INCOME PROPERTIES

3 Months Ended

Mar. 31, 2017

INCOME PROPERTIES

INCOME PROPERTIES

NOTE 2. INCOME PROPERTIES

During the three months ended March 31, 2017, the Company acquired one single-tenant income property and one multi-tenant income property, for an aggregate purchase price of approximately $19.1 million, or an aggregate acquisition cost of approximately $19.4 million including capitalized acquisition costs. Of the total acquisition cost, approximately $13.3 million was allocated to land, approximately $4.8 million was allocated to buildings and improvements, approximately $2.1 million was allocated to intangible assets pertaining to the in-place lease value, leasing fees and above market lease value, and approximately $800,000 was allocated to intangible liabilities for the below market lease value. The weighted average amortization period for the intangible assets and liabilities is approximately 3.9 years. The properties acquired during the three months ended March 31, 2017 are described below:

· On January 27, 2017, the Company acquired a 18,120 square-foot building situated on approximately 1.2 acres in Sarasota, Florida which is 100% leased to an affiliate of Staples, Inc. The purchase price was approximately $4.1 million, and as of the acquisition date, the remaining term of the lease was approximately 5.0 years.

· On March 1, 2017, the Company acquired an approximately 136,000 square-foot grocery-anchored shopping center situated on approximately 10.3 acres in Fort Worth, Texas.  The property consists of four single-tenant buildings and one multi-tenant building situated on three separate, but contiguous, land parcels.  In aggregate, the property is approximately 96% leased. The purchase price was approximately $15.0 million, and as of the acquisition date, the weighted average remaining term of the leases was approximately 4.1 years.

No income properties were disposed of during the three months ended March 31, 2017.

During the three months ended March 31, 2016, the Company acquired one multi-tenant property at a purchase price of approximately $2.5 million. No income properties were disposed of during the three months ended March 31, 2016; however, seventeen single-tenant income properties were classified as held for sale as of March 31, 2016, three of which closed in April 2016 and fourteen of which closed in September 2016. An impairment of approximately $210,000 was charged to earnings during the three months ended March 31, 2016 related to one of the April 2016 sales as more fully described in Note 8, “Impairment of Long-Lived Assets.”