Real Estate Investments and Related Intangibles (Tables)

3 Months Ended

Mar. 31, 2021

Real Estate [Abstract]

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,
	2021		2020
Real estate investments, at cost:
Land	$	19,729	$	19,953
Buildings, fixtures and improvements	79,257		95,728
Total tangible assets	98,986		115,681

	Three Months Ended March 31,
	2021		2020
Acquired intangible assets:
In-place leases and other intangibles (1)	12,090		15,739
Above-market leases (2)	29,008		15,701
Total purchase price of assets acquired	$	140,084	$	147,121

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(1)The weighted average amortization period for acquired in-place leases and other intangibles is 16.2 years and 18.1 years for 2021 Acquisitions and 2020 Acquisitions, respectively.

(2)The weighted average amortization period for acquired above-market leases is 19.0 years and 20.1 years for 2021 Acquisitions and 2020 Acquisitions, respectively.

Schedule of intangible assets

Intangible lease assets and liabilities of the Company consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands, except weighted-average useful life):

	Weighted-Average Useful Life	March 31, 2021		December 31, 2020
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $815,131 and $810,597, respectively	17.0	$	723,695	$	745,026
Leasing commissions, net of accumulated amortization of $8,013 and $7,565, respectively	9.2	16,536		16,042
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $128,850 and $125,455, respectively	23.6	191,601		167,776
Total intangible lease assets, net		$	931,832	$	928,844
Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $108,537 and $106,504, respectively	19.8	$	117,121	$	120,938

Schedule of intangible liabilities

Intangible lease assets and liabilities of the Company consisted of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands, except weighted-average useful life):

	Weighted-Average Useful Life	March 31, 2021		December 31, 2020
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $815,131 and $810,597, respectively	17.0	$	723,695	$	745,026
Leasing commissions, net of accumulated amortization of $8,013 and $7,565, respectively	9.2	16,536		16,042
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $128,850 and $125,455, respectively	23.6	191,601		167,776
Total intangible lease assets, net		$	931,832	$	928,844
Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $108,537 and $106,504, respectively	19.8	$	117,121	$	120,938

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 March 31, 2021 (in thousands):

	Remainder of 2021		2022		2023		2024		2025		2026
In-place leases and other intangibles:
Total projected to be included in amortization expense	$	79,608	$	93,873	$	84,023	$	74,892	$	62,809	$	56,470
Leasing commissions:
Total projected to be included in amortization expense	2,015		2,485		2,194		1,979		1,721		1,498
Above-market lease assets and deferred lease incentives:
Total projected to be deducted from rental revenue	15,679		20,388		19,449		18,055		16,488		14,413
Below-market lease liabilities:
Total projected to be included in rental revenue	10,480		13,108		12,388		10,591		9,372		8,848

Schedule of equity method investments

The following is a summary of the Company’s investments in unconsolidated entities as of March 31, 2021 and December 31, 2020 and for the three months ended March 31, 2021 and 2020 (dollar amounts in thousands):

	Ownership % (1)	Number of Properties	Carrying Amount of Investment				Equity in Income
							Three Months Ended
Investment	March 31, 2021		March 31, 2021		December 31, 2020		March 31, 2021		March 31, 2020
Industrial Partnership	20%	7	$	44,570	$	45,378	$	245	180
Office Partnership	20%	4	13,117		13,435		202		73
Faison JV Bethlehem GA (2)	—%	—	—		—		—		(7)
Total unconsolidated joint ventures			$	57,687	$	58,813	$	447	$	246
Preferred equity (3)			22,826		22,826		—		—
Total investment in unconsolidated entities			$	80,513	$	81,639	$	447	$	246

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(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 capital contributions, 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)During the three months ended March 31, 2020, the Company had a 90% ownership interest in one property. On October 30, 2020, the Company closed on the purchase of the joint venture partner’s 10% ownership interest.

(3)Represents a preferred equity interest in the development of one distribution center in which the Company is entitled to receive a cumulative preferred return of 9% per year on its contributions of $22.8 million. The Company has no further obligation to make additional contributions.