
	Number of Properties	Leasable Square Feet (in thousands)	Investment ($ in millions)		Weighted Average Lease Term (Years)	Initial Weighted Average Cash Lease Yield (1)
Nine months ended September 30, 2022 (2)
Acquisitions - U.S.	561	9,396	$	2,623.6	15.1	5.9	%
Acquisitions - Europe	78	8,904	2,058.6		8.9	5.8	%
Total acquisitions	639	18,300	$	4,682.2	12.5	5.9	%
Properties under development (3)	127	3,201	416.4		15.6	5.6	%
Total (4)	766	21,501	$	5,098.6	12.7	5.8	%

(1)The initial weighted 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 weighted average cash yield includes approximately $8.0 million received as settlement credits as reimbursement of free rent periods for the nine months ended September 30, 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.

(2)None of our investments during the nine months ended September 30, 2022, caused any one client to be 10% or more of our total assets at September 30, 2022.

(3)Includes five U.K. development properties that represent an investment of £36.6 million Sterling during the nine months ended September 30, 2022, converted at the applicable exchange rate on the funding date.

(4)Our clients occupying the new properties are 90.6% retail, 9.3% industrial and 0.1% other property types, based on rental revenue. Approximately 30% of the rental revenue generated from acquisitions during the nine months ended September 30, 2022, is from investment grade rated clients, their subsidiaries or affiliated companies.

The acquisitions during the nine months ended September 30, 2022, which had no associated contingent consideration, were allocated as follows (in millions):


	Acquisitions - U.S.		Acquisitions - U.K.		Acquisitions - Spain
Nine months ended September 30, 2022	(USD)		(£ Sterling)		(€ Euro)
Land (1)	$	729.4	£	595.7	€	63.2
Buildings and improvements	1,572.1		556.8		80.5
Lease intangible assets (2)	305.5		210.0		12.4
Other assets (3)	386.6		203.2		8.7
Lease intangible liabilities (4)	(72.3)		(54.3)		(1.1)
Other liabilities (5)	(21.8)		(2.4)		—
	$	2,899.5	£	1,509.0	€	163.7

(3) U.S. other assets consists of $353.8 million of financing receivables with above-market terms and $32.8 million of right-of-use assets accounted for as finance leases. U.K. other assets consists of £15.9 million of financing receivables with above-market terms, £184.9 million of right-of-use assets accounted for as finance leases and £2.4 million of right-of-use assets accounted for as operating leases. Spain other assets consists entirely of financing receivables with above-market terms.

(5) U.S. other liabilities consists of $15.3 million of deferred rent on certain below-market leases, $8.6 million of lease liabilities under financing leases, offset by $2.1 million of mortgage discounts. U.K. other liabilities consists entirely of lease liabilities under operating leases.

The properties acquired during the nine months ended September 30, 2022, which were all accounted for as asset acquisitions, generated total revenues of $94.5 million and net income of $35.3 million during the nine months ended September 30, 2022.


	Number of Properties	Leasable Square Feet (in thousands)	Investment ($ in millions)		Weighted Average Lease Term (Years)	Initial Weighted Average Cash Lease Yield (1)
Nine months ended September 30, 2021 (2)
Acquisitions - U.S.	415	9,227	$	2,073.1	13.8	5.5	%
Acquisitions - Europe	71	5,217	1,520.8		10.5	5.5	%
Total acquisitions	486	14,444	$	3,593.9	12.4	5.5	%
Properties under development - U.S. (3)	50	2,127	182.0		15.8	5.9	%
Total (4)	536	16,571	$	3,775.9	12.6	5.5	%

(1)Contractual net operating income used in the calculation of initial weighted average cash yield includes approximately $3.2 million received as settlement credits as reimbursement of free rent periods for the nine months ended September 30, 2021.

(2)None of our investments during the nine months ended September 30, 2021, caused any one client to be 10% or more of our total assets at September 30, 2021.

(3)Includes one U.K. development property that represents an investment of £4.7 million Sterling during the nine months ended September 30, 2021, converted at the applicable exchange rate on the funding date.

(4) Our clients occupying the new properties are 80.2% retail and 19.8% industrial, based on rental revenue. Approximately 43% of the rental revenue generated from acquisitions during the nine months ended September 30, 2021, was from investment grade rated clients, their subsidiaries or affiliated companies.

The acquisitions during the nine months ended September 30, 2021, which had no associated contingent consideration, were allocated as follows (in millions):


	Acquisitions - U.S.		Acquisitions - U.K.		Acquisitions - Spain
Nine months ended September 30, 2021	(USD)		(£ Sterling)		(€ Euro)
Land (1)	$	596.8	£	292.3	€	36.7
Buildings and improvements	991.0		529.6		36.3
Lease intangible assets (2)	349.8		179.7		23.2
Other assets (3)	372.6		25.9		—
Lease intangible liabilities (4)	(46.7)		(6.4)		—
Other liabilities (5)	(122.3)		(0.3)		—
	£	2,141.2	£	1,020.8	£	96.2

(3) U.S. other assets consists of $68.2 million of financing receivables with above-market terms, $39.1 million of right-of-use assets accounted for as finance leases, $5.8 million in investments in sales-type leases, and $259.5 million of right of use assets under ground leases. U.K. other assets consists of £4.3 million of financing receivables with above-market terms and £21.7 million of right-of-use assets accounted for as finance leases.

(5) U.S. other liabilities consists of $21.6 million of deferred rent on certain below-market leases and $100.7 million of lease liabilities under ground leases. U.K other liabilities consists entirely of a mortgage premium.

The properties acquired during the nine months ended September 30, 2021, which were all accounted for as asset acquisitions, generated total revenues of $67.4 million and net income of $12.9 million during the nine months ended September 30, 2021.

During the nine months ended September 30, 2022, we capitalized costs of $70.6 million on existing properties in our portfolio, consisting of $3.9 million for re-leasing costs, $3.0 million for recurring capital expenditures, and $63.7 million for non-recurring building improvements. In comparison, during the nine months ended September 30, 2021, we capitalized costs of $11.1 million on existing properties in our portfolio, consisting of $2.0 million for re-leasing costs, $416,000 for recurring capital expenditures, and $8.7 million for non-recurring building improvements.

Of the $5.1 billion we invested during the nine months ended September 30, 2022, approximately $416.4 million related to development. Of the $4.68 billion invested outside of development, $2.98 billion was used to acquire 341 properties with existing leases. In comparison, of the $3.78 billion we invested during the nine months ended September 30, 2021, $182.0 million related to development. Of the $3.59 billion invested outside of development, $3.17 billion was used to acquire 339 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 assets, 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 nine months ended September 30, 2022, and 2021 were $476.8 million and $123.7 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 in the 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 nine months ended September 30, 2022, and 2021 were $78.7 million and $34.0 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 September 30, 2022 (dollars in thousands):


	Net increase (decrease) to rental revenue		Increase to amortization expense
2022	$	(14,280)	$	153,081
2023	(56,378)		556,569
2024	(50,221)		495,063
2025	(43,921)		425,927
2026	(35,870)		379,544
Thereafter	309,356		1,794,299
Totals	$	108,686	$	3,804,483

The following table summarizes our properties sold during the periods indicated below, excluding our proportionate share of net proceeds from the disposition of properties by our unconsolidated industrial partnerships (dollars in millions):


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Number of properties	34		27		138		96
Net sales proceeds	$	142.2	$	31.9	$	414.4	$	123.5
Gain on sales of real estate	$	42.6	$	12.1	$	93.4	$	35.4


	Ownership % (1)		Number of Properties	Carrying Amount of Investment as of				Equity in income and impairment of investment in unconsolidated entities for the nine months ended(2)
Investment(2)	September 30, 2022			September 30, 2022		December 31, 2021		September 30, 2022		September 30, 2021
Industrial Partnerships	20	%	—	$	—	$	140,967	$	(6,335)	$	—

(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) All seven assets held by our Industrial Partnerships were sold during the three months ended September 30, 2022. As the portion of the net proceeds applied to our investment basis that we expect to receive at closing was less than our $121.4 million carrying amount of investment in unconsolidated entities, we recognized an other than temporary impairment of $7.8 million during the six months ended June 30, 2022. We recorded an additional impairment of $0.7 million during the three months ended September 30, 2022. The other than temporary impairments are included in 'Equity in income and impairment of investment in unconsolidated entities' in the consolidated statements of income and comprehensive income for the periods presented.

The aggregate debt outstanding for unconsolidated entities was $431.8 million as of December 31, 2021, all of which was non-recourse to us with limited customary exceptions which varied from loan to loan. There was no aggregate debt outstanding as of September 30, 2022, as all seven properties owned by our industrial partnerships were sold during the three months ended September 30, 2022, and the debt underlying each of the seven properties was either defeased or prepaid in connection with the sales.

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