Real Estate Investments

6 Months Ended

Jun. 30, 2022

As of June 30, 2022, the Company owned or had investments in 384 properties, including six properties currently under development. The gross real estate investment portfolio, including properties under development, totaled approximately $1.3 billion and consisted of the gross acquisition cost of land, buildings, improvements, and lease intangible assets and liabilities. The investment portfolio is geographically dispersed throughout 42 states with gross real estate investments in Texas and Illinois representing 10.0% and 9.5%, respectively, of the total gross real estate investment of the Company’s entire portfolio.

Acquisitions

During the six months ended June 30, 2022, the Company acquired 56 properties for a total purchase price of $207.3 million, inclusive of $1.9 million of capitalized acquisition costs. During the six months ended June 30, 2021, the Company acquired 66 properties for a total purchase price of $205.2 million, inclusive of $2.3 million of capitalized acquisition costs.

The acquisitions were all accounted for as asset acquisitions. An allocation of the purchase price and acquisition costs paid for the completed acquisitions is as follows (in thousands):


	Six Months Ended June 30,
	2022		2021
Land	$	49,073	$	49,634
Buildings	127,770		112,637
Site improvements	11,852		15,473
Tenant improvements	2,176		3,242
In-place lease intangible assets	22,405		23,710
Above-market lease intangible assets	353		6,487
Assumed receivables	—		44

	213,629		211,227
Liabilities assumed
Below-market lease intangible liabilities	(6,316)		(6,060)
Accounts payable, accrued expense and other liabilities	(24)		—
Purchase price (including acquisition costs)	$	207,289	$	205,167

Development

As of June 30, 2022, the Company had six property developments under construction. During the six months ended June, 30, 2022, the Company invested $9.6 million in property developments, including the acquisition of one new build-to-suit project with an initial purchase price of $1.0 million. During this period, the Company completed development on four projects and reclassified approximately $14.7 million from property under development to land, building, and improvements in the accompanying condensed consolidated balance sheets. The remaining six developments in progress are expected to be substantially completed with rent commencing at various points throughout 2022. The purchase price, including acquisition costs, and subsequent development are included in property under development in the accompanying condensed consolidated balance sheets as of June 30, 2022.

Additionally, during the first six months of 2022 and 2021, the Company capitalized less than $0.1 million of interest expense associated with properties under development.

During the six months ended June, 30, 2021, the Company invested a total of $1.9 million in a development project in Yuma, Arizona. The Company exercised its non-binding purchase option to acquire the property upon completion in 2022 and rent commenced in the second quarter of 2022. This amount, and subsequent development costs, were included in property under development in the accompanying condensed consolidated balance sheets as of December 31, 2021.

During the six months ended June, 30, 2021, the Company also invested a total of $3.4 million, including the purchase price of $3.2 million, in two properties in Fond Du Lac, Wisconsin. Upon acquisition, the Company commenced development of two build-to-suit projects, one of which was completed during the fourth quarter of 2021 and the other in the second quarter of 2022. Rent commenced for both of these developments in 2022. The purchase price, including acquisitions costs, and subsequent development costs are included in property under development in the accompanying condensed consolidated balance sheets as of December 31, 2021.

Dispositions

During the three months ended June 30, 2022, the Company sold two properties for a total sales price, net of disposal costs, of $9.9 million, recognizing a gain of $1.9 million on the sales. During the six months ended June, 30, 2022, the Company sold three properties for a total sales price, net of disposal costs, of $12.2 million, recognizing a gain of $2.0 million on the sales.

During the three and six months ended June, 30, 2021, the Company sold five properties for a total sales price, net of disposal costs, of $12.3 million, recognizing a gain of $0.5 on the sales.

Investment in Mortgage Loan Receivables

On January 26, 2022, the Company executed a fully collateralized $40.3 million loan receivable with a stated interest rate of 6.0%. The scheduled maturity date is July 26, 2023, however the Company has the right, subject to certain terms and conditions, to purchase a portion of the underlying collateralized property. The loan receivable is collateralized by real estate that is leased by three separate investment-grade tenants. The funds provided under the loan, in addition to loan origination costs of $0.1 million, are included in loan receivables, net in the accompanying condensed consolidated balance sheets as of June 30, 2022.

On June 30, 2022, the Company executed a fully collateralized $6.0 million loan receivable with a stated interest rate of 6.5%. The scheduled maturity date is June 30, 2023, however the Company has the right, subject to certain terms and conditions, to purchase the underlying collateralized properties. The loan receivable is collateralized by real estate that is leased by two separate tenants, one of which is an investment grade profile tenant. The funds provided under the loan, in addition to loan origination costs of less than $0.1 million, are included in loan receivables, net in the accompanying condensed consolidated balance sheets as of June 30, 2022.