
	Number of Properties	Leasable Square Feet (in thousands)	Investment ($ in millions)		Weighted Average Lease Term (Years)	Initial Average Cash Lease Yield (1)
Three months ended March 31, 2022 (2)
Acquisitions - U.S.	139	2,627	$	629.8	15.0	5.7	%
Acquisitions - Europe	21	2,772	794.2		8.9	5.5	%
Total acquisitions	160	5,399	$	1,424.0	11.8	5.6	%
Properties under development (3)	53	1,868	131.3		17.3	5.7	%
Total (4)	213	7,267	$	1,555.3	12.3	5.6	%

(1)The initial average cash lease yield for a property is generally computed as estimated contractual first year cash net operating income, which, in the case of a net leased property, is equal to the aggregate cash base rent for the first full year of each lease, divided by the total cost of the property. Since it is possible that a client could default on the payment of contractual rent, we cannot provide assurance that the actual return on the funds invested will remain at the percentages listed above. Contractual net operating income used in the calculation of initial average cash yield includes approximately $4.3 million received as settlement credits for 16 properties as reimbursement of free rent periods for the three months ended March 31, 2022.

In the case of a property under development or expansion, the contractual lease rate is generally fixed such that rent varies based on the actual total investment in order to provide a fixed rate of return. When the lease does not provide for a fixed rate of return on a property under development or expansion, the initial weighted average cash lease yield is computed as follows: estimated cash net operating income (determined by the lease) for the first full year of each lease, divided by our projected total investment in the property, including land, construction and capitalized interest costs.

(3)Includes one U.K. development property that represents an investment of £1.7 million Sterling during the three months ended March 31, 2022, converted at the applicable exchange rate on the funding date.

(4)Our clients occupying the new properties are 85.4% retail and 14.6% industrial, based on rental revenue. Approximately 26% of the rental revenue generated from acquisitions during the three months ended March 31, 2022, is from investment grade rated clients, their subsidiaries or affiliated companies.


	Acquisitions - U.S.		Acquisitions - U.K.
Three months ended March 31, 2022	(USD)		(£ Sterling)
Land	$	203.5	£	208.7
Buildings and improvements	368.5		237.1
Lease intangible assets (1)	59.0		96.5
Other assets (2)	117.8		98.3
Lease intangible liabilities (3)	(8.4)		(46.4)
Other liabilities (4)	(12.5)		—
	$	727.9	£	594.2

(2) U.S. other assets consists of $99.6 million of financing receivables with above-market terms and $18.2 million of right-of-use assets accounted for as finance leases. U.K. other assets consists entirely of right-of-use assets accounted for as finance leases.

The properties acquired during the three months ended March 31, 2022, which were all accounted for as asset acquisitions, generated total revenues of $7.2 million and net income of $2.7 million during the three months ended March 31, 2022.


	Number of Properties	Leasable Square Feet (in thousands)	Investment ($ in millions)		Weighted Average Lease Term (Years)	Initial Average Cash Lease Yield (1)
Three months ended March 31, 2021 (1)
Acquisitions - U.S.	77	2,299	$	566.9	13.5	5.6	%
Acquisitions - Europe	12	933	403.0		10.6	4.9	%
Total acquisitions	89	3,232	$	969.9	12.4	5.3	%
Properties under development - U.S.	21	1,597	57.9		15.5	5.6	%
Total (2)	110	4,829	$	1,027.8	12.6	5.3	%

(2) Our clients occupying the new properties are 65.1% retail and 34.9% industrial, based on rental revenue. Approximately 39% of the rental revenue generated from acquisitions during the three months ended March 31, 2021, was from investment grade rated clients, their subsidiaries or affiliated companies.


	Acquisitions - U.S.		Acquisitions - U.K.
Three months ended March 31, 2021	(USD)		(£ Sterling)
Land (1)	$	208.0	£	117.3
Buildings and improvements	295.8		129.0
Lease intangible assets (2)	94.5		44.8
Other assets (3)	16.7		—
Lease intangible liabilities (4)	(1.4)		(0.9)
Other liabilities (5)	(21.6)		—
	$	592.0	£	290.2

The properties acquired during the three months ended March 31, 2021, which were all accounted for as asset acquisitions, generated total revenues of $5.1 million and net income of $2.0 million during the three months ended March 31, 2021.

During the three months ended March 31, 2022, we capitalized costs of $12.0 million on existing properties in our portfolio, consisting of $2.4 million for re-leasing costs, $13,000 for recurring capital expenditures, and $9.6 million for non-recurring building improvements. In comparison, during the three months ended March 31, 2021, we capitalized costs of $1.5 million on existing properties in our portfolio, consisting of $706,000 for re-leasing costs, $23,000 for recurring capital expenditures, and $769,000 for non-recurring building improvements.

Of the $1.56 billion we invested during the three months ended March 31, 2022, approximately $131.3 million related to development. Of the $1.42 billion invested outside of development, $969.5 million was used to acquire 52 properties with existing leases. In comparison, of the $1.03 billion we invested during the three months ended March 31, 2021, $57.9 million related to development. Of the $969.9 million invested outside of development, $856.8 million was used to acquire 68 properties with existing leases. The value of the in-place and above-market leases is recorded to lease intangible assets, net on our consolidated balance sheets, and the value of the below-market leases is recorded to lease intangible liabilities, net on our consolidated balance sheets.

The values of the in-place leases are amortized as depreciation and amortization expense. The amounts amortized to expense for all of our in-place leases, for the three months ended March 31, 2022, and 2021 were $160.1 million and $35.8 million, respectively.

The values of the above-market and below-market leases are amortized over the term of the respective leases, including any bargain renewal options, as an adjustment to rental revenue on our consolidated statements of income and comprehensive income. The amounts amortized as a net decrease to rental revenue for capitalized above-market and below-market leases for the three months ended March 31, 2022, and 2021 were $21.9 million and $12.4 million, respectively. If a lease was to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be recorded to revenue or expense, as appropriate.

The following table presents the estimated impact during the next five years and thereafter related to the amortization of the above-market and below-market lease intangibles and the amortization of the in-place lease intangibles at March 31, 2022 (dollars in thousands):


	Net increase (decrease) to rental revenue		Increase to amortization expense
2022	$	(39,868)	$	464,651
2023	(51,544)		534,554
2024	(45,665)		474,373
2025	(39,619)		406,059
2026	(31,334)		361,695
Thereafter	293,486		1,681,034
Totals	$	85,456	$	3,922,366


	Ownership % (1)		Number of Properties	Carrying Amount of Investment as of (2)				Equity in Income (2)
Investment	March 31, 2022			March 31, 2022		March 31, 2021		March 31, 2022		March 31, 2021
Industrial Partnerships	20	%	7	$	141,191	$	140,967	$	954	$	—

(1) Our ownership interest reflects legal ownership interest. Legal ownership may, at times, not equal our economic interest in the listed properties because of various provisions in certain entity agreements regarding capital contributions, distributions of cash flow based on capital account balances, allocations of profits and losses and payments of preferred returns. As a result, our actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with legal ownership interests.

(2) The total carrying amount of the investments was greater than the underlying equity in net assets by $100.4 million as of March 31, 2022. The difference relates to a step-up in fair value of the investment net assets acquired in connection with the merger with VEREIT on November 1, 2021. The step up in fair value was allocated to the individual investment assets and liabilities and is being amortized over the estimated useful life of the respective underlying tangible real estate assets, the lease term of the intangible real estate assets, and the remaining term of the mortgages payable. Prior to November 1, 2021, we did not own any unconsolidated entities.

The aggregate debt outstanding for unconsolidated entities was $431.8 million as of March 31, 2022, and December 31, 2021, all of which is non-recourse to us with limited customary exceptions which vary from loan to loan.

Each of us and our unconsolidated entity partners are subject to the provisions of the applicable entity agreements for our unconsolidated partnerships, which include provisions for when additional contributions may be required to fund certain cash shortfalls.