INVESTMENT PROPERTIES

12 Months Ended

Oct. 31, 2022

(3) INVESTMENT PROPERTIES

The components of the properties consolidated in the financial statements are as follows (in thousands):

	October 31,
	2022			2021
Land	$	245,844		$	235,233
Buildings and improvements		944,512			913,149
		1,190,356			1,148,382
Accumulated depreciation		(303,488	)		(278,605	)
	$	886,868		$	869,777

Space at the Company's properties is generally leased to various individual tenants under short and intermediate-term leases which are accounted for as operating leases.

Certain of the Company's leases provide for the payment of additional rent based on a percentage of the tenant's revenues. Such additional percentage rents are included in operating lease income and were less than 1.00% of consolidated revenues in each of the three years ended October 31, 2022.

Significant Investment Property Acquisition Transactions

In February 2022, the Company purchased Shelton Square shopping center, and in July 2022 exercised an option to purchase a pad site adjacent to the shopping center (collectively, "Shelton"), for an aggregate of $36 million (exclusive of closing costs). Shelton is a 188,000 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 of the cash consideration paid on a relative fair value basis (Level 3 of the fair value hierarchy) for Shelton during the year ended October 31, 2022 (in thousands).

	Shelton
Assets:
Land	$	11,484
Building and improvements	$	21,803
In-place leases	$	2,285
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 are amortized as an expense over the terms of the respective leases.

For the fiscal year ended October 31, 2022, 2021 and 2020, the net amortization of above-market and below-market leases was approximately $972,000, $570,000 and $706,000, respectively, which is included in base rents in the accompanying consolidated statements of income.

In Fiscal 2022, the Company incurred costs of approximately $15.6 million related to capital improvements and leasing costs to its properties.