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Investments in Real Estate (Tables)
 3 Months Ended
Mar. 31, 2014
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.

 

 

 

 

 

Real estate assets:

 

 

Acquisition-related intangibles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Address

 

Acquisition Date

 

Land

 

 

Buildings and

Improvements

 

 

In-place Lease

Intangibles (1)

 

 

Net Above (Below)

Market Lease

Intangibles (2)

 

 

Total Purchase

Price

 

 

Other Assets

 

 

Notes Payable,

Accounts Payable,

Accrued Expenses

and Tenant

Security Deposits

 

 

Net Assets

Acquired

 

2014 Acquisitions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7110 Rosecrans Avenue(3)

 

1/15/2014

 

$

3,117,000

 

 

$

1,894,000

 

 

$

-

 

 

$

-

 

 

$

5,011,000

 

 

$

-

 

 

$

(321,000

)

 

$

4,690,000

 

14723-14825 Oxnard Street

 

1/22/2014

 

$

4,373,000

 

 

$

3,873,000

 

 

$

650,000

 

 

$

(21,000

)

 

$

8,875,000

 

 

$

-

 

 

$

(117,000

)

 

$

8,758,000

 

845, 855, & 865 Milliken Avenue and 4317 & 4319 Santa Ana Street

 

2/12/2014

 

$

2,440,000

 

 

$

5,588,000

 

 

$

616,000

 

 

$

(94,000

)

 

$

8,550,000

 

 

$

2,000

 

 

$

(116,000

)

 

$

8,436,000

 

1500-1510 West 228th Street

 

2/25/2014

 

$

2,609,000

 

 

$

3,879,000

 

 

$

419,000

 

 

$

(307,000

)

 

$

6,600,000

 

 

$

-

 

 

$

(33,000

)

 

$

6,567,000

 

24105 & 24201 Frampton Avenue

 

3/20/2014

 

$

2,315,000

 

 

$

1,553,000

 

 

$

62,000

 

 

$

-

 

 

$

3,930,000

 

 

$

22,000

 

 

$

(64,000

)

 

$

3,888,000

 

Total

 

 

 

$

14,854,000

 

 

$

16,787,000

 

 

$

1,747,000

 

 

$

(422,000

)

 

$

32,966,000

 

 

$

24,000

 

 

$

(651,000

)

 

$

32,339,000

 

 

(1)

The weighted average amortization period of acquired in-place lease intangibles for our 2014 acquisitions was 1.9 years as of March 31, 2014.

(2)

The weighted average amortization period of net below market leases for our 2014 acquisitions was 2.6 years as of March 31, 2014.

(3)

As the purchase of 7110 Rosecrans Avenue was accounted for as an asset acquisition, the total purchase price allocation of includes $42,000 of capitalized acquisition costs.
Proforma Financial Information

The following table summarizes the combined results from operations of our 2014 acquisitions since the acquisition date, included in the consolidated income statement for the following period:

 

 

 

Three Months Ended
March 31, 2014

 

Revenues

 

$

371,000

 

Net loss

 

$

(76,000

)

The following table presents unaudited pro-forma financial information as if the closing of our 2014 acquisitions had occurred on January 1, 2013. These unaudited pro-forma results have been prepared for comparative purposes only and include certain adjustments, such as increased depreciation and amortization expenses as a result of tangible and intangible assets acquired in the acquisitions. These unaudited pro-forma results do not purport to be indicative of what operating results would have been had the acquisitions actually occurred on January 1, 2013 and may not be indicative of future operating results.

 

 

 

Three Months Ended March 31,

 

 

 

2014

 

 

2013

 

Revenues

 

$

13,992,000

 

 

$

9,659,000

 

Net operating income

 

$

9,251,000

 

 

$

6,767,000

 

Net income

 

$

1,707,000

 

 

$

1,593,000