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Real Estate Acquisitions

6 Months Ended

Jun. 30, 2012

Note 6 - Real Estate Acquisitions

The following chart details the Company’s real estate acquisitions during the six months ended June 30, 2012.

Description of Property	Date Acquired	Contract Purchase Price		Terms of Payment	Third Party Real Estate Acquisition Costs (a)

Urban Outfitters retail store, Lawrence, Kansas	February 7,2012	$	1,230,000	Cash	$	21,000

Three Applebee’s restaurants, Carrollton, Kennesaw and Cartersville, Georgia	March 12, 2012	8,568,000		Cash	81,000

Avalon Carpet Tile and Flooring, retail store and warehouse, Deptford, New Jersey	April 24, 2012	2,200,000		Cash and $2,040,000 mortgage (b)	—		(c)

Applebee’s restaurant, Lawrenceville, Georgia	May 17, 2012	2,340,000		Cash	18,000

Other		—			46,000

		$	14,338,000		$	166,000

(a) Expensed in the accompanying consolidated statements of income.

(b) The mortgage bears interest at 5% per annum through April 2017 and matures May 2022.

The noncontrolling interest contributed $68,000 for its 5% equity interest.

Transaction costs of $90,000 incurred with this asset acquisition were capitalized.

All of the properties purchased by the Company during 2012 are 100% occupied and are each leased to a single tenant pursuant to a long term net lease.

As a result of the 2012 purchases, the Company recorded intangible lease assets of $3,487,000 and intangible lease liabilities of $11,000, representing the value of the acquired leases and origination costs. As of June 30, 2012, the weighted average amortization period for the 2012 acquisitions is 18.8 years for the intangible lease assets and 8.8 years for the intangible lease liabilities. The Company assessed the fair value of the lease intangibles based on estimated cash flow projections that utilize appropriate discount rates and available market information. Such inputs are Level 3 (as defined in Note 12) in the fair value hierarchy. The Company is currently in the process of finalizing the purchase price allocations for the properties purchased in the three months ended June 30, 2012; therefore, these allocations are preliminary and subject to change.