Note 4 - Real Estate Acquisitions

The following chart details the Company’s real estate acquisitions during the nine months ended September 30, 2013 (amounts in thousands):

Description of Property	Date Acquired	Contract Purchase Price		Terms of Payment	Third Party Real Estate Acquisition Costs (a)
Kmart retail store,
Clemmons, North Carolina (b)	March 22, 2013	$	4,640	All cash	$	119

Shutterfly flex facility
Fort Mill, South Carolina	July 1, 2013	15,500		Cash and $9,300 mortgage (c)	118

Texas Land & Cattle restaurant
Killeen, Texas	July 30, 2013	2,020		All cash	43

Hooters restaurant
Concord, North Carolina	August 1, 2013	2,469		All cash	13

TRISUN Health Care - assisted living facility
Round Rock, Texas	August 6, 2013	22,800		Cash and $15,275 mortgage (d)	288

Hooters restaurant
Myrtle Beach, South Carolina	September 3, 2013	2,635		All cash	31

Joe’s Crab Shack restaurant
Ann Arbor, Michigan	September 12, 2013	2,980		All cash	28

FedEx Express facility
Indianapolis, Indiana	September 13, 2013	9,270		All cash	31

Northern Tool & Equipment distribution facility
Fort Mill, South Carolina	September 18, 2013	39,195		Cash and $27,300 mortgage (e)	84

Other (f)		—			67
Totals		$	101,509		$	822

(a) Included as an expense in the accompanying consolidated statements of income.

(b) Owned by a consolidated joint venture in which the Company has a 90% interest.

(d) The mortgage bears interest at 5.375% per annum and matures August 6, 2023.

(e) The mortgage bears interest at 4.875% per annum and matures April 1, 2029.

(f) Costs incurred for potential acquisitions and properties purchased in 2012.

All the properties purchased by the Company in 2013 are 100% occupied and, except for the Northern Tool property which is jointly leased by two companies under common ownership, are each leased by a single tenant pursuant to a long term net lease.

As a result of these acquisitions, the Company recorded intangible lease assets of $11,307,000 and intangible lease liabilities of $1,510,000, representing the value of the origination costs and acquired leases. As of September 30, 2013, the weighted average amortization period for these acquisitions is 13.6 years for the intangible lease assets and 8.0 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 these properties; therefore, these allocations are preliminary and subject to change.