| Schedule of Properties Acquired |
For this acquisition, substantially all of the fair value was concentrated in a single identifiable asset or group of similar identifiable assets and, therefore, the acquisition represented an asset acquisition. Accordingly, transaction costs for this acquisition were capitalized. A rollforward of the gross investment in land, building, improvements, and acquired lease intangible assets as of December 31, 2022 is as follows:
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Site |
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Tenant |
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Acquired Lease |
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Gross Investment in |
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Land |
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Building |
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Improvements |
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Improvements |
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Intangible Assets |
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Real Estate |
Balances as of December 31, 2021 |
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$ |
152,060 |
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$ |
985,091 |
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$ |
19,021 |
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$ |
58,900 |
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$ |
127,931 |
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$ |
1,343,003 |
Facility Acquired – Date Acquired: |
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Gainesville – 2/4/22 |
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555 |
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3,899 |
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76 |
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199 |
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575 |
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5,304 |
Grand Rapids – 2/28/22 |
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1,238 |
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4,976 |
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221 |
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270 |
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595 |
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7,300 |
Sarasota – 3/29/22 |
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747 |
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3,703 |
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84 |
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331 |
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1,263 |
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6,128 |
Greenwood – 3/30/22 |
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929 |
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4,332 |
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194 |
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360 |
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426 |
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6,241 |
Fairbanks – 4/1/22 |
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1,782 |
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12,262 |
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215 |
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753 |
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7,946 |
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22,958 |
Rocky Point – 4/8/22 |
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613 |
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6,243 |
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223 |
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317 |
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589 |
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7,985 |
Fairfax – 5/11/22 |
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4,012 |
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13,238 |
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399 |
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310 |
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3,304 |
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21,263 |
Lee's Summit – 5/19/22 |
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1,349 |
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4,101 |
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83 |
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410 |
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674 |
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6,617 |
Lexington – 5/27/22 |
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1,760 |
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11,350 |
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289 |
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556 |
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3,036 |
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16,991 |
Toledo – 7/8/22 |
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2,999 |
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11,366 |
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581 |
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1,247 |
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2,044 |
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18,237 |
Lake Geneva – 7/26/22 |
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444 |
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4,612 |
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141 |
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230 |
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725 |
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6,152 |
Glenview – 9/1/22 |
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1,448 |
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6,258 |
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241 |
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279 |
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912 |
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9,138 |
Canandaigua – 9/16/22 |
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578 |
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11,118 |
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370 |
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489 |
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1,493 |
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14,048 |
Hermitage – 9/20/22 |
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353 |
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3,891 |
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194 |
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227 |
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674 |
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5,339 |
Capitalized costs(1) |
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141 |
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1,419 |
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41 |
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1,416 |
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396 |
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3,413 |
Total Additions: |
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18,948 |
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102,768 |
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3,352 |
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7,394 |
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24,652 |
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157,114 |
Disposition of Germantown – 7/1/22 |
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(2,700) |
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(8,078) |
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(349) |
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(307) |
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(4,506) |
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(15,940) |
Balances as of December 31, 2022 |
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$ |
168,308 |
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$ |
1,079,781 |
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$ |
22,024 |
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$ |
65,987 |
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$ |
148,077 |
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$ |
1,484,177 |
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| Summary of Carrying amount of intangible assets and liabilities |
The following is a summary of the carrying amount of lease intangible assets and liabilities as of the dates presented:
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As of September 30, 2023 |
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Accumulated |
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Cost |
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Amortization |
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Net |
Assets |
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In-place leases |
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$ |
77,037 |
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$ |
(41,487) |
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$ |
35,550 |
Above market leases |
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24,961 |
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(9,499) |
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15,462 |
Leasing costs |
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36,619 |
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(17,345) |
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19,274 |
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$ |
138,617 |
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$ |
(68,331) |
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$ |
70,286 |
Liability |
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Below market leases |
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$ |
13,595 |
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$ |
(7,735) |
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$ |
5,860 |
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As of December 31, 2022 |
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Accumulated |
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Cost |
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Amortization |
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Net |
Assets |
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In-place leases |
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$ |
82,374 |
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$ |
(34,898) |
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$ |
47,476 |
Above market leases |
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26,054 |
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(7,321) |
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18,733 |
Leasing costs |
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39,649 |
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(14,683) |
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24,966 |
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$ |
148,077 |
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$ |
(56,902) |
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$ |
91,175 |
Liability |
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Below market leases |
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$ |
13,595 |
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$ |
(5,982) |
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$ |
7,613 |
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| Summary of the acquired lease intangible amortization |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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Amortization expense related to in-place leases |
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$ |
2,809 |
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$ |
3,003 |
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$ |
8,850 |
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$ |
8,537 |
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Amortization expense related to leasing costs |
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$ |
1,230 |
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$ |
1,262 |
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$ |
3,868 |
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$ |
3,599 |
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Decrease in rental revenue related to above market leases |
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$ |
818 |
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$ |
805 |
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$ |
2,565 |
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$ |
2,396 |
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Increase in rental revenue related to below market leases |
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$ |
(584) |
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$ |
(584) |
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$ |
(1,753) |
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$ |
(1,661) |
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| Schedule of net amortization acquired lease intangible assets and liabilities |
As of September 30, 2023, scheduled future aggregate net amortization of the acquired lease intangible assets and liabilities for each year ended December 31 is listed below:
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Net Decrease |
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Net Increase |
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in Revenue |
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in Expenses |
2023 (three months remaining) |
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$ |
(238) |
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$ |
3,968 |
2024 |
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(1,151) |
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14,211 |
2025 |
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(1,697) |
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10,524 |
2026 |
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(1,803) |
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8,701 |
2027 |
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(1,376) |
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|
6,116 |
Thereafter |
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(3,337) |
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|
11,304 |
Total |
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$ |
(9,602) |
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$ |
54,824 |
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