Real Estate Investments

3 Months Ended

Mar. 31, 2016

Note 3 – Real Estate Investments

Real Estate Portfolio

The Company’s real estate investments consisted of the following as of March 31, 2016 and December 31, 2015:

	March 31, 2016		December 31, 2015

Number of Properties		291		278
Gross Leasable Area		5,443,000		5,207,000

Land	$	236,700,064	$	225,273,640
Buildings		553,441,081		526,911,997
Property under Development		3,575,090		3,663,301
Gross Real Estate Investments	$	793,716,235	$	755,848,938

Less Accumulated Depreciation	$	(59,763,907)	$	(56,401,423)
Net Real Estate Investments	$	733,952,328	$	699,447,515

Lease Intangibles

The following table details lease intangibles, net of accumulated amortization, as of March 31, 2016 and December 31, 2015:

	March 31, 2016		December 31, 2015
Intangible Lease Asset - In-Place Leases	$	49,268,003	$	47,051,639
Less: Accumulated Amortization		(8,149,993)		(7,239,191)
Intangible Lease Asset - Above-Market Leases		63,605,600		61,241,046
Less: Accumulated Amortization		(8,678,391)		(7,367,216)
Intangible Lease Liability - Below-Market Leases		(23,959,459)		(21,162,576)
Less: Accumulated Amortization		4,565,100		4,028,614
Lease Intangible Asset, net	$	76,650,860	$	76,552,316

Investments

During the three months ended March 31, 2016, the Company purchased 12 retail net lease assets for approximately $33.3 million, including acquisition and closing costs. These properties are located in nine states and are leased to 13 different tenants operating in nine diverse retail sectors for a weighted average lease term of approximately 6.9 years. The underwritten weighted average capitalization rate on the Company’s acquisitions was approximately 7.9%.

The aggregate first quarter 2016 acquisitions were allocated $10.4 million to land, $21.1 million to buildings and improvements, and $1.8 million to lease intangibles. The acquisitions were all cash purchases and there was no contingent consideration associated with these acquisitions.

None of the Company’s acquisitions during the first three months of 2016 caused any new or existing tenant to comprise 10% or more of its total assets or generate 10% or more of its total annualized base rent at March 31, 2016.

The Company calculates the underwritten weighted average capitalization rate on its acquisitions by dividing annual expected net operating income derived from the properties by the total investment in the properties. Annual expected net operating income is defined as the straight-line rent for the base term of the lease less property level expenses (if any) that are not recoverable from the tenant.