Real Estate Investments, Net

9 Months Ended

Sep. 30, 2020

Property Acquisitions

The following table presents the allocation of the assets acquired and liabilities assumed during the nine months ended September 30, 2020 and 2019, and, in the case of assets located outside of the United States, based on the applicable exchange rate at the time of purchase. All acquisitions in both periods were considered asset acquisitions for accounting purposes.


	Nine Months Ended September 30,
(Dollar amounts in thousands)	2020		2019
Real estate investments, at cost:
Land	$	28,622	$	22,441
Buildings, fixtures and improvements	121,311		243,545
Total tangible assets	149,933		265,986
Acquired intangible lease assets:
In-place leases	16,842		44,256
Above-market lease assets	53		406
Below-market lease liabilities	(1,040)		(1,645)
Total intangible assets	15,855		43,017
ROU asset	5,022		—
Cash paid for acquired real estate investments	$	170,810	$	309,003
Number of properties purchased	21		20

Acquired Intangible Lease Assets

The Company allocates a portion of the fair value of real estate acquired to identified intangible assets and liabilities, consisting of the value of origination costs (tenant improvements, leasing commissions, and legal and marketing costs), the value of above-market and below-market leases, and the value of tenant relationships, if applicable, based in each case on their relative fair values. The Company periodically assesses whether there are any indicators that the value of the intangible assets may be impaired by performing a net present value analysis of future cash flows, discounted for the inherent risk associated with each investment. For the three and nine months ended September 30, 2020 and 2019, the Company did not record any impairment charges for the intangible assets associated with the Company’s real estate investments.

Dispositions

During the three and nine months ended September 30, 2020, the Company did not sell any properties.

During the three months ended September 30, 2019, the Company sold 33 properties located in the United States (32 Family Dollar retail stores and one industrial property) for a total contract sale price of $53.0 million resulting in an aggregate gain of $7.0 million, which is reflected in gains on dispositions of real estate investments in the accompanying consolidated statements of operations for the three months ended September 30, 2019.

During the nine months ended September 30, 2019, the Company sold 97 properties located in the United States (94 Family Dollar retail stores and three industrial properties) and one property located in the United Kingdom for a total contract sales price of $145.8 million, resulting in an aggregate gain of $14.8 million, which is reflected in gains on dispositions of real estate investments in the accompanying consolidated statements of operations for the nine months ended September 30, 2019.

Assets Held for Sale

As of September 30, 2020 and December 31, 2019, the Company did not have any assets that were classified as held for sale.

Significant Tenants

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 properties as of September 30, 2020 and December 31, 2019. The termination, delinquency or non-renewal of leases by any major tenant may have a material adverse effect on revenues.

Geographic Concentration

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, 2020 and December 31, 2019.


Country / U.S. State	September 30, 2020	December 31, 2019
United States	62.1%	63.0%
Michigan	14.0%	14.6%
United Kingdom	17.4%	18.2%