Investments in Real Estate (Tables)

6 Months Ended

Jun. 30, 2022

The Company acquired the following properties during the six months ended June 30, 2022 (dollars in thousands):


				Rentable
				Square		Purchase		Transaction
Property	Market	Closing Date		Feet⁽¹⁾		Price		Costs		Total
4Front MA	Massachusetts		January 28, 2022		57,000	$	16,000	$	20	$	16,020	⁽²⁾
Ascend NJ	New Jersey		February 10, 2022		114,000		35,400		8		35,408	⁽³⁾
Verano PA	Pennsylvania		March 23, 2022		3,000		2,750		68		2,818
Kings Garden CA	California		March 25, 2022		23,000		8,158		11		8,169	⁽⁴⁾
MCP MD	Maryland		April 13, 2022		84,000		25,000		290		25,290	⁽⁵⁾
Harvest AZ	Arizona		April 27, 2022		17,000		5,238		11		5,249	⁽⁵⁾
TILT MA	Massachusetts		May 16, 2022		104,000		40,000		32		40,032	⁽⁵⁾
Texas Original TX	Texas		June 14, 2022		85,000		12,040		23		12,063	⁽⁵⁾⁽⁶⁾
Total					487,000	$	144,586	$	463	$	145,049	⁽⁷⁾

(1)

Includes expected rentable square feet at completion of construction of certain properties.

(2)

The acquisition of the property did not satisfy the requirements for sale-leaseback accounting and therefore, the transaction is recognized as a note receivable and is included in other assets, net on our condensed consolidated balance sheet.

(3)

The tenant is expected to complete improvements at the property, for which we agreed to provide funding of up to $4.6 million.

(4)

The purchase price includes $1.8 million holdback held in an escrow account, which is subject to distribution to the seller upon seller’s completion of certain improvements at the property. As of June 30, 2022, we have distributed approximately $1.4 million of the holdback. The remaining approximately $400,000 is included in restricted cash on our condensed consolidated balance sheet.

(5)

The acquisitions of the MCP MD, Harvest AZ, TILT MA and Texas Original TX properties were made through consolidated VIEs utilizing Reverse 1031 Exchanges that were entered into at the time each of the properties was acquired. See Note 2 “Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements – Variable Interest Entities” for more information regarding the Company’s Reverse 1031 Exchanges and consolidation of VIEs.

(6)

The tenant is expected to complete improvements at the property, for which we agreed to provide funding of up to approximately $10.0 million. The purchase price includes approximately $908,000 attributable to the property which did not satisfy the requirements for sale-leaseback accounting; therefore, this amount is recognized as a note receivable and is included in other assets, net on our condensed consolidated balance sheet.

(7)

Approximately $16.9 million was included in other assets; $1.8 million was included in restricted cash; approximately $10.5 million was allocated to land; approximately $115.1 million was allocated to building and improvements; and approximately $798,000 was allocated to in-place leases.

Schedule of future contractual minimum rent

Future contractual minimum rent (including base rent and property management fees) under the operating leases as of June 30, 2022 for future periods is summarized as follows (in thousands):


Year	Contractual Minimum Rent
2022 (six months ending December 31)	$	148,023
2023		307,933
2024		316,846
2025		326,222
2026		335,909
Thereafter		4,810,212
Total	$	6,245,145

Acquired In-Place Lease Intangible Assets

Schedule of intangible assets and related accumulated amortization

In-place lease intangible assets and related accumulated amortization as of June 30, 2022 and December 31, 2021 is as follows (in thousands):


	June 30, 2022		December 31, 2021
In-place lease intangible assets	$	9,979	$	9,181
Accumulated amortization		(444)		(33)
In-place lease intangible assets, net	$	9,535	$	9,148

Schedule of estimated annual amortization


Year	Amount
2022 (six months ending December 31)	$	430
2023		860
2024		860
2025		860
2026		860
Thereafter		5,665
Total	$	9,535

Above-Market Lease

Schedule of intangible assets and related accumulated amortization

The above-market lease and related accumulated amortization included in other assets, net on our condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 is as follows (in thousands):


	June 30, 2022		December 31, 2021
Above-market lease	$	1,054	$	1,054
Accumulated amortization		(50)		(4)
Above-market lease, net	$	1,004	$	1,050