Note 3 - Real Estate

3 Months Ended

Mar. 31, 2020

Note 3 – Real Estate

2020 Real Estate Acquisitions

On January 10, 2020, the Company completed the acquisition of the fee-simple interest in the land that the Cromwell Field Shopping Center is located on under a leasehold interest for approximately $2.3 million, which includes less than $0.1 million of transaction costs that were capitalized since this transaction was accounted for as an asset acquisition. Upon acquisition of the land, the Company leased the land to the owner of the Cromwell Field Shopping Center pursuant to a ground lease. Once the Company completes the Merger to acquire the Cromwell Field Shopping Center leasehold interest, the ground lease will be terminated. The Company has a mortgage on the land of approximately $1.4 million.

On July 2, 2020, the Company completed the Merger to acquire Lamar Station Plaza East. Total consideration for the property included the issuance of 884,143 common shares, the payment of approximately $0.2 million in cash to the prior investors and approximately $0.1 million of transaction costs that were capitalized since the transaction was accounted for as an asset acquisition. The Company assumed a $2.5 million mortgage on the property and, on July 2, 2020, entered into a loan modification agreement that increased the maximum principal amount available under the assumed loan agreement to $4.1 million. Additional discussion of this loan modification agreement is included in Note 5 under the heading “—Forbearance Agreements and Debt Amendments”.

Concentrations of Credit Risks

The following table contains information regarding the geographic concentration of the properties in the Company’s portfolio as of March 31, 2020, which includes rental income for the three months ended March 31, 2020 (dollars in thousands). The Company did not own any properties and therefore did not have any rental income during the three months ended March 31, 2019.

Location	Number of Properties	Gross Real Estate Assets at March 31, 2020		Percentage of Total Real Estate Assets at March 31, 2020			Rental income for the three months ended March 31, 2020
Maryland⁽¹⁾	4	$	73,845		42.0	%	$	2,154
Virginia	4		67,150		38.1	%		1,228
Pennsylvania	1		26,659		15.1	%		594
Washington D.C.	1		8,393		4.8	%		170
	10	$	176,047		100.0	%	$	4,146

⁽¹⁾	Rental income for the three months ended March 31, 2020 includes less than $0.1 million of ground rental revenue under the ground lease for the parcel of land acquired in January 2020 as described above under the heading “—2020 Real Estate Acquisitions”.