Real Estate Investments

The Company owned 459 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, 2016. There were no real estate assets acquired or liabilities assumed during the six months ended June 30, 2015:



	Six Months Ended
(Dollar amounts in thousands)	June 30, 2016
Real estate investments, at cost:
Land	$	1,729
Buildings, fixtures and improvements	29,664
Total tangible assets	31,393
Acquired intangibles:
In-place leases ⁽¹⁾	3,162
Above-market lease assets ⁽¹⁾	548
Above-market ground lease liability ⁽¹⁾	(85		)
Below-market lease liabilities ⁽¹⁾	(774		)
Total intangible assets, net	2,851
Cash paid for acquired real estate investments	$	34,244
Number of properties purchased	4

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(1)	Weighted-average remaining amortization periods for in-place leases, above-market lease assets, above-market ground lease liability and below-market lease liabilities acquired during the six months ended June 30, 2016 were 9.5 years, 9.6 years, 48.6 years and 9.5 years, respectively, as of each property's respective acquisition date.

Total acquired intangible lease assets and liabilities consist of the following as of the dates presented:



	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	$	305,651	$	84,011	$	221,640	$	305,245	$	68,278	$	236,967
Above-market lease assets	13,729		6,711		7,018		13,783		5,555		8,228
Total acquired intangible lease assets	$	319,380	$	90,722	$	228,658	$	319,028	$	73,833	$	245,195
Intangible liabilities:
Above-market ground lease liability	$	85	$	1	$	84	$	—	$	—	$	—
Below-market lease liabilities	19,241		3,113		16,128		20,623		2,490		18,133
Total acquired intangible lease liabilities	$	19,326	$	3,114	$	16,212	$	20,623	$	2,490	$	18,133

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 June 30,						Six Months Ended June 30,
(In thousands)	2016			2015			2016			2015
In-place leases	$	8,613		$	8,650		$	17,291		$	17,300
Total added to depreciation and amortization	$	8,613		$	8,650		$	17,291		$	17,300

Above-market leases	$	(740	)	$	(752	)	$	(1,496	)	$	(1,503	)
Below-market lease liabilities	620			335			961			670
Total deducted from rental income	$	(120	)	$	(417	)	$	(535	)	$	(833	)

Above-market ground lease liability	$	(1	)	$	—		$	(1	)	$	—
Total deducted from property operating expense	$	(1	)	$	—		$	(1	)	$	—

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	$	17,106		$	34,212		$	24,207		$	24,187		$	22,569
Total to be added to depreciation and amortization	$	17,106		$	34,212		$	24,207		$	24,187		$	22,569

Above-market leases	$	(1,453	)	$	(2,906	)	$	(526	)	$	(526	)	$	(526	)
Below-market lease liabilities	1,504			3,009			974			974			974
Total to be added to rental income	$	51		$	103		$	448		$	448		$	448

Above-market ground lease liability	$	(1	)	$	(2	)	$	(2	)	$	(2	)	$	(2	)
Total to be deducted from property operating expense	$	(1	)	$	(2	)	$	(2	)	$	(2	)	$	(2	)

The following table presents unaudited pro forma information as if the acquisitions during the six months ended June 30, 2016 had been consummated on January 1, 2015:



	Six Months Ended June 30,
(In thousands, except per share data)	2016 ⁽¹⁾			2015
Pro forma revenues	$	88,427		$	87,465
Pro forma net (loss) income	$	(9,803	)	$	3,886
Basic pro forma net (loss) income per share	$	(0.15	)	$	0.06
Diluted pro forma net (loss) income per share	$	(0.15	)	$	0.06

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(1)	For the six months ended June 30, 2016, aggregate revenues and net income derived from the Company's 2016 acquisitions (for the Company's period of ownership) were $1.0 million and $0.5 million, respectively.

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	$	79,234
2017	160,078
2018	153,784
2019	155,875
2020	150,703
Thereafter	912,235
	$	1,611,909

The following table lists the tenants (including, for this purpose, all affiliates of such tenants) from which the Company derives annualized rental income on a straight-line basis constituting 10.0% or more of the Company's consolidated annualized rental income on a straight-line basis for all portfolio properties as of the dates indicated:



	June 30,
Tenant	2016	2015
SunTrust Bank	17.8%	17.9%
Sanofi US	11.4%	11.6%
C&S Wholesale Grocer	10.2%	10.4%

The termination, delinquency or non-renewal of leases by one or more of the above tenants may have a material adverse effect on revenues. No other tenant represented 10.0% or greater of consolidated annualized rental income on a straight-line basis 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 the dates indicated:



	June 30,
State	2016	2015
New Jersey	20.0%	20.3%
Georgia	11.0%	11.2%

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.

Real Estate Sales

On May 12, 2016 the Company entered into a purchase and sale agreement with SunTrust Bank, a wholly owned subsidiary of SunTrust Banks, Inc. ("SunTrust"), for, and simultaneously closed on, the sale of eight single-tenant net lease properties operated by SunTrust for an aggregate contract price of $28.9 million, exclusive of closing costs. The sale of the eight properties resulted in a gain of $0.5 million, which is reflected within gain on sale of real estate investments on the consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2016. The Company did not sell any properties during the three and six months ended June 30, 2015.

The disposal of the properties referenced above did not represent a strategic shift that had a major effect on the Company's operations and financial results. Accordingly, the operating results of the properties sold remain classified within continuing operations for all periods presented until the date of disposal.

Leasing Activity

On May 12, 2016, the Company amended 160 of its leases for single-tenant net lease properties operated by SunTrust, which in general extended the remaining lease terms of theses leases with no modification to the contractual rent increases as set forth in these leases.