XML 48 R28.htm IDEA: XBRL DOCUMENT

Real Estate Investments and Related Intangibles (Tables)

6 Months Ended

Jun. 30, 2019

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):



	Six Months Ended June 30,
	2019		2018
Real estate investments, at cost:
Land	$	40,460	$	37,732
Buildings, fixtures and improvements	135,182		121,310
Total tangible assets	175,642		159,042
Acquired intangible assets:
In-place leases and other intangibles ⁽¹⁾	24,817		19,564
Above-market leases⁽²⁾	—		2,750
Assumed intangible liabilities:
Below-market leases⁽³⁾	—		(116		)
Total purchase price of assets acquired	$	200,459	$	181,240

____________________________________


(1)	The weighted average amortization period for acquired in-place leases and other intangibles is 15.8 years and 13.9 years for 2019 Acquisitions and 2018 Acquisitions, respectively.


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

(3)

The weighted average amortization period for assumed intangible lease liabilities is 9.9 years for 2018 Acquisitions.

Schedule of Intangible Assets

Intangible lease assets and liabilities of the Company consisted of the following as of June 30, 2019 and December 31, 2018 (amounts in thousands, except weighted-average useful life):



	Weighted-Average Useful Life	June 30, 2019		December 31, 2018
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $722,414 and $703,909, respectively	15.7	$	902,319	$	980,971
Leasing commissions, net of accumulated amortization of $4,747 and $4,048, respectively	10.0	15,364		15,660
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $104,395 and $105,936, respectively	16.3	178,460		201,875
Total intangible lease assets, net		$	1,096,143	$	1,198,506

Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $93,481 and $89,905, respectively	19.0	$	152,654	$	173,479

Schedule of Intangible Liabilities

Intangible lease assets and liabilities of the Company consisted of the following as of June 30, 2019 and December 31, 2018 (amounts in thousands, except weighted-average useful life):



	Weighted-Average Useful Life	June 30, 2019		December 31, 2018
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $722,414 and $703,909, respectively	15.7	$	902,319	$	980,971
Leasing commissions, net of accumulated amortization of $4,747 and $4,048, respectively	10.0	15,364		15,660
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $104,395 and $105,936, respectively	16.3	178,460		201,875
Total intangible lease assets, net		$	1,096,143	$	1,198,506

Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $93,481 and $89,905, respectively	19.0	$	152,654	$	173,479

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 June 30, 2019 (amounts in thousands):



	Remainder of 2019		2020		2021		2022		2023
In-place leases and other intangibles:
Total projected to be included in amortization expense	$	62,166	$	116,036	$	108,821	$	95,259	$	84,774
Leasing commissions:
Total projected to be included in amortization expense	1,128		2,120		1,962		1,871		1,690
Above-market lease assets and deferred lease incentives:
Total projected to be deducted from rental revenue	10,145		19,556		19,128		18,315		17,371
Below-market lease liabilities:
Total projected to be included in rental revenue	8,661		15,815		14,674		13,832		13,110

Investment in Unconsolidated Joint Ventures

The following is a summary of the Company’s investments in unconsolidated joint ventures as of June 30, 2019 and December 31, 2018 and for the six months ended June 30, 2019 and 2018 (dollar amounts in thousands):



			Carrying Amount of Investment ⁽²⁾				Equity in Income
			Carrying Amount of Investment ⁽²⁾				Six Months Ended
Investment	Ownership % ⁽¹⁾	Number of Properties	June 30, 2019		December 31, 2018		June 30, 2019			June 30, 2018
Faison JV Bethlehem GA	90%	1	$	39,087	$	35,289	$	1,035		$	673
Industrial Partnership	20%	6	29,546		—		(30		)	—
			$	68,633	$	35,289	$	1,005		$	673

____________________________________

(1)

The Company’s ownership interest reflects its legal ownership interest. Legal ownership may, at times, not equal the Company’s economic interest in the listed properties because of various provisions in certain joint venture agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses and payments of preferred returns. As a result, the Company’s actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with its legal ownership interests.

(2)

The total carrying amount of the investments was greater than the underlying equity in net assets by $4.7 million as of June 30, 2019 and December 31, 2018. This difference relates to a purchase price allocation of goodwill and a step up in fair value of the investment assets acquired in connection with mergers. The step up in fair value was allocated to the individual investment assets and is being amortized in accordance with the Company’s depreciation policy.