Real Estate and Intangible Assets (Tables)
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3 Months Ended |
Mar. 31, 2018 |
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| Real Estate [Abstract] |
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| Components of Investments in Real Estate |
The following table sets forth the components of our investments in real estate as of March 31, 2018 and December 31, 2017, excluding real estate held for sale as of March 31, 2018 and December 31, 2017 (dollars in thousands):
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March 31, 2018 |
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December 31, 2017 |
Real estate: |
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Land |
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$ |
122,000 |
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$ |
121,783 |
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Building and improvements |
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718,948 |
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708,948 |
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Tenant improvements |
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63,736 |
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63,122 |
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Accumulated depreciation |
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(155,899 |
) |
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(149,417 |
) |
Real estate, net |
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$ |
748,785 |
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$ |
744,436 |
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| Acquisitions |
We acquired one property during the three months ended March 31, 2018, and zero properties during the three months ended March 31, 2017, which is summarized below (dollars in thousands):
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Three Months Ended |
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Square Footage |
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Lease Term |
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Purchase Price |
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Acquisition Expenses |
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Annualized GAAP Rent |
March 31, 2018 |
(1) |
127,444 |
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9.8 Years |
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$ |
14,341 |
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$ |
91 |
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$ |
1,087 |
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(1) |
On March 9, 2018, we acquired a 127,444 square foot property in Vance, Alabama for $14.3 million. The annualized GAAP rent on the 9.8 year lease is $1.1 million.
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(2) |
We accounted for this transaction under ASU 2017-01, "Clarifying the Definition of a Business." As a result, we treated our acquisition during the three months ended March 31, 2018 as an asset acquisition rather than a business combination. As a result of this treatment, we capitalized $0.1 million of acquisition costs that would otherwise have been expensed under business combination treatment.
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| Fair Value of Assets Acquired and Liabilities Assumed |
We determined the fair value of assets acquired and liabilities assumed related to the property acquired during the three months ended March 31, 2018 as follows (dollars in thousands):
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Three months ended March 31, 2018 |
Acquired assets and liabilities |
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Purchase price |
Land |
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$ |
459 |
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Building |
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11,609 |
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Tenant Improvements |
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615 |
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In-place Leases |
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509 |
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Leasing Costs |
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534 |
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Customer Relationships |
|
566 |
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Above Market Leases |
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49 |
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Total Purchase Price |
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$ |
14,341 |
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| Summary of Lease on Property |
During the three months ended March 31, 2018 and 2017, we executed one and zero new leases, respectively, which is summarized below (dollars in thousands):
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Three Months Ended |
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Aggregate Square Footage |
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Weighted Average Lease Term |
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Aggregate Annualized GAAP Rent |
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Aggregate Leasing Commissions |
March 31, 2018 |
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34,441 |
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3.6 years |
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$ |
97 |
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$ |
14 |
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| Carrying Value of Intangible Assets and Accumulated Amortization |
The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of March 31, 2018 and December 31, 2017, excluding real estate held for sale as of March 31, 2018 and December 31, 2017 (dollars in thousands):
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March 31, 2018 |
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December 31, 2017 |
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Lease Intangibles |
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Accumulated Amortization |
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Lease Intangibles |
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Accumulated Amortization |
In-place leases |
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$ |
80,638 |
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$ |
(34,902 |
) |
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$ |
80,355 |
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$ |
(33,201 |
) |
Leasing costs |
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56,147 |
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(24,186 |
) |
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55,695 |
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(23,016 |
) |
Customer relationships |
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59,276 |
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(20,672 |
) |
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58,892 |
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(19,798 |
) |
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$ |
196,061 |
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$ |
(79,760 |
) |
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$ |
194,942 |
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$ |
(76,015 |
) |
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Deferred Rent Receivable/(Liability) |
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Accumulated (Amortization)/Accretion |
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Deferred Rent Receivable/(Liability) |
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Accumulated (Amortization)/Accretion |
Above market leases |
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$ |
14,474 |
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$ |
(8,200 |
) |
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$ |
14,425 |
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$ |
(7,962 |
) |
Below market leases and deferred revenue |
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(26,752 |
) |
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10,974 |
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(26,725 |
) |
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10,475 |
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$ |
(12,278 |
) |
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$ |
2,774 |
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$ |
(12,300 |
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$ |
2,513 |
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| Weighted Average Amortization Periods |
The weighted average amortization periods in years for the intangible assets acquired during the three months ended March 31, 2018 were as follows:
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Intangible Assets & Liabilities |
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2018 |
In-place leases |
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9.8 |
Leasing costs |
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9.8 |
Customer relationships |
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14.8 |
Above market leases |
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9.8 |
All intangible assets & liabilities |
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11.1 |
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