0001569187-23-000115 | 10-Q | XBRL Viewer | Armada Hoffler Properties INC

Significant Accounting Policies	9 Months Ended
Significant Accounting Policies	Sep. 30, 2023
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The condensed consolidated financial statements include the financial position and results of operations of the Company and its subsidiaries. The Company’s subsidiaries include the Operating Partnership and the subsidiaries that are wholly owned or in which the Company has a controlling interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity ("VIE") in accordance with the consolidation guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition, and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best judgment after considering past, current, and expected events and economic conditions. Actual results could differ significantly from management’s estimates. Reclassifications Certain items have been reclassified from their prior year classifications to conform to the current year presentation. Effective for the nine months ended September 30, 2023, the Company has changed the presentation of its condensed consolidated statements of comprehensive income. For the three and nine months ended September 30, 2022, the Company reclassified interest income of $3.5 million and $10.4 million, respectively, from non-operating income to operating income. As a result, total revenues and operating income increased by $3.5 million and $10.4 million, respectively, compared to previous reporting. These reclassifications had no effect on net income or stockholder's equity as previously reported. Recent Accounting Pronouncements Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04 Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848), which became effective on March 12, 2020. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives, and other contracts. This ASU also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by reference rate reform. Application of the guidance is optional and only available in certain situations. In January 2021, FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848). The amendments in this standard are elective and principally apply to entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Similar to ASU No. 2020-04, provisions of this ASU are effective upon issuance. In December 2022, FASB issued ASU 2022-06 Deferral of the Sunset Date of Topic 848 which became effective immediately upon issuance. ASU 2022-06 deferred the sunset date of Topic 848 to December 31, 2024. During the nine months ended September 30, 2023, the Company elected to apply the practical expedients to modifications of qualifying contracts as continuations of the existing contracts rather than as new contracts. The adoption of the new guidance did not have a material impact on the consolidated financial statements. Derivative Financial Instruments The Company may enter into interest rate derivatives to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. The Company recognizes derivative financial instruments at fair value and presents them within other assets and liabilities in the condensed consolidated balance sheets. Gains and losses from derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of derivatives and other caption in the condensed consolidated statements of comprehensive income. For derivatives that qualify as cash flow hedges, the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. For interest rate caps that qualify as cash flow hedges, the premium paid by the Company at inception represents the time value of the instrument and is excluded from the hedge effectiveness assessment. The excluded component is amortized over the life of the derivative instrument and presented within interest expense in the condensed consolidated statements of comprehensive income. Cash flows for derivative financial instruments are classified as cash flows from operating activities within the condensed consolidated statements of cash flows, unless there is an other-than-insignificant financing element present at inception of the derivative. For derivatives with an other-than-insignificant financing element at inception due to off-market terms, cash flows are classified as cash flows from investing or financing activities within the condensed consolidated statements of cash flows depending on the derivative's off-market nature at inception. Other Accounting Policies See the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for a description of other accounting principles upon which basis the accompanying consolidated financial statements were prepared.

Derivative Financial Instruments - Schedule of Derivatives (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Derivative [Line Items]
Notional Amount	$ 1,475,317	$ 1,288,349
Asset, fair value	39,922	29,115
Liability, fair value	0	0
Interest rate swaps
Derivative [Line Items]
Notional Amount	1,298,753
Interest rate caps
Derivative [Line Items]
Notional Amount	176,564
Derivatives not designated as accounting hedges
Derivative [Line Items]
Notional Amount	620,000	539,479
Asset, fair value	22,465	4,303
Liability, fair value	0	0
Derivatives not designated as accounting hedges \| Interest rate swaps
Derivative [Line Items]
Notional Amount	620,000	250,000
Asset, fair value	22,465	2,201
Liability, fair value	0	0
Derivatives not designated as accounting hedges \| Interest rate caps
Derivative [Line Items]
Notional Amount	0	289,479
Asset, fair value	0	2,102
Liability, fair value	0	0
Derivatives designated as accounting hedges \| Interest rate swaps
Derivative [Line Items]
Notional Amount	678,753	187,670
Asset, fair value	15,777	11,247
Liability, fair value	0	0
Derivatives designated as accounting hedges \| Interest rate caps
Derivative [Line Items]
Notional Amount	176,564	561,200
Asset, fair value	1,680	13,565
Liability, fair value	$ 0	$ 0

Notes Receivable and Current Expected Credit Losses - Schedule of Interest on the Mezzanine Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	$ 3,690	$ 3,490	$ 10,823	$ 10,410
Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	3,496	3,372	10,257	10,070
Other interest income
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	194	118	566	340
Nexton Multifamily \| Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	0	680	0	1,966
Solis City Park II \| Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	740	329	2,142	554
Solis Gainesville II \| Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	717	0	1,964	0
Solis Kennesaw \| Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	1,164	0	1,629	0
Solis Peachtree Corners \| Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	617	0	617	0
The Allure at Edinburgh \| Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	258	0	258	0
The Interlock \| Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	$ 0	$ 2,363	$ 3,647	$ 7,550

Segments - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segments - Additional Information (Details) $ in Thousands	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)
Segment Reporting Information
Number of reportable segments \| segment			5
General contracting and real estate services revenues	$ 99,408	$ 69,024	$ 286,220	$ 138,947
Depreciation and amortization	22,462	17,527	60,808	54,865
General contracting and real estate services
Segment Reporting Information
General contracting and real estate services revenues	99,408	69,024	286,220	138,947
General contracting and real estate services expenses	96,095	66,252	276,336	133,491
Retail real estate
Segment Reporting Information
Depreciation and amortization	4,300	3,800	12,800	13,300
Interest expense	2,900	3,600	8,100	10,100
Office real estate
Segment Reporting Information
Depreciation and amortization	8,100	6,700	22,600	20,200
Interest expense	2,800	3,100	7,500	7,900
Multifamily real estate
Segment Reporting Information
Depreciation and amortization	9,900	6,900	25,000	21,100
Interest expense	2,400	2,200	6,900	6,100
Intercompany Eliminations \| General contracting and real estate services
Segment Reporting Information
General contracting and real estate services revenues	13,400	20,800	40,000	43,600
General contracting and real estate services expenses	$ 13,300	$ 20,600	$ 39,600	$ 43,100

Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Lessee Disclosures

As a lessee, the Company has nine ground leases on nine properties. These ground leases have maximum lease terms (including renewal options) that expire between 2074 and 2117. The exercise of lease renewal options is at the Company's sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Five of these leases have been classified as operating leases and four of these leases have been classified as finance leases. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants.

Lessor Disclosures

As a lessor, the Company leases its properties under operating leases and recognizes base rents on a straight-line basis over the lease term. The Company also recognizes revenue from tenant recoveries, through which tenants reimburse the Company on an accrual basis for certain expenses such as utilities, janitorial services, repairs and maintenance, security and alarms, parking lot and ground maintenance, administrative services, management fees, insurance, and real estate taxes. Rental revenues are reduced by the amount of any leasing incentives amortized on a straight-line basis over the term of the applicable lease. In addition, the Company recognizes contingent rental revenue (e.g., percentage rents based on tenant sales thresholds) when the sales thresholds are met. Many tenant leases include one or more options to renew, with renewal terms that can extend the lease term from one to 25 years, or more. The exercise of lease renewal options is at the tenant's sole discretion. The Company includes a renewal period in the lease term only if it appears at lease inception that the renewal is reasonably assured.

Rental revenue for the three and nine months ended September 30, 2023 and 2022 comprised the following (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Base rent and tenant charges	$	61,021	$	51,978	$	172,585	$	158,281
Accrued straight-line rental adjustment	1,505		1,506		4,748		4,542
Lease incentive amortization	(123)		(171)		(438)		(517)
(Above) below market lease amortization, net	510		430		2,187		1,296
Total rental revenue	$	62,913	$	53,743	$	179,082	$	163,602

Leases

Lessee Disclosures

Lessor Disclosures

Rental revenue for the three and nine months ended September 30, 2023 and 2022 comprised the following (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Base rent and tenant charges	$	61,021	$	51,978	$	172,585	$	158,281
Accrued straight-line rental adjustment	1,505		1,506		4,748		4,542
Lease incentive amortization	(123)		(171)		(438)		(517)
(Above) below market lease amortization, net	510		430		2,187		1,296
Total rental revenue	$	62,913	$	53,743	$	179,082	$	163,602

Derivative Financial Instruments - Floating-to-Fixed Interest Rate Swaps (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jul. 06, 2023	Jul. 05, 2023	Apr. 03, 2023	Dec. 31, 2022	Sep. 01, 2022	Jul. 05, 2022	Nov. 01, 2020
Derivative [Line Items]
Notional Amount	$ 1,475,317				$ 1,288,349
Interest rate swaps
Derivative [Line Items]
Notional Amount	1,298,753
Interest rate swaps \| Secured Overnight Financing Rate (SOFR) \| Minimum
Derivative [Line Items]
Rate corridor, terminated		1.00%	1.00%
Interest rate swaps \| Secured Overnight Financing Rate (SOFR) \| Maximum
Derivative [Line Items]
Rate corridor, terminated		3.00%	3.00%
Interest rate caps
Derivative [Line Items]
Notional Amount	176,564
Interest rate caps \| Bloomberg Short Term Bank Yield Index (BSBY)
Derivative [Line Items]
Notional amount, terminated				$ 175,000
Interest rate cap, terminated				4.00%
Interest rate caps \| Bloomberg Short Term Bank Yield Index (BSBY) \| Minimum
Derivative [Line Items]
Rate corridor, terminated				1.00%
Interest rate caps \| Bloomberg Short Term Bank Yield Index (BSBY) \| Maximum
Derivative [Line Items]
Rate corridor, terminated				3.00%
Floating rate pool of loans 3.40% \| Interest rate swaps \| Secured Overnight Financing Rate (SOFR)
Derivative [Line Items]
Notional amount, terminated		$ 50,000
Floating rate pool of loans 3.39% \| Interest rate swaps \| Secured Overnight Financing Rate (SOFR)
Derivative [Line Items]
Notional amount, terminated			$ 200,000
Derivatives designated as accounting hedges \| Interest rate swaps
Derivative [Line Items]
Notional Amount	678,753				187,670
Derivatives designated as accounting hedges \| Interest rate caps
Derivative [Line Items]
Notional Amount	176,564				561,200
Derivatives designated as accounting hedges \| Interest rate caps \| Secured Overnight Financing Rate (SOFR)
Derivative [Line Items]
Notional Amount	73,600					$ 57,089	$ 35,100	$ 84,375
Derivatives designated as accounting hedges \| Senior unsecured term loan \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 10,500
Swap Fixed Rate	2.94%
Debt effective rate	4.34%
Derivatives designated as accounting hedges \| Floating rate pool of loans 3.40% \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 50,000
Swap Fixed Rate	3.40%
Debt effective rate	4.91%
Derivatives designated as accounting hedges \| Constellation Energy Building \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 175,000
Swap Fixed Rate	1.84%
Debt effective rate	3.46%
Derivatives designated as accounting hedges \| Floating rate pool of loans 3.39% \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 200,000
Swap Fixed Rate	3.39%
Debt effective rate	4.90%
Derivatives designated as accounting hedges \| Senior Unsecured Term Loan 0.42% \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 25,000
Swap Fixed Rate	0.42%
Debt effective rate	1.82%
Derivatives designated as accounting hedges \| Senior Unsecured Term Loan 0.33% \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 25,000
Swap Fixed Rate	0.33%
Debt effective rate	1.73%
Derivatives designated as accounting hedges \| Senior Unsecured Term Loan 0.44% \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 25,000
Swap Fixed Rate	0.44%
Debt effective rate	1.84%
Derivatives designated as accounting hedges \| Thames Street Wharf \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 68,253
Swap Fixed Rate	0.93%
Debt effective rate	2.33%
Derivatives designated as accounting hedges \| M&T unsecured term loan \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 100,000
Swap Fixed Rate	3.50%
Debt effective rate	4.90%
Derivatives not designated as accounting hedges
Derivative [Line Items]
Notional Amount	$ 620,000				539,479
Derivatives not designated as accounting hedges \| Interest rate swaps
Derivative [Line Items]
Notional Amount	620,000				250,000
Derivatives not designated as accounting hedges \| Interest rate caps
Derivative [Line Items]
Notional Amount	0				$ 289,479
Derivatives not designated as accounting hedges \| Harbor Point Parcel 3 senior construction loan 4.70% \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 90,000
Swap Fixed Rate	2.75%
Debt effective rate	4.82%
Notional amount, terminated	$ 180,400
Amount paid to buy down the swap fixed rate	3,600
Derivatives not designated as accounting hedges \| Floating rate pool of loans 2.75% \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 330,000
Swap Fixed Rate	2.75%
Debt effective rate	4.26%
Amount paid to buy down the swap fixed rate	$ 13,300
Derivatives not designated as accounting hedges \| Revolving credit facility and TD unsecured term loan \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 100,000
Swap Fixed Rate	3.20%
Debt effective rate	4.70%
Derivatives not designated as accounting hedges \| Senior Unsecured Term Loan 3.43% \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 100,000
Swap Fixed Rate	3.43%
Debt effective rate	4.83%

Business of Organization	9 Months Ended
Business of Organization	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business of Organization	Business of Organization Armada Hoffler Properties, Inc. (the "Company") is a vertically integrated, self-managed real estate investment trust ("REIT") with over four decades of experience developing, building, acquiring, and managing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. The Company also provides general construction and development services to third-party clients, in addition to developing and building properties to be placed in their stabilized portfolio. The Company is the sole general partner of Armada Hoffler, L.P. (the "Operating Partnership") and, as of September 30, 2023, owned 75.8% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are carried on primarily through the Operating Partnership and the wholly owned subsidiaries thereof. As of September 30, 2023, the Company's property portfolio consisted of 59 stabilized operating properties and two properties under development or not stabilized. Refer to Note 5 for information related to the Company's recent acquisitions and dispositions of properties.

Segments - Reconciliation NOI of Net Income (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information
Net operating income	$ 48,371			$ 40,846			$ 138,287	$ 121,850
Depreciation and amortization	(22,462)			(17,527)			(60,808)	(54,865)
Amortization of right-of-use assets - finance leases	(425)			(278)			(1,049)	(833)
General and administrative expenses	(4,286)			(3,854)			(13,786)	(12,179)
Acquisition, development, and other pursuit costs	0			0			(18)	(37)
Impairment charges	(5)			0			(107)	(333)
Gain on real estate dispositions, net	227			33,931			738	53,424
Interest expense	(15,444)			(10,345)			(41,375)	(28,747)
Loss on extinguishment of debt	0			(2,123)			0	(2,899)
Change in fair value of derivatives and other	2,466			782			5,024	7,512
Unrealized credit loss (provision) release	(694)			42			(871)	(858)
Other income (expense), net	63			118			324	415
Income tax (provision) benefit	(310)			(181)			(834)	140
Net income	8,423	$ 14,885	$ 5,417	42,369	$ 30,767	$ 12,276	28,725	85,412
Corporate And Reconciling Items
Segment Reporting Information
Interest income	194			118			566	340
Gain on real estate dispositions, net	227			33,931			738	53,424
Interest expense	(14,716)			(9,505)			(38,741)	(26,265)
Real estate financing
Segment Reporting Information
Net operating income	2,768			2,532			7,623	7,588
Interest income	3,496			3,372			10,257	10,070
Real estate financing \| Operating Segments
Segment Reporting Information
Interest income	3,500			3,400			10,300	10,100
Interest expense	$ (700)			$ (800)			$ (2,600)	$ (2,500)

Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Dividend declared	$ 0.195	$ 0.195	$ 0.19	$ 0.19	$ 0.17	$ 0.17

Commitments and Contingencies - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) note_receivable	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Commitments and Contingencies
Line of credit, performance and payment bonds	$ 7,700	$ 8,500
Number of notes receivable \| note_receivable	6
Allowance related to unfunded commitments	$ 857	$ 338	$ 354	$ 10
Unfunded loan commitment
Commitments and Contingencies
Loans and leases receivable, commitments, variable rates	52,100
Harbor Point Parcel 4 \| Payment Guarantee
Commitments and Contingencies
Outstanding guarantee	100
Senior loan	$ 32,900

Derivative Financial Instruments - Schedule of LIBOR interest rate caps (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 01, 2022	Jul. 05, 2022	Nov. 01, 2020
Derivative [Line Items]
Notional Amount	$ 1,475,317	$ 1,288,349
Interest rate caps
Derivative [Line Items]
Notional Amount	176,564
Premium Paid	$ 1,581
Cap rate purchased, interest rate	1.00%
Interest rate caps \| Minimum
Derivative [Line Items]
Strike Rate	1.00%
Interest rate caps \| Maximum
Derivative [Line Items]
Strike Rate	3.00%
Interest Rate Cap Two
Derivative [Line Items]
Cap rate sold, interest rate	3.00%
Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 1,298,753
Derivatives designated as accounting hedges \| Interest rate caps
Derivative [Line Items]
Notional Amount	176,564	561,200
Derivatives designated as accounting hedges \| Interest rate caps \| Secured Overnight Financing Rate (SOFR)
Derivative [Line Items]
Notional Amount	73,600		$ 57,089	$ 35,100	$ 84,375
Strike Rate					1.84%
Premium Paid			$ 1,370	$ 120	$ 91
Derivatives designated as accounting hedges \| Interest rate caps \| Secured Overnight Financing Rate (SOFR) \| Minimum
Derivative [Line Items]
Strike Rate			1.00%	1.00%
Derivatives designated as accounting hedges \| Interest rate caps \| Secured Overnight Financing Rate (SOFR) \| Maximum
Derivative [Line Items]
Strike Rate			3.00%	3.00%
Derivatives designated as accounting hedges \| Interest rate swaps
Derivative [Line Items]
Notional Amount	678,753	187,670
Derivatives not designated as accounting hedges
Derivative [Line Items]
Notional Amount	620,000	539,479
Derivatives not designated as accounting hedges \| Interest rate caps
Derivative [Line Items]
Notional Amount	0	289,479
Derivatives not designated as accounting hedges \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 620,000	$ 250,000

Segments

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segments

The Company operates its business in five reportable segments: (i) retail real estate, (ii) office real estate, (iii) multifamily real estate, (iv) general contracting and real estate services, and (v) real estate financing. Refer to Note 1 of the Company's Form 10-K for the composition of properties within each property segment. Since the Company's Annual Report on Form 10-K for the year ended December 31, 2022, the Company introduced real estate financing as a reportable segment. The real estate financing segment includes the Company's mezzanine loans and preferred equity investments on development projects. The change in segmental presentation is a result of the chief operating decision-maker now separately reviewing the results of the real estate financing investments, which are no longer considered to be ad hoc investments, but an evolving portfolio.

Net operating income ("NOI") is the primary measure used by the Company’s chief operating decision-maker to assess segment performance. NOI is calculated as segment revenues less segment expenses. Segment revenues include rental revenues for the property segments, general contracting and real estate services revenues for the general contracting and real estate services segment, and interest income for the real estate financing segment. Segment expenses include rental expenses and real estate taxes for the property segments, general contracting and real estate services expenses for the general contracting and real estate services segment, and interest expense for the real estate financing segment. Segment NOI for the general contracting and real estate services and real estate financing segments is also referred to as segment gross profit as illustrated in the table below. NOI is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, NOI should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate, construction, and real estate financing businesses.

The following table presents NOI for the Company's five reportable segments for the three and nine months ended September 30, 2023 and 2022 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Retail real estate
Rental revenues	$	25,858	$	21,223	$	73,004	$	64,197
Rental expenses	4,125		3,420		11,715		10,254
Real estate taxes	2,312		2,206		6,789		6,715
Segment net operating income	19,421		15,597		54,500		47,228
Office real estate
Rental revenues	22,077		18,687		62,156		54,024
Rental expenses	5,925		4,886		16,282		13,626
Real estate taxes	2,262		2,044		6,524		5,583
Segment net operating income	13,890		11,757		39,350		34,815
Multifamily real estate
Rental revenues	14,978		13,833		43,922		45,381
Rental expenses	4,706		4,441		13,395		14,221
Real estate taxes	1,293		1,204		3,597		4,397
Segment net operating income	8,979		8,188		26,930		26,763
General contracting and real estate services
General contracting and real estate services revenues	99,408		69,024		286,220		138,947
General contracting and real estate services expenses	96,095		66,252		276,336		133,491
Segment gross profit	3,313		2,772		9,884		5,456
Real estate financing
Interest income	3,496		3,372		10,257		10,070
Interest expense(a)	728		840		2,634		2,482
Segment gross profit	2,768		2,532		7,623		7,588
Net operating income	$	48,371	$	40,846	$	138,287	$	121,850

________________________________________

(a) Interest expense within the real estate financing segment is allocated based on the average outstanding principal of notes receivable in the real estate financing portfolio, and the effective interest rate on the credit facility, as defined in Note 8.

The following table reconciles NOI to net income, the most directly comparable GAAP measure, for the three and nine months ended September 30, 2023 and 2022 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net operating income	$	48,371	$	40,846	$	138,287	$	121,850
Interest income(a)	194		118		566		340
Depreciation and amortization	(22,462)		(17,527)		(60,808)		(54,865)
Amortization of right-of-use assets - finance leases	(425)		(278)		(1,049)		(833)
General and administrative expenses	(4,286)		(3,854)		(13,786)		(12,179)
Acquisition, development, and other pursuit costs	—		—		(18)		(37)
Impairment charges	(5)		—		(107)		(333)
Gain on real estate dispositions, net	227		33,931		738		53,424
Interest expense(b)	(14,716)		(9,505)		(38,741)		(26,265)

Loss on extinguishment of debt	—		(2,123)		—		(2,899)
Change in fair value of derivatives and other	2,466		782		5,024		7,512
Unrealized credit loss (provision) release	(694)		42		(871)		(858)
Other income (expense), net	63		118		324		415
Income tax (provision) benefit	(310)		(181)		(834)		140
Net income	$	8,423	$	42,369	$	28,725	$	85,412

________________________________________

(a) Excludes real estate financing segment interest income of $3.5 million and $3.4 million for the three months ended September 30, 2023 and 2022, respectively, and $10.3 million and $10.1 million for the nine months ended September 30, 2023 and 2022, respectively.

(b) Excludes real estate financing segment interest expense of $0.7 million and $0.8 million for the three months ended September 30, 2023 and 2022, respectively, and $2.6 million and $2.5 million for the nine months ended September 30, 2023 and 2022, respectively.

Rental expenses represent costs directly associated with the operation and management of the Company’s real estate properties. Rental expenses include asset management expenses, property management fees, repairs and maintenance, insurance, and utilities.

General contracting and real estate services revenues for the three months ended September 30, 2023 and 2022 exclude revenues related to intercompany construction contracts of $13.4 million and $20.8 million, respectively, which are eliminated in consolidation. General contracting and real estate services revenues for the nine months ended September 30, 2023 and 2022 exclude revenues related to intercompany construction contracts of $40.0 million and $43.6 million, respectively.

General contracting and real estate services expenses for the three months ended September 30, 2023 and 2022 exclude expenses related to intercompany construction contracts of $13.3 million and $20.6 million, respectively, which are eliminated in consolidation. General contracting and real estate services expenses for the nine months ended September 30, 2023 and 2022 exclude expenses related to intercompany construction contracts of $39.6 million and $43.1 million, respectively.

Depreciation and amortization expense for the three months ended September 30, 2023 was $9.9 million, $8.1 million, and $4.3 million for the retail, office, and multifamily real estate segments, respectively. Depreciation and amortization expense for the three months ended September 30, 2022 was $6.9 million, $6.7 million, and $3.8 million for the retail, office, and multifamily real estate segments, respectively. Depreciation and amortization expense for the nine months ended September 30, 2023 was $25.0 million, $22.6 million, and $12.8 million for the retail, office, and multifamily real estate segments, respectively. Depreciation and amortization expense for the nine months ended September 30, 2022 was $21.1 million, $20.2 million, and $13.3 million for the retail, office, and multifamily real estate segments, respectively.

General and administrative expenses represent costs not directly associated with the operation and management of the Company’s real estate properties, general contracting and real estate services, and real estate financing businesses. These costs include corporate office personnel compensation and benefits, bank fees, accounting fees, legal fees, and other corporate office expenses.

Interest expense on secured property debt for the three months ended September 30, 2023 was $2.4 million, $2.8 million, and $2.9 million for the retail, office, and multifamily real estate segments, respectively. Interest expense on secured property debt for the three months ended September 30, 2022 was $2.2 million, $3.1 million, and $3.6 million for the retail, office, and multifamily real estate segments, respectively. Interest expense on secured property debt for the nine months ended September 30, 2023 was $6.9 million, $7.5 million, and $8.1 million for the retail, office, and multifamily real estate segments, respectively. Interest expense on secured property debt for the nine months ended September 30, 2022 was $6.1 million, $7.9 million, and $10.1 million for the retail, office, and multifamily real estate segments, respectively.Assets included in each property segment are presented in Schedule III of the financial statements accompanying the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, which have only materially changed as of September 30, 2023 in respect to the acquisition of The Interlock. Refer to Note 5 for the allocation of The Interlock's assets by property segment. Assets attributable to the general contracting and real estate services segment are presented in Note 7 of these financial statements. Assets of the real estate financing segment are presented in Note 6 of these financial statements.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Real Estate Investment

9 Months Ended

Sep. 30, 2023

Real Estate [Abstract]

Real Estate Investment

Property Acquisitions

Constellation Energy Building

On January 14, 2023, the Company acquired an additional 11% membership interest in the Constellation Energy Building, increasing its ownership interest to 90%, in exchange for full satisfaction of the $12.8 million loan that was extended to the seller upon the acquisition of the property in January 2022.

The Interlock

On May 19, 2023, the Company acquired The Interlock, a 311,000 square foot Class A commercial mixed-use asset in West Midtown Atlanta anchored by Georgia Tech. The Interlock consists of office and retail space as well as structured parking. For segment reporting purposes, management has separated office and retail components of The Interlock into two operating properties respectively presented in the office and retail real estate segments. The Company acquired the asset for total consideration of $214.1 million plus capitalized acquisition costs of $1.2 million. As part of this acquisition, the Company paid $6.1 million in cash, redeemed its outstanding $90.2 million mezzanine loan, issued $12.2 million of Class A units of limited partnership interest in the Operating Partnership ("Class A Units") to the seller, and assumed the asset's senior construction loan of $105.6 million, that was paid off on the acquisition date using the proceeds of the TD term loan facility and an increase in borrowings under the revolving credit facility, both defined in Note 8. The Company also assumed the leasehold interest in the underlying land owned by Georgia Tech. The ground lease has an expiration in 2117 after considering renewal options.

The following table summarizes the purchase price allocation (including acquisition costs) based on the relative fair value of the assets acquired for the operating property purchased during the nine months ended September 30, 2023 (in thousands):


	The Interlock(1)


Building	$	183,907


In-place leases	35,234
Above-market leases	62
Below-market leases	(3,931)

Finance lease right-of-use assets(2)	46,616
Finance lease liabilities	(46,616)



Net assets acquired	$	215,272

________________________________________

(1) The net assets acquired attributable to the office and retail real estate segments were $134.6 million and $80.6 million, respectively.

(2) Excludes $1.1 million of rent for the finance lease, which was prepaid on the acquisition date. The total finance lease right-of-use asset recognized on the acquisition date was $47.7 million.

Property Disposition

Market at Mill Creek

On April 11, 2023, the Company completed the sale of a non-operating outparcel at Market at Mill Creek in full satisfaction of the outstanding consideration payable for the acquisition of the noncontrolling interest in the property completed on December 31, 2022. The gain recorded on this disposition was $0.5 million.

Brooks Crossing Retail Outparcel

On September 20, 2023, the Company exercised its option to purchase an outparcel adjacent to Brooks Crossing Retail and subsequently sold the outparcel. The gain recorded on this disposition was $0.2 million.

Equity Method Investments

Harbor Point Parcel 3

The Company owns a 50% interest in Harbor Point Parcel 3, a joint venture with Beatty Development Group, for purposes of developing T. Rowe Price's new global headquarters office building in Baltimore, Maryland. The Company is a noncontrolling partner in the joint venture and will serve as the project's general contractor. During the nine months ended September 30, 2023, the Company invested $0.5 million in Harbor Point Parcel 3. The Company has an estimated equity commitment of up to $45.6 million relating to this project. As of September 30, 2023 and December 31, 2022, the carrying value of the Company's investment in Harbor Point Parcel 3 was $40.3 million and $39.8 million, respectively, which excludes $1.8 million and $0.9 million, respectively, of intra-entity profits eliminated in consolidation. For the nine months ended September 30, 2023 and 2022, Harbor Point Parcel 3 had no operating activity; therefore, the Company received no allocated income.

Based on the terms of the operating agreement, the Company has concluded that Harbor Point Parcel 3 is a VIE and that the Company holds a variable interest. The Company has significant influence over the project due to its 50% ownership interest; however, the Company does not have the power to direct the activities of the project that most significantly impact its performance. This includes activity as the managing member of the entity, which is a power that is retained by the Company's joint venture partner. Accordingly, the Company is not the project's primary beneficiary and, therefore, does not consolidate Harbor Point Parcel 3 in its consolidated financial statements. The Company's investment in the project is recorded as an equity method investment in the consolidated balance sheets.

Harbor Point Parcel 4

On April 1, 2022, the Company acquired a 78% interest in Harbor Point Parcel 4, a real estate venture with Beatty Development Group, for purposes of developing a mixed-use project ("Allied | Harbor Point"), which is planned to include multifamily units, retail space, and a parking garage. The Company holds an option to increase its ownership to 90%. The Company is a noncontrolling partner in the real estate venture and will serve as the project's general contractor. During the nine months ended September 30, 2023, the Company invested $53.2 million in Harbor Point Parcel 4. The Company has an estimated equity commitment of up to $108.9 million relating to this project. As of September 30, 2023 and December 31, 2022, the carrying value of the Company's investment in Harbor Point Parcel 4 was $85.4 million and $32.2 million, respectively, which excludes $0.6 million and $0.2 million, respectively, of intra-entity profits eliminated in consolidation. For the nine months ended September 30, 2023, Harbor Point Parcel 4 had no operating activity; therefore, the Company received no allocated income.

Based on the terms of the operating agreement, the Company has concluded that Harbor Point Parcel 4 is a VIE and that the Company holds a variable interest. The Company has significant influence over the project due to its 78% ownership interest; however, the Company does not have the power to direct the activities of the project that most significantly impact its performance. This includes activity as the managing member of the entity, which is a power that is retained by the Company's partner. Accordingly, the Company is not the project's primary beneficiary and, therefore, does not consolidate Harbor Point Parcel 4 in its consolidated financial statements. The Company's investment in the project is recorded as an equity method investment in the consolidated balance sheets.

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	67,885,390	67,729,854
Common stock, shares outstanding (in shares)	67,885,390	67,729,854
Redeemable convertible preferred stock
Preferred stock, shares authorized (in shares)	9,980,000	9,980,000
Preferred Stock dividend rate percentage	6.75%	6.75%
Preferred stock, shares issued (in shares)	6,843,418	6,843,418
Preferred stock, shares outstanding (in shares)	6,843,418	6,843,418

Notes Receivable and Current Expected Credit Losses (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Summary of Notes Receivable Outstanding

The Company had the following notes receivable outstanding as of September 30, 2023 and December 31, 2022 ($ in thousands):


	Outstanding loan amount												Interest compounding
Development Project	September 30, 2023			December 31, 2022			Maximum principal commitment			Interest rate
Solis City Park II	$	23,567	(a)	$	19,062	(a)	$	20,594		13.0	%		Annually
Solis Gainesville II	21,471		(a)	6,638		(a)	19,595			14.0	%	(b)	Annually
Solis Kennesaw	11,003		(a)	—			37,870			14.0	%	(b)	Annually
Solis Peachtree Corners	7,798		(a)	—			28,440			15.0	%	(b)	Annually
The Allure at Edinburgh	9,485		(a)	—			9,228			15.0	%	(c)	None
The Interlock(d)	—			86,584		(a)	107,000		(e)	15.0	%		None
Total mezzanine & preferred equity	73,324			112,284			$	222,727
Constellation Energy Building note receivable	—			12,834
Other notes receivable	12,033		(a)	11,512		(a)
Notes receivable guarantee premium	—			701
Allowance for credit losses(f)	(1,644)			(1,292)

Total notes receivable	$	83,713		$	136,039

________________________________________

(a) Outstanding loan amounts include any accrued and unpaid interest, and accrued exit fees, as applicable.

(b) The interest rate varies over the life of the loans, and the Company also earns an unused commitment fee. Refer below under “Solis Gainesville II,” “Solis Kennesaw,” and “Solis Peachtree Corners” for further details.

(d) This note receivable was redeemed on May 19, 2023 in connection with the Company’s acquisition of The Interlock. Refer below under “The Interlock” for further details.

(e) This amount includes interest reserves.

(f) The amounts as of September 30, 2023 and December 31, 2022 exclude $0.9 million and $0.3 million of Current Expected Credit Losses (“CECL”) allowance that relates to the unfunded commitments, which were recorded as a liability under other liabilities in the consolidated balance sheets.

Summary of Interest Income

The Company recognized interest income for the three and nine months ended September 30, 2023 and 2022 as follows (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,
Development Project	2023			2022			2023			2022




Nexton Multifamily	$	—		$	680		$	—		$	1,966
Solis City Park II	740		(a)	329		(a)	2,142		(a)	554		(a)
Solis Gainesville II	717		(a)(b)	—			1,964		(a)(b)	—
Solis Kennesaw	1,164		(a)(b)	—			1,629		(a)(b)	—
Solis Peachtree Corners	617		(a)(b)	—			617		(a)(b)	—
The Allure at Edinburgh	258			—			258			—
The Interlock	—			2,363		(a)	3,647		(a)	7,550		(a)
Total mezzanine & preferred equity	3,496			3,372			10,257			10,070
Other interest income	194			118			566			340
Total interest income	$	3,690		$	3,490		$	10,823		$	10,410

________________________________________

(a) Includes recognition of interest income related to fee amortization.

(b) Includes recognition of unused commitment fees.

Allowance for Credit Losses on Financing Receivables

Changes in the allowance for the nine months ended September 30, 2023 and 2022 were as follows (in thousands):


	Nine Months Ended September 30, 2023						Nine Months Ended September 30, 2022
	Funded		Unfunded		Total		Funded		Unfunded		Total
Beginning balance	$	1,292	$	338	$	1,630	$	994	$	10	$	1,004

Unrealized credit loss provision (release)	817		519		1,336		514		344		858
Release due to redemption	(465)		—		(465)		—		—		—

Ending balance	$	1,644	$	857	$	2,501	$	1,508	$	354	$	1,862

Equity (Tables)

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Schedule of Dividends and Distributions

During the nine months ended September 30, 2023, the following dividends/distributions were declared or paid:

Equity type

Declaration Date

Record Date

Payment Date

Dividends per Share/Unit

Aggregate Dividends/Distributions on Stock and Units (in thousands)

Common Stock/Class A Units

11/04/2022

12/28/2023

01/05/2023

0.190

16,785

Common Stock/Class A Units

02/28/2023

03/29/2023

04/06/2023

0.190

16,825

Common Stock/Class A Units

05/08/2023

06/28/2023

07/06/2023

0.195

17,471

Common Stock/Class A Units

09/15/2023

09/27/2023

10/05/2023

0.195

17,476

Series A Preferred Stock

11/04/2022

01/03/2023

01/13/2023

0.421875

2,887

Series A Preferred Stock

02/28/2023

04/03/2023

04/14/2023

0.421875

2,887

Series A Preferred Stock

05/08/2023

07/03/2023

07/14/2023

0.421875

2,887

Series A Preferred Stock

09/15/2023

10/02/2023

10/13/2023

0.421875

2,887

Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2023

Sep. 30, 2022

OPERATING ACTIVITIES

Net income

$ 28,725

$ 85,412

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of buildings and tenant improvements

46,742

40,770

Amortization of leasing costs, in-place lease intangibles and below market ground rents - operating leases

14,066

14,094

Accrued straight-line rental revenue

(4,748)

(4,542)

Amortization of leasing incentives and above or below-market rents

(1,749)

(779)

Amortization of right-of-use assets - finance leases

1,049

833

Accrued straight-line ground rent expense

Unrealized credit loss provision

871

858

Adjustment for uncollectable lease accounts

1,251

441

Noncash stock compensation

2,951

2,712

Impairment charges

107

333

Noncash interest expense

5,721

4,360

Noncash loss on extinguishment of debt

2,899

Gain on real estate dispositions, net

(738)

(53,424)

Change in fair value of derivatives and other

(1,974)

(7,512)

Adjustment for receipts on off-market interest rate derivatives

(3,155)

Changes in operating assets and liabilities:

Property assets

(4,439)

(13,430)

Property liabilities

5,113

3,189

Construction assets

(23,531)

(34,971)

Construction liabilities

21,770

42,051

Interest receivable

(9,797)

(5,124)

Net cash provided by operating activities

78,290

78,267

INVESTING ACTIVITIES

Development of real estate investments

(40,538)

(62,388)

Tenant and building improvements

(16,004)

(11,743)

Acquisitions of real estate investments, net of cash received

(8,394)

(93,389)

Dispositions of real estate investments, net of selling costs

246

251,492

Notes receivable issuances

(42,010)

(24,235)

Notes receivable paydowns

13,239

Payments to purchase off-market interest rate derivatives

(16,856)

Receipts on off-market interest rate derivatives

3,155

Leasing costs

(3,217)

(3,814)

Leasing incentives

(20)

(51)

Contributions to equity method investments

(53,689)

(51,565)

Net cash (used for) provided by investing activities

(177,327)

17,546

FINANCING ACTIVITIES

Proceeds from issuance of common stock, net of issuance cost

(204)

65,159

Common shares tendered for tax withholding

(1,111)

(774)

Debt issuances, credit facility, and construction loan borrowings

310,402

491,514

Debt and credit facility repayments, including principal amortization

(162,393)

(563,435)

Debt issuance costs

(2,839)

(6,727)

Acquisition of NCI in consolidated RE investments

(3,901)

Redemption of operating partnership units

(705)

(130)

Distributions to noncontrolling interests

(1,231)

(5,507)

Contributions from noncontrolling interests

Dividends and distributions

(59,742)

(52,904)

Net cash provided by (used for) financing activities

82,177

(76,691)

Net (decrease) increase in cash, cash equivalents, and restricted cash

(16,860)

19,122

Cash, cash equivalents, and restricted cash, beginning of period

51,865

40,443

Cash, cash equivalents, and restricted cash, end of period

^[1]

35,005

59,565

Supplemental Disclosures (noncash transactions):

Increase in dividends and distributions payable

683

2,536

Increase (decrease) in accrued capital improvements and development costs

2,033

(5,139)

Increase in settlement liability for the repurchase of common stock

643

Issuance of operating partnership units for acquisitions

12,194

Operating Partnership units redeemed for common shares

132

Debt assumed at fair value in conjunction with real estate purchases

105,584

156,071

Note receivable redeemed in conjunction with real estate purchase

90,232

Acquisitions of noncontrolling interests

12,834

Noncontrolling interest in acquired real estate entity

23,065

Other liability satisfied in connection with a real estate disposal

750

Recognition of operating lease right-of-use assets

110

Recognition of operating lease liabilities

110

Recognition of finance lease right-of-use assets

47,742

Recognition of finance lease liabilities

$ 46,616

$ 0

[1]

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the Condensed Consolidated Statements of Cash Flows (in thousands):


	September 30, 2023		September 30, 2022
Cash and cash equivalents	$	32,662	$	54,700
Restricted cash (a)	2,343		4,865
Cash, cash equivalents, and restricted cash	$	35,005	$	59,565

(a) Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements.

Indebtedness	9 Months Ended
Indebtedness	Sep. 30, 2023
Debt Disclosure [Abstract]
Indebtedness	Indebtedness Credit Facility On August 23, 2022, the Company and the Operating Partnership entered into an amended and restated credit agreement (the "Credit Agreement"), which provides for a $550.0 million credit facility comprised of a $250.0 million senior unsecured revolving credit facility (the "revolving credit facility") and a $300.0 million senior unsecured term loan facility (the "term loan facility" and, together with the revolving credit facility, the "credit facility"), with a syndicate of banks. The credit facility includes an accordion feature that allows the total commitments to be increased to $1.0 billion, subject to certain conditions, including obtaining commitments from any one or more lenders. The revolving credit facility has a scheduled maturity date of January 22, 2027, with two six-month extension options, subject to the Company's satisfaction of certain conditions, including payment of a 0.075% extension fee at each extension. The term loan facility has a scheduled maturity date of January 21, 2028. On August 29, 2023, the Company increased the capacity of the revolving credit facility by $105.0 million by exercising the accordion feature in part, bringing the revolving credit facility capacity to $355.0 million and the total credit facility capacity to $655.0 million. The revolving credit facility bears interest at Secured Overnight Financing Rate ("SOFR") plus a margin ranging from 1.30% to 1.85% and a credit spread adjustment of 0.10%, and the term loan facility bears interest at SOFR plus a margin ranging from 1.25% to 1.80% and a credit spread adjustment of 0.10%, in each case depending on the Company's total leverage. The Company is also obligated to pay an unused commitment fee of 15 or 25 basis points on the unused portions of the commitments under the revolving credit facility, depending on the amount of borrowings under the revolving credit facility. If the Company or the Operating Partnership attains investment grade credit ratings from both S&P Global Ratings and Moody's Investors Service, Inc., the Operating Partnership may elect to have borrowings become subject to interest rates based on such credit ratings. As of September 30, 2023 and December 31, 2022, the outstanding balance on the revolving credit facility was $200.0 million and $61.0 million, respectively. The outstanding balance on the term loan facility was $300.0 million as of both September 30, 2023 and December 31, 2022. As of September 30, 2023, the effective interest rates on the revolving credit facility and the term loan facility, before giving effect to interest rate caps and swaps, were 6.82% and 6.72%, respectively. After giving effect to interest rate caps and swaps, the effective interest rates on the revolving credit facility and the term loan facility were 4.40% and 3.02%, respectively, as of September 30, 2023. The Operating Partnership may, at any time, voluntarily prepay any loan under the credit facility in whole or in part without premium or penalty. The Operating Partnership is the borrower, and its obligations under the credit facility are guaranteed by the Company and certain of its subsidiaries that are not otherwise prohibited from providing such guaranty. The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Company's ability to borrow under the credit facility is subject to ongoing compliance with a number of financial covenants, affirmative covenants, and other restrictions. The Credit Agreement includes customary events of default, in certain cases subject to customary cure periods. The occurrence of an event of default, if not cured within the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest, and all other amounts payable under the credit facility to be immediately due and payable. M&T Term Loan Facility On December 6, 2022, the Company, as parent guarantor, and the Operating Partnership, as borrower, entered into a term loan agreement (the "M&T term loan agreement") with Manufacturers and Traders Trust Company, as lender and administrative agent, which provides a $100.0 million senior unsecured term loan facility (the "M&T term loan facility"), with the option to increase the total capacity to $200.0 million, subject to the Company's satisfaction of certain conditions. The proceeds from the M&T term loan facility were used to repay the loans secured by the Wills Wharf, 249 Central Park Retail, Fountain Plaza Retail, and South Retail properties. The M&T term loan facility has a scheduled maturity date of March 8, 2027, with a one-year extension option, subject to the Company's satisfaction of certain conditions, including payment of a 0.075% extension fee. The M&T term loan facility bears interest at a rate elected by the Operating Partnership based on term SOFR, Daily Simple SOFR, or the Base Rate (as defined below), and in each case plus a margin. A term SOFR or Daily Simple SOFR loan is also subject to a credit spread adjustment of 0.10%. The margin under each interest rate election depends on the Company's total leverage. The "Base Rate" is equal to the highest of: (a) the rate of interest in effect for such day as publicly announced from time to time by M&T Bank as its “prime rate” for such day, (b) the Federal Funds Rate for such day, plus 0.50%, (c) one month term SOFR for such day plus 100 basis points and (d) 1.00%. The Operating Partnership has elected for the loan to bear interest at term SOFR plus margin. If the Company or the Operating Partnership attains investment grade credit ratings from both S&P Global Ratings and Moody's Investor Service, Inc., the Operating Partnership may elect to have borrowings become subject to interest rates based on such credit ratings. As of each of September 30, 2023 and December 31, 2022, the outstanding balance on the M&T term loan facility was $100.0 million. As of September 30, 2023, the effective interest rate on the M&T term loan facility, before giving effect to interest rate swaps, was 6.72%. After giving effect to interest rate swaps, the effective interest rate on the M&T term loan facility was 4.90% as of September 30, 2023. The Operating Partnership may, at any time, voluntarily prepay the M&T term loan facility in whole or in part without premium or penalty, provided certain conditions are met. The Operating Partnership is the borrower under the M&T term loan facility, and its obligations under the M&T term loan facility are guaranteed by the Company and certain of its subsidiaries that are not otherwise prohibited from providing such guaranty. The M&T term loan agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Company's ability to borrow under the M&T term loan facility is subject to ongoing compliance with a number of financial covenants, affirmative covenants, and other restrictions. The term loan agreement includes customary events of default, in certain cases subject to customary cure periods. The occurrence of an event of default, if not cured within the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest, and all other amounts payable under the M&T term loan facility to be immediately due and payable. TD Term Loan Facility On May 19, 2023, the Company, as parent guarantor, and the Operating Partnership, as borrower, entered into a term loan agreement (the "TD term loan agreement") with Toronto Dominion (Texas) LLC, as administrative agent, and TD Bank, N.A. as lender, which provides a $75.0 million senior unsecured term loan facility (the "TD term loan facility"), with the option to increase the total capacity to $150.0 million, subject to the Company's satisfaction of certain conditions. The proceeds from the TD term loan facility were used in connection with the acquisition of The Interlock, which is detailed in Note 5. The TD term loan facility has a scheduled maturity date of May 19, 2025, with a one-year extension option, subject to the Company's satisfaction of certain conditions, including payment of a 0.15% extension fee. The TD term loan facility bears interest at a rate elected by the Operating Partnership based on term SOFR, Daily Simple SOFR, or the Base Rate (as defined below), and in each case plus a margin. A term SOFR or Daily Simple SOFR loan is also subject to a credit spread adjustment of 0.10%. The margin under each interest rate election depends on the Company's total leverage. The "Base Rate" is equal to the highest of: (a) the Federal Funds Rate for such day, plus 0.50% (b) the rate of interest in effect for such day as publicly announced from time to time by the administrative agent as its “prime rate” for such day, (c) one month term SOFR for such day plus 100 basis points and (d) 1.00%. The Operating Partnership has elected for the loan to bear interest at term SOFR plus margin. If the Company or the Operating Partnership attains investment grade credit ratings from both S&P Global Ratings and Moody's Investor Service, Inc., the Operating Partnership may elect to have borrowings become subject to interest rates based on such credit ratings. On June 29, 2023, the TD term loan facility commitment increased to $95.0 million as a result of the addition of a second lender to the facility. As of September 30, 2023, the outstanding balance on the TD term loan facility was $95.0 million. As of September 30, 2023, the effective interest rate on the TD term loan facility, before giving effect to interest rate swaps, was 6.82%. After giving effect to interest rate swaps, the effective interest rate on the TD term loan facility was 4.70% as of September 30, 2023. The Operating Partnership may, at any time, voluntarily prepay the TD term loan facility in whole or in part without premium or penalty, provided certain conditions are met. The Operating Partnership is the borrower under the TD term loan facility, and its obligations under the TD term loan facility are guaranteed by the Company and certain of its subsidiaries that are not otherwise prohibited from providing such guaranty. The TD term loan agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Company's ability to borrow under the TD term loan facility is subject to ongoing compliance with a number of financial covenants, affirmative covenants, and other restrictions. The TD term loan agreement includes customary events of default, in certain cases subject to customary cure periods. The occurrence of an event of default, if not cured within the applicable cure period, would permit the lenders to, among other things, declare the unpaid principal, accrued and unpaid interest, and all other amounts payable under the TD term loan facility to be immediately due and payable. The Company is currently in compliance with all covenants under the Credit Agreement, the M&T term loan agreement, and TD term loan agreement, all of which are substantially similar. Other 2023 Financing Activity Effective April 3, 2023, the Company transitioned the $69.0 million loan secured by Thames Street Wharf to SOFR, previously indexed to the Bloomberg Short-Term Yield Index (BSBY). The modified loan bears interest at a rate of SOFR plus a spread of 1.30% and a credit spread adjustment of 0.10%. Effective April 3, 2023, the Company transitioned the $175.0 million loan secured by the Constellation Energy Building to SOFR, previously indexed to BSBY. The modified loan bears interest at a rate of SOFR plus a spread of 1.50% and a credit spread adjustment of 0.11%. During the nine months ended September 30, 2023, the Company borrowed $27.7 million under its existing construction loans to fund new development and construction.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Construction Contracts (Tables)

9 Months Ended

Sep. 30, 2023

Contractors [Abstract]

Summary of Balances and Changes of Construction Contracts

The following table summarizes the changes to the balances in the Company’s construction contract costs and estimated earnings in excess of billings account and the billings in excess of construction contract costs and estimated earnings account for the nine months ended September 30, 2023 and 2022 (in thousands):


	Nine Months Ended September 30, 2023				Nine Months Ended September 30, 2022
	Construction contract costs and estimated earnings in excess of billings		Billings in excess of construction contract costs and estimated earnings		Construction contract costs and estimated earnings in excess of billings		Billings in excess of construction contract costs and estimated earnings
Beginning balance	$	342	$	17,515	$	243	$	4,881
Revenue recognized that was included in the balance at the beginning of the period	—		(17,515)		—		(4,881)
Increases due to new billings, excluding amounts recognized as revenue during the period	—		24,570		—		16,312
Transferred to receivables	(342)		—		(478)		—
Construction contract costs and estimated earnings not billed during the period	440		—		232		—
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	—		(1,443)		235		(576)
Ending balance	$	440	$	23,127	$	232	$	15,736

The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of September 30, 2023 and 2022 were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Beginning backlog	$	592,787	$	541,214	$	665,564	$	215,518
New contracts/change orders	20,646		53,966		135,414		449,712
Work performed	(99,855)		(69,251)		(287,400)		(139,301)
Ending backlog	$	513,578	$	525,929	$	513,578	$	525,929

Schedule of Net Position of Uncompleted Construction Contracts

The Company’s net position on uncompleted construction contracts comprised the following as of September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023		December 31, 2022
Costs incurred on uncompleted construction contracts	$	595,195	$	571,465
Estimated earnings	21,997		22,162
Billings	(639,879)		(610,800)
Net position	$	(22,687)	$	(17,173)

Construction contract costs and estimated earnings in excess of billings	$	440	$	342
Billings in excess of construction contract costs and estimated earnings	(23,127)		(17,515)
Net position	$	(22,687)	$	(17,173)

The above table reflects the net effect of projects closed as of September 30, 2023 and December 31, 2022, respectively.

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Carrying Amounts and Fair Values of Financial Instruments Measured Based on Level 2 Inputs

The carrying amounts and fair values of the Company’s financial instruments as of September 30, 2023 and December 31, 2022 were as follows (in thousands):


	September 30, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Indebtedness, net(a)	$	1,333,114	$	1,307,552	$	1,079,233	$	1,058,530
Notes receivable, net	83,713		83,713		136,039		136,039

Interest rate swap and cap assets	39,922		39,922		29,115		29,115

________________________________________

(a) Excludes $11.3 million and $11.0 million of deferred financing costs as of September 30, 2023 and December 31, 2022, respectively.

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2023	Nov. 03, 2023
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-35908
Entity Registrant Name	ARMADA HOFFLER PROPERTIES, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	46-1214914
Entity Address, Address Line One	222 Central Park Avenue
Entity Address, Address Line Two	Suite 2100
Entity Address, City or Town	Virginia Beach
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	23462
City Area Code	757
Local Phone Number	366-4000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		67,401,128
Entity Central Index Key	0001569187
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Common stock
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	AHH
Security Exchange Name	NYSE
Redeemable convertible preferred stock
Entity Listings [Line Items]
Title of 12(b) Security	6.75% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share
Trading Symbol	AHHPrA
Security Exchange Name	NYSE

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has evaluated subsequent events through the date on which this Quarterly Report on Form 10-Q was filed, the date on which these financial statements were issued, and identified the items below for discussion. Indebtedness From October 1, 2023 through November 3, 2023, the Company had net borrowings of $49.0 million on the revolving credit facility. Derivative Financial Instruments On October 11, 2023, the Company entered into an interest rate swap agreement with a notional amount of $100.0 million and a SOFR rate of 2.75%. The interest rate swap is effective November 1, 2023 and will expire on November 1, 2025. The Company paid a $3.9 million premium for this transaction. Equity From October 2, 2023 through October 9, 2023, the Company repurchased 533,699 shares of common stock under the Share Repurchase Program for $5.5 million. As of November 3, 2023, the Company had approximately $43.8 million remaining available for repurchases under the program. On October 2, 2023, in connection with the tender by a holder of Class A Units of 50,000 Class A Units for redemption by the Operating Partnership, the Company elected to satisfy the redemption requests through the issuance of an equal number of shares of common stock.

Segments - Net Income of Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information
Rental revenues	$ 62,913	$ 53,743	$ 179,082	$ 163,602
Rental expenses	14,756	12,747	41,392	38,101
Real estate taxes	5,867	5,454	16,910	16,695
General contracting and real estate services revenues	99,408	69,024	286,220	138,947
Segment gross profit	48,371	40,846	138,287	121,850
Retail real estate
Segment Reporting Information
Rental revenues	25,858	21,223	73,004	64,197
Rental expenses	4,125	3,420	11,715	10,254
Real estate taxes	2,312	2,206	6,789	6,715
Interest expense	2,900	3,600	8,100	10,100
Segment gross profit	19,421	15,597	54,500	47,228
Office real estate
Segment Reporting Information
Rental revenues	22,077	18,687	62,156	54,024
Rental expenses	5,925	4,886	16,282	13,626
Real estate taxes	2,262	2,044	6,524	5,583
Interest expense	2,800	3,100	7,500	7,900
Segment gross profit	13,890	11,757	39,350	34,815
Multifamily real estate
Segment Reporting Information
Rental revenues	14,978	13,833	43,922	45,381
Rental expenses	4,706	4,441	13,395	14,221
Real estate taxes	1,293	1,204	3,597	4,397
Interest expense	2,400	2,200	6,900	6,100
Segment gross profit	8,979	8,188	26,930	26,763
General contracting and real estate services
Segment Reporting Information
General contracting and real estate services revenues	99,408	69,024	286,220	138,947
General contracting and real estate services expenses	96,095	66,252	276,336	133,491
Segment gross profit	3,313	2,772	9,884	5,456
Real estate financing
Segment Reporting Information
Interest income	3,496	3,372	10,257	10,070
Interest expense	728	840	2,634	2,482
Segment gross profit	$ 2,768	$ 2,532	$ 7,623	$ 7,588

Subsequent Events (Details) - USD ($) $ in Thousands			1 Months Ended
Subsequent Events (Details) - USD ($) $ in Thousands	Oct. 09, 2023	Oct. 02, 2023	Nov. 03, 2023	Oct. 11, 2023	Sep. 30, 2023	Dec. 31, 2022
Subsequent Event [Line Items]
Notional amount					$ 1,475,317	$ 1,288,349
Stock repurchase program remaining amount					49,400
Interest rate swap agreement
Subsequent Event [Line Items]
Notional amount					$ 1,298,753
Subsequent events
Subsequent Event [Line Items]
Stock redeemed (in shares)		50,000
Subsequent events \| Common stock
Subsequent Event [Line Items]
Stock repurchased during period, shares (in shares)	533,699
Stock repurchased during the period, value	$ 5,500
Stock repurchase program remaining amount			$ 43,800
Subsequent events \| Interest rate swap agreement
Subsequent Event [Line Items]
Notional amount				$ 100,000
Premium paid				$ 3,900
Subsequent events \| Interest rate swap agreement \| SOFR
Subsequent Event [Line Items]
Interest rate				2.75%
Revolving credit facility \| Subsequent events
Subsequent Event [Line Items]
Proceeds from lines of credit			$ 49,000

Derivative Financial Instruments

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

The Company enters into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and other liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of derivatives and other in the condensed consolidated statements of comprehensive income. For derivatives that qualify as cash flow hedges, the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings.

As of September 30, 2023, the Company had the following SOFR interest rate caps ($ in thousands):


Effective Date	Maturity Date	Notional Amount			Strike Rate			Premium Paid
11/1/2020	11/1/2023	$	84,375	(a)	1.84	%		$	91
7/5/2022	1/1/2024	35,100		(a)	1.00%-3.00%		(b)	120		(c)
9/1/2022	9/1/2024	57,089		(a)(d)	1.00%-3.00%		(b)	1,370
Total		$	176,564					$	1,581

________________________________________

(a) Designated as a cash flow hedge.

(b) The Company purchased interest rate caps at 1.00% and sold interest rate caps at 3.00%, resulting in interest rate cap corridors of 1.00% and 3.00%. The intended goal of these corridors is to provide a level of protection from the effect of rising interest rates and reduce the all-in cost of the derivative instrument.

(c) This amount represents the sum of the premiums paid on the original instruments. The caps were blended and extended for a net zero premium during the year ended December 31, 2022.

(d) Represents the notional amount as of September 30, 2023. The notional amount is scheduled to increase over the term of the corridor in accordance with projected borrowings on the associated loan. The maximum notional amount that will eventually be in effect is $73.6 million.

As of September 30, 2023, the Company held the following floating-to-fixed interest rate swaps ($ in thousands):


Related Debt	Notional Amount			Index		Swap Fixed Rate		Debt effective rate		Effective Date	Expiration Date
Senior unsecured term loan	$	10,500	(a)	1-month SOFR	(b)	2.94	%	4.34	%	10/12/2018	10/12/2023
Floating rate pool of loans	50,000		(a)(c)	1-month SOFR		3.40	%	4.91	%	7/5/2023	1/1/2024
Constellation Energy Building	175,000		(a)(d)	1-month SOFR		1.84	%	3.46	%	4/1/2023	2/1/2024
Floating rate pool of loans	200,000		(a)(e)	1-month SOFR		3.39	%	4.90	%	7/1/2023	3/1/2024
Senior unsecured term loan	25,000		(a)	1-month SOFR	(b)	0.42	%	1.82	%	4/1/2020	4/1/2024
Senior unsecured term loan	25,000		(a)	1-month SOFR	(b)	0.33	%	1.73	%	4/1/2020	4/1/2024
Senior unsecured term loan	25,000		(a)	Daily SOFR	(b)	0.44	%	1.84	%	4/1/2020	4/1/2024
Harbor Point Parcel 3 senior construction loan	90,000		(f)	1-month SOFR		2.75	%	4.82	%	10/2/2023	10/1/2025
Floating rate pool of loans	330,000		(g)	1-month SOFR		2.75	%	4.26	%	10/1/2023	10/1/2025
Revolving credit facility and TD unsecured term loan	100,000			Daily SOFR		3.20	%	4.70	%	5/19/2023	5/19/2026	(h)
Thames Street Wharf	68,253		(a)	Daily SOFR	(b)	0.93	%	2.33	%	9/30/2021	9/30/2026
M&T unsecured term loan	100,000		(a)	1-month SOFR		3.50	%	4.90	%	12/6/2022	12/6/2027
Senior unsecured term loan	100,000			1-month SOFR		3.43	%	4.83	%	12/13/2022	1/21/2028
Total	$	1,298,753

________________________________________

(a) Designated as a cash flow hedge.

(b) Transitioned to SOFR during the nine months ended September 30, 2023.

(c) On July 6, 2023, the Company terminated a SOFR corridor of 1.00%-3.00% with a notional amount of $50.0 million, and entered into this interest rate swap agreement. The Company paid a net zero premium for this transaction.

(d) Effective April 4, 2023, the Company terminated its 4.00% BSBY interest rate cap with a notional amount of $175.0 million and its BSBY corridor of 1.00%-3.00% with a notional amount of $175.0 million and, effective April 3, 2023, entered into this interest rate swap agreement. The Company paid a net zero premium for this transaction.

(e) On July 5, 2023, the Company terminated a SOFR corridor of 1.00%-3.00% with a notional amount of $200.0 million, and entered into this interest rate swap agreement. The Company paid a net zero premium for this transaction.

(f) This interest rate swap agreement reduces the Company's interest rate exposure on the $180.4 million senior construction loan secured by the Company's Harbor Point Parcel 3 equity method investment as described in Note 5. As such, the loan is not reflected on the Company's consolidated balance sheets. The Company also paid $3.6 million to reduce the swap fixed rate. This interest rate swap agreement was executed in September 2023, but was not effective until October 2, 2023.

(g) The Company paid $13.3 million to reduce the swap fixed rate. This interest rate swap agreement was executed in September 2023, but was not effective until October 1, 2023.

(h) Subject to cancellation by the counterparty beginning on May 1, 2025 and the first day of each month thereafter.

For the interest rate swaps and caps designated as cash flow hedges, realized gains and losses are reclassified out of accumulated other comprehensive income to interest expense in the condensed consolidated statements of comprehensive income due to payments received from and paid to the counterparty. During the next 12 months, the Company anticipates recognizing approximately $11.6 million of net hedging gains as reductions to interest expense. These amounts will be reclassified from accumulated other comprehensive income into earnings to offset the variability of the hedged items during this period.

The Company’s derivatives were comprised of the following as of September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023						December 31, 2022
	Notional Amount		Fair Value				Notional Amount		Fair Value
			Asset		Liability				Asset		Liability
Derivatives not designated as accounting hedges
Interest rate swaps	$	620,000	$	22,465	$	—	$	250,000	$	2,201	$	—
Interest rate caps	—		—		—		289,479		2,102		—
Total derivatives not designated as accounting hedges	620,000		22,465		—		539,479		4,303		—
Derivatives designated as accounting hedges
Interest rate swaps	678,753		15,777		—		187,670		11,247		—
Interest rate caps	176,564		1,680		—		561,200		13,565		—
Total derivatives	$	1,475,317	$	39,922	$	—	$	1,288,349	$	29,115	$	—

The changes in the fair value of the Company’s derivatives during the three and nine months ended September 30, 2023 and 2022 were comprised of the following (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Interest rate swaps	$	4,952	$	4,330	$	12,188	$	13,894
Interest rate caps	20		3,587		(346)		12,586
Total change in fair value of interest rate derivatives	$	4,972	$	7,917	$	11,842	$	26,480
Comprehensive income statement presentation:
Change in fair value of derivatives and other	$	1,484	$	809	$	1,974	$	7,700
Unrealized cash flow hedge gains	3,488		7,108		9,868		18,780
Total change in fair value of interest rate derivatives	$	4,972	$	7,917	$	11,842	$	26,480

Equity - Dividends and Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands					3 Months Ended
	Sep. 15, 2023	May 08, 2023	Feb. 28, 2023	Nov. 04, 2022	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Class of Stock [Line Items]
Common stock dividend declared (in dollars per share)					$ 0.195	$ 0.195	$ 0.19	$ 0.19	$ 0.17	$ 0.17
Aggregate common stock dividends					$ 17,476	$ 17,470	$ 16,824	$ 16,806	$ 15,034	$ 14,939
Aggregate preferred stock dividends					$ 2,887	$ 2,887	$ 2,887	$ 2,887	$ 2,887	$ 2,887
Common Stock/Class A Units
Class of Stock [Line Items]
Common stock dividend declared (in dollars per share)	$ 0.195	$ 0.195	$ 0.190	$ 0.190
Aggregate common stock dividends	$ 17,476	$ 17,471	$ 16,825	$ 16,785
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock dividends declared (in dollars per share)	$ 0.421875	$ 0.421875	$ 0.421875	$ 0.421875
Aggregate preferred stock dividends	$ 2,887	$ 2,887	$ 2,887	$ 2,887

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company’s Amended and Restated 2013 Equity Incentive Plan, as amended June 14, 2023 (the "Equity Plan"), permits the grant of restricted stock awards, stock options, stock appreciation rights, performance units, LTIP Units and other equity-based awards up to an aggregate of 3,400,000 shares of common stock. As of September 30, 2023, there were 1,567,039 shares available for issuance under the Equity Plan. During the nine months ended September 30, 2023, the Company granted an aggregate of 432,605 shares of restricted stock and LTIP Units to employees and non-employee directors with a weighted average grant date fair value of $12.47 per share or LTIP Unit. Of those shares, 87,986 were surrendered by the employees for income tax withholdings and 2,800 were forfeited in accordance with service conditions of grants (excluding items noted below). Employee restricted stock awards generally vest over a period of two years: one-third immediately on the grant date and the remaining two-thirds in equal amounts on the first two anniversaries following the grant date, subject to continued service to the Company. Executive officers' restricted shares generally vest over a period of three years: two-fifths immediately on the grant date and the remaining three-fifths in equal amounts on the first three anniversaries following the grant date, subject to continued service to the Company. Non-employee director restricted stock awards or LTIP Units may vest either immediately upon grant or over a period of one year, subject to continued service to the Company. Unvested restricted stock awards and LTIP Units are entitled to receive distributions from their grant date. During the three months ended September 30, 2023 and 2022, the Company recognized $0.9 million and $0.7 million, respectively, of stock-based compensation cost. During the nine months ended September 30, 2023 and 2022, the Company recognized $3.3 million and $3.1 million, respectively, of stock-based compensation cost. As of September 30, 2023, there were 312,233 non-vested restricted shares and LTIP Units outstanding; the total unrecognized compensation expense related to non-vested restricted shares and LTIP Units was $2.4 million, which the Company expects to recognize over the next 30 months. As a result of the Company inadvertently issuing more shares of common stock than were available for issuance under the Equity Plan, on May 9, 2023, the Company's Chief Executive Officer and the Company's Chief Financial Officer forfeited 75,321 and 8,975 restricted shares of common stock, respectively. Following approval by the Company’s board of directors and stockholders of an amendment to the Equity Plan to increase the number of shares available for issuance thereunder, on June 20, 2023, 75,321 and 8,975 restricted shares of common stock were granted to the Company's Chief Executive Officer and the Company's Chief Financial Officer, respectively, one-third of which will vest on March 3, 2024, one-third of which will vest on March 3, 2025, and one-third of which will vest on March 3, 2026, subject to the executives' continued employment on such dates.

Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of LIBOR Interest Rate Caps and Floating to Fixed Interest Rate Swaps

As of September 30, 2023, the Company had the following SOFR interest rate caps ($ in thousands):


Effective Date	Maturity Date	Notional Amount			Strike Rate			Premium Paid
11/1/2020	11/1/2023	$	84,375	(a)	1.84	%		$	91
7/5/2022	1/1/2024	35,100		(a)	1.00%-3.00%		(b)	120		(c)
9/1/2022	9/1/2024	57,089		(a)(d)	1.00%-3.00%		(b)	1,370
Total		$	176,564					$	1,581

________________________________________

(a) Designated as a cash flow hedge.

(c) This amount represents the sum of the premiums paid on the original instruments. The caps were blended and extended for a net zero premium during the year ended December 31, 2022.

As of September 30, 2023, the Company held the following floating-to-fixed interest rate swaps ($ in thousands):


Related Debt	Notional Amount			Index		Swap Fixed Rate		Debt effective rate		Effective Date	Expiration Date
Senior unsecured term loan	$	10,500	(a)	1-month SOFR	(b)	2.94	%	4.34	%	10/12/2018	10/12/2023
Floating rate pool of loans	50,000		(a)(c)	1-month SOFR		3.40	%	4.91	%	7/5/2023	1/1/2024
Constellation Energy Building	175,000		(a)(d)	1-month SOFR		1.84	%	3.46	%	4/1/2023	2/1/2024
Floating rate pool of loans	200,000		(a)(e)	1-month SOFR		3.39	%	4.90	%	7/1/2023	3/1/2024
Senior unsecured term loan	25,000		(a)	1-month SOFR	(b)	0.42	%	1.82	%	4/1/2020	4/1/2024
Senior unsecured term loan	25,000		(a)	1-month SOFR	(b)	0.33	%	1.73	%	4/1/2020	4/1/2024
Senior unsecured term loan	25,000		(a)	Daily SOFR	(b)	0.44	%	1.84	%	4/1/2020	4/1/2024
Harbor Point Parcel 3 senior construction loan	90,000		(f)	1-month SOFR		2.75	%	4.82	%	10/2/2023	10/1/2025
Floating rate pool of loans	330,000		(g)	1-month SOFR		2.75	%	4.26	%	10/1/2023	10/1/2025
Revolving credit facility and TD unsecured term loan	100,000			Daily SOFR		3.20	%	4.70	%	5/19/2023	5/19/2026	(h)
Thames Street Wharf	68,253		(a)	Daily SOFR	(b)	0.93	%	2.33	%	9/30/2021	9/30/2026
M&T unsecured term loan	100,000		(a)	1-month SOFR		3.50	%	4.90	%	12/6/2022	12/6/2027
Senior unsecured term loan	100,000			1-month SOFR		3.43	%	4.83	%	12/13/2022	1/21/2028
Total	$	1,298,753

________________________________________

(a) Designated as a cash flow hedge.

(b) Transitioned to SOFR during the nine months ended September 30, 2023.

(g) The Company paid $13.3 million to reduce the swap fixed rate. This interest rate swap agreement was executed in September 2023, but was not effective until October 1, 2023.

(h) Subject to cancellation by the counterparty beginning on May 1, 2025 and the first day of each month thereafter.

Schedule of Derivatives

The Company’s derivatives were comprised of the following as of September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023						December 31, 2022
	Notional Amount		Fair Value				Notional Amount		Fair Value
			Asset		Liability				Asset		Liability
Derivatives not designated as accounting hedges
Interest rate swaps	$	620,000	$	22,465	$	—	$	250,000	$	2,201	$	—
Interest rate caps	—		—		—		289,479		2,102		—
Total derivatives not designated as accounting hedges	620,000		22,465		—		539,479		4,303		—
Derivatives designated as accounting hedges
Interest rate swaps	678,753		15,777		—		187,670		11,247		—
Interest rate caps	176,564		1,680		—		561,200		13,565		—
Total derivatives	$	1,475,317	$	39,922	$	—	$	1,288,349	$	29,115	$	—

Schedule of Changes in Fair Value of Derivatives

The changes in the fair value of the Company’s derivatives during the three and nine months ended September 30, 2023 and 2022 were comprised of the following (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Interest rate swaps	$	4,952	$	4,330	$	12,188	$	13,894
Interest rate caps	20		3,587		(346)		12,586
Total change in fair value of interest rate derivatives	$	4,972	$	7,917	$	11,842	$	26,480
Comprehensive income statement presentation:
Change in fair value of derivatives and other	$	1,484	$	809	$	1,974	$	7,700
Unrealized cash flow hedge gains	3,488		7,108		9,868		18,780
Total change in fair value of interest rate derivatives	$	4,972	$	7,917	$	11,842	$	26,480

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The condensed consolidated financial statements include the financial position and results of operations of the Company and its subsidiaries. The Company’s subsidiaries include the Operating Partnership and the subsidiaries that are wholly owned or in which the Company has a controlling interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity ("VIE") in accordance with the consolidation guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition, and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best judgment after considering past, current, and expected events and economic conditions. Actual results could differ significantly from management’s estimates.
Reclassifications	Reclassifications Certain items have been reclassified from their prior year classifications to conform to the current year presentation. Effective for the nine months ended September 30, 2023, the Company has changed the presentation of its condensed consolidated statements of comprehensive income. For the three and nine months ended September 30, 2022, the Company reclassified interest income of $3.5 million and $10.4 million, respectively, from non-operating income to operating income. As a result, total revenues and operating income increased by $3.5 million and $10.4 million, respectively, compared to previous reporting. These reclassifications had no effect on net income or stockholder's equity as previously reported.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Reference Rate Reform In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04 Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848), which became effective on March 12, 2020. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives, and other contracts. This ASU also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by reference rate reform. Application of the guidance is optional and only available in certain situations. In January 2021, FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848). The amendments in this standard are elective and principally apply to entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. Similar to ASU No. 2020-04, provisions of this ASU are effective upon issuance. In December 2022, FASB issued ASU 2022-06 Deferral of the Sunset Date of Topic 848 which became effective immediately upon issuance. ASU 2022-06 deferred the sunset date of Topic 848 to December 31, 2024. During the nine months ended September 30, 2023, the Company elected to apply the practical expedients to modifications of qualifying contracts as continuations of the existing contracts rather than as new contracts. The adoption of the new guidance did not have a material impact on the consolidated financial statements.
Derivative Financial Instruments	Derivative Financial Instruments The Company may enter into interest rate derivatives to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. The Company recognizes derivative financial instruments at fair value and presents them within other assets and liabilities in the condensed consolidated balance sheets. Gains and losses from derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of derivatives and other caption in the condensed consolidated statements of comprehensive income. For derivatives that qualify as cash flow hedges, the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. For interest rate caps that qualify as cash flow hedges, the premium paid by the Company at inception represents the time value of the instrument and is excluded from the hedge effectiveness assessment. The excluded component is amortized over the life of the derivative instrument and presented within interest expense in the condensed consolidated statements of comprehensive income. Cash flows for derivative financial instruments are classified as cash flows from operating activities within the condensed consolidated statements of cash flows, unless there is an other-than-insignificant financing element present at inception of the derivative. For derivatives with an other-than-insignificant financing element at inception due to off-market terms, cash flows are classified as cash flows from investing or financing activities within the condensed consolidated statements of cash flows depending on the derivative's off-market nature at inception.
Segments	Segments The Company operates its business in five reportable segments: (i) retail real estate, (ii) office real estate, (iii) multifamily real estate, (iv) general contracting and real estate services, and (v) real estate financing. Refer to Note 1 of the Company's Form 10-K for the composition of properties within each property segment. Since the Company's Annual Report on Form 10-K for the year ended December 31, 2022, the Company introduced real estate financing as a reportable segment. The real estate financing segment includes the Company's mezzanine loans and preferred equity investments on development projects. The change in segmental presentation is a result of the chief operating decision-maker now separately reviewing the results of the real estate financing investments, which are no longer considered to be ad hoc investments, but an evolving portfolio. Net operating income ("NOI") is the primary measure used by the Company’s chief operating decision-maker to assess segment performance. NOI is calculated as segment revenues less segment expenses. Segment revenues include rental revenues for the property segments, general contracting and real estate services revenues for the general contracting and real estate services segment, and interest income for the real estate financing segment. Segment expenses include rental expenses and real estate taxes for the property segments, general contracting and real estate services expenses for the general contracting and real estate services segment, and interest expense for the real estate financing segment. Segment NOI for the general contracting and real estate services and real estate financing segments is also referred to as segment gross profit as illustrated in the table below. NOI is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, NOI should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate, construction, and real estate financing businesses.
Allowance for Loan Losses	Allowance for Loan Losses The Company is exposed to credit losses primarily through its real estate financing investments. As of September 30, 2023, the Company had five real estate financing investments, which are financing development projects in various stages of completion or lease-up. Each of these projects is subject to a loan that is senior to the Company’s loan. Interest on these loans is paid in kind and is generally not expected to be paid until a sale of the project after completion of the development. The Company's management performs a quarterly analysis of the loan portfolio to determine the risk of credit loss based on the progress of development activities, including leasing activities, projected development costs, and current and projected subordinated and senior loan balances. The Company estimates future losses on its notes receivable using risk ratings that correspond to probabilities of default and loss given default. The Company's risk ratings are as follows: •Pass: loans in this category are adequately collateralized by a development project with conditions materially consistent with the Company's underwriting assumptions. •Special Mention: loans in this category show signs that the economic performance of the project may suffer as a result of slower-than-expected leasing activity or an extended development or marketing timeline. Loans in this category warrant increased monitoring by management. •Substandard: loans in this category may not be fully collected by the Company unless remediation actions are taken. Remediation actions may include obtaining additional collateral or assisting the borrower with asset management activities to prepare the project for sale. The Company will also consider placing the loan on non-accrual status if it does not believe that additional interest accruals will ultimately be collected.
Construction Contracts	Construction Contracts Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of September 30, 2023 during the next 12 to 24 months. Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized. The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 — unobservable inputs Except as disclosed below, the carrying amounts of the Company’s financial instruments approximate their fair values. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps and caps. The Company measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. Financial assets and liabilities whose fair values are not measured at fair value but for which the fair value is disclosed include the Company's notes receivable and indebtedness. The fair value is estimated by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity, credit characteristics, and other terms of the arrangements, which are Level 3 inputs under the fair value hierarchy. In certain cases, the inputs used to estimate the fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments.
Legal Proceedings	Legal Proceedings The Company is from time to time involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. The Company currently is a party to various legal proceedings, none of which management expects will have a material adverse effect on the Company’s financial position, results of operations, or liquidity. Management accrues a liability for litigation if an unfavorable outcome is determined to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined to be probable and a range of loss can be reasonably estimated, management accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Management does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on the Company’s financial position or results of operations; however, litigation is subject to inherent uncertainties. Under the Company’s leases, tenants are typically obligated to indemnify the Company from and against all liabilities, costs, and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant.

Construction Contracts

9 Months Ended

Sep. 30, 2023

Contractors [Abstract]

Construction Contracts

Construction contract costs and estimated earnings in excess of billings represent reimbursable costs and amounts earned under contracts in progress as of the balance sheet date. Such amounts become billable according to contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. The Company expects to bill and collect substantially all construction contract costs and estimated earnings in excess of billings as of September 30, 2023 during the next 12 to 24 months.

Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized.


	Nine Months Ended September 30, 2023				Nine Months Ended September 30, 2022
	Construction contract costs and estimated earnings in excess of billings		Billings in excess of construction contract costs and estimated earnings		Construction contract costs and estimated earnings in excess of billings		Billings in excess of construction contract costs and estimated earnings
Beginning balance	$	342	$	17,515	$	243	$	4,881
Revenue recognized that was included in the balance at the beginning of the period	—		(17,515)		—		(4,881)
Increases due to new billings, excluding amounts recognized as revenue during the period	—		24,570		—		16,312
Transferred to receivables	(342)		—		(478)		—
Construction contract costs and estimated earnings not billed during the period	440		—		232		—
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	—		(1,443)		235		(576)
Ending balance	$	440	$	23,127	$	232	$	15,736

The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable. Pre-contract costs of $1.9 million and $1.3 million were deferred as of September 30, 2023 and December 31, 2022, respectively. Amortization of pre-contract costs for the nine months ended September 30, 2023 and 2022 was $0.3 million and $0.8 million, respectively.

Construction receivables and payables include retentions, which are amounts that are generally withheld until the completion of the contract or the satisfaction of certain restrictive conditions such as fulfillment guarantees. As of September 30, 2023 and December 31, 2022, construction receivables included retentions of $25.4 million and $8.3 million, respectively. The Company expects to collect substantially all construction receivables outstanding as of September 30, 2023 during the next 12 to 24 months. As of September 30, 2023 and December 31, 2022, construction payables included retentions of $33.5 million and $24.7 million, respectively. The Company expects to pay substantially all construction payables outstanding as of September 30, 2023 during the next 12 to 24 months.

The Company’s net position on uncompleted construction contracts comprised the following as of September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023		December 31, 2022
Costs incurred on uncompleted construction contracts	$	595,195	$	571,465
Estimated earnings	21,997		22,162
Billings	(639,879)		(610,800)
Net position	$	(22,687)	$	(17,173)

Construction contract costs and estimated earnings in excess of billings	$	440	$	342
Billings in excess of construction contract costs and estimated earnings	(23,127)		(17,515)
Net position	$	(22,687)	$	(17,173)

The above table reflects the net effect of projects closed as of September 30, 2023 and December 31, 2022, respectively.

The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of September 30, 2023 and 2022 were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Beginning backlog	$	592,787	$	541,214	$	665,564	$	215,518
New contracts/change orders	20,646		53,966		135,414		449,712
Work performed	(99,855)		(69,251)		(287,400)		(139,301)
Ending backlog	$	513,578	$	525,929	$	513,578	$	525,929

The Company expects to complete a majority of the uncompleted contracts in place as of September 30, 2023 during the next 12 to 24 months.

- Definition

The entire disclosure for long-term contracts or programs.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 912
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Thousands

Sep. 30, 2023

Dec. 31, 2022

Sep. 30, 2022

Dec. 31, 2021

Statement of Cash Flows [Abstract]

Cash and cash equivalents

$ 32,662

$ 48,139

$ 54,700

Restricted cash

2,343

^[1]

3,726

4,865

^[1]

Cash, cash equivalents, and restricted cash

$ 35,005

^[2]

$ 51,865

$ 59,565

^[2]

$ 40,443

[1]

Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements.

[2]

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the Condensed Consolidated Statements of Cash Flows (in thousands):


	September 30, 2023		September 30, 2022
Cash and cash equivalents	$	32,662	$	54,700
Restricted cash (a)	2,343		4,865
Cash, cash equivalents, and restricted cash	$	35,005	$	59,565

(a) Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements.

Construction Contracts - Summary of Costs in Excess of Billings and Billings in Excess of Costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Construction contract costs and estimated earnings in excess of billings
Beginning balance	$ 342	$ 243
Transferred to receivables	(342)	(478)
Construction contract costs and estimated earnings not billed during the period	440	232
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	0	235
Ending balance	440	232
Billings in excess of construction contract costs and estimated earnings
Beginning balance	17,515	4,881
Revenue recognized that was included in the balance at the beginning of the period	(17,515)	(4,881)
Increases due to new billings, excluding amounts recognized as revenue during the period	24,570	16,312
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	(1,443)	(576)
Ending balance	$ 23,127	$ 15,736

Real Estate Investment - Purchase Price Allocation (Details) - USD ($) $ in Thousands		9 Months Ended
	May 19, 2023	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Asset Acquisition [Line Items]
Finance lease right-of-use assets		$ 47,742	$ 0
Finance lease right-of-use assets		92,570		$ 45,878
The Interlock
Asset Acquisition [Line Items]
Below-market leases	$ (3,931)
Finance lease right-of-use assets	46,616
Finance lease liabilities	(46,616)
Net assets acquired	215,272
Prepaid rent liability assumed	1,100
Finance lease right-of-use assets		$ 47,700
The Interlock \| Office real estate
Asset Acquisition [Line Items]
Net assets acquired	134,600
The Interlock \| Retail real estate
Asset Acquisition [Line Items]
Net assets acquired	80,600
The Interlock \| In-place leases
Asset Acquisition [Line Items]
Finite-lived intangible assets	35,234
The Interlock \| Above-market leases
Asset Acquisition [Line Items]
Finite-lived intangible assets	62
The Interlock \| Building
Asset Acquisition [Line Items]
Building	$ 183,907

Leases - Additional Information (Details)	9 Months Ended
Leases - Additional Information (Details)	Sep. 30, 2023 property lease renewal_option
Lessee, Lease, Description [Line Items]
Number of ground leases	9
Number of properties subject to ground leases \| property	9
Number of operating leases	5
Number of finance leases	4
Number of options to extend, more than \| renewal_option	1
Minimum
Lessee, Lease, Description [Line Items]
Renewal term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Renewal term	25 years

Notes Receivable and Current Expected Credit Losses - Additional Information (Details)				9 Months Ended
	Jul. 26, 2023 USD ($)	May 25, 2023 USD ($)	May 19, 2023 USD ($)	Sep. 30, 2023 USD ($) investment	Mar. 29, 2023	Jan. 14, 2023	Jan. 01, 2023	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses				$ 2,501,000				$ 1,630,000	$ 1,862,000	$ 1,004,000
Allowance related to unfunded commitments				857,000				338,000	354,000	10,000
Notes receivable, net				83,713,000				136,039,000
Allowance for credit losses				1,644,000				1,292,000	$ 1,508,000	$ 994,000
Notes receivable, nonaccrual status				0
Other liabilities
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance related to unfunded commitments				900,000				$ 300,000
Constellation Energy Building note receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage of economic interest acquired						11.00%
Percentage of ownership interest						0.90
The Interlock
Accounts, Notes, Loans and Financing Receivable [Line Items]
Redemption of mezzanine loan			$ 90,200,000
Solis Kennesaw
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized through redemption		$ 600,000
The Allure at Edinburgh
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum principal commitment	$ 9,200,000
Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum principal commitment				$ 222,727,000
Number of financial instruments \| investment				5
Mezzanine loan \| Solis Gainesville II
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate				14.00%
Unused commitment fee percentage							10.00%
Maximum principal commitment				$ 19,595,000
Mezzanine loan \| Solis Gainesville II \| First 24 Months
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate					14.00%
Mezzanine loan \| Solis Gainesville II \| Twenty Four and Thirty Six Months
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate					10.00%
Mezzanine loan \| Solis Gainesville II \| Thirty Six Months Through Maturity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate					14.00%
Mezzanine loan \| Solis Kennesaw
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate				14.00%
Unused commitment fee percentage		11.00%
Maximum principal commitment		$ 37,900,000		$ 37,870,000
Minimum interest		$ 13,100,000
Mezzanine loan \| Solis Kennesaw \| First 24 Months
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate		14.00%
Mezzanine loan \| Solis Kennesaw \| Twenty Four and Thirty Six Months
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate		9.00%
Mezzanine loan \| Solis Kennesaw \| Thirty Six Months Through Maturity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate		14.00%
Mezzanine loan \| Solis Peachtree Corners
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate				15.00%
Unused commitment fee percentage	10.00%
Maximum principal commitment	$ 28,400,000			$ 28,440,000
Amortized through redemption	400,000
Minimum interest	$ 12,000,000
Mezzanine loan \| Solis Peachtree Corners \| First 27 Months
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate	15.00%
Mezzanine loan \| Solis Peachtree Corners \| Twelve Months Beginning November 2025
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate	9.00%
Mezzanine loan \| Solis Peachtree Corners \| November 2026 Through Maturity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate	15.00%
Mezzanine loan \| The Allure at Edinburgh
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate				15.00%
Maximum principal commitment				$ 9,228,000
Mezzanine loan \| The Allure at Edinburgh \| Prior To Certificate Of Occupancy
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate	15.00%
Mezzanine loan \| The Allure at Edinburgh \| After Certificate Of Occupancy
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate	10.00%
Mezzanine loan \| Constellation Energy Building note receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate								3.00%

Notes Receivable and Current Expected Credit Losses - Changes in Allowance for Credit Loss (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Funded
Beginning balance	$ 1,292	$ 994
Unrealized credit loss provision (release)	817	514
Release due to redemption	(465)	0
Ending balance	1,644	1,508
Unfunded
Beginning balance	338	10
Unrealized credit loss provision (release)	519	344
Release due to redemption	0	0
Ending balance	857	354
Total
Beginning balance	1,630	1,004
Unrealized credit loss provision (release)	1,336	858
Release due to redemption	(465)	0
Ending balance	$ 2,501	$ 1,862

Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Sep. 30, 2023

Dec. 31, 2022

Real estate investments:

Income producing property

$ 2,089,170

$ 1,884,214

Held for development

6,294

Construction in progress

91,127

53,067

Gross real estate investments

2,186,591

1,943,575

Accumulated depreciation

(376,449)

(329,963)

Net real estate investments

1,810,142

1,613,612

Cash and cash equivalents

32,662

48,139

Restricted cash

2,343

^[1]

3,726

Accounts receivable, net

43,800

39,186

Notes receivable, net

83,713

136,039

Construction receivables, including retentions, net

87,295

70,822

Construction contract costs and estimated earnings in excess of billings

440

342

Equity method investments

125,672

71,983

Operating lease right-of-use assets

23,152

23,350

Finance lease right-of-use assets

92,570

45,878

Acquired lease intangible assets

127,020

103,870

Other assets

104,275

85,363

Total Assets

2,533,084

2,242,310

LIABILITIES AND EQUITY

Indebtedness, net

1,321,792

1,068,261

Accounts payable and accrued liabilities

31,604

26,839

Construction payables, including retentions

108,107

93,472

Billings in excess of construction contract costs and estimated earnings

23,127

17,515

Operating lease liabilities

31,573

31,677

Finance lease liabilities

93,419

46,477

Other liabilities

56,818

54,055

Total Liabilities

1,666,440

1,338,296

Stockholders’ equity:

Preferred stock, $0.01 par value, 100,000,000 shares authorized: 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock, 9,980,000 shares authorized; 6,843,418 shares issued and outstanding as of September 30, 2023 and December 31, 2022

171,085

Common stock, $0.01 par value, 500,000,000 shares authorized; 67,885,390 and 67,729,854 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively

679

677

Additional paid-in capital

589,291

587,884

Distributions in excess of earnings

(151,534)

(126,875)

Accumulated other comprehensive income

11,433

14,679

Total stockholders’ equity

620,954

647,450

Noncontrolling interests in investment entities

10,441

24,055

Noncontrolling interests in Operating Partnership

235,249

232,509

Total Equity

866,644

904,014

Total Liabilities and Equity

$ 2,533,084

$ 2,242,310

[1]	Restricted cash represents amounts held by lenders for real estate taxes, insurance, and reserves for capital improvements.

Real Estate Investment - Property Acquisitions (Details) $ in Millions	May 19, 2023 USD ($) ft² property	Jan. 14, 2023 USD ($)
Constellation Energy Building note receivable
Asset Acquisition [Line Items]
Percentage of economic interest acquired		11.00%
Percentage of ownership interest		0.90
Loan issued to seller		$ 12.8
The Interlock
Asset Acquisition [Line Items]
Area of real estate property \| ft²	311,000
Number of properties \| property	2
Consideration transferred	$ 214.1
Acquisition related costs	1.2
Payments to acquire assets	6.1
Redemption of mezzanine loan	90.2
Liabilities incurred	105.6
The Interlock \| Class A units
Asset Acquisition [Line Items]
Equity interest transferred	$ 12.2

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company provides general contracting services to certain related party entities that are included in these condensed consolidated financial statements. Revenue and gross profit from construction contracts with these entities for the three and nine months ended September 30, 2023 and 2022 were nominal. There were no outstanding construction receivables due from related parties as of September 30, 2023 and December 31, 2022. The Company provides general contracting services to the Harbor Point Parcel 3 and Harbor Point Parcel 4 ventures. See Note 5 for more information. During the three and nine months ended September 30, 2023, the Company recognized gross profit of $0.3 million and $1.0 million, respectively, relating to these construction contracts. During the three and nine months ended September 30, 2022, the Company recognized gross profit of $0.2 million and $0.4 million, respectively, relating to these construction contracts.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Fair Value of Financial Instruments - Carrying Amounts and Fair Values of Financial Instruments Measured based on Level Two Inputs (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value of Financial Instruments
Deferred financing costs	$ 11,300	$ 11,000
Carrying Value
Fair Value of Financial Instruments
Indebtedness, net	1,333,114	1,079,233
Notes receivable, net	83,713	136,039
Interest rate swap and cap assets	39,922	29,115
Fair Value
Fair Value of Financial Instruments
Indebtedness, net	1,307,552	1,058,530
Notes receivable, net	83,713	136,039
Interest rate swap and cap assets	$ 39,922	$ 29,115

Condensed Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Total stockholders' equity	Preferred stock	Common stock	Additional paid-in capital	Distributions in excess of earnings	Accumulated other comprehensive income	Noncontrolling interests in investment entities	Noncontrolling interests in Operating Partnership
Beginning balance at Dec. 31, 2021	$ 779,823	$ 555,352	$ 171,085	$ 630	$ 525,030	$ (141,360)	$ (33)	$ 629	$ 223,842
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	12,276	9,993				9,993		100	2,183
Unrealized cash flow hedge (losses) gains	7,722	5,907					5,907		1,815
Realized cash flow hedge (gains) losses reclassified to net income	787	602					602		185
Net proceeds from issuance of stock	65,194	65,194		45	65,149
Noncontrolling interest in acquired real estate entity	23,065							23,065
Restricted stock awards, net	1,064	1,064			1,064
Acquisitions of noncontrolling interests	(3,901)	(3,901)			(3,901)
Redemption of operating partnership units	0	132			132				(132)
Dividends declared on preferred stock	(2,887)	(2,887)				(2,887)
Dividends and distributions declared on common shares and units	(14,939)	(11,433)				(11,433)			(3,506)
Ending balance at Mar. 31, 2022	868,204	620,023	171,085	675	587,474	(145,687)	6,476	23,794	224,387
Beginning balance at Dec. 31, 2021	779,823	555,352	171,085	630	525,030	(141,360)	(33)	629	223,842
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	85,412
Unrealized cash flow hedge (losses) gains	18,780
Realized cash flow hedge (gains) losses reclassified to net income	1,287
Ending balance at Sep. 30, 2022	910,914	652,833	171,085	677	588,707	(122,838)	15,202	24,187	233,894
Beginning balance at Mar. 31, 2022	868,204	620,023	171,085	675	587,474	(145,687)	6,476	23,794	224,387
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	30,767	24,160				24,160		128	6,479
Unrealized cash flow hedge (losses) gains	3,950	2,986					2,986	55	909
Realized cash flow hedge (gains) losses reclassified to net income	866	630				1	629	45	191
Net proceeds from issuance of stock	(35)	(35)			(35)
Restricted stock awards, net	575	575		2	573
Contributions from noncontrolling interests	14							14
Distributions to noncontrolling interests	(84)							(84)
Dividends declared on preferred stock	(2,887)	(2,887)				(2,887)
Dividends and distributions declared on common shares and units	(15,034)	(11,529)				(11,529)			(3,505)
Ending balance at Jun. 30, 2022	886,336	633,923	171,085	677	588,012	(135,942)	10,091	23,952	228,461
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	42,369	28,877				28,877		5,583	7,909
Unrealized cash flow hedge (losses) gains	7,108	5,393					5,393	74	1,641
Realized cash flow hedge (gains) losses reclassified to net income	(366)	(282)					(282)	1	(85)
Restricted stock awards, net	713	713			713
Redemption of operating partnership units	(130)	(18)			(18)				(112)
Distributions to noncontrolling interests	(5,423)							(5,423)
Dividends declared on preferred stock	(2,887)	(2,887)				(2,887)
Dividends and distributions declared on common shares and units	(16,806)	(12,886)				(12,886)			(3,920)
Ending balance at Sep. 30, 2022	910,914	652,833	171,085	677	588,707	(122,838)	15,202	24,187	233,894
Beginning balance at Dec. 31, 2022	904,014	647,450	171,085	677	587,884	(126,875)	14,679	24,055	232,509
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,417	4,709				4,709		154	554
Unrealized cash flow hedge (losses) gains	(426)	(328)					(328)	2	(100)
Realized cash flow hedge (gains) losses reclassified to net income	(2,922)	(2,211)					(2,211)	(39)	(672)
Net proceeds from issuance of stock	(149)	(149)			(149)
Restricted stock awards, net	979	979		2	977
Acquisitions of noncontrolling interests	(12,834)							(12,834)
Distributions to noncontrolling interests	(506)							(506)
Dividends declared on preferred stock	(2,887)	(2,887)				(2,887)
Dividends and distributions declared on common shares and units	(16,824)	(12,908)				(12,908)			(3,916)
Ending balance at Mar. 31, 2023	873,862	634,655	171,085	679	588,712	(137,961)	12,140	10,832	228,375
Beginning balance at Dec. 31, 2022	904,014	647,450	171,085	677	587,884	(126,875)	14,679	24,055	232,509
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	28,725
Unrealized cash flow hedge (losses) gains	9,868
Realized cash flow hedge (gains) losses reclassified to net income	(14,292)
Ending balance at Sep. 30, 2023	866,644	620,954	171,085	679	589,291	(151,534)	11,433	10,441	235,249
Beginning balance at Mar. 31, 2023	873,862	634,655	171,085	679	588,712	(137,961)	12,140	10,832	228,375
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	14,885	11,863				11,863		269	2,753
Unrealized cash flow hedge (losses) gains	6,806	5,093					5,093	151	1,562
Realized cash flow hedge (gains) losses reclassified to net income	(5,055)	(3,735)					(3,735)	(174)	(1,146)
Restricted stock awards, net	337	337			337
Issuance of operating partnership units for acquisitions	12,194								12,194
Redemption of operating partnership units	(583)	(19)			(19)				(564)
Distributions to noncontrolling interests	(427)							(427)
Dividends declared on preferred stock	(2,887)	(2,887)				(2,887)
Dividends and distributions declared on common shares and units	(17,470)	(13,248)				(13,248)			(4,222)
Ending balance at Jun. 30, 2023	881,662	632,059	171,085	679	589,030	(142,233)	13,498	10,651	238,952
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,423	6,940				6,940		193	1,290
Unrealized cash flow hedge (losses) gains	3,488	2,580					2,580	86	822
Realized cash flow hedge (gains) losses reclassified to net income	(6,315)	(4,645)					(4,645)	(191)	(1,479)
Net proceeds from issuance of stock	(55)	(55)			(55)
Retirement of common stock	(643)	(643)		(1)	(540)	(102)
Restricted stock awards, net	867	867		1	866
Redemption of operating partnership units	(122)	(10)			(10)				(112)
Distributions to noncontrolling interests	(298)							(298)
Dividends declared on preferred stock	(2,887)	(2,887)				(2,887)
Dividends and distributions declared on common shares and units	(17,476)	(13,252)				(13,252)			(4,224)
Ending balance at Sep. 30, 2023	$ 866,644	$ 620,954	$ 171,085	$ 679	$ 589,291	$ (151,534)	$ 11,433	$ 10,441	$ 235,249

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows:

Level 1 — quoted prices in active markets for identical assets or liabilities

Level 2 — observable inputs other than quoted prices in active markets for identical assets and liabilities

Level 3 — unobservable inputs

Except as disclosed below, the carrying amounts of the Company’s financial instruments approximate their fair values. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps and caps. The Company measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques.

Financial assets and liabilities whose fair values are not measured at fair value but for which the fair value is disclosed include the Company's notes receivable and indebtedness. The fair value is estimated by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity, credit characteristics, and other terms of the arrangements, which are Level 3 inputs under the fair value hierarchy.

In certain cases, the inputs used to estimate the fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments.

The carrying amounts and fair values of the Company’s financial instruments as of September 30, 2023 and December 31, 2022 were as follows (in thousands):


	September 30, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Indebtedness, net(a)	$	1,333,114	$	1,307,552	$	1,079,233	$	1,058,530
Notes receivable, net	83,713		83,713		136,039		136,039

Interest rate swap and cap assets	39,922		39,922		29,115		29,115

________________________________________

(a) Excludes $11.3 million and $11.0 million of deferred financing costs as of September 30, 2023 and December 31, 2022, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended		9 Months Ended
	Jun. 20, 2023	May 09, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation expense			$ 0.9	$ 0.7	$ 3.3	$ 3.1
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock granted (in shares)					432,605
Restricted stock granted, grant date fair value (in dollars per share)					$ 12.47
Restricted stock surrendered, forfeited in period (in shares)					87,986
Employee restricted stock award, vesting period					2 years
Nonvested restricted shares outstanding (in shares)			312,233		312,233
Unrecognized compensation cost			$ 2.4		$ 2.4
Unrecognized compensation cost, recognition period					30 months
Restricted Stock \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Employee restricted stock award, vesting period					3 years
Restricted Stock \| Non-Employee Director
Share-based Compensation Arrangement by Share-based Payment Award
Non-employee restricted stock award vest grant over period					1 year
Restricted Stock \| Grant Date
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage					33.33%
Restricted Stock \| Grant Date \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage					40.00%
Restricted Stock \| Grant Date \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage	33.33%
Restricted Stock \| Grant Date \| Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage	33.33%
Restricted Stock \| First Anniversary
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage					33.33%
Restricted Stock \| First Anniversary \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage					20.00%
Restricted Stock \| First Anniversary \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage	33.33%
Restricted Stock \| First Anniversary \| Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage	33.33%
Restricted Stock \| Second Anniversary
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage					33.33%
Restricted Stock \| Second Anniversary \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage					20.00%
Restricted Stock \| Second Anniversary \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage	33.33%
Restricted Stock \| Second Anniversary \| Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage	33.33%
Restricted Stock \| Third Anniversary \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage					20.00%
Service Conditions
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock surrendered, forfeited in period (in shares)					2,800
Restricted Stock Units (RSUs) \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock granted (in shares)	75,321
Restricted stock surrendered, forfeited in period (in shares)		75,321
Restricted Stock Units (RSUs) \| Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock granted (in shares)	8,975
Restricted stock surrendered, forfeited in period (in shares)		8,975
Amended and Restated 2013 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares reserved for issuance (in shares)			3,400,000		3,400,000
Shares available for issuance (in shares)			1,567,039		1,567,039

Construction Contracts - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Construction receivables retentions	$ 25.4		$ 8.3
Construction
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Retentions	33.5		24.7
Portion Attributable To Pending Contracts
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred pre-contract costs	1.9		$ 1.3
Amortization of pre-contract costs	$ 0.3	$ 0.8
Minimum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected completion of contracts	12 months
Minimum \| Construction \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected completion of contracts	12 months
Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected completion of contracts	24 months
Maximum \| Construction \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected completion of contracts	24 months

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings The Company is from time to time involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. The Company currently is a party to various legal proceedings, none of which management expects will have a material adverse effect on the Company’s financial position, results of operations, or liquidity. Management accrues a liability for litigation if an unfavorable outcome is determined to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined to be probable and a range of loss can be reasonably estimated, management accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Management does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on the Company’s financial position or results of operations; however, litigation is subject to inherent uncertainties. Under the Company’s leases, tenants are typically obligated to indemnify the Company from and against all liabilities, costs, and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant. Guarantees In connection with certain of the Company's real estate financing activities and equity method investments, the Company has made guarantees to pay portions of certain senior loans of third parties associated with the development projects. As of September 30, 2023, the Company had an outstanding guarantee liability of $0.1 million related to the $32.9 million senior loan on the Harbor Point Parcel 4. As of September 30, 2023, no amounts have been funded on this senior loan. Commitments The Company has a bonding line of credit for its general contracting construction business and is contingently liable under performance and payment bonds, bonds for cancellation of mechanics liens and defect bonds. Such bonds collectively totaled $7.7 million and $8.5 million as of September 30, 2023 and December 31, 2022, respectively. Unfunded Loan Commitments The Company has certain commitments related to its notes receivable investments that it may be required to fund in the future. The Company is generally obligated to fund these commitments at the request of the borrower or upon the occurrence of events outside of the Company's direct control. As of September 30, 2023, the Company had six notes receivable with a total of $52.1 million of unfunded commitments. If commitments are funded in the future, interest will be charged at rates consistent with the existing investments. As of September 30, 2023, the Company has recorded a $0.9 million CECL allowance that relates to the unfunded commitments, which was recorded as a liability in other liabilities in the consolidated balance sheet. See Note 6 for more information.

Real Estate Investment (Tables)

9 Months Ended

Sep. 30, 2023

Real Estate [Abstract]

Summary of Purchase Price Allocation


	The Interlock(1)


Building	$	183,907


In-place leases	35,234
Above-market leases	62
Below-market leases	(3,931)

Finance lease right-of-use assets(2)	46,616
Finance lease liabilities	(46,616)



Net assets acquired	$	215,272

________________________________________

(1) The net assets acquired attributable to the office and retail real estate segments were $134.6 million and $80.6 million, respectively.

(2) Excludes $1.1 million of rent for the finance lease, which was prepaid on the acquisition date. The total finance lease right-of-use asset recognized on the acquisition date was $47.7 million.

Derivative Financial Instruments - Change in Fair Value of Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative [Line Items]
Total change in fair value of interest rate derivatives	$ 4,972			$ 7,917			$ 11,842	$ 26,480
Change in fair value of derivatives and other	1,484			809			1,974	7,700
Unrealized cash flow hedge gains	3,488	$ 6,806	$ (426)	7,108	$ 3,950	$ 7,722	9,868	18,780
Interest rate swaps
Derivative [Line Items]
Total change in fair value of interest rate derivatives	4,952			4,330			12,188	13,894
Interest rate caps
Derivative [Line Items]
Total change in fair value of interest rate derivatives	$ 20			$ 3,587			$ (346)	$ 12,586

Derivative Financial Instruments - Additional Information (Details) $ in Millions	Sep. 30, 2023 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gain reclassified during next 12 months	$ 11.6

Equity

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Equity

Stockholders’ Equity

On March 10, 2020, the Company commenced an at-the-market continuous equity offering program (the "ATM Program") through which the Company may, from time to time, issue and sell shares of its common stock and shares of its 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock (the "Series A Preferred Stock") having an aggregate offering price of up to $300.0 million, to or through its sales agents and, with respect to shares of its common stock, may enter into separate forward sales agreements to or through the forward purchaser.

During the nine months ended September 30, 2023, the Company did not issue any shares of common stock or Series A Preferred Stock under the ATM Program. Shares having an aggregate offering price of $205.0 million remained unsold under the ATM Program as of November 3, 2023.

On April 3, 2023, in connection with the tender by a holder of Class A Units of 51,000 Class A Units for redemption by the Operating Partnership, the Company elected to satisfy the redemption request with a cash payment of $0.6 million.

On July 14, 2023, in connection with the tender by a holder of Class A Units of 10,146 Class A Units for redemption by the Operating Partnership, the Company elected to satisfy the redemption request with a cash payment of $0.1 million.

Noncontrolling Interests

As of September 30, 2023 and December 31, 2022, the Company held a 75.8% and 76.7% economic interest in the Operating Partnership, respectively. As of September 30, 2023, the Company also held a preferred interest in the Operating Partnership in the form of preferred units with a liquidation preference of $171.1 million. The Company is the primary beneficiary of the Operating Partnership as it has the power to direct the activities of the Operating Partnership and the rights to absorb 75.8% of the net income of the Operating Partnership. As the primary beneficiary, the Company consolidates the financial position and results of operations of the Operating Partnership. Noncontrolling interests in the Operating Partnership represent units of limited partnership interest in the Operating Partnership not held by the Company. As of September 30, 2023, there were 21,603,062 Class A Units and 39,694 LTIP Units in the Operating Partnership ("LTIP Units") not held by the Company. The Company's financial position and results of operations are the same as those of the Operating Partnership.

Additionally, the Operating Partnership owns a majority interest in certain non-wholly owned operating and development properties. The noncontrolling interest for consolidated real estate entities was $10.4 million and $24.1 million as of September 30, 2023 and December 31, 2022, respectively, which represents the minority partners' interest in certain joint venture entities.

Share Repurchase Program

On June 15, 2023, the Company adopted a $50.0 million share repurchase program (the "Share Repurchase Program"). Under the Share Repurchase Program, the Company may repurchase shares of common stock and Series A Preferred Stock from time to time in the open market, in block purchases, through privately negotiated transactions, the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, or other means. The Share Repurchase Program does not obligate the Company to acquire any specific number of shares or acquire shares over any specific period of time. The Share Repurchase Program may be suspended or discontinued at any time by the Company and does not have an expiration date.

During the nine months ended September 30, 2023, the Company repurchased 62,293 shares of common stock. During the nine months ended September 30, 2023, the Company did not repurchase any shares of Series A Preferred Stock. As of September 30, 2023, $49.4 million remained available for repurchases under the Share Repurchase Program.

Dividends and Distributions

During the nine months ended September 30, 2023, the following dividends/distributions were declared or paid:

Equity type

Declaration Date

Record Date

Payment Date

Dividends per Share/Unit

Aggregate Dividends/Distributions on Stock and Units (in thousands)

Common Stock/Class A Units

11/04/2022

12/28/2023

01/05/2023

0.190

16,785

Common Stock/Class A Units

02/28/2023

03/29/2023

04/06/2023

0.190

16,825

Common Stock/Class A Units

05/08/2023

06/28/2023

07/06/2023

0.195

17,471

Common Stock/Class A Units

09/15/2023

09/27/2023

10/05/2023

0.195

17,476

Series A Preferred Stock

11/04/2022

01/03/2023

01/13/2023

0.421875

2,887

Series A Preferred Stock

02/28/2023

04/03/2023

04/14/2023

0.421875

2,887

Series A Preferred Stock

05/08/2023

07/03/2023

07/14/2023

0.421875

2,887

Series A Preferred Stock

09/15/2023

10/02/2023

10/13/2023

0.421875

2,887

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Segments (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Schedule of Net Operating Income of Reportable Segments

The following table presents NOI for the Company's five reportable segments for the three and nine months ended September 30, 2023 and 2022 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Retail real estate
Rental revenues	$	25,858	$	21,223	$	73,004	$	64,197
Rental expenses	4,125		3,420		11,715		10,254
Real estate taxes	2,312		2,206		6,789		6,715
Segment net operating income	19,421		15,597		54,500		47,228
Office real estate
Rental revenues	22,077		18,687		62,156		54,024
Rental expenses	5,925		4,886		16,282		13,626
Real estate taxes	2,262		2,044		6,524		5,583
Segment net operating income	13,890		11,757		39,350		34,815
Multifamily real estate
Rental revenues	14,978		13,833		43,922		45,381
Rental expenses	4,706		4,441		13,395		14,221
Real estate taxes	1,293		1,204		3,597		4,397
Segment net operating income	8,979		8,188		26,930		26,763
General contracting and real estate services
General contracting and real estate services revenues	99,408		69,024		286,220		138,947
General contracting and real estate services expenses	96,095		66,252		276,336		133,491
Segment gross profit	3,313		2,772		9,884		5,456
Real estate financing
Interest income	3,496		3,372		10,257		10,070
Interest expense(a)	728		840		2,634		2,482
Segment gross profit	2,768		2,532		7,623		7,588
Net operating income	$	48,371	$	40,846	$	138,287	$	121,850

________________________________________

Schedule of Reconciliation of Net Income

The following table reconciles NOI to net income, the most directly comparable GAAP measure, for the three and nine months ended September 30, 2023 and 2022 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net operating income	$	48,371	$	40,846	$	138,287	$	121,850
Interest income(a)	194		118		566		340
Depreciation and amortization	(22,462)		(17,527)		(60,808)		(54,865)
Amortization of right-of-use assets - finance leases	(425)		(278)		(1,049)		(833)
General and administrative expenses	(4,286)		(3,854)		(13,786)		(12,179)
Acquisition, development, and other pursuit costs	—		—		(18)		(37)
Impairment charges	(5)		—		(107)		(333)
Gain on real estate dispositions, net	227		33,931		738		53,424
Interest expense(b)	(14,716)		(9,505)		(38,741)		(26,265)

Loss on extinguishment of debt	—		(2,123)		—		(2,899)
Change in fair value of derivatives and other	2,466		782		5,024		7,512
Unrealized credit loss (provision) release	(694)		42		(871)		(858)
Other income (expense), net	63		118		324		415
Income tax (provision) benefit	(310)		(181)		(834)		140
Net income	$	8,423	$	42,369	$	28,725	$	85,412

________________________________________

Real Estate Investment - Equity Method Investments (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Apr. 01, 2022
Real Estate [Line Items]
Investment in equity method investment during period	$ 53,689	$ 51,565
Equity method investments	125,672		$ 71,983
Harbor Point Parcel 3
Real Estate [Line Items]
Equity method investments	$ 1,800		900
Harbor Point Parcel 3 \| Beatty Development Group
Real Estate [Line Items]
Interests in equity method investments	50.00%
Investment in equity method investment during period	$ 500
Maximum commitment	45,600
Equity method investments	40,300		39,800
Harbor Point Parcel 4
Real Estate [Line Items]
Equity method investments	$ 600		200
Harbor Point Parcel 4 \| Beatty Development Group
Real Estate [Line Items]
Interests in equity method investments	78.00%			78.00%
Investment in equity method investment during period	$ 53,200
Maximum commitment	108,900
Equity method investments	$ 85,400		$ 32,200
Potential increase in ownership percentage	90.00%

Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Schedule of Rental Revenue

Rental revenue for the three and nine months ended September 30, 2023 and 2022 comprised the following (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Base rent and tenant charges	$	61,021	$	51,978	$	172,585	$	158,281
Accrued straight-line rental adjustment	1,505		1,506		4,748		4,542
Lease incentive amortization	(123)		(171)		(438)		(517)
(Above) below market lease amortization, net	510		430		2,187		1,296
Total rental revenue	$	62,913	$	53,743	$	179,082	$	163,602

Construction Contracts - Summary of Backlog (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue, Remaining Performance Obligation [Roll Forward]
Beginning backlog	$ 592,787	$ 541,214	$ 665,564	$ 215,518
New contracts/change orders	20,646	53,966	135,414	449,712
Work performed	(99,855)	(69,251)	(287,400)	(139,301)
Ending backlog	$ 513,578	$ 525,929	$ 513,578	$ 525,929

Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Reclassification [Line Items]
Interest income, operating	$ 3,690	$ 3,490	$ 10,823	$ 10,410
Revenues	166,011	126,257	476,125	312,959
Operating income	$ 22,342	54,076	$ 66,457	109,849
Revision of Prior Period, Reclassification, Adjustment
Reclassification [Line Items]
Interest income, operating		3,500		10,400
Interest income, nonoperating		(3,500)		(10,400)
Revenues		3,500		10,400
Operating income		$ 3,500		$ 10,400

- Definition

Amount of operating interest income, including, but not limited to, amortization and accretion of premiums and discounts on securities.

+ References + Details

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

+ Details

Equity - Additional Information (Details) - USD ($)							9 Months Ended	12 Months Ended
Equity - Additional Information (Details) - USD ($)	Nov. 03, 2023	Oct. 09, 2023	Oct. 02, 2023	Jul. 14, 2023	Apr. 03, 2023	Mar. 10, 2020	Sep. 30, 2023	Dec. 31, 2022	Jun. 15, 2023
Class of Stock [Line Items]
Percentage of operating partnership held							75.80%	76.70%
Preferred stock issued							$ 171,085,000	$ 171,085,000
Stock repurchase program									$ 50,000,000
Stock repurchase program remaining amount							49,400,000
Noncontrolling interests in investment entities \| Operating Partnership
Class of Stock [Line Items]
Ownership interest percentage in properties							$ 10,400,000	$ 24,100,000
Class A units
Class of Stock [Line Items]
Class A units not held by company (in shares)							21,603,062
LTIP Units
Class of Stock [Line Items]
Class A units not held by company (in shares)							39,694
Subsequent event
Class of Stock [Line Items]
Stock redeemed (in shares)			50,000
Common stock \| Subsequent event
Class of Stock [Line Items]
Stock repurchased during period, shares (in shares)		533,699
Stock repurchase program remaining amount	$ 43,800,000
The Amendments \| Subsequent event
Class of Stock [Line Items]
Maximum aggregate offering price of shares to be sold (up to)	$ 205,000,000
Redeemable convertible preferred stock
Class of Stock [Line Items]
Preferred stock dividend rate percentage							6.75%	6.75%
Redeemable convertible preferred stock \| At The Market Program
Class of Stock [Line Items]
Preferred stock dividend rate percentage						6.75%
Maximum aggregate offering price of shares to be sold (up to)						$ 300,000,000
Series A Preferred Stock
Class of Stock [Line Items]
Stock repurchased during period, shares (in shares)							0
Common Class A
Class of Stock [Line Items]
Stock redeemed (in shares)				10,146	51,000
Payments for redemption of stock				$ 100,000	$ 600,000
Stock repurchased during period, shares (in shares)							62,293

Indebtedness (Details)						9 Months Ended
Indebtedness (Details)	Jun. 29, 2023 USD ($)	May 19, 2023 USD ($)	Apr. 03, 2023 USD ($)	Dec. 06, 2022 USD ($)	Aug. 23, 2022 USD ($) extension_option	Sep. 30, 2023 USD ($)	Aug. 29, 2023 USD ($)	Dec. 31, 2022 USD ($)
Indebtedness
Notional Amount						$ 1,475,317,000		$ 1,288,349,000
Interest rate caps
Indebtedness
Notional Amount						$ 176,564,000
Minimum \| Interest rate caps
Indebtedness
Interest rate cap (in percent)						1.00%
Maximum \| Interest rate caps
Indebtedness
Interest rate cap (in percent)						3.00%
Line of Credit \| Amended And Restated Credit Agreement
Indebtedness
Aggregate capacity under the credit facility					$ 550,000,000
Accordion feature maximum borrowing capacity					1,000,000,000
Line of Credit \| M&T Term Loan Agreement
Indebtedness
Aggregate capacity under the credit facility				$ 100,000,000
Accordion feature maximum borrowing capacity				$ 200,000,000
Line of Credit \| TD Term Loan Facility
Indebtedness
Aggregate capacity under the credit facility		$ 75,000,000
Accordion feature maximum borrowing capacity		$ 150,000,000
Line of Credit \| Revolving credit facility \| Amended And Restated Credit Agreement
Indebtedness
Aggregate capacity under the credit facility					$ 250,000,000		$ 355,000,000
Number of extension options \| extension_option					2
Duration of extension option					6 months
Extension fee percentage					0.075%
Increased the capacity of the revolving credit facility							105,000,000
Credit spread adjustment					0.10%
Line of credit, amount outstanding						$ 200,000,000		61,000,000
Interest rate on credit facility as of end of period						6.82%
Interest rate on credit facility as of end of period after giving effect to interest rate caps and swaps						4.40%
Line of Credit \| Revolving credit facility \| M&T Term Loan Agreement
Indebtedness
Duration of extension option				1 year
Extension fee percentage				0.075%
Credit spread adjustment				0.10%
Line of credit, amount outstanding						$ 100,000,000		100,000,000
Interest rate on credit facility as of end of period						6.72%
Interest rate on credit facility as of end of period after giving effect to interest rate caps and swaps						4.90%
Line of Credit \| Revolving credit facility \| TD Term Loan Facility
Indebtedness
Duration of extension option		1 year
Extension fee percentage		0.15%
Credit spread adjustment		0.10%
Line of credit, amount outstanding						$ 95,000,000
Interest rate on credit facility as of end of period						6.82%
Interest rate on credit facility as of end of period after giving effect to interest rate caps and swaps						4.70%
TD term loan	$ 95,000,000
Line of Credit \| Revolving credit facility \| Secured Overnight Financing Rate (SOFR) \| M&T Term Loan Agreement
Indebtedness
Stated interest rate, basis spread on variable rate				1.00%
Line of Credit \| Revolving credit facility \| Secured Overnight Financing Rate (SOFR) \| TD Term Loan Facility
Indebtedness
Stated interest rate, basis spread on variable rate		1.00%
Line of Credit \| Revolving credit facility \| Federal Funds Rate \| M&T Term Loan Agreement
Indebtedness
Stated interest rate, basis spread on variable rate				0.50%
Line of Credit \| Revolving credit facility \| Federal Funds Rate \| TD Term Loan Facility
Indebtedness
Stated interest rate, basis spread on variable rate		0.50%
Line of Credit \| Revolving credit facility \| Base Rate \| TD Term Loan Facility
Indebtedness
Stated interest rate, basis spread on variable rate		1.00%
Line of Credit \| Revolving credit facility \| Minimum \| Amended And Restated Credit Agreement
Indebtedness
Basis points on unused commitment fee					0.15%
Line of Credit \| Revolving credit facility \| Minimum \| Secured Overnight Financing Rate (SOFR) \| Amended And Restated Credit Agreement
Indebtedness
Stated interest rate, basis spread on variable rate					1.30%
Line of Credit \| Revolving credit facility \| Maximum \| Amended And Restated Credit Agreement
Indebtedness
Basis points on unused commitment fee					0.25%
Line of Credit \| Revolving credit facility \| Maximum \| Secured Overnight Financing Rate (SOFR) \| Amended And Restated Credit Agreement
Indebtedness
Stated interest rate, basis spread on variable rate					1.85%
Line of Credit \| Term Loan Facility \| Amended And Restated Credit Agreement
Indebtedness
Aggregate capacity under the credit facility					$ 300,000,000		$ 655,000,000
Credit spread adjustment					0.10%
Line of credit, amount outstanding						$ 300,000,000		$ 300,000,000
Interest rate on credit facility as of end of period						6.72%
Interest rate on credit facility as of end of period after giving effect to interest rate caps and swaps						3.02%
Line of Credit \| Term Loan Facility \| Minimum \| Secured Overnight Financing Rate (SOFR) \| Amended And Restated Credit Agreement
Indebtedness
Stated interest rate, basis spread on variable rate					1.25%
Line of Credit \| Term Loan Facility \| Maximum \| Secured Overnight Financing Rate (SOFR) \| Amended And Restated Credit Agreement
Indebtedness
Stated interest rate, basis spread on variable rate					1.80%
Secured debt \| Thames Street Wharf
Indebtedness
Debt instrument, face amount			$ 69,000,000
Secured debt \| Constellation Energy Building note receivable
Indebtedness
Debt instrument, face amount			$ 175,000,000
Secured debt \| Secured Overnight Financing Rate (SOFR) \| Thames Street Wharf
Indebtedness
Stated interest rate, basis spread on variable rate			1.30%
Credit spread adjustment			0.10%
Secured debt \| Secured Overnight Financing Rate (SOFR) \| Constellation Energy Building note receivable
Indebtedness
Stated interest rate, basis spread on variable rate			1.50%
Credit spread adjustment			0.11%
Construction loans
Indebtedness
Borrowings under construction loans						$ 27,700,000

Real Estate Investment - Property Disposition (Details) - Disposed of by Sale - USD ($) $ in Millions	Sep. 20, 2023	Apr. 11, 2023
Market At Mill Creek
Business Acquisition [Line Items]
Gain on disposition		$ 0.5
Brooks Crossing Retail Outparcel
Business Acquisition [Line Items]
Gain on disposition	$ 0.2

- Definition

The net gain (loss) resulting from sales and other disposals of real estate owned for investment purposes.

+ References + Details

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss) Attributable to Parent	$ 6,940	$ 28,877	$ 23,512	$ 63,030

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Notes Receivable and Current Expected Credit Losses - Summary of Notes Receivable Outstanding (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jul. 26, 2023	May 25, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable guarantee premium	$ 0			$ 701
Allowance for credit losses	(1,644)			(1,292)	$ (1,508)	$ (994)
Total notes receivable	83,713			136,039
Allowance related to unfunded commitments	857			338	$ 354	$ 10
Other liabilities
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance related to unfunded commitments	900			300
The Allure at Edinburgh
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum principal commitment		$ 9,200
Mezzanine loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	73,324			112,284
Maximum principal commitment	222,727
Mezzanine loan \| Solis City Park II
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	23,567			19,062
Maximum principal commitment	$ 20,594
Interest rate	13.00%
Mezzanine loan \| Solis Gainesville II
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 21,471			6,638
Maximum principal commitment	$ 19,595
Interest rate	14.00%
Mezzanine loan \| Solis Kennesaw
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 11,003			0
Maximum principal commitment	$ 37,870		$ 37,900
Interest rate	14.00%
Mezzanine loan \| Solis Peachtree Corners
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 7,798			0
Maximum principal commitment	$ 28,440	$ 28,400
Interest rate	15.00%
Mezzanine loan \| The Allure at Edinburgh
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 9,485			0
Maximum principal commitment	$ 9,228
Interest rate	15.00%
Mezzanine loan \| The Interlock
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 0			$ 86,584
Maximum principal commitment	$ 107,000
Interest rate	15.00%
Mezzanine loan \| Constellation Energy Building note receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate				3.00%
Constellation Energy Building note receivable \| Constellation Energy Building note receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 0			$ 12,834
Other notes receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 12,033			$ 11,512

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues
Rental revenues	$ 62,913	$ 53,743	$ 179,082	$ 163,602
Revenue, Product and Service [Extensible List]	Real Estate [Member]	Real Estate [Member]	Real Estate [Member]	Real Estate [Member]
General contracting and real estate services revenues	$ 99,408	$ 69,024	$ 286,220	$ 138,947
Interest income	3,690	3,490	10,823	10,410
Total revenues	166,011	126,257	476,125	312,959
Expenses
Rental expenses	14,756	12,747	41,392	38,101
Real estate taxes	5,867	5,454	16,910	16,695
General contracting and real estate services expenses	96,095	66,252	276,336	133,491
Depreciation and amortization	22,462	17,527	60,808	54,865
Amortization of right-of-use assets - finance leases	425	278	1,049	833
General and administrative expenses	4,286	3,854	13,786	12,179
Acquisition, development, and other pursuit costs	0	0	18	37
Impairment charges	5	0	107	333
Total expenses	143,896	106,112	410,406	256,534
Gain on real estate dispositions, net	227	33,931	738	53,424
Operating income	22,342	54,076	66,457	109,849
Interest expense	(15,444)	(10,345)	(41,375)	(28,747)
Loss on extinguishment of debt	0	(2,123)	0	(2,899)
Change in fair value of derivatives and other	2,466	782	5,024	7,512
Unrealized credit loss (provision) release	(694)	42	(871)	(858)
Other income (expense), net	63	118	324	415
Income before taxes	8,733	42,550	29,559	85,272
Income tax (provision) benefit	(310)	(181)	(834)	140
Net income	8,423	42,369	28,725	85,412
Net income attributable to noncontrolling interests:
Investment entities	(193)	(5,583)	(616)	(5,811)
Operating Partnership	(1,290)	(7,909)	(4,597)	(16,571)
Net income attributable to Armada Hoffler Properties, Inc.	6,940	28,877	23,512	63,030
Preferred stock dividends	(2,887)	(2,887)	(8,661)	(8,661)
Net income attributable to common stockholders	$ 4,053	$ 25,990	$ 14,851	$ 54,369
Net income attributable to common stockholders per share (basic) (in dollars per share)	$ 0.06	$ 0.38	$ 0.22	$ 0.81
Net income attributable to common stockholders per share (diluted) (in dollars per share)	$ 0.06	$ 0.38	$ 0.22	$ 0.81
Weighted-average common shares outstanding (basic) (in shares)	67,945	67,729	67,878	67,525
Weighted-average common shares outstanding (diluted) (in shares)	67,945	67,729	67,878	67,525
Comprehensive income:
Net income	$ 8,423	$ 42,369	$ 28,725	$ 85,412
Unrealized cash flow hedge gains	3,488	7,108	9,868	18,780
Realized cash flow hedge (gains) losses reclassified to net income	(6,315)	(366)	(14,292)	1,287
Comprehensive income	5,596	49,111	24,301	105,479
Comprehensive income attributable to Armada Hoffler Properties, Inc.	4,874	33,987	20,265	78,265
Investment entities
Expenses
Net income	193	5,583
Comprehensive income:
Net income	193	5,583
Unrealized cash flow hedge gains	86	74
Realized cash flow hedge (gains) losses reclassified to net income	(191)	1
Comprehensive income attributable to noncontrolling interests:	(89)	(5,659)	(452)	(5,987)
Operating Partnership
Expenses
Net income	1,290	7,909
Comprehensive income:
Net income	1,290	7,909
Unrealized cash flow hedge gains	822	1,641
Realized cash flow hedge (gains) losses reclassified to net income	(1,479)	(85)
Comprehensive income attributable to noncontrolling interests:	$ (633)	$ (9,465)	$ (3,584)	$ (21,227)

Leases - Lessor, Rental Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Base rent and tenant charges	$ 61,021	$ 51,978	$ 172,585	$ 158,281
Accrued straight-line rental adjustment	1,505	1,506	4,748	4,542
Lease incentive amortization	(123)	(171)	(438)	(517)
(Above) below market lease amortization, net	510	430	2,187	1,296
Total rental revenue	$ 62,913	$ 53,743	$ 179,082	$ 163,602

Notes Receivable and Current Expected Credit Losses

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Notes Receivable and Current Expected Credit Losses

Notes Receivable

The Company had the following notes receivable outstanding as of September 30, 2023 and December 31, 2022 ($ in thousands):


	Outstanding loan amount												Interest compounding
Development Project	September 30, 2023			December 31, 2022			Maximum principal commitment			Interest rate
Solis City Park II	$	23,567	(a)	$	19,062	(a)	$	20,594		13.0	%		Annually
Solis Gainesville II	21,471		(a)	6,638		(a)	19,595			14.0	%	(b)	Annually
Solis Kennesaw	11,003		(a)	—			37,870			14.0	%	(b)	Annually
Solis Peachtree Corners	7,798		(a)	—			28,440			15.0	%	(b)	Annually
The Allure at Edinburgh	9,485		(a)	—			9,228			15.0	%	(c)	None
The Interlock(d)	—			86,584		(a)	107,000		(e)	15.0	%		None
Total mezzanine & preferred equity	73,324			112,284			$	222,727
Constellation Energy Building note receivable	—			12,834
Other notes receivable	12,033		(a)	11,512		(a)
Notes receivable guarantee premium	—			701
Allowance for credit losses(f)	(1,644)			(1,292)

Total notes receivable	$	83,713		$	136,039

________________________________________

(a) Outstanding loan amounts include any accrued and unpaid interest, and accrued exit fees, as applicable.

(d) This note receivable was redeemed on May 19, 2023 in connection with the Company’s acquisition of The Interlock. Refer below under “The Interlock” for further details.

(e) This amount includes interest reserves.

Interest on the notes receivable is accrued and funded utilizing the interest reserves for each loan, which are components of the respective maximum loan commitments, and such accrued interest is generally added to the loan receivable balances. The Company recognized interest income for the three and nine months ended September 30, 2023 and 2022 as follows (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,
Development Project	2023			2022			2023			2022




Nexton Multifamily	$	—		$	680		$	—		$	1,966
Solis City Park II	740		(a)	329		(a)	2,142		(a)	554		(a)
Solis Gainesville II	717		(a)(b)	—			1,964		(a)(b)	—
Solis Kennesaw	1,164		(a)(b)	—			1,629		(a)(b)	—
Solis Peachtree Corners	617		(a)(b)	—			617		(a)(b)	—
The Allure at Edinburgh	258			—			258			—
The Interlock	—			2,363		(a)	3,647		(a)	7,550		(a)
Total mezzanine & preferred equity	3,496			3,372			10,257			10,070
Other interest income	194			118			566			340
Total interest income	$	3,690		$	3,490		$	10,823		$	10,410

________________________________________

(a) Includes recognition of interest income related to fee amortization.

(b) Includes recognition of unused commitment fees.

Solis Gainesville II

On March 29, 2023, the Solis Gainesville II preferred equity investment agreement was modified to adjust the interest rate. The interest rate of 14% remains effective through the first 24 months of the investment. Beginning on October 3, 2024, the investment will bear interest at a rate of 10% for 12 months. On October 3, 2025, the investment will again bear interest at a rate of 14% per annum through maturity. Additionally, the amendment introduced an unused commitment fee of 10% on the unfunded portion of the investment's maximum loan commitment, which is effective January 1, 2023. Both the interest and unused commitment fee compound annually.

The Interlock

On May 19, 2023, the Company acquired The Interlock. The consideration for such acquisition included the redemption of the Company's outstanding $90.2 million mezzanine loan on the project. Refer to Note 5 for further information regarding the acquisition.

Solis Kennesaw

On May 25, 2023, the Company entered into a $37.9 million preferred equity investment for the development of a multifamily property located in Marietta, Georgia ("Solis Kennesaw"). The investment has economic terms consistent with a note receivable, including a mandatory redemption or maturity on May 25, 2027, and it is accounted for as a note receivable. The Company's investment bears interest at a rate of 14.0% for the first 24 months. Beginning on May 25, 2025, the investment will bear interest at a rate of 9.0% for 12 months. On May 25, 2026, the investment will again bear interest at a rate of 14.0% through maturity. The interest compounds annually. The Company also earns an unused commitment fee of 11.0% on the unfunded portion of the investment's maximum loan commitment, which does not compound, and an equity fee on its commitment of $0.6 million to be amortized through redemption. The preferred equity investment is subject to a minimum interest guarantee of $13.1 million over the life of the investment.

Management has concluded that this entity is a VIE. Because the other investor in the project is the developer and managing member of Solis Kennesaw, the Company does not have the power to direct the activities of the project that most significantly impact its performance. Accordingly, the Company is not the project's primary beneficiary and does not consolidate the project in its consolidated financial statements.

Solis Peachtree Corners

On July 26, 2023, the Company entered into a $28.4 million preferred equity investment for the development of a multifamily property located in Peachtree Corners, Georgia ("Solis Peachtree Corners"). The preferred equity investment has economic and other terms consistent with a note receivable, including a mandatory redemption feature effective on October 27, 2027. The Company's investment bears interest at a rate of 15.0% for the first 27 months. Beginning on November 1, 2025, the investment will bear interest at a rate of 9.0% for 12 months. On November 1, 2026, the investment will again bear interest at a rate of 15.0% through maturity. The interest compounds annually. The Company also earns an unused commitment fee of 10.0% on the unfunded portion of the investment's maximum loan commitment, which also compounds annually, and an equity fee on its commitment of $0.4 million to be amortized through redemption. The preferred equity investment is subject to a minimum interest guarantee of $12.0 million over the life of the investment.

Management has concluded that this entity is a VIE. Because the other investor in the project is the developer and managing member of Solis Peachtree Corners, the Company does not have the power to direct the activities of the project that most significantly impact its performance. Accordingly, the Company is not the project's primary beneficiary and does not consolidate the project in its consolidated financial statements.

The Allure at Edinburgh

On July 26, 2023, the Company entered into a $9.2 million preferred equity investment for the development of a multifamily property located in Chesapeake, Virginia ("The Allure at Edinburgh"). The preferred equity investment has economic and other terms consistent with a note receivable, including a mandatory redemption feature effective on January 16, 2028. The Company's investment bears interest at a rate of 15.0%, which does not compound. Upon The Allure at Edinburgh obtaining a certificate of occupancy, the investment will bear interest at a rate of 10.0%. The common equity partner in the development property holds an option to sell the property to the Company at a predetermined amount if certain conditions are met. The Company also holds an option to purchase the property at any time prior to maturity of the preferred equity investment, and at the same predetermined amount as the common equity partner's option to sell.

Management has concluded that this entity is a VIE. Because the other investor in the project is the developer and managing member of The Allure at Edinburgh, the Company does not have the power to direct the activities of the project that most significantly impact its performance. Accordingly, the Company is not the project's primary beneficiary and does not consolidate the project in its consolidated financial statements.

Allowance for Loan Losses

The Company is exposed to credit losses primarily through its real estate financing investments. As of September 30, 2023, the Company had five real estate financing investments, which are financing development projects in various stages of completion or lease-up. Each of these projects is subject to a loan that is senior to the Company’s loan. Interest on these loans is paid in kind and is generally not expected to be paid until a sale of the project after completion of the development.

The Company's management performs a quarterly analysis of the loan portfolio to determine the risk of credit loss based on

the progress of development activities, including leasing activities, projected development costs, and current and projected

subordinated and senior loan balances. The Company estimates future losses on its notes receivable using risk

ratings that correspond to probabilities of default and loss given default. The Company's risk ratings are as follows:

•Pass: loans in this category are adequately collateralized by a development project with conditions materially consistent with the Company's underwriting assumptions.

•Special Mention: loans in this category show signs that the economic performance of the project may suffer as a result of slower-than-expected leasing activity or an extended development or marketing timeline. Loans in this category warrant increased monitoring by management.

•Substandard: loans in this category may not be fully collected by the Company unless remediation actions are taken. Remediation actions may include obtaining additional collateral or assisting the borrower with asset management activities to prepare the project for sale. The Company will also consider placing the loan on non-accrual status if it does not believe that additional interest accruals will ultimately be collected.

The Company updated the risk ratings for each of its notes receivable as of September 30, 2023 and obtained industry loan loss data relative to these risk ratings. Each of the outstanding loans as of September 30, 2023 was "Pass" rated. The Company's analysis resulted in an allowance for loan losses of approximately $2.5 million as of September 30, 2023. An allowance related to unfunded commitments of approximately $0.9 million as of September 30, 2023 was recorded as Other liabilities on the consolidated balance sheet.

At September 30, 2023, the Company reported $83.7 million of notes receivable, net of allowances of $1.6 million. At December 31, 2022, the Company reported $136.0 million of notes receivable, net of allowances of $1.3 million. Changes in the allowance for the nine months ended September 30, 2023 and 2022 were as follows (in thousands):


	Nine Months Ended September 30, 2023						Nine Months Ended September 30, 2022
	Funded		Unfunded		Total		Funded		Unfunded		Total
Beginning balance	$	1,292	$	338	$	1,630	$	994	$	10	$	1,004

Unrealized credit loss provision (release)	817		519		1,336		514		344		858
Release due to redemption	(465)		—		(465)		—		—		—

Ending balance	$	1,644	$	857	$	2,501	$	1,508	$	354	$	1,862

The Company places loans on non-accrual status when the loan balance, together with the balance of any senior loan, approximately equals the estimated realizable value of the underlying development project. As of December 31, 2022, the Company had the Constellation Energy Building note, which bore interest at 3% per annum, on non-accrual status. The principal balance of the note receivable was adequately secured by the seller's partnership interest. On January 14, 2023,

the Company acquired an additional 11% membership interest in the Constellation Energy Building, increasing its ownership interest to 90%, in exchange for full satisfaction of the note. As of September 30, 2023, there were no loans on non-accrual status.

Business of Organization - Additional Information (Details) - property	Sep. 30, 2023	Dec. 31, 2022
Business And Organization [Line Items]
Percentage of operating partnership held	75.80%	76.70%
Operating Property
Business And Organization [Line Items]
Number of real estate properties	59
Development Property
Business And Organization [Line Items]
Number of real estate properties	2
General Partner
Business And Organization [Line Items]
Percentage of operating partnership held	0.10%

Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
Related Party Transactions (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Related Party Transactions
Segment gross profit	$ 48,371,000	$ 40,846,000	$ 138,287,000	$ 121,850,000
Related Party
Related Party Transactions
Construction receivables	0		0		$ 0
Related Party \| Beatty Development Group
Related Party Transactions
Segment gross profit	$ 300,000	$ 200,000	$ 1,000,000	$ 400,000

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

+ References

+ Details

Construction Contracts - Summary of Net Position (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Contractors [Abstract]
Costs incurred on uncompleted construction contracts	$ 595,195	$ 571,465
Estimated earnings	21,997	22,162
Billings	(639,879)	(610,800)
Net position	(22,687)	(17,173)
Construction contract costs and estimated earnings in excess of billings	440	342	$ 232	$ 243
Billings in excess of construction contract costs and estimated earnings	$ (23,127)	$ (17,515)	$ (15,736)	$ (4,881)