as to the encumbered property’s transferability, use and other common rights typically associated with property ownership.

Assets Held for Sale

At December 31, 2018, assets held for sale included a 1.28 acre undeveloped land parcel at Harbor Pointe ("Harbor Pointe land parcel"), Graystone Crossing and Jenks Plaza. All three were sold during the six months ended June 30, 2019. Additionally, in 2019 the Board committed to a plan to sell Perimeter Square, which is classified as assets held for sale as of June 30, 2019.

The Harbor Pointe land parcel sale represents discontinued operations as it is a strategic shift that has a major effect on the Company's financial position or results of operations. Accordingly, the assets and liabilities associated with the Harbor Pointe land parcel have been reclassified for all periods presented.

The $1.15 million impairment charge on assets held for sale for the three and six months ended June 30, 2019 is based on the carrying value of the property exceeding the fair value, less selling costs based on the recent sale subsequent to June 30, 2019, see Note 12. These valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 2 inputs.

As of June 30, 2019 and December 31, 2018, assets held for sale and associated liabilities, excluding discontinued operations, consisted of the following (in thousands):
 
 
June 30, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Investment properties, net
 
$
6,634

 
$
4,912

Rents and other tenant receivables, net
 
111

 
72

Above market leases, net
 

 
420

Deferred costs and other assets, net
 
54

 
228

Total assets held for sale, excluding discontinued operations
$
6,799

 
$
5,632

 
 
June 30, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Loans payable
 
$
6,497

 
$
3,818

Below market leases, net
 
1

 

Accounts payable
 
352

 
240

Total liabilities associated with assets held for sale, excluding discontinued operations
$
6,850

 
$
4,058

As of June 30, 2019 and December 31, 2018, assets held for sale and associated liabilities for discontinued operations, consisted of the following (in thousands):
 
 
June 30, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Investment properties, net
 
$

 
$
486

Total assets held for sale, discontinued operations
 
$

 
$
486

 
 
June 30, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Loans payable
 
$

 
$
460

Accounts payable
 

 
2

Total liabilities associated with assets held for sale, discontinued operations
$

 
$
462


Dispositions

In May 2019, an approximate 10,000 square foot outparcel at the JANAF property was demolished resulting in a $331 thousand write-off to make way for a new approximate 20,000 square foot building constructed by a new grocer tenant.

The following properties were sold during the six months ended June 30, 2019 and 2018:

Disposal Date
 
Property
 
Contract Price
 
Gain
 
Net Proceeds
 
 
 
 
(in thousands, unaudited)
March 18, 2019
 
Graystone Crossing
 
$
6,000

 
$
1,452

 
$
1,744

February 7, 2019
 
Harbor Pointe Land Parcel (1.28 acres)
 
550

 

 
19

January 11, 2019
 
Jenks Plaza
 
2,200

 
387

 
1,840

June 19, 2018
 
Laskin Road Land Parcel (1.5 acres)
 
2,858

 
903

 
2,747

January 12, 2018
 
Chipotle Ground Lease at Conyers Crossing
 
1,270

 
1,055

 
1,160


    
The sale of the Chipotle ground lease at Conyers Crossing, Jenks Plaza and Graystone Crossing did not represent a strategic shift that has a major effect on the Company's financial position or results of operations. Accordingly, the operating results of these properties remains classified within continuing operations for all periods presented.

JANAF Executive Building
In April 2019, the Company absorbed an approximate 25,000 square foot outparcel at JANAF as a result of an unlawful detainer with a delinquent tenant, Mariner Investments, LTD.

The Company inadvertently disclosed the former tenant as Mariner Finance, LLC in the Form 10-Q for the three months ended March 31, 2019 in error.
     
ASU 2016-02            
Property, Plant and Equipment [Line Items]            
ROU assets           $ 11,900
Lease liability           $ 11,990
Incremental borrowing rate on leases           4.84%
Building and building improvements | Minimum            
Property, Plant and Equipment [Line Items]            
Property, Plant and Equipment, Useful Life     5 years      
Building and building improvements | Maximum            
Property, Plant and Equipment [Line Items]            
Property, Plant and Equipment, Useful Life     40 years      
Rent and other tenant receivables            
Property, Plant and Equipment [Line Items]            
Recoveries related to tenant receivables $ 3,300   $ 3,300   $ 3,120  
New Lease            
Property, Plant and Equipment [Line Items]            
Commission fee, percent fee     6.00%      
Renewed Lease            
Property, Plant and Equipment [Line Items]            
Commission fee, percent fee     3.00%