Note 3 — Real Estate Investments

The Company owned 35 properties, which were acquired for investment purposes, as of June 30, 2016. The following table presents the allocation of real estate assets acquired and liabilities assumed during the six months ended June 30, 2015. There were no real estate assets acquired or liabilities assumed during the six months ended June 30, 2016:



(Dollar amounts in thousands)	Six Months Ended June 30, 2015
Real estate investments, at cost:
Land	$	60,590
Buildings, fixtures and improvements	129,140
Total tangible assets	189,730
Acquired intangibles:
In-place leases	27,005
Above-market lease assets	3,905
Below-market lease liabilities	(18,618		)
Total intangible real estate investments, net	12,292
Cash paid for acquired real estate investments	$	202,022
Number of properties purchased	8

Total acquired intangible lease assets and liabilities consist of the following as of June 30, 2016 and December 31, 2015:



	June 30, 2016						December 31, 2015
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
In-place leases	$	161,464	$	46,091	$	115,373	$	168,293	$	34,298	$	133,995
Above-market leases	21,764		5,856		15,908		22,583		4,547		18,036
Below-market ground lease	1,578		58		1,520		1,578		39		1,539
Total acquired intangible lease assets	$	184,806	$	52,005	$	132,801	$	192,454	$	38,884	$	153,570
Intangible liabilities:
Below-market lease liabilities	$	83,827	$	9,308	$	74,519	$	84,837	$	6,734	$	78,103

The following table presents amortization expense and adjustments to revenue and property operating expense for intangible assets and liabilities for the three and six months ended June 30, 2016 and 2015:



	Three Months Ended						Six Months Ended
(In thousands)	June 30, 2016			June 30, 2015			June 30, 2016			June 30, 2015
In-place leases	$	9,269		$	6,344		$	18,633		$	12,114
Total added to depreciation and amortization	$	9,269		$	6,344		$	18,633		$	12,114

Above-market lease assets	$	(1,113	)	$	(615	)	$	(2,130	)	$	(1,198	)
Below-market lease liabilities	1,868			1,248			3,671			2,398
Total added to rental income	$	755		$	633		$	1,541		$	1,200

Below-market ground lease asset	$	9		$	9		$	19		$	19
Total added to property operating expense	$	9		$	9		$	19		$	19

The following table provides the projected amortization expense and adjustments to revenue and property operating expense for intangible assets and liabilities for the next five years:



(In thousands)	July 1, 2016 to December 31, 2016			2017			2018			2019			2020
In-place leases	$	13,055		$	26,626		$	20,098		$	13,926		$	9,464
Total to be added to depreciation and amortization	$	13,055		$	26,626		$	20,098		$	13,926		$	9,464

Above-market lease assets	$	(1,362	)	$	(3,319	)	$	(2,459	)	$	(1,733	)	$	(1,134	)
Below-market lease liabilities	2,997			6,279			5,737			5,208			4,712
Total to be added to rental income	$	1,635		$	2,960		$	3,278		$	3,475		$	3,578

Below-market ground lease asset	$	19		$	39		$	39		$	39		$	39
Total to be added to property operating expense	$	19		$	39		$	39		$	39		$	39

The following table presents future minimum base rent payments on a cash basis due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items:



(In thousands)	Future Minimum Base Rent Payments
July 1, 2016 to December 31, 2016	$	47,046
2017	90,997
2018	78,488
2019	61,737
2020	50,142
Thereafter	188,481
	$	516,891

No tenant represented 10.0% or greater of consolidated annualized rental income on a straight-line basis for all properties as of June 30, 2016 and 2015.

The following table lists the states where the Company has concentrations of properties where annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of June 30, 2016 and 2015:



	June 30,
State	2016	2015
Texas	12.6%	16.2%
North Carolina	11.8%	*
Florida	10.0%	10.8%
Minnesota	*	11.2%
Oklahoma	*	10.5%

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*	State's annualized rental income on a straight-line basis was not greater than or equal to 10.0% of consolidated annualized rental income for all properties as of the date specified.

The Company did not own properties in any other state that in total represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of June 30, 2016 and 2015.