Investments in Real Estate

Acquisitions

The following table summarizes the wholly-owned industrial properties we acquired during the nine months ended September 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
3002-3072 Inland Empire Blvd⁽²⁾	Inland Empire - West	7/3/2017	218,407	4	26,900
17000 Kingsview Avenue⁽²⁾	Los Angeles - South Bay	7/11/2017	100,121	1	13,986
Rancho Pacifica Park⁽⁶⁾	Los Angeles - South Bay	7/18/2017	1,170,806	6	210,500
11190 White Birch Drive⁽²⁾	Inland Empire - West	7/20/2017	201,035	1	19,810
4832-4850 Azusa Canyon Road⁽²⁾	Los Angeles - San Gabriel Valley	7/28/2017	87,421	1	14,550
1825 Soto Street⁽⁵⁾	Los Angeles - Central	9/8/2017	25,040	2	3,475
19402 Susana Road⁽⁵⁾	Los Angeles - South Bay	9/13/2017	15,433	1	3,942
Total 2017 Wholly-Owned Property Acquisitions			3,582,375	39	$	534,472


(1)	Represents the gross contractual purchase price before prorations and closing costs. Does not include capitalized acquisition costs totaling $1.4 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.


(6)	This acquisition was partially funded with net cash proceeds from the issuance of $125.0 million of senior unsecured guaranteed notes and borrowings under our unsecured revolving credit facility.

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):



	Rancho Pacifica Park		Other 2017 Acquisitions		Total 2017 Acquisitions
Assets:
Land	$	121,329	$	147,757	$	269,086
Buildings and improvements	85,336		159,905		245,241
Tenant improvements	1,440		4,662		6,102
Acquired lease intangible assets⁽¹⁾	8,852		17,144		25,996
Other acquired assets⁽²⁾	5		144		149
Total assets acquired	216,962		329,612		546,574
Liabilities:
Acquired lease intangible liabilities⁽³⁾	6,264		5,032		11,296
Other assumed liabilities⁽²⁾	1,126		2,044		3,170
Total liabilities assumed	7,390		7,076		14,466
Net assets acquired	$	209,572	$	322,536	$	532,108

(1)

For Rancho Pacifica Park, acquired lease intangible assets is comprised of in-place lease intangibles with weighted average amortization period of 3.2 years. For the other 2017 acquisitions, acquired lease intangible assets is comprised of $15.8 million of in-place lease intangibles with a weighted average amortization period of 4.6 years and $1.3 million of above-market lease intangibles with a weighted average amortization period of 11.1 years.


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


(3)	Represents below-market lease intangibles with a weighted average amortization period of 3.5 years and 3.3 years for Rancho Pacifica Park and the other 2017 acquisitions, respectively.

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



	Three Months Ended September 30, 2017		Nine Months Ended September 30, 2017
Total revenues	$	8,084	$	9,475
Net income	$	951	$	729

The following table sets forth unaudited pro-forma financial information (in thousands) as if the closing of our acquisitions during the nine months ended September 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 nine months ended September 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 September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Total revenues	$	43,936	$	41,109	$	130,645	$	113,954
Net income attributable to common stockholders	$	738	$	1,173	$	22,340	$	11,082
Net income attributable to common stockholders per share - basic	$	0.01	$	0.02	$	0.32	$	0.18
Net income attributable to common stockholders per share - diluted	$	0.01	$	0.02	$	0.32	$	0.18

Dispositions

The following table summarizes the properties we sold during the nine months ended September 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.