Schedule of Properties Acquired |
For this acquisition, substantially all of the fair value was concentrated in a single identifiable asset or group of similar identifiable assets and, therefore, the acquisition represented an asset acquisition. Accordingly, transaction costs for this acquisition were capitalized. A rollforward of the gross investment in land, building, improvements, and acquired lease intangible assets as of December 31, 2022 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | Site | | Tenant | | Acquired Lease | | Gross Investment in | | | Land | | Building | | Improvements | | Improvements | | Intangible Assets | | Real Estate | Balances as of December 31, 2021 | | $ | 152,060 | | $ | 985,091 | | $ | 19,021 | | $ | 58,900 | | $ | 127,931 | | $ | 1,343,003 | Facility Acquired – Date Acquired: | | | | | | | | | | | | | | | | | | | Gainesville – 2/4/22 | | | 555 | | | 3,899 | | | 76 | | | 199 | | | 575 | | | 5,304 | Grand Rapids – 2/28/22 | | | 1,238 | | | 4,976 | | | 221 | | | 270 | | | 595 | | | 7,300 | Sarasota – 3/29/22 | | | 747 | | | 3,703 | | | 84 | | | 331 | | | 1,263 | | | 6,128 | Greenwood – 3/30/22 | | | 929 | | | 4,332 | | | 194 | | | 360 | | | 426 | | | 6,241 | Fairbanks – 4/1/22 | | | 1,782 | | | 12,262 | | | 215 | | | 753 | | | 7,946 | | | 22,958 | Rocky Point – 4/8/22 | | | 613 | | | 6,243 | | | 223 | | | 317 | | | 589 | | | 7,985 | Fairfax – 5/11/22 | | | 4,012 | | | 13,238 | | | 399 | | | 310 | | | 3,304 | | | 21,263 | Lee's Summit – 5/19/22 | | | 1,349 | | | 4,101 | | | 83 | | | 410 | | | 674 | | | 6,617 | Lexington – 5/27/22 | | | 1,760 | | | 11,350 | | | 289 | | | 556 | | | 3,036 | | | 16,991 | Toledo – 7/8/22 | | | 2,999 | | | 11,366 | | | 581 | | | 1,247 | | | 2,044 | | | 18,237 | Lake Geneva – 7/26/22 | | | 444 | | | 4,612 | | | 141 | | | 230 | | | 725 | | | 6,152 | Glenview – 9/1/22 | | | 1,448 | | | 6,258 | | | 241 | | | 279 | | | 912 | | | 9,138 | Canandaigua – 9/16/22 | | | 578 | | | 11,118 | | | 370 | | | 489 | | | 1,493 | | | 14,048 | Hermitage – 9/20/22 | | | 353 | | | 3,891 | | | 194 | | | 227 | | | 674 | | | 5,339 | Capitalized costs(1) | | | 141 | | | 1,419 | | | 41 | | | 1,416 | | | 396 | | | 3,413 | Total Additions: | | | 18,948 | | | 102,768 | | | 3,352 | | | 7,394 | | | 24,652 | | | 157,114 | Disposition of Germantown – 7/1/22 | | | (2,700) | | | (8,078) | | | (349) | | | (307) | | | (4,506) | | | (15,940) | Balances as of December 31, 2022 | | $ | 168,308 | | $ | 1,079,781 | | $ | 22,024 | | $ | 65,987 | | $ | 148,077 | | $ | 1,484,177 |
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Summary of Carrying amount of intangible assets and liabilities |
The following is a summary of the carrying amount of lease intangible assets and liabilities as of the dates presented: | | | | | | | | | | | | As of June 30, 2023 | | | | | | Accumulated | | | | | | Cost | | Amortization | | Net | Assets | | | | | | | | | | In-place leases | | $ | 77,571 | | $ | (38,749) | | $ | 38,822 | Above market leases | | | 24,961 | | | (8,681) | | | 16,280 | Leasing costs | | | 37,183 | | | (16,190) | | | 20,993 | | | $ | 139,715 | | $ | (63,620) | | $ | 76,095 | Liability | | | | | | | | | | Below market leases | | $ | 13,595 | | $ | (7,151) | | $ | 6,444 |
| | | | | | | | | | | | As of December 31, 2022 | | | | | | Accumulated | | | | | | Cost | | Amortization | | Net | Assets | | | | | | | | | | In-place leases | | $ | 82,374 | | $ | (34,898) | | $ | 47,476 | Above market leases | | | 26,054 | | | (7,321) | | | 18,733 | Leasing costs | | | 39,649 | | | (14,683) | | | 24,966 | | | $ | 148,077 | | $ | (56,902) | | $ | 91,175 | Liability | | | | | | | | | | Below market leases | | $ | 13,595 | | $ | (5,982) | | $ | 7,613 |
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Summary of the acquired lease intangible amortization |
| | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30, | | June 30, | | | | 2023 | | 2022 | | 2023 | | 2022 | | Amortization expense related to in-place leases | | $ | 2,993 | | $ | 2,895 | | $ | 6,041 | | $ | 5,534 | | Amortization expense related to leasing costs | | $ | 1,313 | | $ | 1,221 | | $ | 2,638 | | $ | 2,337 | | Decrease in rental revenue related to above market leases | | $ | 871 | | $ | 866 | | $ | 1,747 | | $ | 1,591 | | Increase in rental revenue related to below market leases | | $ | (584) | | $ | (551) | | $ | (1,169) | | $ | (1,077) | |
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Schedule of net amortization acquired lease intangible assets and liabilities |
As of June 30, 2023, scheduled future aggregate net amortization of the acquired lease intangible assets and liabilities for each year ended December 31 is listed below: | | | | | | | | | | | | | | | Net Decrease | | Net Increase | | | in Revenue | | in Expenses | 2023 (six months remaining) | | $ | (472) | | $ | 8,027 | 2024 | | | (1,151) | | | 14,287 | 2025 | | | (1,697) | | | 10,596 | 2026 | | | (1,803) | | | 8,775 | 2027 | | | (1,376) | | | 6,190 | Thereafter | | | (3,337) | | | 11,940 | Total | | $ | (9,836) | | $ | 59,815 |
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