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Significant Acquisitions
 12 Months Ended
Dec. 31, 2012
Significant Acquisitions  
Significant Acquisitions

3.     Significant Acquisitions

 

During the year ended December 31, 2012, the Company acquired one significant property located in Texas  with approximately 629,000 rentable square feet at a purchase price of approximately $154.8 million excluding closing costs and adjustments.  The Company expensed its acquisition costs of approximately $156,000 related to this acquisition for the year ended December 31, 2012.

 

The purchase price of the property 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:

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

Real estate assets

 

$

130,000

 

Value of acquired real estate leases

 

24,947

 

Acquired unfavorable leases

 

(2,022

)

Total

 

$

152,925

 

 

Pro forma operating results for the Company and the acquisition are shown in the following table. The results assume that the property was acquired on January 1, 2011. The results are not necessarily indicative of what the Company’s actual results of operations would have been for the periods indicated, nor do they purport to represent the results of operations of any future periods.

 

 

 

For the Year Ended

 

(unaudited)

 

December 31,

 

(in thousands except per share amounts)

 

2012

 

2011

 

 

 

 

 

 

 

Revenue

 

$

176,684

 

$

155,313

 

Income from continuing operations

 

$

20,446

 

$

15,776

 

Net income

 

$

4,738

 

$

41,320

 

Weighted average shares outstanding

 

82,937

 

81,857

 

 

 

 

 

 

 

Income from continuing operations per share

 

$

0.25

 

$

0.19

 

Net income per share

 

$

0.06

 

$

0.50

 

 

During the year ended December 31, 2012, the Company recognized approximately $3.0 million of revenues and $2.0 million of net income from operations of this acquisition.