Real Estate Assets and Discontinued Operations

6 Months Ended

Jun. 30, 2022

Real Estate Assets And Discontinued Operations

Real Estate Assets And Discontinued Operations

4.    Real Estate Assets and Discontinued Operations

Real estate assets consist of:

	Estimated
	Useful Lives	June 30, 2022		December 31, 2021
Land		$	64,559	$	55,104
Land improvements	10 to 30 years		67,149		65,520
Buildings and improvements	10 to 40 years		342,610		295,964
Tenant improvements	Shorter of useful life or terms of related lease		32,956		31,576
Construction in progress			44,818		20,799
Development costs			3,834		3,673
			555,926		472,636
Accumulated depreciation			(92,401)		(84,989)
		$	463,525	$	387,647

Total depreciation expense related to real estate assets was as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Depreciation expense	$	3,753	$	2,766	$	7,390	$	5,445

On June 8, 2022, INDUS closed on the purchase of an approximately 205,000 square foot, fully leased portfolio in Florida for $31,758, including transaction costs. This portfolio is comprised of two buildings in the Palm Beach market totaling approximately 84,000 square feet and an approximately 121,000 square foot building in the Orlando market.

On January 19, 2022, INDUS closed on the purchase of 782 Paragon Way (“782 Paragon”), an approximately 217,000 square foot, fully leased building in the Charlotte, North Carolina market for $24,026, including transaction costs.

The purchase prices for acquisitions as of June 30, 2022 were allocated as follows:

	782 Paragon Way		3312 Shader Road		6600 High Ridge Road		7700 High Ridge Road		Total
Land	$	1,469	$	2,832	$	1,679	$	2,354	$	8,334
Land improvements		329		213		194		175		911
Buildings and improvements		22,228		11,195		6,340		5,715		45,478
Tenant improvements		—		107		44		40		191
Intangible assets		—		685		422		385		1,492
Intangible liabilities		—		(158)		—		(464)		(622)
	$	24,026	$	14,874	$	8,679	$	8,205	$	55,784

In March 2022, the Company announced its intention to sell its Office/Flex Portfolio (see Note 1). The Office/Flex Portfolio is comprised of seven buildings totaling approximately 175,000 square feet located in Windsor and Bloomfield, Connecticut. Additionally, INDUS intends to sell an approximately 18,000 square foot storage building that had been used in the operations of the Office/Flex Portfolio and is located within the same business park. The disposition of the Office/Flex Portfolio represents a strategic shift for the Company and, as such, is being treated as a discontinued operation as of June 30, 2022. Accordingly, for all prior periods presented, the related assets and liabilities are presented as assets and liabilities of discontinued operations on the consolidated balance sheets.

Real estate assets in discontinued operations consist of:

	June 30, 2022		December 31, 2021
Land	$	31	$	31
Land improvements		1,843		1,840
Buildings and improvements		15,403		15,396
Tenant improvements		3,485		3,485
Construction in progress		1,492		338
		22,254		21,090
Accumulated depreciation		(14,778)		(14,571)
		7,476		6,519
Other assets		1,404		1,471
Total assets of discontinued operations	$	8,880	$	7,990
Accounts payable and accrued liabilities	$	136	$	67
Deferred revenue		511		620
Other liabilities		139		145
Total liabilities of discontinued operations	$	786	$	832