Real Estate

As of March 31, 2019, the Company's real estate portfolio consisted of 27 properties (35 buildings) in 17 states consisting of office, industrial, distribution, and data center facilities with a combined acquisition value of $1.1 billion including the allocation of the purchase price to above and below-market lease valuation, encompassing approximately 7.3 million square feet.

Depreciation expense for buildings and improvements for the three months ended March 31, 2019 was $5.1 million. Amortization expense for intangibles, including, but not limited to, tenant origination and absorption costs, for the three months ended March 31, 2019 was $6.0 million.

Future Minimum Contractual Rent Payments

The future minimum contractual rent payments pursuant to the current lease terms are shown in the table below. The Company's current leases have expirations ranging from 2021 to 2044.



	As of March 31, 2019
Remaining 2019	$	59,269
2020	80,495
2021	72,680
2022	73,541
2023	71,311
Thereafter	457,574
Total	$	814,870

Intangibles

The Company allocated a portion of the acquired real estate asset value to in-place lease valuation and tenant origination and absorption cost. The in-place lease was measured against comparable leasing information and the present value of the difference between the contractual, in-place rent and the fair market rent was calculated using, as the discount rate, the capitalization rate utilized to compute the value of the real estate at acquisition.



	March 31, 2019			December 31, 2018
In-place lease valuation (above market)	$	4,046		$	4,046
In-place lease valuation (above market), accumulated amortization	(1,215		)	(1,123		)
Intangible assets, net	$	2,831		$	2,923
In-place lease valuation (below market)	$	(62,070	)	$	(62,070	)
In-place lease valuation (below market) - accumulated amortization	17,091			15,841
In-place lease valuation (below market), net	$	(44,979	)	$	(46,229	)
Tenant origination and absorption cost	$	240,364		$	240,364
Tenant origination and absorption cost - accumulated amortization	(77,331		)	(71,364		)
Tenant origination and absorption cost, net	$	163,033		$	169,000

The following table sets forth the estimated annual amortization (income) expense for in-place lease valuation and tenant origination and absorption costs as of March 31, 2019 for the next five years:



Year	In-Place Lease Valuation			Tenant Origination and Absorption Costs
Remaining 2019	$	(3,537	)	$	18,232
2020	$	(4,695	)	$	24,198
2021	$	(3,799	)	$	19,715
2022	$	(3,774	)	$	19,256
2023	$	(2,901	)	$	16,502