Property Portfolio (Tables)
|
9 Months Ended |
Sep. 30, 2020 |
|---|
| Schedule of Properties Acquired |
A rollforward of the gross investment in land, building, improvements, and acquired lease intangible assets as of September 30, 2020 resulting from these acquisitions is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
Site |
|
Tenant |
|
Acquired Lease |
|
Gross Investment in |
|
|
Land |
|
Building |
|
Improvements |
|
Improvements |
|
Intangible Assets |
|
Real Estate |
Balances as of December 31, 2019 |
|
$ |
95,381 |
|
$ |
693,533 |
|
$ |
9,912 |
|
$ |
33,909 |
|
$ |
72,794 |
|
$ |
905,529 |
Facility Acquired – Date Acquired: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High Point – 2/13/20 |
|
|
1,749 |
|
|
20,367 |
|
|
440 |
|
|
869 |
|
|
1,656 |
|
|
25,081 |
Clinton – 2/27/20 |
|
|
664 |
|
|
6,551 |
|
|
342 |
|
|
1,578 |
|
|
2,484 |
|
|
11,619 |
West Allis – 3/4/20 |
|
|
974 |
|
|
7,687 |
|
|
137 |
|
|
98 |
|
|
461 |
|
|
9,357 |
Grand Rapids – 3/20/20 |
|
|
2,947 |
|
|
17,341 |
|
|
470 |
|
|
450 |
|
|
1,582 |
|
|
22,790 |
Dumfries – 4/27/20 |
|
|
2,597 |
|
|
10,047 |
|
|
289 |
|
|
4,815 |
|
|
4,292 |
|
|
22,040 |
Centerville – 7/16/20 |
|
|
— |
|
|
4,202 |
|
|
160 |
|
|
208 |
|
|
501 |
|
|
5,071 |
Fairfax – 7/17/20 |
|
|
6,731 |
|
|
6,642 |
|
|
381 |
|
|
2,979 |
|
|
3,012 |
|
|
19,745 |
Rosedale – 7/31/20 |
|
|
2,856 |
|
|
16,204 |
|
|
567 |
|
|
1,443 |
|
|
2,821 |
|
|
23,891 |
Lancaster – 9/18/20 |
|
|
696 |
|
|
4,269 |
|
|
110 |
|
|
116 |
|
|
1,114 |
|
|
6,305 |
Winston-Salem – 9/30/20 |
|
|
1,524 |
|
|
6,407 |
|
|
254 |
|
|
307 |
|
|
748 |
|
|
9,240 |
Capitalized costs(1) |
|
|
4 |
|
|
309 |
|
|
206 |
|
|
193 |
|
|
— |
|
|
712 |
Total Additions: |
|
|
20,742 |
|
|
100,026 |
|
|
3,356 |
|
|
13,056 |
|
|
18,671 |
|
|
155,851 |
Balances as of September 30, 2020 |
|
$ |
116,123 |
|
$ |
793,559 |
|
$ |
13,268 |
|
$ |
46,965 |
|
$ |
91,465 |
|
$ |
1,061,380 |
|
(1) |
Represents capital projects that were completed and placed in service during the nine months ended September 30, 2020 related to the Company’s existing facilities. |
A rollforward of the gross investment in land, building, improvements, and acquired lease intangible assets as of December 31, 2019 resulting from these acquisitions is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Site |
|
Tenant |
|
Acquired Lease |
|
Gross Investment in |
|
|
Land |
|
Building |
|
Improvements |
|
Improvements |
|
Intangible Assets |
|
Real Estate |
Balances as of December 31, 2018 |
|
$ |
63,710 |
|
$ |
518,451 |
|
$ |
6,880 |
|
$ |
15,357 |
|
$ |
43,152 |
|
$ |
647,550 |
Facility Acquired – Date Acquired: |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zachary – 2/28/19 |
|
|
— |
|
|
3,336 |
|
|
103 |
|
|
409 |
|
|
835 |
|
|
4,683 |
Gilbert and Chandler – 3/19/19 |
|
|
4,616 |
|
|
11,643 |
|
|
— |
|
|
— |
|
|
— |
|
|
16,259 |
Las Vegas – 4/15/19 |
|
|
2,479 |
|
|
15,277 |
|
|
244 |
|
|
2,205 |
|
|
2,297 |
|
|
22,502 |
Oklahoma Northwest – 4/15/19 |
|
|
2,364 |
|
|
19,501 |
|
|
143 |
|
|
3,044 |
|
|
3,155 |
|
|
28,207 |
Mishawaka – 4/15/19 |
|
|
1,924 |
|
|
10,084 |
|
|
74 |
|
|
1,798 |
|
|
2,223 |
|
|
16,103 |
Surprise – 4/15/19 |
|
|
1,738 |
|
|
18,737 |
|
|
228 |
|
|
4,119 |
|
|
3,860 |
|
|
28,682 |
San Marcos – 7/12/19 |
|
|
2,322 |
|
|
6,934 |
|
|
126 |
|
|
404 |
|
|
2,188 |
|
|
11,974 |
Lansing – 8/1/19 |
|
|
1,202 |
|
|
7,681 |
|
|
185 |
|
|
667 |
|
|
1,633 |
|
|
11,368 |
Bannockburn – 8/5/19 |
|
|
763 |
|
|
3,566 |
|
|
132 |
|
|
1,134 |
|
|
1,382 |
|
|
6,977 |
Aurora – 8/6/19 |
|
|
1,521 |
|
|
7,446 |
|
|
308 |
|
|
603 |
|
|
2,679 |
|
|
12,557 |
Livonia – 8/14/19 |
|
|
980 |
|
|
7,629 |
|
|
201 |
|
|
442 |
|
|
1,340 |
|
|
10,592 |
Gilbert – 8/23/19 |
|
|
2,408 |
|
|
2,027 |
|
|
62 |
|
|
362 |
|
|
733 |
|
|
5,592 |
Morgantown – 9/26/19 |
|
|
883 |
|
|
5,286 |
|
|
373 |
|
|
506 |
|
|
902 |
|
|
7,950 |
Beaumont – 10/1/19 |
|
|
3,022 |
|
|
24,836 |
|
|
399 |
|
|
1,036 |
|
|
4,446 |
|
|
33,739 |
Bastrop – 10/25/19 |
|
|
1,975 |
|
|
8,436 |
|
|
64 |
|
|
276 |
|
|
1,314 |
|
|
12,065 |
Panama City – 10/31/19 |
|
|
1,559 |
|
|
8,682 |
|
|
220 |
|
|
1,036 |
|
|
1,479 |
|
|
12,976 |
Jacksonville – 11/15/19 |
|
|
1,023 |
|
|
7,846 |
|
|
— |
|
|
— |
|
|
— |
|
|
8,869 |
Greenwood – 12/17/19 |
|
|
892 |
|
|
4,956 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,848 |
ASC Topic 842 Reclassification |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(824) |
|
|
(824) |
Capitalized costs(1) |
|
|
— |
|
|
1,179 |
|
|
170 |
|
|
511 |
|
|
— |
|
|
1,860 |
Total Additions: |
|
|
31,671 |
|
|
175,082 |
|
|
3,032 |
|
|
18,552 |
|
|
29,642 |
|
|
257,979 |
Balances as of December 31, 2019 |
|
$ |
95,381 |
|
$ |
693,533 |
|
$ |
9,912 |
|
$ |
33,909 |
|
$ |
72,794 |
|
$ |
905,529 |
(1) |
Represents capital projects that were completed and placed in service during the year ended December 31, 2019 related to the Company’s existing facilities. |
|
| Summary of Carrying amount of intangible assets and liabilities |
The following is a summary of the carrying amount of intangible assets and liabilities as of the dates presented:
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2020 |
|
|
|
|
|
Accumulated |
|
|
|
|
|
Cost |
|
Amortization |
|
Net |
Assets |
|
|
|
|
|
|
|
|
|
In-place leases |
|
$ |
51,451 |
|
$ |
(12,647) |
|
$ |
38,804 |
Above market leases |
|
|
14,384 |
|
|
(3,565) |
|
|
10,819 |
Leasing costs |
|
|
25,630 |
|
|
(5,475) |
|
|
20,155 |
|
|
$ |
91,465 |
|
$ |
(21,687) |
|
$ |
69,778 |
Liability |
|
|
|
|
|
|
|
|
|
Below market leases |
|
$ |
10,045 |
|
$ |
(1,424) |
|
$ |
8,621 |
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2019 |
|
|
|
|
|
Accumulated |
|
|
|
|
|
Cost |
|
Amortization |
|
Net |
Assets |
|
|
|
|
|
|
|
|
|
In-place leases |
|
$ |
39,429 |
|
$ |
(7,851) |
|
$ |
31,578 |
Above market leases |
|
|
12,246 |
|
|
(2,366) |
|
|
9,880 |
Leasing costs |
|
|
21,119 |
|
|
(3,458) |
|
|
17,661 |
|
|
$ |
72,794 |
|
$ |
(13,675) |
|
$ |
59,119 |
Liability |
|
|
|
|
|
|
|
|
|
Below market leases |
|
$ |
3,861 |
|
$ |
(697) |
|
$ |
3,164 |
|
| Summary of the acquired lease intangible amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Amortization expense related to in-place leases |
|
$ |
1,800 |
|
$ |
1,033 |
|
$ |
4,796 |
|
$ |
2,562 |
|
Amortization expense related to leasing costs |
|
$ |
744 |
|
$ |
467 |
|
$ |
2,017 |
|
$ |
1,195 |
|
Decrease in rental revenue related to above market leases |
|
$ |
421 |
|
$ |
343 |
|
$ |
1,199 |
|
$ |
895 |
|
Increase in rental revenue related to below market leases |
|
$ |
352 |
|
$ |
114 |
|
$ |
727 |
|
$ |
261 |
|
|
| Schedule of net amortization acquired lease intangible assets and liabilities |
As of September 30, 2020, scheduled future aggregate net amortization of the acquired lease intangible assets and liabilities for each year ended December 31 is listed below:
|
|
|
|
|
|
|
|
|
Net (Decrease) |
|
|
|
|
|
Increase |
|
Net Increase |
|
|
in Revenue |
|
in Expenses |
2020 (three months remaining) |
|
$ |
(22) |
|
$ |
2,644 |
2021 |
|
|
(91) |
|
|
9,970 |
2022 |
|
|
(107) |
|
|
9,554 |
2023 |
|
|
(145) |
|
|
8,633 |
2024 |
|
|
51 |
|
|
7,343 |
Thereafter |
|
|
(1,884) |
|
|
20,815 |
Total |
|
$ |
(2,198) |
|
$ |
58,959 |
|
| High Point Facility [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
2,189 |
Building and tenant improvements |
|
|
21,236 |
In-place leases |
|
|
1,207 |
Leasing costs |
|
|
449 |
Total purchase price |
|
$ |
25,081 |
|
| Clinton Facility [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
1,006 |
Building and tenant improvements |
|
|
8,129 |
In-place leases |
|
|
2,115 |
Leasing costs |
|
|
369 |
Total purchase price |
|
$ |
11,619 |
|
| West Allis Facility [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
1,111 |
Building and tenant improvements |
|
|
7,785 |
In-place leases |
|
|
263 |
Leasing costs |
|
|
198 |
Below-market lease intangibles |
|
|
(264) |
Total purchase price |
|
$ |
9,093 |
|
| Grand Rapids Facility [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
3,417 |
Building and tenant improvements |
|
|
17,791 |
In-place leases |
|
|
761 |
Above-market lease intangibles |
|
|
685 |
Leasing costs |
|
|
136 |
Below-market lease intangibles |
|
|
(125) |
Total purchase price |
|
$ |
22,665 |
|
| Dumfries Facility [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
2,886 |
Building and tenant improvements |
|
|
14,862 |
In-place leases |
|
|
3,255 |
Leasing costs |
|
|
1,037 |
Below-market lease intangibles |
|
|
(2,419) |
Total purchase price |
|
$ |
19,621 |
|
| Centerville Facility [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
160 |
Building and tenant improvements |
|
|
4,410 |
In-place leases |
|
|
216 |
Leasing costs |
|
|
285 |
Total purchase price |
|
$ |
5,071 |
|
| Fairfax Facility [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
7,112 |
Building and tenant improvements |
|
|
9,621 |
In-place leases |
|
|
2,314 |
Leasing costs |
|
|
698 |
Below-market lease intangibles |
|
|
(1,866) |
Total purchase price |
|
$ |
17,879 |
|
| Rosedale Facilities [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
3,423 |
Building and tenant improvements |
|
|
17,647 |
In-place leases |
|
|
1,063 |
Leasing costs |
|
|
892 |
Above-market lease intangibles |
|
|
866 |
Below-market lease intangibles |
|
|
(785) |
Total purchase price |
|
$ |
23,106 |
|
| Lancaster Facility [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
806 |
Building and tenant improvements |
|
|
4,385 |
In-place leases |
|
|
244 |
Leasing costs |
|
|
283 |
Above-market lease intangibles |
|
|
587 |
Total purchase price |
|
$ |
6,305 |
|
| Winston-Salem Facility [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
1,778 |
Building and tenant improvements |
|
|
6,714 |
In-place leases |
|
|
581 |
Leasing costs |
|
|
167 |
Below-market lease intangibles |
|
|
(725) |
Total purchase price |
|
$ |
8,515 |
|
| Zachary Facility [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
103 |
Building and tenant improvements |
|
|
3,745 |
In-place leases |
|
|
305 |
Above-market lease intangibles |
|
|
117 |
Leasing costs |
|
|
413 |
Below-market lease intangibles |
|
|
(34) |
Total purchase price |
|
$ |
4,649 |
|
| IRF Portfolio [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oklahoma |
|
|
|
|
|
Las Vegas |
|
Surprise |
|
City |
|
Mishawaka |
Land and site improvements |
|
$ |
2,723 |
|
$ |
1,966 |
|
$ |
2,507 |
|
$ |
1,998 |
Building and tenant improvements |
|
|
17,482 |
|
|
22,856 |
|
|
22,545 |
|
|
11,882 |
In-place leases |
|
|
1,778 |
|
|
1,845 |
|
|
1,890 |
|
|
1,465 |
Above-market lease intangibles |
|
|
— |
|
|
938 |
|
|
367 |
|
|
236 |
Leasing costs |
|
|
519 |
|
|
1,077 |
|
|
898 |
|
|
522 |
Below-market lease intangibles |
|
|
(863) |
|
|
— |
|
|
— |
|
|
— |
Total purchase price |
|
$ |
21,639 |
|
$ |
28,682 |
|
$ |
28,207 |
|
$ |
16,103 |
|
| San Marcos [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
2,448 |
Building and tenant improvements |
|
|
7,338 |
In-place leases |
|
|
698 |
Above-market lease intangibles |
|
|
1,101 |
Leasing costs |
|
|
389 |
Total purchase price |
|
$ |
11,974 |
|
| Lansing [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
1,387 |
Building and tenant improvements |
|
|
8,348 |
In-place leases |
|
|
953 |
Above-market lease intangibles |
|
|
130 |
Leasing costs |
|
|
550 |
Below-market lease intangibles |
|
|
(248) |
Total purchase price |
|
$ |
11,120 |
|
| Bannockburn [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
895 |
Building and tenant improvements |
|
|
4,700 |
In-place leases |
|
|
796 |
Above-market lease intangibles |
|
|
250 |
Leasing costs |
|
|
336 |
Below-market lease intangibles |
|
|
(144) |
Total purchase price |
|
$ |
6,833 |
|
| Aurora [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
1,829 |
Building and tenant improvements |
|
|
8,049 |
In-place leases |
|
|
1,417 |
Above-market lease intangibles |
|
|
861 |
Leasing costs |
|
|
401 |
Total purchase price |
|
$ |
12,557 |
|
| Livonia [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
1,181 |
Building and tenant improvements |
|
|
8,071 |
In-place leases |
|
|
1,252 |
Above-market lease intangibles |
|
|
53 |
Leasing costs |
|
|
35 |
Below-market lease intangibles |
|
|
(236) |
Total purchase price |
|
$ |
10,356 |
|
| Gilbert [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
2,470 |
Building and tenant improvements |
|
|
2,389 |
In-place leases |
|
|
121 |
Above-market lease intangibles |
|
|
300 |
Leasing costs |
|
|
312 |
Total purchase price |
|
$ |
5,592 |
|
| Morgantown [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
1,256 |
Building and tenant improvements |
|
|
5,792 |
In-place leases |
|
|
457 |
Leasing costs |
|
|
445 |
Total purchase price |
|
$ |
7,950 |
|
| Beaumont [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
3,421 |
Building and tenant improvements |
|
|
25,872 |
In-place leases |
|
|
3,304 |
Leasing costs |
|
|
1,142 |
Total purchase price |
|
$ |
33,739 |
|
| Bastrop [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
2,039 |
Building and tenant improvements |
|
|
8,712 |
In-place leases |
|
|
990 |
Leasing costs |
|
|
324 |
Total purchase price |
|
$ |
12,065 |
|
| Panama City [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
1,779 |
Building and tenant improvements |
|
|
9,718 |
In-place leases |
|
|
405 |
Leasing costs |
|
|
1,074 |
Total purchase price |
|
$ |
12,976 |
|
| Jacksonville [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
1,023 |
Building and tenant improvements |
|
|
7,846 |
Total purchase price |
|
$ |
8,869 |
|
| Greenwood [Member] |
|
| Schedule of tangible and intangible assets |
|
|
|
|
Land and site improvements |
|
$ |
892 |
Building and tenant improvements |
|
|
4,956 |
Total purchase price |
|
$ |
5,848 |
|