Note 4. Investments in Real Estate

During the three months ended June 30, 2017, the Company acquired 11 industrial buildings containing approximately 807,000 square feet and two land parcels containing approximately 17.8 acres. The total aggregate initial investment, including acquisition costs, was approximately $140.8 million, of which $102.7 million was recorded to land, $31.2 million to buildings and improvements, $6.9 million to intangible assets and $17.3 million to intangible liabilities.

During the six months ended June 30, 2017, the company acquired 13 industrial buildings containing approximately 898,000 square feet and two land parcels containing approximately 17.8 acres. The total aggregate initial investment, including acquisition costs, was approximately $155.9 million, of which $112.3 million was recorded to land, $36.7 million to buildings and improvements, $6.9 million to intangible assets and $17.3 million to intangible liabilities.

The Company recorded revenues and net income for the three months ended June 30, 2017 of approximately $1.1 million and $0.5 million, respectively, and recorded revenues and net income for the six months ended June 30, 2017 of approximately $1.3 million and $0.6 million, respectively, related to the 2017 acquisitions.

During the three months ended June 30, 2016, the Company acquired four industrial buildings containing approximately 162,000 square feet. The total aggregate initial investment was approximately $21.4 million, of which $9.9 million was recorded to land, $9.7 million to buildings and improvements, $1.8 million to intangible assets and $0.5 million to intangible liabilities.

During the six months ended June 30, 2016, the Company acquired seven industrial buildings containing approximately 287,000 square feet and one improved land parcel containing approximately 4.5 acres. The total aggregate initial investment was approximately $49.3 million, of which $26.6 million was recorded to land, $19.6 million to buildings and improvements, $3.1 million to intangible assets and $1.2 million to intangible liabilities.

The Company recorded revenues and net income for the three months ended June 30, 2016 of approximately $0.8 million and $0.1 million, respectively, and recorded revenues and net income for the six months ended June 30, 2016 of approximately $0.9 million and $0.2 million, respectively, related to the 2016 acquisitions.

The above assets and liabilities were recorded at fair value, which uses Level 3 inputs. The properties were acquired from unrelated third parties using existing cash on hand, proceeds from property sales, issuance of common stock and borrowings on the revolving credit facility. Effective January 1, 2017, the Company adopted ASU 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business under which property acquisitions are generally accounted for as asset acquisitions resulting in the capitalization of acquisition costs as part of the purchase price of the acquisition, instead of being expensed as incurred. Prior to January 1, 2017 the Company accounted for property acquisitions as business combinations, in accordance with ASC 805, Business Combinations, resulting in the expense of acquisition costs as incurred.

During 2016, the Company completed redevelopment of its South Main Street property in Carson, California. The Company demolished three buildings totaling approximately 186,000 square feet, constructed a new front-load industrial distribution building containing approximately 210,000 square foot and renovated an existing approximately 34,000 square foot office building. The Company capitalized interest associated with redevelopment and expansion activities of approximately $0 and $0.2 million, respectively, during the three months ended June 30, 2017 and 2016 and $0 and $0.4 million, respectively, during the six months ended June 30, 2017 and 2016. The redevelopment cost was approximately $17.8 million for a total investment of approximately $39.3 million, excluding approximately $2.3 million of intangible liabilities.

Pro Forma Financial Information:

The following supplementary pro forma financial information presents the results of operations of the Company for the three and six months ended June 30, 2017 and 2016 as if all of the Company’s acquisitions during the six months ended June 30, 2017 occurred on January 1, 2016. The following pro forma results for the three and six months ended June 30, 2017 and 2016 have been presented for comparative purposes only and are not necessarily indicative of the results of operations that would have actually occurred had all transactions taken place on January 1, 2016, or of future results of operations (dollars in thousands, except per share data).


		For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2017		2016		2017		2016

Total revenues	$	33,426	$	27,561	$	66,602	$	55,150
Net income available to common stockholders,
net of preferred stock dividends		14,713		2,562		20,315		9,850
Basic and diluted net income available to common stockholders
per share, net of preferred stock dividends	$	0.29	$	0.06	$	0.41	$	0.23