XML 22 R10.htm IDEA: XBRL DOCUMENT v3.5.0.2
Real Estate Investments
 6 Months Ended
Jun. 30, 2016
Real Estate [Abstract]  
Real Estate Disclosure [Text Block]
Note 3 – Real Estate Investments
 
Real Estate Portfolio
The Company’s real estate investments consisted of the following as of June 30, 2016 and December 31, 2015: 
 
 
 
June 30, 2016
 
December 31, 2015
 
 
 
 
 
 
 
 
 
Number of Properties
 
 
326
 
 
278
 
Gross Leasable Area
 
 
6,318,729
 
 
5,207,000
 
 
 
 
 
 
 
 
 
Land
 
$
284,938,479
 
$
225,273,640
 
Buildings
 
 
628,219,043
 
 
526,911,997
 
Property under Development
 
 
4,090,845
 
 
3,663,301
 
Gross Real Estate Investments
 
$
917,248,367
 
$
755,848,938
 
Less Accumulated Depreciation
 
 
(62,943,655)
 
 
(56,401,423)
 
Net Real Estate Investments
 
$
854,304,712
 
$
699,447,515
 
 
Lease Intangibles
The following table details lease intangibles, net of accumulated amortization, as of June 30, 2016 and December 31, 2015:
 
 
 
June 30, 2016
 
December 31, 2015
 
Intangible Lease Asset - In-Place Leases
 
$
57,116,689
 
$
47,051,639
 
Less: Accumulated Amortization
 
 
(9,385,450)
 
 
(7,239,191)
 
Intangible Lease Asset - Above-Market Leases
 
 
90,519,783
 
 
61,241,046
 
Less: Accumulated Amortization
 
 
(10,251,249)
 
 
(7,367,216)
 
Intangible Lease Liability - Below-Market Leases
 
 
(32,835,370)
 
 
(21,162,576)
 
Less: Accumulated Amortization
 
 
5,346,444
 
 
4,028,614
 
Lease Intangible Asset, net
 
$
100,510,847
 
$
76,552,316
 
 
Investments
During the three months ended June 30, 2016, the Company purchased 34 retail net lease assets for approximately $151.5 million, including acquisition and closing costs. These properties are located in 15 states and are leased to 23 different tenants operating in 15 diverse retail sectors for a weighted average lease term of approximately 11.6 years. The underwritten weighted average capitalization rate on the Company’s acquisitions was approximately 7.8%.
 
During the six months ended June 30, 2016, the Company purchased 46 retail net lease assets for approximately $184.5 million, including acquisition and closing costs. These properties are located in 20 states and are leased to 36 different tenants operating in 16 diverse retail sectors for a weighted average lease term of approximately 10.7 years. The underwritten weighted average capitalization rate on the Company’s acquisitions was approximately 7.8%.
 
The aggregate acquisitions for the six months ended June 30, 2016 were allocated $60.0 million to land, $96.8 million to buildings and improvements, and $27.7 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 six 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 June 30, 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.
 
Dispositions
During the three months ended June 30, 2016, the Company sold one asset, a Walgreens property in Port St. John, FL, for gross proceeds of $7.3 million. The Company recorded a net gain of approximately $2.8 million on the sale.
 
During the six months ended June 30, 2016, the Company recognized a net gain of $2.7 million during the first half of 2016, including a gain of $2.8 million on the sale of a Walgreens in Port St. Johns, Florida. The Company also recorded additional costs of approximately $35,000 associated with a property sold in 2015.