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Significant Acquisitions
9 Months Ended
Sep. 30, 2011
Significant Acquisitions 
Significant Acquisitions

4.     Significant Acquisitions

 

During the nine months ended September 30, 2011, the Company acquired four properties with an aggregate of approximately 871,000 rentable square feet at an aggregate purchase price of approximately $203 million excluding closing costs and adjustments.  One property is located in Illinois, one is located in North Carolina and two are located in Texas.

 

The purchase price of the properties was allocated to real estate investments and leases, including lease origination costs.  Lease origination costs represent the value associated with acquiring an in-place lease (i.e. the market cost to execute a similar lease, including leasing commission, legal, vacancy, and other related costs).  The value assigned to buildings approximates their replacement cost; the value assigned to land approximates its appraised value; and the value assigned to leases approximates their fair value.  Other assets and liabilities are recorded at their historical costs, which approximates fair value.

 

The following table summarizes the estimated fair value of the assets acquired at the date of acquisition:

 

 

 

Value of Assets Acquired

 

 

 

(in thousands)

 

 

 

 

 

Real estate assets

 

 

$

143,890

 

 

 

Value of acquired real estate leases

61,396

 

 

 

Acquired unfavorable leases

 

 

(2,441

)

 

 

 

 

 

 

 

 

 

Total

 

 

$

202,845

 

 

 

 

Pro forma operating results for the Company and the acquisitions are shown in the following table.  The results assume that the properties were acquired on January 1, 2010.  The results are not necessarily indicative of what the Company’s actual results of operations would have been for the period indicated, nor do they purport to represent the results of operations of any future period.

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

(unaudited)

 

September 30,

 

September 30,

 

(in thousands except per share amounts)

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

37,367

 

$

35,764

 

$

117,588

 

$

105,229

 

Income from continuing operations

 

$

3,304

 

$

3,388

 

$

15,914

 

$

12,136

 

Net income

 

$

3,401

 

$

4,549

 

$

38,409

 

$

15,606

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

81,600

 

79,751

 

81,492

 

79,704

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations per share

 

$

0.04

 

$

0.04

 

$

0.20

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

$

0.04

 

$

0.06

 

$

0.47

 

$

0.20