Land, Buildings and Improvements and Assets Held for Sale (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of land, building and improvements

Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands):


	June 30, 2021		December 31, 2020
Land	$	2,127,388	$	2,012,688
Buildings and improvements	9,314,308		8,724,064
Real estate under construction	95,953		119,391
Less: Accumulated depreciation	(1,329,907)		(1,206,912)
	$	10,207,742	$	9,649,231

The aggregate purchase price allocation for investments disclosed above is as follows (dollars in thousands):


	Total Capitalized Costs
Land	$	124,865
Buildings and improvements	608,242
Intangibles:
In-place lease (weighted-average expected life of 22.3 years)	133,624
Below-market rent (weighted-average expected life of 11.1 years)	(9,995)
Land lease right-of-use assets	1,824
Prepaid rent liabilities	(15,445)
Operating lease liabilities	(5,979)
	$	837,136

Below is a summary of our Land, buildings and improvements attributable to operating properties (in thousands):


	June 30, 2021		December 31, 2020
Land	$	10,452	$	10,452
Buildings and improvements	73,103		73,024
Less: Accumulated depreciation	(15,379)		(14,004)
	$	68,176	$	69,472

Schedule of real estate acquired

During the six months ended June 30, 2021, we entered into the following investments, which were deemed to be real estate asset acquisitions (dollars in thousands):


Property Location(s)	Number of Properties	Date of Acquisition	Property Type	Total Capitalized Costs
Grove City, Ohio, and Anderson, South Carolina	2	2/2/2021	Warehouse	$	19,129
Various, New Jersey and Pennsylvania (a)	10	2/11/2021	Retail; Office	55,115
Central Valley, California (b)	4	2/11/2021	Warehouse; Land	75,008
Various, France (c) (d)	3	4/1/2021	Retail	119,341
Searcy, Arkansas	1	4/14/2021	Industrial	14,038
Detroit, Michigan	1	4/27/2021	Warehouse	52,810
Solihull, United Kingdom (c) (d)	1	5/4/2021	Warehouse	194,954
New Rochelle, New York	1	5/5/2021	Student Housing (Net Lease)	26,109
Groveport, Ohio	1	5/5/2021	Industrial	27,133
Dakota, Illinois	1	5/12/2021	Industrial	65,043
San Jose, California	1	5/13/2021	Industrial	51,949
Opelika, Alabama	1	6/7/2021	Warehouse	48,897
Niles and Elk Grove Village, IL; and Guelph, Canada	3	6/9/2021	Warehouse	42,829
Rome, NY	1	6/10/2021	Warehouse	44,781
	31			$	837,136

__________

(a)This acquisition is comprised of seven retail facilities and three office facilities.

(b)This acquisition is comprised of two warehouse facilities and two parcels of land.

(c)We also recorded estimated deferred tax liabilities of (i) $8.8 million on the France investment and (ii) $3.6 million on the United Kingdom investment, with corresponding increases to the asset values, due to tax and GAAP temporary differences established in connection with the acquisitions.

(d)Amount reflects the applicable exchange rate on the date of transaction.

Schedule of real estate under construction

During the six months ended June 30, 2021, we completed the following construction projects (dollars in thousands):

Property Location(s)

Primary Transaction Type

Number of Properties

Date of Completion

Property Type

Total Capitalized Costs (a)

Mason, Ohio

Expansion

1/15/2021

Office

2,428

Langen, Germany (a)

Build-to-suit

2/4/2021

Industrial

52,719

San Donato Milanese, Italy (a)

Renovation

6/30/2021

Retail; Office

7,244

62,391

__________

(a)Amount reflects the applicable exchange rate on the date of transaction.

Schedule of operating lease income

Lease income related to operating leases recognized and included in the consolidated statements of income is as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Lease income — fixed	$	261,704	$	236,997	$	519,031	$	475,965
Lease income — variable (a)	27,360		24,472		54,698		47,552
Total operating lease income (b)	$	289,064	$	261,469	$	573,729	$	523,517

__________

(a)Includes (i) rent increases based on changes in the U.S. Consumer Price Index (“CPI”) and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services.

(b)Excludes $16.2 million and $18.8 million for the three months ended June 30, 2021 and 2020, respectively, and $33.3 million and $38.9 million for six months ended June 30, 2021 and 2020, respectively, of interest income from direct financing leases that is included in Lease revenues in the consolidated statements of income.

Disclosure of long lived assets held-for-sale

Below is a summary of our properties held for sale (in thousands):


	June 30, 2021		December 31, 2020
Land, buildings and improvements	$	8,334	$	14,051
In-place lease intangible assets and other, net	—		12,754
Above-market rent intangible assets	—		518
Accumulated depreciation and amortization	(2,652)		(8,733)
Assets held for sale, net	$	5,682	$	18,590