Real Estate Investments

9 Months Ended

Sep. 30, 2022

Real Estate Investments

Real Estate Investments

Note 4 – Real Estate Investments

Real Estate Portfolio

As of September 30, 2022, the Company owned 1,707 properties, with a total gross leasable area (“GLA”) of approximately 35.8 million square feet. Net Real Estate Investments totaled $5.4 billion as of September 30, 2022. As of December 31, 2021, the Company owned 1,404 properties, with a total GLA of approximately 29.1 million square feet. Net Real Estate Investments totaled $4.4 billion as of December 31, 2021.

Acquisitions

During the three months ended September 30, 2022, the Company purchased 98 retail net lease assets for approximately $361.5 million, which includes acquisition costs and closing costs. These properties are located in 29 states and are leased for a weighted average lease term of approximately 11.1 years.

During the nine months ended September 30, 2022, the Company purchased 303 retail net lease assets for approximately $1.20 billion, which includes acquisition costs, closing costs and the assumption of a $42.3 million mortgage note. These properties are located in 42 states and are leased for a weighted average lease term of approximately 10.1 years.

The aggregate acquisitions for the nine months ended September 30, 2022 were allocated $289.4 million to land, $755.8 million to buildings and improvements, $147.4 million to lease intangibles, net and $2.5 million to assumed mortgage debt discount. The acquisitions were primarily funded as cash purchases and the assumption of a mortgage note payable with a principal balance of $42.3 million. There was no material contingent consideration associated with these acquisitions. None of the Company’s acquisitions during the first nine months of 2022 caused any new or existing tenant to comprise 10% or more of its total assets or generate 10% or more of its total annualized contractual base rent at September 30, 2022.

Developments

During the three months ended September 30, 2022, the Company commenced two development or Partner Capital Solutions projects.  At September 30, 2022, the Company had 20 development or Partner Capital Solutions projects under construction.

During the nine months ended September 30, 2022, the Company commenced 22 development or Partner Capital Solutions projects.

Dispositions

During the three months ended September 30, 2022, the Company sold one property for net proceeds of $20.0 million and recorded a net gain of $3.0 million.

During the nine months ended September 30, 2022, the Company sold six properties for net proceeds of $43.9 million and recorded a net gain of $5.3 million.

Assets Held for Sale

The Company did not classify any operating properties as real estate held for sale at September 30, 2022 and classified one operating property as real estate held for sale as of December 31, 2021, the assets for which are separately presented in the Condensed Consolidated Balance Sheets.  

Real estate held for sale consisted of the following as of September 30, 2022 and December 31, 2021 (presented in thousands):

	September 30, 2022		December 31, 2021
Land	$	—	$	4,485
Lease intangibles - asset		—		1,213
		—		5,698
Accumulated depreciation and amortization, net		—		(22)
Total Real Estate Held for Sale, net	$	—	$	5,676

Provisions for Impairment

As a result of the Company’s review of real estate investments, it recognized no provisions for impairment for each of the three months ended September 30, 2022 and 2021 and $1.0 million for the nine months ended September 30, 2022 and no

impairment for the nine months ended September 30, 2021. The estimated fair value of the impaired real estate assets at their time of impairment during 2022 was $1.8 million.