Depreciation Expense

Depreciation expense for the three months ended March 31, 2021 was $7.8 million, compared to $5.8 million for the same period in 2020, an increase of $2.0 million. The increase resulted primarily from depreciation expense incurred on the facilities that we acquired after March 31, 2020, as well as from the recognition of a full three months of depreciation expense in 2021 from intangible assets recorded during the three months ended March 31, 2020.

Amortization Expense

Amortization expense for the three months ended March 31, 2021 was $3.0 million, compared to $1.9 million for the same period in 2020, an increase of $1.1 million. The increase resulted primarily from amortization expense incurred on intangible assets acquired after March 31, 2020, as well as from the recognition of a full three months of amortization expense in 2021 from intangible assets recorded during the three months ended March 31, 2020.

Interest Expense

Interest expense for the three months ended March 31, 2021 was $5.0 million, compared to $4.4 million for the same period in 2020, an increase of $0.6 million. This increase was due to higher average borrowings during the three months ended March 31, 2021, compared to the same period last year, the proceeds of which were used to partially finance our property acquisitions during that time period.

The weighted average interest rate of our debt for the three months ended March 31, 2021 was 3.17% compared to 3.81% for the three months ended March 31, 2020. Additionally, the weighted average interest rate and term of our debt was 3.66% and 2.58 years at March 31, 2021.

Management Internalization Expense

As a result of the completion of the management internalization transaction in July 2020, we had no management internalization expense for the three months ended March 31, 2021. Management internalization expense was $0.5 million for the three months ended March 31, 2020.

Net Income

Net income for the three months ended March 31, 2021 was $3.3 million, compared to $2.8 million for the same period in 2020, an increase of $0.5 million.

Assets and Liabilities

As of March 31, 2021 and December 31, 2020, our principal assets consisted of investments in real estate, net, of $1.1 billion and $1.0 billion, respectively. Our liquid assets consisted primarily of cash and cash equivalents and restricted cash of $11.4 million and $10.8 million, as of March 31, 2021 and December 31, 2020, respectively.

The increase in our investments in real estate, net, to $1.1 billion as of March 31, 2021 compared to $1.0 billion as of December 31, 2020, was the result of the four acquisitions that we completed during the three months ended March 31, 2021.

The increase in our cash and cash equivalents and restricted cash balances to $11.4 million as of March 31, 2021, compared to $10.8 million as of December 31, 2020, was primarily due to net proceeds from common equity offerings. Cash inflows were partially offset by funds used to acquire real estate, paydown debt, and dividends paid to our common and preferred stockholders and OP Unit and LTIP Unit holders of our Operating Partnership.

The decrease in our total liabilities to $540.5 million as of March 31, 2021 compared to $643.1 million as of December 31, 2020, was primarily the result of lower net borrowings outstanding during the current period.

Public link

Please use the above public link if you want to share this noodl on another website.