Investments in Real Estate

Acquisitions

The following table summarizes the wholly-owned industrial property we acquired during the six months ended June 30, 2017:



Property	Submarket	Date of Acquisition	Rentable Square Feet	Number of Buildings	Contractual Purchase Price⁽¹⁾ (in thousands)
28903 Avenue Paine⁽²⁾	Los Angeles - San Fernando Valley	2/17/2017	111,346	1	$	17,060
2390 Ward Avenue⁽³⁾	Ventura	4/28/2017	138,700	1	16,499
Safari Business Center⁽⁴⁾	Inland Empire - West	5/24/2017	1,138,090	16	141,200
4175 Conant Street⁽⁵⁾	Los Angeles - South Bay	6/14/2017	142,593	1	30,600
5421 Argosy Avenue⁽⁵⁾	Orange County - West	6/15/2017	35,321	1	5,300
14820-14830 Carmenita Road⁽²⁾	Los Angeles - Mid-counties	6/30/2017	198,062	3	30,650
Total 2017 Wholly-Owned Property Acquisitions			1,764,112	23	$	241,309


(1)	Represents the gross contractual purchase price before prorations and closing costs. Does not include capitalized acquisition costs totaling $0.6 million.


(2)	This acquisition was funded with available cash on hand and borrowings under our unsecured revolving credit facility.


(3)	This acquisition was partially funded through a 1031 Exchange using $6.5 million of net cash proceeds from the sale of our property located at 9375 Archibald Avenue and borrowings under our unsecured revolving credit facility.


(4)	This acquisition was partially funded through a 1031 Exchange using $39.7 million of net cash proceeds from the sale of our property located at 2535 Midway Drive, borrowings under our unsecured revolving credit facility and available cash on hand.


(5)	This acquisition was funded with available cash on hand.

The following table summarizes the fair value of amounts allocated to each major class of asset and liability for the acquisitions noted in the table above, as of the date of each acquisition (in thousands):



	Total 2017 Acquisitions
Assets:
Land	$	107,350
Buildings and improvements	120,364
Tenant improvements	3,924
Acquired lease intangible assets⁽¹⁾	12,867
Other acquired assets⁽²⁾	143
Total assets acquired	244,648
Liabilities:
Acquired lease intangible liabilities⁽³⁾	2,687
Other assumed liabilities⁽²⁾	1,514
Total liabilities assumed	4,201
Net assets acquired	$	240,447


(1)	Represents in-place leases and above-market leases with weighted average amortization periods of 5.1 years and 11.2 years, respectively.


(2)	Includes other working capital assets acquired and liabilities assumed, at the time of acquisition.


(3)	Represents below-market leases with a weighted average amortization period of 3.2 years.

The following table sets forth the results of operations for the three and six months ended June 30, 2017, for the properties acquired during the six months ended June 30, 2017, included in the consolidated statements of operations from the date of acquisition (in thousands):



	Three Months Ended June 30, 2017			Six Months Ended June 30, 2017
Total revenues	$	1,391		$	1,391
Net income	$	(262	)	$	(280	)

The following table sets forth unaudited pro-forma financial information (in thousands) as if the closing of our acquisitions during the six months ended June 30, 2017, had occurred on January 1, 2016. These unaudited pro-forma results have been prepared for comparative purposes only and include certain adjustments, such as (i) increased rental revenues for the amortization of the net amount of above- and below-market rents acquired in the acquisitions, (ii) increased depreciation and amortization expenses as a result of tangible and intangible assets acquired in the acquisitions and (iii) increased interest expense for borrowings associated with these acquisitions. These pro-forma results have not been adjusted for property sales completed during the six months ended June 30, 2017. 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, 2016, and may not be indicative of future operating results.



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Total revenues	$	39,222	$	34,134	$	78,324	$	65,170
Net income attributable to common stockholders	$	18,664	$	11,541	$	22,748	$	12,195
Net income attributable to common stockholders per share - basic	$	0.27	$	0.18	$	0.34	$	0.19
Net income attributable to common stockholders per share - diluted	$	0.27	$	0.18	$	0.34	$	0.19

Dispositions

The following table summarizes the property we sold during the six months ended June 30, 2017:



Property	Submarket	Date of Disposition	Rentable Square Feet	Contractual Sales Price⁽¹⁾ (in thousands)		Gain Recorded (in thousands)
9375 Archibald Avenue	Inland Empire West	3/31/2017	62,677	$	6,875	$	2,668
2535 Midway Drive	San Diego - Central	5/17/2017	373,744	$	40,050	$	15,974
2811 Harbor Boulevard	Orange County - Airport	6/28/2017	126,796	$	18,700	$	595
Total			563,217	$	65,625	$	19,237


(1)	Represents the gross contractual sales price before commissions, prorations and other closing costs.