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Real Estate Investments and Related Intangibles (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table presents the allocation of the fair values of the assets acquired and liabilities assumed during the periods presented (in thousands):



	Year Ended December 31,
	2019		2018			2017
Real estate investments, at cost:
Land	$	83,476	$	86,285		$	110,634
Buildings, fixtures and improvements	268,470		350,942			523,445
Total tangible assets	351,946		437,227			634,079
Acquired intangible assets:
In-place leases and other intangibles ⁽¹⁾	51,627		62,791			105,940
Above-market leases⁽²⁾	—		2,750			10,445
Assumed intangible liabilities:
Below-market leases⁽³⁾	—		(116		)	(1,680		)
Total purchase price of assets acquired	$	403,573	$	502,652		$	748,784

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(1)	The weighted average amortization period for acquired in-place leases and other intangibles is 16.5 years, 16.3 years and 15.8 years for 2019 Acquisitions, 2018 Acquisitions and 2017 Acquisitions, respectively.


(2)	The weighted average amortization period for acquired above-market leases is 10.8 years and 18.0 years for 2018 Acquisitions and 2017 Acquisitions, respectively.

(3)

The weighted average amortization period for assumed intangible lease liabilities is 9.9 years and 13.8 years for 2018 Acquisitions and 2017 Acquisitions, respectively.

Schedule of Intangible Assets

Intangible lease assets and liabilities of the Company consisted of the following as of December 31, 2019 and December 31, 2018 (amounts in thousands, except weighted-average useful life):



	Weighted-Average Useful Life	December 31, 2019		December 31, 2018
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $748,689 and $703,909, respectively	15.9	$	854,196	$	980,971
Leasing commissions, net of accumulated amortization of $6,027 and $4,048, respectively	10.1	17,808		15,660
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $112,438 and $105,936, respectively	16.3	165,483		201,875
Total intangible lease assets, net		$	1,037,487	$	1,198,506

Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $99,315 and $89,905, respectively	19.1	$	143,583	$	173,479

Schedule of Intangible Liabilities

Intangible lease assets and liabilities of the Company consisted of the following as of December 31, 2019 and December 31, 2018 (amounts in thousands, except weighted-average useful life):



	Weighted-Average Useful Life	December 31, 2019		December 31, 2018
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $748,689 and $703,909, respectively	15.9	$	854,196	$	980,971
Leasing commissions, net of accumulated amortization of $6,027 and $4,048, respectively	10.1	17,808		15,660
Above-market lease assets and deferred lease incentives, net of accumulated amortization of $112,438 and $105,936, respectively	16.3	165,483		201,875
Total intangible lease assets, net		$	1,037,487	$	1,198,506

Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $99,315 and $89,905, respectively	19.1	$	143,583	$	173,479

Schedule of Amortization Expense and Adjustments to Rental Income

The following table provides the projected amortization expense and adjustments to rental revenue related to the intangible lease assets and liabilities for the next five years as of December 31, 2019 (amounts in thousands):



	2020		2021		2022		2023		2024
In-place leases and other intangibles:
Total projected to be included in amortization expense	$	116,812	$	108,990	$	95,237	$	84,843	$	74,347
Leasing commissions:
Total projected to be included in amortization expense	2,361		2,203		2,102		1,827		1,612
Above-market lease assets and deferred lease incentives:
Total projected to be deducted from rental revenue	19,301		18,876		18,064		17,120		15,749
Below-market lease liabilities:
Total projected to be included in rental revenue	16,840		15,189		13,497		12,774		10,927

Investment in Unconsolidated Joint Ventures

The following is a summary of the Company’s investments in unconsolidated joint ventures as of December 31, 2019, December 31, 2018 and for the years ended December 31, 2019, 2018 and 2017 (dollar amounts in thousands):



			Carrying Amount of Investment ⁽¹⁾				Equity in Income ⁽²⁾
			Carrying Amount of Investment ⁽¹⁾				Year Ended
Investment	Ownership % ⁽³⁾	Number of Properties	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018		December 31, 2017
Faison JV Bethlehem GA	90%	1	$	40,416	$	35,289	$	2,364	$	1,219	$	3,068
Industrial Partnership	20%	6	$	28,409	$	—	$	254	$	—	$	—

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(1)

The total carrying amount of the investments was greater than the underlying equity in net assets by $4.7 million as of December 31, 2019 and December 31, 2018. This difference relates to a purchase price allocation of goodwill and a step up in fair value of the investment assets acquired in connection with mergers. The step up in fair value was allocated to the individual investment assets and is being amortized in accordance with the Company’s depreciation policy.


(2)	During the years ended December 31, 2018 and December 31, 2017, the Company recognized $0.7 million and $0.2 million, respectively, of equity in income and gain on disposition of unconsolidated entities from the unconsolidated joint venture which disposed of its property during the year ended December 31, 2018.

(3)

The Company’s ownership interest reflects its legal ownership interest. Legal ownership may, at times, not equal the Company’s economic interest in the listed properties because of various provisions in certain joint venture agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses and payments of preferred returns. As a result, the Company’s actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with its legal ownership interests.