5. REAL ESTATE AND RELATED LEASE INTANGIBLES, NET

The following tables present additional detail related to our real estate portfolio ($ in thousands):



	March 31, 2016			December 31, 2015

Land	$	134,618		$	138,128
Building	628,612			640,206
In-place leases and other intangibles	138,402			139,501
Real estate	901,632			917,835
Less: Accumulated depreciation and amortization	(92,402		)	(83,056		)
Real estate and related lease intangibles, net	$	809,230		$	834,779

The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands):



	Three Months Ended March 31,
	2016		2015

Depreciation expense (1)	$	6,104	$	5,906
Amortization expense	3,693		3,812
Total real estate depreciation and amortization expense	$	9,797	$	9,718


(1)	Depreciation expense on the combined consolidated statements of income also includes $5,125 and $5,187 of depreciation on corporate fixed assets for the three months ended March 31, 2016 and 2015, respectively.

The Company’s intangible assets are comprised of in-place leases, favorable leases compared to market leases and other intangibles. At March 31, 2016, gross intangible assets totaled $138.4 million with total accumulated amortization of $36.6 million, resulting in net intangible assets of $101.8 million, including $6.1 million of unamortized favorable lease intangibles which are included in real estate and related lease intangibles, net on the combined consolidated balance sheets. At December 31, 2015, gross intangible assets totaled $139.5 million with total accumulated amortization of $32.7 million, resulting in net intangible assets of $106.8 million, including $6.5 million of unamortized favorable lease intangibles which are included in real estate and related lease intangibles, net on the combined consolidated balance sheets. For the three months ended March 31, 2016 and 2015, respectively, the Company recorded an offset against operating lease income of $0.4 million and $0.4 million, respectively, for favorable leases.

The following table presents expected amortization expense during the next five years and thereafter related to the acquired in-place lease intangibles for property owned as of March 31, 2016 ($ in thousands):



Period Ending December 31,	Amount

2016 (last 9 months)	$	10,076
2017	4,886
2018	4,414
2019	3,992
2020	3,266
Thereafter	75,187
Total	$	101,821

There were $5.6 million and $5.0 million of unbilled rent receivables included in other assets on the combined consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively.

There was unencumbered real estate of $30.9 million and $47.8 million as of March 31, 2016 and December 31, 2015, respectively.

The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases or rent escalations under other leases from tenants) at March 31, 2016 ($ in thousands):



Period Ending December 31,	Amount

2016 (last 9 months)	$	53,182
2017	67,974
2018	65,337
2019	60,705
2020	57,582
Thereafter	494,550
Total	$	799,330

Acquisitions

During the three months ended March 31, 2016, the Company acquired no properties. During the three months ended March 31, 2015, the Company acquired the following properties ($ in thousands):



Acquisition Date	Type	Primary Location(s)	Purchase Price		Ownership Interest (1)

January 2015	Net Lease	Jacksonville, NC	$	7,877	100.0%
January 2015	Net Lease	Iberia, MO	1,328		100.0%
January 2015	Net Lease	Isle, MN	1,078		100.0%
January 2015	Net Lease	Pine Island, MN	1,142		100.0%
January 2015	Net Lease	Kings Mountain, NC	21,241		100.0%
February 2015	Net Lease	Village of Menomonee Falls, WI	17,050		100.0%
February 2015	Net Lease	Rockland, MA	7,316		100.0%
February 2015	Net Lease	Crawfordsville, IA	6,000		100.0%
February 2015	Net Lease	Boardman Township, OH	5,400		100.0%
March 2015	Net Lease	Hilliard, OH	6,384		100.0%
March 2015	Net Lease	Weathersfield Township, OH	5,200		100.0%
March 2015	Net Lease	Rotterdam, NY	12,000		100.0%
March 2015	Net Lease	Wheaton, MO	970		100.0%
March 2015	Net Lease	Paynesville, MN	1,254		100.0%
March 2015	Net Lease	Loveland, CO	5,600		100.0%
March 2015	Net Lease	Battle Lake, MN	1,098		100.0%
March 2015	Net Lease	Yorktown, TX	1,207		100.0%
March 2015	Net Lease	St. Francis, MN	1,117		100.0%
Total real estate acquisitions			$	103,262

(1) Properties were consolidated as of acquisition date.

The purchase prices were allocated to the net assets acquired during the three months ended March 31, 2015, as follows ($ in thousands):



	Purchase Price Allocation

Land	$	12,605
Building	82,669
Intangibles	7,988
Total purchase price	$	103,262

Sales

The Company sold the following properties during the three months ended March 31, 2016 ($ in thousands):



Sales Date	Type	Primary Location(s)	Net Sales Proceeds		Net Book Value		Realized Gain/(Loss)		Properties	Units

Mar 2016	Net Lease	Rockland, MA	9,148		8,437		711		1	—
Various	Condominium	Las Vegas, NV	8,404		4,417		3,987		—	17
Various	Condominium	Miami, FL	5,963		4,566		1,397		—	21
Totals			$	23,515	$	17,420	$	6,095

The Company sold the following properties during the three months ended March 31, 2015 ($ in thousands):



Sales Date	Type	Primary Location(s)	Net Sales Proceeds		Net Book Value		Realized Gain/(Loss)		Properties	Units

Various	Condominium	Las Vegas, NV	12,210		6,777		5,433		—	25
Various	Condominium	Miami, FL	9,857		7,628		2,229		—	33
Totals			$	22,067	$	14,405	$	7,662

Real Estate Sold or Classified as Held for Sale

On January 1, 2014, the Company early adopted ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, and as the properties sold or classified as real estate held for sale in the three months ended March 31, 2016 and 2015 did not represent a strategic shift (as the Company is not entirely exiting markets or property types), they have not been reflected as part of discontinued operations.

The following unaudited pro forma information has been prepared based upon our historical combined consolidated financial statements and certain historical financial information of the acquired properties, which are accounted for as business combinations, and should be read in conjunction with the combined consolidated financial statements and notes thereto. The unaudited pro forma combined consolidated financial information reflects the 2015 acquisition adjustments made to present financial results as though the acquisition of the properties occurred on January 1, 2014 through the date of acquisition. This unaudited pro forma information may not be indicative of the results that actually would have occurred if these transactions had been in effect on the dates indicated, nor do they purport to represent our future results of operations ($ in thousands):



	Three Months Ended March 31, 2015
	Company Historical			Acquisitions			Consolidated Pro Forma

Operating lease income	$	19,147		$	871		$	20,018
Net income	17,963			454			18,417
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures	(191		)	—			(191		)
Net (income) loss attributable to noncontrolling interest in operating partnership	(8,597		)	(222		)	(8,819		)
Net income attributable to Class A common shareholders	9,175			231			9,406

The Company recorded $1.0 million in revenues from its 2015 acquisitions for the three months ended March 31, 2015, which are included in operating lease income on the combined consolidated statements of income.

The most significant adjustments made in preparing the unaudited pro forma information were to: (i) include the incremental operating lease income, (ii) include the incremental depreciation, and (iii) adjust for transaction costs associated with the properties acquired in 2015 as if they were incurred on January 1, 2014.