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Land, Buildings and Improvements, and Assets Held for Sale (Tables)

9 Months Ended

Sep. 30, 2023

Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands):


	September 30, 2023		December 31, 2022
Land	$	2,385,620	$	2,400,002
Buildings and improvements	10,950,878		10,916,630
Real estate under construction	54,194		22,225
Less: Accumulated depreciation	(1,727,825)		(1,672,091)
	$	11,662,867	$	11,666,766

The aggregate purchase price allocation for investments disclosed above is as follows (dollars in thousands):


	Total Capitalized Costs
Land	$	135,502
Buildings and improvements	604,973
Intangible assets:
In-place lease (weighted-average expected life of 21.9 years)	142,073
Right-of-use assets:
Finance lease (a)	12,981
Prepaid rent liabilities	(6,882)
	$	888,647

__________

(a)Represents consideration paid to acquire a leasehold interest in land, buildings and improvements. The lease was determined to be a finance lease due to our intention to acquire the land, buildings and improvements upon lease expiration. These assets are included in In-place lease intangible assets and other in the consolidated balance sheets.

Below is a summary of our Land, buildings and improvements — operating properties (in thousands):


	September 30, 2023		December 31, 2022
Land	$	141,942	$	122,317
Buildings and improvements	1,080,058		955,009
Real estate under construction	62		18,566
Less: Accumulated depreciation	(72,781)		(28,295)
	$	1,149,281	$	1,067,597

The aggregate purchase price allocation for investments disclosed above is as follows (dollars in thousands):


	Total Capitalized Costs
Land	$	5,404
Buildings and improvements	13,303
Intangible assets:
In-place lease (weighted-average expected life of 0.5 years)	579
	$	19,286

Schedule of Real Estate Acquired

During the nine months ended September 30, 2023, we entered into the following investments, which were deemed to be real estate asset acquisitions (dollars in thousands):


Property Location(s)	Number of Properties	Date of Acquisition	Property Type	Total Capitalized Costs
Various, United States	6	1/12/2023	Industrial	$	64,861
Various, Italy (5 properties) and Spain (3 properties) (a)	8	3/23/2023	Industrial	79,218
Various, Canada	11	4/1/2023	Industrial, Warehouse	467,811
Various, United States (4 properties), Canada (3 properties), and Mexico (2 properties) (b)	9	4/18/2023	Industrial	97,952
Various, United States (c)	9	5/5/2023; 5/26/2023	Retail (Car Wash)	39,713
Various, United States	4	6/15/2023	Education (Medical School)	139,092
	47			$	888,647

__________

(a)Amount reflects the applicable exchange rate on the date of transaction.

(b)Amount includes $3.1 million for an expansion at a property leased to this tenant that we already own.

(c)We also entered into a purchase agreement to acquire two additional retail (car wash) facilities leased to this tenant totaling $8.7 million, which is expected to be completed during the fourth quarter of 2023.

During the nine months ended September 30, 2023, we entered into the following self-storage operating property investments, which were deemed to be real estate asset acquisitions (dollars in thousands):


Property Location(s)	Number of Properties	Date of Acquisition	Property Type	Total Capitalized Costs
Little Rock, Arkansas (a)	1	6/22/2023	Self-Storage	$	6,166
Houston, Texas	1	8/25/2023	Self-Storage	13,120
	2			$	19,286

__________

(a)We also committed to fund $3.6 million for an expansion at this facility, which is expected to be completed in the first quarter of 2024.

Schedule of Real Estate under Construction

During the nine months ended September 30, 2023, we completed the following construction projects (dollars in thousands):

Property Location(s)

Primary Transaction Type

Number of Properties

Date of Completion

Property Type

Total Capitalized Costs

Evansville, Indiana and Lawrence, Kansas

Renovation

3/23/2023

Industrial

20,637

Pleasanton, California

Redevelopment

8/21/2023

Laboratory

13,905

34,542

Schedule of Operating Lease Income

Lease income related to operating leases recognized and included in the consolidated statements of income is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Lease income — fixed	$	325,481	$	295,433	$	958,015	$	852,843
Lease income — variable (a)	43,678		36,469		132,604		101,138
Total operating lease income	$	369,159	$	331,902	$	1,090,619	$	953,981

__________

(a)Includes (i) rent increases based on changes in the U.S. Consumer Price Index (“CPI”) and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services.

Schedule of Disclosure of Long Lived Assets Held-for-Sale

Below is a summary of our properties held for sale (in thousands):


	September 30, 2023		December 31, 2022
Land, buildings and improvements — net lease and other	$	39,372	$	47,134
Land, buildings and improvements — operating properties	71,719		—
In-place lease intangible assets and other	12,910		10,854
Above-market rent intangible assets	5,625		3,210
Accumulated depreciation and amortization	(27,611)		(3,254)
Assets held for sale, net	$	102,015	$	57,944