XML 26 R12.htm IDEA: XBRL DOCUMENT
v3.23.1

REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 3 Months Ended
--- | ---
Mar. 31, 2023
Real Estate [Abstract] |
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 5. REAL ESTATE AND RELATED LEASE INTANGIBLES, NET The Company’s real estate assets were comprised of the following ($ in thousands):
| March 31, 2023 |  | December 31, 2022
Land | $ | 158,802 |  |  | $ | 158,802 |
Building | 626,280 |  |  | 625,655 |
In-place leases and other intangibles | 114,689 |  |  | 114,687 |
Undepreciated real estate and related lease intangibles | 899,771 |  |  | 899,144 |
Less: Accumulated depreciation and amortization | (206,505) |  |  | (199,008) |
Real estate and related lease intangibles, net(2) | $ | 693,266 |  |  | $ | 700,136 |
Below market lease intangibles, net (other liabilities)(1) | $ | (30,369) |  |  | $ | (30,892) |
(1)Below market lease intangibles is net of $14.2 million and $13.6 million of accumulated amortization as of March 31, 2023 and December 31, 2022, respectively. (2)There was unencumbered real estate of $170.2 million and $140.3 million as of March 31, 2023 and December 31, 2022, respectively. At March 31, 2023 and December 31, 2022, the Company held foreclosed properties included in real estate and related lease intangibles, net with carrying values of $101.6 million and $103.1 million, respectively. The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands):
| Three Months Ended March 31, |  |  |  |
| 2023 |  | 2022 |  |  |  |  |  |  |  |  |  |
Depreciation expense(1) | $ | 6,200 |  |  | $ | 7,088 |  |  |  |  |  |  |  |  |  |  |
Amortization expense | 1,329 |  |  | 2,254 |  |  |  |  |  |  |  |  |  |  |
Total real estate depreciation and amortization expense | $ | 7,529 |  |  | $ | 9,342 |  |  |  |  |  |  |  |  |  |  |
(1)Depreciation expense on the consolidated statements of income also includes $0.1 million and $8 thousand of depreciation on corporate fixed assets for the three months ended March 31, 2023 and March 31, 2022, respectively. The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands):
| March 31, 2023 |  | December 31, 2022
Gross intangible assets(1) | $ | 114,689 |  |  | $ | 114,687 |
Accumulated amortization | 51,125 |  |  | 49,725 |
Net intangible assets | $ | 63,564 |  |  | $ | 64,962 |
(1)Includes $2.8 million of unamortized above market lease intangibles, which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of March 31, 2023 and December 31, 2022. The following table presents increases/reductions in operating lease income related to the amortization of above or below market leases recorded by the Company ($ in thousands):
| Three Months Ended March 31, |  |  |  |
| 2023 |  | 2022 |  |  |  |  |  |  |  |  |  |
Reduction in operating lease income for amortization of above market lease intangibles acquired | $ | (72) |  |  | $ | (76) |  |  |  |  |  |  |  |  |  |  |
Increase in operating lease income for amortization of below market lease intangibles acquired | 526 |  |  | 520 |  |  |  |  |  |  |  |  |  |  |
Total | $ | 454 |  |  | $ | 444 |  |  |  |  |  |  |  |  |  |  |
The following table presents expected adjustment to operating lease income and expected amortization expense during the next five years and thereafter related to the above and below market leases and acquired in-place lease and other intangibles for property owned as of March 31, 2023 ($ in thousands):
Period Ending December 31, |  | Increase/(Decrease) to Operating Lease Income |  | Amortization Expense
2023 |  | $ | 730 |  |  | $ | 3,398 |
2024 |  | 973 |  |  | 4,531 |
2025 |  | 973 |  |  | 4,391 |
2026 |  | 976 |  |  | 3,740 |
2027 |  | 976 |  |  | 3,554 |
Thereafter |  | 22,968 |  |  | 41,179 |
Total |  | $ | 27,596 |  |  | $ | 60,793 |
Rent Receivables There were $0.8 million and $1.3 million of rent receivables included in other assets on the consolidated balance sheets as of March 31, 2023 and December 31, 2022, respectively. Operating Lease Income & Tenant Reimbursements The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at March 31, 2023 ($ in thousands):
Period Ending December 31, |  | Amount
2023 |  | $ | 40,682 |
2024 |  | 49,994 |
2025 |  | 49,801 |
2026 |  | 48,424 |
2027 |  | 46,267 |
Thereafter |  | 196,855 |
Total |  | $ | 432,023 |
Tenant reimbursements, which consist of real estate taxes and other municipal charges paid by the Company, which were reimbursable by our tenants pursuant to the terms of the lease agreements, were $1.1 million and $1.6 million for the three months ended March 31, 2023 and 2022, respectively. Tenant reimbursements are included in operating lease income on the Company’s consolidated statements of income. Acquisitions The Company did not have any acquisitions during the three months ended March 31, 2023 and acquired the following properties during the three months ended March 31, 2022 ($ in thousands):
Acquisition Date |  | Type |  | Primary Location(s) |  | Purchase Price/Fair Value on the Date of Foreclosure |  |  |  |  | Ownership Interest (1) |  |  |  |  |  |  |  |  |  |  |
February 2022 | (2) | Apartments |  | New York, NY |  | $ | 15,436 |  |  |  |  |  | 100.0% |  |  |  |  |  |  |  |  |  |  |
Total real estate acquisitions |  |  |  | $ | 15,436 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(1)Properties were consolidated as of acquisition date. (2)In February 2022, the Company acquired, via change in control, a previously held interest in a non-controlling equity investment in a mixed use property with one remaining residential condo unit and one remaining retail condo unit in New York, New York. The carrying value of the property at the time of change in control was $15.4 million, which was determined to be fair value. The fair value of the remaining condo unit was determined based on comparable sales in the building and the value of the remaining retail unit was valued utilizing a direct capitalization rate of 5.5%. The key inputs used to determine fair value were determined to be Level 3 inputs. The Company allocates purchase consideration based on relative fair values, and real estate acquisition costs are capitalized as a component of the cost of the assets acquired for asset acquisitions. During the three months ended March 31, 2022, all acquisitions were determined to be asset acquisitions. Sales The Company did not have any sales during the three months ended March 31, 2023 and sold the following properties during the three months ended March 31, 2022 ($ in thousands):
Sales Date |  | Type |  |  |  | Primary Location(s) |  | Net Sales Proceeds |  | Net Book Value |  | Realized Gain/(Loss) |  | Properties |  |  |  |
March 2022 |  | Office |  |  |  | Ewing, NJ |  | $ | 38,652 |  |  | $ | 24,134 |  |  | $ | 14,518 |  |  | 1 |  |  |  |  |
March 2022 |  | Warehouse |  |  |  | Conyers, GA |  | 40,752 |  |  | 26,116 |  |  | 14,636 |  |  | 1 |  |  |  |  |
Totals |  |  |  |  |  |  | (1) | $ | 79,404 |  |  | $ | 50,250 |  |  | $ | 29,154 |  |  |  |  |  |  |
(1)Includes $3.7 million of defeasance costs upon repayment of the mortgage financing in connection with the sales that is recorded within interest expense on the consolidated statement of income, such amount was correspondingly paid by the buyer and received by the Company as part of the sale and recorded in fee and other income on the consolidated statement of income.

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 real estate owned (as defined). Generally, the largest component of real estate owned by lenders is assets taken in settlement of troubled loans through surrender or foreclosure. Real estate investments, real estate loans that qualify as investments in real estate, and premises that are no longer used in operations may also be included in real estate owned. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 45 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=124259787&loc=d3e4437-111522 + Details
Name: | us-gaap_RealEstateOwnedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration