INVESTMENT IN REAL ESTATE

3 Months Ended

Mar. 31, 2023

3. INVESTMENT IN REAL ESTATE

As of March 31, 2023 and December 31, 2022, our consolidated investment in real estate properties consisted of 244 and 243 industrial buildings, respectively.


	As of
(in thousands)	March 31, 2023		December 31, 2022
Land	$	1,290,292	$	1,284,003
Building and improvements		5,191,162		5,139,402
Intangible lease assets		481,165		479,532
Construction in progress		345,259		285,214
Investment in real estate properties		7,307,878		7,188,151
Less accumulated depreciation and amortization		(527,157)		(454,273)
Net investment in real estate properties	$	6,780,721	$	6,733,878

Acquisitions

During the three months ended March 31, 2023, we acquired 100% of the following property, which was determined to be an asset acquisition:


		Number of	Total Purchase
($ in thousands)	Acquisition Date	Buildings	Price (1)
Bayport 146 Distribution Center	2/21/2023	1	$	49,606
Total Acquisitions		1	$	49,606

(1)	Total purchase price is equal to the total consideration paid plus any debt assumed at fair value. There was no debt assumed in connection with the 2023 acquisition.

During the three months ended March 31, 2023, we allocated the purchase price of our acquisition to land and building and improvements as follows:


	For the Three Months Ended
(in thousands)	March 31, 2023
Land	$	6,289
Building and improvements		43,317
Total purchase price (1)	$	49,606

(1)	Total purchase price is equal to the total consideration paid plus any debt assumed at fair value. There was no debt assumed in connection with the 2023 acquisition.

Intangible and above-market lease assets are amortized over the remaining lease term. Below-market lease liabilities are amortized over the remaining lease term, plus any below-market, fixed-rate renewal option periods. There were no intangible lease assets or liabilities acquired in connection with our acquisition during the three months ended March 31, 2023.

Intangible Lease Assets and Liabilities

Intangible lease assets and liabilities as of March 31, 2023 and December 31, 2022 included the following:


	As of March 31, 2023						As of December 31, 2022
			Accumulated						Accumulated
(in thousands)	Gross		Amortization		Net		Gross		Amortization		Net
Intangible lease assets (1)	$	468,295	$	(180,654)	$	287,641	$	466,663	$	(158,757)	$	307,906
Above-market lease assets (1)		12,870		(4,424)		8,446		12,869		(3,872)		8,997
Below-market lease liabilities		(129,824)		38,700		(91,124)		(129,823)		32,424		(97,399)

(1)	Included in net investment in real estate properties on the condensed consolidated balance sheets.

Rental Revenue Adjustments and Depreciation and Amortization Expense

The following table summarizes straight-line rent adjustments, amortization recognized as an increase (decrease) to rental revenues from above-and below-market lease assets and liabilities, and real estate-related depreciation and amortization expense:


	For the Three Months Ended March 31,
(in thousands)	2023		2022
Increase (Decrease) to Rental Revenue:
Straight-line rent adjustments	$	3,098	$	4,719
Above-market lease amortization		(553)		(405)
Below-market lease amortization		6,275		3,976
Real Estate-Related Depreciation and Amortization:
Depreciation expense	$	50,435	$	37,469
Intangible lease asset amortization		21,896		18,276