REAL ESTATE INVESTMENTS

9 Months Ended

Jul. 31, 2019

(2) REAL ESTATE INVESTMENTS

In December 2018, the Company purchased Lakeview Plaza Shopping Center ("Lakeview") for $12.0 million (exclusive of closing costs). Lakeview is a 177,000 square foot grocery-anchored shopping center located in Putnam County, NY. In addition, the Company anticipates having to invest up to $8.0 million for capital improvements and re-tenanting at the property, approximately $4.2 million of which has already been expended and added to the cost of the property. The Company funded the purchase and capital improvements made subsequent to the purchase with available cash and borrowings on its unsecured revolving credit facility (the "Facility"). The Company intends to fund the remaining additional investment with a combination of available cash, borrowings on the Facility and by potentially placing a mortgage on the property.

The Company accounted for the purchase of Lakeview as an asset acquisition and allocated the total consideration transferred for the acquisition, including transaction costs, to the individual assets and liabilities acquired on a relative fair value basis.

The financial information set forth below summarizes the Company’s purchase price allocation for the property acquired during the nine months ended July 31, 2019 (in thousands).

	Lakeview
Assets:
Land	$	2,025
Building and improvements	$	10,620
In-place leases	$	772
Above market leases	$	459

Liabilities:
In-place leases	$	-
Below Market Leases	$	1,123

The value of above and below market leases are amortized as a reduction/increase to base rental revenue over the term of the respective leases. The value of in-place leases described above are amortized as an expense over the terms of the respective leases.

For the nine month periods ended July 31, 2019 and 2018, the net amortization of above-market and below-market leases was approximately $448,000 and $1,097,000, respectively, and for the three month periods ended July 31, 2019 and 2018, the net amortization of above-market and below-market leases was approximately $157,000 and $832,000, respectively. All aforementioned amounts are included in base rents in the accompanying consolidated statements of income.