Investments in Real Estate

6 Months Ended

Jun. 30, 2024

During the three months ended June 30, 2024, the Company acquired one industrial property and one portfolio of industrial properties, with a total initial investment, including acquisition costs, of approximately $472.8 million, of which $297.9 million was recorded to land, $143.5 million to buildings and improvements and $31.4 million to intangible assets. Additionally, the Company assumed $22.4 million in liabilities.

During the six months ended June 30, 2024, the Company acquired three industrial properties and one portfolio of industrial properties, with a total initial investment, including acquisition costs, of approximately $491.5 million, of which $313.0 million was recorded to land, $147.1 million to buildings and improvements, and $31.4 million to intangible assets. Additionally, the Company assumed $22.4 million in liabilities.

The Company recorded revenues and net income for both the three and six months ended June 30, 2024 of approximately $6.5 million and $2.8 million, respectively, related to the 2024 acquisitions.

During the three months ended June 30, 2023, the Company acquired one industrial property with a total initial investment, including acquisition costs, of approximately $13.8 million, of which $7.8 million was recorded to land, $4.9 million to buildings and improvements, and $1.1 million to intangible assets. Additionally, the Company assumed $0.3 million in liabilities.

During the six months ended June 30, 2023, the Company acquired four industrial properties with a total initial investment, including acquisition costs, of approximately $420.5 million, of which $253.7 million was recorded to land, $147.9 million to buildings and improvements, and $18.9 million to intangible assets. Additionally, the Company assumed $43.0 million in liabilities.

The Company recorded revenues and net income for the three months ended June 30, 2023 of approximately $3.9 million and $1.4 million, respectively, and recorded revenues and net income for the six months ended June 30, 2023 of approximately $4.2 million and $1.2 million, respectively, related to the 2023 acquisitions.

The above assets and liabilities were recorded at fair value, which uses Level 3 inputs. The purchase price for each acquisition was allocated to the individual acquired assets and liabilities based on their relative fair values. The properties were acquired from unrelated third parties using existing cash on hand, proceeds from property sales and issuances of common stock and borrowings on the revolving credit facility.

As of June 30, 2024, the Company had nine properties under development or redevelopment that, upon completion, will consist of ten buildings aggregating approximately 1.1 million square feet and one approximately 2.8-acre improved land parcel. Additionally, the Company owned approximately 35.4 acres of land for future development that, upon completion, will consist of three buildings aggregating approximately 0.7 million square feet. The following table summarizes certain information with respect to the properties under development or redevelopment and the land for future development as of June 30, 2024:


Property Name	Location	Total Expected Investment (in thousands) 1		Estimated Post-Development Square Feet	Estimated Post-Development Acreage


Properties under development or redevelopment:
Countyline Phase IV
Countyline Building 31 2	Hialeah, FL	$	42,054	161,787	—
Countyline Building 32 2	Hialeah, FL	40,132		164,307	—
Countyline Building 33 2	Hialeah, FL	38,977		158,042	—
Countyline Building 39 2	Hialeah, FL	43,802		178,201	—
147th Street	Hawthorne, CA	15,431		31,378	—
Maple III	Rancho Dominguez, CA	28,486		—	2.8
Paterson Plank III	Carlstadt, NJ	35,301		47,316	—
East Garry Avenue	Santa Ana, CA	40,513		91,500	—
139th Street 3	Gardena, CA	104,611		227,755	—
Total		$	389,307	1,060,286	2.8

Land for future development:
Countyline Phase IV
Countyline Phase IV Land 2	Hialeah, FL	$	174,846	652,985	—
Total		$	174,846	652,985	—

1Excludes below-market lease adjustments recorded at acquisition. Total expected investment for the properties includes the initial purchase price, buyer’s due diligence and closing costs, estimated near-term redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization.

2Collectively, “Countyline Phase IV”, a 121-acre project entitled for 2.2 million square feet of industrial distribution buildings located in Miami’s Countyline Corporate Park (“Countyline”), immediately adjacent to the Company’s seven buildings within Countyline. Countyline Phase IV, a landfill redevelopment adjacent to Florida’s Turnpike and the southern terminus of I-75, is expected to contain ten LEED-certified industrial distribution buildings at completion.

3This redevelopment property was initially acquired in 2017 for a total initial investment, including closing costs and acquisition costs, of approximately $39.9 million. The property was in the operating portfolio until January 2024 when redevelopment commenced. The amount spent to date includes the total initial investment and capital expenditures incurred prior to redevelopment and excludes accumulated depreciation recorded since acquisition. The Company expects a total incremental investment of approximately $64.0 million.

During 2024, the Company completed development of two properties. The following table summarizes certain information with respect to the development properties completed during the six months ended June 30, 2024:



Property Name	Location	Total Investment (in thousands) 1		Post-Development Square Feet	Completion Quarter
Countyline Building 38	Hialeah, FL	$	88,500	506,215	Q2 2024
Countyline Building 40	Hialeah, FL	43,800		186,107	Q2 2024
Total/Weighted Average		$	132,300	692,322

1Total investment for the properties include the initial purchase price, buyer’s due diligence and closing costs, redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization.

The Company capitalized interest associated with development, redevelopment, renovation or expansion activities of approximately $2.8 million and $2.3 million during the three months ended June 30, 2024 and 2023, respectively, and approximately $5.9 million and $2.9 million during the six months ended June 30, 2024 and 2023, respectively.