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Rental Property | 3 Months Ended
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Mar. 31, 2022
Real Estate [Abstract] |
Rental Property | Rental Property The following table summarizes the components of rental property as of March 31, 2022 and December 31, 2021.
Rental Property (in thousands) |  | March 31, 2022 |  | December 31, 2021
Land |  | $ | 626,385 |  |  | $ | 617,297 |
Buildings, net of accumulated depreciation of $433,560 and $406,670, respectively |  | 4,126,324 |  |  | 4,035,210 |
Tenant improvements, net of accumulated depreciation of $27,270 and $26,065, respectively |  | 43,788 |  |  | 43,999 |
Building and land improvements, net of accumulated depreciation of $189,540 and $179,132, respectively |  | 324,917 |  |  | 320,041 |
Construction in progress |  | 40,696 |  |  | 36,493 |
Deferred leasing intangibles, net of accumulated amortization of $288,640 and $282,038, respectively |  | 561,267 |  |  | 567,658 |
Total rental property, net |  | $ | 5,723,377 |  |  | $ | 5,620,698 |
Acquisitions The following table summarizes the acquisitions of the Company during the three months ended March 31, 2022. The Company accounted for all of its acquisitions as asset acquisitions.
Market(1) |  | Date Acquired |  | Square Feet |  | Number of Buildings |  | Purchase Price (in thousands)
Kansas City, MO |  | January 6, 2022 |  | 702,000 |  |  | 1 |  |  | $ | 60,428 |
Chicago, IL |  | January 31, 2022 |  | 72,499 |  |  | 1 |  |  | 8,128 |
Columbus, OH |  | February 8, 2022 |  | 138,213 |  |  | 1 |  |  | 11,492 |
Cleveland, OH |  | February 8, 2022 |  | 136,800 |  |  | 1 |  |  | 13,001 |
Nashville, TN |  | March 10, 2022 |  | 109,807 |  |  | 1 |  |  | 12,810 |
Greenville/Spartanburg, SC |  | March 10, 2022 |  | 289,103 |  |  | 1 |  |  | 28,274 |
Memphis, TN |  | March 18, 2022 |  | 195,622 |  |  | 1 |  |  | 15,828 |
Greenville/Spartanburg, SC |  | March 18, 2022 |  | 155,717 |  |  | 1 |  |  | 16,390 |
Three months ended March 31, 2022 |  |  |  | 1,799,761 |  |  | 8 |  |  | $ | 166,351 |
(1) As defined by CoStar Realty Information Inc (“CoStar”). If the building is located outside of a CoStar defined market, the city and state is reflected. The following table summarizes the allocation of the total purchase price paid (on the closing dates) for the assets and liabilities acquired by the Company during the three months ended March 31, 2022 in connection with the acquisitions identified in the table above.
|  | Three months ended March 31, 2022 |  |
Acquired Assets and Liabilities |  | Purchase Price (in thousands) |  | Weighted Average Amortization Period (years) of Intangibles at Acquisition |  |  |  |
Land |  | $ | 10,746 |  |  | N/A |  |  |  |
Buildings |  | 127,778 |  |  | N/A |  |  |  |
Tenant improvements |  | 692 |  |  | N/A |  |  |  |
Building and land improvements |  | 5,384 |  |  | N/A |  |  |  |
Other assets |  | 2,134 |  |  | N/A |  |  |  |
Deferred leasing intangibles - In-place leases |  | 11,512 |  |  | 5.3 |  |  |  |
Deferred leasing intangibles - Tenant relationships |  | 7,319 |  |  | 9.0 |  |  |  |
Deferred leasing intangibles - Above market leases |  | 959 |  |  | 6.9 |  |  |  |
Deferred leasing intangibles - Below market leases |  | (173) |  |  | 3.7 |  |  |  |
Total purchase price |  | $ | 166,351 |  |  |  |  |  |  |
The following table summarizes the results of operations for the three months ended March 31, 2022 for the buildings acquired during the three months ended March 31, 2022, which are included in the Company’s Consolidated Statements of Operations from the date of acquisition.
Results of Operations (in thousands) |  | Three months ended March 31, 2022 |  |
Total revenue |  | $ | 1,251 |  |  |
Net loss |  | $ | 113 |  |  |
Dispositions During the three months ended March 31, 2022, the Company sold one building and one land parcel to third parties comprised of approximately 0.2 million rentable square feet with a net book value of approximately $11.3 million. This building contributed approximately $0.2 million and $0.4 million to revenue for the three months ended March 31, 2022 and 2021, respectively. This building contributed approximately $0.2 million and $0.3 million to net income (exclusive of gain on the sales of rental property, net) for the three months ended March 31, 2022 and 2021, respectively. Net proceeds from the sales of rental property were approximately $35.3 million and the Company recognized the full gain on the sales of rental property, net, of approximately $24.0 million for the three months ended March 31, 2022. Deferred Leasing Intangibles The following table summarizes the deferred leasing intangibles on the accompanying Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021.
|  | March 31, 2022 |  | December 31, 2021
Deferred Leasing Intangibles (in thousands) |  | Gross |  | Accumulated Amortization |  | Net |  | Gross |  | Accumulated Amortization |  | Net
Above market leases |  | $ | 89,747 |  |  | $ | (31,436) |  |  | $ | 58,311 |  |  | $ | 91,565 |  |  | $ | (32,110) |  |  | $ | 59,455 |
Other intangible lease assets |  | 760,160 |  |  | (257,204) |  |  | 502,956 |  |  | 758,131 |  |  | (249,928) |  |  | 508,203 |
Total deferred leasing intangible assets |  | $ | 849,907 |  |  | $ | (288,640) |  |  | $ | 561,267 |  |  | $ | 849,696 |  |  | $ | (282,038) |  |  | $ | 567,658 |
Below market leases |  | $ | 55,957 |  |  | $ | (22,245) |  |  | $ | 33,712 |  |  | $ | 56,857 |  |  | $ | (21,136) |  |  | $ | 35,721 |
Total deferred leasing intangible liabilities |  | $ | 55,957 |  |  | $ | (22,245) |  |  | $ | 33,712 |  |  | $ | 56,857 |  |  | $ | (21,136) |  |  | $ | 35,721 |
The following table summarizes the amortization expense and the net decrease to rental income for the amortization of deferred leasing intangibles during the three months ended March 31, 2022 and 2021.
|  | Three months ended March 31, |  |
Deferred Leasing Intangibles Amortization (in thousands) |  | 2022 |  | 2021 |  |  |  |
Net increase (decrease) to rental income related to above and below market lease amortization |  | $ | 79 |  |  | $ | (1,480) |  |  |  |  |
Amortization expense related to other intangible lease assets |  | $ | 24,077 |  |  | $ | 22,447 |  |  |  |  |
The following table summarizes the amortization of deferred leasing intangibles over the next five calendar years (including the remainder of 2022) as of March 31, 2022.
Year |  | Amortization Expense Related to Other Intangible Lease Assets (in thousands) |  | Net Decrease to Rental Income Related to Above and Below Market Lease Amortization (in thousands)
Remainder of 2022 |  | $ | 67,986 |  |  | $ | 180 |
2023 |  | $ | 80,666 |  |  | $ | 727 |
2024 |  | $ | 69,720 |  |  | $ | 1,361 |
2025 |  | $ | 60,629 |  |  | $ | 1,185 |
2026 |  | $ | 52,145 |  |  | $ | 1,626 |

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI https://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI https://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI https://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI https://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI https://asc.fasb.org/topic&trid=2134617 + Details
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