REAL ESTATE INVESTMENTS

6 Months Ended

Apr. 30, 2022

(2) REAL ESTATE INVESTMENTS

In February 2022, the Company purchased the Shelton Square Shopping Center ("Shelton") for $33.6 million (exclusive of closing costs). Shelton is a 186,000 square foot grocery-anchored Shopping Center located in Shelton, CT. The Company funded the purchase with available cash, borrowings on our unsecured revolving credit facility (the "Facility") and proceeds from mortgage borrowings.

The Company accounted for the purchase of Shelton 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 six months ended April 30, 2022 (in thousands).

	Shelton
Assets:
Land	$	9,568
Building and improvements	$	21,803
In-place leases	$	2,190
Above market leases	$	1,179

Liabilities:
In-place leases	$	-
Below Market Leases	$	1,081

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.