Real Estate Investments, Net

3 Months Ended

Mar. 31, 2017

REAL ESTATE INVESMENTS, NET

Real Estate Investments, Net

Real estate investments, net, which consist of land, buildings and improvements leased to others subject to triple-net operating leases and those utilized in the operations of Kerrow Restaurant Operating Business are summarized as follows:



	March 31,			December 31,
(In thousands)	2017			2016
Land	$	425,401		$	421,941
Buildings and improvements	926,560			916,444
Equipment	138,652			139,180
Total gross real estate investments	1,490,613			1,477,565
Less: accumulated depreciation	(586,486		)	(583,307		)
Total Real Estate Investments, Net	$	904,127		$	894,258

During the three months ended March 31, 2017, the Company invested $17.5 million, including transaction costs, in nine restaurant properties located in six states, and allocated the investment as follows: $4.2 million to land, $12.6 million to buildings and improvements, and $0.7 million to intangible assets related to leases. There was no contingent consideration associated with these acquisitions. These properties are 100% occupied under triple-net leases, with a weighted average lease term of 13.5 years. The Company accounted for these transactions as asset acquisitions in accordance with GAAP.

Operating Leases

The following table presents the scheduled minimum future contractual rent to be received under the remaining non-cancelable term of the operating leases. Because lease renewal periods are exercisable at the option of the lessee, the table presents future minimum lease payments due during the initial lease term only.



	March 31,
(In thousands)	2017
2017 (nine months)	$	76,630
2018	103,450
2019	104,951
2020	106,448
2021	107,901
Thereafter	1,016,821
Total Future Minimum Lease Payments	$	1,516,201