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Investments in Real Estate (Tables)

3 Months Ended

Mar. 31, 2021

Real Estate Investments, Net [Abstract]

Below is a summary of our acquisitions for 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, 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.

Below is a summary of our acquisitions for the three months ended March 31, 2020:


	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.

Schedule allocation of acquisitions

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

(1) U.K. land includes £570,000 of right of use assets under long-term ground leases.

(2) The weighted average amortization period for acquired lease intangible assets is 16.4 years.

(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.

(4) The weighted average amortization period for acquired lease intangible liabilities is 11.8 years.

(5) U.S. other liabilities consists entirely of deferred rent on certain below-market leases.

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

(1) U.K. land includes £6.5 million of right of use assets under long-term ground leases.

(2) The weighted average amortization period for acquired lease intangible assets is 12.4 years.

(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.

(4) The weighted average amortization period for acquired lease intangible liabilities is 14.8 years.

(5) U.S. other liabilities consists entirely of lease liabilities under ground leases.

Schedule of future impact related to amortization of above-market, below-market and in-place lease intangibles

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