Real Estate Investments and Related Intangibles (Tables)

12 Months Ended

Dec. 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):



	Year Ended December 31,
	2018			2017			2016
Real estate investments, at cost:
Land	$	86,285		$	110,634		$	23,187
Buildings, fixtures and improvements	350,942			523,445			67,865
Total tangible assets	437,227			634,079			91,052
Acquired intangible assets:
In-place leases and other intangibles ⁽¹⁾	62,791			105,940			9,613
Above-market leases⁽²⁾	2,750			10,445			—
Assumed intangible liabilities:
Below-market leases ⁽³⁾	(116		)	(1,680		)	(471		)
Total purchase price of assets acquired	$	502,652		$	748,784		$	100,194

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(1)	The weighted average amortization period for acquired in-place leases and other intangibles is 16.3 years, 15.8 years and 13.8 years for 2018 Acquisitions, 2017 Acquisitions and 2016 Acquisitions, respectively.


(2)	The weighted average amortization period for acquired above-market leases is 10.8 years and 18.0 years for 2018 Acquisitions and 2017 Acquisitions, respectively. There were no acquired above-market leases during the year ended December 31, 2016.


(3)	The weighted average amortization period for acquired intangible lease liabilities is 9.9 years, 13.8 years and 10.0 years for 2018 Acquisitions, 2017 Acquisitions and 2016 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⁾
2019	$	1,107,610	$	2,448
2020	1,080,639		2,135
2021	1,042,346		2,014
2022	972,564		1,925
2023	890,327		1,541
Thereafter	5,387,232		707
Total	$	10,480,718	$	10,770

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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
2019	$	13,942	$	4,537
2020	13,740		4,451
2021	13,542		4,387
2022	13,699		4,419
2023	14,077		3,695
Thereafter	196,369		301
Total	$	265,369	$	21,790

Schedule of Future Minimum Direct Financing Lease Payments



	Future Minimum Operating Lease Base Rent Payments		Future Minimum Direct Financing Lease Payments ⁽¹⁾
2019	$	1,107,610	$	2,448
2020	1,080,639		2,135
2021	1,042,346		2,014
2022	972,564		1,925
2023	890,327		1,541
Thereafter	5,387,232		707
Total	$	10,480,718	$	10,770

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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 December 31, 2018 and 2017 (amounts in thousands, except weighted-average useful life):



	Weighted-Average Useful Life	December 31, 2018		December 31, 2017
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $703,909 and $599,680, respectively	15.5	$	980,971	$	1,091,433
Leasing commissions, net of accumulated amortization of $4,048 and $2,902, respectively	10.7	15,660		13,876
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $105,936 and $88,335, respectively	16.4	201,875		241,449
Total intangible lease assets, net		$	1,198,506	$	1,346,758

Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $89,905 and $73,916, respectively	18.8	$	173,479	$	198,551

Schedule of Intangible Liabilities

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



	Weighted-Average Useful Life	December 31, 2018		December 31, 2017
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $703,909 and $599,680, respectively	15.5	$	980,971	$	1,091,433
Leasing commissions, net of accumulated amortization of $4,048 and $2,902, respectively	10.7	15,660		13,876
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $105,936 and $88,335, respectively	16.4	201,875		241,449
Total intangible lease assets, net		$	1,198,506	$	1,346,758

Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $89,905 and $73,916, respectively	18.8	$	173,479	$	198,551

Schedule of Amortization Expense and Adjustments to Rental Income

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



	2019		2020		2021		2022		2023
In-place leases and other intangibles:
Total projected to be included in amortization expense	$	126,457	$	119,161	$	111,335	$	97,159	$	86,311
Leasing commissions:
Total projected to be included in amortization expense	1,911		1,778		1,620		1,556		1,359
Above-market lease assets and deferred lease incentives:
Total projected to be deducted from rental revenue	20,870		20,456		20,027		19,213		18,270
Below-market lease liabilities:
Total projected to be included in rental revenue	17,973		16,821		15,656		14,809		13,924