
	Number of Properties	Leasable Square Feet	Investment ($ in thousands)		Weighted Average Lease Term (Years)	Initial Average Cash Lease Yield
Three months ended March 31, 2021 (1)
Acquisitions - U.S. (in 25 states)	77	2,298,606	$	566,909	13.5	5.6	%
Acquisitions - U.K. (2)	12	932,967	402,962		10.6	4.9	%
Total acquisitions	89	3,231,573	$	969,871	12.4	5.3	%
Properties under development - U.S.	21	1,597,165	57,931		15.5	5.6	%
Total (3)	110	4,828,738	$	1,027,802	12.6	5.3	%

(1)None of our investments during the three months ended March 31, 2021 caused any one client to be 10% or more of our total assets at March 31, 2021. All of our investments in acquired properties during the three months ended March 31, 2021 are 100% leased at the acquisition date.

(2)Represents investments of £290.2 million Sterling during the three months ended March 31, 2021, converted at the applicable exchange rate on the date of acquisition.

(3)Our clients occupying the new properties operate in 23 industries, and are 65.1% retail and 34.9% industrial, based on rental revenue. Approximately 39% of the rental revenue generated from acquisitions during the three months ended March 31, 2021 is from investment grade rated clients, their subsidiaries or affiliated companies.

The acquisitions during the three months ended March 31, 2021, which had no associated contingent consideration, were allocated as follows (amounts in millions):


	Acquisitions - U.S.		Acquisitions - U.K.
Three months ended March 31, 2021	(USD)		(£ Sterling)
Land (1)	$	205.1	£	120.2
Buildings and improvements	297.5		132.1
Lease intangible assets (2)	95.3		38.8
Other assets (3)	17.3		—
Lease intangible liabilities (4)	(1.7)		(0.9)
Other liabilities (5)	(21.5)		—
	$	592.0	£	290.2

(3) U.S. other assets consists entirely of financing receivables with above-market terms. U.K. other assets consists entirely of right of use assets under ground leases.

The properties acquired during the three months ended March 31, 2021 generated total revenues of $5.1 million and net income of $2.0 million during the three months ended March 31, 2021.


	Number of Properties	Leasable Square Feet	Investment ($ in thousands)		Weighted Average Lease Term (Years)	Initial Average Cash Lease Yield
Three months ended March 31, 2020 (1)
Acquisitions - U.S. (in 22 states)	54	1,423,690	$	318,300	14.8	6.5	%
Acquisitions - U.K. (2)	4	389,680	165,573		12.5	5.1	%
Total acquisitions	58	1,813,370	$	483,873	14.2	6.0	%
Properties under development - U.S.	7	177,545	2,142		10.6	7.5	%
Total (3)	65	1,990,915	$	486,015	14.1	6.0	%

(1)None of our investments during the three months ended March 31, 2020 caused any one client to be 10% or more of our total assets at March 31, 2020. All of our investments in acquired properties during the three months ended March 31, 2020 were 100% leased at the acquisition date.

(2)Represents investments of £133.3 million Sterling during the three months ended March 31, 2020, converted at the applicable exchange rate on the date of the acquisition.

(3) Our clients occupying the new properties operated in 17 industries, and are 95.4% retail and 4.6% industrial, based on rental revenue. Approximately 36% of the rental revenue generated from acquisitions during the three months ended March 31, 2020 was from investment grade rated clients, their subsidiaries or affiliated companies.

The acquisitions during the three months ended March 31, 2020, which had no associated contingent consideration, were allocated as follows (amounts in millions):


	Acquisitions - U.S.		Acquisitions - U.K.
Three months ended March 31, 2020	(USD)		(£ Sterling)
Land (1)	$	62.1	£	21.2
Buildings and improvements	222.8		48.3
Lease intangible assets (2)	36.0		29.8
Other assets (3)	1.5		34.0
Lease intangible liabilities (4)	(1.7)		—
Other liabilities (5)	(0.9)		—
	$	319.8	£	133.3

(3) U.S. other assets consists of $810,000 of 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.

The properties acquired during the three months ended March 31, 2020 generated total revenues of $3.9 million and net income of $1.2 million during the three months ended March 31, 2020.

The initial average cash lease yield for a property is generally computed as estimated contractual first year cash net operating income, which, in the case of a net leased property, is equal to the aggregate cash base rent for the first full year of each lease, divided by the total cost of the property. Since it is possible that a client could default on the payment of contractual rent, we cannot provide assurance that the actual return on the funds invested will remain at the percentages listed above.

In the case of a property under development or expansion, the contractual lease rate is generally fixed such that rent varies based on the actual total investment in order to provide a fixed rate of return. When the lease does not provide for a fixed rate of return on a property under development or expansion, the initial average cash lease yield is computed as follows: estimated cash net operating income (determined by the lease) for the first full year of each lease, divided by our projected total investment in the property, including land, construction and capitalized interest costs.

During the three months ended March 31, 2021, we capitalized costs of $1.5 million on existing properties in our portfolio, consisting of $706,000 for re-leasing costs, $23,000 for recurring capital expenditures, and $769,000 for non-recurring building improvements. In comparison, during the three months ended March 31, 2020, we capitalized costs of $2.1 million on existing properties in our portfolio, consisting of $138,000 for re-leasing costs, and $2.0 million for non-recurring building improvements.

Of the $1.0 billion we invested during the three months ended March 31, 2021, approximately $856.8 million was used to acquire 68 properties with existing leases. In comparison, of the $486.0 million we invested during the three months ended March 31, 2020, approximately $363.0 million was used to acquire 39 properties with existing leases. The value of the in-place and above-market leases is recorded to lease intangible assets, net on our consolidated balance sheets, and the value of the below-market leases is recorded to lease intangible liabilities, net on our consolidated balance sheets.

The values of the in-place leases are amortized as depreciation and amortization expense. The amounts amortized to expense for all of our in-place leases, for the three months ended March 31, 2021 and 2020 were $35.8 million and $32.6 million, respectively.

The values of the above-market and below-market leases are amortized over the term of the respective leases, including any bargain renewal options, as an adjustment to rental revenue on our consolidated statements of income and comprehensive income. The amounts amortized as a net decrease to rental revenue for capitalized above-market and below-market leases for the three months ended March 31, 2021 and 2020 were $12.4 million and $8.2 million, respectively. If a lease was to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be recorded to revenue or expense, as appropriate.

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 March 31, 2021 (dollars in thousands):


	Net decrease to rental revenue		Increase to amortization expense
2021	$	(27,863)	$	108,990
2022	(35,809)		134,681
2023	(34,204)		122,422
2024	(32,622)		113,625
2025	(32,068)		104,241
Thereafter	(193,122)		566,592
Totals	$	(355,688)	$	1,150,551