Quarterly report pursuant to Section 13 or 15(d)

Real Estate and Intangible Assets (Tables)

v3.21.2
Real Estate and Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2021
Real Estate [Abstract]  
Components of Investments in Real Estate
The following table sets forth the components of our investments in real estate as of June 30, 2021 and December 31, 2020, excluding real estate held for sale as of December 31, 2020 (dollars in thousands):
June 30, 2021 December 31, 2020
Real estate:
Land (1) $ 145,163  $ 142,853 
Building and improvements 937,203  916,601 
Tenant improvements 69,936  69,229 
Accumulated depreciation (249,797) (228,468)
Real estate, net $ 902,505  $ 900,215 
(1)This amount includes $4,436 of land value subject to land lease agreements which we may purchase at our option for a nominal fee.
Acquisitions
We acquired two properties during the six months ended June 30, 2021, and five properties during the six months ended June 30, 2020. The acquisitions are summarized below (dollars in thousands):

Six Months Ended Aggregate Square Footage Weighted Average Lease Term Aggregate Purchase Price Aggregate Capitalized Acquisition Costs
June 30, 2021 (1) 205,352  13.5 years $ 19,341  $ 216  (3)
June 30, 2020 (2) 890,038  14.8 years $ 71,965  $ 255  (3)
(1)On January 22, 2021, we acquired a 180,152 square foot property in Findlay, Ohio for $11.1 million. The property is fully leased to one tenant for 14.2 years. On June 17, 2021, we acquired a 25,200 square foot property in Baytown, Texas for $8.2 million. The property is fully leased to one tenant for 12.6 years.
(2)On January 8, 2020, we acquired a 64,800 square foot property in Indianapolis, Indiana for $5.3 million. The property is leased to three tenants, with a weighted average lease term of 7.2 years. On January 27, 2020, we acquired a 320,838 square foot, three-property portfolio in Houston, Texas, Charlotte, North Carolina, and St. Charles, Missouri for $34.7 million. The portfolio has a weighted average lease term of 20.0 years. On March 9, 2020, we acquired a 504,400 square foot property in Crandall, Georgia, for $32.0 million. This property is fully leased to one tenant for 10.5 years.(3)During the six months ended June 30, 2021 and 2020, we capitalized $0.2 million and $0.3 million, respectively, of acquisition costs.
Fair Value of Assets Acquired and Liabilities Assumed
We determined the fair value of assets acquired and liabilities assumed related to the properties acquired during the six months ended June 30, 2021 and 2020, respectively, as follows (dollars in thousands):
Six Months Ended June 30, 2021 Six Months Ended June 30, 2020
Acquired assets and liabilities Purchase price Purchase price
Land $ 1,862  $ 7,296  (1)
Building 14,277  54,000 
Tenant Improvements 103  1,285 
In-place Leases 1,127  4,442 
Leasing Costs 1,153  4,261 
Customer Relationships 455  2,223 
Above Market Leases 364  210  (2)
Below Market Leases —  (1,752) (3)
Total Purchase Price $ 19,341  $ 71,965 
(1)This amount includes $2,711 of land value subject to a land lease agreement, which we may purchase for a nominal fee.
(2)This amount includes $53 of loans receivable included in Other assets on the condensed consolidated balance sheets.
(3)This amount includes $62 of prepaid rent included in Other liabilities on the condensed consolidated balance sheets.
Future Lease Payments From Tenants
Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for the six months ending December 31, 2021 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):

Year Tenant Lease Payments
Six Months Ending 2021 $ 54,410 
2022 108,578 
2023 101,489 
2024 94,907 
2025 88,320 
2026 79,278 
Thereafter 279,143 
$ 806,125 
Lease Revenue The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three and six months ended June 30, 2021 and 2020, respectively (dollars in thousands):
For the three months ended June 30,
(Dollars in Thousands)
Lease revenue reconciliation 2021 2020 $ Change % Change
Fixed lease payments $ 29,345  $ 29,690  $ (345) (1.2) %
Variable lease payments 4,026  3,835  191  5.0  %
$ 33,371  $ 33,525  $ (154) (0.5) %

For the six months ended June 30,
(Dollars in Thousands)
Lease revenue reconciliation 2021 2020 $ Change % Change
Fixed lease payments $ 60,101  $ 59,169  $ 932  1.6  %
Variable lease payments 7,946  7,976  (30) (0.4) %
$ 68,047  $ 67,145  $ 902  1.3  %
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 June 30, 2021 and December 31, 2020, excluding real estate held for sale as of December 31, 2020 (dollars in thousands):

June 30, 2021 December 31, 2020
Lease Intangibles Accumulated Amortization Lease Intangibles Accumulated Amortization
In-place leases $ 100,779  $ (58,955) $ 99,254  $ (54,168)
Leasing costs 76,602  (41,224) 73,707  (37,801)
Customer relationships 69,012  (35,130) 68,268  (31,881)
$ 246,393  $ (135,309) $ 241,229  $ (123,850)
Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion
Above market leases $ 15,460  $ (11,097) $ 15,076  $ (10,670)
Below market leases and deferred revenue (39,481) 20,110  (38,319) 17,686 
Weighted Average Amortization Periods The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the six months ended June 30, 2021 and 2020, respectively, were as follows:
Intangible Assets & Liabilities 2021 2020
In-place leases 13.5 16.3
Leasing costs 13.5 16.3
Customer relationships 21.1 19.5
Above market leases 13.5 18.0
Below market leases 0.0 14.2
All intangible assets & liabilities 15.3 16.9