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Real Estate Investments
 9 Months Ended
Sep. 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 September 30, 2016 and December 31, 2015 (in thousands, except number of properties):
 
 
 
September 30, 2016
 
December 31, 2015
 
 
 
 
 
 
 
 
 
Number of Properties
 
 
341
 
 
278
 
Gross Leasable Area
 
 
6,685
 
 
5,207
 
 
 
 
 
 
 
 
 
Land
 
$
295,311
 
$
225,274
 
Buildings
 
 
662,612
 
 
526,912
 
Property under Development
 
 
5,795
 
 
3,663
 
Gross Real Estate Investments
 
$
963,718
 
$
755,849
 
Less Accumulated Depreciation
 
$
(65,884)
 
 
(56,401)
 
Net Real Estate Investments
 
$
897,834
 
$
699,448
 
 
Lease Intangibles
The following table details lease intangibles, net of accumulated amortization, as of September 30, 2016 and December 31, 2015 (in thousands):
 
 
 
September 30, 2016
 
December 31, 2015
 
 
 
 
 
 
 
 
 
Intangible Lease Asset - In-Place Leases
 
$
59,602
 
$
47,052
 
Less: Accumulated Amortization
 
 
(10,667)
 
 
(7,239)
 
Intangible Lease Asset - Above-Market Leases
 
 
94,968
 
 
61,241
 
Less: Accumulated Amortization
 
 
(11,936)
 
 
(7,367)
 
Intangible Lease Liability - Below-Market Leases
 
 
(35,530)
 
 
(21,164)
 
Less: Accumulated Amortization
 
 
6,165
 
 
4,029
 
Lease Intangible Asset, net
 
$
102,602
 
$
76,552
 
 
Investments
During the three months ended September 30, 2016, the Company purchased 14 retail net lease assets for approximately $49.5 million, including acquisition and closing costs. These properties are located in 11 states and are leased to 13 different tenants operating in 11 diverse retail sectors for a weighted average lease term of approximately 10.6 years. The underwritten weighted average capitalization rate on the Company’s acquisitions was approximately 8.0%.
 
During the nine months ended September 30, 2016, the Company purchased 60 retail net lease assets for approximately $234.0 million, which includes acquisition and closing costs. These properties are located in 23 states and are leased to 40 different tenants operating in 20 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 nine months ended September 30, 2016 were allocated $69.4 million to land, $132.6 million to buildings and improvements, and $32.0 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 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 September 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 September 30, 2016, the Company sold two assets for net proceeds of $15.0 million; a Walgreens property in Rancho Cordova, California and a Walgreens property in Macomb, Michigan. The Company recorded a net gain of approximately $4.4 million on the sales.
 
During the nine months ended September 30, 2016, the Company sold three assets for net proceeds of $22.1 million, including the two assets described above, in addition to the sale of a Walgreens in Port St. Johns, Florida. The Company recorded a net gain of approximately $7.1 million on the sales