Note 3 - Real Estate

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Real Estate Disclosure [Text Block]

3. Real Estate

Acquisitions of Operating Properties -

During the three months ended March 31, 2021, the Company acquired the following operating properties, through direct asset purchases (in thousands):

			Purchase Price
Property Name	Location	Month Acquired	Cash		Other Consideration**		Total		GLA*
Distribution Center #1	Lancaster, CA	Jan-21	$	58,723	$	11,277	$	70,000		927
Distribution Center #2	Woodland, CA	Jan-21		27,589		6,411		34,000		508
			$	86,312	$	17,688	$	104,000		1,435

* Gross leasable area ("GLA")

** Consists of the fair value of the assets acquired which exceeded the purchase price upon closing.  The transaction was a sale-leaseback with the seller which resulted in the recognition of a prepayment of rent of $17.7 million in accordance with ASC 842, Leases at closing.  The prepayment of rent will be amortized over the initial term of the lease through Revenues from rental properties, net on the Company's Condensed Consolidated Statements of Income.  See Footnote 10 of the Company’s Condensed Consolidated Financial Statements for additional discussion regarding fair value allocation of partnership interest for noncontrolling interests.

Included in the Company's Condensed Consolidated Statements of Income is $1.6 million in total revenues from the date of acquisition through March 31, 2021 for operating properties acquired during the year.

Purchase Price Allocation -

The purchase price for these acquisitions is allocated to real estate and related intangible assets acquired, as applicable, in accordance with our accounting policies for asset acquisitions. The purchase price allocation for properties acquired during the three months ended March 31, 2021, is as follows (in thousands): 

	Allocation as of March 31, 2021			Weighted Average Amortization Period (in Years)
Land	$	19,527			n/a
Building		87,691			50.0
Building improvements		6,251			45.0
Tenant improvements		711			20.0
In-place leases		11,120			20.0
Below-market leases		(21,300	)		60.0
Net assets acquired	$	104,000

Dispositions -

The table below summarizes the Company’s disposition activity relating to consolidated operating properties and parcels (dollars in millions):

	Three Months Ended March 31,
	2021		2020
Aggregate sales price	$	23.0	$	13.5
Gain on sale of properties (1)	$	10.0	$	3.8
Number of properties sold		1		1
Number of parcels sold		4		-

(1) Before noncontrolling interests of $3.0 million and taxes of $1.0 million for the three months ended March 31, 2021.