Quarterly report pursuant to Section 13 or 15(d)

Property Portfolio (Tables)

v3.10.0.1
Property Portfolio (Tables)
9 Months Ended
Sep. 30, 2018
Property, Plant and Equipment [Table Text Block]
A rollforward of the gross investment in land, building and improvements as of September 30, 2018, resulting from these acquisitions is as follows:
 
 
 
Land
 
 
Building
 
 
Site & Tenant

Improvements
 
 
Acquired Lease

Intangibles
 
 
Gross Investment in

Real Estate
 
Balances as of January 1, 2018
 
$
42,701
 
 
$
384,338
 
 
$
12,818
 
 
$
31,650
 
 
$
471,507
 
Facility Acquired – Date Acquired:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Moline / Silvis – 1/24/18
 
 
-
 
 
 
4,895
 
 
 
1,216
 
 
 
989
 
 
 
7,100
 
Freemont – 2/9/18
 
 
162
 
 
 
8,335
 
 
 
-
 
 
 
-
 
 
 
8,497
 
Gainesville – 2/23/18
 
 
625
 
 
 
9,885
 
 
 
-
 
 
 
-
 
 
 
10,510
 
Dallas – 3/1/18
 
 
6,272
 
 
 
17,012
 
 
 
-
 
 
 
-
 
 
 
23,284
 
Orlando – 3/22/18
 
 
2,543
 
 
 
11,720
 
 
 
756
 
 
 
1,395
 
 
 
16,414
 
Belpre – 4/19/18
 
 
3,025
 
 
 
50,526
 
 
 
3,966
 
 
 
7,166
 
 
 
64,683
 
McAllen – 7/3/18
 
 
1,099
 
 
 
4,296
 
 
 
 
 
 
 
 
 
 
 
5,395
 
Derby – 8/3/18
 
 
412
 
 
 
2,496
 
 
 
243
 
 
 
453
 
 
 
3,604
 
Tenant improvements
(1)
 
 
-
 
 
 
-
 
 
 
2,043
 
 
 
-
 
 
 
2,043
 
Total Additions
(2)
:
 
 
14,138
 
 
 
109,165
 
 
 
8,224
 
 
 
10,003
 
 
 
141,530
 
Balances as of September 30, 2018
 
$
56,839
 
 
$
493,503
 
 
$
21,042
 
 
$
41,653
 
 
$
613,037
 
 
(1)
Represents tenant improvements that were completed and placed in service during the three months ended September 30, 2018 related to the Silvis and Sherman facilities that were acquired in January 2018 and June 2017, respectively. These amounts were recorded as construction-in-process within the “Other Assets” line item in the Company’s Consolidated Balance Sheet as of June 30, 2018, and reclassified to investment in real estate once completed.
 
(2)
The Belpre acquisition included $4,742 of OP Units issued as part of the total consideration for the transaction. As indicated in (1) above, $2,043 of completed construction-in-process costs were reclassified to investment in real estate during the three months ended September 30, 2018. Additionally, an aggregate of $894 of intangible liabilities were acquired from the acquisitions that occurred during the nine months ended September 30, 2018. Accordingly, the total addition to gross investment in real estate funded with cash was $133,851.
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]
The following is a summary of the carrying amount of intangible assets and liabilities as of the dates presented:
 
 
 
As of September 30, 2018
 
 
 
Cost
 
 
Accumulated
Amortization
 
 
Net
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
In-place leases
 
$
21,171
 
 
$
(3,374
)
 
$
17,797
 
Above market ground lease
 
 
707
 
 
 
(22
)
 
 
685
 
Above market leases
 
 
7,381
 
 
 
(840
)
 
 
6,541
 
Leasing costs
 
 
12,394
 
 
 
(1,386
)
 
 
11,008
 
 
 
$
41,653
 
 
$
(5,622
)
 
$
36,031
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Below market leases
 
$
2,284
 
 
$
(250
)
 
$
2,034
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
Cost
 
 
Accumulated
Amortization
 
 
Net
 
Assets
 
 
 
 
 
 
 
 
 
In-place leases
 
$
17,061
 
 
$
(1,577
)
 
$
15,484
 
Above market ground lease
 
 
488
 
 
 
(6
)
 
 
482
 
Above market leases
 
 
4,625
 
 
 
(220
)
 
 
4,405
 
Leasing costs
 
 
9,476
 
 
 
(538
)
 
 
8,938
 
 
 
$
31,650
 
 
$
(2,341
)
 
$
29,309
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Below market leases
 
$
1,389
 
 
$
(98
)
 
$
1,291
 
Finite-lived Intangible Assets Amortization Expense [Table Text Block]
The following is a summary of the acquired lease intangible amortization:
 
 
 
Three Months Ended
September 30,
 
 
Nine Months Ended
September 30,
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
Amortization expense related to in-place leases
 
$
647
 
 
$
388
 
 
$
1,797
 
 
$
1,022
 
Amortization expense related to leasing costs
 
$
307
 
 
$
135
 
 
$
848
 
 
$
304
 
Decrease in rental revenue related to above market ground lease
 
$
6
 
 
$
2
 
 
$
16
 
 
$
4
 
Decrease in rental revenue related to above market leases
 
$
240
 
 
$
55
 
 
$
620
 
 
$
73
 
Increase in rental revenue related to below market leases
 
$
56
 
 
$
32
 
 
$
152
 
 
$
63
 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]
As of September 30, 2018, scheduled future aggregate net amortization of the acquired lease intangible assets and liabilities for each fiscal year ended December 31 is listed below:
 
 
 
Net Decrease

in Revenue
 
 
Net Increase

in Expenses
 
2018 (three months remaining)
 
$
(189
)
 
$
958
 
2019
 
 
(653
)
 
 
3,722
 
2020
 
 
(602
)
 
 
3,668
 
2021
 
 
(605
)
 
 
3,053
 
2022
 
 
(606
)
 
 
2,744
 
Thereafter
 
 
(2,537
)
 
 
14,660
 
Total
 
$
(5,192
)
 
$
28,805
 
Silvis Facilities [Member]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]
The aggregate purchase price for the Moline/Silvis facilities was $6.9 million. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed for this acquisition:
 
Site improvements
 
$
249
 
Building and tenant improvements
 
 
5,862
 
In-place leases
 
 
343
 
Above market ground lease intangibles
 
 
219
 
Leasing costs
 
 
427
 
Below market lease intangibles
 
 
(229
)
Total purchase price
 
$
6,871
 
Orlando Facilities [Member]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]
The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:
 
Land and site improvements
 
$
3,075
 
Building and tenant improvements
 
 
11,944
 
In-place leases
 
 
808
 
Above market lease intangibles
 
 
229
 
Leasing costs
 
 
358
 
Below market lease intangibles
 
 
(10
)
Total purchase price
 
$
16,404
 
Belpre Portfolio [Member]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:
 
Land and site improvements
 
$
3,997
 
Building and tenant improvements
 
 
53,520
 
In-place leases
 
 
2,660
 
Above market lease intangibles
 
 
2,527
 
Leasing costs
 
 
1,979
 
Below market lease intangibles
 
 
(632
)
Total purchase price
 
$
64,051
 
Derby Facility [Member]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:
 
Land and site improvements
 
$
566
 
Building and tenant improvements
 
 
2,585
 
In-place leases
 
 
299
 
Above market lease intangibles
 
 
 
 
Leasing costs
 
 
154
 
Below market lease intangibles
 
 
(23
)
Total purchase price
 
$
3,581