NOTE 3—REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS

Real Estate Acquisitions

The following chart details the Company's real estate acquisitions during 2013 and 2012 (amounts in thousands):

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

Kmart retail store, Clemmons, North Carolina(c)	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(d)		124
Texas Land & Cattle restaurant, Killeen, Texas	July 30, 2013		2,020	All cash		—	(e)
Hooters restaurant, Concord, North Carolina	August 1, 2013		2,469	All cash		15
TRISUN Health Care—assisted living facility, Round Rock, Texas	August 6, 2013		22,800	Cash and $15,275 mortgage(f)		321
Hooters restaurant, Myrtle Beach, South Carolina	September 3, 2013		2,635	All cash		33
Joe's Crab Shack restaurant, Ann Arbor, Michigan	September 12, 2013		2,980	All cash		31
FedEx Express facility, Indianapolis, Indiana	September 13, 2013		9,270	All cash		39
Northern Tool & Equipment distribution facility, Fort Mill, South Carolina	September 18, 2013		39,195	Cash and $27,300 mortgage(g)		91
TGIF restaurant, Greensboro, North Carolina	December 3, 2013		3,003	All cash		—	(e)
TGIF restaurant, Richmond, Virginia	December 3, 2013		3,017	All cash		—	(e)
Other(h)			—			148


Totals for 2013		$	107,529		$	921




Urban Outfitters retail store, Lawrence, Kansas	February 7, 2012	$	1,230	All cash	$	21
Three Applebee's restaurants, Carrollton, Kennesaw and Cartersville, Georgia	March 12, 2012		8,568	All cash		84
Avalon Carpet Tile and Flooring, retail store and warehouse, Deptford, New Jersey(i)	April 24, 2012		2,200	Cash and $2,040 mortgage(j)		—	(i)
Applebee's restaurant, Lawrenceville, Georgia	May 17, 2012		2,340	All cash		19
FedEx Facility, Pinellas Park, Florida	October 11, 2012		2,810	All cash		28	(k)
Walgreens Pharmacy, Cape Girardeau, Missouri(l)	October 25, 2012		2,268	All cash		92
Shopping Center, Houston, Texas(m)	November 13, 2012		7,150	Cash and $5,100 mortgage(n)		206
LA Fitness Health Club, Secaucus, New Jersey	December 12, 2012		16,400	Cash and $10,000 mortgage(o)		341
FedEx Facility, Miamisburg, Ohio	December 26, 2012		1,650	All cash		6	(k)
Other(h)			—			26


Totals for 2012		$	44,616		$	823

(a): All of the mortgages listed in this column were obtained from institutional lenders simultaneously with the acquisition of the respective properties.
(b): Included as an expense in the accompanying consolidated statements of income.
(c): Owned by a consolidated joint venture in which the Company has a 90% interest. The non-controlling interest contributed $470 for its 10% interest, which was equal to fair value at the date of purchase.
(d): The mortgage bears interest at 4.562% per annum and matures July 2023.
(e): Transaction costs of $50 incurred with these asset acquisitions were capitalized.
(f): The mortgage bears interest at 5.375% per annum and matures August 2023.
(g): The mortgage bears interest at 4.875% per annum and matures April 2029.
(h): Costs incurred for potential acquisitions and properties purchased in prior year.
(i): Owned by a consolidated joint venture in which the Company has a 95% interest. Transaction costs of $90 incurred with this asset acquisition were capitalized.
(j): The mortgage bears interest at 5% per annum through April 2017 and thereafter at a rate of not less than 5% and matures May 2022.
(k): Assignment fees of $84 and $125, paid in connection with the purchase of the FedEx properties located in Florida and Ohio, respectively, were capitalized.
(l): Owned by a consolidated joint venture in which the Company has a 95% interest.
(m): Owned by a consolidated joint venture in which the Company has an 85% interest.
(n): The mortgage bears interest at 3.75% per annum and matures December 2017.
(o): The mortgage bears interest at 4.9% per annum and matures January 2025.

The following chart provides the allocation of the purchase price for the Company's real estate acquisitions during 2013 and 2012 (amounts in thousands):

							Intangible Lease

					Building Improvements		Intangible Lease
Description of Property	Land		Building		Building Improvements		Asset			Liability			Total
Kmart retail store, Clemmons, North Carolina	$	2,496	$	2,553	$	653	$	425		$	(1,487	)	$	4,640
Shutterfly flex facility, Fort Mill, South Carolina		1,841		12,353		335		1,546			(575	)		15,500
Texas Land & Cattle restaurant, Killeen, Texas		1,263		739		64		—			—			2,066	(a)
Hooters restaurant, Concord, North Carolina		999		954		122		394			—			2,469
TRISUN Health Care—assisted living facility, Round Rock, Texas		1,678		16,577		93		4,452			—			22,800
Hooters restaurant, Myrtle Beach, South Carolina		1,102		1,090		71		372			—			2,635
Joe's Crab Shack restaurant, Ann Arbor, Michigan		1,098		1,338		122		422			—			2,980
FedEx Express facility, Indianapolis, Indiana		1,224		6,438		498		1,222			(112	)		9,270
Northern Tool & Equipment distribution facility, Fort Mill, South Carolina		1,804		31,635		2,014		3,742			—			39,195
TGIF restaurant, Greensboro, North Carolina		1,768		1,054		183		—			—			3,005	(a)
TGIF restaurant, Richmond, Virginia		1,678		1,184		157		—			—			3,019	(a)


Subtotals		16,951		75,915		4,312		12,575			(2,174	)		107,579
Other(b)		—		—		—		(951	)		(36	)		(987	)


Totals for 2013	$	16,951	$	75,915	$	4,312	$	11,624		$	(2,210	)	$	106,592

(a): Includes capitalized transaction costs of $50 incurred with these asset acquisitions.
(b): Adjustments to finalize intangibles relating to properties purchased in 2012.

							Intangible Lease

					Building Improvements		Intangible Lease
Description of Property	Land		Building		Building Improvements		Asset		Liability			Total
Urban Outfitters retail store, Lawrence, Kansas	$	134	$	937	$	—	$	169	$	(10	)	$	1,230
Three Applebee's restaurants, Carrollton, Kennesaw and Cartersville, Georgia		2,284		3,439		281		2,564		—			8,568
Applebee's restaurant, Lawrenceville, Georgia		804		739		43		754		—			2,340
Avalon Carpet Tile and Flooring, retail store and warehouse, Deptford, New Jersey		556		1,605		129				—			2,290	(c)
FedEx Facility, Pinellas Park, Florida		1,231		1,607		62		94		(100	)		2,894	(d)
Walgreens Pharmacy, Cape Girardeau, Missouri		545		1,478		69		379		(203	)		2,268
Shopping Center, Houston, Texas		3,122		3,589		180		534		(275	)		7,150
LA Fitness Health Club, Secaucus, New Jersey		5,660		8,830		25		1,885		—			16,400
FedEx Facility, Miamisburg, Ohio		165		1,248		100		262		—			1,775	(d)


Totals for 2012	$	14,501	$	23,472	$	889	$	6,641	$	(588	)	$	44,915

(c): Includes capitalized transaction costs of $90 incurred with this asset acquisition.
(d): Includes capitalized assignment fees of $84 and $125 which were paid in connection with the purchase of these FedEx properties located in Florida and Ohio, respectively.

All of the properties purchased in 2013 and 2012 are (i) currently 100% occupied, other than the Houston, Texas property which is 91% occupied and (ii) leased by a single tenant pursuant to a long term net lease, other than the Northern Tool property, which is jointly leased by two companies under common ownership and the Houston, Texas property, which has 17 tenant spaces.

As a result of the 2013 and 2012 purchases, the Company recorded intangible lease assets of $11,624,000 and $6,641,000, respectively, and intangible lease liabilities of $2,210,000 and $588,000, respectively, representing the value of the acquired leases and origination costs. As of December 31, 2013, the weighted average amortization period for the 2013 and 2012 acquisitions is 13.2 and 16.8 years for the intangible lease assets and 6.0 and 16.2 years for the intangible lease liabilities, respectively.

At December 31, 2013 and 2012, accumulated amortization of intangible lease assets was $7,054,000 and $4,974,000, respectively and accumulated amortization of intangible lease liabilities was $3,099,000 and $2,505,000, respectively.

The Company recognized a net increase (decrease) in rental revenue of $160,000, $(2,000) and $(26,000) for the amortization of the above/below market leases for 2013, 2012 and 2011, respectively. For 2013, 2012 and 2011, the Company recognized amortization expense of $1,647,000, $1,006,000 and $844,000, respectively, relating to the amortization of the origination costs.

The unamortized balance of intangible lease assets as a result of acquired above market leases at December 31, 2013 will be deducted from rental income through 2032 as follows (amounts in thousands):


2014	$	458
2015		453
2016		443
2017		410
2018		370
Thereafter		2,046


Total	$	4,180

The unamortized balance of intangible lease liabilities as a result of acquired below market leases at December 31, 2013 will be added to rental income through 2055 as follows (amounts in thousands):


2014	$	622
2015		601
2016		583
2017		574
2018		492
Thereafter		4,045


Total	$	6,917

The unamortized balance of origination costs associated with in-place leases at December 31, 2013 will be charged to amortization expense through 2055 as follows (amounts in thousands):


2014	$	2,167
2015		2,133
2016		2,013
2017		1,927
2018		1,808
Thereafter		11,807


Total	$	21,855

Minimum Future Rents

The minimum future contractual rents (without taking into consideration straight-line rent or amortization of intangibles) to be received over the next five years and thereafter on the operating leases in effect at December 31, 2013 are as follows (amounts in thousands):


2014	$	53,056
2015		49,432
2016		47,505
2017		45,316
2018		42,900
Thereafter		233,512


Total	$	471,721

The rental properties owned at December 31, 2013 are leased under noncancellable operating leases with current expirations ranging from 2014 to 2033, with certain tenant renewal rights. Substantially all lease agreements are net lease arrangements which require the tenant to pay rent and substantially all the expenses of the leased property including maintenance, taxes, utilities and insurance. For certain properties, the tenants pay the Company, in addition to the contractual base rent, their pro rata share of real estate taxes and operating expenses. Certain lease agreements provide for periodic rental increases and others provide for increases based on the consumer price index.

Unbilled Rent Receivable

At December 31, 2013 and 2012, the Company recorded unbilled rent receivables aggregating $13,743,000 and $12,629,000, respectively, representing rent reported on a straight-line basis in excess of rental payments required under the respective leases. The unbilled rent receivable is to be billed and received pursuant to the lease terms during the next 20 years.

During 2012, the Company wrote off $256,000 of unbilled "straight-line" rent receivable, relating to properties sold during such year.