PROPERTY PORTFOLIO

3 Months Ended

Mar. 31, 2023

PROPERTY PORTFOLIO

PROPERTY PORTFOLIO

NOTE 3. PROPERTY PORTFOLIO

As of March 31, 2023, the Company’s property portfolio consisted of 138 properties with total square footage of 3.5 million.

Leasing revenue consists of long-term rental revenue from retail and office properties, which is recognized as earned, using the straight-line method over the life of each lease. Lease payments below include straight-line base rental revenue as well as the non-cash accretion of above and below market lease amortization. The variable lease payments are comprised of percentage rent payments and reimbursements from tenants for common area maintenance, insurance, real estate taxes, and other operating expenses.

The components of leasing revenue are as follows (in thousands):

	Three Months Ended
	March 31, 2023		March 31, 2022
Lease Income
Lease Payments	$	10,163	$	9,731
Variable Lease Payments		1,003		1,068
Total Lease Income	$	11,166	$	10,799

Minimum Future Rental Receipts. Minimum future rental receipts under non-cancelable operating leases, excluding percentage rent and other lease payments that are not fixed and determinable, having remaining terms in excess of one year subsequent to March 31, 2023, are summarized as follows (in thousands):  

Year Ending December 31,	Amounts
Remainder of 2023	$	27,557
2024		35,802
2025		34,167
2026		33,475
2027		30,405
2028		26,556
2029 and Thereafter (Cumulative)		83,960
Total	$	271,922

2023 Activity. No properties were acquired during the three months ended March 31, 2023. During the three months ended March 31, 2023, the Company sold ten properties for an aggregate sales price of $56.2 million, generating aggregate gains on sale of $4.5 million.

2022 Activity. During the three months ended March 31, 2022, the Company acquired 16 properties for a combined purchase price of $65.5 million, or a total cost of $66.0 million including capitalized acquisition costs. The properties are located in 12 states, leased to 7 different tenants, and had a weighted average remaining lease term of 9.0 years at the time of acquisition. Of the total acquisition cost, $17.7 million was allocated to land, $41.7 million was allocated to buildings and improvements, $7.5 million was allocated to intangible assets pertaining to the in-place lease value, leasing fees, and above market lease value, and $0.9 million was allocated to intangible liabilities for the below market lease value. The weighted average amortization period for the intangible assets and liabilities was 9.2 years at acquisition. No properties were disposed of during the three months ended March 31, 2022.