Property Portfolio (Tables)
|
9 Months Ended |
Sep. 30, 2019 |
|---|
| Schedule of Properties Acquired |
A rollforward of the gross investment in land, building and improvements as of September 30, 2019 resulting from these acquisitions as well as other tenant improvements and the implementation of ASC 842 is as follows:
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Site & 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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Intangible Assets
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Real Estate
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Balances as of December 31, 2018
|
|
$
|
63,710
|
|
$
|
518,451
|
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$
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22,237
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$
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43,152
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$
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647,550
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Facility Acquired – Date Acquired:
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Zachary – 2/28/19
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—
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3,336
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|
|
512
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|
835
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4,683
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Gilbert and Chandler – 3/19/19
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4,616
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11,643
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—
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—
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16,259
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Las Vegas – 4/15/19
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2,479
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15,277
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2,449
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2,297
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22,502
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Oklahoma Northwest – 4/15/19
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2,364
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19,501
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3,187
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3,155
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28,207
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Mishawaka – 4/15/19
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1,924
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10,084
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1,872
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2,223
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16,103
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Surprise – 4/15/19
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1,738
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18,737
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4,347
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3,860
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28,682
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San Marcos – 7/12/19
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2,322
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6,934
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530
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2,188
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11,974
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Lansing – 8/1/19
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1,202
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7,681
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852
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1,633
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11,368
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Bannockburn – 8/5/19
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731
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3,419
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1,214
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1,325
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6,689
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Aurora – 8/6/19
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1,521
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7,446
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911
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2,679
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12,557
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Livonia – 8/14/19
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980
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7,629
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643
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1,340
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10,592
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Gilbert – 8/23/19
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2,408
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2,027
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424
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733
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5,592
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Morgantown – 9/26/19
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883
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5,286
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879
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902
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7,950
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ASC 842 Reclassification
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—
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—
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—
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(824)
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(824)
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Site and Tenant improvements(1)
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—
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—
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508
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—
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508
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Capitalized costs(2)
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—
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54
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—
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—
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54
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Total Additions:
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23,168
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119,054
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18,328
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22,346
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182,896
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Balances as of September 30, 2019
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$
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86,878
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$
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637,505
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$
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40,565
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$
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65,498
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$
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830,446
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(1) Represents tenant improvements that were completed and placed in service during the nine months ended September 30, 2019 related to the Sherman facility that was acquired in June 2017 and the Bountiful facility that was acquired in October 2018. Also includes site improvements at the Watertown facility that was acquired in September 2016.
(2)Represents capitalized costs incurred during the nine months ended September 30, 2019 at the Derby facility that was acquired in August 2018.
A rollforward of the gross investment in land, building and improvements as of September 30, 2018, resulting from these acquisitions is as follows:
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Site & 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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Intangibles
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Real Estate
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Balances as of January 1, 2018
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$
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42,701
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$
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384,338
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$
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12,818
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$
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31,650
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$
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471,507
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Facility Acquired – Date Acquired:
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Moline / Silvis – 1/24/18
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-
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4,895
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1,216
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989
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7,100
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Freemont – 2/9/18
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162
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8,335
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—
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—
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8,497
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Gainesville – 2/23/18
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625
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9,885
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—
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—
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10,510
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Dallas – 3/1/18
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6,272
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17,012
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—
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—
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23,284
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Orlando – 3/22/18
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2,543
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11,720
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756
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1,395
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16,414
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Belpre – 4/19/18
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3,025
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50,526
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3,966
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7,166
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64,683
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McAllen – 7/3/18
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1,099
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4,296
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5,395
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Derby – 8/3/18
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412
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2,496
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243
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453
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3,604
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Tenant improvements(1)
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—
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—
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2,043
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—
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2,043
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Total Additions:
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14,138
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109,165
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8,224
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|
|
10,003
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141,530
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Balances as of September 30, 2018
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$
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56,839
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$
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493,503
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$
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21,042
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$
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41,653
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$
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613,037
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(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 September 30, 2018, and reclassified to investment in real estate once completed.
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| 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:
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As of September 30, 2019
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Accumulated
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Cost
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Amortization
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Net
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Assets
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In-place leases
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$
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34,697
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$
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(6,599)
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$
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28,098
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Above market leases
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12,236
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(1,991)
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10,245
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Leasing costs
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18,565
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(2,899)
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15,666
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$
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65,498
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$
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(11,489)
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$
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54,009
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Liabilities
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Below market leases
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$
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3,855
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$
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(568)
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$
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3,287
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As of December 31, 2018
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Accumulated
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Cost
|
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Amortization
|
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Net
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Assets
|
|
|
|
|
|
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In-place leases
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|
$
|
21,753
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$
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(4,037)
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$
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17,716
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Above market ground lease
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|
707
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(28)
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|
679
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Above market leases
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8,009
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(1,096)
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|
|
6,913
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|
Leasing costs
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|
|
12,683
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|
(1,703)
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|
|
10,980
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|
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$
|
43,152
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|
$
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(6,864)
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$
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36,288
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Liability
|
|
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Below market leases
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|
$
|
2,336
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|
$
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(308)
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|
$
|
2,028
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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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|
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September 30,
|
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September 30,
|
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|
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2019
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2018
|
|
2019
|
|
2018
|
|
Amortization expense related to in-place leases
|
|
$
|
1,033
|
|
$
|
647
|
|
$
|
2,562
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|
$
|
1,797
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Amortization expense related to leasing costs
|
|
$
|
467
|
|
$
|
307
|
|
$
|
1,195
|
|
$
|
848
|
|
Decrease in rental revenue related to above market leases
|
|
$
|
343
|
|
$
|
240
|
|
$
|
895
|
|
$
|
620
|
|
Increase in rental revenue related to below market leases
|
|
$
|
114
|
|
$
|
56
|
|
$
|
261
|
|
$
|
152
|
|
| Schedule of net amortization acquired lease intangible assets and liabilities |
As of September 30, 2019, scheduled future aggregate net amortization of the acquired lease intangible assets and liabilities for each fiscal 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
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2019 (three months remaining)
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|
$
|
(246)
|
|
$
|
1,655
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|
2020
|
|
|
(986)
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|
|
6,601
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|
2021
|
|
|
(988)
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|
|
5,987
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|
2022
|
|
|
(998)
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|
|
5,620
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|
2023
|
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(1,024)
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|
|
5,004
|
|
Thereafter
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|
|
(2,716)
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|
|
18,897
|
|
Total
|
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$
|
(6,958)
|
|
$
|
43,764
|
|
| Zachary Facility [Member] |
|
| Schedule of tangible and intangible assets |
The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:
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|
|
|
|
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 |
exclusive of tenant renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:
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|
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|
|
|
|
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|
|
|
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|
|
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Oklahoma
|
|
|
|
|
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Las Vegas
|
|
Surprise
|
|
Northwest
|
|
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 |
The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:
|
|
|
|
|
|
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 |
The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:
|
|
|
|
|
|
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
|
|
$
|
858
|
|
Building and tenant improvements
|
|
|
4,506
|
|
In-place leases
|
|
|
763
|
|
Above-market lease intangibles
|
|
|
240
|
|
Leasing costs
|
|
|
322
|
|
Below-market lease intangibles
|
|
|
(138)
|
|
Total purchase price
|
|
$
|
6,551
|
|
| Aurora [Member] |
|
| Schedule of tangible and intangible assets |
The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:
|
|
|
|
|
|
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 |
. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:
|
|
|
|
|
|
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 |
The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:
|
|
|
|
|
|
Land and site improvements
|
|
$
|
1,256
|
|
Building and tenant improvements
|
|
|
5,792
|
|
In-place leases
|
|
|
457
|
|
Leasing costs
|
|
|
445
|
|
Total purchase price
|
|
$
|
7,950
|
|
| Silvis facility [Member] |
|
| Schedule of tangible and intangible assets |
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 tangible and intangible assets |
exclusive of tenant renewal options. 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 tangible and intangible assets |
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 [Member] |
|
| Schedule of tangible and intangible assets |
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
|
|