Investments in Real Estate (Tables)

9 Months Ended

Sep. 30, 2020

Real Estate Investments, Net [Abstract]

Schedule of acquisitions

Below is a summary of our acquisitions for the nine months ended September 30, 2020:

	Number of Properties	Leasable Square Feet (in millions)	Investment ($ in millions)		Weighted Average Lease Term (Years)	Initial Average Cash Lease Yield
Nine months ended September 30, 2020 (1)
Acquisitions - U.S. (in 28 states)	154	3.0	$	821.9	14.8	6.2	%
Acquisitions - U.K. (2)	13	1.2	453.7		10.0	6.4	%
Total acquisitions	167	4.2	1,275.6		13.1	6.3	%
Properties under development - U.S.	13	0.9	23.3		16.3	6.4	%
Total (3)	180	5.1	$	1,298.9	13.1	6.3	%

(1)None of our investments during the first nine months of 2020 caused any one tenant to be 10% or more of our total assets at September 30, 2020. All of our investments in acquired properties during the first nine months of 2020 are 100% leased at the acquisition date.    

(2)Represents investments of £356.7 million Sterling during the nine months ended September 30, 2020, converted at the applicable exchange rate on the date of acquisition.

(3)The tenants occupying the new properties operate in 23 industries, and are 96.9% retail and 3.1% industrial, based on rental revenue. Approximately 56% of the rental revenue generated from acquisitions during the first nine months of 2020 is from investment grade rated tenants, their subsidiaries or affiliated companies.

Below is a summary of our acquisitions for the nine months ended September 30, 2019:

	Number of Properties	Square Feet (in millions)	Investment ($ in millions)		Weighted Average Lease Term (Years)	Initial Average Cash Lease Yield
Nine months ended September 30, 2019 (1)
Acquisitions - U.S. (in 38 states)	214	6.2	$	1,412.9	15.7	6.5	%
Acquisitions - U.K. (2)	13	1.2	576.8		15.0	5.2	%
Total acquisitions	227	7.4	1,989.7		15.5	6.1	%
Properties under development - U.S.	14	0.4	36.0		16.0	7.4	%
Total (3)	241	7.8	$	2,025.7	15.5	6.2	%

(1)None of our investments during 2019 caused any one tenant to be 10% or more of our total assets at September 30, 2019. All of our investments in acquired properties during the first nine months of 2019 are 100% leased at the acquisition date.

(2)Represents investments of £456.1 million Sterling during the nine months ended September 30, 2019, converted at the applicable exchange rate on the date of the acquisition.

(3) The tenants occupying the new properties operated in 19 industries, and are 89.6% retail and 10.4% industrial, based on rental revenue. Approximately 25% of the rental revenue generated from acquisitions during the first nine months of 2019 was from investment grade rated tenants, their subsidiaries or affiliated companies.

Schedule allocation of acquisitions

The acquisitions during the first nine months of 2020, which had no associated contingent consideration, were allocated as follows (dollars in millions):

	Acquisitions - U.S.		Acquisitions - U.K.
Nine months ended September 30, 2020	(USD)		(£ Sterling)
Land (1)	$	226.6	£	81.0
Buildings and improvements	452.8		125.4
Lease intangible assets (2)	141.8		86.3
Other assets (3)	19.5		64.0
Lease intangible liabilities (4)	(5.1)		—
Other liabilities (5)	(0.9)		—
	$	834.7	£	356.7

(1) U.K. land includes £6.4 million of right of use assets under long-term ground leases.

(2) The weighted average amortization period for acquired lease intangible assets is 17.5 years.

(3) U.S. other assets consists of $18.8 million financing receivables with above-market terms and $689,000 of right of use assets under ground leases. U.K. other assets consists entirely of right of use assets under ground leases.

(4) The weighted average amortization period for acquired lease intangible liabilities is 13.9 years.

(5) U.S. other liabilities consists entirely of lease liabilities under ground leases.

The acquisitions during the first nine months of 2019, which had no associated contingent consideration, were allocated as follows (dollars in millions):

	Acquisitions - U.S.		Acquisitions - U.K.
Nine months ended September 30, 2019	(USD)		(£ Sterling)
Land (1)	$	280.1	£	171.3
Buildings and improvements	993.0		189.3
Lease intangible assets (2)	124.6		98.9
Other assets (3)	54.7		—
Lease intangible liabilities (4)	(28.6)		(3.4)
Other liabilities (5)	(8.4)		—
	$	1,415.4	£	456.1

(1) U.K. land includes £13.6 million of right of use assets under long-term ground leases.

(2) The weighted average amortization period for acquired lease intangible assets is 15.1 years.

(3) U.S. other assets consists entirely of financing receivables with above-market terms.

(4) The weighted average amortization period for acquired lease intangible liabilities is 19.5 years.

(5) U.S. other liabilities consists entirely of deferred rent on certain below-market leases.

Schedule of future impact related to amortization of above-market, below-market and in-place lease intangibles

The following table presents the estimated impact during the next five years and thereafter related to the amortization of the above-market and below-market lease intangibles and the amortization of the in-place lease intangibles at September 30, 2020 (dollars in thousands):

	Net decrease to rental revenue		Increase to amortization expense
2020	$	(7,751)	$	33,353
2021	(30,260)		127,724
2022	(28,720)		116,109
2023	(27,183)		103,910
2024	(25,600)		95,101
Thereafter	(158,739)		537,317
Totals	$	(278,253)	$	1,013,514