XML 23 R10.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Real Estate Investments, Net | 9 Months Ended
--- | ---
Sep. 30, 2018
Real Estate [Abstract] |
Real Estate Investments, Net | Real Estate Investments, Net Property Acquisitions As of September 30, 2018, included in other assets is $3.8 million in deposits primarily related to a pending acquisition with an aggregate acquisition price of $126.6 million. The following table presents the allocation of the assets acquired and liabilities assumed during the nine months ended September 30, 2018 and 2017, based on the exchange rate at the time of purchase. All acquisitions in both periods were considered asset acquisitions for accounting purposes.
|  | Nine Months Ended September 30,
(Dollar amounts in thousands) |  | 2018 |  | 2017
Real estate investments, at cost: |  |  |  |
Land |  | $ | 24,269 |  |  | $ | 6,359 |
Buildings, fixtures and improvements |  | 205,990 |  |  | 27,220 |
Total tangible assets |  | 230,259 |  |  | 33,579 |
Acquired intangible lease assets: |  |  |  |
In-place leases |  | 42,031 |  |  | 4,859 |
Above-market lease assets |  | 48 |  |  | 47 |
Below-market lease liabilities |  | (4,959 | ) |  | (1,372 | )
Cash paid for acquired real estate investments |  | $ | 267,379 |  |  | $ | 37,113 |
Number of properties purchased |  | 17 |  |  | 4 |
Acquired Intangible Lease Assets We allocate a portion of the fair value of real estate acquired to identified intangible assets and liabilities, consisting of the value of origination costs (tenant improvements, leasing commissions, and legal and marketing costs), the value of above-market and below-market leases, and the value of tenant relationships, if applicable, based in each case on their relative fair values. The Company periodically assesses whether there are any indicators that the value of the intangible assets may be impaired by performing a net present value analysis of future cash flows, discounted for the inherent risk associated with each investment. For the three and nine months ended September 30, 2018, we did not record any impairment charges for the intangible assets associated with our real estate investments. Dispositions As of September 30, 2018 and December 31, 2017, the Company did not have any properties that were classified as assets held for sale. The Company sold one real estate asset during the three months ended September 30, 2018, located in Vandalia, Ohio for a total contract sales price of $5.0 million. Prior to the sale, the Company agreed to terminate the lease with the existing tenant and received a termination fee of $3.0 million in accordance with the terms of the lease, which is recorded in rental income in the accompanying consolidated statements of operations for the three months ended September 30, 2018. At closing, the Company paid approximately $3.0 million in excess of proceeds received for the repayment of mortgage debt and recorded a loss of $1.9 million, which is reflected in loss on dispositions on real estate investments in the accompanying consolidated statements of operations for the three months ended September 30, 2018. In addition to the sale of the real estate asset located in Vandalia, Ohio, the Company sold one other real estate asset, located in San Jose, California, during the nine months ended September 30, 2018. This property was sold for a contract sales price of $20.3 million, resulting in net proceeds of $1.3 million after repayment of mortgage debt and a loss of $3.8 million, which is reflected in loss on dispositions of real estate investments in the accompanying consolidated statements of operations for the nine months ended September 30, 2018. The total contract sales price for these two real estate assets was $25.3 million and, at closing, the Company paid approximately $1.7 million, net, in excess of proceeds received from the sales for the repayment of mortgage debt and a recorded a loss of $5.8 million, net. During the nine months ended September 30, 2017, the Company sold a property located in Fort Washington, Pennsylvania for a total contract sales price of $13.0 million, resulting in net proceeds of $12.4 million and a gain of $0.4 million, which is reflected in gains on dispositions of real estate investments in the accompanying consolidated statements of operations for the nine months ended September 30, 2017. Also included in gains on dispositions of real estate investments for the three and nine months ended September 30, 2017 is a $0.3 million and $0.8 million reduction in the Gain Fee, respectively, payable to the Advisor as a result of reinvestments during the nine months ended September 30, 2017 (see Note 10 — Related Party Transactions for details) and a $0.1 million reduction to gain on disposition associated with a property sold in 2016 related to post-closing settlement for deferred rent. Future Minimum Rents The following table presents future minimum base rental cash payments due to the Company over the next five calendar years and thereafter as of September 30, 2018. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items.
(In thousands) |  | Future Minimum Base Rent Payments (1)
2018 (remainder) |  | $ | 65,414 |
2019 |  | 264,029 |
2020 |  | 267,518 |
2021 |  | 268,287 |
2022 |  | 258,975 |
2023 |  | 234,943 |
Thereafter |  | 777,237 |
|  | $ | 2,136,403 |
___________________________________________
(1) | Assumes exchange rates of £1.00 to $1.30 for GBP and €1.00 to $1.16 for EUR as of September 30, 2018 for illustrative purposes, as applicable.
There were no tenants whose annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of September 30, 2018 and December 31, 2017. The following table lists the country where the Company has concentrations of properties where annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of September 30, 2018 and December 31, 2017.
Country, State or Territory |  | September 30, 2018 |  | December 31, 2017
United States* |  | 52.9% |  | 48.9%
United Kingdom |  | 20.3% |  | 22.1%
___________________________________________ * There is no state in the United States that exceeded the 10.0% threshold.

X
- References No definition available. + Details
Name: | us-gaap_RealEstateAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 http://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 http://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 http://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 http://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 http://asc.fasb.org/topic&trid=2134617 + Details
Name: | us-gaap_RealEstateDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration