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Real Estate Investments, Net and Intangible Assets and Liabilities, Net
 3 Months Ended
Mar. 31, 2022
Real Estate [Abstract]  
Real Estate Investments, Net and Intangible Assets and Liabilities, Net REAL ESTATE INVESTMENTS, NET AND INTANGIBLE ASSETS AND LIABILITIES, NET
Real Estate Investments, Net
Real estate investments, net, which consist of land, buildings and improvements leased to others subject to net operating leases and those utilized in the operations of Kerrow Restaurant Operating Business are summarized as follows:
March 31,
December 31,
(In thousands)
2022
2021
Land$991,895 $966,565 
Buildings and improvements1,316,091 1,302,114 
Equipment135,749 135,726 
Total gross real estate investments2,443,735 2,404,405 
Less: Accumulated depreciation(689,198)(682,430)
Total real estate investments, net1,754,537 1,721,975 
Intangible lease assets, net104,721 104,251 
Total Real Estate Investments and Intangible Lease Assets, Net$1,859,258 $1,826,226 
During the three months ended March 31, 2022, the Company invested $43.3 million, including transaction costs, in 18 properties located in nine states, and allocated the investment as follows: $25.3 million to land, $14.0 million to buildings and
improvements, and $4.0 million to intangible assets. There was no contingent consideration associated with these acquisitions. These properties are 100% occupied under net leases, with a weighted average remaining lease term of 9.0 years as of March 31, 2022. The Company did not dispose of any properties during the three months ended March 31, 2022.
During the three months ended March 31, 2021, the Company invested $36.1 million, including transaction costs, in 13 properties located in nine states, and allocated the investment as follows: $18.0 million to land, $14.7 million to buildings and improvements, $0.6 million to equipment, and $2.8 million to intangible assets. There was no contingent consideration associated with these acquisitions. These properties were 100% occupied under net leases, with a weighted average remaining lease term of 9.9 years as of March 31, 2021. During the three months ended March 31, 2021, the Company sold two properties with a combined net book value of $2.8 million for a realized gain on sale of $431 thousand.
Intangible Lease Assets and Liabilities, Net
Acquired in-place lease intangibles are amortized over the remaining lease term as depreciation and amortization expense. Above-market and below-market leases are amortized over the initial term of the respective leases as an adjustment to rental revenue. Lease incentives are amortized over the initial term of the respective leases as an adjustment to rental revenue. Intangible lease liabilities are included in Other liabilities in our Consolidated Balance Sheets.
The following tables detail intangible lease assets and liabilities.
March 31,
December 31,
(In thousands)
2022
2021
Acquired in-place lease intangibles$87,883 $83,892 
Above-market leases13,821 13,821 
Finance leases - right of use asset (1)
24,383 24,383 
Lease incentives7,061 7,061 
Direct lease costs87 87 
Total133,235 129,244 
Less: Accumulated amortization(28,514)(24,993)
Intangible Lease Assets, Net$104,721 $104,251 
(1)    See Note 5 - Leases for additional information on finance leases - right of use assets.
March 31,
December 31,
(In thousands)
2022
2021
Below-market leases$2,978 $2,978 
Less: Accumulated amortization(1,129)(1,038)
Intangible Lease Liabilities, Net$1,849 $1,940 
The value of acquired in-place leases amortized and included in depreciation and amortization expense was $2.9 million and $2.1 million for the three months ended March 31, 2022 and 2021, respectively. The value of above-market and below-market leases amortized as an adjustment to revenue was $390 thousand and $401 thousand for the three months ended March 31, 2022 and 2021, respectively. For the three months ended March 31, 2022 and 2021, lease incentive amortization was $136 thousand and $105 thousand, respectively.
At March 31, 2022, the total weighted average amortization period remaining for our intangible lease assets and liabilities was 8.6 years, and the individual weighted average amortization period remaining for acquired in-place lease intangibles, above-market leases, below-market leases and lease incentives was 8.4 years, 7.4 years, 9.5 years and 13.6 years, respectively.
Amortization of Lease Intangibles
The following table presents the estimated impact during the next five years and thereafter related to the amortization of in-place lease intangibles, and above-market and below-market lease intangibles for properties held for investment at March 31, 2022.
(In thousands)
March 31,
2022 (nine months)$10,334 
202311,684 
202410,122 
20258,465 
20267,373 
Thereafter24,171 
Total Future Amortization$72,149