Related Party Transactions |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Related Party Transactions We engage in certain business transactions with related parties, including but not limited to asset acquisition and dispositions of real estate. Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to or in our best interest. Pillar and Regis are wholly owned by a subsidiary of May Realty Holdings, Inc. ("MRHI"), which owns approximately 90.8% of ARL, which in turn owns approximately 78.4% of the Company. Pillar is compensated for advisory services in accordance with an advisory agreement and is compensated for development services in accordance with project specific agreements. Regis receives property management fees and leasing commissions in accordance with the terms of its property-level management agreement. In addition, Regis is entitled to receive real estate brokerage commissions in accordance with the terms of a non-exclusive brokerage agreement. Rental income includes $144 and $158 for the three months ended June 30, 2025 and 2024, respectively, and $289 and $336 for the six months ended June 30, 2025 and 2024, respectively, for office space leased to Pillar and Regis. Property operating expense includes $88 and $86 for the three months ended June 30, 2025 and 2024, respectively, and $174 and $166 for the six months ended June 30, 2025 and 2024, respectively, for management fees on commercial properties payable to Regis. General and administrative expense includes $1,025 and $895 for the three months ended June 30, 2025 and 2024, respectively, and $1,996 and $1,809 for the six months ended June 30, 2025 and 2024, respectively, for employee compensation and other reimbursable costs payable to Pillar. Advisory fees paid to Pillar were $2,005 and $1,680 for the three months ended June 30, 2025 and 2024, respectively, and $4,436 and $3,845 for the six months ended June 30, 2025 and 2024, respectively. Development fees paid to Pillar were $488 and $587 for the three months ended June 30, 2025 and 2024, respectively, and $1,218 and $1,625 for the six months ended June 30, 2025 and 2024, respectively. Notes receivable include amounts held by UHF (See Note 9 – Notes Receivable). UHF is deemed to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. In addition, we have a related party receivable from Pillar ("Pillar Receivable"), which represents amounts advanced to Pillar net of unreimbursed fees, expenses and costs as provided above. The Pillar Receivable bears interest in accordance with a cash management agreement. On January 1, 2024, an amendment to the cash management agreement changed the interest rate on the Pillar Receivable from prime plus one percent to SOFR. Interest income on the UHF notes and the Pillar Receivable was $2,521 and $2,681 for the three months ended June 30, 2025 and 2024, respectively, and $5,038 and $5,373 for the six months ended June 30, 2025 and 2024, respectively.
|