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REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS | 12 Months Ended
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Dec. 31, 2016
REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS |
REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS | NOTE 4—REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS Real Estate Acquisitions The following charts detail the Company's acquisitions of real estate and an interest in a joint venture during 2016 and 2015 (amounts in thousands):
Description of Property |  | Date Acquired |  | Contract Purchase Price |  | Terms of Payment(a) |  | Third Party Real Estate Acquisition Costs(b) |
Multi-tenant industrial facility, Greenville, South Carolina |  | March 30, 2016 |  | $ | 8,100 |  | All cash |  | $ | 80 |
Multi-tenant industrial facility, Greenville, South Carolina |  | March 30, 2016 |  |  | 8,950 |  | All cash |  |  | 81 |
Toro distribution facility, El Paso, Texas |  | June 3, 2016 |  |  | 23,695 |  | All cash |  |  | 72 |
4 Advanced Auto retail stores, Ohio |  | June 16, 2016 |  |  | 6,523 |  | Cash and $4,300 mortgage |  |  | 80 |
Land—The Briarbrook Village Apartments, Wheaton, Illinois |  | August 2, 2016 |  |  | 10,530 |  | All cash |  |  | — | (c)
Burlington Coat and Micro Center retail stores, St. Louis Park, Minnesota |  | August 12, 2016 |  |  | 14,150 |  | All cash |  |  | 74 |
Land—The Vue Apartments, Beachwood, Ohio |  | August 16, 2016 |  |  | 13,896 |  | All cash |  |  | — | (d)
Famous Footwear distribution facility, Lebanon, Tennessee |  | September 1, 2016 |  |  | 32,734 |  | Cash and $21,288 mortgage |  |  | 195 |
Other costs(e) |  |  |  |  | — |  |  |  |  | 14 |
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Totals for 2016 |  |  |  | $ | 118,578 |  |  |  | $ | 596 |
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Description of Property |  | Date Acquired |  | Contract Purchase Price |  | Terms of Payment(a) |  | Third Party Real Estate Acquisition Costs(b) |
Marston Park Plaza retail stores, Littleton, Colorado(f) |  | February 25, 2015 |  | $ | 17,485 |  | Cash and $11,853 mortgage |  | $ | 184 |
Interline Brands distribution facility, Louisville, Kentucky |  | March 18, 2015 |  |  | 4,400 |  | Cash and $2,640 mortgage |  |  | 48 |
Land—The Meadows Apartments, Lakemoor, Illinois |  | March 24, 2015 |  |  | 9,300 |  | All cash |  |  | — | (g)
Joint venture interest—Shopko retail store, Lincoln, Nebraska(h) |  | March 31, 2015 |  |  | 6,300 |  | All cash |  |  | 12 |
Archway Roofing industrial facility, Louisville, Kentucky |  | May 20, 2015 |  |  | 300 |  | All cash |  |  | 15 |
JCIM industrial facility, McCalla, Alabama |  | July 28, 2015 |  |  | 16,618 |  | All cash |  |  | 45 |
FedEx & CHEP USA distribution facility, Delport (St. Louis), Missouri |  | September 25, 2015 |  |  | 19,050 |  | Cash and $12,383 mortgage |  |  | 81 |
Other costs(e) |  |  |  |  | — |  |  |  |  | 64 |
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Totals for 2015 |  |  |  | $ | 73,453 |  |  |  | $ | 449 |
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(a) | All of the mortgages listed were obtained simultaneously with the acquisition of the applicable property.
(b) | Included as an expense in the accompanying consolidated statements of income.
(c) | Transaction costs aggregating $6 incurred with this asset acquisition were capitalized.
(d) | Transaction costs aggregating $5 incurred with this asset acquisition were capitalized.
(e) | Costs incurred for properties purchased in the previous year, potential acquisitions and transactions that were not consummated.
(f) | Represents 100% of the consolidated joint venture in which the Company has a 90% interest. The non-controlling interest contributed $663 for its 10% interest, which was equal to the fair value of such interest at the date of purchase.
(g) | Transaction costs aggregating $292 incurred with this asset acquisition were capitalized.
(h) | The Company purchased its unconsolidated joint venture partner's interest. See "—Purchase of Partner's 50% Interest".
The following charts detail the allocation of the purchase price for the Company's acquisitions of real estate and an interest in a joint venture during 2016 and 2015 (amounts in thousands):
|  |  |  |  |  |  |  | Intangible Lease |  |  |
|  |  |  |  |  | Building Improvements |  |  |
Description of Property |  | Land |  | Building |  | 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 |  |  | 3,388 |  |  | 12,632 |  |  | 456 |  |  | 651 |  |  | (2,977 | ) |  | 14,150 |
Land—The Vue Apartments, Beachwood, Ohio(b) |  |  | 13,901 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 13,901 |
Famous Footwear distribution facility, Lebanon, Tennessee |  |  | 2,094 |  |  | 29,436 |  |  | 603 |  |  | 3,576 |  |  | (2,975 | ) |  | 32,734 |
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Totals for 2016 |  | $ | 35,484 |  | $ | 79,216 |  | $ | 1,983 |  | $ | 8,194 |  | $ | (6,288 | ) | $ | 118,589 |
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Marston Park Plaza retail stores, Littleton, Colorado |  | $ | 6,005 |  | $ | 10,109 |  | $ | 700 |  | $ | 1,493 |  | $ | (822 | ) | $ | 17,485 |
Interline Brands distribution facility, Louisville, Kentucky |  |  | 578 |  |  | 3,622 |  |  | 105 |  |  | 95 |  |  | — |  |  | 4,400 |
Land—The Meadows Apartments, Lakemoor, Illinois(c) |  |  | 9,592 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9,592 |
Joint venture interest—Shopko retail store, Lincoln, Nebraska(d) |  |  | 3,768 |  |  | 11,262 |  |  | 570 |  |  | 922 |  |  | (3,929 | ) |  | 12,593 |
Archway Roofing industrial facility, Louisville, Kentucky |  |  | 51 |  |  | 221 |  |  | 9 |  |  | 19 |  |  | — |  |  | 300 |
JCIM industrial facility, McCalla, Alabama |  |  | 1,588 |  |  | 14,503 |  |  | 179 |  |  | 470 |  |  | (122 | ) |  | 16,618 |
FedEx & CHEP USA distribution facility, Delport, Missouri |  |  | 3,728 |  |  | 12,456 |  |  | 550 |  |  | 2,777 |  |  | (461 | ) |  | 19,050 |
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Subtotals |  |  | 25,310 |  |  | 52,173 |  |  | 2,113 |  |  | 5,776 |  |  | (5,334 | ) |  | 80,038 |
Other(e) |  |  | 12 |  |  | 19 |  |  | — |  |  | — |  |  | (31 | ) |  | — |
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Totals for 2015 |  | $ | 25,322 |  | $ | 52,192 |  | $ | 2,113 |  | $ | 5,776 |  | $ | (5,365 | ) | $ | 80,038 |
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(a) | Includes capitalized transaction costs of $6 incurred with this asset acquisition.
(b) | Includes capitalized transaction costs of $5 incurred with this asset acquisition.
(c) | Includes capitalized transaction costs of $292 incurred with this asset acquisition.
(d) | Fair value of the assets previously owned by an unconsolidated joint venture of the Company. The Company owns 100% of this property as a result of the purchase of its partner's interest on March 31, 2015. See "—Purchase of Partner's 50% Interest".
(e) | Adjustments to finalize the purchase price allocation relating to a property purchased in October 2014.
As of December 31, 2016, the weighted average amortization period for the 2016 acquisitions is 9.3 years and 13.0 years for the intangible lease assets and intangible lease liabilities, respectively. As of December 31, 2015, the weighted average amortization period for the 2015 acquisitions is 6.8 years and 6.4 years for the intangible lease assets and intangible lease liabilities, respectively. At December 31, 2016 and 2015, accumulated amortization of intangible lease assets was $16,074,000 and $12,392,000, respectively, and accumulated amortization of intangible lease liabilities was $6,386,000 and $5,091,000, respectively. For the years ended December 31, 2016, 2015 and 2014, the Company recognized net rental income of $712,000, $723,000 and $267,000, respectively, for the amortization of the above/below market leases. For the years ended December 31, 2016, 2015 and 2014, the Company recognized amortization expense of $3,612,000, $3,467,000 and $2,430,000, respectively, relating to the amortization of the origination costs, which is included in Depreciation and amortization expense. The unamortized balance of intangible lease assets as a result of acquired above market leases at December 31, 2016 will be deducted from rental income through 2032 as follows (amounts in thousands):
2017 |  | $ | 765 |
2018 |  |  | 688 |
2019 |  |  | 586 |
2020 |  |  | 560 |
2021 |  |  | 554 |
Thereafter |  |  | 1,534 |
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Total |  | $ | 4,687 |
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The unamortized balance of intangible lease liabilities as a result of acquired below market leases at December 31, 2016 will be added to rental income through 2055 as follows (amounts in thousands):
2017 |  | $ | 1,763 |
2018 |  |  | 1,798 |
2019 |  |  | 1,785 |
2020 |  |  | 1,633 |
2021 |  |  | 1,598 |
Thereafter |  |  | 10,703 |
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Total |  | $ | 19,280 |
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The unamortized balance of origination costs associated with in-place leases at December 31, 2016 will be charged to amortization expense through 2055 as follows (amounts in thousands):
2017 |  | $ | 3,910 |
2018 |  |  | 3,676 |
2019 |  |  | 3,288 |
2020 |  |  | 3,054 |
2021 |  |  | 2,765 |
Thereafter |  |  | 11,265 |
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Total |  | $ | 27,958 |
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Purchase of Partner's 50% Interest 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. The payment was comprised of (i) $2,636,000 paid directly to the partner and (ii) $3,664,000, substantially all of which was used to pay off the partner's 50% share of the underlying joint venture mortgage. The Company had presented the investee in accordance with the equity method for the periods prior to gaining control and ceased the equity method of accounting and consolidated the investment at March 31, 2015, the date on which 100% control was obtained. 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. Minimum Future Rents The rental properties owned at December 31, 2016 are leased under operating leases with current expirations ranging from 2017 to 2033, with certain tenant renewal rights. The minimum future contractual rents do not include (i) straight-line rent or amortization of intangibles and (ii) rental income which can be deferred under the Company's ground leases on the basis of the respective property's operating performance. Such rentals amounted to $2,379,000, $1,458,000 and $336,000 for the years ended December 31, 2016, 2015 and 2014, respectively. The minimum future contractual rents to be received over the next five years and thereafter on non-cancellable operating leases in effect at December 31, 2016 are as follows (amounts in thousands):
2017 |  | $ | 61,749 |
2018 |  |  | 60,473 |
2019 |  |  | 58,200 |
2020 |  |  | 55,632 |
2021 |  |  | 52,465 |
Thereafter |  |  | 232,241 |
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Total |  | $ | 520,760 |
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Unbilled Rent Receivable At December 31, 2016 and 2015, the Company's unbilled rent receivables aggregating $13,797,000 and $13,577,000, respectively, represent 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 25 years. During the years ended December 31, 2016 and 2015, the Company wrote off $2,060,000 and $120,000, respectively, of unbilled straight-line rent receivable related to the properties sold during such years, which reduced the gain on sale reported on the consolidated statements of income (see Note 5). The Company also wrote off $7,000 of unbilled straight-line rent receivable related to the Greenwood Village, Colorado property (see Note 2). During the year ended December 31, 2015, the Company wrote off unbilled straight-line rent receivables of $477,000 related to lease terminations effected prior to lease expirations (see Note 8) and $89,000 related to a property in Philadelphia, Pennsylvania (see Note 6). Unaudited Pro Forma Information The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company for the years ended December 31, 2016 and 2015 as though the purchases of the nine properties in 2016, excluding the two asset acquisitions (the Wheaton, Illinois and Beachwood, Ohio land acquisitions), were completed on January 1, 2015. The total acquisition costs of $582,000 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, nor does it purport to predict the results of operations for future periods.
|  | Year Ended December 31, |
(Unaudited) (amounts in thousands, except per share data) |  | 2016 |  | 2015 |
Pro forma revenues |  | $ | 74,612 |  | $ | 73,210 |
Pro forma net income attributable to One Liberty Properties, Inc. |  |  | 25,620 |  |  | 21,571 |
Pro forma weighted average number of common shares outstanding: |  |  |  |  |  |  |
Basic |  |  | 16,768 |  |  | 15,971 |
Diluted |  |  | 16,882 |  |  | 16,079 |
Pro forma per common share attributable to common stockholders: |  |  |  |  |  |  |
Basic |  | $ | 1.47 |  | $ | 1.23 |
Diluted |  | $ | 1.46 |  | $ | 1.23 |
Revenues and net income related to these nine properties already included in the results of operations for the year ended December 31, 2016 amounted to $4,251,000 and $654,000, respectively.

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