0001569187-19-000037 | 10-Q | XBRL Viewer | Armada Hoffler Properties INC

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2019	Jul. 31, 2019
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
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		52,982,147
Amendment Flag	false
Entity Central Index Key	0001569187
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
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

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Real estate investments:
Income producing property	$ 1,407,224	$ 1,037,917
Held for development	2,752	2,994
Construction in progress	156,695	135,675
Gross real estate investments	1,566,671	1,176,586
Accumulated depreciation	(205,650)	(188,775)
Net real estate investments	1,361,021	987,811
Real estate investments held for sale	0	929
Cash and cash equivalents	23,109	21,254
Restricted cash	2,852	2,797
Accounts receivable, net	20,713	19,016
Notes receivable	144,743	138,683
Construction receivables, including retentions	13,696	16,154
Construction contract costs and estimated earnings in excess of billings	461	1,358
Equity method investments	0	22,203
Operating lease right-of-use assets	33,268
Finance lease right-of-use assets	24,415
Other assets	105,749	55,177
Total Assets	1,730,027	1,265,382
LIABILITIES AND EQUITY
Indebtedness, net	949,345	694,239
Accounts payable and accrued liabilities	15,983	15,217
Construction payables, including retentions	37,798	50,796
Billings in excess of construction contract costs and estimated earnings	1,789	3,037
Operating lease liabilities	41,300
Finance lease liabilities	17,862
Other liabilities	59,508	46,203
Total Liabilities	1,123,585	809,492
Stockholders’ equity:
Preferred stock, $0.01 par value, 100,000,000 shares authorized; 6.75% Series A Cumulative Redeemable Preferred Stock, 2,530,000 issued and outstanding as of June 30, 2019 and zero shares issued and outstanding as of December 31, 2018	63,250	0
Common stock, $0.01 par value, 500,000,000 shares authorized; 52,794,357 and 50,013,731 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively	528	500
Additional paid-in capital	394,269	357,353
Distributions in excess of earnings	(95,490)	(82,699)
Accumulated other comprehensive loss	(4,502)	(1,283)
Total stockholders’ equity	358,055	273,871
Noncontrolling interests in investment entities	4,550	0
Noncontrolling interests in Operating Partnership	243,837	182,019
Total Equity	606,442	455,890
Total Liabilities and Equity	$ 1,730,027	$ 1,265,382

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	2,530,000	0
Preferred stock, shares outstanding (in shares)	2,530,000	0
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)	52,794,357	50,013,731
Common stock, shares outstanding (in shares)	52,794,357	50,013,731
Redeemable convertible preferred stock
Preferred Stock dividend rate percentage	6.75%

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues
Rental revenues	$ 36,378	$ 28,598	$ 67,287	$ 57,297
Total revenues	57,822	49,252	105,767	101,001
Expenses
Rental expenses	8,027	6,522	14,752	12,946
Real estate taxes	3,451	2,735	6,579	5,548
Depreciation and amortization	13,478	9,179	23,382	18,457
General and administrative expenses	2,951	2,764	6,352	5,725
Acquisition, development and other pursuit costs	57	9	457	93
Impairment charges	0	98	0	98
Total expenses	48,087	41,394	87,931	85,368
Operating income	9,735	7,858	17,836	15,633
Interest income	5,593	2,375	10,912	4,607
Interest expense	(7,603)	(4,497)	(13,489)	(8,870)
Equity in income of unconsolidated real estate entities	0	0	273	0
Change in fair value of interest rate derivatives	(1,933)	(11)	(3,396)	958
Other income	4	54	64	168
Income before taxes	5,796	5,779	12,200	12,496
Income tax benefit	30	166	140	432
Net income	5,826	5,945	12,340	12,928
Net income attributable to noncontrolling interests:
Investment entities	320	0	320	0
Operating Partnership	(1,580)	(1,626)	(3,210)	(3,569)
Net income attributable to Armada Hoffler Properties, Inc.	4,566	4,319	9,450	9,359
Preferred stock dividends	(154)	0	(154)	0
Net income attributable to common stockholders	$ 4,412	$ 4,319	$ 9,296	$ 9,359
Net income attributable to stockholders per share (basic and diluted) (in dollars per share)	$ 0.08	$ 0.09	$ 0.18	$ 0.21
Weighted-average common shares outstanding (basic and diluted) (in shares)	52,451	45,928	51,692	45,532
Comprehensive income:
Net income	$ 5,826	$ 5,945	$ 12,340	$ 12,928
Unrealized cash flow hedge losses	(3,459)	0	(4,462)	0
Realized cash flow hedge losses reclassified to net income	35	0	107	0
Comprehensive income	2,402	5,945	7,985	12,928
Comprehensive income attributable to Armada Hoffler Properties, Inc.	2,045	4,319	6,231	9,359
General contracting and real estate services
Revenues
General contracting and real estate services revenues	21,444	20,654	38,480	43,704
Expenses
General contracting and real estate services expenses	20,123	20,087	36,409	42,501
Noncontrolling interests in investment entities
Expenses
Net income	(320)
Comprehensive income:
Net income	(320)
Comprehensive income attributable to noncontrolling interests:	320	0	320	0
Noncontrolling interests in Operating Partnership
Expenses
Net income	1,580	1,626
Comprehensive income:
Net income	1,580	1,626
Unrealized cash flow hedge losses	(912)
Realized cash flow hedge losses reclassified to net income	9
Comprehensive income attributable to noncontrolling interests:	$ (677)	$ (1,626)	$ (2,074)	$ (3,569)

Condensed Consolidated Statement of Equity - USD ($) $ in Thousands	Total	Preferred stock	Common stock	Additional paid-in capital	Distributions in excess of earnings	Accumulated other comprehensive loss	Total stockholders' equity	Noncontrolling interests in investment entities	Noncontrolling interests in Operating Partnership	Redeemable convertible preferred stock	Redeemable convertible preferred stock Preferred stock	Redeemable convertible preferred stock Additional paid-in capital	Redeemable convertible preferred stock Total stockholders' equity	Operating Partnership Additional paid-in capital	Operating Partnership Total stockholders' equity
Beginning balance at Dec. 31, 2017	$ 420,283	$ 0	$ 449	$ 287,407	$ (61,166)	$ 0	$ 226,690	$ 0	$ 193,593
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,983				5,040		5,040	0	1,943
Restricted stock awards, net of tax withholding	500		1	499			500
Restricted stock award forfeitures	(4)			(4)			(4)
Issuance of operating partnership units for acquisitions	1,696								1,696
Redemption of operating partnership units	(5)		2	1,797			1,799		(1,804)
Dividends and distributions declared	(12,552)				(9,064)		(9,064)		(3,488)
Ending balance at Mar. 31, 2018	416,901	0	452	289,699	(65,190)	0	224,961	0	191,940
Beginning balance at Dec. 31, 2017	420,283	0	449	287,407	(61,166)	0	226,690	0	193,593
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	12,928
Unrealized cash flow hedge losses	0
Realized cash flow hedge losses reclassified to net income	0
Ending balance at Jun. 30, 2018	456,970	0	488	338,577	(70,648)	0	268,417	0	188,553
Beginning balance at Mar. 31, 2018	416,901	0	452	289,699	(65,190)	0	224,961	0	191,940
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,945				4,319		4,319		1,626
Unrealized cash flow hedge losses	0
Realized cash flow hedge losses reclassified to net income	0
Net proceeds from issuance of common stock	48,981		35	48,946			48,981
Restricted stock awards, net of tax withholding	404		1	403			404
Issuance of operating partnership units for acquisitions	500			(5)			(5)		505
Redemption of operating partnership units	(2,526)			(466)			(466)		(2,060)
Dividends and distributions declared	(13,235)				(9,777)		(9,777)		(3,458)
Ending balance at Jun. 30, 2018	456,970	0	488	338,577	(70,648)	0	268,417	0	188,553
Beginning balance at Dec. 31, 2018	455,890	0	500	357,353	(82,699)	(1,283)	273,871	0	182,019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,514				4,884		4,884		1,630
Unrealized cash flow hedge losses	(1,003)					(752)	(752)		(251)
Realized cash flow hedge losses reclassified to net income	72					54	54		18
Net proceeds from issuance of common stock	30,206		21	30,185			30,206
Restricted stock awards, net of tax withholding	755		1	754			755
Restricted stock award forfeitures	(4)			(4)			(4)
Redemption of operating partnership units	0		1	1,259			1,260		(1,260)
Dividends and distributions declared	(14,577)				(11,009)		(11,009)		(3,568)
Ending balance at Mar. 31, 2019	477,686	0	523	389,547	(88,949)	(1,981)	299,140	0	178,546
Beginning balance at Dec. 31, 2018	455,890	0	500	357,353	(82,699)	(1,283)	273,871	0	182,019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	12,340
Unrealized cash flow hedge losses	(4,462)
Realized cash flow hedge losses reclassified to net income	107
Noncontrolling Interest, Increase from Business Combination	4,870
Issuance of operating partnership units for acquisitions	68,075								69,061					$ (986)	$ (986)
Ending balance at Jun. 30, 2019	606,442	63,250	528	394,269	(95,490)	(4,502)	358,055	4,550	243,837
Beginning balance at Mar. 31, 2019	477,686	0	523	389,547	(88,949)	(1,981)	299,140	0	178,546
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,826				4,566		4,566	(320)	1,580
Unrealized cash flow hedge losses	(3,459)					(2,547)	(2,547)		(912)
Realized cash flow hedge losses reclassified to net income	35					26	26		9
Net proceeds from issuance of common stock	7,498		4	7,494			7,498			$ 61,001	$ 63,250	$ (2,249)	$ 61,001
Restricted stock awards, net of tax withholding	464		1	463			464
Noncontrolling Interest, Increase from Business Combination	4,870							4,870
Dividends and distributions declared	(15,554)				(11,107)		(11,107)		(4,447)
Ending balance at Jun. 30, 2019	$ 606,442	$ 63,250	$ 528	$ 394,269	$ (95,490)	$ (4,502)	$ 358,055	$ 4,550	$ 243,837

Condensed Consolidated Statement of Equity (Parenthetical) - $ / shares		3 Months Ended
	May 07, 2019	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]
Dividends and distributions declared per common share and unit (in dollars per share)	$ 0.21	$ 0.20	$ 0.21	$ 0.21	$ 0.20

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

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018

OPERATING ACTIVITIES

Net income

$ 12,340

$ 12,928

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

Depreciation of buildings and tenant improvements

16,875

13,540

Amortization of leasing costs and in-place lease intangibles

6,507

4,917

Accrued straight-line rental revenue

(2,208)

(1,029)

Amortization of leasing incentives and above or below-market rents

(97)

(141)

Accrued straight-line ground rent expense

136

Adjustment for uncollectable accounts

112

Noncash stock compensation

1,017

820

Impairment charges

Noncash interest expense

701

557

Adjustment for Annapolis Junction loan discount amortization

^[1]

(2,356)

Change in fair value of interest rate derivatives

3,396

(958)

Equity in income of unconsolidated real estate entities

(273)

Changes in operating assets and liabilities:

Property assets

2,387

(2,505)

Property liabilities

(2,841)

(1,973)

Construction assets

4,142

4,443

Construction liabilities

(4,004)

(15,081)

Interest receivable

(7,539)

(4,604)

Net cash provided by operating activities

28,112

11,260

INVESTING ACTIVITIES

Development of real estate investments

(75,679)

(57,741)

Tenant and building improvements

(12,519)

(5,599)

Acquisitions of real estate investments, net of cash received

(133,345)

(32,967)

Dispositions of real estate investments, net of selling costs

1,014

4,271

Notes receivable issuances

(25,355)

(5,816)

Notes receivable paydowns

1,692

Leasing costs

(1,883)

(2,060)

Leasing incentives

(79)

Contributions to equity method investments

(535)

(3,127)

Net cash used for investing activities

(246,610)

(103,118)

FINANCING ACTIVITIES

Proceeds from issuance of cumulative redeemable perpetual preferred stock, net

61,001

Proceeds from issuance of common stock, net

37,704

48,981

Common shares tendered for tax withholding

(344)

(343)

Debt issuances, credit facility and construction loan borrowings

291,392

147,248

Debt and credit facility repayments, including principal amortization

(138,175)

(84,277)

Debt issuance costs

(3,167)

(381)

Redemption of operating partnership units

(2,531)

Dividends on common stock and distributions on Operating Partnership units

(28,003)

(24,337)

Net cash provided by financing activities

220,408

84,360

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

1,910

(7,498)

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

24,051

22,916

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

^[2]

25,961

15,418

Supplemental Disclosures (noncash transactions):

Increase in dividends and distributions payable

2,128

1,450

(Decrease) increase in accrued capital improvements and development costs

(9,861)

6,692

Issuance of operating partnership units for acquisitions

69,061

1,702

Operating Partnership units redeemed for common shares

1,260

1,804

Debt assumed at fair value in conjunction with real estate purchases

101,390

Note receivable extinguished in conjunction with real estate purchase

31,252

Equity method investment redeemed for real estate acquisition

23,011

$ 0

Noncontrolling interest in acquired real estate entity

4,870

Recognition of operating lease ROU assets

^[3]

33,525

Recognition of operating lease liabilities

^[3]

41,191

Recognition of finance lease ROU assets

24,500

Recognition of finance lease liabilities

$ 17,871

[1]

Borrower paid $5.0 million in exchange for the Company's purchase option. This is being accounted for as a loan modification fee; interest income is being recognized as additional interest income on the note receivable over the one-year remaining term. See Note 7 for additional discussion.

[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):



	June 30, 2019		June 30, 2018
Cash and cash equivalents	$	23,109	$	12,279
Restricted cash _(a)	2,852		3,139
Cash, cash equivalents, and restricted cash	$	25,961	$	15,418

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

[3]

Net of $0.4 million disposal related to the Company's preexisting lease at the Thames Street Wharf property acquired on June 26, 2019.

Condensed Consolidated Statements of Cash Flows - Footnotes (Parenthetical) $ in Thousands	Jun. 26, 2019 USD ($)
The Residences at Annapolis Junction
Disposal of lease assets	$ 400

Business of Organization	6 Months Ended
Business of Organization	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business of Organization	Business of Organization Armada Hoffler Properties, Inc. (the "Company") is a full service real estate company with extensive experience developing, building, owning, and managing high-quality, institutional-grade office, retail, and multifamily properties in attractive markets primarily throughout the Mid-Atlantic and Southeastern United States. The Company is a real estate investment trust ("REIT"), the sole general partner of Armada Hoffler, L.P. (the "Operating Partnership") and, as of June 30, 2019, owned 71.4% 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 of the Operating Partnership. As of June 30, 2019, the Company's property portfolio consisted of 54 operating properties and 8 properties either under development or not yet stabilized. Refer to Note 5 for information related to the Company's recent acquisitions and dispositions of operating properties.

Significant Accounting Policies	6 Months Ended
Significant Accounting Policies	Jun. 30, 2019
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 consolidated subsidiaries, including the Operating Partnership, its wholly-owned subsidiaries, and any interests in variable interest entities ("VIEs") where the Company has been determined to be the primary beneficiary. 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, 2018. 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. Recent Accounting Pronouncements Leases On February 25, 2016, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") that requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets (ASU 2016-02—Leases (Topic 842)). The new standard also makes targeted changes to lessor accounting. The Company adopted the new standard on January 1, 2019, using the modified retrospective approach for all leases existing at, or entered into after, the beginning of the earliest comparative period presented as permitted in Accounting Standards Codification ("ASC") Topic 842. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to not reassess whether any expired or existing contracts are or contain leases, not reassess the lease classification for any expired or existing leases, and not reassess initial direct costs for existing leases. As of January 1, 2019, Company did not have any leases classified as finance leases. The Company also elected a practical expedient that allowed it to not separate non-lease components from lease components and instead to account for each lease and non-lease component as a single lease component. The adoption of the new standard as of January 1, 2019 did not impact the Company's consolidated results of operations and had no impact on cash flows. As a lessee, the Company had six ground leases on five properties as of January 1, 2019 with initial terms that range from 20 to 65 years and options to extend up to an additional 70 years in certain cases. 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. The Company recognizes lease expense for operating leases on a straight-line basis over the lease term. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants. The long-term ground leases represent a majority of the Company's current operating lease payments. The Company recorded right-of-use assets totaling $32.2 million and lease liabilities totaling $41.4 million upon adopting this standard on January 1, 2019. The Company utilized a weighted average discount rate of 5.4% to measure its lease liabilities upon adoption. 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 15 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. The new standard includes new considerations regarding the recognition of rental revenue when collection is not probable. The Company changed its presentation and measurement of charges for uncollectable lease revenue associated with its office, retail, and residential leasing activity, reflecting those amounts as a component of rental income on the accompanying Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2019. However, in accordance with its prospective adoption of the standard, the Company did not adjust the prior year period presentation of charges for uncollectable lease revenue associated with its office, retail, and residential leasing activity as a component of operating expenses, excluding property taxes, on the accompanying Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2018. Instead, the Company recorded a combined adjustment of $0.2 million to the opening balances for distributions in excess of earnings and noncontrolling interest relating to receivables where collection of substantially all operating lease payments was not probable as of January 1, 2019. Lease-related receivables, which include contractual amounts accrued and unpaid from tenants and accrued straight-line rents receivable, are reduced for credit losses. Such amounts are recognized as a reduction to real estate rental revenues. The Company evaluates the collectability of lease receivables using several factors, including a lessee’s creditworthiness. The Company recognizes a credit loss on lease-related receivables when, in the opinion of management, collection of substantially all lease payments is not probable. When collectability is determined not probable, any lease income subsequent to recognizing the credit loss is limited to the lesser of the lease income reflected on a straight-line basis or cash collected. Credit losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance will replace the "incurred loss" approach under existing guidance with an "expected loss" model for instruments measured at amortized cost, such as our notes receivable. The guidance is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. While the Company is currently evaluating the impact ASU 2016-13 will have on the consolidated financial statements, the Company expects that the adoption could result in earlier recognition of a provision for loan losses on its notes receivable. Other Accounting Policies See the Company's Annual Report on Form 10-K for the year ended December 31, 2018 for a description of other accounting principles upon which basis the accompanying consolidated financial statements were prepared.

Segments

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segments

Net operating income (segment revenues minus segment expenses) is the measure used by the Company’s chief operating decision-maker to assess segment performance. Net operating income 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, net operating income should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate net operating income in the same manner. The Company considers net operating income 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 and construction businesses.

Net operating income of the Company’s reportable segments for the three and six months ended June 30, 2019 and 2018 was as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	(Unaudited)
Office real estate
Rental revenues	$	7,382	$	5,288	$	12,938	$	10,388
Rental expenses	1,853		1,430		3,339		2,876
Real estate taxes	653		502		1,179		1,004
Segment net operating income	4,876		3,356		8,420		6,508
Retail real estate
Rental revenues	19,235		16,608		36,492		33,319
Rental expenses	2,893		2,563		5,493		5,220
Real estate taxes	1,893		1,656		3,704		3,339
Segment net operating income	14,449		12,389		27,295		24,760
Multifamily residential real estate
Rental revenues	9,761		6,702		17,857		13,590
Rental expenses	3,281		2,529		5,920		4,850
Real estate taxes	905		577		1,696		1,205
Segment net operating income	5,575		3,596		10,241		7,535
General contracting and real estate services
Segment revenues	21,444		20,654		38,480		43,704
Segment expenses	20,123		20,087		36,409		42,501
Segment gross profit	1,321		567		2,071		1,203
Net operating income	$	26,221	$	19,908	$	48,027	$	40,006

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 June 30, 2019 and 2018 exclude revenue related to intercompany construction contracts of $30.0 million and $34.2 million, respectively. General contracting and

real estate services revenues for the six months ended June 30, 2019 and 2018 exclude revenue related to intercompany construction contracts of $60.2 million and $60.1 million, respectively.

General contracting and real estate services expenses for the three months ended June 30, 2019 and 2018 exclude expenses related to intercompany construction contracts of $29.7 million and $33.9 million, respectively. General contracting and real estate services expenses for the six months ended June 30, 2019 and 2018 exclude expenses related to intercompany construction contracts of $59.6 million and $59.5 million, respectively.

The following table reconciles net operating income to net income, the most directly comparable GAAP measure, for the three and six months ended June 30, 2019 and 2018 (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
	(Unaudited)
Net operating income	$	26,221		$	19,908		$	48,027		$	40,006
Depreciation and amortization	(13,478		)	(9,179		)	(23,382		)	(18,457		)
General and administrative expenses	(2,951		)	(2,764		)	(6,352		)	(5,725		)
Acquisition, development, and other pursuit costs	(57		)	(9		)	(457		)	(93		)
Impairment charges	—			(98		)	—			(98		)
Interest income	5,593			2,375			10,912			4,607
Interest expense	(7,603		)	(4,497		)	(13,489		)	(8,870		)
Equity in income of unconsolidated real estate entities	—			—			273			—
Change in fair value of interest rate derivatives	(1,933		)	(11		)	(3,396		)	958
Other income	4			54			64			168
Income tax benefit	30			166			140			432
Net income	$	5,826		$	5,945		$	12,340		$	12,928

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

Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

Lessee Disclosures

The components of lease cost for the three and six months ended June 30, 2019 were as follows (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(Unaudited)
Operating lease cost	$	707	1,395
Finance lease cost:
Amortization of right-of-use assets	$	77	77
Interest on lease liabilities	$	112	112

The table below presents supplemental cash flow information related to leases during the three and six months ended June 30, 2019 (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(Unaudited)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	524	$	1,024
Operating cash flows from finance leases	111		111
Financing cash flows from finance leases	—		—

Additional information related to leases as of June 30, 2019 were as follows (in thousands):



	June 30, 2019
	(Unaudited)
Weighted Average Remaining Lease Term (years)
Operating leases	45.9
Finance leases	41.7

Weighted Average Discount Rate
Operating leases	5.4	%
Finance leases	5.2	%

Maturities of lease liabilities as of June 30, 2019 were as follows (in thousands):



Year Ending December 31,	Operating Leases			Finance Leases
2019 (excluding six months ended June 30, 2019)	$	954		$	422
2020	2,080			864
2021	2,137			864
2022	2,361			868
2023	2,400			873
Thereafter	105,961			43,902
Total lease liabilities	115,893			47,793
Less imputed interest	(74,593		)	(29,931		)
Present value of lease liabilities	$	41,300		$	17,862

Lessor Disclosures

Rental revenue for the three and six months ended June 30, 2019 comprised the following (in thousands):



	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
	(Unaudited)
Base rent and tenant charges	$	35,066		$	64,990
Accrued straight-line rental adjustment	1,187			2,148
Lease incentive amortization	(184		)	(367		)
Above/below market lease amortization	309			516
Total rental revenue	$	36,378		$	67,287

The Company's commercial tenant leases provide for minimum rental payments during each of the next five years and thereafter as follows (in thousands):



Year Ending December 31,	Operating Leases
2019 (excluding six months ended June 30, 2019)	$	48,504
2020	91,957
2021	84,332
2022	77,113
2023	67,302
Thereafter	314,422
Total	$	683,630

Leases

Lessee Disclosures

The components of lease cost for the three and six months ended June 30, 2019 were as follows (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(Unaudited)
Operating lease cost	$	707	1,395
Finance lease cost:
Amortization of right-of-use assets	$	77	77
Interest on lease liabilities	$	112	112

The table below presents supplemental cash flow information related to leases during the three and six months ended June 30, 2019 (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(Unaudited)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	524	$	1,024
Operating cash flows from finance leases	111		111
Financing cash flows from finance leases	—		—

Additional information related to leases as of June 30, 2019 were as follows (in thousands):



	June 30, 2019
	(Unaudited)
Weighted Average Remaining Lease Term (years)
Operating leases	45.9
Finance leases	41.7

Weighted Average Discount Rate
Operating leases	5.4	%
Finance leases	5.2	%

Maturities of lease liabilities as of June 30, 2019 were as follows (in thousands):



Year Ending December 31,	Operating Leases			Finance Leases
2019 (excluding six months ended June 30, 2019)	$	954		$	422
2020	2,080			864
2021	2,137			864
2022	2,361			868
2023	2,400			873
Thereafter	105,961			43,902
Total lease liabilities	115,893			47,793
Less imputed interest	(74,593		)	(29,931		)
Present value of lease liabilities	$	41,300		$	17,862

Lessor Disclosures

Rental revenue for the three and six months ended June 30, 2019 comprised the following (in thousands):



	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
	(Unaudited)
Base rent and tenant charges	$	35,066		$	64,990
Accrued straight-line rental adjustment	1,187			2,148
Lease incentive amortization	(184		)	(367		)
Above/below market lease amortization	309			516
Total rental revenue	$	36,378		$	67,287

The Company's commercial tenant leases provide for minimum rental payments during each of the next five years and thereafter as follows (in thousands):



Year Ending December 31,	Operating Leases
2019 (excluding six months ended June 30, 2019)	$	48,504
2020	91,957
2021	84,332
2022	77,113
2023	67,302
Thereafter	314,422
Total	$	683,630

Leases

Lessee Disclosures

The components of lease cost for the three and six months ended June 30, 2019 were as follows (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(Unaudited)
Operating lease cost	$	707	1,395
Finance lease cost:
Amortization of right-of-use assets	$	77	77
Interest on lease liabilities	$	112	112

The table below presents supplemental cash flow information related to leases during the three and six months ended June 30, 2019 (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(Unaudited)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	524	$	1,024
Operating cash flows from finance leases	111		111
Financing cash flows from finance leases	—		—

Additional information related to leases as of June 30, 2019 were as follows (in thousands):



	June 30, 2019
	(Unaudited)
Weighted Average Remaining Lease Term (years)
Operating leases	45.9
Finance leases	41.7

Weighted Average Discount Rate
Operating leases	5.4	%
Finance leases	5.2	%

Maturities of lease liabilities as of June 30, 2019 were as follows (in thousands):



Year Ending December 31,	Operating Leases			Finance Leases
2019 (excluding six months ended June 30, 2019)	$	954		$	422
2020	2,080			864
2021	2,137			864
2022	2,361			868
2023	2,400			873
Thereafter	105,961			43,902
Total lease liabilities	115,893			47,793
Less imputed interest	(74,593		)	(29,931		)
Present value of lease liabilities	$	41,300		$	17,862

Lessor Disclosures

Rental revenue for the three and six months ended June 30, 2019 comprised the following (in thousands):



	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
	(Unaudited)
Base rent and tenant charges	$	35,066		$	64,990
Accrued straight-line rental adjustment	1,187			2,148
Lease incentive amortization	(184		)	(367		)
Above/below market lease amortization	309			516
Total rental revenue	$	36,378		$	67,287

The Company's commercial tenant leases provide for minimum rental payments during each of the next five years and thereafter as follows (in thousands):



Year Ending December 31,	Operating Leases
2019 (excluding six months ended June 30, 2019)	$	48,504
2020	91,957
2021	84,332
2022	77,113
2023	67,302
Thereafter	314,422
Total	$	683,630

Real Estate Investment

6 Months Ended

Jun. 30, 2019

Real Estate [Abstract]

Real Estate Investment

Property Acquisitions

On February 6, 2019, the Company acquired an additional outparcel phase of Wendover Village in Greensboro, North Carolina for a contract price of $2.7 million plus capitalized acquisition costs of $0.1 million. This phase is leased by a single tenant.

On March 14, 2019, the Company acquired the office and retail portions of the One City Center project in exchange for a redemption of its 37% equity ownership in the joint venture with Austin Lawrence Partners, which totaled $23.0 million as of the acquisition date, and a cash payment of $23.2 million. The Company also incurred capitalized acquisition costs of $0.1 million.

On April 24, 2019, the Company exercised its option to purchase 79% of the interests in the partnership that owns 1405 Point in exchange for extinguishing the Company's $31.3 million note receivable on the project, making a cash payment of $0.3 million, and assuming a loan payable of $64.9 million, which was recorded at its fair value of $65.8 million. The Company also incurred capitalized acquisition costs of $0.1 million.

On May 23, 2019, the Company acquired Red Mill Commons and Marketplace at Hilltop from Venture Realty Group for consideration comprised of 4.1 million Class A Units (as defined in Note 11), the assumption of $35.7 million of mortgage debt principal, and $4.5 million in cash. The negotiated price was $105.0 million, which contemplated the price of the Company's common stock of $15.55 per share when the purchase and sale agreement was executed. The aggregate acquisition cost was $109.3 million, which consisted of 4.1 million Class A Units valued at $68.1 million (using the price of the Company's common stock of $16.50 on the date of the acquisition), mortgage debt valued at $35.6 million, cash consideration of $4.5 million, and capitalized acquisition costs of $1.1 million. In connection with the acquisition, the Company and the Operating Partnership entered into a tax protection agreement with the contributors pursuant to which the Company and the Operating Partnership agreed, subject to certain exceptions, to indemnify the contributors for up to 10 years against certain tax liabilities incurred by them, if such liabilities result from a transaction involving a direct or indirect taxable disposition of either or both of these properties or if the Operating Partnership fails to maintain and allocate to the contributors for taxation purposes minimum levels of Operating Partnership liabilities.

On June 26, 2019, the Company acquired Thames Street Wharf, a class A office building located in the Harbor Point development of Baltimore, Maryland, for $101.0 million in cash and $0.3 million of capitalized acquisition costs.

The following table summarizes the purchase price allocation (including acquisition costs) based on relative fair value of the assets acquired and intangible liabilities assumed for the six operating properties purchased during the six months ended June 30, 2019 (in thousands):



	Wendover Village additional outparcel		One City Center		1405 Point				Red Mill Commons			Marketplace at Hilltop				Thames Street Wharf
Land	$	1,633	$	2,678	$	—		(a)	$	44,252		$	2,023		(b)	$	15,861
Site improvements	50		163		298				2,558			691				150
Building and improvements	888		28,039		92,866				27,790			19,195				64,539
Furniture and fixtures	—		—		2,302				—			—				—
In-place leases	101		15,140		3,371				9,973			4,565				24,385
Above-market leases	111		—		—				1,463			599				—
Below-market leases	—		—		—				(6,221		)	(1,136		)		(3,636		)
Finance lease liabilities	—		—		(8,671		)		—			(9,200		)		—
Finance lease right-of-use assets	—		—		11,730				—			12,770				—
Net assets acquired	$	2,783	$	46,020	$	101,896			$	79,815		$	29,507			$	101,299

________________________________________

(a) Land is subject to a ground lease.

(b) Portion of land is subject to a ground lease.

Property Disposition

On April 1, 2019, the Company sold Waynesboro Commons for a sale price of $1.1 million. There was no gain or loss recognized on the disposition.

Subsequent to June 30, 2019

On July 17, 2019, the Company executed an agreement to sell Lightfoot Marketplace for $30.3 million and classified the property as held for sale at that time.

Equity Method Investment	6 Months Ended
Equity Method Investment	Jun. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investment	Equity Method Investment One City Center On February 25, 2016, the Company acquired a 37% interest in One City Center, a joint venture with Austin Lawrence Partners, for purposes of developing a 22-story mixed use tower in Durham, North Carolina. During the six months ended June 30, 2019, the Company invested an additional $0.5 million in One City Center. For the period from January 1, 2019 to March 13, 2019, One City Center had operating income of $0.3 million allocated to the Company. For the three and six months ended June 30, 2018, One City Center had no operating activity, and therefore the Company received no allocated income. On March 14, 2019, the Company acquired the office and retail portions of the One City Center project in exchange for its 37% equity ownership in the joint venture and a cash payment of $23.2 million. See Note 5 for additional discussion.

Notes Receivable

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Notes Receivable

The Company had the following notes receivable outstanding as of June 30, 2019 and December 31, 2018 ($ in thousands):



	Outstanding loan amount						Maximum loan commitment		Interest rate		Interest compounding
Development Project	June 30, 2019			December 31, 2018			Maximum loan commitment		Interest rate		Interest compounding
1405 Point	$	—		$	30,238		$	31,032	8.0	%	Monthly
The Residences at Annapolis Junction	37,602			36,361			48,105		10.0	%	Monthly
North Decatur Square ^(a)	19,852			18,521			29,673		15.0	%	Annually
Delray Plaza	12,098			7,032			15,000		15.0	%	Annually
Nexton Square	14,168			14,855			17,000		15.0	%	Monthly
Interlock Commercial	38,062			18,269			95,000		15.0	%	None
Solis Apartments at Interlock	17,226			13,821			41,100		13.0	%	Annually
Total mezzanine	139,008			139,097			$	276,910
Other notes receivable	1,314			1,275
Notes receivable guarantee premium	6,554			2,800
Notes receivable discount, net ^(b)	(2,133		)	(4,489		)
Total notes receivable	$	144,743		$	138,683

_______________________________________

(a) This loan was paid in full on July 22, 2019.

(b) Represents the remaining unamortized portion of the $5.0 million loan modification fee for The Residences at Annapolis Junction paid by the borrower in November 2018.

Interest on the mezzanine loans 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 added to the loan receivable balances. The Company recognized interest income for the three and six months ended June 30, 2019 and 2018 as follows (in thousands):



	Three Months Ended June 30,					Six Months Ended June 30,
Development Project	2019			2018		2019			2018
1405 Point	$	173		$	483	$	783		$	936
The Residences at Annapolis Junction	2,173		(a)	1,124		4,196		(a)	2,209
North Decatur Square	693			531		1,331			992
Delray Plaza	414			225		724			448
Nexton Square	524			—		1,033			—
Interlock Commercial	1,086			—		1,830			—
Solis Apartments at Interlock	508			—		972			—
Total mezzanine	5,571			2,363		10,869			4,585
Other interest income	22			12		43			22
Total interest income	$	5,593		$	2,375	$	10,912		$	4,607

________________________________________

(a) Includes amortization of the $5.0 million loan modification fee paid by the borrower in November 2018.

As of June 30, 2019 and December 31, 2018, there was no allowance for loan losses. During the three and six months ended June 30, 2019 and 2018, there was no provision for loan losses recorded for any of the Company's notes receivable. The Company's management performs a quarterly analysis of the loan portfolio to determine if an impairment has occurred based on the progress of development activities including leasing activities, projected development costs, and current and projected mezzanine and senior construction loan balances.

Delray Plaza

On January 8, 2019, the Delray Plaza loan was modified to increase the maximum amount of the loan to $15.0 million and

increase the payment guarantee amount to $5.2 million.

Nexton Square

On February 8, 2019, the developer of Nexton Square closed on a senior construction loan with a maximum borrowing capacity of $25.2 million. The developer used proceeds from its original draw in part to repay $2.1 million of the mezzanine loan. Upon the closing of this senior construction loan, the Company entered into a payment guarantee for $12.6 million of the senior loan.

1405 Point

On April 24, 2019, the Company exercised its option to purchase 79% of the interests in the partnership that owns 1405 Point in exchange for extinguishing its note receivable on the project and a cash payment of $0.3 million. The project is subject to a loan payable of $64.9 million. The Company has also guaranteed payment on a portion of the loan payable. See Note 15 for additional information.

Interlock Commercial

On April 19, 2019, the borrower executed its senior construction loan, and the Company's payment guarantee of up to $30.7 million became effective. See Note 15 for additional information.

Annapolis Junction

The Annapolis Junction loan was originated inclusive of options for the Company to purchase up to 88% of the related development project from the developer, Annapolis Junction Apartments Owner, LLC (“AJAO”). On November 16, 2018, AJAO refinanced the senior construction loan with a one year senior loan of $83.0 million. This senior loan may be extended for one additional year if certain minimum debt yields and minimum debt service coverage ratios are met by AJAO. Concurrent with the refinancing of the senior construction loan, the Company agreed to modify the mezzanine loan receivable with AJAO as follows:

•The Company agreed to guarantee $8.3 million of the new senior loan;

•The Company agreed to extend the maturity of the mezzanine loan, which will mature concurrently with the new senior loan;

•The Company terminated its rights under the purchase options;

•AJAO paid a fee of $5.0 million; and

•AJAO paid down $11.1 million of the outstanding mezzanine loan balance, which was comprised of a $9.9 million payment of accrued interest and a $1.2 million payment of principal.

The fee of $5.0 million paid by AJAO is being accounted for as a loan discount that is being recognized as interest income over the remaining term of the loan using the effective interest method.

Subsequent to June 30, 2019

On July 22, 2019, the borrower paid off the North Decatur Square note receivable in full. The Company received the outstanding principal and interest in the amount of $20.0 million.

Construction Contracts

6 Months Ended

Jun. 30, 2019

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 June 30, 2019 during the next twelve months.

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

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 six months ended June 30, 2019 and 2018 (in thousands):



	Six Months Ended June 30, 2019						Six Months Ended June 30, 2018
	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	$	1,358		$	3,037		$	245		$	3,591
Revenue recognized that was included in the balance at the beginning of the period	—			(3,037		)	—			(3,591		)
Increases due to new billings, excluding amounts recognized as revenue during the period	—			2,541			—			1,898
Transferred to receivables	(1,890		)	—			(245		)	—
Construction contract costs and estimated earnings not billed during the period	461			—			1,287			—
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	532			(752		)	—			(187		)
Ending balance	$	461		$	1,789		$	1,287		$	1,711

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 $0.7 million and $1.4 million were deferred as of June 30, 2019 and December 31, 2018, respectively. Amortization of pre-contract costs for the six months ended June 30, 2019 and 2018 was $0.3 million and zero, respectively.

Construction receivables and payables include retentions, amounts that are generally withheld until the completion of the contract or the satisfaction of certain restrictive conditions such as fulfillment guarantees. As of June 30, 2019 and December 31, 2018, construction receivables included retentions of $3.2 million and $8.5 million, respectively. The Company expects to collect substantially all construction receivables as of June 30, 2019 during the next twelve months. As of June 30, 2019 and December 31, 2018, construction payables included retentions of $14.7 million and $21.6 million, respectively. The Company expects to pay substantially all construction payables as of June 30, 2019 during the next twelve months.

The Company’s net position on uncompleted construction contracts comprised the following as of June 30, 2019 and December 31, 2018 (in thousands):



	June 30, 2019			December 31, 2018
Costs incurred on uncompleted construction contracts	$	630,425		$	594,006
Estimated earnings	22,383			20,375
Billings	(654,136		)	(616,060		)
Net position	$	(1,328	)	$	(1,679	)

Construction contract costs and estimated earnings in excess of billings	$	461		$	1,358
Billings in excess of construction contract costs and estimated earnings	(1,789		)	(3,037		)
Net position	$	(1,328	)	$	(1,679	)

The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of June 30, 2019 and 2018 were as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Beginning backlog	$	160,871		$	30,733		$	165,863		$	49,167
New contracts/change orders	39,177			27,807			51,196			32,376
Work performed	(21,416		)	(20,619		)	(38,427		)	(43,622		)
Ending backlog	$	178,632		$	37,921		$	178,632		$	37,921

The Company expects to complete a majority of the uncompleted contracts as of June 30, 2019 during the next 12 to 18 months.

Indebtedness

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Indebtedness

Credit Facility

The Company has a senior credit facility that was modified on January 31, 2019 using the accordion feature to increase the maximum total commitments to $355.0 million, comprised of a $150.0 million senior unsecured revolving credit facility (the "revolving credit facility") and a $205.0 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 further increased to $450.0 million, subject to certain conditions, including obtaining commitments from any one or more lenders. The revolving credit facility has a scheduled maturity date of October 26, 2021, with two six-month extension options, subject to certain conditions, including payment of a 0.075% extension fee at each extension. The term loan facility has a scheduled maturity date of October 26, 2022.

The revolving credit facility bears interest at LIBOR (the London Inter-Bank Offered Rate) plus a margin ranging from 1.40% to 2.00% and the term loan facility bears interest at LIBOR plus a margin ranging from 1.35% to 1.95%, 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 credit facility.

As of June 30, 2019 and December 31, 2018, the outstanding balance on the revolving credit facility was $122.0 million and $126.0 million, respectively, and the outstanding balance on the term loan facility was $205.0 million and $180.0 million, respectively. As of June 30, 2019, the effective interest rates on the revolving credit facility and the term loan facility were 3.95% and 3.90%, respectively. The Company 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 under the credit facility, 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.

The Company is currently in compliance with all covenants under the credit agreement.

Other 2019 Financing Activity

On January 31, 2019, the Company paid off North Point Center Note 1.

On March 11, 2019, the Company received $7.4 million of additional funding on the loan secured by Lightfoot Marketplace.

On March 14, 2019, the Company obtained a loan secured by One City Center in the amount of $25.6 million in conjunction with the acquisition of this property. This loan may be increased to $27.6 million subject to certain conditions.

The loan bears interest at a rate of LIBOR plus a spread of 1.85% and will mature on April 1, 2024.

On April 24, 2019, the Company exercised its option to purchase 79% of the partnership that owns 1405 Point in exchange for extinguishing its note receivable on the project and a cash payment of $0.3 million. The project was acquired subject to a loan payable of $64.9 million, which was recorded at its fair value of $65.8 million. The loan matures on May 1, 2020 and bears interest at a rate of LIBOR plus a spread of 2.75%; this spread will decrease to 2.50% upon stabilization (as defined in the loan agreement).

On May 23, 2019, the Company assumed notes payable in connection with the acquisition of Red Mill Commons and Marketplace at Hilltop with outstanding principal balances of $24.9 million and $10.8 million, respectively. The following table summarizes the note balance at assumption, fair value at assumption, maturity date, and interest rate for each loan ($ in thousands):



Loan name	Note balance at assumption		Fair value of loan at assumption		Loan maturity date	Loan interest rate
Redmill North	$	4,451	$	4,520	12/31/2028	4.73	%
Redmill South	6,310		6,090		5/1/2025	3.57	%
Redmill Central	2,640		2,690		6/17/2024	4.80	%
Redmill West	11,548		11,540		6/1/2022	4.23	%
Marketplace at Hilltop	10,740		10,790		10/1/2022	4.42	%
	$	35,689	$	35,630

On June 26, 2019, the Company obtained a loan secured by Thames Street Wharf in the amount of $70.0 million in conjunction with the acquisition of this property. The loan bears interest at a rate of LIBOR plus a spread of 1.30% and will mature on June 26, 2022.

On June 26, 2019, the Company entered into a $76.0 million syndicated construction loan facility for the Wills Wharf development project in Baltimore, Maryland. The facility bears interest at a rate of LIBOR plus a spread of 2.25% during construction activities and will mature on June 26, 2023. The facility will have an unused commitment fee of 25 basis points until the Company has borrowed at least $19.0 million under the facility.

During the six months ended June 30, 2019, the Company borrowed $50.3 million under its existing construction loans to fund new development and construction.

Subsequent to June 30, 2019

In July 2019, the Company borrowed $5.4 million on its construction loans to fund development activities.

Derivative Financial Instruments

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

The Company may enter 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 interest rate derivatives 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 June 30, 2019, the Company had the following LIBOR interest rate caps ($ in thousands), which are not designated as cash flow hedges for accounting purposes:



Origination Date	Expiration Date	Notional Amount		Strike Rate		Premium Paid
6/23/2017	7/1/2019	$	50,000	1.50	%	$	154
9/18/2017	10/1/2019	50,000		1.50	%	199
11/28/2017	12/1/2019	50,000		1.50	%	359
3/7/2018	4/1/2020	50,000		2.25	%	310
7/16/2018	8/1/2020	50,000		2.50	%	319
12/11/2018	1/1/2021	50,000		2.75	%	210
5/15/2019	6/1/2022	100,000		2.50	%	288
Total		$	400,000			$	1,839

As of June 30, 2019, 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	$	50,000		1-month LIBOR	2.00	%	3.50	%	3/1/2016	2/20/2020
Senior unsecured term loan	50,000			1-month LIBOR	2.78	%	4.28	%	5/1/2018	5/1/2023
John Hopkins Village	52,256		(a)	1-month LIBOR	2.94	%	4.19	%	8/7/2018	8/7/2025
Lightfoot Marketplace	10,500		(a)	1-month LIBOR	3.02	%	4.77	%	10/12/2018	10/12/2023
249 Central Park Retail, South Retail, and Fountain Plaza Retail	34,570		(a)	1-month LIBOR	2.25	%	3.85	%	4/1/2019	8/10/2023
Senior unsecured term loan	50,000		(a)	1-month LIBOR	2.26	%	3.76	%	4/1/2019	10/22/2022
Total	$	247,326

________________________________________

(a) Designated as a cash flow hedge.

For those interest rate swaps designated as cash flow hedges, during the three months ended June 30, 2019, unrealized losses of $3.5 million were recorded to other comprehensive loss, and less than $0.1 million of realized losses were reclassified out of accumulated other comprehensive loss to interest expense due to payments made to the swap counterparty during the three months ended June 30, 2019. For the interest rate swaps designated as cash flow hedges, during the six months ended June 30, 2019, unrealized losses of $4.5 million were recorded to other comprehensive loss, and $0.1 million of realized losses were reclassified out of accumulated other comprehensive loss to interest expense due to payments made to the swap counterparty. During the next 12 months, the Company anticipates reclassifying approximately $1.1 million of net hedging losses from accumulated other comprehensive loss into earnings to offset the variability of the hedged items during this period.

The Company’s derivatives were comprised of the following as of June 30, 2019 and December 31, 2018 (in thousands):



	June 30, 2019							December 31, 2018
	(Unaudited)
	Notional Amount		Fair Value					Notional Amount		Fair Value
			Asset		Liability					Asset		Liability
Derivatives not designated as accounting hedges
Interest rate swaps	$	100,000	$	—	$	(2,186	)	$	100,000	$	303	$	(749	)
Interest rate caps	400,000		422		—			350,000		1,790		—
Total derivatives not designated as accounting hedges	500,000		422		(2,186		)	450,000		2,093		(749		)
Derivatives designated as accounting hedges
Interest rate swaps	147,326		—		(6,080		)	63,208		—		(1,725		)
Total derivatives	$	647,326	$	422	$	(8,266	)	$	513,208	$	2,093	$	(2,474	)

The changes in the fair value of the Company’s derivatives during the three and six months ended June 30, 2019 and 2018 were comprised of the following (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Interest rate swaps	$	(4,549	)	$	5		$	(6,201	)	$	353
Interest rate caps	(843		)	(16		)	(1,657		)	605
Total change in fair value of interest rate derivatives	$	(5,392	)	$	(11	)	$	(7,858	)	$	958
Comprehensive income statement presentation:
Change in fair value of interest rate derivatives	$	(1,933	)	$	(11	)	$	(3,396	)	$	958
Unrealized cash flow hedge gains losses	(3,459		)	—			$	(4,462	)	$	—
Total change in fair value of interest rate derivatives	$	(5,392	)	$	(11	)	$	(7,858	)	$	958

Equity

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Equity

Stockholders’ Equity

On February 26, 2018, 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 having an aggregate offering price of up to $125.0 million. During the six months ended June 30, 2019, the Company sold an aggregate of 2,522,186 shares of common stock at a weighted average price of $15.16 per share under the ATM Program, receiving net proceeds, after offering costs and commissions, of $37.8 million.

On June 18, 2019, the Company issued 2,530,000 shares of its 6.75% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share ("Series A Preferred Stock"), with a liquidation preference of $25.00 per share, which included 330,000 shares issued upon the underwriters’ full exercise of their option to purchase additional shares. Net proceeds from the offering, after the underwriting discount but before offering expenses payable by the Company, were approximately $61.3 million. The Company used the net proceeds to fund a portion of the purchase price of Thames Street Wharf, a 263,426 square foot office building located in the Harbor Point neighborhood of Baltimore, Maryland. The balance of the net proceeds was used to repay a portion of the outstanding borrowings under the Company’s unsecured revolving credit facility and for general corporate purposes.

In connection with the issuance of the Series A Preferred Stock, on June 18, 2019, the Operating Partnership issued to the Company 2,530,000 6.75% Series A Cumulative Redeemable Perpetual Preferred Units (the "Series A Preferred Units"), which have economic terms that are identical to the Company’s Series A Preferred Stock. The Series A Preferred Units were issued in exchange for the Company’s contribution of the net proceeds from the offering of the Series A Preferred Stock to the Operating Partnership.

Dividends on the Series A Preferred Stock will be payable quarterly in arrears on or about the 15th day of each January, April, July and October. The first dividend on the Series A Preferred Stock will be paid on October 15, 2019 and will include $0.0609 per share that was accumulated and unpaid as of June 30, 2019. The Series A Preferred Stock does not have a stated maturity date and is not subject to any sinking fund or mandatory redemption provisions. Upon liquidation, dissolution or winding up, the Series A Preferred Stock will rank senior to the Company's common stock with respect to the payment of distributions and other amounts. Except in instances relating to preservation of the Company's qualification as a REIT or pursuant to the Company’s special optional redemption right, the Series A Preferred Stock is not redeemable prior to June 18, 2024. On and after June 18, 2024, the Company may, at its option, redeem the Series A Preferred Stock, in whole, at any time, or in part, from time to time, for cash at a redemption price of $25.00 per share, plus any accrued and unpaid dividends (whether or not declared) to, but excluding, the redemption date.

Upon the occurrence of a change of control (as defined in the articles supplementary designating the terms of the Series A Preferred Stock), the Company has a special optional redemption right that enables it to redeem the Series A Preferred Stock, in whole or in part and within 120 days after the first date on which a change of control has occurred resulting in neither the Company nor the surviving entity having a class of common stock listed on the NYSE, NYSE American, or NASDAQ or the acquisition of beneficial ownership of its stock entitling a person to exercise more than 50% of the total voting power of all our stock entitled to vote generally in election of directors. The special optional redemption price is $25.00 per share, plus any accrued and unpaid dividends (whether or not declared) to, but excluding, the date of redemption.

Upon the occurrence of a change of control, holders will have the right (unless the Company has elected to exercise its

special optional redemption right to redeem their Series A Preferred Stock) to convert some or all of such holder’s Series A

Preferred Stock into a number of shares of the Company's common stock equal to the lesser of:

•

the quotient obtained by dividing (i) the sum of the $25.00 liquidation preference plus the amount of any accrued and unpaid distributions to, but not including, the change of control conversion date (unless the change of control conversion date is after a record date for a Series A Preferred Stock distribution payment and prior to the corresponding Series A Preferred Stock distribution payment date, in which case no additional amount for such accrued and unpaid distribution will be included in this sum) by (ii) the Common Stock Price (as defined in the articles supplementary designating the terms of the Series A Preferred Stock); and


•	2.97796 (i.e., the Share Cap), subject to certain adjustments;

subject, in each case, to certain adjustments and provisions for the receipt of alternative consideration of equivalent value as described in the articles supplementary designating the terms of the Series A Preferred Stock.

Noncontrolling Interests

As of June 30, 2019 and December 31, 2018, the Company held a 71.4% and 74.5% common interest, respectively, in the Operating Partnership. As of June 30, 2019, the Company also held a preferred interest in the Operating Partnership in the form of preferred units with a liquidation preference of $63.3 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 71.4% 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 June 30, 2019, there were 21,177,692 Class A units of limited partnership interest in the Operating Partnership ("Class A 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 investment entities included $4.6 million related to the minority partner's interest in 1405 Point as of June 30, 2019. The noncontrolling interest for all other consolidated real estate entities was zero as of June 30, 2019 and December 31, 2018.

On January 2, 2019, due to the holders of Class A Units tendering an aggregate of 118,471 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.

On May 23, 2019, the Operating Partnership issued 4,125,759 Class A Units valued at $68.1 million in connection with the acquisition of Red Mill Commons and Marketplace at Hilltop.

On May 30, 2019, the Operating Partnership issued 60,000 Class A Units valued at $1.0 million in exchange for the remaining 35% ownership interest in Brooks Crossing Office, which was previously owned by Tidewater Partners.

Common Stock Dividends and Class A Unit Distributions

On January 3, 2019, the Company paid cash dividends of $10.0 million to common stockholders, and the Operating Partnership paid cash distributions of $3.4 million to holders of Class A Units.

On April 4, 2019, the Company paid cash dividends of $11.0 million to common stockholders, and the Operating Partnership paid cash distributions of $3.6 million to holders of Class A Units.

On May 7, 2019, the Board of Directors declared a cash dividend and distribution of $0.21 per share and unit payable on July 3, 2019 to stockholders and unitholders of record on June 26, 2019.

Subsequent to June 30, 2019

On July 1, 2019, due to the holders of Class A Units tendering an aggregate of 125,118 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.

On July 3, 2019, the Company paid cash dividends of $11.1 million to common stockholders, and the Operating Partnership paid cash distributions of $4.4 million to holders of Class A Units.

In July 2019, the Company sold an aggregate of 62,823 shares of common stock at a weighted average price of $16.84 per share under the ATM Program, receiving net proceeds, after offering costs and commissions, of $1.0 million.

Stock-Based Compensation	6 Months Ended
Stock-Based Compensation	Jun. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company’s Amended and Restated 2013 Equity Incentive Plan (the "Equity Plan") permits the grant of restricted stock awards, stock options, stock appreciation rights, performance units, and other equity-based awards up to an aggregate of 1,700,000 shares of common stock. As of June 30, 2019, there were 895,257 shares available for issuance under the Equity Plan. During the six months ended June 30, 2019, the Company granted an aggregate of 152,292 shares of restricted stock to employees and non-employee directors with a weighted average grant date fair value of $15.39 per share. 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. Non-employee director restricted stock awards vest either immediately upon grant or over a period of one year, subject to continued service to the Company. Unvested restricted stock awards are entitled to receive dividends from their grant date. During the six months ended June 30, 2019, the Company issued performance-based awards in the form of restricted stock units to certain employees. The performance period for these awards is three years, with a required two-year service period immediately following the expiration of the performance period in order to fully vest. The compensation expense and the effect on the Company’s weighted average diluted shares calculation were immaterial. During the six months ended June 30, 2019, 10,755 shares were issued with a grant date fair value of $15.42 per share due to the partial vesting of performance units awarded to certain employees in 2016. During the three months ended June 30, 2019 and 2018, the Company recognized $0.5 million and $0.4 million, respectively, of stock-based compensation cost. During the six months ended June 30, 2019 and 2018, the Company recognized $1.5 million and $1.2 million, respectively, of stock-based compensation cost. As of June 30, 2019, there were 144,426 nonvested restricted shares outstanding; the total unrecognized compensation expense related to nonvested restricted shares was $1.5 million, which the Company expects to recognize over the next 21 months.

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2019

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 June 30, 2019 and December 31, 2018 were as follows (in thousands):



	June 30, 2019				December 31, 2018
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(Unaudited)
Indebtedness	$	949,345	$	952,641	$	694,239	$	688,437
Notes receivable	144,743		144,743		138,683		138,683
Interest rate swap liabilities	8,266		8,266		2,474		2,474
Interest rate swap and cap assets	422		422		2,093		2,093

- 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

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company provides general contracting and real estate services to certain related party entities that are included in these condensed consolidated financial statements. Revenue from construction contracts with these entities for the three months ended June 30, 2018 was $0.3 million, and gross profit from such contracts was $0.1 million. Revenue from construction contracts with related party entities for the six months ended June 30, 2018 was $1.5 million, and gross profit from such contracts was $0.3 million. There was no such revenue or gross profit for the three and six months ended June 30, 2019. Real estate services fees from affiliated entities of the Company were not significant for the three and six months ended June 30, 2019 or 2018. In addition, affiliated entities also reimburse the Company for monthly maintenance and facilities management services provided to the properties. Cost reimbursements earned by the Company from affiliated entities were not significant for the three and six months ended June 30, 2019 and 2018. The Operating Partnership entered into tax protection agreements that indemnify certain directors and executive officers of the Company from their tax liabilities resulting from the potential future sale of certain of the Company’s properties within seven (or, in a limited number of cases, ten) years of the completion of the Company’s initial public offering and formation transactions completed on May 13, 2013.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

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 the Company's mezzanine lending activities, the Company has made guarantees to pay portions of certain senior loans of third parties associated with the development projects. The following table summarizes the guarantees made by the Company as of June 30, 2019 (in thousands):



Development project	Payment guarantee amount
The Residences at Annapolis Junction	$	8,300
Delray Plaza	5,180
Nexton Square	12,600
Interlock Commercial	30,654
Total	$	56,734

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 $29.0 million and $34.8 million as of June 30, 2019 and December 31, 2018, respectively.

The Company has entered into standby letters of credit using the available capacity under the credit facility. The letters of credit relate to the guarantee of future performance on certain of the Company’s construction contracts. Letters of credit generally are available for draw down in the event the Company does not perform. As of June 30, 2019 and December 31, 2018, the Operating Partnership had total outstanding letters of credit of $0.3 million and $2.1 million, respectively.

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2019
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 consolidated subsidiaries, including the Operating Partnership, its wholly-owned subsidiaries, and any interests in variable interest entities ("VIEs") where the Company has been determined to be the primary beneficiary. 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, 2018.
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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Leases On February 25, 2016, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") that requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets (ASU 2016-02—Leases (Topic 842)). The new standard also makes targeted changes to lessor accounting. The Company adopted the new standard on January 1, 2019, using the modified retrospective approach for all leases existing at, or entered into after, the beginning of the earliest comparative period presented as permitted in Accounting Standards Codification ("ASC") Topic 842. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to not reassess whether any expired or existing contracts are or contain leases, not reassess the lease classification for any expired or existing leases, and not reassess initial direct costs for existing leases. As of January 1, 2019, Company did not have any leases classified as finance leases. The Company also elected a practical expedient that allowed it to not separate non-lease components from lease components and instead to account for each lease and non-lease component as a single lease component. The adoption of the new standard as of January 1, 2019 did not impact the Company's consolidated results of operations and had no impact on cash flows. As a lessee, the Company had six ground leases on five properties as of January 1, 2019 with initial terms that range from 20 to 65 years and options to extend up to an additional 70 years in certain cases. 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. The Company recognizes lease expense for operating leases on a straight-line basis over the lease term. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants. The long-term ground leases represent a majority of the Company's current operating lease payments. The Company recorded right-of-use assets totaling $32.2 million and lease liabilities totaling $41.4 million upon adopting this standard on January 1, 2019. The Company utilized a weighted average discount rate of 5.4% to measure its lease liabilities upon adoption. 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 15 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. The new standard includes new considerations regarding the recognition of rental revenue when collection is not probable. The Company changed its presentation and measurement of charges for uncollectable lease revenue associated with its office, retail, and residential leasing activity, reflecting those amounts as a component of rental income on the accompanying Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2019. However, in accordance with its prospective adoption of the standard, the Company did not adjust the prior year period presentation of charges for uncollectable lease revenue associated with its office, retail, and residential leasing activity as a component of operating expenses, excluding property taxes, on the accompanying Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2018. Instead, the Company recorded a combined adjustment of $0.2 million to the opening balances for distributions in excess of earnings and noncontrolling interest relating to receivables where collection of substantially all operating lease payments was not probable as of January 1, 2019. Lease-related receivables, which include contractual amounts accrued and unpaid from tenants and accrued straight-line rents receivable, are reduced for credit losses. Such amounts are recognized as a reduction to real estate rental revenues. The Company evaluates the collectability of lease receivables using several factors, including a lessee’s creditworthiness. The Company recognizes a credit loss on lease-related receivables when, in the opinion of management, collection of substantially all lease payments is not probable. When collectability is determined not probable, any lease income subsequent to recognizing the credit loss is limited to the lesser of the lease income reflected on a straight-line basis or cash collected. Credit losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance will replace the "incurred loss" approach under existing guidance with an "expected loss" model for instruments measured at amortized cost, such as our notes receivable. The guidance is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. While the Company is currently evaluating the impact ASU 2016-13 will have on the consolidated financial statements, the Company expects that the adoption could result in earlier recognition of a provision for loan losses on its notes receivable.
Segments	Segments Net operating income (segment revenues minus segment expenses) is the measure used by the Company’s chief operating decision-maker to assess segment performance. Net operating income 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, net operating income should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate net operating income in the same manner. The Company considers net operating income 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 and construction businesses.
Construction Contracts	The Company defers pre-contract costs when such costs are directly associated with specific anticipated contracts and their recovery is probable.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 June 30, 2019 during the next twelve months. Billings in excess of construction contract costs and estimated earnings represent billings or collections on contracts made in advance of revenue recognized.
Derivative Financial Instruments	Derivative Financial Instruments The Company may enter 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 interest rate derivatives 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.
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.

Segments (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Net operating income of reportable segments

Net operating income of the Company’s reportable segments for the three and six months ended June 30, 2019 and 2018 was as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	(Unaudited)
Office real estate
Rental revenues	$	7,382	$	5,288	$	12,938	$	10,388
Rental expenses	1,853		1,430		3,339		2,876
Real estate taxes	653		502		1,179		1,004
Segment net operating income	4,876		3,356		8,420		6,508
Retail real estate
Rental revenues	19,235		16,608		36,492		33,319
Rental expenses	2,893		2,563		5,493		5,220
Real estate taxes	1,893		1,656		3,704		3,339
Segment net operating income	14,449		12,389		27,295		24,760
Multifamily residential real estate
Rental revenues	9,761		6,702		17,857		13,590
Rental expenses	3,281		2,529		5,920		4,850
Real estate taxes	905		577		1,696		1,205
Segment net operating income	5,575		3,596		10,241		7,535
General contracting and real estate services
Segment revenues	21,444		20,654		38,480		43,704
Segment expenses	20,123		20,087		36,409		42,501
Segment gross profit	1,321		567		2,071		1,203
Net operating income	$	26,221	$	19,908	$	48,027	$	40,006

Reconciliation of net operating income to net income

The following table reconciles net operating income to net income, the most directly comparable GAAP measure, for the three and six months ended June 30, 2019 and 2018 (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
	(Unaudited)
Net operating income	$	26,221		$	19,908		$	48,027		$	40,006
Depreciation and amortization	(13,478		)	(9,179		)	(23,382		)	(18,457		)
General and administrative expenses	(2,951		)	(2,764		)	(6,352		)	(5,725		)
Acquisition, development, and other pursuit costs	(57		)	(9		)	(457		)	(93		)
Impairment charges	—			(98		)	—			(98		)
Interest income	5,593			2,375			10,912			4,607
Interest expense	(7,603		)	(4,497		)	(13,489		)	(8,870		)
Equity in income of unconsolidated real estate entities	—			—			273			—
Change in fair value of interest rate derivatives	(1,933		)	(11		)	(3,396		)	958
Other income	4			54			64			168
Income tax benefit	30			166			140			432
Net income	$	5,826		$	5,945		$	12,340		$	12,928

Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Schedule of operating lease costs

The components of lease cost for the three and six months ended June 30, 2019 were as follows (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(Unaudited)
Operating lease cost	$	707	1,395
Finance lease cost:
Amortization of right-of-use assets	$	77	77
Interest on lease liabilities	$	112	112

The table below presents supplemental cash flow information related to leases during the three and six months ended June 30, 2019 (in thousands):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(Unaudited)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	524	$	1,024
Operating cash flows from finance leases	111		111
Financing cash flows from finance leases	—		—

Additional information related to leases as of June 30, 2019 were as follows (in thousands):



	June 30, 2019
	(Unaudited)
Weighted Average Remaining Lease Term (years)
Operating leases	45.9
Finance leases	41.7

Weighted Average Discount Rate
Operating leases	5.4	%
Finance leases	5.2	%

Schedule of maturities of lease liabilities

Maturities of lease liabilities as of June 30, 2019 were as follows (in thousands):



Year Ending December 31,	Operating Leases			Finance Leases
2019 (excluding six months ended June 30, 2019)	$	954		$	422
2020	2,080			864
2021	2,137			864
2022	2,361			868
2023	2,400			873
Thereafter	105,961			43,902
Total lease liabilities	115,893			47,793
Less imputed interest	(74,593		)	(29,931		)
Present value of lease liabilities	$	41,300		$	17,862

Schedule of rental revenue

Rental revenue for the three and six months ended June 30, 2019 comprised the following (in thousands):



	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
	(Unaudited)
Base rent and tenant charges	$	35,066		$	64,990
Accrued straight-line rental adjustment	1,187			2,148
Lease incentive amortization	(184		)	(367		)
Above/below market lease amortization	309			516
Total rental revenue	$	36,378		$	67,287

Schedule of minimum rental payments

The Company's commercial tenant leases provide for minimum rental payments during each of the next five years and thereafter as follows (in thousands):



Year Ending December 31,	Operating Leases
2019 (excluding six months ended June 30, 2019)	$	48,504
2020	91,957
2021	84,332
2022	77,113
2023	67,302
Thereafter	314,422
Total	$	683,630

Real Estate Investment (Tables)

6 Months Ended

Jun. 30, 2019

Real Estate [Abstract]

Summary of the purchase price allocation



	Wendover Village additional outparcel		One City Center		1405 Point				Red Mill Commons			Marketplace at Hilltop				Thames Street Wharf
Land	$	1,633	$	2,678	$	—		(a)	$	44,252		$	2,023		(b)	$	15,861
Site improvements	50		163		298				2,558			691				150
Building and improvements	888		28,039		92,866				27,790			19,195				64,539
Furniture and fixtures	—		—		2,302				—			—				—
In-place leases	101		15,140		3,371				9,973			4,565				24,385
Above-market leases	111		—		—				1,463			599				—
Below-market leases	—		—		—				(6,221		)	(1,136		)		(3,636		)
Finance lease liabilities	—		—		(8,671		)		—			(9,200		)		—
Finance lease right-of-use assets	—		—		11,730				—			12,770				—
Net assets acquired	$	2,783	$	46,020	$	101,896			$	79,815		$	29,507			$	101,299

________________________________________

(a) Land is subject to a ground lease.

(b) Portion of land is subject to a ground lease.

Notes Receivable (Tables)

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Summary of Mezzanine Loans

The Company had the following notes receivable outstanding as of June 30, 2019 and December 31, 2018 ($ in thousands):



	Outstanding loan amount						Maximum loan commitment		Interest rate		Interest compounding
Development Project	June 30, 2019			December 31, 2018			Maximum loan commitment		Interest rate		Interest compounding
1405 Point	$	—		$	30,238		$	31,032	8.0	%	Monthly
The Residences at Annapolis Junction	37,602			36,361			48,105		10.0	%	Monthly
North Decatur Square ^(a)	19,852			18,521			29,673		15.0	%	Annually
Delray Plaza	12,098			7,032			15,000		15.0	%	Annually
Nexton Square	14,168			14,855			17,000		15.0	%	Monthly
Interlock Commercial	38,062			18,269			95,000		15.0	%	None
Solis Apartments at Interlock	17,226			13,821			41,100		13.0	%	Annually
Total mezzanine	139,008			139,097			$	276,910
Other notes receivable	1,314			1,275
Notes receivable guarantee premium	6,554			2,800
Notes receivable discount, net ^(b)	(2,133		)	(4,489		)
Total notes receivable	$	144,743		$	138,683

_______________________________________

(a) This loan was paid in full on July 22, 2019.

(b) Represents the remaining unamortized portion of the $5.0 million loan modification fee for The Residences at Annapolis Junction paid by the borrower in November 2018.

Summary of Interest Income

The Company recognized interest income for the three and six months ended June 30, 2019 and 2018 as follows (in thousands):



	Three Months Ended June 30,					Six Months Ended June 30,
Development Project	2019			2018		2019			2018
1405 Point	$	173		$	483	$	783		$	936
The Residences at Annapolis Junction	2,173		(a)	1,124		4,196		(a)	2,209
North Decatur Square	693			531		1,331			992
Delray Plaza	414			225		724			448
Nexton Square	524			—		1,033			—
Interlock Commercial	1,086			—		1,830			—
Solis Apartments at Interlock	508			—		972			—
Total mezzanine	5,571			2,363		10,869			4,585
Other interest income	22			12		43			22
Total interest income	$	5,593		$	2,375	$	10,912		$	4,607

________________________________________

(a) Includes amortization of the $5.0 million loan modification fee paid by the borrower in November 2018.

Construction Contracts (Tables)

6 Months Ended

Jun. 30, 2019

Contractors [Abstract]

Summary of balances and changes of construction contracts

The Company’s balances and changes in construction contract price allocated to unsatisfied performance obligations (backlog) as of June 30, 2019 and 2018 were as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Beginning backlog	$	160,871		$	30,733		$	165,863		$	49,167
New contracts/change orders	39,177			27,807			51,196			32,376
Work performed	(21,416		)	(20,619		)	(38,427		)	(43,622		)
Ending backlog	$	178,632		$	37,921		$	178,632		$	37,921



	Six Months Ended June 30, 2019						Six Months Ended June 30, 2018
	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	$	1,358		$	3,037		$	245		$	3,591
Revenue recognized that was included in the balance at the beginning of the period	—			(3,037		)	—			(3,591		)
Increases due to new billings, excluding amounts recognized as revenue during the period	—			2,541			—			1,898
Transferred to receivables	(1,890		)	—			(245		)	—
Construction contract costs and estimated earnings not billed during the period	461			—			1,287			—
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	532			(752		)	—			(187		)
Ending balance	$	461		$	1,789		$	1,287		$	1,711

Net position of uncompleted construction contracts

The Company’s net position on uncompleted construction contracts comprised the following as of June 30, 2019 and December 31, 2018 (in thousands):



	June 30, 2019			December 31, 2018
Costs incurred on uncompleted construction contracts	$	630,425		$	594,006
Estimated earnings	22,383			20,375
Billings	(654,136		)	(616,060		)
Net position	$	(1,328	)	$	(1,679	)

Construction contract costs and estimated earnings in excess of billings	$	461		$	1,358
Billings in excess of construction contract costs and estimated earnings	(1,789		)	(3,037		)
Net position	$	(1,328	)	$	(1,679	)

Indebtedness (Tables)

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Schedule of Debt Assumed

The following table summarizes the note balance at assumption, fair value at assumption, maturity date, and interest rate for each loan ($ in thousands):



Loan name	Note balance at assumption		Fair value of loan at assumption		Loan maturity date	Loan interest rate
Redmill North	$	4,451	$	4,520	12/31/2028	4.73	%
Redmill South	6,310		6,090		5/1/2025	3.57	%
Redmill Central	2,640		2,690		6/17/2024	4.80	%
Redmill West	11,548		11,540		6/1/2022	4.23	%
Marketplace at Hilltop	10,740		10,790		10/1/2022	4.42	%
	$	35,689	$	35,630

Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of LIBOR interest rate caps

As of June 30, 2019, the Company had the following LIBOR interest rate caps ($ in thousands), which are not designated as cash flow hedges for accounting purposes:



Origination Date	Expiration Date	Notional Amount		Strike Rate		Premium Paid
6/23/2017	7/1/2019	$	50,000	1.50	%	$	154
9/18/2017	10/1/2019	50,000		1.50	%	199
11/28/2017	12/1/2019	50,000		1.50	%	359
3/7/2018	4/1/2020	50,000		2.25	%	310
7/16/2018	8/1/2020	50,000		2.50	%	319
12/11/2018	1/1/2021	50,000		2.75	%	210
5/15/2019	6/1/2022	100,000		2.50	%	288
Total		$	400,000			$	1,839

As of June 30, 2019, 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	$	50,000		1-month LIBOR	2.00	%	3.50	%	3/1/2016	2/20/2020
Senior unsecured term loan	50,000			1-month LIBOR	2.78	%	4.28	%	5/1/2018	5/1/2023
John Hopkins Village	52,256		(a)	1-month LIBOR	2.94	%	4.19	%	8/7/2018	8/7/2025
Lightfoot Marketplace	10,500		(a)	1-month LIBOR	3.02	%	4.77	%	10/12/2018	10/12/2023
249 Central Park Retail, South Retail, and Fountain Plaza Retail	34,570		(a)	1-month LIBOR	2.25	%	3.85	%	4/1/2019	8/10/2023
Senior unsecured term loan	50,000		(a)	1-month LIBOR	2.26	%	3.76	%	4/1/2019	10/22/2022
Total	$	247,326

________________________________________

(a) Designated as a cash flow hedge.

Schedule of derivatives

The Company’s derivatives were comprised of the following as of June 30, 2019 and December 31, 2018 (in thousands):



	June 30, 2019							December 31, 2018
	(Unaudited)
	Notional Amount		Fair Value					Notional Amount		Fair Value
			Asset		Liability					Asset		Liability
Derivatives not designated as accounting hedges
Interest rate swaps	$	100,000	$	—	$	(2,186	)	$	100,000	$	303	$	(749	)
Interest rate caps	400,000		422		—			350,000		1,790		—
Total derivatives not designated as accounting hedges	500,000		422		(2,186		)	450,000		2,093		(749		)
Derivatives designated as accounting hedges
Interest rate swaps	147,326		—		(6,080		)	63,208		—		(1,725		)
Total derivatives	$	647,326	$	422	$	(8,266	)	$	513,208	$	2,093	$	(2,474	)

Schedule of changes in fair value of derivatives

The changes in the fair value of the Company’s derivatives during the three and six months ended June 30, 2019 and 2018 were comprised of the following (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Interest rate swaps	$	(4,549	)	$	5		$	(6,201	)	$	353
Interest rate caps	(843		)	(16		)	(1,657		)	605
Total change in fair value of interest rate derivatives	$	(5,392	)	$	(11	)	$	(7,858	)	$	958
Comprehensive income statement presentation:
Change in fair value of interest rate derivatives	$	(1,933	)	$	(11	)	$	(3,396	)	$	958
Unrealized cash flow hedge gains losses	(3,459		)	—			$	(4,462	)	$	—
Total change in fair value of interest rate derivatives	$	(5,392	)	$	(11	)	$	(7,858	)	$	958

- 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

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+ Details

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Carrying amounts and fair values of financial instruments measured based on level two inputs

The carrying amounts and fair values of the Company’s financial instruments as of June 30, 2019 and December 31, 2018 were as follows (in thousands):



	June 30, 2019				December 31, 2018
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(Unaudited)
Indebtedness	$	949,345	$	952,641	$	694,239	$	688,437
Notes receivable	144,743		144,743		138,683		138,683
Interest rate swap liabilities	8,266		8,266		2,474		2,474
Interest rate swap and cap assets	422		422		2,093		2,093

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Summary of guarantees

The following table summarizes the guarantees made by the Company as of June 30, 2019 (in thousands):



Development project	Payment guarantee amount
The Residences at Annapolis Junction	$	8,300
Delray Plaza	5,180
Nexton Square	12,600
Interlock Commercial	30,654
Total	$	56,734

Business of Organization - Additional Information (Details) - property	Jun. 30, 2019	Dec. 31, 2018
Business And Organization [Line Items]
Percentage of Operating Partnership held	71.40%	74.50%
Operating Property
Business And Organization [Line Items]
Number of real estate properties	54
Development Property
Business And Organization [Line Items]
Number of real estate properties	8
General Partner
Business And Organization [Line Items]
Percentage of Operating Partnership held	0.10%

Significant Accounting Policies - Additional Information (Details) $ in Thousands		6 Months Ended
	Jan. 01, 2019 USD ($) property lease	Jun. 30, 2019 USD ($) extension	Jun. 30, 2018 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of ground leases \| lease	6
Number of properties subject to ground leases \| property	5
Maximum optional ground lease extension term	70 years
Operating lease right-of-use assets		$ 33,268
Operating lease liabilities		$ 41,300
Weighted average discount rate		5.40%
Number of options to extend, more than \| extension		1
Adjustment for uncollectable accounts		$ 9	$ 112
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Term of contract	20 years
Renewal term		1 year
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Term of contract	65 years
Renewal term		15 years
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 32,200
Operating lease liabilities	$ 41,400
Weighted average discount rate	5.40%
Adjustment for uncollectable accounts	$ 200

Segments - Net Income of Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information
Rental revenues	$ 36,378	$ 28,598	$ 67,287	$ 57,297
Rental expenses	8,027	6,522	14,752	12,946
Real estate taxes	3,451	2,735	6,579	5,548
General contracting and real estate services
Segment Reporting Information
Segment revenues	21,444	20,654	38,480	43,704
Segment expenses	20,123	20,087	36,409	42,501
Operating Segments
Segment Reporting Information
Gross profit	26,221	19,908	48,027	40,006
Operating Segments \| Office real estate
Segment Reporting Information
Rental revenues	7,382	5,288	12,938	10,388
Rental expenses	1,853	1,430	3,339	2,876
Real estate taxes	653	502	1,179	1,004
Gross profit	4,876	3,356	8,420	6,508
Operating Segments \| Retail real estate
Segment Reporting Information
Rental revenues	19,235	16,608	36,492	33,319
Rental expenses	2,893	2,563	5,493	5,220
Real estate taxes	1,893	1,656	3,704	3,339
Gross profit	14,449	12,389	27,295	24,760
Operating Segments \| Multifamily residential real estate
Segment Reporting Information
Rental revenues	9,761	6,702	17,857	13,590
Rental expenses	3,281	2,529	5,920	4,850
Real estate taxes	905	577	1,696	1,205
Gross profit	5,575	3,596	10,241	7,535
Operating Segments \| General contracting and real estate services \| General contracting and real estate services
Segment Reporting Information
Segment revenues	21,444	20,654	38,480	43,704
Segment expenses	20,123	20,087	36,409	42,501
Gross profit	$ 1,321	$ 567	$ 2,071	$ 1,203

Segments - Additional Information (Details) - General contracting and real estate services - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information
General contracting and real estate services revenues	$ 21,444	$ 20,654	$ 38,480	$ 43,704
General contracting and real estate services expenses	20,123	20,087	36,409	42,501
General contracting and real estate services \| Intercompany Eliminations
Segment Reporting Information
General contracting and real estate services revenues	30,000	34,200	60,200	60,100
General contracting and real estate services expenses	$ 29,700	$ 33,900	$ 59,600	$ 59,500

Segments - Reconciliation of Net Operating Income to Net Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Depreciation and amortization	$ (13,478)		$ (9,179)		$ (23,382)	$ (18,457)
General and administrative expenses	(2,951)		(2,764)		(6,352)	(5,725)
Acquisition, development, and other pursuit costs	(57)		(9)		(457)	(93)
Impairment charges	0		(98)		0	(98)
Interest income	5,593		2,375		10,912	4,607
Interest expense	(7,603)		(4,497)		(13,489)	(8,870)
Equity in income of unconsolidated real estate entities	0		0		273	0
Change in fair value of interest rate derivatives	(1,933)		(11)		(3,396)	958
Other income	4		54		64	168
Income tax benefit	30		166		140	432
Net income	5,826	$ 6,514	5,945	$ 6,983	12,340	12,928
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Gross profit	26,221		19,908		48,027	40,006
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Depreciation and amortization	(13,478)		(9,179)		(23,382)	(18,457)
General and administrative expenses	(2,951)		(2,764)		(6,352)	(5,725)
Acquisition, development, and other pursuit costs	(57)		(9)		(457)	(93)
Impairment charges	0		(98)		0	(98)
Interest expense	(7,603)		(4,497)		(13,489)	(8,870)
Equity in income of unconsolidated real estate entities	0		0		273	0
Change in fair value of interest rate derivatives	(1,933)		(11)		(3,396)	958
Other income	4		54		64	168
Income tax benefit	$ 30		$ 166		$ 140	$ 432

Leases - Operating lease costs (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 707	$ 1,395
Finance lease cost:
Amortization of right-of-use assets	77	77
Interest on lease liabilities	112	112
Operating cash flows from operating leases	524	1,024
Operating cash flows from finance leases	111	111
Financing cash flows from finance leases	$ 0	$ 0

Leases - Additional Information Related to Leases (Details)	Jun. 30, 2019
Weighted Average Remaining Lease Term (years)
Operating leases	45 years 10 months 24 days
Finance leases	41 years 8 months 12 days
Weighted Average Discount Rate
Operating leases	5.40%
Finance leases	5.20%

Leases - Lessee, Maturities of Operating Leases (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Operating Leases
2019 (excluding six months ended June 30, 2019)	$ 954
2020	2,080
2021	2,137
2022	2,361
2023	2,400
Thereafter	105,961
Total lease liabilities	115,893
Less imputed interest	(74,593)
Present value of lease liabilities	41,300
Finance Leases
2019 (excluding six months ended June 30, 2019)	422
2020	864
2021	864
2022	868
2023	873
Thereafter	43,902
Total lease liabilities	47,793
Less imputed interest	(29,931)
Present value of lease liabilities	$ 17,862

Leases - Lessor, Rental Income (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Base rent and tenant charges	$ 35,066	$ 64,990
Accrued straight-line rental adjustment	1,187	2,148
Lease incentive amortization	(184)	(367)
Above/below market lease amortization	309	516
Total rental revenue	$ 36,378	$ 67,287

Leases - Lessor, Payments to be Received (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Leases [Abstract]
2019 (excluding six months ended June 30, 2019)	$ 48,504
2020	91,957
2021	84,332
2022	77,113
2023	67,302
Thereafter	314,422
Total	$ 683,630

Real Estate Investment - Acquisitions (Details) $ / shares in Units, $ in Thousands, shares in Millions							6 Months Ended
	Jun. 26, 2019 USD ($)	May 23, 2019 USD ($) $ / shares	May 22, 2019 USD ($) $ / shares shares	Apr. 24, 2019 USD ($)	Mar. 14, 2019 USD ($)	Feb. 06, 2019 USD ($)	Jun. 30, 2019 property
1405 Point
Real Estate Properties [Line Items]
Capitalized acquisition costs				$ 100
Cash payment				$ 300
Option to purchase additional voting rights				79.00%
Extinguishment of note receivable				$ 31,300
Loans payable				64,900
Loans payable, fair value				$ 65,800
Wendover Village
Real Estate Properties [Line Items]
Consideration transferred						$ 2,700
Capitalized acquisition costs						$ 100
One City Center
Real Estate Properties [Line Items]
Consideration transferred					$ 23,000
Capitalized acquisition costs					100
Cash payment					$ 23,200
Wendover Village And Durham City Center
Real Estate Properties [Line Items]
Number of operating properties acquired \| property							6
Red Mill Commons And Marketplace At Hilltop
Real Estate Properties [Line Items]
Loans payable, fair value		$ 35,630
Mortgage debt assumed		35,689
Thames Street Wharf
Real Estate Properties [Line Items]
Capitalized acquisition costs	$ 300
Cash payment	$ 101,000
City Center \| Office And Retail Portions
Real Estate Properties [Line Items]
Interests in equity method investments					37.00%
Operating Partnership \| Red Mill Commons And Marketplace At Hilltop
Real Estate Properties [Line Items]
Consideration transferred		109,300	$ 105,000
Capitalized acquisition costs		1,100
Cash payment		4,500	$ 4,500
Number of shares issued (in shares) \| shares			4.1
Value of Class A Units		$ 68,100
Share price \| $ / shares		$ 16.50	$ 15.55
Mortgage debt assumed		$ 35,600	$ 35,700
Future sale period for properties in limited number of cases		10 years
Secured Debt \| One City Center
Real Estate Properties [Line Items]
Maximum borrowing capacity					$ 25,600
Accordion feature maximum borrowing capacity					$ 27,600

Real Estate Investment - Summary of the Purchase Price Allocation (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Wendover Village additional outparcel
Business Acquisition [Line Items]
Below-market leases	$ 0
Finance lease liabilities	0
Finance lease right-of-use assets	0
Net assets acquired	2,783
Wendover Village additional outparcel \| In-place leases
Business Acquisition [Line Items]
Finite-lived intangibles	101
Wendover Village additional outparcel \| Above-market leases
Business Acquisition [Line Items]
Finite-lived intangibles	111
Wendover Village additional outparcel \| Land
Business Acquisition [Line Items]
Property, plant, and equipment	1,633
Wendover Village additional outparcel \| Site improvements
Business Acquisition [Line Items]
Property, plant, and equipment	50
Wendover Village additional outparcel \| Building and improvements
Business Acquisition [Line Items]
Property, plant, and equipment	888
Wendover Village additional outparcel \| Furniture and fixtures
Business Acquisition [Line Items]
Property, plant, and equipment	0
One City Center
Business Acquisition [Line Items]
Below-market leases	0
Finance lease liabilities	0
Finance lease right-of-use assets	0
Net assets acquired	46,020
One City Center \| In-place leases
Business Acquisition [Line Items]
Finite-lived intangibles	15,140
One City Center \| Above-market leases
Business Acquisition [Line Items]
Finite-lived intangibles	0
One City Center \| Land
Business Acquisition [Line Items]
Property, plant, and equipment	2,678
One City Center \| Site improvements
Business Acquisition [Line Items]
Property, plant, and equipment	163
One City Center \| Building and improvements
Business Acquisition [Line Items]
Property, plant, and equipment	28,039
One City Center \| Furniture and fixtures
Business Acquisition [Line Items]
Property, plant, and equipment	0
1405 Point
Business Acquisition [Line Items]
Below-market leases	0
Finance lease liabilities	(8,671)
Finance lease right-of-use assets	11,730
Net assets acquired	101,896
1405 Point \| In-place leases
Business Acquisition [Line Items]
Finite-lived intangibles	3,371
1405 Point \| Above-market leases
Business Acquisition [Line Items]
Finite-lived intangibles	0
1405 Point \| Land
Business Acquisition [Line Items]
Property, plant, and equipment	0
1405 Point \| Site improvements
Business Acquisition [Line Items]
Property, plant, and equipment	298
1405 Point \| Building and improvements
Business Acquisition [Line Items]
Property, plant, and equipment	92,866
1405 Point \| Furniture and fixtures
Business Acquisition [Line Items]
Property, plant, and equipment	2,302
Red Mill Commons
Business Acquisition [Line Items]
Below-market leases	(6,221)
Finance lease liabilities	0
Finance lease right-of-use assets	0
Net assets acquired	79,815
Red Mill Commons \| In-place leases
Business Acquisition [Line Items]
Finite-lived intangibles	9,973
Red Mill Commons \| Above-market leases
Business Acquisition [Line Items]
Finite-lived intangibles	1,463
Red Mill Commons \| Land
Business Acquisition [Line Items]
Property, plant, and equipment	44,252
Red Mill Commons \| Site improvements
Business Acquisition [Line Items]
Property, plant, and equipment	2,558
Red Mill Commons \| Building and improvements
Business Acquisition [Line Items]
Property, plant, and equipment	27,790
Red Mill Commons \| Furniture and fixtures
Business Acquisition [Line Items]
Property, plant, and equipment	0
Marketplace at Hilltop
Business Acquisition [Line Items]
Below-market leases	(1,136)
Finance lease liabilities	(9,200)
Finance lease right-of-use assets	12,770
Net assets acquired	29,507
Marketplace at Hilltop \| In-place leases
Business Acquisition [Line Items]
Finite-lived intangibles	4,565
Marketplace at Hilltop \| Above-market leases
Business Acquisition [Line Items]
Finite-lived intangibles	599
Marketplace at Hilltop \| Land
Business Acquisition [Line Items]
Property, plant, and equipment	2,023
Marketplace at Hilltop \| Site improvements
Business Acquisition [Line Items]
Property, plant, and equipment	691
Marketplace at Hilltop \| Building and improvements
Business Acquisition [Line Items]
Property, plant, and equipment	19,195
Marketplace at Hilltop \| Furniture and fixtures
Business Acquisition [Line Items]
Property, plant, and equipment	0
Thames Street Wharf
Business Acquisition [Line Items]
Below-market leases	(3,636)
Finance lease liabilities	0
Finance lease right-of-use assets	0
Net assets acquired	101,299
Thames Street Wharf \| In-place leases
Business Acquisition [Line Items]
Finite-lived intangibles	24,385
Thames Street Wharf \| Above-market leases
Business Acquisition [Line Items]
Finite-lived intangibles	0
Thames Street Wharf \| Land
Business Acquisition [Line Items]
Property, plant, and equipment	15,861
Thames Street Wharf \| Site improvements
Business Acquisition [Line Items]
Property, plant, and equipment	150
Thames Street Wharf \| Building and improvements
Business Acquisition [Line Items]
Property, plant, and equipment	64,539
Thames Street Wharf \| Furniture and fixtures
Business Acquisition [Line Items]
Property, plant, and equipment	$ 0

Real Estate Investment Real Estate Investment - Property Disposition (Details) - USD ($) $ in Thousands		6 Months Ended
	Apr. 01, 2019	Jun. 30, 2019	Jun. 30, 2018	Jul. 17, 2019
Real Estate Properties [Line Items]
Contract price		$ 1,014	$ 4,271
Waynesboro Commons \| Waynesboro Commons \| Held-for-sale
Real Estate Properties [Line Items]
Contract price	$ 1,100
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal	$ 0
Subsequent Event \| Lightfoot Marketplace \| Lightfoot Marketplace \| Held-for-sale
Real Estate Properties [Line Items]
Agreed upon selling price				$ 30,300

Equity Method Investment (Details)		2 Months Ended	3 Months Ended		6 Months Ended
Equity Method Investment (Details)	Mar. 14, 2019 USD ($)	Mar. 13, 2019 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Feb. 25, 2016 story
Schedule of Equity Method Investments [Line Items]
Investment in equity method investment during period					$ 535,000	$ 3,127,000
Equity in income of unconsolidated real estate entities			$ 0	$ 0	273,000	0
22-Story Mixed Use Tower \| City Center
Schedule of Equity Method Investments [Line Items]
Interests in equity method investments							37.00%
Number stories in the mixed use tower (story) \| story							22
Investment in equity method investment during period					$ 500,000
Equity in income of unconsolidated real estate entities		$ 300,000		0		0
Dividends from equity investment				$ 0		$ 0
Office And Retail Portions \| City Center
Schedule of Equity Method Investments [Line Items]
Interests in equity method investments	37.00%
One City Center
Schedule of Equity Method Investments [Line Items]
Cash payment	$ 23,200,000

Notes Receivable (Summary of Mezzanine Loans) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 08, 2019	Dec. 31, 2018	Nov. 16, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 144,743		$ 138,683
Financing receivable guarantee premium	6,554		2,800
Financing receivable discount	(2,133)		(4,489)
Total notes receivable	144,743		138,683
Mezzanine Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	139,008		139,097
Maximum loan commitment	276,910
Mezzanine Loan \| 1405 Point
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	0		30,238
Maximum loan commitment	$ 31,032
Interest rate	8.00%
Mezzanine Loan \| The Residences at Annapolis Junction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 37,602		36,361
Maximum loan commitment	$ 48,105
Interest rate	10.00%
Mezzanine Loan \| North Decatur Square (a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 19,852		18,521
Maximum loan commitment	$ 29,673
Interest rate	15.00%
Mezzanine Loan \| Delray Plaza
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 12,098		7,032
Maximum loan commitment	$ 15,000	$ 15,000
Interest rate	15.00%
Mezzanine Loan \| Nexton Square
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 14,168		14,855
Maximum loan commitment	$ 17,000
Interest rate	15.00%
Mezzanine Loan \| Interlock Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 38,062		18,269
Maximum loan commitment	$ 95,000
Interest rate	15.00%
Mezzanine Loan \| Interlock Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 17,226		13,821
Maximum loan commitment	$ 41,100
Interest rate	13.00%
Other Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable	$ 1,314		$ 1,275
Annapolis Junction \| The Residences at Annapolis Junction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan modification fee	$ 5,000			$ 5,000

Notes Receivable (Schedule of Interest on the Mezzanine Loans) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	$ 5,593	$ 2,375	$ 10,912	$ 4,607
Mezzanine Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	5,571	2,363	10,869	4,585
Other Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	22	12	43	22
1405 Point \| Mezzanine Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	173	483	783	936
The Residences at Annapolis Junction \| Mezzanine Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	2,173	1,124	4,196	2,209
North Decatur Square (a) \| Mezzanine Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	693	531	1,331	992
Delray Plaza \| Mezzanine Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	414	225	724	448
Nexton Square \| Mezzanine Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	524	0	1,033	0
Interlock Commercial \| Mezzanine Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	1,086	0	1,830	0
Interlock Residential \| Mezzanine Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income	$ 508	$ 0	$ 972	$ 0

Notes Receivable (Details) - USD ($)						3 Months Ended		6 Months Ended
Notes Receivable (Details) - USD ($)	Jul. 22, 2019	Apr. 25, 2019	Apr. 24, 2019	Feb. 08, 2019	Nov. 16, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Apr. 19, 2019	Jan. 08, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses						$ 0		$ 0				$ 0
Provision for loan losses						0	$ 0	0	$ 0
Repayments of debt								138,175,000	$ 84,277,000
Financial Guarantee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Guarantor obligations, maximum exposure (up to)						56,734,000		56,734,000
The Residences at Annapolis Junction \| Financial Guarantee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Guarantor obligations, maximum exposure (up to)						8,300,000		8,300,000
The Residences at Annapolis Junction \| Annapolis Junction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan modification fee					$ 5,000,000.0	5,000,000.0		5,000,000.0
Repayments of debt					11,100,000
Repayment Of accrued interest					9,900,000
Repayments of principal					1,200,000
The Residences at Annapolis Junction \| Bridge loan \| Annapolis Junction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Guarantor obligations, maximum exposure (up to)					8,300,000
Debt, face value					$ 83,000,000.0
Duration of extension option					1 year
Delray Plaza \| Financial Guarantee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Guarantor obligations, maximum exposure (up to)						5,180,000		5,180,000			$ 5,200,000
Nexton Square \| Financial Guarantee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Guarantor obligations, maximum exposure (up to)						12,600,000		12,600,000
Nexton Square \| Construction loans \| Line of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum borrowing capacity				$ 25,200,000
Interlock Commercial \| Financial Guarantee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Guarantor obligations, maximum exposure (up to)						30,654,000		30,654,000
Interlock Commercial \| Construction loans \| Financial Guarantee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Guarantor obligations, maximum exposure (up to)										$ 30,700,000
Mezzanine Loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum loan commitment						276,910,000		276,910,000
Mezzanine Loan \| The Residences at Annapolis Junction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum loan commitment						48,105,000		48,105,000
Mezzanine Loan \| Delray Plaza
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum loan commitment						15,000,000		15,000,000			$ 15,000,000.0
Mezzanine Loan \| Nexton Square
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum loan commitment						17,000,000		17,000,000
Proceeds from collection of loans receivable				2,100,000
Guaranty liabilities				$ 12,600,000
Mezzanine Loan \| 1405 Point
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum loan commitment						31,032,000		31,032,000
Mezzanine Loan \| Interlock Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum loan commitment						95,000,000		95,000,000
Mezzanine Loan \| North Decatur Square (a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum loan commitment						$ 29,673,000		$ 29,673,000
Annapolis Junction \| The Residences at Annapolis Junction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Option to purchase additional voting rights								88.00%
1405 Point
Accounts, Notes, Loans and Financing Receivable [Line Items]
Option to purchase additional voting rights			79.00%
Cash payment			$ 300,000
Loans payable			$ 64,900,000
1405 Point \| 1405 Point
Accounts, Notes, Loans and Financing Receivable [Line Items]
Option to purchase additional voting rights		79.00%
Cash payment		$ 300,000
Subsequent Event \| Mezzanine Loan \| North Decatur Square (a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from collection of loans receivable	$ 20,000,000.0

Construction Contracts (Details) - USD ($) $ in Thousands	6 Months Ended
Construction Contracts (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Capitalized contract cost, amortization	$ 300	$ 0
Construction receivables retentions	3,200		$ 8,500
Retention payable	1,789	$ 1,711	3,037	$ 3,591
Construction
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Retention payable	14,700		21,600
Portion Attributable To Pending Contracts
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred pre-contract costs	$ 700		$ 1,400

Construction Contracts - Summary of Costs in Excess of Billings and Billings in Excess of Costs (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Construction contract costs and estimated earnings in excess of billings
Beginning balance	$ 1,358	$ 245
Transferred to receivables	(1,890)	(245)
Construction contract costs and estimated earnings not billed during the period	461	1,287
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	532	0
Ending balance	461	1,287
Billings in excess of construction contract costs and estimated earnings
Beginning balance	3,037	3,591
Revenue recognized that was included in the balance at the beginning of the period	(3,037)	(3,591)
Increases due to new billings, excluding amounts recognized as revenue during the period	2,541	1,898
Changes due to cumulative catch-up adjustment arising from changes in the estimate of the stage of completion	(752)	(187)
Ending balance	$ 1,789	$ 1,711

Construction Contracts - Summary of Net Position (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Contractors [Abstract]
Costs incurred on uncompleted construction contracts	$ 630,425	$ 594,006
Estimated earnings	22,383	20,375
Billings	(654,136)	(616,060)
Net position	(1,328)	(1,679)
Construction contract costs and estimated earnings in excess of billings	461	1,358
Billings in excess of construction contract costs and estimated earnings	$ (1,789)	$ (3,037)

Construction Contracts - Summary of Backlog (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue, Remaining Performance Obligation [Roll Forward]
Beginning backlog	$ 160,871	$ 30,733	$ 165,863	$ 49,167
New contracts/change orders	39,177	27,807	51,196	32,376
Work performed	(21,416)	(20,619)	(38,427)	(43,622)
Ending backlog	$ 178,632	$ 37,921	$ 178,632	$ 37,921
Minimum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected completion of contracts	12 months		12 months
Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected completion of contracts	18 months		18 months

Indebtedness - Additional Information (Details)								1 Months Ended	6 Months Ended
Indebtedness - Additional Information (Details)	Jun. 26, 2019 USD ($)	May 23, 2019 USD ($)	Apr. 25, 2019 USD ($)	Apr. 24, 2019 USD ($)	Mar. 14, 2019 USD ($)	Mar. 11, 2019 USD ($)	Jan. 31, 2019 USD ($) extension	Jul. 31, 2019 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Revolving Credit Facility
Indebtedness
Interest rate on credit facility as of end of period									3.95%
Term Loan Facility
Indebtedness
Interest rate on credit facility as of end of period									3.90%
Minimum \| Revolving Credit Facility
Indebtedness
Basis points on unused commitment fee									0.15%
Minimum \| Revolving Credit Facility \| LIBOR
Indebtedness
Stated interest rate, basis spread on variable rate									1.40%
Minimum \| Term Loan Facility \| LIBOR
Indebtedness
Stated interest rate, basis spread on variable rate									1.35%
Maximum \| Revolving Credit Facility
Indebtedness
Basis points on unused commitment fee									0.25%
Maximum \| Revolving Credit Facility \| LIBOR
Indebtedness
Stated interest rate, basis spread on variable rate									2.00%
Maximum \| Term Loan Facility \| LIBOR
Indebtedness
Stated interest rate, basis spread on variable rate									1.95%
Construction loans
Indebtedness
Borrowings under construction loans									$ 50,300,000
Construction loans \| Subsequent Event
Indebtedness
Borrowings under construction loans								$ 5,400,000
Operating Partnership \| New Credit Facility
Indebtedness
Aggregate capacity under the credit facility							$ 355,000,000.0
Operating Partnership \| New Credit Facility \| Revolving Credit Facility
Indebtedness
Aggregate capacity under the credit facility							150,000,000.0
Accordion feature maximum borrowing capacity							$ 450,000,000.0
Number of extension options \| extension							2
Duration of extension option							6 months
Extension fee percentage							0.075%
Credit facility, amount outstanding									122,000,000.0	$ 126,000,000.0
Operating Partnership \| New Credit Facility \| Term Loan Facility
Indebtedness
Aggregate capacity under the credit facility							$ 205,000,000.0
Credit facility, amount outstanding									$ 205,000,000.0	$ 180,000,000.0
Lightfoot Marketplace \| Secured Debt \| Line of credit
Indebtedness
Proceeds from lines of credit						$ 7,400,000
One City Center \| LIBOR
Indebtedness
Stated interest rate, basis spread on variable rate					1.85%
One City Center \| Secured Debt
Indebtedness
Aggregate capacity under the credit facility					$ 25,600,000
Accordion feature maximum borrowing capacity					$ 27,600,000
1405 Point \| LIBOR
Indebtedness
Stated interest rate, basis spread on variable rate				2.75%					2.50%
Thames Street Wharf \| LIBOR
Indebtedness
Stated interest rate, basis spread on variable rate	1.30%
Thames Street Wharf \| Revolving Credit Facility \| LIBOR
Indebtedness
Stated interest rate, basis spread on variable rate	2.25%
Thames Street Wharf \| Secured Debt
Indebtedness
Aggregate capacity under the credit facility	$ 70,000,000.0
Thames Street Wharf \| Secured Debt \| Revolving Credit Facility
Indebtedness
Aggregate capacity under the credit facility	76,000,000.0
Commitment fee borrowing threshold	$ 19,000,000.0
Basis points on unused commitment fee									0.25%
First Purchase Option \| 1405 Point
Indebtedness
Option to purchase additional voting rights				79.00%
Cash payment				$ 300,000
1405 Point
Indebtedness
Option to purchase additional voting rights				79.00%
Cash payment				$ 300,000
Loans payable				64,900,000
Loans payable, fair value				$ 65,800,000
1405 Point \| 1405 Point
Indebtedness
Option to purchase additional voting rights			79.00%
Cash payment			$ 300,000
Red Mill Commons \| Operating Partnership
Indebtedness
Mortgage debt assumed		$ 24,900,000
Marketplace at Hilltop
Indebtedness
Loans payable, fair value		10,790,000
Mortgage debt assumed		10,740,000
Marketplace at Hilltop \| Operating Partnership
Indebtedness
Mortgage debt assumed		$ 10,800,000

Indebtedness -Schedule of Debt Assumed (Details) - USD ($) $ in Thousands	May 23, 2019	May 22, 2019
Redmill North
Indebtedness
Note balance at assumption	$ 4,451
Loans payable, fair value	$ 4,520
Loan interest rate	4.73%
Redmill South
Indebtedness
Note balance at assumption	$ 6,310
Loans payable, fair value	$ 6,090
Loan interest rate	3.57%
Redmill Central
Indebtedness
Note balance at assumption	$ 2,640
Loans payable, fair value	$ 2,690
Loan interest rate	4.80%
Redmill West
Indebtedness
Note balance at assumption	$ 11,548
Loans payable, fair value	$ 11,540
Loan interest rate	4.23%
Marketplace at Hilltop
Indebtedness
Note balance at assumption	$ 10,740
Loans payable, fair value	$ 10,790
Loan interest rate	4.42%
Red Mill Commons And Marketplace At Hilltop
Indebtedness
Note balance at assumption	$ 35,689
Loans payable, fair value	35,630
Operating Partnership \| Marketplace at Hilltop
Indebtedness
Note balance at assumption	10,800
Operating Partnership \| Red Mill Commons And Marketplace At Hilltop
Indebtedness
Note balance at assumption	$ 35,600	$ 35,700

Derivative Financial Instruments Derivative Financial Instruments - Schedule of LIBOR interest rate caps (Details) - USD ($)	Jun. 30, 2019	May 15, 2019	Dec. 31, 2018	Dec. 11, 2018	Jul. 16, 2018	Mar. 07, 2018	Nov. 28, 2017	Sep. 18, 2017	Jun. 23, 2017
Derivative [Line Items]
Notional Amount	$ 647,326,000		$ 513,208,000
Interest Rate Caps \| LIBOR
Derivative [Line Items]
Notional Amount	400,000,000	$ 100,000,000		$ 50,000,000	$ 50,000,000	$ 50,000,000	$ 50,000,000	$ 50,000,000	$ 50,000,000
Strike Rate		2.50%		2.75%	2.50%	2.25%	1.50%	1.50%	1.50%
Premium Paid	$ 1,839,000	$ 288,000		$ 210,000	$ 319,000	$ 310,000	$ 359,000	$ 199,000	$ 154,000

Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended			6 Months Ended
	Mar. 11, 2019	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Derivative [Line Items]
Notional Amount		$ 647,326			$ 647,326		$ 513,208
Unrealized cash flow hedge losses		(3,459)	$ (1,003)	$ 0	(4,462)	$ 0
Realized cash flow hedge losses reclassified to net income		35	$ 72	$ 0	107	$ 0
Gain (loss) reclassified during next 12 months		(1,100)			(1,100)
Interest Rate Swaps
Derivative [Line Items]
Notional Amount		247,326			247,326
Not designated as accounting hedges
Derivative [Line Items]
Notional Amount		500,000			500,000		450,000
Not designated as accounting hedges \| Interest Rate Swaps
Derivative [Line Items]
Notional Amount		100,000			$ 100,000		$ 100,000
Line of credit \| Secured Debt \| Lightfoot Marketplace
Derivative [Line Items]
Proceeds from lines of credit	$ 7,400
Maximum
Derivative [Line Items]
Realized cash flow hedge losses reclassified to net income		$ 100

Derivative Financial Instruments - Schedule of Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Derivative [Line Items]
Notional Amount	$ 647,326			$ 647,326		$ 513,208
Asset, Fair Value	422			422		2,093
Liability, Fair Value	(8,266)			(8,266)		(2,474)
Change in fair value of interest rate derivatives	(1,933)		$ (11)	(3,396)	$ 958
Unrealized cash flow hedge losses	(3,459)	$ (1,003)	0	(4,462)	0
Total change in fair value of interest rate derivatives	(5,392)		(11)	(7,858)	958
Interest rate swaps
Derivative [Line Items]
Notional Amount	247,326			247,326
Total change in fair value of interest rate derivatives	(4,549)		5	(6,201)	353
Interest rate caps
Derivative [Line Items]
Total change in fair value of interest rate derivatives	(843)		$ (16)	(1,657)	$ 605
Not designated as accounting hedges
Derivative [Line Items]
Notional Amount	500,000			500,000		450,000
Asset, Fair Value	422			422		2,093
Liability, Fair Value	(2,186)			(2,186)		(749)
Not designated as accounting hedges \| Interest rate swaps
Derivative [Line Items]
Notional Amount	100,000			100,000		100,000
Asset, Fair Value	0			0		303
Liability, Fair Value	(2,186)			(2,186)		(749)
Not designated as accounting hedges \| Interest rate caps
Derivative [Line Items]
Notional Amount	400,000			400,000		350,000
Asset, Fair Value	422			422		1,790
Liability, Fair Value	0			0		0
Designated as accounting hedge \| Interest rate swaps
Derivative [Line Items]
Notional Amount	147,326			147,326		63,208
Asset, Fair Value	0			0		0
Liability, Fair Value	$ (6,080)			$ (6,080)		$ (1,725)

Derivative Financial Instruments - Floating-to-Fixed Interest Rate Swaps (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Derivative [Line Items]
Notional Amount	$ 647,326	$ 513,208
Interest rate swaps
Derivative [Line Items]
Notional Amount	247,326
Not designated as accounting hedges
Derivative [Line Items]
Notional Amount	500,000	450,000
Not designated as accounting hedges \| Interest rate swaps
Derivative [Line Items]
Notional Amount	100,000	100,000
Not designated as accounting hedges \| Senior Unsecured Term Loan 2.00% \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 50,000
Fixed interest rate	2.00%
Effective interest rate	3.50%
Not designated as accounting hedges \| Senior Unsecured Term Loan 1.50% \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 50,000
Fixed interest rate	2.78%
Effective interest rate	4.28%
Designated as accounting hedge \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 147,326	$ 63,208
Designated as accounting hedge \| John Hopkins Village \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 52,256
Fixed interest rate	2.94%
Effective interest rate	4.19%
Designated as accounting hedge \| Lightfoot Marketplace \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 10,500
Fixed interest rate	3.02%
Effective interest rate	4.77%
Designated as accounting hedge \| 249 Central Park Retail, South Retail, and Fountain Plaza Retail \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 34,570
Fixed interest rate	2.25%
Effective interest rate	3.85%
Designated as accounting hedge \| Senior Unsecured Term Loan 2.26% \| Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 50,000
Fixed interest rate	2.26%
Effective interest rate	3.76%

Equity - Additional Information (Details)											1 Months Ended	3 Months Ended				6 Months Ended
Equity - Additional Information (Details)	Jul. 03, 2019 USD ($)	Jul. 01, 2019 shares	Jun. 18, 2019 USD ($) ft² $ / shares shares	May 30, 2019 USD ($) shares	May 23, 2019 USD ($) shares	May 07, 2019 $ / shares	Apr. 04, 2019 USD ($)	Jan. 03, 2019 USD ($)	Jan. 02, 2019 shares	Feb. 26, 2018 USD ($)	Jul. 31, 2019 USD ($) $ / shares shares	Jun. 30, 2019 USD ($) $ / shares shares	Mar. 31, 2019 $ / shares	Jun. 30, 2018 $ / shares	Mar. 31, 2018 $ / shares	Jun. 30, 2019 USD ($) $ / shares shares	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($) $ / shares shares
Class of Stock
Preferred stock issued (in shares) \| shares												2,530,000				2,530,000		0
Preferred stock, par value (in dollars per share) \| $ / shares												$ 0.01				$ 0.01		$ 0.01
Percentage of Operating Partnership held												71.40%				71.40%		74.50%
Aggregate cash dividends and distributions, paid																$ 28,003,000	$ 24,337,000
Dividends and distributions declared per common share and unit (in dollars per share) \| $ / shares						$ 0.21						$ 0.20	$ 0.21	$ 0.21	$ 0.20
Class A units
Class of Stock
Class A Units not held by Company (in shares) \| shares												21,177,692				21,177,692
Class A units \| Operating Partnership
Class of Stock
Number of shares issued (in shares) \| shares				60,000	4,125,759
Business acquisition, equity interest issued or issuable, value assigned				$ 1,000,000.0	$ 68,100,000
Business acquisition, percentage of voting interests acquired				35.00%
Aggregate cash dividends and distributions, paid							$ 3,600,000	$ 3,400,000
Common stock
Class of Stock
Shares issued (in shares) \| shares									118,471
Aggregate cash dividends and distributions, paid							$ 11,000,000.0	$ 10,000,000.0
New ATM Program
Class of Stock
Consideration received on transaction																$ 37,800,000
New ATM Program \| Common stock
Class of Stock
Maximum aggregate offering price of shares to be sold (up to)										$ 125,000,000.0
Shares issued (in shares) \| shares																2,522,186
Weighted average price (in dollars per share) \| $ / shares												$ 15.16				$ 15.16
Subsequent Event \| Class A units \| Operating Partnership
Class of Stock
Aggregate cash dividends and distributions, paid	$ 4,400,000
Subsequent Event \| Common stock
Class of Stock
Aggregate cash dividends and distributions, paid	$ 11,100,000
Subsequent Event \| New ATM Program
Class of Stock
Consideration received on transaction											$ 1,000,000.0
Subsequent Event \| New ATM Program \| Common stock
Class of Stock
Shares issued (in shares) \| shares											62,823
Weighted average price (in dollars per share) \| $ / shares											$ 16.84
Noncontrolling interests in investment entities
Class of Stock
Liquidation preference												$ 63,300,000				$ 63,300,000
Consolidated Entities Under Development Or Construction \| Operating Partnership
Class of Stock
Ownership interest percentage in properties												$ 0				$ 0		$ 0
Redeemable convertible preferred stock
Class of Stock
Preferred stock issued (in shares) \| shares			2,530,000
Preferred Stock dividend rate percentage			6.75%													6.75%
Preferred stock, dividends, not yet paid (in dollars per share) \| $ / shares																$ 0.0609
Preferred stock, par value (in dollars per share) \| $ / shares			$ 0.01
Preferred stock, liquidation preference (in dollars per share) \| $ / shares			$ 25.00
Proceeds from issuance of preferred stock			$ 61,300,000
Preferred stock, redemption price (in usd per unit) \| $ / shares												$ 25.00				$ 25.00
Redeemable convertible preferred stock \| Over-Allotment Option
Class of Stock
Preferred stock issued (in shares) \| shares			330,000
Series A Cumulative Redeemable Perpetual Preferred Units
Class of Stock
Preferred stock issued (in shares) \| shares			2,530,000
Preferred Stock dividend rate percentage			6.75%
Class A Units \| Subsequent Event \| Common stock
Class of Stock
Shares issued (in shares) \| shares		125,118
Thames Street Wharf
Class of Stock
Area of Real Estate Property \| ft²			263,426
1405 Point \| Noncontrolling interests in investment entities \| Operating Partnership
Class of Stock
Ownership interest percentage in properties												$ 4,600,000				$ 4,600,000

Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation expense	$ 0.5	$ 0.4	$ 1.5	$ 1.2
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock granted (in shares)			152,292
Restricted stock granted, grant date fair value (in dollars per share)			$ 15.39
Employee restricted stock award, vesting period			2 years
Non-employee restricted stock award vest grant over period			1 year
Nonvested restricted shares outstanding (in shares)	144,426		144,426
Unrecognized compensation cost	$ 1.5		$ 1.5
Unrecognized compensation cost, recognition period			21 months
Restricted Stock \| Grant Date
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 \| Second Anniversary
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, vesting percentage			33.33%
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock granted (in shares)			10,755
Restricted stock granted, grant date fair value (in dollars per share)			$ 15.42
Amended and Restated 2013 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares reserved for issuance (in shares)	1,700,000		1,700,000
Shares available for issuance (in shares)	895,257		895,257
Long Term Incentive Plan \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award
Performance period			3 years
Service period			2 years

Fair Value of Financial Instruments - Carrying Amounts and Fair Values of Financial Instruments Measured based on Level Two Inputs (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Carrying Value
Fair Value of Financial Instruments
Indebtedness	$ 949,345	$ 694,239
Notes receivable	144,743	138,683
Interest rate swap liabilities	8,266	2,474
Interest rate swap and cap assets	422	2,093
Fair Value
Fair Value of Financial Instruments
Indebtedness	952,641	688,437
Notes receivable	144,743	138,683
Interest rate swap liabilities	8,266	2,474
Interest rate swap and cap assets	$ 422	$ 2,093

Related Party Transactions - Additional Information (Details) - USD ($)		3 Months Ended		6 Months Ended
	May 13, 2013	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Construction Contracts
Related Party Transactions
Revenue from contracts with affiliated entities		$ 0	$ 300,000	$ 0	$ 1,500,000
Gross profit from related parties		0	100,000	0	300,000
Real Estate Service Fees
Related Party Transactions
Revenue from contracts with affiliated entities		0	0	0	0
Cost Reimbursements
Related Party Transactions
Revenue from contracts with affiliated entities		$ 0	$ 0	$ 0	$ 0
Tax Protection Agreements \| Operating Partnership
Related Party Transactions
Future sale period for properties	7 years
Future sale period for properties in limited number of cases	10 years

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Commitments and Contingencies
Line of credit, performance and payment bonds	$ 29,000	$ 34,800
Operating Partnership
Commitments and Contingencies
Credit facility, amount outstanding	300	$ 2,100
Financial Guarantee
Commitments and Contingencies
Guarantor obligations, maximum exposure (up to)	$ 56,734

Commitments and Contingencies Commitments and Contingencies - Guarantees (Details) - Financial Guarantee - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 08, 2019
Commitments and Contingencies
Guarantor obligations, maximum exposure (up to)	$ 56,734
The Residences at Annapolis Junction
Commitments and Contingencies
Guarantor obligations, maximum exposure (up to)	8,300
Delray Plaza
Commitments and Contingencies
Guarantor obligations, maximum exposure (up to)	5,180	$ 5,200
Nexton Square
Commitments and Contingencies
Guarantor obligations, maximum exposure (up to)	12,600
Interlock Commercial
Commitments and Contingencies
Guarantor obligations, maximum exposure (up to)	$ 30,654

Label

Element

Value

Cumulative Effect of New Accounting Principle in Period of Adoption

us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption

$ (167,000)

Parent [Member]

Cumulative Effect of New Accounting Principle in Period of Adoption

us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption

(125,000)

Accumulated Distributions in Excess of Net Income [Member]

Cumulative Effect of New Accounting Principle in Period of Adoption

us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption

(125,000)

Noncontrolling Interests In Operating Partnership [Member]

Cumulative Effect of New Accounting Principle in Period of Adoption

us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption

$ (42,000)

[1]	The Company recorded cumulative effect adjustments related to the new lease standard in the first quarter of 2019. See "Financial Statements — Note 2 — Significant Accounting Policies — Recent Accounting Pronouncements” for additional information.