PROPERTY PORTFOLIO

6 Months Ended

Jun. 30, 2022

PROPERTY PORTFOLIO

PROPERTY PORTFOLIO

NOTE 3. PROPERTY PORTFOLIO

As of June 30, 2022, the Company’s property portfolio consisted of 143 properties with total square footage of 3.3 million.

Leasing revenue consists of long-term rental revenue from retail and office properties, which is recognized as earned, using the straight-line method over the life of each lease. Lease payments below include straight-line base rental revenue as well as the non-cash accretion of above and below market lease amortization. The variable lease payments are comprised of percentage rent payments and reimbursements from tenants for common area maintenance, insurance, real estate taxes, and other operating expenses.

The components of leasing revenue are as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Lease Income
Lease Payments	$	10,160	$	5,986	$	19,891	$	11,432
Variable Lease Payments		1,120		611		2,188		1,055
Total Lease Income	$	11,280	$	6,597	$	22,079	$	12,487

Minimum Future Rental Receipts. Minimum future rental receipts under non-cancelable operating leases, excluding percentage rent and other lease payments that are not fixed and determinable, having remaining terms in excess of one year subsequent to June 30, 2022, are summarized as follows (in thousands):  

Year Ending December 31,	Amounts
Remainder of 2022	$	19,597
2023		38,681
2024		37,621
2025		36,069
2026		35,202
2027		31,916
2028 and Thereafter (Cumulative)		117,851
Total	$	316,937

2022 Activity. During the six months ended June 30, 2022, the Company acquired 35 properties for a combined purchase price of $109.1 million, or a total cost of $110.0 million including capitalized acquisition costs. The properties are located in 17 states, leased to 12 different tenants, and had a weighted average remaining lease term of 9.4 years at the time of acquisition. Of the total acquisition cost, $31.1 million was allocated to land, $67.0 million was allocated to buildings and improvements, $13.1 million was allocated to intangible assets pertaining to the in-place lease value, leasing fees, and above market lease value, and $1.2 million was allocated to intangible liabilities for the below market lease value. The weighted average amortization period for the intangible assets and liabilities was 9.7 years at acquisition.

During the six months ended June 30, 2022, the Company sold five properties for an aggregate sales price of $72.8 million, generating aggregate gains on sale of $15.6 million. One property was classified as held for sale as of June 30, 2022.  

2021 Activity. During the six months ended June 30, 2021, the Company acquired 23 properties for a combined purchase price of $103.2 million, or a total cost of $103.8 million including capitalized acquisition costs. Of the total acquisition cost, $34.1 million was allocated to land, $57.5 million was allocated to buildings and improvements, $13.9 million was allocated to intangible assets pertaining to the in-place lease value, leasing fees, and above market lease value, and $1.5 million was allocated to intangible liabilities for the below market lease value. The weighted average amortization period for the intangible assets and liabilities was 8.3 years at acquisition. No properties were sold during the six months ended June 30, 2021.