XML 38 R12.htm IDEA: XBRL DOCUMENT

Note 4 - Property Acquisitions

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Business Combination Disclosure [Text Block]

4. Property Acquisitions:

Acquisition/Consolidation of Operating Properties

During the year ended December 31, 2022, the Company acquired the following operating properties, through direct asset purchases (in thousands):

										Purchase Price
Property Name		Location				Month Acquired				Cash				Debt				Other				Total				GLA*
Rancho San Marcos Parcel		San Marcos, CA				Jan-22				$	2,407			$	-			$	-			$	2,407				6
Columbia Crossing Parcel		Columbia, MD				Feb-22					16,239				-				-				16,239				60
Oak Forest Parcel		Houston, TX				Jun-22					3,846				-				-				3,846				4
Devon Village (1)		Devon, PA				Jun-22					733				-				-				733				-
Fishtown Crossing		Philadelphia, PA				Jul-22					39,291				-				-				39,291				133
Carman’s Plaza		Massapequa, NY				Jul-22					51,423				-				-				51,423				195
Pike Center (1)		Rockville, MD				Jul-22					21,850				-				-				21,850				-
Baybrook Gateway (1)		Webster, TX				Oct-22					2,978				-				-				2,978				-
Portfolio (8 Properties) (2)		Long Island, NY				Nov-22					152,078				88,792				135,663				376,533				536
Gordon Plaza (1)		Woodbridge, VA				Nov-22					5,573				-				-				5,573				-
The Gardens at Great Neck (1)		Great Neck, NY				Dec-22					4,019				-				-				4,019				-
										$	300,437			$	88,792			$	135,633			$	524,892				934

* Gross leasable area ("GLA")

(1)	Land parcel

(2)

Other consists of redeemable noncontrolling interest of $79.7 million and an embedded derivative liability associated with put and call options of these units of $56.0 million. See Footnotes 15 and 16 of the Company’s Consolidated Financial Statements for additional discussion regarding fair value allocation to unitholders for noncontrolling interests.

During the year ended December 31, 2021, in addition to the properties acquired in the Merger (see Footnote 2 of the Notes to Consolidated Financial Statements), the Company acquired the following operating properties, through direct asset purchases or consolidation due to change in control resulting from the purchase of additional interests or obtaining control through the modification of a joint venture investment (in thousands):

										Purchase Price
Property Name		Location				Month Acquired/ Consolidated				Cash				Debt				Other				Total				GLA
Distribution Center #1 (1)		Lancaster, CA				Jan-21				$	58,723			$	-			$	11,277			$	70,000				927
Distribution Center #2 (1)		Woodland, CA				Jan-21					27,589				-				6,411				34,000				508
Jamestown Portfolio (6 properties) (2)		Various				Oct-21					172,899				170,000				87,094				429,993				1,226
KimPru Portfolio (2 properties) (2)		Various				Oct-21					61,705				64,169				15,212				141,086				478
Columbia Crossing Parcel		Columbia, MD				Oct-21					12,600				-				-				12,600				45
Centro Arlington (2)		Arlington, VA				Nov-21					24,178				-				184,850				209,028				72
										$	357,694			$	234,169			$	304,844			$	896,707				3,256

(1)

Other 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 was amortized over the initial term of the lease through Revenues from rental properties, net on the Company's Consolidated Statements of Income. See Footnote 16 of the Company’s Consolidated Financial Statements for additional discussion regarding fair value allocation of partnership interest for noncontrolling interests.

(2)

Other includes the Company’s previously held equity investments and net gains on change in control. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized net gains on change in control of interests of $5.0 million, in aggregate, resulting from the fair value adjustments associated with the Company’s previously held equity interests, which are included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Income. The Company previously held an ownership interest of 30.0% in Jamestown Portfolio, 15.0% in KimPru Portfolio and 90.0% in Centro Arlington.

Included in the Company’s Consolidated Statements of Income are $9.1 million and $10.3 million in total revenues from the date of acquisition through December 31, 2022 and 2021, respectively, for operating properties acquired during each of the respective years.

Purchase Price Allocations

The purchase price for these acquisitions is allocated to real estate and related intangible assets acquired and liabilities assumed, as applicable, in accordance with our accounting policies for asset acquisitions. The purchase price allocations for properties acquired/consolidated during the years ended December 31, 2022 and 2021, are as follows (in thousands):

		Allocation as of December 31, 2022				Weighted- Average Useful Life (in Years)				Allocation as of December 31, 2021				Weighted- Average Useful Life (in Years)
Land		$	207,067				n/a			$	154,320				n/a
Buildings			271,525				50.0				679,646				50.0
Building improvements			13,273				45.0				18,476				45.0
Tenant improvements			11,689				7.9				16,391				8.5
Solar panels			2,308				20.0				-				n/a
In-place leases			28,405				6.9				48,648				9.1
Above-market leases			8,408				8.3				6,581				6.5
Below-market leases			(24,069	)			16.1				(39,712	)			38.9
Mortgage fair value adjustment			9,430				6.5				-				n/a
Other assets			-				n/a				21,331				n/a
Other liabilities			(3,144)				n/a				(8,974	)			n/a
Net assets acquired/consolidated		$	524,892							$	896,707