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Real Estate Acquisitions | 9 Months Ended
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Sep. 30, 2016
Real Estate Acquisitions |
Real Estate Acquisitions | Note 4 — Real Estate Acquisitions The following chart details the Company’s acquisitions of real estate during the nine months ended September 30, 2016 (amounts in thousands):
Description of Property |  | Date Acquired |  | Contract Purchase Price |  | Terms of Payment |  | Third Party Real Estate Acquisition Costs (a) |
Multi-tenant industrial facility, Greenville, South Carolina (b) |  | March 30, 2016 |  | $ | 8,100 |  | All cash |  | $ | 81 |
Multi-tenant industrial facility, Greenville, South Carolina (b) |  | March 30, 2016 |  | 8,950 |  | All cash |  | 83 |
Toro distribution facility, El Paso, Texas (c) |  | June 3, 2016 |  | 23,695 |  | All cash |  | 65 |
4 Advanced Auto retail stores, Ohio (d) |  | June 16, 2016 |  | 6,523 |  | Cash and $4,300 mortgage (d) |  | 101 |
Land - The Briarbrook Village Apartments, Wheaton, Illinois (e) |  | August 2, 2016 |  | 10,530 |  | All cash |  | — | (f)
Burlington Coat and Micro Center retail stores, St. Louis Park, Minnesota (g) |  | August 12, 2016 |  | 14,150 |  | All cash |  | 73 |
Land - The Vue Apartments, Beachwood, Ohio (e) |  | August 16, 2016 |  | 13,896 |  | All cash |  | — | (h)
Famous Footwear distribution facility, Lebanon, Tennessee (i) |  | September 1, 2016 |  | 32,734 |  | Cash and $21,288 mortgage (i) |  | 193 |
Other costs (j) |  |  |  | — |  |  |  | 14 |
Totals |  |  |  | $ | 118,578 |  |  |  | $ | 610 |
| (a) |  | Included as an expense in the accompanying consolidated statement of income.
| (b) |  | These properties are adjacent to one another and are each net leased to three unrelated tenants pursuant to leases that expire between 2017 and 2021.
| (c) |  | The property is net leased by a single tenant pursuant to two separate coterminous leases expiring in 2022.
| (d) |  | The new mortgage debt, which was obtained simultaneously with the acquisition of these properties, bears interest at 3.24% per annum, matures July 2026, and is comprised of four individual and cross-collateralized loans. The properties are net leased by a single tenant pursuant to four separate leases, three of which expire in 2026 and one of which expires in 2025.
| (e) |  | These properties are net leased to related entities through 2046. See Note 6.
| (f) |  | Transaction costs aggregating $6 incurred with this asset acquisition were capitalized.
| (g) |  | This property is net leased to two unrelated tenants pursuant to leases expiring between 2019 and 2020.
| (h) |  | Transaction costs aggregating $5 incurred with this asset acquisition were capitalized.
| (i) |  | The new mortgage debt, which was obtained simultaneously with the acquisition of the property, bears interest at 3.7% per annum and matures October 2031. The property is net leased by a single tenant through 2031.
| (j) |  | Costs incurred for properties purchased in 2015 and transactions that were not consummated.
The following chart provides the allocation of the purchase price for the Company’s acquisitions of real estate during the nine months ended September 30, 2016 (amounts in thousands):
|  |  |  |  |  | Building |  | Intangible Lease |  |  |
Description of Property |  | Land |  | Building |  | Improvements |  | Asset |  | Liability |  | Total |
Multi-tenant industrial facility, Greenville, South Carolina |  | $ | 693 |  | $ | 6,718 |  | $ | 175 |  | $ | 514 |  | $ | — |  | $ | 8,100 |
Multi-tenant industrial facility, Greenville, South Carolina |  | 528 |  | 7,893 |  | 181 |  | 441 |  | (93 | ) | 8,950 |
Toro distribution facility, El Paso, Texas |  | 3,691 |  | 17,525 |  | 379 |  | 2,100 |  | — |  | 23,695 |
4 Advanced Auto retail stores, Ohio |  | 653 |  | 5,012 |  | 189 |  | 912 |  | (243 | ) | 6,523 |
Land - The Briarbrook Village Apartments, Wheaton, Illinois (a) |  | 10,536 |  | — |  | — |  | — |  | — |  | 10,536 |
Burlington Coat and Micro Center retail stores, St. Louis Park, Minnesota (b) |  | 3,388 |  | 12,632 |  | 456 |  | 651 |  | (2,977 | ) | 14,150 |
Land - The Vue Apartments, Beachwood, Ohio (c) |  | 13,901 |  | — |  | — |  | — |  | — |  | 13,901 |
Famous Footwear distribution facility, Lebanon, Tennessee (b) |  | 2,094 |  | 29,436 |  | 603 |  | 3,576 |  | (2,975 | ) | 32,734 |
Totals |  | $ | 35,484 |  | $ | 79,216 |  | $ | 1,983 |  | $ | 8,194 |  | $ | (6,288 | ) | $ | 118,589 |
| (a) |  | Transaction costs aggregating $6 incurred with this asset acquisition were capitalized.
| (b) |  | The Company is in the process of finalizing the purchase price allocation for this property; therefore, the allocation is preliminary and subject to change.
| (c) |  | Transaction costs aggregating $5 incurred with this asset acquisition were capitalized.
As of September 30, 2016, the weighted average amortization period for these intangible lease assets and intangible lease liabilities is 9.6 years and 13.2 years, respectively. The Company assessed the fair value of the lease intangibles based on estimated cash flow projections that use appropriate discount rates and available market information. Such inputs are Level 3 (as defined in Note 15) in the fair value hierarchy. On March 31, 2015, the Company purchased for $6,300,000, its partner’s 50% interest in an unconsolidated joint venture that owned a property in Lincoln, Nebraska, and as a result, the Company obtained a controlling financial interest. In consolidating the investment, the Company recorded a purchase price fair value adjustment of $960,000 on the consolidated statement of income, representing the difference between the book value of its preexisting equity investment on the March 31, 2015 purchase date and the fair value of the net assets acquired. The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company for the nine months ended September 30, 2016 and the year ended December 31, 2015 as though the purchases of the nine properties in 2016, excluding the two asset acquisitions (the Wheaton, Illinois and Beachwood, Ohio land deals), were completed on January 1, 2015. The total acquisition costs of $596,000 paid in connection with such 2016 purchases are included as a reduction of net income in the year ended December 31, 2015. This unaudited proforma information does not purport to represent what the actual results of operations of the Company would have been had such acquisitions occurred as of January 1, 2015. (Amounts in thousands, except per share data).
|  | Nine Months Ended |  | Year Ended |
|  | September 30, 2016 |  | December 31, 2015 |
Pro forma revenues |  | $ | 55,519 |  | $ | 73,037 |
Pro forma net income attributable to One Liberty Properties, Inc. |  | 21,128 |  | 20,560 |
Pro forma weighted average number of common shares outstanding: |  |  |  |  |
Basic |  | 16,605 |  | 15,971 |
Diluted |  | 16,722 |  | 16,079 |
Pro forma per common share attributable to common stockholders: |  |  |  |  |
Basic |  | $ | 1.23 |  | $ | 1.23 |
Diluted |  | $ | 1.22 |  | $ | 1.23 |
Revenues and net income related to these nine properties already included in the results of operations for the nine months ended September 30, 2016 amounted to $2,111,000 and $136,000, respectively. Pro forma unaudited revenues and net income for the two asset acquisitions (not included in the table above) were $2,024,000 and $1,786,000, respectively, for the nine months ended September 30, 2016 and $2,700,000 and $2,344,000, respectively, for the year ended December 31, 2015. Revenues and net income related to these two properties already included in the results of operations for the nine months ended September 30, 2016 amounted to $386,000.

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