Property Portfolio (Tables)
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6 Months Ended |
Jun. 30, 2024 |
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| Property Portfolio |
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| Schedule of Properties Acquired |
In June 2024, the Company sold an in-patient rehabilitation facility located in Mishawaka, Indiana receiving gross proceeds of $8.1 million, resulting in a loss of $3.4 million. A rollforward of the gross investment in land, building, improvements, and acquired lease intangible assets as of December 31, 2023 is as follows:
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Site |
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Tenant |
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Acquired Lease |
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Gross Investment in |
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Land |
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Building |
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Improvements |
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Improvements |
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Intangible Assets |
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Real Estate |
Balances as of December 31, 2022 |
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$ |
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 |
Facility Acquired – Date Acquired: |
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Redding – 4/17/23 |
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771 |
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3,798 |
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174 |
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321 |
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872 |
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5,936 |
Capitalized costs(1) |
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— |
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3,146 |
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1,009 |
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2,356 |
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172 |
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6,683 |
Total Additions: |
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771 |
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6,944 |
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1,183 |
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2,677 |
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1,044 |
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12,619 |
Disposition of Jacksonville – 3/9/2023 |
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(1,023) |
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(2,827) |
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— |
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— |
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— |
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(3,850) |
Disposition of Oklahoma City – 6/30/2023 |
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(2,814) |
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(43,553) |
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(1,127) |
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(1,505) |
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(9,406) |
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(58,405) |
Disposition of North Charleston – 8/1/2023 |
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(927) |
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(4,640) |
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(106) |
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(801) |
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(1,098) |
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(7,572) |
Total Dispositions: |
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(4,764) |
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(51,020) |
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(1,233) |
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(2,306) |
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(10,504) |
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(69,827) |
Balances as of December 31, 2023 |
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$ |
164,315 |
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$ |
1,035,705 |
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$ |
21,974 |
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$ |
66,358 |
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$ |
138,617 |
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$ |
1,426,969 |
| (1) |
Represents capital projects that were completed and placed in service during the year ended December 31, 2023 related to the Company’s existing facilities. |
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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 June 30, 2024 |
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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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$ |
75,572 |
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$ |
(48,197) |
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$ |
27,375 |
Above market leases |
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24,725 |
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(11,736) |
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12,989 |
Leasing costs |
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36,097 |
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(20,436) |
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15,661 |
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$ |
136,394 |
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$ |
(80,369) |
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$ |
56,025 |
Liability |
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Below market leases |
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$ |
13,595 |
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$ |
(9,446) |
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$ |
4,149 |
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As of December 31, 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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$ |
(44,249) |
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$ |
32,788 |
Above market leases |
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24,961 |
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(10,318) |
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14,643 |
Leasing costs |
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36,619 |
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(18,556) |
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18,063 |
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$ |
138,617 |
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$ |
(73,123) |
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$ |
65,494 |
Liability |
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Below market leases |
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$ |
13,595 |
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$ |
(8,314) |
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$ |
5,281 |
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| Summary of the acquired lease intangible amortization |
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Amortization expense related to in-place leases |
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$ |
2,601 |
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$ |
2,993 |
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$ |
5,276 |
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$ |
6,041 |
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Amortization expense related to leasing costs |
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$ |
1,165 |
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$ |
1,313 |
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$ |
2,353 |
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$ |
2,638 |
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Decrease in rental revenue related to above market leases |
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$ |
813 |
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$ |
871 |
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$ |
1,632 |
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$ |
1,747 |
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Increase in rental revenue related to below market leases |
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$ |
(564) |
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$ |
(584) |
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$ |
(1,132) |
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$ |
(1,169) |
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| Schedule of net amortization acquired lease intangible assets and liabilities |
As of June 30, 2024, 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 |
2024 (six months remaining) |
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$ |
(635) |
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$ |
6,411 |
2025 |
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(1,694) |
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10,514 |
2026 |
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(1,801) |
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8,699 |
2027 |
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(1,375) |
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6,113 |
2028 |
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(1,091) |
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4,805 |
Thereafter |
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(2,244) |
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6,494 |
Total |
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$ |
(8,840) |
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$ |
43,036 |
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