Real Estate Investments, Net

Property Acquisitions

The following table presents the allocation of the assets acquired and liabilities assumed during the three months ended March 31, 2019 and 2018, and, in the case of assets located outside of the United States, based on the exchange rate at the time of purchase. All acquisitions in both periods were considered asset acquisitions for accounting purposes.



	Three Months Ended March 31,
(Dollar amounts in thousands)	2019			2018
Real estate investments, at cost:
Land	$	2,442		$	10,729
Buildings, fixtures and improvements	17,349			44,772
Total tangible assets	19,791			55,501
Acquired intangible lease assets:
In-place leases	3,846			8,893
Above-market lease assets	64			—
Below-market lease liabilities	(247		)	(798		)
Cash paid for acquired real estate investments	$	23,454		$	63,596
Number of properties purchased	2			6

Acquired Intangible Lease Assets

The Company allocates 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 months ended March 31, 2019 and 2018, the Company did not record any impairment charges for the intangible assets associated with the Company's real estate investments.

Dispositions

When the Company sells a property, any gains or losses from the sale are reflected within Gain on dispositions of real estate investments in the consolidated statements of operations.

During the three months ended March 31, 2019, the Company sold a property located in Madison, Indiana for a total contract sales price of $9.5 million, resulting in net proceeds of $9.3 million and a gain of $0.9 million, which is reflected in gains on dispositions of real estate investments in the accompanying consolidated statements of operations for the three months ended March 31, 2019.

The Company did not sell any real estate assets during the three months ended March 31, 2018.

Assets Held for Sale

When assets are identified by management as held for sale, the Company stops recognizing depreciation and amortization expense on the identified assets and estimates the sales price, net of costs to sell, of those assets. If the carrying amount of the assets classified as held for sale exceeds the estimated net sales price, the Company records an impairment charge equal to the amount by which the carrying amount of the assets exceeds the Company’s estimate of the net sales price of the assets.

As of March 31, 2019 and December 31, 2018, the Company had three properties which were not considered discontinued operations and therefore are recorded and classified as held for sale. During the quarter ended March 31, 2019 and the year ended December 31, 2018, these three properties were the only properties classified as held for sale. Accordingly, the operating results of these properties remain classified within continuing operations for all periods presented.

Significant Tenants

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 for all properties as of March 31, 2019 and December 31, 2018. The termination, delinquency or non-renewal of leases by any major tenant may have a material adverse effect on revenues.

Geographic Concentration

The following table lists the countries and U.S. states where the Company has concentrations of properties where annualized rental income on a straight-line basis represented greater than 10.0% of consolidated annualized rental income on a straight-line basis as of March 31, 2019 and December 31, 2018.



Country / U.S. State	March 31, 2019	December 31, 2018
United States	55.8%	55.7%
Michigan	13.7%	13.7%
United Kingdom	19.4%	19.0%