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Property Acquisitions | 6 Months Ended
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Jun. 30, 2024
Business Combinations [Abstract] |
Property Acquisitions | NOTE 12. — PROPERTY ACQUISITIONS 2024 During the six months ended June 30, 2024, we acquired fee simple interests in 40 properties for an aggregate purchase price of $150.9 million (including amounts funded in prior periods) as follows (in thousands):
|  |  |  |  |  |  |  | Purchase Price Allocation |
Asset Type |  | Properties |  |  | Purchase Price |  |  | Land |  |  | Buildings & Improve- ments |  |  | In-Place Leases |  |  | Intangible/Market Lease Assets |  |  | Intangible/Market Lease Liabilities |
Express tunnel car washes |  |  | 19 |  |  | $ | 91,199 |  |  | $ | 18,994 |  |  | $ | 62,591 |  |  | $ | 9,686 |  |  | $ | 434 |  |  | $ | (506 | )
Convenience stores |  |  | 2 |  |  |  | 11,882 |  |  |  | 4,180 |  |  |  | 6,582 |  |  |  | 1,120 |  |  |  | — |  |  |  | — |
Auto service centers |  |  | 16 |  |  |  | 39,661 |  |  |  | 10,842 |  |  |  | 18,284 |  |  |  | 4,644 |  |  |  | 5,891 |  |  |  | — |
Drive thru QSRs |  |  | 3 |  |  |  | 8,195 |  |  |  | 1,689 |  |  |  | 5,538 |  |  |  | 968 |  |  |  | — |  |  |  | — |
|  |  | 40 |  |  | $ | 150,937 |  |  | $ | 35,705 |  |  | $ | 92,995 |  |  | $ | 16,418 |  |  | $ | 6,325 |  |  | $ | (506 | )
In addition, as part of larger sale-leaseback transactions that included certain of the express tunnel car washes referenced above, we acquired 15 properties that were under construction for $45.8 million and committed to provide additional funding to our tenant during the construction period to complete the development of these assets. These 15 properties did not meet the criteria for sale-leaseback accounting and are accounted for as finance receivables. Accordingly, this initial investment and all subsequent fundings made during the construction period are recorded within notes and mortgages receivable on our consolidated balance sheets, and rental payments resulting from these investments are recorded within interest on notes and mortgages receivable on our consolidated statements of operations. At the end of the construction period, we will recognize the purchase of the assets, remove the finance receivables from our consolidated balance sheets, and begin to record rental income from the operating lease. As of June 30, 2024, we have advanced an additional $25.8 million and, in total, have funded $71.6 million related to these 15 properties. As of June 30, 2024, the construction of eight properties was complete, including seven that were completed during the six months ended June 30, 2024. Accordingly, we have recognized the purchase of the assets, removed finance receivables totaling $39.6 million, including $35.8 million related to the seven properties completed during the six months ended June 30, 2024, and began to record rental income from the operating leases. Certain of these transactions also includes provisions that require us, upon the achievement by the tenant of certain financial performance targets within a defined period, to pay additional amounts to the tenant. Whether we will have to make any payments under these provisions is not probable or reasonably estimable at this time. 2023 During the six months ended June 30, 2023, we acquired fee simple interests in 16 properties for an aggregate purchase price of $73.3 million (including amounts funded in prior periods) as follows (in thousands):
|  |  |  |  |  |  |  | Purchase Price Allocation |
Asset Type |  | Properties |  |  | Purchase Price |  |  | Land |  |  | Buildings & Improve- ments |  |  | In-Place Leases |  |  | Intangible Market Lease Assets |  |  | Intangible Market Lease Liabilities |
Express tunnel car washes |  |  | 14 |  |  | $ | 64,248 |  |  | $ | 18,598 |  |  | $ | 39,623 |  |  | $ | 6,584 |  |  | $ | — |  |  | $ | (557 | )
Convenience stores (a) |  |  | 1 |  |  |  | 6,336 |  |  |  | 2,405 |  |  |  | 3,319 |  |  |  | 612 |  |  |  | — |  |  |  | — |
Drive thru QSRs |  |  | 1 |  |  |  | 2,676 |  |  |  | 675 |  |  |  | 1,713 |  |  |  | 288 |  |  |  | — |  |  |  | — |
|  |  | 16 |  |  | $ | 73,260 |  |  | $ | 21,678 |  |  | $ | 44,655 |  |  | $ | 7,484 |  |  | $ | — |  |  | $ | (557 | )
(a) Purchase price and land allocation include $0.9 million related to the acquisition of a land parcel adjacent to an existing site which was subsequently combined with the existing site into a single property upon redevelopment of the existing site. In addition, as part of a larger sale-leaseback transaction that included certain of the express tunnel car washes referenced above, we acquired four properties that were under construction for $8.5 million and committed to provide additional funding to our tenant during the construction period to complete the development of these assets. These four properties did not meet the criteria for sale-leaseback accounting and are accounted for as finance receivables. Accordingly, this initial investment and all subsequent fundings made during the construction period are recorded within notes and mortgages receivable on our consolidated balance sheets, and rental payments resulting from these investments are recorded within interest on notes and mortgages receivable on our consolidated statements of operations. At the end of the construction period, we will recognize the purchase of the assets, remove the finance receivables from our consolidated balance sheets, and begin to record rental income from the operating lease These four properties did not meet the criteria for sale-leaseback accounting and are accounted for as finance receivables. Accordingly, this initial investment and all subsequent fundings made during the construction period are recorded within notes and mortgages receivable on our consolidated balance sheets, and rental payments resulting from these investments are recorded within interest on mortgages and notes receivable on our consolidated statements of operations. At the end of construction period, we will recognize the purchase of the assets, remove the finance receivables from the balance sheet, and begin to record rental income from the operating leases. During the three months ended June 30, 2023, we advanced an additional $2.0 million and, as of June 30, 2023, funded $10.5 million related to these four properties. This transaction also includes provisions that require us, upon the achievement by the tenant of certain financial performance targets within a defined period, to pay additional amounts to the tenant. Whether we will have to make any payments under these provisions is not probable or reasonably estimable at this time.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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