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Real Estate Investments and Related Intangibles (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table presents the allocation of the fair values of the assets acquired and liabilities assumed during the periods presented (in thousands):



	Three Months Ended March 31,
	2018		2017
Real estate investments, at cost:
Land	$	27,049	$	24,107
Buildings, fixtures and improvements	96,044		59,261
Total tangible assets	123,093		83,368
Acquired intangible assets:
In-place leases and other intangibles ⁽¹⁾	14,037		15,916
Above-market leases⁽²⁾	2,752		2,815
Assumed intangible liabilities:
Below-market leases ⁽³⁾	—		(185		)
Total purchase price of assets acquired	$	139,882	$	101,914

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(1)	The weighted average amortization period for acquired in-place leases and other intangibles is 14.9 years and 10.8 years for 2018 Acquisitions and 2017 Acquisitions, respectively.


(2)	The weighted average amortization period for acquired above-market leases is 10.8 years and 20.0 years for 2018 Acquisitions and 2017 Acquisitions, respectively.


(3)	The weighted average amortization period for acquired intangible lease liabilities is 20.0 years for 2017 Acquisitions.

Schedule of Future Minimum Operating Lease Base Rent Payments

The following table presents future minimum base rent 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 (in thousands):



	Future Minimum Operating Lease Base Rent Payments		Future Minimum Direct Financing Lease Payments ⁽¹⁾
April 1, 2018 - December 31, 2018	$	824,206	$	2,240
2019	1,088,326		2,508
2020	1,057,113		2,135
2021	1,016,544		2,011
2022	938,596		1,921
Thereafter	6,036,829		2,254
Total	$	10,961,614	$	13,069

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(1)	Related to 27 properties which are subject to direct financing leases and, therefore, revenue is recognized as direct financing lease income on the discounted cash flows of the lease payments. Amounts reflected are the minimum base rental cash payments due to the Company under the lease agreements on these respective properties.

The following table reflects the minimum base rent payments due from the Company over the next five years and thereafter for certain ground lease obligations, which are substantially reimbursable by our tenants, and office lease obligations (in thousands):



	Future Minimum Base Rent Payments
	Ground Leases		Office Leases
April 1, 2018 - December 31, 2018	$	10,820	$	3,344
2019	14,348		4,429
2020	14,214		4,451
2021	13,726		4,387
2022	13,939		4,419
Thereafter	213,268		3,996
Total	$	280,315	$	25,026

Schedule of Future Minimum Direct Financing Lease Payments



	Future Minimum Operating Lease Base Rent Payments		Future Minimum Direct Financing Lease Payments ⁽¹⁾
April 1, 2018 - December 31, 2018	$	824,206	$	2,240
2019	1,088,326		2,508
2020	1,057,113		2,135
2021	1,016,544		2,011
2022	938,596		1,921
Thereafter	6,036,829		2,254
Total	$	10,961,614	$	13,069

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(1)	Related to 27 properties which are subject to direct financing leases and, therefore, revenue is recognized as direct financing lease income on the discounted cash flows of the lease payments. Amounts reflected are the minimum base rental cash payments due to the Company under the lease agreements on these respective properties.

Schedule of Intangible Assets

Intangible lease assets and liabilities of the Company consisted of the following as of March 31, 2018 and December 31, 2017 (amounts in thousands, except weighted-average useful life):



	Weighted-Average Useful Life	March 31, 2018		December 31, 2017
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $628,165 and $599,680, respectively	15.2	$	1,064,366	$	1,091,433
Leasing commissions, net of accumulated amortization of $3,279 and $2,902, respectively	11.1	13,741		13,876
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $92,351 and $88,335, respectively	16.3	233,102		241,449
Total intangible lease assets, net		$	1,311,209	$	1,346,758

Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $78,738 and $73,916, respectively	18.6	$	193,703	$	198,551

Schedule of Intangible Liabilities

Intangible lease assets and liabilities of the Company consisted of the following as of March 31, 2018 and December 31, 2017 (amounts in thousands, except weighted-average useful life):



	Weighted-Average Useful Life	March 31, 2018		December 31, 2017
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $628,165 and $599,680, respectively	15.2	$	1,064,366	$	1,091,433
Leasing commissions, net of accumulated amortization of $3,279 and $2,902, respectively	11.1	13,741		13,876
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $92,351 and $88,335, respectively	16.3	233,102		241,449
Total intangible lease assets, net		$	1,311,209	$	1,346,758

Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $78,738 and $73,916, respectively	18.6	$	193,703	$	198,551

Schedule of Amortization Expense and Adjustments to Rental Income

The following table provides the projected amortization expense and adjustments to rental income related to the intangible lease assets and liabilities for the next five years as of March 31, 2018 (amounts in thousands):



	2018		2019		2020		2021		2022
In-place leases and other intangibles:
Total projected to be included in amortization expense	$	101,447	$	125,918	$	118,607	$	110,642	$	96,441
Leasing commissions:
Total projected to be included in amortization expense	1,148		1,532		1,510		1,456		1,398
Above-market lease assets and deferred lease incentives:
Total projected to be deducted from rental income	17,700		21,865		21,450		21,022		20,208
Below-market lease liabilities:
Total projected to be included in rental income	14,362		18,388		17,240		16,041		15,197