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Significant Acquisitions
 12 Months Ended
Dec. 31, 2011
Significant Acquisitions  
Significant Acquisitions

3.     Significant Acquisitions

 

During the year ended December 31, 2011, the Company acquired five properties with an aggregate of approximately 994,000 rentable square feet at an aggregate purchase price of approximately $214 million excluding closing costs and adjustments.  One property is located in Illinois, one property is located in North Carolina and three are located in Texas. The Company expensed in selling, general and administrative expenses approximately $620,000 related to these acquisitions.

 

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

 

$

151,897

 

Value of acquired real estate leases

 

66,034

 

Acquired unfavorable leases

 

(3,804

)

Total

 

$

214,127

 

 

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 Year Ended

 

(unaudited)

 

December 31,

 

(in thousands except per share amounts)

 

2011

 

2010

 

 

 

 

 

 

 

Revenue

 

$

148,735

 

$

140,796

 

Income from continuing operations

 

$

18,225

 

$

16,233

 

Net income

 

$

43,769

 

$

21,601

 

Weighted average shares outstanding

 

81,857

 

79,826

 

 

 

 

 

 

 

Income from continuing operations per share

 

$

0.22

 

$

0.20

 

Net income per share

 

$

0.53

 

$

0.27

 

 

During the year ended December 31, 2011, the Company recognized approximately $17.3 million of revenues and $3.6 million of net income from operations of these acquisitions.