Real Estate Investments and Properties Held for Sale

The following table reflects the number and related base purchase prices of properties remaining as of December 31, 2015 and during the nine months ended September 30, 2016:



	Number of Properties	Base Purchase Price⁽¹⁾
		(In thousands)
As of December 31, 2015	329	$	2,633,562
Dispositions for the nine months ended September 30, 2016	(3)	(12,843		)
Portfolio as of September 30, 2016	326	$	2,620,719

________________________________________________


⁽¹⁾	Contract purchase price, excluding acquisition related costs, based on the exchange rate at the date of purchase, where applicable.

The Company concluded that the properties sold and held for sale do not represent a strategic shift in operations and as a result are not considered to be discontinued operations. During the nine months ended September 30, 2016, the Company sold its properties located in Hephzibah, Georgia ("Fresenius II"), Raleigh, North Carolina ("Garden Ridge"), and Spencerville, Ohio ("Dollar General") and entered into 10 purchase and sales agreements to sell 30 properties which are scheduled to be sold during the fourth quarter of 2016. The following table summarizes the properties sold during the three and nine months ended September 30, 2016 and properties that are classified as assets held for sale as of September 30, 2016. The Company did not sell any real estate assets during the three and nine months ended September 30, 2015.



Portfolio	State	Disposition Date	Number of Properties	Square Feet	Contract Sales Price		Gains on Sale ⁽¹⁾
					(In thousands)		(In thousands)
Properties Sold
Fresenius II	Georgia	September 2, 2016	1	6,192	$	3,333	$	483
Garden Ridge	North Carolina	September 29, 2016	1	119,258	9,190		803
Dollar General	Ohio	September 29, 2016	1	9,026	1,423		34
Total			3	134,476	$	13,946	$	1,320
Assets Held for Sale
Dollar General - Choctaw	Oklahoma	October 13, 2016	1	9,100	1,497		⁽²⁾
Dollar General - 15-Pack	⁽³⁾	October 28, 2016	15	145,938	21,661		⁽²⁾
Family Dollar - 8-Pack	Florida	October 13, 2016	8	63,510	13,239		⁽²⁾
Total			24	218,548	$	36,397	$	—

________________________________________________


⁽¹⁾	Reflected within gains on dispositions of real estate investments in the consolidated statements of operations for the nine months ended September 30, 2016


⁽²⁾	Property sold subsequent to September 30, 2016 and therefore gain (loss) on sale is not disclosed above.


⁽³⁾	Consists of properties sold in Pennsylvania, Ohio and Oklahoma.

The sale of Fresenius II, Garden Ridge and Dollar General did not represent a strategic shift that has a major effect on the Company’s operations and financial results. Accordingly, the results of operations of Fresenius II, Garden Ridge and Dollar General remain classified within continuing operations for all periods presented until the respective dates of their sale.

The following table details the major classes of assets associated with the above 24 assets classified as held for sale as of September 30, 2016.



(In thousands)	September 30, 2016
Real estate held for sale, at cost:
Land	$	6,521
Buildings, fixtures and improvements	19,071
Acquired intangible lease assets	8,833
Total real estate held for sale, at cost	34,425
Less accumulated depreciation and amortization	(2,441		)
Real estate assets held for sale, net	$	31,984

The following table presents the allocation of the assets acquired and liabilities assumed during the nine months ended September 30, 2015 based on contract purchase price, excluding acquisition related costs, based on the exchange rate at the time of purchase. There were no acquisitions during the nine months ended September 30, 2016.



(Dollar amounts in thousands)	September 30, 2015
Real estate investments, at cost:
Land	$	23,831
Buildings, fixtures and improvements	190,314
Total tangible assets	214,145
Intangibles acquired:
In-place leases	45,736
Above market lease assets	1,002
Below market lease liabilities	(7,181		)
Below market ground lease assets	3,409
Above market ground lease liabilities	(2,104		)
Total assets acquired, net	255,007
Mortgage notes payable used to acquire real estate investments	(31,933		)
Cash paid for acquired real estate investments	$	223,074
Number of properties purchased	22

The following table presents unaudited pro forma information as if acquisitions completed during the three and nine months ended September 30, 2015 had been consummated on January 1, 2015.



(In thousands, except per share data)	Three Months Ended September 30, 2015		Nine Months Ended September 30, 2015
Pro forma revenues	$	53,727	$	161,841
Pro forma net income	$	11,635	$	3,474
Pro forma basic and diluted net income per share	$	0.07	$	0.02

The following table presents future minimum base rental cash payments due to the Company over the next five calendar years and thereafter as of September 30, 2016. 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 indices among other items.



(In thousands)	Future Minimum Base Rent Payments ⁽¹⁾
2016 (remainder)	$	47,177
2017	190,475
2018	193,487
2019	195,904
2020	198,041
2021	196,057
Thereafter	947,472
	$	1,968,613

___________________________________________


⁽¹⁾	Based on the exchange rates as of September 30, 2016.

There were no tenants whose annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis for all portfolio properties as of September 30, 2016 and 2015.

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



	September 30,
Country or State	2016	2015
United Kingdom	17.3%	19.6%
United States:
Texas	11.2%	11.4%