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Real Estate Investments
 3 Months Ended
Mar. 31, 2012
Real Estate Investments [Abstract]  
Real Estate Investments
Real Estate Investments

The following table presents the allocation of real estate investment assets acquired by the Company during the three months ended March 31, 2012 (amounts in thousands):

Real estate investments, at cost:
 
Land
$
1,511

Buildings, fixtures and improvements
6,044

Total tangible assets
7,555

Acquired intangibles:
 
In-place leases
1,074

Purchase price of acquired real estate investments
$
8,629

Number of properties acquired
2

  
The Company owns and operates commercial properties. As of March 31, 2012, the Company owned 92 properties, two of which are vacant and classified as held for sale at March 31, 2012. The Contributor, an affiliate of the Sponsor, contributed 63 properties (the "Contributed Properties") in September 2011 in conjunction with the completion of the IPO at amortized cost.

The Company’s portfolio of real estate investment properties (excluding two vacant properties), which were all 100% leased, is comprised of the following 90 properties as of March 31, 2012 (dollar amounts in thousands):
Portfolio
 
Contribution or Acquisition
Date
 
Number
of Properties
 
Square
Feet
 
Remaining Lease Term (1)
 
Base
Purchase
Price (2)
 
Capitalization Rate (3)
 
Annualized
Rental
Income/ NOI (4)
 
Annualized
Rental
Income/NOI per
Square Foot
Home Depot
 
Sep. 2011
 
1
 
465,600

 
17.7
 
$
23,398

 
9.7%
 
$
2,258

 
$
4.85

Citizens Bank
 
Sep. 2011
 
59
 
291,920

 
5.9
 
95,241

 
7.1%
 
6,729

 
23.05

Community Bank
 
Sep. 2011
 
1
 
4,410

 
4.3
 
705

 
5.1%
 
36

 
8.16

Dollar General
 
Nov. 2011
 
20
 
177,668

 
7.4
 
9,981

 
9.7%
 
965

 
5.43

Advance Auto
 
Nov. & Dec. 2011
 
6
 
42,000

 
7.6
 
5,122

 
8.9%
 
457

 
10.88

Walgreens
 
Dec. 2011
 
1
 
14,414

 
9.5
 
2,425

 
10.1%
 
245

 
17.00

GSA (5)
 
Jan. 2012
 
1
 
12,009

 
6.9
 
4,850

 
8.7%
 
421

 
35.06

Walgreens
 
Jan. 2012
 
1
 
15,120

 
6.8
 
3,779

 
9.2%
 
346

 
22.88

Total Portfolio (6)
 
 
 
90
 
1,023,141

 
8.6
 
$
145,501

 
7.9%
 
$
11,457

 
$
11.20

_______________________________________________
(1) 
Remaining lease term as of March 31, 2012, in years. If the portfolio has multiple locations with varying lease expirations, remaining lease term is calculated on a weighted-average basis. Total remaining lease term is an average of the remaining lease term of the total portfolio.

(2) 
Original purchase price of the Contributed Properties and contract purchase price of all other properties, in each case excluding acquisition and transaction-related costs. Acquisition and transaction-related costs include legal and various other closing costs incurred in connection with acquiring investment properties.

(3) 
Annualized rental income on a straight-line basis or annualized net operating income ("NOI") divided by base purchase price.

(4) 
Annualized rental income/NOI for net leases is rental income on a straight-line basis as of March 31, 2012, which includes the effect of tenant concessions such as free rent, as applicable. For modified gross leased properties, amount is rental income on a straight-line basis as of March 31, 2012, which includes the effect of tenant concessions such as free rent, as applicable, plus operating expense reimbursement revenue less property operating expenses.

(5)
Lease on property is a modified gross lease. As such, annualized rental income/NOI for this property is rental income on a straight-line basis as of March 31, 2012, which includes the effect of tenant concessions such as free rent plus operating expense reimbursement revenue less property operating expenses. Buildings, fixtures and improvements have been provisionally allocated pending receipt of the cost segregation analysis on such assets being prepared by a third-party specialist.

(6) 
Total portfolio excludes two vacant properties contributed in September 2011, which are classified as held for sale.

Future Lease Payments

The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter.  These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items (amounts in thousands):
 
 
Future Minimum
Base Rent Payments
April 1, 2012 - December 31, 2012
 
$
11,047

2013
 
11,276

2014
 
11,462

2015
 
11,593

2016
 
11,539

Thereafter
 
54,091


 
$
111,008


Tenant Concentration

The following table lists the tenants whose annualized rental income/NOI on a straight-line basis represented greater than 10% of consolidated annualized rental income/NOI on a straight-line basis as of March 31, 2012:

 
Tenant
 
Annualized Rental Income
Citizens Bank
 
58.9%
Home Depot
 
19.8%

The termination, delinquency or non-renewal of one or more leases by either of the above tenants may have a material effect on revenues. No other tenant represents more than 10% of the rental income/NOI for the period presented.

Geographic Concentration

The following table lists the states where the Company has concentrations of properties where annual rental income/NOI on a straight-line basis represented greater than 10% of consolidated annualized rental income/NOI on a straight-line basis as of March 31, 2012:

State
 
Annualized Rental Income
Michigan
 
24.9
%
South Carolina
 
21.9
%
Ohio
 
15.8
%
New York
 
12.7
%