Recent Acquisitions of Real Estate

12 Months Ended

Dec. 31, 2019

The Company acquired nine properties during the year ended December 31, 2019, and three properties during each of the years ended December 31, 2018 and 2017. The amounts recognized for major assets acquired as of the acquisition date were determined by allocating the purchase price, which includes transaction costs beginning January 1, 2018 as further described below, of each property acquired in 2019, 2018 and 2017 as follows (in thousands):



Property Name	Acquisition Date	Building and Improvements ⁽²⁾			Land ⁽²⁾		In-place Lease Intangibles ⁽²⁾			Out-of- Market Lease Intangibles, Net ⁽²⁾			Right of Use Asset, net			Discount (premium) on assumed mortgage loan ⁽²⁾		Total ⁽²⁾
2019 ⁽¹⁾
ABC Westland	5/3/2019	$	74,054	⁽³⁾	$	59,664	$	6,902		$	(1,124	)	$	—		$	—	$	139,496
Promenade Shops at Briargate	9/13/2019	$	55,425		$	19,199	$	20,017		$	(1,047	)	$	—		$	—	$	93,594
Gdańsk PL II	9/24/2019	$	18,707		$	6,174	$	5,013		$	449		$	—		$	—	$	30,343
Łódź Urban Logistics	9/26/2019	$	19,298		$	—	$	3,684		$	(134	)	$	2,777	⁽⁵⁾	$	—	$	25,625
Glasgow West End	9/27/2019	$	66,255		$	22,276	$	3,170		$	—		$	—		$	—	$	91,701
Charles Tyrwhitt DC	11/8/2019	$	11,207		$	7,013	$	3,587		$	(489	)	$	—		$	—	$	21,318
The Alloy	11/12/2019	$	81,956		$	14,194	$	3,291		$	—		$	—		$	—	$	99,441
DSG Bristol	11/18/2019	$	22,503		$	17,713	$	8,319		$	1,507		$	—		$	—	$	50,042
Royal Mail	12/12/2019	$	23,735		$	6,170	$	5,536		$	—		$	—		$	—	$	35,441

2018
Venue Museum District	9/21/2018	$	52,538		$	17,409	$	3,240		$	—		$	—		$	—	$	73,187
Fresh Park Venlo	10/5/2018	$	128,977		$	—	$	11,880		$	(2,583	)	$	—		$	—	$	138,274
Maintal Logistics	12/31/2018	$	30,175		$	15,031	$	2,287		$	(691	)	$	—		$	—	$	46,802

2017
Rookwood	1/6/2017	$	132,466		$	45,320	$	27,477		$	(12,275	)	$	—		$	740	$	193,728
Montrose Student Residences	3/24/2017	$	33,705		$	5,691	$	1,282	⁽⁴⁾	$	(56	)	$	—		$	—	$	40,622
Queen’s Court Student Residences	10/11/2017	$	50,894		$	14,086	$	1,819		$	(1,513	)	$	—		$	—	$	65,286


(1)	For more information on acquisitions completed during the year ended December 31, 2019, refer to Note 3 — Investment Property.


(2)	For acquisitions denominated in a foreign currency, amounts have been translated to U.S. dollars at a rate based on the exchange rate in effect on the acquisition date.


(3)	Amount includes approximately €14.1 million (approximately $15.8 million assuming a rate of $1.12 per EUR as of the acquisition date) of solar panels at date of acquisition, which are to be depreciated using the straight-line method assuming a useful life of 25 years.


(4)	Includes $0.6 million related to the retail areas of the Montrose Student Residences that have lease terms between two years and 19 years.


(5)	Amount is net of a $1.6 million right of use lease liability.

Prior to January 1, 2018, acquisitions of properties were accounted for utilizing the acquisition method and, accordingly, were recorded at the estimated fair values of the assets acquired and liabilities assumed. For acquisitions completed prior to January 1, 2018, estimates of fair values were based upon inputs and assumptions summarized below. In January 2017, the FASB issued ASU 2017-01 to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments to the FASB Accounting Standards Codification were effective for public entities for annual and interim periods in fiscal years beginning after December 15, 2017. On January 1, 2018, the Company adopted ASU 2017-01, pursuant to which the Company determined its acquisitions completed since adoption to be accounted for using the asset acquisition guidance, and are not included in the summary of inputs and assumptions below.

The weighted average amortization period for the intangible assets and liabilities acquired in connection with the 2017 acquisitions, as of the date of the respective acquisition, was as follows (in years):



	In-Place Leases	Above-Market Lease Assets	Below-Market Lease Liabilities
2017 Acquisitions:
Rookwood	8.3	15.7	13.7
Montrose Student Residences	6.5	—	18.9
Queen’s Court Student Residences⁽¹⁾	0.9	—	—


(1)	Excludes the effect of any 999-year leases, which significantly increases the weighted average useful life for these intangibles.

The table below includes the amounts of revenue and net income (loss) of the acquisitions completed during the year ended December 31, 2017, which are included in the Company’s consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2017 (in thousands):



		For the Year Ended
2017 Acquisitions		12/31/2017
Rookwood	Revenue	$	19,507
	Net income (loss)	$	(7,041	)
Montrose Student Residences	Revenue	$	2,579
	Net income (loss)	$	(3,049	)
Queen’s Court Student Residences	Revenue	$	1,200
	Net income (loss)	$	(1,415	)

The following unaudited consolidated information is presented to give effect to the acquisitions completed during the year ended December 31, 2017 as if the acquisitions had occurred on January 1, 2016. The pro forma net loss was adjusted to exclude acquisition-related fees and expenses of $10.0 million for the year ended December 31, 2017. For the year ended December 31, 2016, the pro forma net loss was adjusted to include acquisition fees and expenses of $10.0 million, relating to the 2017 acquisitions, as if these fees and expenses had been incurred as of January 1, 2016.

The information below is not necessarily indicative of what the actual results of operations would have been had the Company completed these acquisitions on January 1, 2016, nor does it purport to represent the Company’s future operations (in thousands):



	For the Years Ended
	December 31,
	Pro Forma 2017			Pro Forma 2016
Revenues	$	64,883		$	52,794
Net income (loss) attributable to common stockholders	$	(10,237	)	$	(16,833	)