6. REAL ESTATE, NET

During the three months ended March 31, 2014, there were no acquisitions of properties.

During three months ended March 31, 2014, the Company disposed of 44 residential condominium units in Veer Towers which were sold for $18,900,643, resulting in a net gain on sale of $6,413,382.

During three months ended March 31, 2014, the Company disposed of 4 residential condominium units in Terrazas River Park Village which were sold for $1,192,209, resulting in a net gain on sale of $287,834.

During the three months ended March 31, 2013, the Company acquired the following properties:

· One single-tenant retail property subject to long-term net lease obligations for a total of $4,990,742. At January 28, 2013, the date of acquisition, the retail property was 100% leased and occupied. During the three months ended March 31, 2013, the Company recorded $56,508 of rental income from the retail property.

· One 13-story office building in Southfield, MI for $18,000,000, through a consolidated, majority-owned joint venture. At February 1, 2013, the date of acquisition, the office building was 83.8% leased and occupied. During the three months ended March 31, 2013, the Company recorded $14,500 of rental income from the office building.

During the three months ended March 31, 2013, 19 of these condominium units were sold for $8,045,319, resulting in a gain on sale of $3,697,548. In addition, during the three months ended March 31, 2013, the Company recorded $1,452,976 of rental income from the condominium units subject to residential leases.

The following unaudited pro forma information has been prepared based upon our historical consolidated financial statements and certain historical financial information of the acquired properties, which are accounted for as business combinations, and should be read in conjunction with the consolidated financial statements and notes thereto. The unaudited pro forma consolidated financial information reflects the acquisition adjustments made to present financial results as though the acquisition of the properties occurred on January 1, 2012. This unaudited pro forma information may not be indicative of the results that actually would have occurred if these transactions had been in effect on the dates indicated, nor do they purport to represent our future results of operations.

	For the three months ended March 31, 2013
	Company					Consolidated
	Historical			Acquisitions		Pro Forma
Operating lease income	$	6,484,040		433,880		$	6,917,920
Net income	88,049,972			190,352		88,240,324
Net (income) loss attributable to noncontrolling interest	(27,244		)	(16,690	)	(43,934		)
Net income attributable to preferred and common unit holders	88,022,728			173,663		88,196,391

The most significant adjustments made in preparing the unaudited pro forma information were to: (i) include the incremental operating lease income, (ii) include the incremental depreciation and, (iii) exclude transaction costs associated with the properties acquired from 2013.

From the date of acquisition through March 31, 2013, the Company recorded $466,046 of operating lease income and $269,357 of net income from the real estate acquisitions.

The following table presents additional detail related to our real estate portfolio:

	March 31, 2014			December 31, 2013

Land	$	91,609,368		$	91,609,368
Building	460,927,579			474,301,322
In-place leases and other intangibles	83,909,105			83,909,105
Real estate	636,446,052			649,819,795
Less: Accumulated depreciation and amortization	(32,693,319		)	(25,600,780		)

Real estate, net	$	603,752,733		$	624,219,015

The following table presents depreciation and amortization expense on real estate recorded by the Company:

	Three Months Ended March 31,
	2014		2013

Depreciation expense	$	4,842,086	$	2,388,871
Amortization expense	2,448,149		597,885
Total real estate deprecation and amortization expense (1)	$	7,290,235	$	2,986,756

(1) Depreciation expense on the combined consolidated statement of income also includes $137,023 and $136,827 of depreciation on corporate fixed assets for the three months ended March 31, 2014 and 2013, respectively.

The Company’s intangible assets are comprised of in-place leases, favorable/unfavorable leases compared to market leases and other intangibles. At March 31, 2014, gross intangible assets totaled $83,909,105 with total accumulated amortization of $12,278,154, resulting in net intangible assets of $71,630,951, including $4,897,276 of unamortized favorable/unfavorable lease intangibles. At December 31, 2013, gross intangible assets totaled $83,909,105 with total accumulated amortization of $9,675,249, resulting in net intangible assets of $74,233,856. As of March 31, 2014 and March 31,2013, the Company recorded an offset against rental revenues of $154,756 and $54,343, respectively, for favorable/unfavorable leases.

The following table presents expected amortization expense during the next five years and thereafter related to the acquired in-place lease intangibles for property owned as of March 31, 2014:

Period ended December 31,	Amount
2014 (last 9 months)	$	7,808,714
2015	10,411,619
2016	10,288,686
2017	5,399,510
2018	3,938,820
Thereafter	28,886,327
Total	$	66,733,676

The following is a schedule of contractual future minimum rent under leases from tenants at March 31, 2014:

Period ended December 31,	Amount
2014 (last 9 months)	$	32,912,425
2015	41,011,099
2016	35,572,690
2017	32,504,605
2018	30,157,074
Thereafter	291,112,205
Total	$	463,270,098