Annual report pursuant to Section 13 and 15(d)

INVESTMENT PROPERTIES

v3.22.4
INVESTMENT PROPERTIES
 12 Months Ended
Dec. 31, 2022
Real Estate [Abstract]  
INVESTMENT PROPERTIES INVESTMENT PROPERTIES
As of the Effective Date, the Trust obtained control of a real estate portfolio that consisted of 160 Retail Properties and six Warehouses located across 37 U.S. states and Puerto Rico.

The following table summarizes the recorded fair value by property type as of the Effective Date:

Property Type Ownership
Square Footage (unaudited)
Fair Value
Retail Fee Simple 18,326 $ 1,234,100 
Ground Leasehold 3,386 203,208 
Warehouse Fee Simple 10,109 497,900 
  31,821 $ 1,935,208 

As of the Effective Date, the weighted average amortization period for lease intangible assets and lease intangible liabilities was 19.9 years.

As of December 31, 2022, the Trust's real estate portfolio consisted of 133 Retail Properties across 36 U.S. states and Puerto Rico.
The following table presents the amortization during the next five years and thereafter related to the lease intangible assets and liabilities for properties owned as of December 31, 2022:
2023 2024 2025 2026 2027 Thereafter Total
Amortization of:
Above market lease intangibles (a) $ 7,827  $ 7,827  $ 7,827  $ 7,827  $ 7,827  $ 101,748  $ 140,883 
In-place lease intangibles (a) 4,869  4,869  4,869  4,869  4,869  63,301  87,646 
Lease intangible assets, net (b) $ 12,696  $ 12,696  $ 12,696  $ 12,696  $ 12,696  $ 165,049  $ 228,529 
Below market lease intangibles (a) $ 5,662  $ 5,662  $ 5,662  $ 5,662  $ 5,662  $ 73,610  $ 101,920 
Lease intangible liabilities, net (b) $ 5,662  $ 5,662  $ 5,662  $ 5,662  $ 5,662  $ 73,610  $ 101,920 

(a) Represents the portion of the leases in which the Trust is the lessor. The amortization of above and below market lease intangibles is recorded as an adjustment to lease income and the amortization of in-place lease intangibles is recorded to depreciation and amortization expense.

(b) Lease intangible assets, net and lease intangible liabilities, net are presented net of $24,334 and $10,853 of accumulated amortization, respectively, as of December 31, 2022. Lease intangible assets, net and lease intangible liabilities, net are presented net of $12,283 and $6,116 of accumulated amortization, respectively, as of December 31, 2021.

As of the December 31, 2022 and 2021, the weighted average amortization period for lease intangible assets and lease intangible liabilities was 18.0 years and 19.0 years, respectively.

For the year ended December 31, 2022 and for the period from the Effective Date to December 31, 2021, amortization expense pertaining to in-place lease intangibles was $5,227 and $6,397, respectively.

For the year ended December 31, 2022 and for the period from the Effective Date to December 31, 2021, amortization pertaining to above market lease intangibles of $7,975 and $7,637, respectively, was recorded as a reduction to “Lease income” in the accompanying consolidated statements of operations.

For the year ended December 31, 2022 and for the period from the Effective Date to December 31, 2021, amortization pertaining to below market lease intangibles of $6,284 and $7,232 , was recorded as an increase to “Lease income” in the accompanying consolidated statements of operations.
Dispositions

The following table summarizes dispositions for the year ended December 31, 2022:

Sale Date Location Property Type Ownership Square Footage (unaudited) Gross Sales Proceeds Aggregate Proceeds, Net Gain (Loss)
1/6/22 Culver City, CA Retail Fee Simple 204  $ 22,000  $ 20,961  $ 3,651 
7/20/22 Pleasanton, CA Retail Fee Simple 156  $ 16,000  $ 15,799  $ 4,795 
7/25/22 Franklin, TN Retail Fee Simple 104  $ 5,650  $ 5,565  $ 273 
8/25/22 Nashua, NH Retail Fee Simple 105  $ 6,550  $ 6,454  $ 972 
8/29/22 Sterling, VA Retail Fee Simple 126  $ 5,650  $ 5,546  $ (416)
9/9/22 Five Property Portfolio (a) Retail Fee Simple 857  $ 53,000  $ 51,379  $ (1,232)
10/5/22 Westminster, CA Retail Ground Lease 153  $ 23,000  $ 22,613  $ 7,528 
11/30/22 Austin, TX Retail Fee Simple 144  $ 13,200  $ 12,777  $ 3,672 
12/6/22 Lafayette, LA Retail Fee Simple 105  $ 8,100  $ 7,939  $ 2,034 
12/15/22 The Woodlands, TX Retail Fee Simple 146  $ 7,760  $ 7,219  $ 449 
2,100  $ 160,910  $ 156,252  $ 21,726 
(a) Portfolio comprised of five Retail Properties located in Annapolis, MD, Springfield, VA, Fairfax, VA, Newark, DE and Columbia, MD.

The following table summarizes dispositions for the period from the Effective Date to December 31, 2021:

Sale Date Location Property Type Ownership Square Footage (unaudited) Gross Sales Proceeds Aggregate Proceeds, Net Gain (Loss)
7/9/21 San Diego, CA Retail Ground Lease 269  $ 14,750  $ 14,523  $ —  (c)
7/29/21 Lone Tree, CO Retail Fee Simple 151  7,000  6,773  466 
7/29/21 Frisco, TX Retail Fee Simple 164  10,500  10,300  291 
9/14/21 San Bruno, CA Retail Fee Simple 223  105,250  99,991  38,543 
9/30/21 Carson, CA Retail Fee Simple 201  19,000  18,310  2,675 
11/3/21 Houston, TX Retail Fee Simple 140  12,000  11,788  2,489 
11/5/21 San Antonio, TX Retail Fee Simple 104  12,500  12,057  3,148 
11/17/21 Phoenix, AZ Retail Fee Simple 159  7,000  6,896  1,236 
11/19/21 Texas Portfolio (a) Retail Fee Simple 325  20,600  20,192  936 
12/17/21 Distribution Center Portfolio (b) Warehouse Fee Simple 10,109  557,165  548,352  59,702 
12/23/21 Queens, NY Retail Fee Simple 204  40,500  38,785  —  (c)
12/29/21 Woodbury, MN Retail Fee Simple 82  5,750  5,680  210 
12,131  $ 812,015  $ 793,647  $ 109,696 
(a) Portfolio comprised of three Retail Properties located in Fairview, TX, Flower Mound, TX, and Round Rock, TX.
(b) Portfolio comprised of six Warehouses located in Statesville, NC, Columbus, OH, Lenexa, KS, Reno, NV, Haslet, TX, and Atlanta, GA.
(c) Prior to disposition, these Properties were remeasured to fair value and a provision for impairment of $1,951 was recognized (See Note 5).

The dispositions completed during the year ended December 31, 2022 and the period from the Effective Date to December 31, 2021 did not qualify for discontinued operations treatment.
Investment Properties Held for Sale

There were no properties classified as held for sale as of December 31, 2022. One Retail Property located in Culver City, CA was classified as held for sale as of December 31, 2021, with a carrying value of $17,091. On January 6, 2022, the Trust sold this Retail Property for a gross sales price of $22,000.

Real estate held for sale consisted of the following at December 31, 2021:
December 31, 2021
Land and improvements $ 10,250 
Building and other improvements 7,066
Less: accumulated depreciation (193)
Net investment properties 17,123
Accounts receivable 535
Lease intangible assets, net 1,391
Other assets 166
Assets associated with investment properties held for sale 19,215
Accounts payable and accrued expenses 43
Lease intangible liabilities, net 1,979
Other liabilities 102
Liabilities associated with investment properties held for sale $ 2,124