INCOME PROPERTIES AND LEASES

3 Months Ended

Mar. 31, 2021

INCOME PROPERTIES AND LEASES

INCOME PROPERTIES AND LEASES

NOTE 4. INCOME PROPERTIES AND LEASES

Leasing revenue consists of long-term rental revenue from retail, office, and commercial income properties, and billboards, 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 components of leasing revenue are as follows (in thousands):

	Three Months Ended
	March 31, 2021		March 31, 2020
Leasing Revenue
Lease Payments	$	9,698	$	9,268
Variable Lease Payments		1,751		1,735
Total Leasing Revenue	$	11,449	$	11,003

Minimum future base rental revenue on non-cancelable leases subsequent to March 31, 2021, for the next five years ended December 31 are summarized as follows (in thousands):

Year Ending December 31,	Amounts
Remainder of 2021	$	40,655
2022		40,554
2023		38,432
2024		35,665
2025		34,941
2026 and thereafter (cumulative)		170,430
Total	$	360,677

2021 Acquisitions. During the three months ended March 31, 2021, the Company acquired two multi-tenant income properties for an aggregate purchase price of $38.5 million, or a total acquisition cost of $38.6 million including capitalized acquisition costs. Of the total acquisition cost, $18.4 million was allocated to land, $14.3 million was allocated to buildings and improvements, and $5.9 million was allocated to intangible assets pertaining to the in-place lease value, leasing costs, and above market lease value. The weighted average amortization period for the intangible assets and liabilities was 7.6 years at acquisition.

The properties acquired during the three months ended March 31, 2021 are described below:

Tenant Description	Tenant Type	Property Location	Date of Acquisition	Property Square-Feet	Purchase Price ($000's)		Percentage Leased at Acquisition	Remaining Lease Term at Acquisition Date (in years)
Jordan Landing	Multi-Tenant	West Jordan, UT	03/02/21	183,320	$	20,000	93%	7.9
Eastern Commons	Multi-Tenant	Henderson, NV	03/10/21	146,667		18,500	88%	6.9
		Total / Weighted Average		329,987	$	38,500		7.4

2021 Dispositions. During the three months ended March 31, 2021, the Company disposed of one multi-tenant income property and one single-tenant income property. See Note 25, “Assets and Liabilities Held for Sale” for information related to the single-tenant income property transferred to held for sale as of March 31, 2021 and Note 26, “Subsequent Events”, for information related to the single-tenant income property sold subsequent to March 31, 2021.  

The properties disposed of during the three months ended March 31, 2021 are described below (in thousands):

Tenant Description	Tenant Type	Date of Disposition	Sales Price		Gain on Sale
World of Beer/Fuzzy's Taco Shop, Brandon, FL	Multi-Tenant	01/20/21	$	2,310	$	599
Moe's Southwest Grill, Jacksonville, FL	Single-Tenant	02/23/21		2,541		109
Total			$	4,851	$	708

2021 Operational Highlights. During the three months ended, the Company signed leases totaling 133,500 square feet. A summary of the Company’s leasing activity is as follows (in thousands, except square foot and lease term data):

Retail	Square Feet	Weighted Average Lease Term	Cash Rent Per Square Foot		Tenant Improvements		Leasing Commissions
New Leases	3.5	9.1	$	46.95	$	56	$	99
Renewals & Extensions	130.0	5.2	$	12.19		97		88
Total	133.5	5.5	$	13.12	$	153	$	187

2020 Acquisitions. During the three months ended March 31, 2020, the Company acquired two multi-tenant income properties for an aggregate purchase price of $137.2 million, or a total acquisition cost of $137.7 million including capitalized acquisition costs. Of the total acquisition cost, $46.7 million was allocated to land, $74.0 million was allocated to buildings and improvements, $18.8 million was allocated to intangible assets pertaining to the in-place lease value, leasing fees, and above market lease value, and $1.8 million was allocated to intangible liabilities for the below market lease value. No income properties were disposed of during the three months ended March 31, 2020.

The properties acquired during the three months ended March 31, 2020 are described below:

Tenant Description	Tenant Type	Property Location	Date of Acquisition	Property Square-Feet	Purchase Price ($000's)		Percentage Leased at Acquisition	Remaining Lease Term at Acquisition Date (in years)
Crossroads Towne Center	Multi-Tenant	Chandler, AZ	01/24/20	254,109	$	61,800	99%	5.0
Ashford Lane	Multi-Tenant	Atlanta, GA	02/21/20	268,572		75,435	80%	3.6
		Total / Weighted Average		522,681	$	137,235		4.2