
	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.

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.


	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

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.

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):

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.

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

(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.

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.