Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

Leases

Intangible Lease Asset

The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of March 31, 2022 (dollars in thousands):

Acquisition Date	Property Type	Primary Location(s)	Intangible Lease Asset, Gross		Accumulated Amortization		Intangible Lease Asset, Net of Amortization
September 2021	Industrial	Jeffersonville, GA	$	49,192	$	(1,440)	$	47,752
			$	49,192	$	(1,440)	$	47,752

The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of December 31, 2021 (dollars in thousands):

Acquisition Date	Property Type	Primary Location(s)	Intangible Lease Asset, Gross		Accumulated Amortization		Intangible Lease Asset, Net of Amortization
September 2021	Industrial	Jeffersonville, GA	$	49,192	$	(720)	$	48,472
			$	49,192	$	(720)	$	48,472

Rental Income

On September 17, 2021, the Company, through a joint venture, purchased an industrial facility that is subject to an existing triple net lease. The minimum rental amount due under the lease is subject to annual increases of 2.0%. The initial term of the lease expires in 2038 and contains renewal options for four consecutive five-year terms. The remaining lease term is 16.5 years. Rental income for this lease for the three months ended March 31, 2022 totaled $2.3 million. Rental income is included in Revenue from real estate owned in the consolidated statements of operations.

The following table summarizes the Company's schedule of future minimum rents to be received under the industrial facility lease (dollars in thousands):

Minimum Rents	March 31, 2022
2022 (April - December)	$	5,923
2023	8,046
2024	8,207
2025	8,372
2026	8,539
2027 and beyond	114,981
Total minimum rent	$	154,068

Amortization Expense

Intangible lease assets are amortized using the straight-line method over the contractual life of the lease, of a period up to 20 years. The weighted average life of the intangible asset as of March 31, 2022 is approximately 16.5 years. Amortization expense for the three months ended March 31, 2022 totaled $0.7 million. Amortization expense for the three months ended March 31, 2021 totaled $0.2 million.

The following table summarizes the Company's expected amortization for intangible assets over the next five years, assuming no further acquisitions or dispositions (dollars in thousands):

Amortization Expense	March 31, 2022
2022 (April - December)	$	(2,160)
2023	(2,880)
2024	(2,880)
2025	(2,880)
2026	(2,880)

Leases

Leases

Intangible Lease Asset

The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of March 31, 2022 (dollars in thousands):

Acquisition Date	Property Type	Primary Location(s)	Intangible Lease Asset, Gross		Accumulated Amortization		Intangible Lease Asset, Net of Amortization
September 2021	Industrial	Jeffersonville, GA	$	49,192	$	(1,440)	$	47,752
			$	49,192	$	(1,440)	$	47,752

The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of December 31, 2021 (dollars in thousands):

Acquisition Date	Property Type	Primary Location(s)	Intangible Lease Asset, Gross		Accumulated Amortization		Intangible Lease Asset, Net of Amortization
September 2021	Industrial	Jeffersonville, GA	$	49,192	$	(720)	$	48,472
			$	49,192	$	(720)	$	48,472

Rental Income

On September 17, 2021, the Company, through a joint venture, purchased an industrial facility that is subject to an existing triple net lease. The minimum rental amount due under the lease is subject to annual increases of 2.0%. The initial term of the lease expires in 2038 and contains renewal options for four consecutive five-year terms. The remaining lease term is 16.5 years. Rental income for this lease for the three months ended March 31, 2022 totaled $2.3 million. Rental income is included in Revenue from real estate owned in the consolidated statements of operations.

The following table summarizes the Company's schedule of future minimum rents to be received under the industrial facility lease (dollars in thousands):

Minimum Rents	March 31, 2022
2022 (April - December)	$	5,923
2023	8,046
2024	8,207
2025	8,372
2026	8,539
2027 and beyond	114,981
Total minimum rent	$	154,068

Amortization Expense

Intangible lease assets are amortized using the straight-line method over the contractual life of the lease, of a period up to 20 years. The weighted average life of the intangible asset as of March 31, 2022 is approximately 16.5 years. Amortization expense for the three months ended March 31, 2022 totaled $0.7 million. Amortization expense for the three months ended March 31, 2021 totaled $0.2 million.

The following table summarizes the Company's expected amortization for intangible assets over the next five years, assuming no further acquisitions or dispositions (dollars in thousands):

Amortization Expense	March 31, 2022
2022 (April - December)	$	(2,160)
2023	(2,880)
2024	(2,880)
2025	(2,880)
2026	(2,880)