Real Estate Investments and Related Intangibles (Tables)

9 Months Ended

Sep. 30, 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):



	Nine Months Ended September 30,
	2018			2017
Real estate investments, at cost:
Land	$	54,732		$	82,337
Buildings, fixtures and improvements	181,011			293,419
Total tangible assets	235,743			375,756
Acquired intangible assets:
In-place leases and other intangibles ⁽¹⁾	42,050			68,306
Above-market leases⁽²⁾	2,750			10,270
Assumed intangible liabilities:
Below-market leases ⁽³⁾	(116		)	(395		)
Total purchase price of assets acquired	$	280,427		$	453,937

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(1)	The weighted average amortization period for acquired in-place leases and other intangibles is 15.7 years and 16.7 years for 2018 Acquisitions and 2017 Acquisitions, respectively.


(2)	The weighted average amortization period for acquired above-market leases is 10.8 years and 18.1 years for 2018 Acquisitions and 2017 Acquisitions, respectively.


(3)	The weighted average amortization period for acquired intangible lease liabilities is 9.9 years and 20.0 years for 2018 Acquisitions and 2017 Acquisitions, respectively.

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⁾
October 1, 2018 - December 31, 2018	$	264,955	$	727
2019	1,098,352		2,508
2020	1,068,111		2,135
2021	1,030,610		2,014
2022	952,610		1,925
Thereafter	6,062,338		2,254
Total	$	10,476,976	$	11,563

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(1)	Related to 25 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
October 1, 2018 - December 31, 2018	$	3,476	$	1,123
2019	13,984		4,446
2020	13,734		4,451
2021	13,568		4,388
2022	13,781		4,419
Thereafter	210,426		3,996
Total	$	268,969	$	22,823

Schedule of Future Minimum Direct Financing Lease Payments



	Future Minimum Operating Lease Base Rent Payments		Future Minimum Direct Financing Lease Payments ⁽¹⁾
October 1, 2018 - December 31, 2018	$	264,955	$	727
2019	1,098,352		2,508
2020	1,068,111		2,135
2021	1,030,610		2,014
2022	952,610		1,925
Thereafter	6,062,338		2,254
Total	$	10,476,976	$	11,563

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(1)	Related to 25 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 September 30, 2018 and December 31, 2017 (amounts in thousands, except weighted-average useful life):



	Weighted-Average Useful Life	September 30, 2018		December 31, 2017
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $680,775 and $599,680, respectively	15.4	$	1,006,399	$	1,091,433
Leasing commissions, net of accumulated amortization of $3,526 and $2,902, respectively	11.0	13,547		13,876
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $102,355 and $88,335, respectively	16.4	213,116		241,449
Total intangible lease assets, net		$	1,233,062	$	1,346,758

Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $85,844 and $73,916, respectively	18.6	$	179,192	$	198,551

Schedule of Intangible Liabilities

Intangible lease assets and liabilities of the Company consisted of the following as of September 30, 2018 and December 31, 2017 (amounts in thousands, except weighted-average useful life):



	Weighted-Average Useful Life	September 30, 2018		December 31, 2017
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $680,775 and $599,680, respectively	15.4	$	1,006,399	$	1,091,433
Leasing commissions, net of accumulated amortization of $3,526 and $2,902, respectively	11.0	13,547		13,876
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $102,355 and $88,335, respectively	16.4	213,116		241,449
Total intangible lease assets, net		$	1,233,062	$	1,346,758

Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $85,844 and $73,916, respectively	18.6	$	179,192	$	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 September 30, 2018 (amounts in thousands):



	Remainder of 2018		2019		2020		2021		2022
In-place leases and other intangibles:
Total projected to be included in amortization expense	$	33,935	$	126,466	$	119,158	$	111,333	$	97,138
Leasing commissions:
Total projected to be included in amortization expense	407		1,589		1,567		1,510		1,452
Above-market lease assets and deferred lease incentives:
Total projected to be deducted from rental income	5,793		21,326		20,913		20,483		19,670
Below-market lease liabilities:
Total projected to be included in rental income	5,775		18,116		16,962		15,797		14,950