Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT PROPERTIES

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INVESTMENT PROPERTIES
 9 Months Ended
Sep. 30, 2021
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 6 Warehouses located across 37 U.S. states and Puerto Rico. The January 30, 2021 balance sheet reflects the allocation of fair value to the assets and liabilities that existed on the Effective Date and emergence from bankruptcy.
The following table summarizes the allocated fair value by property type as of the Effective Date:

Property Type Ownership
Square
Footage
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.
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 September 30, 2021, excluding the Retail Property classified as held for sale:
Period from October 1 to December 31, 2021 2022 2023 2024 2025 Thereafter Total
Amortization of:
Above market lease intangibles (a) $ 2,087  $ 8,347  $ 8,347  $ 8,347  $ 8,347  $ 125,204  $ 160,679 
In-place lease intangibles (a) 1,696  6,787  6,787  6,787  6,787  101,801  130,645 
Lease intangible assets, net (b) $ 3,783  $ 15,134  $ 15,134  $ 15,134  $ 15,134  $ 227,005  $ 291,324 
Below market lease intangibles (a) $ 1,743  $ 6,974  $ 6,974  $ 6,974  $ 6,974  $ 104,610  $ 134,249 
Lease intangible liabilities, net (b) $ 1,743  $ 6,974  $ 6,974  $ 6,974  $ 6,974  $ 104,610  $ 134,249 

(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 $10,219 and $5,246 of accumulated amortization, respectively, as of September 30, 2021.

Amortization expense pertaining to in-place lease intangibles was $1,768 for the three months ended September 30, 2021 and $4,823 from the Effective Date to September 30, 2021.

Amortization pertaining to above market lease intangibles of $2,087 for the three months ended September 30, 2021 and $5,606 from the Effective Date to September 30, 2021, was recorded as a reduction to “Lease income” in the accompanying consolidated statements of operations. Amortization pertaining to below market lease intangibles of $2,003 for the three months ended September 30, 2021 and $5,521 from the Effective Date to September 30, 2021, was recorded as an increase to “Lease income” in the accompanying consolidated statements of operations.
Dispositions

During the Reporting Period, the Trust sold five Retail Properties for proceeds of $149,898, which is net of sales and closing costs, and the Trust recorded a net gain on sales of investment properties of $42,007.

The following table summarizes the disposition activity from the Effective Date to September 30, 2021:

Sale Date Location Property Type Ownership Square Footage Gross Sales Proceeds Aggregate Proceeds, Net Gain
7/9/21 San Diego, CA Retail Ground Leasehold 269  14,750  14,523  — 
7/29/21 Lone Tree, CO Retail Fee Simple 151  7,000  6,773  464 
7/29/21 Frisco, TX Retail Fee Simple 164  10,500  10,300  288 
9/14/21 San Bruno, CA Retail Fee Simple 223  105,250  99,991  38,544 
9/30/21 Carson, CA Retail Fee Simple 201  19,000  18,311  2,711 
1,008  156,500  149,898  42,007 
The dispositions completed from the Effective Date to September 30, 2021 did not qualify for discontinued operations treatment and are not considered individually significant.