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Real Estate Investments
9 Months Ended
Sep. 30, 2018
Real Estate [Abstract]  
Real Estate Disclosure [Text Block]
Note 3 – Real Estate Investments
Real Estate Portfolio
As of September 30, 2018, the Company owned 520 properties, with a total gross leasable area of approximately 10.0 million square feet. Net Real Estate Investments totaled $1.4 billion as of September 30, 2018. As of December 31, 2017, the Company owned 436 properties, with a total gross leasable area of approximately 8.7 million square feet. Net Real Estate Investments totaled $1.2 billion as of December 31, 2017.
 
Acquisitions
During the three months ended September 30, 2018, the Company purchased 43 retail net lease assets for approximately $150.0 million, which includes acquisition and closing costs. These properties are located in 20 states and are leased for a weighted average lease term of approximately 11.5 years.
 
During the nine months ended September 30, 2018, the Company purchased 96 retail net lease assets for approximately $349.9 million, which includes acquisition and closing costs. These properties are located in 29 states and are leased for a weighted average lease term of approximately 12.3 years.
 
The aggregate acquisitions for the nine months ended September 30, 2018 were allocated $81.6 million to land, $174.4 million to buildings and improvements, and $93.9 million to lease intangibles. The acquisitions were all cash purchases and there were no contingent considerations associated with these acquisitions.
 
None of the Company’s acquisitions during the first nine months of 2018 caused any new or existing tenant to comprise 10% or more of our total assets or generate 10% or more of our total annualized base rent at September 30, 2018.
 
Developments
During the third quarter of 2018, construction continued or commenced on five development and Partner Capital Solutions (“PCS”) projects with anticipated total project costs of approximately $14.0 million. The projects consist of the Company’s third and fourth development projects with Mister Car Wash; the Company’s first two development projects with Sunbelt Rentals; and the Company’s redevelopment with Hobby Lobby in Mount Pleasant, Michigan.
 
During the nine months ended September 30, 2018, the Company had 13 development or PCS projects completed or under construction.  Anticipated total costs for those projects are approximately $59.6 million and include the following completed or commenced projects:
 
Tenant
 
Location
 
Lease Structure
 
Lease

Term
 
Actual or

Anticipated Rent

Commencement
 
Status
Mister Car Wash
 
Urbandale, IA
 
Build-to-Suit
 
20 years
 
Q1 2018
 
Completed
Mister Car Wash
 
Bernalillo, NM
 
Build-to-Suit
 
20 years
 
Q1 2018
 
Completed
Burger King(1)
 
North Ridgeville, OH
 
Build-to-Suit
 
20 years
 
Q1 2018
 
Completed
Art Van Furniture
 
Canton, MI
 
Build-to-Suit
 
20 years
 
Q1 2018
 
Completed
Camping World
 
Grand Rapids, MI
 
Build-to-Suit
 
20 years
 
Q2 2018
 
Completed
ALDI
 
Chickasha, OK
 
Build-to-Suit
 
10 years
 
Q3 2018
 
Completed
Burger King(1)
 
Aurora, IL
 
Build-to-Suit
 
20 years
 
Q3 2018
 
Completed
Burlington Coat Factory
 
Nampa, ID
 
Build-to-Suit
 
15 years
 
Q3 2018
 
Completed
Mister Car Wash
 
Orlando, FL
 
Build-to-Suit
 
20 years
 
Q4 2018
 
Under Construction
Mister Car Wash
 
Tavares, FL
 
Build-to-Suit
 
20 years
 
Q4 2018
 
Under Construction
Sunbelt Rentals
 
Batavia, OH
 
Build-to-Suit
 
10 years
 
Q1 2019
 
Under Construction
Sunbelt Rentals
 
Maumee, OH
 
Build-to-Suit
 
10 years
 
Q1 2019
 
Under Construction
Hobby Lobby
 
Mt. Pleasant, MI
 
Build-to-Suit
 
15 years
 
Q4 2019
 
Under Construction
 
Notes:
(1) Franchise restaurant operated by TOMS King, LLC.
 
Dispositions
During the three months ended September 30, 2018, the Company sold six properties for net proceeds of $29.6 million and the Company recorded a net gain of $3.9 million.
 
During the nine months ended September 30, 2018, the Company sold 16 properties for net proceeds of $56.4 million and the Company recorded a net gain of $9.9 million (net of any expected losses on real estate held for sale). In addition, a tenant exercised its option to purchase a store which had previously been ground leased from the Company. The option to purchase was exercised for net proceeds of $3.9 million and the Company recorded a net gain of $1.0 million.
 
Provision for Impairment
The Company reviews long-lived assets, including intangible assets, for possible impairment when certain events or changes in circumstances indicates that the carrying amount of the asset may not be recoverable through operations. Events or changes in circumstances may include significant changes in real estate market conditions and an expectation to sell assets before the end of the previously estimated life. Impairments are measured to the extent the current book value exceeds the estimated fair value of the asset less disposition costs for any assets classified as held for sale. During the three and nine months ended September 30, 2018, the Company recognized provisions for impairment of $0.5 million and $1.7 million, respectively. There were no provisions for impairment for the three and nine months ended September 30, 2017.
 
The valuation of impaired assets is determined using valuation techniques including discounted cash flow analysis, analysis of recent comparable sales transactions, and purchase offers received from third parties, which are Level 3 inputs. The Company may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of its real estate.