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STORE CAPITAL LLC - Annual Report: 2015 (Form 10-K)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-K

 

 

 

 

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2015 

or

 

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                      to                     .  

Commission File No. 001-36739  

 

STORE CAPITAL CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

 

 

Maryland

 

45-2280254

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

8501 East Princess Drive, Suite 190, Scottsdale, Arizona 85255

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (480) 256-1100

Securities Registered Pursuant to Section 12(b) of the Act:

 

 

 

 

Title of Each Class

 

Name of Each Exchange on Which Registered

Common Stock, $0.01 par value

 

New York Stock Exchange

 

Securities Registered Pursuant to Section 12(g) of the Act: None

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes      No   

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes      No   

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No   

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes      No   

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

 

Large accelerated filer

 

Accelerated filer

 

 

 

 

Non-accelerated filer

  

Smaller reporting company

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No   

 

As of June 30, 2015 (the last business day of the registrant’s most recently completed second fiscal quarter), the aggregate market value of the Registrant’s shares of common stock, $0.01 par value, held by non-affiliates of the Registrant, was $1.1 billion based on the last reported sale price of $20.10 per share on the New York Stock Exchange on June 30, 2015.

 

As of February 22, 2016, there were 140,879,389 shares of the registrant’s common stock outstanding.

 

Documents Incorporated by Reference

 

Portions of Part III of this Form 10-K are incorporated by reference from the registrant’s definitive proxy statement for its 2016 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission no later than 120 days after the end of the registrant’s fiscal year.

 

 

 


 

Table of Contents

TABLE OF CONTENTS

 

 

    

 

    

Page
Number

PART I 

 

 

 

 

 

 

 

Item 1. 

 

Business

 

1

Item 1A. 

 

Risk Factors

 

11

Item 1B. 

 

Unresolved Staff Comments

 

32

Item 2. 

 

Properties

 

32

Item 3. 

 

Legal Proceedings

 

35

Item 4. 

 

Mine Safety Disclosures

 

35

 

 

 

 

 

PART II 

 

 

 

 

 

 

 

Item 5. 

 

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 

36

Item 6. 

 

Selected Financial Data

 

38

Item 7. 

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

39

Item 7A. 

 

Quantitative and Qualitative Disclosures About Market Risk

 

54

Item 8. 

 

Financial Statements and Supplementary Data

 

56

Item 9. 

 

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 

84

Item 9A. 

 

Controls and Procedures

 

84

Item 9B. 

 

Other Information

 

84

 

 

 

 

 

PART III 

 

 

 

 

 

 

 

Item 10. 

 

Directors, Executive Officers and Corporate Governance

 

84

Item 11. 

 

Executive Compensation

 

85

Item 12. 

 

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

85

Item 13. 

 

Certain Relationships and Related Transactions, and Director Independence

 

85

Item 14. 

 

Principal Accountant Fees and Services

 

85

 

 

 

 

 

PART IV 

 

 

 

 

 

 

 

Item 15. 

 

Exhibits and Financial Statement Schedules

 

86

 

 

 

 

 


 

Table of Contents

PART I

In this Annual Report on Form 10-K, or this Annual Report, we refer to STORE Capital Corporation, a Maryland corporation, as “we,” “us,” “our,” “the Company” or “S|T|O|R|E, unless we specifically state otherwise or the context indicates otherwise.

Forward-Looking Statements

This Annual Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act.  Such forward-looking statements include, without limitation, statements concerning our business and growth strategies, investment, financing and leasing activities and trends in our business, including trends in the market for long-term, triple-net leases of freestanding, single-tenant properties.  Words such as “expects,” “anticipates,” “intends,” “plans,” “likely,” “will,” “believes,” “seeks,” “estimates,” and variations of such words and similar expressions are intended to identify such forward-looking statements.  Such statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from the results of operations or plans expressed or implied by such forward-looking statements.  Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such statements included in this Annual Report may not prove to be accurate.  In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved.  For a further discussion of these and other factors that could impact future results, performance or transactions, see “Item 1A. Risk Factors” elsewhere in this Annual Report.

Forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this Annual Report, and we expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in our expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required by law.

Item 1.  BUSINESS

General

S|T|O|R|E is an internally managed net‑lease real estate investment trust, or REIT, that is the leader in the acquisition, investment and management of Single Tenant Operational Real Estate, or STORE Properties, which is our target market and the inspiration for our name. A STORE Property is a real property location at which a company operates its business and generates sales and profits, which makes the location a profit center and, therefore, fundamentally important to that business.

S|T|O|R|E continues the investment activities of our senior leadership team, which has been investing in single‑tenant operational real estate for over 35 years.  We are one of the largest and fastest‑growing net‑lease REITs, and own a large, well‑diversified portfolio that consists of investments in 1,325 property locations operated by more than 300 customers across 46 states as of December 31, 2015.  Our customers operate across a wide variety of industries within the service, retail and industrial sectors of the U.S. economy, with restaurants, movie theaters, health clubs, early childhood education centers and furniture stores representing the top industries in our portfolio.

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The following table depicts the growth in our investment portfolio since our inception in 2011.

Our Total Investment Portfolio at Quarter End

 

Picture 1

 

We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, which we refer to in this Annual Report as the “Code,” commencing with our initial taxable year ended December 31, 2011. To continue to qualify as a REIT, we must continue to meet certain tests which, among other things, generally require that our assets consist primarily of real estate assets, our income be derived primarily from real estate assets, and that we distribute at least 90% of our REIT taxable income (other than our net capital gains) to our stockholders annually. 

Prior to December 7, 2015, we were a “controlled company” (within the meaning of the rules of the New York Stock Exchange, or NYSE) because a large portion of our common stock was owned indirectly by certain investment funds managed by Oaktree Capital Management, L.P., or Oaktree.  As of the closing of an equity offering of our common stock on December 7, 2015, Oaktree’s indirect ownership of the outstanding shares of our common stock fell to just under 50%.  As a result, we no longer are a controlled company and no longer qualify for exemptions from certain corporate governance requirements. Subsequent to December 31, 2015, Oaktree’s indirect ownership of the outstanding shares of our common stock fell to just under 40% as a result of a secondary offering by STORE Holding Company, LLC, or STORE Holding, the entity through which Oaktree owns its indirect interest in our common stock. Oaktree is a global investment management firm specializing in alternative investments with approximately $97 billion in assets under management as of December 31, 2015.

2015 Highlights

·

During the year ended December 31, 2015, we invested over $1.2 billion in 394 property locations.

·

For the year ended December 31, 2015, we declared dividends totaling $1.04 per share of common stock to our stockholders. In the third quarter of 2015, we raised our quarterly dividend 8% from our previous quarterly dividend amount.

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·

As of December 31, 2015, our total gross investment in real estate had reached approximately $4.0 billion, of which $1.6 billion is unencumbered.  Our long-term outstanding debt totaled $1.8 billion at December 31, 2015, up from $1.3 billion at the end of 2014; approximately $1.6 billion of our total long-term debt is secured debt and approximately $2.4 billion of our investment portfolio serves as collateral for these outstanding borrowings.

·

In April 2015, we issued our sixth series of A+ rated STORE Master Funding net-lease mortgage notes payable, aggregating $365 million in principal amount. 

·

During 2015, we received a BBB- rating from Fitch Ratings, Inc. and, in November 2015, we closed on our inaugural offering of investment-grade senior unsecured notes in an aggregate principal amount of $175 million.

·

During 2015, we completed two follow-on public offerings in which we issued and sold an aggregate of 25,562,500 shares of our common stock and STORE Holding sold an aggregate of 11,812,500 shares from its holdings of our common stock. We received proceeds aggregating $521 million, net of underwriters’ discounts and offering expenses, in connection with these offerings.

·

On December 1, 2015, we filed a “shelf” registration statement with the Securities and Exchange Commission, which allows us to sell from time to time various securities, including additional shares of our common stock and debt securities.  At the same time we filed our shelf registration statement, we also filed a shelf registration statement on behalf of our principal stockholder, STORE Holding, which allows it to sell shares of our common stock owned by it from time to time.  STORE Holding is owned, directly or indirectly, by certain investment funds managed by Oaktree.

Our Target Market

We are the leader in providing real estate financing solutions principally to middle‑market and larger businesses that own STORE Properties and operate within the broad-based service, retail and industrial sectors of the U.S. economy.  Our net‑lease solutions are designed to provide a long‑term, lower‑cost way to improve our customers capital structures and, thus, be a preferred alternative to real estate ownership.    We estimate the market for STORE Properties to exceed $2.5 trillion in market value and to include more than 1.6 million properties.

We define middle‑market companies as those having approximate annual gross revenues of between $20 million and $300 million, although some of our customers have annual revenues substantially in excess of $300 million.  Most of our customers do not have credit ratings, while some have ratings from rating agencies that service insurance companies or fixed‑income investors.  Most of these non-rated companies either prefer to be unrated or are simply too small to issue debt rated by a nationally recognized rating agency in a cost‑efficient manner.

The financing marketplace for STORE Properties is highly fragmented, with few participants addressing the long‑term capital needs of middle‑market and larger non-rated companies.  While we believe our net‑lease financing solutions can add value to a wide variety of companies, we believe the largest underserved market and, therefore, our greatest opportunity is non-rated, bank‑dependent, middle‑market and larger companies that generally have less access to efficient sources of long‑term capital.

We believe the demand for our net‑lease solutions is even greater today as a result of the current bank regulatory environment.  In our view, the increased scrutiny and regulation of the banking industry over the past several years in response to the collapse of the housing and mortgage industries from 2007 to 2009, particularly with the passage of the Dodd‑Frank Wall Street Reform and Consumer Protection Act of 2010, or the Dodd-Frank Act, and the Basel Accords issued by the Basel Committee on Banking Supervision, have made commercial banks even less responsive to the long‑term capital needs of the middle‑market companies we target.  These companies have historically depended on commercial banks for much of their financing. 

S|T|O|R|E was formed to capitalize on this market opportunity and address the capital needs of middle‑market and larger non-rated companies by offering them a superior alternative to financing their profit‑center real estate with traditional mortgage or bank debt and their own equity.  We believe our opportunities include both gaining market

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share from the fragmented network of net‑lease capital providers and growing the market by creating demand for our net‑lease solutions that meet the long‑term real estate capital needs of these companies.

Our target market of STORE Properties is divided into three primary sectors and various sub-sectors.  The primary sectors and their proportion of our target market are service at 47%, retail at 37% and industrial at 16%.  The sub-sectors included within each primary sector are summarized in the table below.

Service

    

Retail

    

Industrial

Restaurants

 

Big box retail

 

Industrial profit-centers

Education

 

Specialty retail

 

Light manufacturing

Fitness centers

 

Grocery

 

 

Transportation

 

Drug stores

 

 

Automotive services

 

Automotive (new and used)

 

 

Family entertainment

 

 

 

 

 

Within the sub‑sectors, the market for STORE Properties is further subdivided into a wide variety of industries within the service, retail and industrial sectors, such as:

Automotive parts stores

    

Movie theaters

Cold storage facilities

 

Office supplies retailers

Department stores

 

Pet care facilities

Discount stores

 

Rental centers

Early childhood education

 

Secondary education

Furniture stores

 

Supermarkets

Entertainment facilities

 

Truck stops

Fast food restaurants

 

Wholesale clubs

Full service restaurants

 

 

 

Many of these industries are represented within our diverse property portfolio.

Our Asset Class:  STORE Properties

Single Tenant Operational Real Estate, or STORE Properties, is a unique asset class that inspired the formation of S|T|O|R|E and our company name.  STORE Properties are profit-center real estate locations on which our tenants conduct their businesses and generate their revenues and profits.  The defining characteristic of STORE Properties is the number of payment sources:  STORE Properties have the following three payment sources, whereas all other commercial real estate assets have just two.

·

Unit-Level Profitability:  STORE Properties are distinguished by the primary source of their rent payment, which comes directly from the profits produced by the business operations at the real estate locations we own, which we refer to as “unit-level profitability.”  While it is a common perception that the tenant is the primary source of the rent payment (as distinguished from the business unit operating at the leased site), the historic pattern we have observed is tenants in corporate insolvencies vacating unprofitable locations and retaining profitable ones, which indicates that the profitability of the location is the main indicator of payment.  Because tenants historically retain profitable locations and vacate unprofitable ones in the event of insolvency, it is fundamentally important for S|T|O|R|E to collect and review the unit-level financial statements of our tenants at our real estate locations, which is a key component of our business model.  As of December 31, 2015, we receive unit-level financial statements on approximately 95% of the properties in our portfolio (based on annualized base rent and interest).  Without having access to unit-level financial reporting for the business activities conducted on the properties we own, we would not have an accurate assessment of the essential nature of our real estate to our customer’s business; without this, we would be speculating about the quality of the most important, and primary, payment source.

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·

Tenant Credit Quality.  In addition to the unit-level profitability of the business on the real estate we own, credit quality serves as an additional, but not primary, source of payment.  The tenant’s credit can become the primary payment source if our unit is not profitable and the tenant is required to divert cash flows from its other units or other resources to pay our rents.  However, we have seen that tenant credit quality tends to be subject to greater volatility over time than unit-level profitability, because tenant credit quality is not only a function of the unit-level profitability of the operations at our locations, but of the profitability of potentially many other existing and new assets owned and operated by our tenant.  Corporate financial health is also a function of many other decisions, such as capital structure or growth strategies, as well as conditions in the marketplace for the tenant’s products and services, which can change over time and which may have profound impacts on tenant creditworthiness. 

·

Real Estate Residual Value.  The other payment source that is common to all real estate investments (and is the third of our three payment sources) is the residual value of the underlying real estate, which gives us the opportunity to receive rents from other substitute tenants in the event our asset becomes vacant.  For S|T|O|R|E, this means more than just looking at broad lease rate and transaction comparables.  Studies we have done underscore the importance of investing in properties at or below their as-new replacement costs.  We also review the local markets in which our properties are located and seek to have rents that are at or below prevailing market rents on a per square foot basis for comparable properties.  Taking these steps protects S|T|O|R|E and our customers by making it easier for us to assign, sell or sublease properties that our customers may want to sell, reposition or vacate as part of their capital efficiency strategy. 

The following diagram illustrates the three sources of payment that are common among STORE Properties:

Picture 1

The S|T|O|R|E Credit Pyramid

 

The investment, management and capitalization competencies we have developed over more than 35 years, like our credit pyramid, arise from the distinctive characteristics of the large asset class of STORE Properties we address.

Our Competitive Strengths

Our objective is to build upon our market‑leading platform for the acquisition, investment and management of STORE Properties that simultaneously creates value for stockholders and customers through our five corporate

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competencies.  Each member of our senior leadership team is primarily responsible for one of our five competencies, which are described below:

·

Investment Origination.  S|T|O|R|E was formed to fill a need for efficient long-term real estate capital for middle-market and larger customers. We do this principally by creating lease contracts that address our customers’ needs and create strong alignments of interest that benefit our stockholders. Our solutions-oriented approach strives to create superior value for our customers over other financial options they may have to capitalize their businesses.  As a result, more than 75% of our investments, by dollar volume, have been originated by our internal origination team through direct customer relationships. By creating demand for our services, and not simply taking market share or aggregating assets, we have maintained a large pipeline of investment opportunities, which we estimate to be $7.4 billion as of December 31, 2015.  Our objective is to be both selective and achieve higher rates of return than our stockholders could achieve if they sought to acquire profit-center real estate on their own. 

·

Investment Underwriting.  Our methods of risk evaluation have been developed by our senior leadership team over 35 years, with investments of more than $13 billion and over 8,500 STORE Property assets.  Our investment underwriting approach centers on evaluations of unit-level and corporate-level financial performance, together with detailed real estate valuation assessments.  These three areas represent our credit pyramid, which is reflective of the characteristics of the STORE Property asset class.  At S|T|O|R|E, we have combined our underwriting approach with our portfolio management systems to capture tenant credit ratings and lease contract ratings (referred to as a STORE Score) as tools to monitor ongoing portfolio performance. Our collective experience has enabled us to develop sophisticated risk evaluation tools and insights that are designed to offer greater risk-adjusted investment results than those available to most real estate investors.

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The following table compares our tenant credit ratings (determined using Moody’s RiskCalc) with the STORE Score:

C:\Users\kleec\Desktop\Untitled.jpg

·

Investment Documentation.  We believe lease contracts, and not tenant credit quality, are the principal determinants of investment risk. Part of contract creation is embodied in the investment underwriting process, which focuses on the prices we pay for the real estate; the unit-level profitability of the businesses operated on our real estate; the rents and escalations we receive; and the support offered to the investment by tenant credit quality.  These factors are ultimately incorporated into our contracts and supported by third party diligence, including appraisals, property condition reports, environmental reports and other diligence. Finally, the contracts we create foster alignments of interest through the use of features such as master leases and bankruptcy-remote investment structures. Altogether, our documentation process, like our approach to underwriting, has evolved over decades and, we believe, offers investors in S|T|O|R|E a value that most could not create for themselves.

·

Portfolio Management.  Net-lease real estate investment portfolios require active management to realize superior risk-adjusted rates of return.  S|T|O|R|E represents our senior leadership team’s third, and most highly developed and scalable, servicing platform.  We are virtually paperless and have access to detailed information on our large diversified portfolio from practically anywhere and anytime.  For over 35 years, our senior leadership team has learned how to monitor unit-level profit and loss statements, tenant corporate financial statements and the timely payment of property taxes and insurance in order to gauge portfolio quality.  Having such systems helps us effectively monitor and reduce tenant credit risk at the property level, which, in turn, allows us to place greater focus on the minority of investments that may have a higher risk potential to experience future problems.  We believe these systems, when combined with our high degree of financial and operating flexibility, allow us to realize better stockholder risk-adjusted rates of return on our invested capital.

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·

Financial Reporting and Treasury.  We consider and evaluate our corporate financing strategies with the same emphasis as our real estate investment strategies.  Under our financing strategy, borrowings must prudently improve stockholder returns; they must be structured to provide portfolio flexibility and minimize our exposure to changes in long-term interest rates; they must be structured to optimize our cost of financing that will enhance investor rates of return; and finally, a liability strategy should contribute to corporate governance by enhancing corporate flexibility.  Our senior leadership team has extensive experience with diverse liability strategies. Today, we are one of the few REITs to employ our own A+ rated borrowing source.  Our senior leadership team developed our master funding conduit strategy in 2005, which is ideally suited to finance diverse portfolios of profit-center real estate, such as ours. The strategies we implement are designed to add value to our investors by offering a more efficient means to finance real estate than they could otherwise do on their own.  At the same time, the flexibility we derive from our liability strategies can also result in important flexibility for our customers.

Our Business and Growth Strategies

Our objective is to continue to create stockholder value through sustained investment and management activities designed to grow distributable cash flows and deliver attractive risk-adjusted rates of return from a growing, diverse portfolio of STORE Properties. To accomplish this, our principal business and growth strategies are as follows:

·

Continue to Focus on Middle‑Market Companies Operating STORE Properties.  We believe we have selected the most attractive investment opportunity within the net‑lease market, STORE Properties, and targeted the most attractive customer type within that market, middle‑market and larger non-rated companies.  We focus on this market given its strong fundamentals and outsized growth potential.  Within the net‑lease market for STORE Properties, our value proposition is most compelling to middle‑market, bank‑dependent companies who are not rated by any nationally recognized rating agency due to their size or capital markets preferences, but who have strong credit metrics and operate within broad-based industries having the potential for sustained relevance.   

·

Realize Stable Income and Internal Growth.  We seek to make investments that generate strong and stable current income as a result of the difference, or spread, between the rate we earn on our assets and the rate we pay on our liabilities (primarily our long‑term debt).  We augment that income with internal growth.  We seek to realize superior internal growth through a combination of (1) a target dividend payout ratio that permits a level of free cash flow reinvestment and (2) cash generated from the estimated 1.7% weighted average annual escalation of base rent and interest in our portfolio (as of December 31,  2015, as if the escalations in all of our leases were expressed on an annual basis).  We benefit from contractual rent escalations, as approximately 98% of our leases and loans (by annualized base rent and interest) have escalations that are either fixed (24%) or based on the Consumer Price Index, or CPI (74%).    We believe this will enable strong dividend growth without relying exclusively on future common stock issuances to fund new portfolio investments. 

·

Capitalize on Direct Origination Capabilities for External Growth.  As the market leader in STORE Property investment originations, we plan to complement our internal growth with continued new investments that are funded through future equity issuances and borrowings to expand our platform and raise investor cash flows.    

·

Actively Manage our Balance Sheet to Maximize Capital Efficiency.  We seek to select funding sources designed to lock in long‑term investment spreads and limit interest rate sensitivity.  We also seek to maintain a prudent balance between the use of debt (which includes our own STORE Master Funding program, commercial mortgage-backed securities borrowings, insurance borrowings, bank borrowings and possibly preferred stock issuances) and equity financing.  In addition, during 2015, we received a BBB- rating from Fitch Ratings, Inc. and issued our first investment-grade senior unsecured term notes in November 2015; we expect that our ability to access this additional form of long-term debt will continue to enhance our ability to efficiently manage our capital structure in the future. As of December 31, 2015, our secured and unsecured long‑term debt had an aggregate outstanding principal balance of $1.8 billion, a weighted average maturity of 6.8 years and a weighted average interest rate of 4.7%.  On an annualized

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basis, our fourth quarter adjusted debt to earnings before interest, taxes, depreciation and amortization, or EBITDA, was 6x and, as we move forward, we are targeting a ratio of between 6x and 7x.

·

Increase our portfolio diversity.  As of December 31, 2015, we had invested approximately $4.0 billion in 1,325 property locations, substantially all of which are profit centers for our customers.  Our portfolio is highly diversified with over 300 customers operating across more than 300 different brand names, or business concepts, across 46 states and over 80 industry groups.  None of our customers represented more than 3% of our portfolio as of December 31, 2015, based on annualized base rent and interest.  Our portfolio’s diversity decreases the impact on us of an adverse event affecting a specific customer, industry or region, thereby increasing the stability of our cash flows.  We expect that additional acquisitions in the future will further increase the diversity of our portfolio and, from time to time, we may sell properties in our portfolio to improve overall portfolio credit quality or diversity.

Competition

We face competition in the acquisition and financing of STORE Properties from numerous investors, including but not limited to traded and non‑traded public REITs, private equity investors and other institutional investment funds, as well as private wealth management advisory firms that serve high net worth investors (also known as family offices), some of which have greater financial resources than we do, a greater ability to borrow funds to acquire properties and the willingness to accept more risk.  We also believe that competition for real estate financing comes from middle‑market business owners themselves, many of whom have had a historic preference to own, rather than lease, the real estate they use in their businesses.  The competition we face may increase the demand for STORE Properties and, therefore, reduce the number of suitable acquisition opportunities available to us or increase the price we must pay to acquire STORE Properties.  This competition will increase if investments in real estate become more attractive relative to other forms of investment.

Employees

As of December 31, 2015, we had 60 full‑time employees, all of whom are located in our single office in Scottsdale, Arizona. None of our employees are subject to a collective bargaining agreement.  We consider our employee relations to be good.

Principal Executive Offices

Our principal offices are located at 8501 East Princess Drive, Suite 190, Scottsdale, Arizona 85255.  We currently occupy approximately 14,500 square feet of space leased from an unaffiliated third party.  We believe that our offices are adequate for our present operations and that adequate additional space will be available in or around our current office location if needed in the future.

Insurance

Our leases and loan agreements typically require our tenants and borrowers to maintain insurance of the types and in the amounts that are usual and customary for similar commercial properties, including commercial general liability, fire and extended loss insurance provided by reputable companies, with commercially reasonable exclusions, deductibles and limits, all as verified by our independent insurance consultant.  

Separately, we purchase contingent liability insurance, in excess of our tenants’ and borrowers’ liability coverage, to provide us with additional security in the event of a catastrophic claim. Also, we purchase property coverage, on a case-by-case basis, where we believe such additional insurance is warranted.

Regulation

Our properties are subject to various laws and regulations, including regulations relating to fire and safety requirements, affirmative and negative covenants and, in some instances, common area obligations.  Our tenants and borrowers have primary responsibilities for compliance with these requirements pursuant to our lease and loan agreements.  We believe that each of our tenants and borrowers have the necessary permits and approvals to operate and

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conduct their businesses on our properties.

Environmental Matters

General.  All real property and the operations conducted on real property are subject to federal, state and local laws and regulations relating to human health and the environment. Certain of these laws and regulations may impose joint and several liability on certain statutory classes of persons, including owners or operators, for the costs of investigation or remediation of contaminated properties, regardless of fault or the legality of the original disposal.  These laws and regulations apply to past and present business operations of our tenants and borrowers and the use, storage, handling and contracting for recycling or disposal of hazardous substances or wastes.  Our tenants and borrowers are obligated to comply with environmental laws.  Our leases and loans typically impose obligations on our tenants and borrowers to indemnify us from all or most compliance costs we may experience as a result of the environmental conditions on our properties.  If a tenant or borrower fails to, or cannot, comply we may be required to pay such costs.  We are not aware of any environmental condition with respect to any of our properties which would have a material adverse effect on our business, financial condition or results of operations.  We cannot predict whether new or more stringent laws relating to the environment will be enacted in the future or how such laws will impact the operations of businesses at our properties. Costs associated with an environmental event could be substantial.

Superlien Laws.  Under the laws of many states, contamination on a site may give rise to a lien on the site for clean‑up costs. In several states, such a lien has priority over all existing liens, including those of existing mortgages. In these states, the lien of a mortgage may lose its priority to such a superlien.

CERCLA.  The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, or CERCLA, imposes strict liability on present and past “owners” and “operators” of a contaminated site for the costs of clean‑up.  A secured lender may be liable as an “owner” or “operator” of a contaminated site if agents or employees of the lender have participated in the management of such site or in the operations of the tenant.  Excluded from CERCLA’s definition of “owner” or “operator” however, is a person “who without participating in the management of the facility, holds indicia of ownership primarily to protect his security interest.”  This is the so called “secured creditor exemption.” 

Liability is not limited to the original or unamortized principal balance of a loan or to the value of the site securing a loan.  CERCLA provides substantial protection to lenders by defining the activities in which a lender can engage and still have the benefit of the secured creditor exemption. In order for a lender to be deemed to have participated in the management of a site, the lender must actually participate in the operational affairs of the site or our tenant or borrower. CERCLA provides that merely having the capacity to influence, or unexercised right to control operations does not constitute participation in management.  A lender may lose the protection of the secured creditor exemption only if it exercises decision‑making control over our tenants or borrowers environmental compliance and hazardous substance handling and disposal practices, or assumes responsibility for substantially all operational functions at the site or overall management encompassing day‑to‑day decision making with regard to environmental compliance.  CERCLA also provides that a lender will continue to have the benefit of the secured creditor exemption even if it forecloses on a site, purchases it at a foreclosure sale or accepts a deed‑in‑lieu of foreclosure provided that the lender seeks to sell the site at the earliest practicable commercially reasonable time on commercially reasonable terms. 

With respect to most of the assets in our investment portfolio, we are the owner of the real property.  However, with respect to a few of the assets in our investment portfolio, we are not the owner of the property but have a mortgage loan on the property.  We believe we meet the secured creditor exemption.

Certain Other Federal and State Laws.  Many states have statutes similar to CERCLA, and not all of those statutes provide for a secured creditor exemption.  In addition, under federal law, there is potential liability relating to hazardous wastes and underground storage tanks under the Federal Resource Conservation and Recovery Act, or RCRA.  The definition of hazardous substances under CERCLA specifically excludes petroleum products.  Subtitle I of RCRA governs underground petroleum storage tanks.  The protections accorded to lenders under CERCLA are also accorded to the holders of security interests in underground petroleum storage tanks if the lender does not participate in management of the underground storage tanks and is not otherwise engaged in petroleum production, refining or

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marketing.  It should be noted, however, that liability for cleanup of petroleum contamination may be governed by state law, which may not provide for any specific protection for secured creditors.

In a few states, transfers of some types of sites are conditioned upon cleanup of contamination prior to transfer. In these cases, a lender that becomes the owner of a site through foreclosure, deed in lieu of foreclosure or otherwise, may be required to clean up the contamination before selling or otherwise transferring the site.

Also, certain federal, state and local laws govern the removal, encapsulation or disturbance of asbestos‑containing materials, or ACMs, in the event of the remodeling, renovation or demolition of a building. Such laws, as well as common law standards, may impose liability for releases of ACMs and may provide for third parties to seek recovery from owners or operators of sites for personal injuries associated with such releases.

Beyond statute‑based environmental liability, there exist common law causes of action (for example, actions based on nuisance or on toxic tort resulting in death, personal injury or damage to site) related to hazardous environmental conditions on a site.  While it may be more difficult to hold a lender liable in such cases, unanticipated or uninsured liabilities of our tenant or borrower may jeopardize the tenants or borrowers ability to meet its lease or loan obligations.

Additional Considerations.  The cost of remediating hazardous substance contamination at a site can be substantial. If a lender becomes liable, it can bring an action for contribution against the owner or operator who created the environmental hazard, but that individual or entity may be without substantial assets.

If a lender forecloses on a mortgage secured by a site on which business operations are subject to environmental laws and regulations, the lender will be required to operate the site in accordance with those laws and regulations.  Such compliance may result in substantial expense.

In addition, a lender may be obligated to disclose environmental conditions on a site to government entities and/or to prospective buyers (including prospective buyers at a foreclosure sale or following foreclosure).  Such disclosure may decrease the amount that prospective buyers are willing to pay for the affected site, sometimes substantially, and thereby decrease the ability of the lender to recoup its investment in a loan upon foreclosure.

Emerging Growth Company Status

As of December 31, 2015, we determined that we no longer qualify as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, which means that we are no longer able to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies,” including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, or Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Available Information

We electronically file with the Securities and Exchange Commission our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, pursuant to Section 13(a) of the Exchange Act.  You may obtain a free copy of our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and amendments to those reports on the day of filing with the SEC on our website at www.storecapital.com, or by sending an email message to info@storecapital.com.  

 

Item 1A.  RISK FACTORS

There are many factors that affect our business and the results of our operations, some of which are beyond our control.  The following is a description of important factors that may cause our actual results of operations in future periods to differ materially from those currently expected or discussed in forward-looking statements set forth in this Annual Report.  Forward-looking statements and such risks, uncertainties and other factors speak only as of the date of

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this Annual Report, and we expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in our expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required by law.

Risks Related to Our Business

Our business depends on our customers successfully operating their businesses on real estate we own or finance for them, and their failure to do so could materially and adversely affect our business.  Substantially all of our properties are leased by customers operating a business at those locations where sales and profits are generated for their businesses.  We underwrite and evaluate investment risk based on our belief that the most important, and primary, source of payment for our leases and loans is unit‑level profitability.  While a tenant may have other sources of payment to meet its obligations, we believe the success of our investments materially depends upon whether our customers successfully operate their businesses, and thus generate unit‑level profitability, at the location or locations we are acquiring or financing.  Our customers may be adversely affected by many factors beyond our control that might render one or more of their locations uneconomic.  These factors include poor management, changing demographics, a downturn in general economic conditions or changes in consumer trends that decrease demand for our customers’ products or services.  The occurrence of any of these may cause our customers to fail to pay rent when due, fail to pay real estate taxes when due, fail to pay insurance premiums when due or become insolvent or declare bankruptcy, any of which could materially and adversely affect our business.

Our investments are and are expected to continue to be concentrated in the single‑tenant, middle‑market sector, and if the demand of single‑tenant, middle‑market companies for net‑lease financing fails to increase or decreases, or if the supply of net‑lease financing increases in this sector, we could be materially and adversely affected.  Our target market is middle‑market companies that operate their businesses out of one or more locations that generate unit‑level profitability for the business.  Historically, many companies prefer to own, rather than lease, the real estate they use in their businesses.  A failure to increase demand for our products by, among other ways, failing to convince middle‑market companies to sell and lease back their STORE Properties, or a decrease in the demand of middle‑market companies to rent STORE Properties or an increase in the availability of STORE Properties for rent could materially and adversely affect us.

Our growth depends on external sources of capital that are outside of our control and may not be available to us on commercially reasonable terms or at all.  In order to maintain our qualification as a REIT, we are required under the Code to, among other things, distribute annually at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain. In addition, we will be subject to income tax at regular corporate rates to the extent that we distribute less than 100% of our REIT taxable income, determined without regard to the dividends paid deduction and including any net capital gain. Because of these distribution requirements, we may not be able to fund future capital needs, including any necessary acquisition financing, from operating cash flows. Consequently, we may rely on third-party sources to fund our capital needs. We may not be able to obtain the financing on favorable terms or at all. Any additional debt we incur will increase our leverage and likelihood of default. Our access to third-party sources of capital depends, in part, on:

·

general market conditions;

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the market’s perception of our growth potential;

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our current debt levels;

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our current and expected future earnings;

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our cash flows and cash distributions; and

·

the market price per share of our common stock.

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If we cannot obtain capital from third-party sources, we may not be able to acquire properties when strategic opportunities exist, meet the capital and operating needs of our existing properties, satisfy our debt service obligations or make the cash distributions to our stockholders necessary to maintain our qualification as a REIT.

We depend on the asset‑backed securities, or ABS, and the commercial mortgage‑backed securities, or CMBS, markets for a substantial portion of our long‑term debt financing.  We depend on, and we likely will continue to depend on, the ABS and CMBS markets for a substantial portion of our long‑term debt financing.  Substantially all of the long‑term debt on our balance sheet has been obtained from debt offerings in the ABS and CMBS markets. This ABS debt is issued by bankruptcy remote, special purpose entities that we or our subsidiaries own.  These special purpose entities issue multiple series of investment‑grade ABS notes from time to time as additional collateral is added to the collateral pool.  Our CMBS debt is generally in the form of first mortgage debt incurred by other special purpose entities that we or our subsidiaries own.  Our ABS and CMBS debt is generally non‑recourse.  However, there are customary limited exceptions to recourse for matters such as fraud, misrepresentation, gross negligence or willful misconduct, misapplication of payments, bankruptcy and environmental liabilities.

Historically, we have raised a significant amount of debt capital through our STORE Master Funding program, which accesses the ABS market and, to a lesser extent, through our access to the CMBS market.  We have generally used the proceeds from these financings to repay debt and fund real estate acquisitions.  As of December 31, 2015, we had issued notes under our STORE Master Funding program in six series with an aggregate outstanding principal balance of $1.4 billion.  Collectively these notes are referred to as the “Master Trust Notes” and had a weighted average maturity of 6.5 years, as of December 31, 2015. In addition, we had CMBS and other mortgage loans with an aggregate outstanding principal balance of $196 million and an average maturity of seven years, as of December 31, 2015.  Our obligations under these loans are generally secured by liens on certain of our properties. In the case of our STORE Master Funding program, subject to certain conditions and limitations, we may substitute real estate collateral for assets in the collateral pool from time to time.  No assurance can be given that the ABS or the CMBS markets will be available to us in the future, whether to refinance existing debt or to raise additional debt capital. Moreover, we view our ability to substitute collateral under our STORE Master Funding program favorably, and no assurance can be given that financing facilities offering similar flexibility will be available to us in the future.

In the event of a disruption in the financial markets for ABS or CMBS debt, our ability to obtain long‑term debt may be materially and adversely affected.  As a result, we may acquire real estate assets at a lower than anticipated growth rate, or we may be unable to acquire additional real estate assets.  In addition, this disruption may affect our return on equity as a result of the decrease in the availability of long‑term debt or leverage for us.  Furthermore, a reduction in the difference, or spread, between the rate we earn on our assets and the rate we pay on our liabilities (primarily our long‑term debt), which would occur if the interest rates available to us on future debt issuances increase faster than the lease rates we can charge our customers on STORE Properties we acquire and lease back to them, could have a material and adverse effect on our financial condition.

A significant portion of our assets have been pledged to secure the borrowings of our subsidiaries, and the failure of our subsidiaries to make the required payments could materially and adversely affect us.  A significant portion of our investment portfolio consists of assets owned by our consolidated, bankruptcy remote, special purpose entity subsidiaries that have been pledged to secure the long‑term borrowings of those subsidiaries.  As of December 31, 2015, the total outstanding principal balance of non‑recourse debt obligations of our consolidated special purpose entity subsidiaries was $1.6 billion, and approximately $2.4 billion in assets held by those subsidiaries had been pledged to secure those borrowings.  We or our other consolidated subsidiaries are the equity owners of these special purpose entities, meaning we are entitled to the excess cash flows after debt service and all other required payments are made on the debt of these entities.  If our subsidiaries fail to make the required payments on this indebtedness, distributions of excess cash flows to us may be reduced or suspended and the indebtedness may become immediately due and payable.  If the subsidiaries are unable to pay the accelerated indebtedness, the pledged assets could be foreclosed upon and distributions of excess cash flows to us may be suspended or terminated.  In this case, our ability to make distributions to our stockholders could be materially and adversely affected.

Failure to mitigate our exposure to interest rate volatility changes may materially and adversely affect us.  We attempt to mitigate our exposure to interest rate risk by entering into long‑term fixed-rate financing through the combination of periodic debt offerings under STORE Master Funding, our ABS conduit, through discrete non‑recourse

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secured borrowings, through insurance company and bank borrowings, by laddering our borrowing maturities and by using leases that generally provide for rent escalations during the term of the lease.  However, the weighted average term of our borrowings does not match the weighted average term of our investments, and the methods we employ to mitigate our exposure to changes in interest rates involve risks, including the risk that the debt markets are volatile and tend to reflect the conditions of the then‑current economic climate.  Our efforts may not be effective in reducing our exposure to interest rate changes.  Failure to effectively mitigate our exposure to changes in interest rates may materially and adversely affect us by increasing our cost of capital and reducing the net returns we earn on our portfolio.

We attempt to mitigate our exposure to interest rate volatility by using interest rate hedging arrangements. However, these arrangements involve risks and may not be effective in reducing our exposure to interest rate changes. In addition, the counterparties to our hedging arrangements may not honor their obligations. Failure to hedge effectively against changes in interest rates on our borrowings may materially and adversely affect us.

Loss of our key personnel could materially impair our ability to operate successfully.  As an internally managed company, our ability to achieve our investment objectives and to make distributions to our stockholders depends upon the performance of our senior leadership team. We rely on our senior leadership team to, among other things, identify and consummate acquisitions, design and implement our financing strategies, manage our investments and conduct our day‑to‑day operations.  In particular, our success depends upon the performance of Christopher H. Volk, our Chief Executive Officer, and other members of our senior leadership team.

We cannot guarantee the continued employment of any of the members of our senior leadership team, who may choose to leave our company for any number of reasons, such as other business opportunities, differing views on our strategic direction or other personal reasons.  We rely on the experience, efforts and abilities of these individuals, each of whom would be difficult to replace.  The employment agreements we have entered into with each of these executives do not guarantee their continued service to us.  The loss of services of one or more members of our senior leadership team, or our inability to attract and retain highly qualified personnel, could adversely affect our business, diminish our investment opportunities and weaken our relationships with lenders, business partners, existing and prospective tenants and industry personnel, all of which could materially and adversely affect us.

Each member of our senior leadership team holds equity interests, or profits interests, in the form of Series B Units in our principal stockholder, STORE Holding.  The Series B Units are subject to vesting and forfeiture provisions, with 75% of the Series B Units vesting ratably over five years (15% vesting each year on the anniversary of the respective grant dates) and 25% remaining subject to forfeiture if a termination occurs under certain circumstances.   The Series B Units were issued and designed to provide a long-term incentive and, through deferred vesting, to serve as a retention device for our senior leadership team.  In order for the holders of the Series B Units to receive any cash distributions with respect to their Series B Units, the equity investors of STORE Holding must first be returned all of their invested capital plus a specified cash return on such capital, which has not yet occurred.  Once this occurs, members of our senior leadership will be entitled to cash distributions, which may be substantial and may reduce the retention value of the Series B Units.  Also, in the event of a change in control, as defined in the Limited Liability Company Agreement of STORE Holding, dated as of May 17, 2011, as amended (the “LLC Agreement”), each member of our senior leadership team’s vested and unvested Series B Units will be liquidated in accordance with the provisions of the LLC Agreement.    The liquidation of the Series B Units will significantly reduce their retention value and could result in the loss of the services of some or all of the members of our senior leadership team.

Our success depends in part on the creditworthiness of our customers, and we lease most of our properties to non-rated customers.  Our underwriting and risk‑management procedures that we use to evaluate a potential customer’s credit risk may be faulty, deficient or otherwise fail to accurately reflect the risk of our investment.  Our customers are mostly middle‑market companies, which generally are not rated by any nationally recognized rating agency.  We use external and internal tools to evaluate risk and predict the risk of default.  When we review a potential investment, we view our sources of payment to be, in order of priority, unit‑level profitability, tenant credit quality and residual real estate valuation.  Additionally, we review a potential customer’s management team and the macroeconomic trends of the industry in which that customer operates.  We evaluate the risk of company insolvency using a third‑party model, Moody’s Analytics RiskCalc, which is a model for predicting private company defaults based on Moody’s Analytics Credit Research Database and which provides us an Estimated Default Frequency, or EDF, for each of our customers.  We then estimate the risk of lease or loan rejection by assigning a probability of termination

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based on the unit‑level fixed charge coverage ratio, or unit FCCRs, at the property or properties we own.  We then estimate the long‑term default risk of an investment by multiplying the EDF score by our estimated probability that our lease will be rejected in bankruptcy, which we call the “STORE Score.”

Our methods may not adequately assess the risk of an investment.  Moody’s Analytics RiskCalc, our methodology of estimating probability of lease rejection and the STORE Score, may be inaccurate, incomplete or otherwise fail to adequately assess default risk.  An EDF score from Moody’s Analytics RiskCalc is not the same as a published credit rating and lacks the extensive company participation that is typically involved when a rating agency publishes a rating.  EDF scores and FCCRs are calculated based on financial information provided to us by our customers and prospective customers without independent verification by us.  The probability of lease rejection we assign an investment based on unit FCCR or other factors may be inaccurate.  Moreover, the risks we have identified as our principal risks may omit significant risks to our investments.  If our underwriting procedures fail to properly assess the unit‑level profitability, tenant or corporate credit risk or real estate value of potential investments, then we may invest in properties that result in tenant defaults, and we may be unable to recover our investment by re‑leasing or selling the related property, which could materially and adversely affect our operating results and financial position.

The agreements governing our indebtedness contain restrictions and covenants which may limit our ability to enter into or obtain funding for certain transactions, operate our business or make distributions to our common stockholders.  The agreements governing our indebtedness contain restrictions and covenants that limit or will limit our ability to operate our business. These covenants, as well as any additional covenants to which we may be subject in the future because of additional indebtedness, could cause us to forego investment opportunities, reduce or eliminate distributions to our common stockholders or obtain financing that is more expensive than financing we could obtain if we were not subject to the covenants. In addition, the agreements may have cross default provisions, which provide that a default under one of our financing agreements would lead to a default on some or all of our debt financing agreements.

The covenants and other restrictions under our debt agreements may affect, among other things, our ability to:

·

incur indebtedness;

·

create liens on assets;

·

sell or substitute assets;

·

modify certain terms of our leases;

·

prepay debt with higher interest rates;

·

manage our cash flows; and

·

make distributions to equity holders.

Additionally, these restrictions may adversely affect our operating and financial flexibility and may limit our ability to respond to changes in our business or competitive environment, all of which may materially and adversely affect us.

The bankruptcy or insolvency of any of our tenants could result in the termination of such tenant’s lease and material losses to us.  A tenant bankruptcy or insolvency could diminish the rental revenue we receive from that property or could force us to “take back” a property as a result of a default or a rejection of the lease by a tenant in bankruptcy.  Any claims against bankrupt tenants for unpaid future rent would be subject to statutory limitations that would likely result in our receipt, if at all, of rental revenues that are substantially less than the contractually specified rent we are owed under their leases.  In addition, any claim we have for unpaid past rent will likely not be paid in full.  If a tenant becomes bankrupt or insolvent, federal law may prohibit us from evicting such tenant based solely upon such bankruptcy or insolvency.  We may also be unable to re‑lease a terminated or rejected space or re‑lease it on comparable or more favorable terms.

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Many of our tenants lease multiple properties from us under master leases.  Bankruptcy laws afford certain protections to a tenant that may also affect the master lease structure.  Subject to certain restrictions, a tenant under a master lease generally is required to assume or reject the master lease as a whole, rather than making the decision on a property‑by‑property basis.  This prevents the tenant from assuming only the better performing properties and terminating the master lease with respect to the poorer performing properties.  If these tenants are considering filing for bankruptcy protection, we may find it necessary to agree to amend their master leases to remove certain underperforming properties rather than risk the tenant rejecting the entire master lease in bankruptcy.  Whether or not a bankruptcy court will require a master lease to be assumed or rejected as a whole depends upon a “facts and circumstances” analysis.  A bankruptcy court will consider a number of factors, including the parties’ intent, the nature and purpose of the relevant documents, whether there was separate and distinct consideration for each property included in the master lease, the provisions contained in the relevant documents and applicable state law.  If a bankruptcy court allows a master lease to be rejected in part, certain underperforming leases related to properties we own could be rejected by the tenant in bankruptcy, thereby adversely affecting payments derived from the properties.  As a result, tenant bankruptcies could materially and adversely affect us.

Our financial monitoring, periodic site inspections and selective property sales may fail to mitigate the risk of customer defaults, and if a customer defaults, we may experience difficulty or a significant delay in re‑leasing or selling the property.  Our portfolio‑management activities, including financial monitoring, periodic site inspections and selective property sales, may be insufficient to prevent or reduce the frequency of tenant defaults.  If a tenant defaults, it will likely cause a significant or complete reduction in our revenue from that property for some time. If a defaulting tenant is unable to recover financially, we may have to re‑lease or sell the property.  Re‑leasing or selling properties may take a significant amount of time, during which the property might have a negative cash flow to us and we may incur other related expenses.  We may also have to renovate the property, reduce the rent or provide an initial rent abatement or other incentive to attract a potential tenant or buyer before we can re‑lease or sell the property. During this period, we likely will incur ongoing expenses for property maintenance, taxes, insurance and other costs.  Therefore, tenant defaults could materially and adversely affect us.

As leases expire, we may be unable to renew those leases or re‑lease the space on favorable terms or at all.  Our success depends in part upon our ability to cause our properties to be occupied and generating revenue.  As of December 31, 2015, leases and loans representing approximately 11% of our annualized base rent and interest will expire prior to 2026.  We cannot guarantee that we will be able to renew leases or re‑lease space (i) without an interruption in the rental revenue from those properties, (ii) at or above our current rental rates, or (iii) without having to offer substantial rent abatements, tenant improvement allowances, early termination rights or below‑market renewal options.  The difficulty, delay and cost of renewing leases, re‑leasing space and leasing vacant space could materially and adversely affect us.

Certain provisions of our leases or loan agreements may be unenforceable, which could adversely impact us.  Our rights and obligations with respect to our leases, mortgage loans or other loans are governed by written agreements. A court could determine that one or more provisions of such an agreement are unenforceable, such as a particular remedy, a loan prepayment provision or a provision governing our security interest in the underlying collateral of a borrower or lessee. We could be adversely impacted if this were to happen with respect to an asset or group of assets.

Our ability to realize future rent increases may be adversely affected by changes in the Consumer Price Index, or CPI.  A substantial portion of our leases contain rent escalators, or provisions that periodically increase the base rent payable by the tenant under the lease.  Our leases that have contingent rent escalators indexed to future increases in the Consumer Price Index primarily adjust over a one‑year period but may adjust over multiple‑year periods. Generally, these escalators increase rent at the lesser of (i) 1 to 1.25 times the change in the CPI over a specified period or (ii) a fixed percentage.  If the product of any increase in the CPI multiplied by the applicable factor is less than the fixed percentage, the increased rent we are entitled to receive will be less than what we otherwise would have been entitled to receive if the rent escalator was based solely on a fixed percentage. Therefore, during periods of deflation or low inflation, small increases or decreases in the CPI will subject us to the risk of receiving lower rental revenue than we otherwise would have been entitled to receive if our rent escalators were based solely on fixed percentages or amounts. 

The geographic concentration of our properties could make us vulnerable to an economic downturn, regulatory changes or acts of nature in those areas, resulting in a decrease in our revenues or other negative impacts on our results

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of operations.  As of December 31, 2015, the five states from which we derive the largest amount of our annualized base rent and interest were Texas (12.4%), Illinois (8.2%), Georgia (6.2%), Ohio (5.4%) and Tennessee (5.3%). As a result of these concentrations, the conditions of local economies and real estate markets, changes in state or local governmental rules and regulations, acts of nature and other factors in these states could result in a decrease in the demand for the products offered by the businesses operating on the properties in those states, which would have an adverse impact on our customers’ revenues, costs and results of operations, thereby adversely affecting their ability to meet their obligations to us.

As we continue to acquire properties, we may decrease or fail to increase the diversity of our portfolio.  We have broad authority to invest in any STORE Property that we may identify in the future.  As we continue to acquire properties, our portfolio may become less diverse by tenant, industry or geographic area.  If our portfolio becomes less diverse, the trading price of our common stock may fall, as our business will be more sensitive to the bankruptcy or insolvency of fewer tenants, to changes in consumer trends of a particular industry and to a general economic downturn in a particular geographic area.

We face significant competition for tenants, which may decrease or prevent increases of the occupancy and rental rates of our properties, and competition for acquisitions may reduce the number of acquisitions we are able to complete and increase the costs of these acquisitions. We compete with numerous developers, owners and operators of properties, many of which own properties similar to ours in the same markets in which our properties are located. If our competitors offer space at rental rates below current market rates or below the rental rates we currently charge our tenants, we may lose existing or potential tenants and we may be pressured to reduce our rental rates or to offer more substantial rent abatements, tenant improvements, early termination rights, below-market renewal options or other lease incentive payments in order to retain tenants when our leases expire. Competition for tenants could decrease or prevent increases of the occupancy and rental rates of our properties, which could materially and adversely affect us.

We also face competition for acquisitions of real property from investors, including traded and non-traded public REITs, private equity investors and other institutional investment funds, as well as private wealth management advisory firms that serve high net worth investors (also known as family offices), some of which have greater financial resources than we do, a greater ability to borrow funds to acquire properties and the willingness to accept more risk than we can prudently manage. This competition may increase the demand for the types of properties in which we typically invest and, therefore, reduce the number of suitable acquisition opportunities available to us and increase the prices paid for such acquisition properties. This competition will increase if investments in real estate become more attractive relative to other types of investment. Accordingly, competition for the acquisition of real property could materially and adversely affect us.

A decrease in demand for restaurant space or a downturn in the restaurant industry could materially and adversely affect us.  As of December 31, 2015, real estate investments operated by customers in the restaurant industry represented approximately 25.5% of the dollar amount of our investment portfolio and 25.2% of our annualized base rent and interest, and, in the future, it is likely we will acquire additional restaurant properties.  Because the restaurant industry represents a significant portion of our portfolio, a downturn in the restaurant industry may have a material adverse effect on us.

We have investments in industries that depend upon discretionary spending by consumers.  A reduction in the willingness or ability of consumers to use their discretionary income in the businesses of our customers and potential customers could reduce the demand for our net‑lease solutions.  Most of our portfolio is leased to or financed with customers operating service or retail businesses on our property locations.  Restaurants, movie theaters, health clubs, early childhood education centers and furniture stores represent the largest industries in our portfolio; and Ashley Furniture HomeStore, Gander Mountain, Applebee’s, Popeyes Louisiana Kitchen and Starplex Cinemas represent the largest concepts in our portfolio.  The success of most of these businesses depends on the willingness of consumers to use discretionary income to purchase their products or services.  A downturn in the economy could cause consumers to reduce their discretionary spending, which may have a material adverse effect on us.

Service and retail businesses using physical outlets also face increasing competition from alternate methods of purchasing goods and services, including online service providers and retailers.  As consumers increasingly use alternate methods to obtain goods and services, including the internet, this trend could adversely impact the success of

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physical service centers and retail business locations.  Because we lease real estate to service and retail businesses, a decrease in purchases at these locations may have a material adverse effect on us.

Some of our tenants are subject to government regulation and rely on government funding, which could adversely impact their ability to make timely lease payments to us.  The industries in which some of our tenants operate are subject to government regulation, and these businesses may depend, to various extents, on government funding or reimbursements. For example, tenants in the education industry often rely extensively on local, state and federal government funding for their students’ tuition payments. In addition, tenants in the healthcare and childcare‑related industries typically receive local, state or federal funding, subsidies or reimbursements. The amount and timing of these various fundings, subsidies and reimbursements depend on various factors beyond our or our tenants’ control, including government budgets and policies and political issues. Some of these tenants also must satisfy certain licensure or certification requirements in order to qualify for government funding, subsidies or reimbursements. If these tenants fail to satisfy these requirements or otherwise fail to receive government funding, when and as needed, including as a result of tightened government budgets, revised funding policies or otherwise, their cash flow could be materially affected causing them to default on our leases, which could adversely impact our business. As we continue to grow our investment portfolio, we may continue to invest in these industries and expand our business into other industries that operate in highly regulated environments and rely significantly on payments from government payors. Changes in regulatory requirements or government funding policies affecting our tenants may result in lease defaults, which would reduce our revenues and harm our results of operations and financial position.

We may be unable to identify and complete acquisitions of suitable properties, and the competition for acquisitions may reduce the number of acquisitions we can complete, either of which may impede our growth and the continued diversification of our portfolio.  Our ability to continue to acquire suitable properties may be constrained by numerous factors, including the following:

·

Our ability to locate properties with attractive economic terms or lease rates.  We target investments that have a spread between our cost of capital and the lease rate of the properties we acquire.  If that spread decreases, our ability to profitably grow our company will decrease.

·

We compete with numerous investors, including publicly traded and non‑traded REITs, institutional, private equity and individual investors and other investment funds including family offices, some of whom have greater financial resources and more favorable capital costs when compared to us.

·

Since many customers we approach have an historic preference to own, rather than lease, their real estate, our ability to grow requires that we overcome those preferences and convince customers that it is in their best interests to lease, rather than own, their STORE Properties, and we may be unable to do so.

·

After beginning to negotiate the terms of a transaction and during our real property, legal and financial due‑diligence review with respect to a transaction, we may be unable to reach an agreement with the customer or discover previously unknown matters, conditions or liabilities and may be forced to abandon the opportunity after incurring significant costs and diverting management’s attention.

·

We may fail to have sufficient equity, adequate capital resources or other financing available to complete acquisitions.

If any of these risks occur, we may be materially and adversely affected.

Insurance on our properties, which our tenants are typically required to maintain, may not adequately cover all losses, and uninsured losses could materially and adversely affect us.  Our leases and loan agreements typically require that our tenants and borrowers maintain insurance of the types and in the amounts that are usual and customary for similar types of commercial property, as reviewed by our independent insurance consultant.  Under certain circumstances, however, we may permit certain tenants and borrowers to self‑insure.  Depending on the location of the property, losses of a catastrophic nature, such as those caused by earthquakes or floods, may be covered by insurance policies that are held by our tenants with limitations, such as large deductibles or co‑payments that a tenant may not be able to meet.

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In addition, factors such as inflation, changes in building codes and ordinances, environmental considerations and others, including terrorism or acts of war, may make any insurance proceeds we receive insufficient to repair or replace a property if it is damaged or destroyed.  In that situation, the insurance proceeds we receive may not be adequate to restore our economic position with respect to the affected real property.  In the event we experience a substantial or comprehensive loss of any of our properties, we may not be able to rebuild such property to its existing specifications without significant capital expenditures, which may exceed any amounts received pursuant to insurance policies, as reconstruction or improvement of such a property would likely require significant upgrades to meet zoning and building code requirements.  The loss of our capital investment in, or anticipated future returns from, our properties due to material uninsured losses could materially and adversely affect us.

Changes in zoning laws may prevent us from restoring a property in the event of a substantial casualty loss.  Due to changes, among other things, in applicable building and zoning ordinances and codes, or zoning laws, affecting certain of our properties that have come into effect after the construction of the properties, certain properties may not comply fully with current zoning laws, including use, parking and setback requirements, but may qualify as permitted non‑conforming uses.  Such changes may limit our or our tenant’s ability to restore the premises of a property to its previous condition in the event of a substantial casualty loss with respect to the property or the ability to refurbish, expand or renovate such property to remain compliant.  If we are unable to restore a property to its prior use after a substantial casualty loss, we may be unable to re‑lease the space at a comparable rent or sell the property at an acceptable price, which may materially and adversely affect us.

Some of our customers operate under franchise or license agreements, which, if terminated or not renewed prior to the expiration of their leases with us, would likely impair their ability to pay us rent.  As of December 31, 2015, 19.5% of our properties (based on investment amount) are operated by our customers under franchise or license agreements.  Generally, franchise agreements have terms that end earlier than the respective expiration dates of the related leases.  In addition, a tenant’s or borrower’s rights as a franchisee or licensee typically may be terminated and the tenant or borrower may be precluded from competing with the franchisor or licensor upon termination.  Usually, we have no notice or cure rights with respect to such a termination and have no rights to assignment of any such franchise agreement.  This may have an adverse effect on our ability to mitigate losses arising from a default on any of our leases or loans.  A franchisor’s or licensor’s termination or refusal to renew a franchise or license agreement would likely have a material adverse effect on the ability of the tenant or borrower to make payments under its lease or loan, which could materially and adversely affect us.

A small percentage of the businesses operating on our properties have limited operating histories, which increases the risk that the tenants operating those businesses may default on rent payments to us. As of December 31, 2015, 39 of the 1,325 properties in our investment portfolio had been open for less than 12 months or were under construction.  The businesses operating on these properties, whether newly constructed or recently opened, may not perform as anticipated, and the tenant may become unable to pay rent to us, which may materially and adversely affect us.

If a tenant defaults under either the ground lease or mortgage loan of a hybrid lease, we may be required to take judicial or administrative action or begin foreclosure proceedings before we can re‑lease or sell the property.  As of December 31, 2015, 5.1% of our annualized base rent and interest was derived from hybrid leases.  A hybrid lease is a modified sale‑leaseback transaction, where the customer sells us their land, leases the land back from us under a ground lease and we simultaneously make a mortgage loan to the customer secured by the improvements the customer continues to own.  If a customer defaults under a hybrid lease, we may: (1) evict the customer under the ground lease and assume ownership of the improvements; or (2) if required by a court, foreclose on the mortgage loan that is secured by the improvements.  Under a ground lease, we as ground lessor generally become the owner of the improvements on the land at lease maturity or if the tenant defaults.  It is possible that a court could require us to foreclose on the mortgage secured by the improvements rather than simply evicting the defaulting tenant under the ground lease.  If foreclosure is required rather than simple eviction, we might encounter delays and expenses in obtaining possession of the land and improvements, which in turn could delay our ability to sell or re‑lease the property in a prompt manner, which could materially and adversely affect us.

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We are subject to risks related to owning commercial real estate that could reduce the value of our properties.  The value of our investments in commercial real estate is subject to the following risks, among others:

·

changes in local real estate conditions in the markets in which our customers operate;

·

environmental risks related to the presence of hazardous or toxic substances or materials on our properties;

·

the subjectivity of real estate valuations and changes in such valuations over time;

·

the illiquidity of real estate compared to other financial assets;

·

changes in interest rates and the availability of financing; and

·

changes in the general economic and business climate.

The occurrence of any of the risks described above may cause the value of our real estate to decline, which could materially and adversely affect us.

Global market and economic conditions may materially and adversely affect us and our tenants.  Our business is sensitive to changes in the overall economic conditions that impact our customers’ financial condition and financing practices.  Adverse economic conditions such as high unemployment levels, interest rates, tax rates and fuel and energy costs may impact the results of our tenants’ operations, which may impact their ability to meet their obligations to us. During periods of economic slowdown, such as the global and U.S. economic downturn of 2008 and 2009, which resulted in increased unemployment, large‑scale business failures and tight credit markets, demand for real estate may decline, resulting in lower rents we can charge or an increased number of defaults under our existing leases.  Accordingly, a decline in economic conditions could materially and adversely affect us.

Illiquidity of real estate investments and restrictions imposed by the Code could significantly impede our ability to respond to adverse changes in the performance of our properties and harm our financial condition.  Some of the real estate investments we have made and expect to make in the future may be difficult to sell quickly.  Therefore, our ability to promptly sell one or more properties in our portfolio in response to changing economic, financial or investment conditions could be limited.  In particular, these risks could arise from weaknesses in or even the lack of an established market for a property, changes in the financial condition or prospects of prospective purchasers, changes in national or international economic conditions, such as the most recent economic downturn, and changes in laws, regulations or fiscal policies of the jurisdiction in which our properties are located.

In addition, the Code imposes restrictions on a REIT’s ability to dispose of properties, which restrictions are not applicable to other types of real estate companies.  In particular, the tax laws applicable to REITs effectively require that we hold our properties for investment, rather than primarily for sale in the ordinary course of business, which may cause us to forgo or defer sales of properties that otherwise would be in our best interest.  Therefore, we may not be able to vary our portfolio in response to economic or other conditions promptly or on favorable terms, which may materially and adversely affect our operations, cash flows and ability to pay distributions on our common stock.

Inflation may materially and adversely affect us and our tenants. We may experience periods when inflation is greater than the increases in rent provided by many of our leases, in which event rent increases will not keep up with the rate of inflation.  If this occurs, we will not have the source of internal growth we expect.  Also, increased costs may have an adverse impact on our tenants if increases in their operating expenses exceed increases in revenue, which may adversely affect our customers’ ability to satisfy their financial obligations to us.

Property vacancies could result in significant capital expenditures.  The loss of a tenant, either through lease expiration or tenant bankruptcy or insolvency, may require us to spend significant amounts of capital to renovate the property before it is suitable for a new tenant and cause us to incur significant costs in the form of ongoing expenses for property maintenance, taxes, insurance and other expenses.  Many of the leases we enter into or acquire are for properties that are especially suited to the particular business of the tenants operating on those properties.  Because these properties have been designed or physically modified for a particular tenant, if the current lease is terminated or

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not renewed, we may be required to renovate the property at substantial costs, decrease the rent we charge or provide other concessions to re‑lease the property.  In addition, if we are required to sell the property, we may have difficulty selling it to a party other than the tenant due to the special purpose for which the property may have been designed or modified.  This potential illiquidity may limit our ability to quickly modify our portfolio in response to changes in economic or other conditions, including tenant demand. These limitations may materially and adversely affect us.

The loss of a borrower or the failure of a borrower to make loan payments on a timely basis will reduce our revenues and may cause us to incur substantial costs, which could lead to losses on our investments and reduced returns to our stockholders.  From time to time, we make or assume commercial mortgage loans.  We have also made a limited amount of investments on properties we own or finance in the form of loans secured by equipment or other fixtures owned by our customers.  The success of our loan investments materially depends on the financial stability of our borrowers.  The success of our borrowers depends on each of their individual businesses and their industries, which could be affected by economic conditions in general, changes in consumer trends and preferences and other factors over which neither they nor we have control.  A default of a borrower on its loan payments to us that would prevent us from earning interest or receiving a return of the principal of our loan could materially and adversely affect us.  In the event of a default, we may also experience delays in enforcing our rights as lender and may incur substantial costs in collecting the amounts owed to us and in liquidating any collateral.

Foreclosure and other similar proceedings used to enforce payment of real estate loans are generally subject to principles of equity, which are designed to relieve the indebted party from the legal effect of that party’s default.  Foreclosure and other similar laws may limit our right to obtain a deficiency judgment against the defaulting party after a foreclosure or sale.  The application of any of these principles may lead to a loss or delay in the payment on loans we hold, which in turn could reduce the amounts we have available to make distributions.  Further, in the event we have to foreclose on a property, the amount we receive from the foreclosure sale of the property may be inadequate to fully pay the amounts owed to us by the borrower and our costs incurred to foreclose, repossess and sell the property, which could materially and adversely affect us.

Our investments in mortgage loans may be affected by unfavorable real estate market conditions, which could decrease the value of those loans.  As of December 31, 2015, we had investments in mortgage loans having an aggregate unpaid principal balance of $96 million.  Investments in mortgage loans are subject to the risk of default by the borrowers and interest‑rate risks.  To the extent we incur delays in liquidating defaulted mortgage loans, we may not be able to obtain all amounts due to us under such loans.  Further, the values of the properties securing the mortgage loans may not remain at the levels existing on the dates of origination of those mortgage loans or the dates of our investment in the loans.  If the values of the underlying properties decline, the value of the collateral securing our mortgage loans will also decline, and if we were to foreclose on any of the properties securing the mortgage loans, we may not be able to sell or lease them for an amount equal to the unpaid amounts due to us under the mortgage loans.  As a result, defaults on mortgage loans in which we may invest may materially and adversely affect us.

Compliance with the Americans with Disabilities Act and fire, safety and other regulations may require us to make significant unanticipated expenditures that could materially and adversely affect us.  Our properties are subject to the Americans with Disabilities Act, or ADA.  Under the ADA, all public accommodations must meet federal requirements related to access and use by disabled persons.  Compliance with the ADA could require us to modify the properties we own or may purchase to remove architectural and communication barriers in order to make our properties readily accessible to and usable by disabled individuals, and may restrict renovations on our properties.  Failure to comply with the ADA could result in the imposition of fines or an award of damages to private litigants, as well as the incurrence of the costs of making modifications to attain compliance.  Future legislation could impose additional obligations or restrictions on our properties.  Our tenants and borrowers are generally responsible to maintain and repair our properties pursuant to our lease and loan agreements, including compliance with the ADA and other similar laws and regulations, but we could be held liable as the owner of the property for their failure to comply with the ADA or other similar laws and regulations.  Any required changes could involve greater expenditures than anticipated or the changes might be made on a more accelerated basis than anticipated, either of which could adversely affect the ability of our tenants to cover such costs.  If we are subject to liability under the ADA or similar laws and regulations as an owner and our tenants are unable to cover the cost of compliance or if we are required to expend our own funds to comply with the ADA or similar laws and regulations, we could be materially and adversely affected.

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In addition, our properties are subject to various laws and regulations relating to fire, safety and other regulations, and in some instances, common‑area obligations.  Our tenants and borrowers have primary responsibility for compliance with these requirements pursuant to our lease and loan agreements.  Our tenants and borrowers may not have the financial ability to fully comply with these regulations.  If our tenants and borrowers are unable to comply with these regulations, they may be unable to pay rent on time or may default, or we may have to make substantial capital expenditures to comply with these regulations, which we may not be able to recoup from our tenants and borrowers.  We may also face owner liability for failure to comply with these regulations, which may lead to the imposition of fines or an award of damages to private litigants.  Therefore, the failure of our tenants and borrowers to comply with these regulations could materially and adversely affect us.

The costs of compliance with or liabilities related to environmental laws may materially and adversely affect us.  Our properties may be subject to known and unknown environmental liabilities under various federal, state and local laws and regulations relating to human health and the environment.  Certain of these laws and regulations may impose joint and several liability on certain statutory classes of persons, including owners or operators, for the costs of investigation or remediation of contaminated properties.  These laws and regulations apply to past and present business operations on the properties, and the use, storage, handling and recycling or disposal of hazardous substances or wastes.  We may face liability regardless of our knowledge of the contamination, the timing of the contamination, the cause of the contamination or the party responsible for the contamination of the property.  Our leases and loans typically impose obligations on our tenants and borrowers to indemnify us from all or most compliance costs we may experience as a result of the environmental conditions on our properties, but if a tenant or borrower fails to, or cannot, comply, we may be required to pay such costs.  We cannot predict whether in the future, new or more stringent environmental laws will be enacted or how such laws will impact the operations of businesses on our properties.  Costs associated with an adverse environmental event could be substantial, and the potential liability as to any of our properties is generally not limited under such laws and regulations and could significantly exceed the value of such property.

Under the laws of many states, contamination on a site may give rise to a lien on the site for clean‑up costs.  In several states, such a lien has priority over all existing liens, including those of existing mortgages.  In these states, a lien of a mortgage may lose its priority to such a “superlien.”  If any of the properties on which we have a mortgage are or become contaminated and subject to a superlien, we may not be able to recover the full value of our investment and may be materially and adversely affected.

Certain federal, state and local laws, regulations and ordinances govern the use, removal and/or replacement of underground storage tanks in the event of a release on, or an upgrade or redevelopment of, certain properties.  Such laws, as well as common‑law standards, may impose liability for any releases of hazardous substances associated with the underground storage tanks and may provide for third parties to seek recovery from owners or operators of such properties for damages associated with such releases.  If hazardous substances are released from any underground storage tanks on any of our properties, we may be materially and adversely affected.

In a few states, transfers of some types of sites are conditioned upon cleanup of contamination prior to transfer, including in cases where a lender has become the owner of the site through a foreclosure, deed in lieu of foreclosure or otherwise.  If any of our properties are subject to such contamination, we may be subject to substantial clean‑up costs before we are able to sell or otherwise transfer the property.

Certain federal, state and local laws, regulations and ordinances govern the removal, encapsulation or disturbance of asbestos‑containing materials in the event of the remodeling, renovation or demolition of a building. Such laws, as well as common‑law standards, may impose liability for releases of ACMs and may impose fines and penalties against us or our tenants for failure to comply with these requirements or provide for third parties to seek recovery from us or our tenants.

If we or our tenants or borrowers become subject to any of the above‑mentioned environmental risks, we may be materially and adversely affected.

Current market conditions could adversely affect our ability to refinance existing indebtedness or obtain additional financing for growth on acceptable terms or at all.  In the recent past, the credit markets have experienced significant price volatility, displacement and liquidity disruptions, including the bankruptcy, insolvency or restructuring

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of certain financial institutions. These circumstances have materially impacted liquidity in the financial markets, making financing terms for borrowers less attractive, and in certain cases, have resulted in the unavailability of various types of debt financing. As a result, we may be unable to obtain debt financing on favorable terms or at all or fully refinance maturing indebtedness with new indebtedness. Reductions in our available borrowing capacity or inability to obtain credit when required or when business conditions warrant could materially and adversely affect us.

Furthermore, if prevailing interest rates or other factors at the time of refinancing result in higher interest rates upon refinancing, then the interest expense relating to that refinanced indebtedness would increase. Higher interest rates on newly incurred debt may negatively impact us as well. If interest rates increase, our interest costs and overall costs of capital will increase, which could materially and adversely affect us.

Our properties may contain or develop harmful mold, which could lead to liability for adverse health effects and costs of remediation.  When excessive moisture accumulates in buildings or on building materials, mold growth may occur, particularly if the moisture problem remains undiscovered or is not addressed over a period of time.  Some molds may produce airborne toxins or irritants.  Exposure to mold may cause a variety of adverse health effects and symptoms, including allergic or other reactions.  If our tenants or their employees or customers are exposed to mold at any of our properties, we could be required to undertake a costly remediation program to contain or remove the mold from the affected property.  In addition, exposure to mold by our tenants or others could subject us to liability if property damage or health concerns arise.  If we were to become subject to significant mold‑related liabilities, we could be materially and adversely affected, which could harm our business.

Our proprietary information technology, or IT, platform may not capture all of the necessary information to allow us to properly monitor and analyze our tenants’ and borrowers’ credit risk, which may materially and adversely affect us.  We have a proprietary IT platform, which we developed to proactively manage our investment portfolio. Our IT platform offers customer relationship management and general ledger and servicing system integration.  Another component of our IT platform is the STORE Universal Database System, or SUDS, which provides our management with access to lease abstracts, tenant information, document scans, property data and servicing information.  Our IT platform and SUDS may not capture all the information needed to mitigate the risk of tenant or borrower default.

We rely on IT in our operations, and any material failure, inadequacy, interruption or security failure of that technology could harm our business.  We rely on IT networks and systems, including the Internet, to process, transmit and store electronic information and to manage or support a variety of our business processes, including financial transactions and maintenance of records, which may include personal identifying information. Although we have taken steps to protect the security of the data maintained in our information systems, our security measures may not be able to prevent the systems’ improper functioning, or the theft of intellectual property, personal information, or personal property, such as in the event of cyber-attacks. Any failure to maintain proper function, security and availability of our information systems could interrupt our operations, result in theft of company assets, damage our reputation, subject us to liability claims and could adversely affect our business, financial condition and results of operations.

Our revenues and expenses are not directly correlated and, because a large percentage of our costs and expenses are fixed, we may not be able to adapt our cost structure to offset declines in our revenue.  Most of the expenses associated with our business, such as our office rent, certain acquisition costs, insurance, employee wages and benefits and other general corporate expenses, are relatively inflexible and will not necessarily decrease with a reduction in revenue from our business.  Our expenses also will be affected by inflationary increases, and certain of our cost increases may exceed the rate of inflation in any given period.  By contrast, our revenue is affected by many factors beyond our control, such as the economic conditions of the markets where we own properties.  As a result, we may not be able to fully offset rising costs by increasing our rents, which could have a material and adverse effect on us.

Our future results will suffer if we do not effectively manage our growth.  We expect to continue to grow our business through additional sale-leaseback transactions and possibly other strategic transactions.  Our future success will depend, in part, upon our ability to manage our growth, successfully monitor our internal operations, costs and regulatory compliance, and continue to develop and maintain other necessary systems, processes and internal controls. If we fail to manage our growth effectively, our business may be adversely affected.

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We may become subject to litigation, which could materially and adversely affect us.  In the future we may become subject to litigation, including claims relating to our operations, debt and equity offerings and otherwise in the ordinary course of business.  Some of these claims may result in significant defense costs and potentially significant judgments against us, some of which are not, or cannot be, insured against.  We generally intend to defend ourselves, but we cannot be certain of the ultimate outcomes of any claims that may arise.  Resolution of these types of matters against us may result in our having to pay significant fines, judgments or settlements, which, if uninsured, or if the fines, judgments and settlements exceed insured levels, could adversely impact our earnings and cash flows, thereby materially and adversely affecting us. Certain litigation or the resolution of certain litigation may affect the availability or cost of some of our insurance coverage, which could materially and adversely impact us, expose us to increased risks that would be uninsured and materially and adversely impact our ability to attract directors and officers.

Our portfolio of tenants and borrowers may be riskier than portfolios comprised of rated investment‑grade companies.  Most of our customers have not been assigned a credit rating by any nationally recognized rating agency.  Our method of determining creditworthiness of potential customers may be less comprehensive and detailed than the process by which nationally recognized rating agencies assign company credit ratings.  As a result, our investment portfolio of tenants and borrowers may be riskier than a portfolio comprised of rated investment‑grade companies.

We may not acquire the properties that we evaluate in our pipeline.  We actively maintain a multi-billion dollar pipeline of investment opportunities.  However, we typically close only a small percentage (approximately 5%) of all transactions we evaluate.  Transactions may fail to close for a variety of reasons, including the discovery of previously unknown liabilities or other items uncovered during our diligence process.  Similarly, we may never execute binding purchase agreements with respect to properties that are currently subject to non‑binding letters of intent, and properties with respect to which we are negotiating may never lead to the execution of any letter of intent.  For many other reasons, we may not ultimately acquire the remaining properties currently in our pipeline. Accordingly, you should not place undue reliance on the concept of a pipeline as we have referred to in this Annual Report.

Construction and renovation risks could adversely affect our profitability. In certain instances, we provide financing to our customers for the construction and renovation of their properties. We are therefore subject to the risks that this construction or renovation may not be completed.  Construction and renovation costs for a property may exceed a tenant’s original estimates due to increased costs for materials or labor or other costs that are unexpected.  A tenant may also be unable to complete construction or renovation of a property on schedule, which could result in increased debt service expense or construction costs.  These additional expenses may affect the ability of the tenant to make payments to us.

Some of our financing arrangements involve balloon payment obligations, which could materially and adversely affect us if we are unable to refinance or sell on acceptable terms.  Some of our financings require us to make a lump-sum or “balloon” payment at maturity. Our ability to make any balloon payment is uncertain and may depend on our ability to obtain additional financing or our ability to sell our properties. At the time the balloon payment is due, we may or may not be able to refinance the balloon payment on terms as favorable as the original loan or sell our properties at a price sufficient to make the balloon payment, if at all. If the balloon payment is refinanced at a higher rate, it will reduce or eliminate any income from our properties. Our inability to meet a balloon payment obligation, through refinancing or sale proceeds, or refinancing on less attractive terms could materially and adversely affect us. We have certain balloon maturities totaling $23 million in the next three years. If we are unable to refinance these maturities or otherwise retire the indebtedness by that time, we could be materially adversely affected, and could be forced to relinquish the related collateral.

Cybersecurity risks and cyber incidents could adversely affect our business and disrupt operations and expose us to liabilities to tenants, employees, capital providers, and other third parties. Cyber incidents can result from deliberate attacks or unintentional events. These incidents can include, but are not limited to, gaining unauthorized access to digital systems for purposes of misappropriating assets or sensitive information, corrupting data, or causing operational disruption. The result of these incidents could include, but are not limited to, disrupted operations, misstated financial data, liability for stolen assets or information, increased cybersecurity protection costs, litigation and reputational damage adversely affecting customer or investor confidence. These cyber incidents could negatively impact us, our tenants or the capital markets.

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Future investment in international markets could subject us to additional risks. If we expand our operating strategy to include investment in international markets, we could face additional risks, including foreign currency exchange rate fluctuations, operational risks due to local economic and political conditions and laws and policies of the United States affecting foreign investment.

Risks Related to Our Organization and Structure

Oaktree Capital Management, L.P., or Oaktree, by virtue of its ownership and control of STORE Holding (our principal stockholder), has substantial influence over our business, and its interests, and the interests of certain members of our management, may differ from our interests or those of our other stockholders.  As of February 1, 2016, Oaktree indirectly beneficially owned just under 40% of our outstanding shares of common stock.  Pursuant to our stockholders agreement with STORE Holding, Oaktree, as its controlling member, currently has the right to designate three members of our board of directors, which currently consists of nine directors.

The interests of Oaktree may differ from the interests of our other stockholders, and the concentration of stock ownership held indirectly by Oaktree will limit other stockholders’ ability to influence corporate matters. In addition, members of our management have equity interests, or profits interests, in the form of Series B Units in our principal stockholder, STORE Holding, which may cause them to have interests that differ from our other stockholders. The concentration of ownership and voting power of STORE Holding may also delay, defer or even prevent an acquisition by a third party or other change of control of us and may make some transactions more difficult or impossible without the support of Oaktree, even if such events are in the best interests of our other stockholders. The concentration of voting power that Oaktree has may have an adverse effect on the price of our common stock. As a result of this concentration, we may take actions that our other stockholders do not view as beneficial, which may adversely affect our results of operations and financial condition and cause the value of your investment in us to decline.

As of December 7, 2015, we ceased to be a “controlled company” as defined in the NYSE Listed Company Manual and, as a result, no longer qualify for exemptions from certain corporate governance requirements. If we are unable to comply with applicable corporate governance requirements, we may become subject to enforcement actions by the NYSE or delisting. Prior to December 7, 2015, STORE Holding held more than 50% of the voting power for the election of our directors and we relied upon the controlled company exception with respect to certain NYSE corporate governance requirements. Pursuant to this exception, we were exempt from the rules that would have otherwise required that our board of directors consist of a majority of independent directors and that our compensation committee and nominating and corporate governance committee be composed entirely of independent directors.

Following the closing of a public offering on December 7, 2015, STORE Holding no longer held more than 50% of the voting power for the election of directors and, as a result, we are no longer a controlled company as defined in the NYSE Listed Company Manual. Under the NYSE Listed Company Manual transitional rules, both our nominating and corporate governance committee and compensation committee must consist of a majority of independent directors on or before March 6, 2016, and on or before December 6, 2016, both committees must consist solely of independent directors and our board of directors must consist of a majority of independent directors. At the meeting of our board of directors on February 18, 2016, independent directors were appointed to both committees such that each committee now consists of a majority of independent directors. During this transition period, our stockholders will not have the same protections afforded to stockholders of companies that have committees of their boards of directors that consist solely of independent directors and boards of directors that consist of a majority of independent directors. Further, if, within the phase-in periods, we are not able to recruit additional directors that would qualify as independent, or we are not able to otherwise comply with the NYSE listing requirements, we may be subject to enforcement actions by the NYSE or delisting.

Our board of directors may change our investment strategy, financing strategy or leverage policies without stockholder consent.  Our board of directors may change any of our strategies, policies or procedures with respect to property acquisitions and divestitures, asset allocation, growth, operations, indebtedness, financing and distributions at any time without the consent of our stockholders, which could result in our acquiring properties that are different from, and possibly riskier than, the types of single‑tenant real estate and related investments described in this Annual Report.  These changes could materially and adversely affect us.

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Our board of directors’ power to increase the number of authorized shares of our stock without stockholder approval may negatively impact our existing stockholders.  Our charter authorizes us to issue up to 375,000,000 shares of common stock, and up to 125,000,000 shares of preferred stock, $0.01 par value per share. Our charter authorizes our board of directors, with the approval of a majority of the board of directors and without stockholder approval, to amend our charter to increase or decrease the aggregate number of shares of stock or the number of shares of any class or series of stock that we are authorized to issue.  Accordingly, our board of directors could authorize the issuance of shares of common stock or another class or series of stock, including a class or series of preferred stock, that could have the effect of delaying, deferring or preventing a change in control of us that our existing stockholders may view as favorable.  In addition, our board of directors may increase our authorized stock in order to issue additional shares in connection with future financings and other transactions.  These additional issuances could dilute the ownership interests of our existing stockholders.

Our rights and the rights of our stockholders to take action against our directors and officers are limited.  As permitted by Maryland law, our charter limits the liability of our directors and officers to us and our stockholders for money damages, except for liability resulting from:

·

actual receipt of an improper benefit or profit in money, property or services; or

·

active and deliberate dishonesty by the director or officer that was established by a final judgment as being material to the cause of action adjudicated.

As a result, we and our stockholders have rights against our directors and officers that are more limited than might otherwise exist. Accordingly, in the event that actions taken in good faith by any of our directors or officers impede the performance of our company, your and our ability to recover damages from such director or officer will be limited. In addition, our charter authorizes us to obligate our company, and our bylaws require us, to indemnify our directors and officers for actions taken by them in those and certain other capacities to the maximum extent permitted by Maryland law.

Termination of the employment agreements with certain members of our senior management team could be costly and prevent a change in control of our company.  The employment agreements with certain members of our senior management team provide that if their employment with us terminates under certain circumstances (including in connection with a change in control of our company), we may be required to pay them significant amounts of severance compensation, including gross-ups for tax liabilities, thereby making it costly to terminate their employment. Furthermore, these provisions could delay or prevent a transaction or a change in control of our company that might involve a premium paid for shares of our common stock or otherwise be in the best interests of our stockholders.

If we fail to implement and maintain an effective system of integrated internal controls, we may not be able to accurately report our financial results.  As a publicly traded company, we are required to comply with the applicable provisions of the Sarbanes‑Oxley Act, which requires, among other things, that we establish and maintain effective internal controls and procedures for financial reporting and effective disclosure controls and procedures for making required filings with the SEC.  Effective internal and disclosure controls are necessary for us to provide reliable financial reports and effectively prevent fraud and to operate successfully as a public company. If we cannot provide reliable financial reports or prevent fraud, our reputation and operating results would be harmed, which could depress the trading price of our common stock.

Designing and implementing an effective system of integrated internal controls is a continuous effort that requires significant resources and devotion of time.  As part of the ongoing monitoring of internal controls required of publicly traded companies, we may discover significant deficiencies or material weaknesses in our internal controls.  As a result of deficiencies or weaknesses that may be identified in our internal controls, we may also identify certain deficiencies in some of our disclosure controls and procedures that we believe require remediation. If we discover deficiencies or weaknesses, we will make efforts to improve our internal and disclosure controls.  However, we may not be successful. 

Any failure to maintain effective controls or timely effect any necessary improvement of our internal and disclosure controls could harm operating results or cause us to fail to meet our reporting obligations, which could affect

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our ability to remain listed with the NYSE.  Ineffective internal and disclosure controls could also cause investors to lose confidence in our reported financial information, which would likely materially and adversely affect us.

We will continue to incur significant expenses as a result of being a public company, which will negatively impact our financial performance.  We incur, and will continue to incur, significant legal, accounting, insurance and other expenses as a result of being a public company.  The Dodd‑Frank Wall Street Reform and Consumer Protection Act of 2010, or the Dodd‑Frank Act, and the Sarbanes‑Oxley Act, as well as related rules implemented by the SEC and the NYSE, have required changes in corporate governance practices of public companies.  As of December 31, 2015, we determined that we no longer qualify as an “emerging growth company” under the JOBS Act, and as a result of the additional regulatory and other requirements, we will experience a substantial increase in legal, accounting, insurance and certain other expenses.  In addition, rules that the SEC is implementing or is required to implement pursuant to the Dodd‑Frank Act are expected to require additional changes.  We expect that compliance with these and other similar laws, rules and regulations, including compliance with Section 404 of the Sarbanes‑Oxley Act, will substantially increase our expenses, including our legal and accounting costs, and make some activities more time‑consuming and costly.  We also expect these laws, rules and regulations to make it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage, which may make it more difficult for us to attract and retain qualified persons to serve on our board of directors or as officers.

Risks Related to Our Tax Status and Other Tax Related Matters

We would incur adverse tax consequences if we fail to qualify as a REIT.    We have elected to be taxed as a REIT under the Code.  Our qualification as a REIT requires us to satisfy numerous requirements, some on an annual and quarterly basis, established under highly technical and complex Code provisions for which there are only limited judicial or administrative interpretations, and which involves the determination of various factual matters and circumstances not entirely within our control.  We expect that our current organization and methods of operation will enable us to continue to qualify as a REIT, but we may not so qualify or we may not be able to remain so qualified in the future.  In addition, U.S. federal income tax laws governing REITs and other corporations and the administrative interpretations of those laws may be amended at any time, potentially with retroactive effect.  The Protecting Americans from Tax Hikes Act (“PATH Act”) was enacted in December 2015, and included numerous changes in the U.S. federal income tax laws applicable to REITs.  The provisions have various effective dates beginning as early as 2016.  We expect that the changes will not materially impact us under our current methods of operation.  Future legislation, new regulations, administrative interpretations or court decisions could adversely affect our ability to qualify as a REIT or adversely affect our stockholders.

If we fail to qualify as a REIT in any taxable year, we would be subject to federal income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate rates, and would not be allowed to deduct dividends paid to our stockholders in computing our taxable income.  Also, unless the Internal Revenue Service, or the IRS, granted us relief under certain statutory provisions, we could not re‑elect REIT status until the fifth calendar year after the year in which we first failed to qualify as a REIT.  The additional tax liability from the failure to qualify as a REIT would reduce or eliminate the amount of cash available for investment or distribution to our stockholders.  This would likely have a significant adverse effect on the value of our securities and our ability to raise additional capital. In addition, we would no longer be required to make distributions to our stockholders.  Even if we continue to qualify as a REIT, we will continue to be subject to certain federal, state and local taxes on our income and property.

Dividends paid by REITs generally do not qualify for reduced tax rates.    In general, the maximum U.S. federal income tax rate for dividends that constitute “qualified dividend income” paid to individuals, trusts and estates is 20%.  Unlike dividends received from a corporation that is not a REIT, our distributions generally are not eligible for the reduced rates.  Although these rules do not adversely affect the taxation of REITs or dividends payable by REITs, investors who are individuals, trusts and estates may perceive investments in REITs to be relatively less attractive than investments in the stocks of non‑REIT corporations that pay dividends, which could materially and adversely affect the value of the shares of REITs, including the per share trading price of our common stock.

We may conduct a portion of our business through taxable REIT subsidiaries, which are subject to certain tax risks.    We have established a taxable REIT subsidiary and may establish others in the future.  Despite our qualification

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as a REIT, our taxable REIT subsidiaries must pay income tax on their taxable income.  In addition, we must comply with various tests to continue to qualify as a REIT for federal income tax purposes, and our income from and investments in our taxable REIT subsidiaries generally do not constitute permissible income and investments for these tests.  Our dealings with our taxable REIT subsidiaries may adversely affect our REIT qualification.  Furthermore, we may be subject to a 100% penalty tax, we may jeopardize our ability to retain future gains on real property sales, or our taxable REIT subsidiaries may be denied deductions, to the extent our dealings with our taxable REIT subsidiaries are not deemed to be arm’s length in nature or are otherwise not permitted under the Code.

Gain on disposition of assets deemed held for sale in the ordinary course of business is subject to 100% tax.  If we sell any of our assets, the IRS may determine that the sale is a disposition of an asset held primarily for sale to customers in the ordinary course of a trade or business.  Gain from this kind of sale generally will be subject to a 100% tax.  Whether an asset is held “primarily for sale to customers in the ordinary course of a trade or business” depends on the particular facts and circumstances of the sale.  Although we will attempt to comply with the terms of safe-harbor provisions in the Code prescribing when asset sales will not be so characterized, we cannot assure you that we will be able to do so.

The IRS may treat sale‑leaseback transactions as loans, which could jeopardize our REIT status or require us to make an unexpected distribution.  The IRS may take the position that specific sale‑leaseback transactions that we treat as leases are not true leases for federal income tax purposes but are, instead, financing arrangements or loans.  If a sale‑leaseback transaction were so re‑characterized, we might fail to satisfy the REIT asset tests, the income tests or distribution requirements and consequently lose our REIT status effective with the year of re‑characterization unless we elect to make an additional distribution to maintain our REIT status.

REIT distribution requirements limit our available cash.  As a REIT, we are subject to annual distribution requirements, which limit the amount of cash we retain for other business purposes, including amounts to fund our growth.  We generally must distribute annually at least 90% of our net REIT taxable income, excluding any net capital gain, in order for our distributed earnings to not be subject to corporate income tax.  We intend to make distributions to our stockholders to comply with the requirements of the Code.  However, differences in timing between the recognition of taxable income and the actual receipt of cash could require us to sell assets or borrow funds on a short‑term or long‑term basis to meet the 90% distribution requirement of the Code, even if the prevailing market conditions are not favorable for these borrowings.

As a result of acquiring C corporations in carry-over basis transactions, we may inherit material tax liabilities and other tax attributes from such acquired corporations, and we may be required to distribute earnings and profits.  From time to time, we have and may continue to acquire C corporations in transactions in which the basis of the corporations’ assets in our hands is determined by reference to the basis of the assets in the hands of the acquired corporations, or carry-over basis transactions.

If we acquire any asset from a corporation that is or has been a C corporation in a carry-over basis transaction, and we subsequently recognize gain on the disposition of the asset during the five-year period beginning on the date on which we acquired the asset, then we will be required to pay tax on such a built-in gain at the highest regular corporate tax rate on this gain to the extent of the excess of (1) the fair market value of the asset over (2) our adjusted basis in the asset, in each case determined as of the date on which we acquired the asset. Any taxes we pay as a result of such gain would reduce the amount available for distribution to our stockholders. The imposition of such tax may require us to forgo an otherwise attractive disposition of any assets we acquire from a C corporation in a carry-over basis transaction, and as a result may reduce the liquidity of our portfolio of investments. In addition, in such a carry-over basis transaction, we will succeed to any tax liabilities and earnings and profits of the acquired C corporation. To qualify as a REIT, we must distribute any non-REIT earnings and profits accumulated by the C corporation prior to the acquisition by the close of the taxable year in which we acquire the corporation.

We could face possible state and local tax audits and adverse changes in state and local tax laws.    As discussed in the risk factors above, because we are organized and qualify as a REIT, we are generally not subject to federal income taxes, but we are subject to certain state and local taxes.  From time to time, changes in state and local tax laws or regulations are enacted, which may result in an increase in our tax liability.  A shortfall in tax revenues for states and municipalities in which we own properties may lead to an increase in the frequency and size of such changes. 

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If such changes occur, we may be required to pay additional state and local taxes.  These increased tax costs could adversely affect our financial condition and the amount of cash available for the payment of distributions to our stockholders.  In the normal course of business, entities through which we own real estate may also become subject to tax audits.  If such entities become subject to state or local tax audits, the ultimate result of such audits could have an adverse effect on our financial condition.

Qualifying as a REIT involves highly technical and complex provisions of the Code. Our qualification as a REIT involves the application of highly technical and complex Code provisions for which only limited judicial and administrative authorities exist.  Even a technical or inadvertent violation could jeopardize our REIT qualification.  Moreover, new legislation, court decisions or administrative guidance, in each case possibly with retroactive effect, may make it more difficult or impossible for us to qualify as a REIT.  Our qualification as a REIT will depend on our satisfaction of certain asset, income, organizational, distribution, stockholder ownership and other requirements on a continuing basis.  Our ability to satisfy the REIT income and asset tests depends upon our analysis of the characterization and fair market values of our assets, some of which are not susceptible to a precise determination and for which we will not obtain independent appraisals, and upon our ability to successfully manage the composition of our income and assets on an ongoing basis.  In addition, our ability to satisfy the requirements to qualify as a REIT depends in part on the actions of third parties over which we have no control or only limited influence, including in cases where we own an equity interest in an entity that is classified as a partnership for U.S. federal income tax purposes.

 

Risks Related to Ownership of Our Common Stock

Changes in market conditions and volatility of stock prices could adversely affect the market price of our common stock.    The stock markets, including the NYSE, on which our common stock is listed, have experienced significant price and volume fluctuations.  As a result, the market price of our common stock could be similarly volatile, and investors in our common stock may experience a decrease in the value of their shares, including decreases unrelated to our operating performance or prospects.  In addition to the risks discussed or referred to in this “Risk Factors” section, a number of factors could negatively affect the price per share of our common stock, including:

·

general market and economic conditions;

·

actual or anticipated variations in our quarterly operating results or dividends or our payment of dividends in shares of our common stock;

·

changes in our funds from operations or earnings estimates;

·

difficulties or inability to access capital or extend or refinance existing debt;

·

changes in market valuations of similar companies;

·

publication of research reports about us or the real estate industry;

·

the general reputation of REITs and the attractiveness of their equity securities in comparison to other equity securities;

·

general stock and bond market conditions, including changes in interest rates on fixed income securities, that may lead prospective purchasers of our stock to demand a higher annual yield from future dividends;

·

a change in ratings issued by any analyst following us or any nationally recognized statistical rating organization;

·

additions or departures of key management personnel;

·

adverse market reaction to any additional debt we may incur in the future;

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·

speculation in the press or investment community;

·

terrorist activity which may adversely affect the markets in which our securities trade, possibly increasing market volatility and causing further erosion of business and consumer confidence and spending;

·

failure to continue to qualify as a REIT;

·

strategic decisions by us or our competitors, such as acquisitions, divestments, spin-offs, joint ventures, strategic investments or changes in business strategy;

·

failure to satisfy listing requirements of the NYSE;

·

governmental regulatory action and changes in tax laws; and

·

the issuance of additional shares of our common stock, or the perception that such sales might occur.

Many of the factors listed above are beyond our control.  These factors may cause the market price of shares of our common stock to decline, regardless of our financial condition, results of operations, business or our prospects.

Furthermore, in recent years, the stock market has experienced significant price and volume fluctuations. This volatility has had a significant impact on the market price of securities issued by many companies, including companies in our industry. The changes frequently appear to occur without regard to the operating performance of the affected companies. Hence, the price of our common stock could fluctuate based upon factors that have little or nothing to do with us in particular, and these fluctuations could materially reduce the price of our common stock and materially affect the value of your investment.

Limitations on share ownership and limitations on the ability of our stockholders to effect a change in control of us restrict the transferability of our stock and may prevent takeovers that are beneficial to our stockholders.  One of the requirements for maintenance of our qualification as a REIT for U.S. federal income tax purposes is that no more than 50% in value of our outstanding capital stock may be owned by five or fewer individuals, including entities specified in the Code, during the last half of any taxable year.  Our charter contains ownership and transfer restrictions relating to our stock to assist us in complying with this and other REIT ownership requirements, among other purposes.  However, the restrictions may have the effect of preventing a change of control that does not threaten REIT status.  These restrictions include a provision in our charter that generally limits ownership by any person of more than 9.8% of the value of our outstanding stock or 9.8% (in value or by number of shares, whichever is more restrictive) of our outstanding common stock, unless our board of directors exempts the person from such ownership limitation.  Absent such an exemption from our board of directors, the transfer of our stock to any person in excess of the applicable ownership limit, or any transfer of shares of such stock in violation of the ownership requirements of the Code for REITs, may be void under certain circumstances, and the intended transferee of such stock will acquire no rights in such shares.  These provisions of our charter may have the effect of delaying, deferring or preventing someone from taking control of us, even though a change of control might involve a premium price for our stockholders or might otherwise be in our stockholders’ best interests.

Increases in market interest rates may have an adverse effect on the value of our common stock if prospective purchasers of our common stock expect a higher dividend yield and increased borrowing costs may decrease our funds available for distribution.  The market price of our common stock will generally be influenced by the dividend yield on our common stock (as a percentage of the price of our common stock) relative to market interest rates. An increase in market interest rates, which are currently at low levels relative to historical rates, may lead prospective purchasers of shares of our common stock to expect a higher dividend yield. However, higher market interest rates would likely increase our borrowing costs and potentially decrease funds available for distribution. Thus, higher market interest rates could cause the market price of our common stock to decrease.

A substantial portion of our total outstanding common stock may be sold into the market at any time.  This could cause the market price of our common stock to drop significantly, even if our business is doing well, and make it

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difficult for us to sell equity securities in the future.  The market price of our common stock could decline as a result of sales of a large number of shares of our common stock or the perception that such sales could occur.  These sales, or the possibility that these sales may occur, also might make it difficult for us to sell equity securities in the future at times or prices that we deem appropriate.

In accordance with the registration rights agreement we entered into with STORE Holding, we filed a registration statement on Form S-3 with the Securities and Exchange Commission on behalf of STORE Holding, pursuant to which STORE Holding may offer and sell from time to time any or all of the shares of our common stock that it owns.  STORE Holding may also sell such shares in the public market in accordance with, and subject to the limitations on sales by affiliates as provided in, Rule 144 under the Securities Act. As of February 1, 2016,  we had 140,858,765 shares of common stock outstanding, of which 56,336,144 shares of our common stock were held by STORE Holding.

We filed a registration statement on Form S-8 under the Securities Act to register the offer and sale of up to 7,314,221 shares of our common stock or securities convertible into or exchangeable for shares of our common stock that may be issued pursuant to our 2012 Long Term Incentive Plan and our 2015 Omnibus Equity Incentive Plan. Such Form S-8 registration statement automatically became effective upon filing. Accordingly, recipients of shares issued pursuant to such registration statement may generally freely resell those shares in the open market, subject to limitations in the case of any such recipients who are our affiliates.

Future offerings of debt, which would be senior to our common stock upon liquidation, or preferred equity securities, which may be senior to our common stock for purposes of dividend distributions or upon liquidation, may adversely affect the market price of our common stock. In the future, we may issue debt or preferred equity securities. Upon liquidation, holders of our debt securities and shares of preferred stock and lenders with respect to other borrowings will receive distributions of our available assets prior to the holders of our common stock. Additional equity offerings, including convertible preferred stock, may dilute the holdings of our existing stockholders or otherwise reduce the market price of our common stock, or both. Holders of our common stock are not entitled to preemptive rights or other protections against dilution. Our preferred stock, if issued, could have a preference on liquidating distributions or a preference on distribution payments that could limit our ability to make distributions to holders of our common stock. Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings. Thus, our stockholders bear the risk that future offerings may reduce the market price of our common stock and dilute their stock holdings in us.

If we raise additional capital through the issuance of new equity securities, your interest in us will be diluted.  We may, and will likely, have to issue additional equity securities periodically to finance our growth.  If we raise additional capital through the issuance of new equity securities, your interest in us will be diluted, which could cause you to lose all or a portion of your investment.  If we are unable to access the public markets in the future, or if our performance or prospects decrease, we may need to consummate a private placement of our common stock or preferred stock.  In addition, any new securities we may issue, such as preferred stock, may have rights, preferences or privileges senior to those securities held by you.

If securities analysts do not publish research or reports about our company, or if they issue unfavorable commentary about us or our industry or downgrade the outlook of our common stock, the price of our common stock could decline.  The trading market for our common stock depends in part on the research and reports that third‑party securities analysts publish about our company and our industry.  One or more analysts could downgrade the outlook of our common stock or issue other negative commentary about our company or our industry.  In addition, we may be unable or slow to attract additional research coverage.  Furthermore, if one or more of these analysts cease coverage of our company, we could lose visibility in the market. As a result of one or more of these factors, the trading price of our common stock could decline and cause you to lose all or a portion of your investment.

We may change the dividend policy for our common stock in the future.  The decision to declare and pay dividends on our common stock, as well as the form, timing and amount of any such future dividends, is at the sole discretion of our board of directors and will depend on our earnings, cash flows, liquidity, financial condition, capital requirements, contractual prohibitions or other limitations under our indebtedness, the annual distribution requirements

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under the REIT provisions of the Code, state law and such other factors as our board of directors considers relevant.  Any change in our dividend policy could have a material adverse effect on the market price of our common stock.

Legislative or regulatory action could adversely affect purchasers of our common stock.  In recent years, numerous legislative, judicial and administrative changes have been made in the provisions of the federal income tax laws applicable to investments similar to an investment in our common stock.  Changes are likely to continue to occur in the future, and these changes could adversely affect our stockholders’ investment in our common stock.  These changes include but are not limited to the reduction or elimination of the corporate income tax under the Code.  Any of these changes could have an adverse effect on an investment in our common stock or on the market value or resale potential of our common stock.  Stockholders are urged to consult with their own tax advisor with respect to the impact that recent legislation may have on their investment and the status of legislative, regulatory or administrative developments and proposals and their potential effect on their investment in our stock.

 

Item 1B.  UNRESOLVED STAFF COMMENTS

None.

 

Item 2.  PROPERTIES

As of December 31, 2015, our total investment in real estate and loans approximated $4.0 billion, representing investments in 1,325 property locations,  substantially all of which are profit centers for our customers.  These investments generate our cash flows from more than 450 contracts predominantly structured as net leases, mortgage loans and combinations of leases and mortgage loans, or hybrid leases. The weighted average non‑cancelable remaining term of our leases at December 31, 2015 was approximately 14 years.

Our real estate portfolio is highly diversified.  As of December 31, 2015, our 1,325 property locations are operated by over 300 customers across 46 states.  None of our customers represented more than 3% of our portfolio at December 31, 2015, and our top ten largest customers represented less than 17% of annualized base rent and interest.  Our customers operate their businesses across more than 300 brand names or business concepts in more than 80 industries.  Our top five concepts as of December 31, 2015 were Ashley Furniture HomeStore, Gander Mountain, Applebees, Popeyes Louisiana Kitchen and Starplex Cinemas; combined, these concepts represented 12% of annualized base rent and interest.  Our top five industries as of December 31, 2015 were restaurants, movie theaters, health clubs, early childhood education centers and furniture stores.  Combined, these industries represented 51% of annualized base rent and interest.  As of December 31, 2015, only two of our single-tenant properties were vacant and not subject to a lease.

The following tables summarize the diversification of our real estate portfolio based on the percentage of base rent and interest, annualized based on rates in effect on December 31, 2015, for all of our leases, loans and direct financing receivables in place as of that date.

Diversification by Customer

As of December 31, 2015, our property locations were operated by over 300 customers and the following table identifies our ten largest customers:

 

 

 

 

 

 

 

 

    

% of

    

 

 

 

 

Annualized

 

 

 

 

 

Base Rent

 

Number

 

 

 

and

 

of

 

Customer

 

Interest

 

Properties

 

Gander Mountain Company

 

2.7

%

13

 

American Multi-Cinema, Inc. (Starplex/Showplex/AMC)

 

2.3

 

11

 

RMH Franchise Holdings, Inc. (Applebee's)

 

2.0

 

33

 

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O'Charley's LLC

 

1.7

 

30

 

At Home Stores LLC

 

1.5

 

5

 

Sailormen, Inc. (Popeyes Louisiana Kitchen)

 

1.4

 

41

 

FreedomRoads, LLC (Camping World)

 

1.4

 

8

 

Rainbow Early Education Holding, LLC

 

1.3

 

36

 

Bellisio Foods, Inc.

 

1.3

 

2

 

Conn's, Inc.

 

1.1

 

7

 

All other (293 customers)

 

83.3

 

1,139

 

Total

 

100.0

%

1,325

 

 

Diversification by Concept

As of December 31, 2015, our customers operated their businesses across more than 300 concepts and the following table identifies the top ten concepts:

 

 

 

 

 

 

 

 

    

% of

    

 

 

 

 

Annualized

 

 

 

 

 

Base Rent

 

Number

 

 

 

and

 

of

 

Customer Business Concept

 

Interest

 

Properties

 

Ashley Furniture HomeStore

 

3.1

%  

19

 

Gander Mountain

 

2.7

 

13

 

Applebee's

 

2.4

 

42

 

Popeyes Louisiana Kitchen

 

1.8

 

57

 

Starplex Cinemas

 

1.8

 

8

 

O'Charley's

 

1.7

 

30

 

At Home

 

1.5

 

5

 

FreedomRoads/Camping World

 

1.4

 

8

 

Rainbow Child Care Center

 

1.3

 

36

 

Captain D's

 

1.3

 

66

 

All other (296 concepts)

 

81.0

 

1,041

 

Total

 

100.0

%  

1,325

 

 

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Diversification by Industry

As of December 31, 2015, our customers business concepts were diversified across more than 80 industries within the service, retail and industrial sectors of the U.S. economy.   The following table summarizes those industries:

 

 

 

 

 

 

 

 

 

 

    

% of

    

 

    

 

 

 

 

Annualized

 

 

 

Building

 

 

 

Base Rent

 

Number

 

Square

 

 

 

and

 

of

 

Footage 

 

Customer Industry

 

Interest

 

Properties

 

(in thousands)

 

Service:

 

 

 

 

 

 

 

Restaurants—full service

 

16.1

%  

304

 

2,130

 

Restaurants—limited service

 

9.1

 

329

 

936

 

Movie theaters

 

7.3

 

36

 

1,407

 

Health clubs

 

7.3

 

51

 

1,663

 

Early childhood education centers

 

6.7

 

133

 

1,390

 

Colleges and professional schools

 

2.4

 

6

 

466

 

Automotive repair and maintenance facilities

 

1.7

 

48

 

183

 

All other service (35 industries)

 

21.5

 

204

 

6,324

 

Total service:

 

72.1

 

1,111

 

14,499

 

Retail:

 

 

 

 

 

 

 

Furniture stores

 

4.3

 

26

 

1,574

 

Sporting goods and hobby stores

 

3.2

 

16

 

1,050

 

Home furnishings stores

 

2.0

 

18

 

933

 

All other retail (11 industries)

 

5.7

 

59

 

2,328

 

Total retail:

 

15.2

 

119

 

5,885

 

Industrial:

 

 

 

 

 

 

 

All industrial (29 industries)

 

12.7

 

95

 

9,935

 

Total

 

100.0

%  

1,325

 

30,319

 

 

Diversification by Geography

Our portfolio is also highly diversified by geography, as our 1,325 property locations can be found in 46 of the 50 states (excluding Alaska, Delaware, Hawaii and Rhode Island).  The following table details the top ten geographical locations of the properties as of December 31, 2015:

 

 

 

 

 

 

 

 

 

% of

 

 

 

 

 

Annualized

 

 

 

 

 

Base Rent

 

 

 

 

 

and

 

Number of

 

State

 

Interest 

 

Properties

 

Texas

    

12.4

%   

105

 

Illinois

 

8.2

 

101

 

Georgia

 

6.2

 

91

 

Ohio

 

5.4

 

78

 

Tennessee

 

5.3

 

79

 

Florida

 

4.8

 

69

 

California

 

4.4

 

21

 

Arizona

 

4.3

 

46

 

Colorado

 

3.8

 

25

 

North Carolina

 

3.7

 

84

 

All other (36 states) (1)

 

41.5

 

626

 

Total

 

100.0

%  

1,325

 


(1)

Includes one property in Ontario, Canada which represents less than 0.2% of annualized base rent and interest.

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Contract Expirations

The following table sets forth the schedule of our lease, loan and direct financing receivable expirations as of December 31, 2015:

 

 

 

 

 

 

 

 

    

% of

    

 

 

 

 

Annualized

 

 

 

 

 

Base Rent

 

 

 

 

 

and

 

Number of

 

Year of Lease Expiration or Loan Maturity (1)

 

Interest

 

Properties (2)

 

2016

 

 —

 

 —

 

2017

 

0.4

 

10

 

2018

 

0.4

 

4

 

2019

 

0.8

 

8

 

2020

 

0.7

 

5

 

2021

 

1.1

 

7

 

2022

 

0.3

 

5

 

2023

 

2.6

 

36

 

2024

 

2.3

 

23

 

2025

 

2.8

 

22

 

Thereafter

 

88.6

 

1,203

 

Total

 

100.0

%  

1,323

 


(1)

Expiration year of contracts in place as of December 31, 2015 and excludes any tenant option renewal periods.

(2)

Excludes two properties which were vacant and not subject to a lease at December 31, 2015.

 

Item 3.  LEGAL PROCEEDINGS

From time to time, we become party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business and the business of our tenants.   Since our organization in May 2011, we have not been a party, as plaintiff or defendant, to any legal proceedings that we believe to be material or which, individually or in the aggregate, would be expected to have a material effect on our business, financial condition or results of operations if determined adversely to us.

Item 4.  MINE SAFETY DISCLOSURES

Not Applicable.

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PART II

Item 5.  MARKET FOR REGISTRANT’S COMMON STOCK, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

The Company’s common stock is listed on the NYSE under the symbol “STOR”.  The following table sets forth the high and low sales prices for the Company’s common stock as reported by the NYSE, and distributions declared per share of common stock, for the periods indicated.  The historical stock prices reflected in the following table are not necessarily indicative of future stock price performance.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions

 

 

    

High

    

Low

    

Declared

 

2015

 

 

 

 

 

 

 

 

 

 

Quarter ended March 31

 

$

24.06

 

$

20.80

 

$

0.2500

 

Quarter ended June 30

 

 

23.97

 

 

19.96

 

 

0.2500

 

Quarter ended September 30

 

 

22.37

 

 

19.63

 

 

0.2700

 

Quarter ended December 31

 

 

23.54

 

 

20.36

 

 

0.2700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions

 

 

    

High

    

Low

    

Declared

 

2014

 

 

 

 

 

 

 

 

 

 

Quarter ended March 31

 

$

N/A

 

$

N/A

 

$

0.2395

 

Quarter ended June 30

 

 

N/A

 

 

N/A

 

 

0.2455

 

Quarter ended September 30

 

 

N/A

 

 

N/A

 

 

0.2870

 

Quarter ended December 31

 

 

22.46

 

 

19.25

 

 

0.2178

(1)


(1)

Includes a pro-rated dividend per common share of $0.1139, or $1.00 per share on an annualized basis, for the period since the closing of our initial public offering through December 31, 2014 that was paid in January 2015.

On February 22, 2016, the closing sale price of our common stock was $25.64 per share on the NYSE, and there were 28 holders of record of the 140,879,389 outstanding shares of our common stock.  Because many of our shares of common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these record holders.  We have determined that, for federal income tax purposes, approximately 98.58% of the distributions paid in 2015 represented ordinary income and 1.42% represented a return of capital.

Distributions

The Company pays regular quarterly distributions to holders of its common stock.  Future distributions will be at the discretion of our Board of Directors and will depend on our actual funds from operations, financial condition and capital requirements, the annual distribution requirements under the REIT provisions of the Code and other factors.

Issuer Purchases of Equity Securities

The Company did not repurchase any of its equity securities during the year ended December 31, 2015.

Stock Performance Graph

The following performance chart compares, for the period from November 18, 2014 (our first trading day on the NYSE) through December 31, 2015, the cumulative total stockholder return on our common stock with that of the Standard & Poor’s 500 Composite Stock Index, or the S&P 500, and the MSCI US REIT Index.  The chart assumes

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$100.00 was invested on November 18, 2014 and assumes the reinvestment of any dividends.  The historical stock price performance reflected in the following graph is not necessarily indicative of future stock price performance.

Picture 7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period Ending

 

Index

    

11/18/2014

    

12/31/2014

    

3/31/2015

    

6/30/2015

    

9/30/2015

    

12/31/2015

 

STORE Capital Corporation

 

100

 

111.40

 

121.67

 

106.01

 

110.40

 

125.40

 

S&P 500

 

100

 

100.60

 

101.56

 

101.84

 

95.28

 

101.99

 

MSCI US REIT (RMS)

 

100

 

103.86

 

108.79

 

97.44

 

99.44

 

106.48

 

The performance graph and the related chart and text are being furnished solely to accompany this Annual Report on Form 10-K pursuant to Item 201(c) of Regulation S-K, and are not being filed for purposes of Section 18 of the Exchange Act and are not to be incorporated by reference into any filing of ours, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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Item 6.  SELECTED FINANCIAL DATA

The following tables set forth selected consolidated financial and other information of the Company as of and for each of the years ended December 31, 2015, 2014, 2013 and 2012 and for the period from inception (May 17, 2011) through December 31, 2011. The table should be read in conjunction with the Company’s consolidated financial statements and the notes thereto and Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in this Annual Report on Form 10-K.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inception

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(May 17,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Through

 

 

 

Year ended December 31,

 

December 31,

 

(Dollars in thousands, except per share data)

 

2015

 

2014

 

2013

 

2012

 

2011

 

Statement of Operations Data:

    

 

    

    

 

    

 

 

    

    

 

    

    

 

    

 

Total revenues

 

$

284,762

 

$

190,441

 

$

108,904

 

$

40,610

 

$

3,860

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

81,782

 

 

67,959

 

 

39,180

 

 

11,472

 

 

1,120

 

Transaction costs

 

 

1,156

 

 

2,804

 

 

2,643

 

 

387

 

 

446

 

Property costs

 

 

1,515

 

 

473

 

 

127

 

 

7

 

 

 

General and administrative

 

 

27,972

 

 

19,494

 

 

14,132

 

 

10,362

 

 

4,024

 

Depreciation and amortization

 

 

88,615

 

 

57,025

 

 

30,349

 

 

11,015

 

 

964

 

Provision for impairment of real estate

 

 

1,000

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

Total expenses

 

 

202,040

 

 

147,755

 

 

86,431

 

 

33,243

 

 

6,554

 

Income (loss) from continuing operations before income taxes

 

 

82,722

 

 

42,686

 

 

22,473

 

 

7,367

 

 

(2,694)

 

Income tax expense

 

 

274

 

 

180

 

 

155

 

 

70

 

 

5

 

Income (loss) from continuing operations

 

 

82,448

 

 

42,506

 

 

22,318

 

 

7,297

 

 

(2,699)

 

Income from discontinued operations, net of taxes

 

 

 —

 

 

1,140

 

 

3,995

 

 

879

 

 

677

 

Income (loss) before gain on dispositions of real estate investments

 

 

82,448

 

 

43,646

 

 

26,313

 

 

8,176

 

 

(2,022)

 

Gain on dispositions of real estate investments

 

 

1,322

 

 

4,493

 

 

 

 

 

 

 

Net income (loss)

 

$

83,770

 

$

48,139

 

$

26,313

 

$

8,176

 

$

(2,022)

 

Per Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations—basic and diluted

 

$

0.68

 

$

0.59

 

$

0.44

 

$

0.26

 

$

(0.14)

 

Net income (loss)—basic and diluted

 

 

0.68

 

 

0.61

 

 

0.52

 

 

0.30

 

 

(0.11)

 

Cash dividends declared

 

 

1.0400

 

 

0.9898

 

 

0.8743

 

 

0.3509

 

 

 

Balance Sheet Data (at period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate investments, at cost(1)

 

$

3,766,600

 

$

2,694,557

 

$

1,643,635

 

$

870,254

 

$

230,822

 

Carrying amount of loans and direct financing receivables

 

 

213,342

 

 

111,354

 

 

66,917

 

 

41,450

 

 

4,956

 

Total investment portfolio, gross(1)

 

 

3,979,942

 

 

2,805,911

 

 

1,710,552

 

 

911,704

 

 

235,778

 

Less accumulated depreciation and amortization(1)

 

 

(184,182)

 

 

(98,671)

 

 

(42,342)

 

 

(12,005)

 

 

(999)

 

Net investments

 

 

3,795,760

 

 

2,707,240

 

 

1,668,210

 

 

899,699

 

 

234,779

 

Cash and cash equivalents

 

 

67,115

 

 

136,313

 

 

61,814

 

 

64,752

 

 

31,203

 

Total assets

 

 

3,911,388

 

 

2,882,703

 

 

1,759,204

 

 

971,463

 

 

270,220

 

Credit facilities

 

 

 —

 

 

 

 

 

 

160,662

 

 

29,971

 

Unsecured term notes payable, net

 

 

172,442

 

 

 

 

 

 

 

 

 

Non-recourse debt obligations of consolidated special purpose entities, net

 

 

1,597,505

 

 

1,253,242

 

 

964,681

 

 

298,211

 

 

13,252

 

Total liabilities

 

 

1,851,595

 

 

1,300,019

 

 

985,290

 

 

474,549

 

 

49,258

 

Total stockholders’ equity

 

 

2,059,793

 

 

1,582,684

 

 

773,914

 

 

496,914

 

 

220,962

 

Other Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds from Operations(2)

 

$

171,705

 

$

99,383

 

$

54,843

 

$

19,014

 

$

(982)

 

Adjusted Funds from Operations(2)

 

$

183,475

 

$

109,876

 

$

61,739

 

$

21,701

 

$

(17)

 

Number of investment property locations (at period end)

 

 

1,325

 

 

947

 

 

622

 

 

371

 

 

112

 

% of owned properties subject to a lease contract (at period end)

 

 

99.8

%  

 

100

%  

 

100

%  

 

100

%  

 

100

%  


(1)

Includes the dollar amount of investments ($9.4 million) and the accumulated depreciation and amortization ($0.4 million) related to real estate investments held for sale at December 31, 2013.

(2)

For definitions and reconciliations of Funds from Operations and Adjusted Funds from Operations, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non‑GAAP Measures.”

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Item 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our financial condition and results of operations should be read together with the “Selected Consolidated Financial Data” and “Business” sections, as well as the consolidated financial statements and related notes in Part II, Item 8 in this Annual Report on Form 10-K. Some of the information contained in this discussion and analysis or set forth elsewhere in this report, including information with respect to our plans and strategy for our business, includes forward‑looking statements that involve risks and uncertainties. You should read “Item 1A. Risk Factors” and the “Forward‑Looking Statements” sections of this Annual Report for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by these forward‑looking statements.

Overview

We were formed in 2011 to invest in and manage Single Tenant Operational Real Estate, or STORE Properties, which is our target market and the inspiration for our name.  A STORE Property is a property location at which a company operates its business and generates sales and profits, which makes the location a profit center and, therefore, fundamentally important to that business. Examples of operational real estate include restaurants, early childhood education centers, furniture stores, health clubs, movie theaters and sporting goods and hobby stores.  By acquiring the real estate from the operators and then leasing the real estate back to them, they become our long‑term tenants, and we refer to them as our customers. We provide a source of long‑term capital to our customers by enabling them to avoid the need to incur debt and employ equity in order to finance the real estate that is essential to their business.

We are a Maryland corporation organized as an internally managed real estate investment trust, or REIT.  As a REIT, we will generally not be subject to federal income tax to the extent that we distribute all of our taxable income to our stockholders and meet other requirements.    

The growth of our Company from inception in May 2011 until November 2014 was funded by STORE Holding Company, LLC, or STORE Holding, a Delaware limited liability company, substantially all of which is owned, directly or indirectly, by certain investment funds managed by Oaktree Capital Management, L.P.  In November 2014, we took the Company public on the New York Stock Exchange and now our common stock trades under the ticker symbol “STOR”.  STORE Holding is still our largest stockholder, owning approximately 49.9% of our outstanding common stock as of December 31, 2015. Subsequent to December 31, 2015, STORE Holding sold 14,000,000 shares of common stock from its holdings of our common stock, and now holds just under 40% of the outstanding shares of our common stock.

Since our inception in 2011, we have selectively originated a real estate investment portfolio totaling approximately $4.0 billion, consisting of investments in 1,325 property locations across 46 states. All of the real estate we acquire is held by our wholly-owned subsidiaries, many of which are special purpose bankruptcy remote entities formed to facilitate the financing of our real estate. We predominantly acquire our single‑tenant properties directly from our customers in sale‑leaseback transactions where our customers sell us their operating properties and then simultaneously enter into a long‑term triple‑net lease with us to lease the property back. Accordingly, our properties are fully occupied and under lease from the moment we acquire them.

We generate our cash from operations primarily through the monthly lease payments, or “base rent”, we receive from our customers under their long‑term leases with us. We also receive interest payments on loans receivable, which are a small part of our portfolio. We refer to the monthly scheduled lease and interest payments due from our customers as “base rent and interest”. Most of our leases contain lease escalations every year or every several years that are based on the lesser of the increase in the Consumer Price Index, or CPI, or a stated percentage (if such contracts are expressed on an annual basis, currently averaging approximately 1.7%), which allows the monthly lease payments we receive to rise somewhat in an inflationary economic environment. As of December 31, 2015, approximately 97% of our leases (based on annualized base rent) are referred to as “triple net”, which means that our customer is responsible for all of the maintenance, insurance and property taxes associated with the properties they lease from us, including any increases in those costs that may occur as a result of inflation. The remaining leases have some landlord responsibilities, generally related to maintenance and structural component replacement that may be required on such properties in the future,

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although we do not currently anticipate incurring significant capital expenditures or property costs under such leases. Since our properties are single‑tenant properties, almost all of which are under long‑term leases, it is not necessary for us to perform any significant ongoing leasing activities on our properties. As of December 31, 2015, the weighted average remaining term of our leases (calculated based on annualized base rent) was approximately 14 years, excluding renewal options, which are exercisable at the option of our tenants upon expiration of their base lease term. Leases approximating 99% of our base rent as of that date provide for tenant renewal options (generally two to four five‑year options) and leases approximating 7% of our base rent provide our tenant the option, at their election, to purchase the property from us at a specified time or times (generally at the greater of the then‑fair market value or our cost).

Liquidity and Capital Resources

At the beginning of 2015, our real estate investment portfolio totaled $2.8 billion, consisting of investments in 947 property locations with base rent and interest due from our customers aggregating approximately $19.8 million per month, excluding future rent payment escalations. By December 31, 2015, our investment portfolio had grown to approximately $4.0 billion, consisting of investments in 1,325 property locations with base rent and interest aggregating approximately $27.7 million per month. Substantially all of our cash from operations is generated by our real estate portfolio.

Our primary cash expenditures are the monthly principal and interest payments we make on the debt we use to finance our real estate investment portfolio and the general and administrative expenses of managing the portfolio and operating our business. Since substantially all of our leases are triple net, our tenants are generally responsible for the maintenance, insurance and property taxes associated with the properties they lease from us.  When a property becomes vacant through a tenant default or expiration of the lease term with no tenant renewal, we would incur these property costs during the time it would take to locate a substitute tenant.  Also, we will occasionally incur nominal property‑level expenses that are not paid by our customers, such as the costs of periodically making site inspections of our properties. During 2015, leases associated with three properties due to expire in 2015 were renewed by the tenant and one property, which was vacated upon lease expiration, was leased to another of our tenants.  There are no leases scheduled to expire in the coming year.  As of December 31, 2015, two of our 1,325 property locations were vacant and not subject to a lease which represents a 99.8% occupancy rate.  We expect to incur some property costs from time to time during periods in which properties that become vacant are being remarketed; however, we do not anticipate that such costs will be significant to our operations.

We intend to continue to grow through additional real estate investments. To accomplish this objective, we must continue to identify real estate acquisitions which are consistent with our underwriting guidelines and raise future additional capital. We acquire real estate with a combination of debt and equity capital and with cash from operations that is not otherwise distributed to our stockholders in the form of dividends.

Our debt capital is initially provided on a short-term, temporary basis through our variable‑rate unsecured revolving credit facility with a group of banks.  We manage our long-term leverage position through the strategic and economic issuance of long-term fixed-rate debt on both a secured and unsecured basis. By matching the expected cash inflows from our long‑term real estate leases with the expected cash outflows of our long‑term fixed‑rate debt, we “lock in”, for as long as is economically feasible, the expected positive difference between our scheduled cash inflows on the leases and the cash outflows on our debt payments. Our weighted average debt maturity at December 31, 2015 was approximately seven years.  By “locking in” this difference, or “spread”, we seek to reduce the risk that increases in interest rates would adversely impact our profitability.  In addition, we may use various financial instruments designed to mitigate the impact of interest rate fluctuations on our cash flows and earnings, including hedging strategies such as interest rate caps, depending on our analysis of the interest rate environment and the costs and risks of such strategies. As of December 31, 2015, essentially all of our long‑term debt was fixed‑rate debt, or was effectively converted to a fixed‑rate for the term of the debt.  We target a level of debt within a range of six to seven times our earnings before interest, taxes, depreciation and amortization.

The long-term debt we have issued as of December 31, 2015 is comprised, most significantly, of secured non-recourse borrowings with a weighted average loan-to-cost ratio of approximately 67% and approximately 61% of our investment portfolio serves as collateral for this long-term debt.  To date, our primary secured debt financing strategy has involved our STORE Master Funding secured debt program described below. To a lesser extent, we may also, from

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time to time, obtain fixed-rate non‑recourse mortgage financing from banks and insurance companies secured by specific property we pledge as collateral.  The remaining portfolio properties not serving as collateral for our secured debt, aggregating approximately $1.56 billion, are unencumbered and this unencumbered pool of properties provides us flexibility for future secured or unsecured borrowings or as substitute collateral for existing indebtedness.  During 2015, we received an investment-grade credit rating of BBB- from Fitch Ratings, Inc.,  positioning us to issue senior unsecured long-term debt, which we did for the first time in November 2015.

The availability of debt to finance commercial real estate in the United States can, at times, be impacted by economic and other factors that are beyond our control. An example of adverse economic factors occurred during the recession of 2007 to 2009 when availability of debt capital for commercial real estate was significantly curtailed. We seek to reduce the risk that long‑term debt capital may be unavailable to us by maintaining the flexibility to issue long-term debt in multiple debt capital markets, both secured and unsecured, and by limiting the period between the time we acquire our real estate and the time we finance our real estate with long‑term debt. In addition, we have arranged our short‑term credit facility (described below) to have a multi‑year term in order to reduce the risk that short‑term real estate financing would not be available to us. As we grow our real estate portfolio, we also intend to manage our debt maturities to reduce the risk that a significant amount of our debt will mature in any single year in the future. Because our long-term debt generally requires monthly payments of principal, in addition to the monthly interest payments, the resulting principal amortization also reduces our refinancing risk upon maturity of the debt.  As our outstanding debt matures, we may refinance the maturing debt as it comes due or choose to repay it using cash and cash equivalents or our revolving credit facility.  In July 2015, we refinanced debt that was scheduled to mature in August 2015 with $21.1 million in nonrecourse fixed-rate debt due in August 2025; the interest rate on the new debt is nearly one percentage point less than the rate on the maturing debt.  As of December 31, 2015, we had no significant near-term debt maturities, with just $23.1 million of balloon payments along with scheduled principal payments of $67.3 million due in the next three years.

We intend to continue to prudently raise debt capital through several different markets, including the asset‑backed and commercial mortgage‑backed securities markets, as well as the market for senior unsecured term debt financing. We believe that having access to multiple debt markets increases our financing flexibility because different debt markets may attract different debt investors, thus increasing our access to a potentially larger pool of debt investors. Also, a particular debt market may be more competitive than another at any particular point in time.

Typically, we use our unsecured credit facility to acquire our real estate properties, until those borrowings are sufficiently large to warrant the economic issuance of long-term fixed-rate debt, the proceeds from which we use to repay the amounts outstanding under our revolving credit facility. In September 2015, we expanded our $300 million unsecured revolving credit facility to $400 million. The amended facility, which includes an expanded accordion feature that allows the size of the facility to be increased up to $800 million, matures in September 2019 and includes a one-year extension option subject to certain conditions and the payment of a 0.15% extension fee. This facility bears interest at a rate selected by us equal to either (1) one-month LIBOR plus a leverage-based credit spread ranging from 1.35% to 2.15%, or (2) the Base Rate, as defined in the credit agreement, plus a leverage-based credit spread ranging from 0.35% to 1.15% and also includes a fee of either 0.15% or 0.25% assessed on the average unused portion of the facility, depending upon the amount of borrowings outstanding. Availability under the facility is limited to 50% of the value of our eligible unencumbered assets at any point in time. At December 31, 2015, we had no amounts outstanding on this credit facility and we had a pool of unencumbered assets aggregating approximately $1.56 billion, substantially all of which can serve as eligible unencumbered assets under the credit facility.  Covenants under this facility include: maximum leverage of 65%, minimum EBITDA to fixed charges ratio of 1.5 to 1, minimum net worth of $1 billion plus 75% of new net equity proceeds, and a maximum dividend payout ratio limited to 95% of Funds from Operations, all as defined in the credit agreement. The facility is recourse to us and includes a guaranty from STORE Capital Acquisitions, LLC, one of our direct wholly‑owned subsidiaries. We remain in compliance with these covenants.

As summarized below, just over half of our real estate investment portfolio serves as collateral for outstanding borrowings under our STORE Master Funding debt program. Through this debt program, we arrange for bankruptcy remote, special purpose entity subsidiaries to issue multiple series of investment‑grade asset‑backed net‑lease mortgage notes, or ABS notes, from time to time as additional collateral is added to the collateral pool. The ABS notes are generally issued to institutional investors through the asset‑backed securities market. These ABS notes are issued in two classes, Class A and Class B. The Class A notes, which represent approximately 70% of the appraised value of the

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underlying real estate collateral, are currently rated A+ by Standard & Poor’s Ratings Services. The Class A notes generally require monthly payments of principal and interest with balloon payments due at their respective maturity dates, either seven or 10 years from the date of issuance. We have historically retained the Class B notes, which are subordinated to the Class A notes as to principal repayment. The Class B notes, currently rated BBB by Standard & Poor’s Ratings Services, aggregate $108.0 million in principal amount outstanding at December 31, 2015 and are held by one of our bankruptcy remote, special purpose entity subsidiaries. The Class B notes are not reflected in our financial statements because they eliminate in consolidation. Since these Class B notes are issued and outstanding, they provide us with additional financial flexibility in that we may sell them to a third party in the future or use them as collateral for short‑term borrowings as we have done from time to time in the past.

The ABS notes outstanding at December 31, 2015 totaled $1.4 billion in Class A principal amount supported by a collateral pool valued at $2.1 billion representing 806 property locations operated by 175 customers.  The amount of debt that can be issued in any new series is determined by the structure of the transaction and the amount of collateral that has been added to the pool. In addition, the issuance of each new series of notes is subject to the satisfaction of several conditions, including that there is no event of default on the existing note series and that the issuance will not result in an event of default on, or the credit rating downgrade of, the existing note series.

A significant portion of our cash flows is generated by the special purpose entities comprising our STORE Master Funding debt program. For the year ended December 31, 2015, excess cash flow, after payment of debt service and servicing and trustee expenses, totaled $73 million on cash collections of $161 million, which represents an overall ratio of cash collections to debt service of greater than 1.80 to 1 on the STORE Master Funding program. If at any time the debt service coverage ratio (as defined in the STORE Master Funding program documents) generated by the collateral pool is less than 1.3 to 1, excess cash flow from the STORE Master Funding entities will be deposited into a reserve account to be used for payments to be made on the net‑lease mortgage notes, to the extent there is a shortfall. We anticipate that the debt service coverage ratio for the STORE Master Funding program will remain well above program minimums.

To complement STORE Master Funding, we have recently received an investment-grade credit rating of BBB- from Fitch Ratings, Inc., providing us with the ability to also issue senior unsecured long-term debt, which we did for the first time in November 2015.  This inaugural issuance was a private placement of $175 million principal amount of investment-grade senior unsecured notes.  The notes were sold in two series consisting of $75 million of 4.95% Series A Notes due in November 2022 and $100 million of 5.24% Series B Notes due in November 2024. These fixed-rate notes require semi-annual payment of interest only until maturity.

From time to time, we may also obtain debt in discrete transactions through other bankruptcy remote, special purpose entity subsidiaries, which debt is solely secured by specific real estate assets and is generally non‑recourse to us (subject to certain customary limited exceptions). These discrete borrowings are generally in the form of traditional mortgage notes payable, with principal and interest payments due monthly and balloon payments due at their respective maturity dates, which typically range from seven to 10 years from the date of issuance. We generally obtain discrete secured borrowings from institutional commercial mortgage lenders, who subsequently securitize (that is, sell) the loans within the commercial mortgage‑backed securities, or CMBS, market. We have also occasionally used similar types of financing from insurance companies and commercial banks. Our secured borrowings contain various covenants customarily found in mortgage notes, including a limitation on the issuing entity’s ability to incur additional indebtedness on the underlying real estate. Certain of the notes also require the posting of cash reserves with the lender or trustee if specified coverage ratios are not maintained by the special purpose entity or the tenant. 

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As of December 31, 2015, our aggregate secured and unsecured long‑term debt had an aggregate outstanding principal balance of $1.8 billion,  a weighted average maturity of 6.8 years and a weighted average interest rate of 4.7%.    The following is a summary of the outstanding balance of our borrowings as well as a summary of the portion of our real estate investment portfolio that is either pledged as collateral for these borrowings or is unencumbered as of December 31, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Investment Amount

 

 

 

 

 

 

Special Purpose

 

 

 

 

 

 

 

 

 

Outstanding

 

Entity

 

All Other

 

 

 

 

(In millions)

 

Borrowings

 

Subsidiaries

 

Subsidiaries

 

Total

 

STORE Master Funding net-lease mortgage notes payable

    

$

1,434

    

$

2,089

    

$

    

$

2,089

 

Other mortgage notes payable

 

 

196

 

 

328

 

 

 

 

328

 

Unsecured term notes payable

 

 

175

 

 

 —

 

 

 —

 

 

 —

 

Total long-term debt

 

 

1,805

 

 

2,417

 

 

 —

 

 

2,417

 

Unsecured credit facility

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

Unencumbered real estate assets

 

 

 

 

1,082

 

 

481

 

 

1,563

 

 

 

$

1,805

 

$

3,499

 

$

481

 

$

3,980

 

 

Our decision to use STORE Master Funding, other non‑recourse traditional mortgage loan borrowings or senior unsecured term debt depends on borrowing costs, debt terms, debt flexibility and the tenant and industry diversification levels of the real estate pool. As we continue to acquire real estate, we expect to balance the overall degree of leverage on our portfolio by growing a pool of portfolio assets that are unencumbered. A growing pool of unencumbered assets will increase our financial flexibility by providing us with assets that could support senior unsecured financing or that could serve as substitute collateral for existing debt. Should market factors, which are beyond our control, adversely impact our access to these debt sources at economically feasible rates, our ability to grow through additional real estate acquisitions will be limited to any undistributed amounts available from our operations and any additional equity capital raises.

In June 2015, we completed a follow-on stock offering in which the Company issued and sold 11,562,500 shares of our common stock and STORE Holding sold 9,712,500 shares from its holdings of the Company’s common stock at a price to the public of $20.25 per share.  In December 2015, we completed another stock offering in which the Company issued and sold 14,000,000 shares of our common stock and STORE Holding sold 2,100,000 shares from its holdings of the Company’s common stock at a price to the public of $22.00 per share.  We generated approximately $521 million of net proceeds from these offerings which were used to pay down amounts then outstanding on our credit facility and to fund real estate acquisitions.  We do not receive any proceeds from shares sold by STORE Holding.  At December 31, 2015, there were 140,858,765 shares of our common stock outstanding, of which 70,336,144 shares were still held by STORE Holding, representing a 49.9% ownership.  Subsequent to December 31, 2015, STORE Holding sold 14,000,000 shares from its holdings of our common stock and now holds just under 40% of our outstanding common stock. These sales of our common stock by STORE Holding also serve to alter the composition of our Board of Directors; STORE Holding will vacate two of their board seats in early 2016 and reduce their board presence from five to three of our nine directors.

As shown in the following table, net cash provided by operating activities rose each year primarily due to the increase in the size of our real estate investment portfolio. Our real estate investing activities have grown in volume as we continue to make headway into our target market by identifying and acquiring real estate, primarily through sale‑leaseback transactions. Real estate investment activity was funded with a combination of cash from operations, proceeds from the issuance of debt and proceeds from the issuance of common stock. Our investing activities in the table below are shown net of cash proceeds from the sales of 13 properties in 2015 aggregating $38.7 million, 16 properties in 2014 aggregating $39.4 million and 17 properties in 2013 aggregating $40.7 million. We paid dividends to our stockholders totaling $107.9 million in 2015, $64.6 million in 2014 and $51.6 million in 2013. Dividends paid during 2015 include dividends paid in January of 2015 totaling $13.1 million which represented a pro-rated dividend for the period from the closing of our initial public offering, or IPO, through December 31, 2014. Our quarterly dividend was increased 8% during the third quarter of 2015 from an annualized $1.00 per common share to an annualized $1.08 per common share.  Cash for the increase in dividends between years resulted primarily from the increase in cash provided

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by our operations. Cash and cash equivalents totaled $67.1 million, $136.3 million and $61.8 million at December 31, 2015, 2014 and 2013, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

(In thousands)

 

2015

 

2014

 

2013

 

Net cash provided by operating activities

    

$

185,897

    

$

108,106

    

$

54,934

    

Net cash used in investing activities

 

 

(1,177,814)

 

 

(1,059,814)

 

 

(786,515)

 

Net cash provided by financing activities

 

 

922,719

 

 

1,026,207

 

 

728,643

 

Net (decrease) increase in cash and cash equivalents

 

 

(69,198)

 

 

74,499

 

 

(2,938)

 

Cash and cash equivalents, beginning of year

 

 

136,313

 

 

61,814

 

 

64,752

 

Cash and cash equivalents, end of year

 

$

67,115

 

$

136,313

 

$

61,814

 

Management believes that the cash generated by our operations, our current borrowing capacity on our expanded revolving credit facility and our access to long‑term debt capital, will be sufficient to fund our operations for the foreseeable future and allow us to acquire the real estate for which we currently have made commitments. In order to continue to grow our real estate portfolio in the future beyond the excess cash generated by our operations and our ability to borrow, we intend to raise additional equity capital through the sale of our common stock.

Off‑Balance Sheet Arrangements

We have no off‑balance sheet arrangements as of December 31, 2015.

Contractual Obligations

The following table provides information with respect to our contractual commitments as of December 31, 2015, including any guaranteed or minimum commitments under contractual obligations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment Due by Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

More than

 

 

 

 

 

 

1 year

 

1 - 3 years

 

3 - 5 years

 

5 years

 

(In thousands)

 

Total

 

(2016)

 

(2017 - 2018)

 

(2019 - 2020)

 

(after 2020)

 

Credit facility (1)

    

$

 —

    

$

    

$

    

$

    

$

 

Long-term debt obligations (secured and unsecured):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

 

1,805,474

 

 

28,131

 

 

62,269

 

 

547,614

 

 

1,167,460

 

Interest

 

 

540,843

 

 

84,724

 

 

164,426

 

 

137,255

 

 

154,438

 

Commitments to customers (2)

 

 

59,562

 

 

59,024

 

 

538

 

 

 —

 

 

 —

 

Corporate office operating lease obligations

 

 

836

 

 

326

 

 

510

 

 

 —

 

 

 —

 

Total

 

$

2,406,715

 

$

172,205

 

$

227,743

 

$

684,869

 

$

1,321,898

 


(1)

We had no balances outstanding on our unsecured credit facility as of December 31, 2015

(2)

Represents our commitments to fund improvements to real estate properties previously acquired; these construction improvement commitments are similar to property acquisitions as they will result in increases to rental revenue due under the related contracts.

Recently Issued Accounting Pronouncements

See Note 2 to the December 31, 2015 consolidated financial statements.

Critical Accounting Policies and Estimates

Our discussion and analysis of our historical financial condition and results of operations is based upon our consolidated financial statements which are prepared in accordance with U.S. generally accepted accounting principles, or GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and

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liabilities and the reported amounts of revenues and expenses during the reporting period. Although management believes its estimates are reasonable, actual results could differ materially from those estimates. The accounting policies discussed below are considered critical because changes to certain judgments and assumptions inherent in these policies could affect the financial statements. For more information on our accounting policies, please refer to the notes to our consolidated financial statements.

Accounting for Real Estate Investments

We record the acquisition of real estate properties at cost, including acquisition and closing costs. We allocate the cost of real estate properties to the tangible and intangible assets and liabilities acquired based on their estimated relative fair values. Real estate properties subject to an existing in‑place lease at the date of acquisition are recorded as business combinations, and each tangible and intangible asset and liability acquired is recorded at fair value. Management uses multiple sources to estimate fair value, including independent appraisals and information obtained about each property as a result of its pre‑acquisition due diligence and its marketing and leasing activities. We expense transaction costs associated with real estate acquisitions accounted for as business combinations in the period incurred. Properties classified as held for sale are recorded at the lower of the carrying value or the fair value, less anticipated closing costs.

Lease Intangibles

In‑place lease intangibles are valued based on managements estimates of lost rent and carrying costs during the time it would take to locate a tenant if the property were vacant, considering current market conditions and costs to execute similar leases. In estimating lost rent and carrying costs, management considers market rents, real estate taxes, insurance, costs to execute similar leases including leasing commissions and other related costs. The value assigned to in‑place leases is amortized on a straight‑line basis as a component of depreciation and amortization expense typically over the remaining term of the related leases.

The fair value of any above‑market and below‑market leases is estimated based on the present value of the difference between the contractual amounts to be paid pursuant to the in‑place lease and managements estimate of current market lease rates for the property, measured over a period equal to the remaining term of the lease. Capitalized above‑market lease intangibles are amortized over the remaining term of the respective leases as a decrease to rental revenue. Below‑market lease intangibles are amortized as an increase in rental revenue over the remaining term of the respective leases plus the fixed‑rate renewal periods on those leases, if any. Should a lease terminate early, the unamortized portion of any related lease intangible is immediately recognized in operations.

Loans and Direct Financing Receivables

We hold our loans receivable for long‑term investment. Loans receivable are carried at amortized cost, including related unamortized discounts or premiums, if any. Certain of our real estate investment transactions are accounted for as direct financing leases. We record the direct financing receivables at their net investment, determined as the aggregate minimum lease payments and the estimated residual value of the leased property less unearned income. The unearned income is recognized over the life of the related contracts so as to produce a constant rate of return on the net investment in the asset.

Impairment

We review our real estate investments and related lease intangibles periodically for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Management considers factors such as expected future undiscounted cash flows, estimated residual value, market trends (such as the effects of leasing demand and competition) and other factors in making this assessment. An asset is considered impaired if the carrying value of the asset exceeds its estimated undiscounted cash flows, and the impairment is calculated as the amount by which the carrying value of the asset exceeds its estimated fair value. Estimating future cash flows is highly subjective and such estimates could differ materially from actual results.

We periodically evaluate the collectibility of our loans receivable, including accrued interest, by analyzing the underlying property‑level economics and trends, collateral value and quality and other relevant factors in determining

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the adequacy of our allowance for loan losses. A loan is determined to be impaired when, in management’s judgment based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Specific allowances for loan losses are provided for impaired loans on an individual loan basis in the amount by which the carrying value exceeds the estimated fair value of the underlying collateral less disposition costs.

Revenue Recognition

We lease real estate to our tenants under long‑term net leases that are predominantly classified as operating leases. Direct costs associated with lease origination, offset by any lease origination fees received, are deferred and amortized over the related lease term as an adjustment to rental revenue. Substantially all of the leases are triple‑net, which provide that the lessees are responsible for the payment of all property operating expenses, including property taxes, maintenance and insurance.

Our leases generally provide for rent escalations throughout the lease terms. For leases that provide for specific contractual escalations, rental revenue is recognized on a straight‑line basis so as to produce a constant periodic rent over the term of the lease. Accordingly, accrued rental revenue, calculated as the aggregate difference between the rental revenue recognized on a straight‑line basis and scheduled rents, represents unbilled rent receivables that we will receive only if the tenants make all rent payments required through the expiration of the lease. We provide an estimated reserve for uncollectible straight‑line rental revenue based on managements assessment of the risks inherent in those lease contracts, giving consideration to industry default rates for long‑term receivables. Leases that have contingent rent escalators indexed to future increases in the CPI may adjust over a one‑year period or over multiple‑year periods. Generally, these escalators increase rent at the lesser of (a) 1 to 1.25 times the increase in the CPI over a specified period or (b) a fixed percentage. Because of the volatility and uncertainty with respect to future changes in the CPI, our inability to determine the extent to which any specific future change in the CPI is probable at each rent adjustment date during the entire term of these leases and our view that the multiplier does not represent a significant leverage factor, increases in rental revenue from leases with this type of escalator are recognized only after the changes in the rental rates have actually occurred. For leases that have contingent rentals that are based on a percentage of the tenants gross sales, we recognize contingent rental revenue when the threshold upon which the contingent lease payment is based is actually reached.

We suspend revenue recognition if the collectibility of amounts due pursuant to a lease is not reasonably assured or if the tenants monthly lease payments become more than 60 days past due, whichever is earlier. In the event that the collectibility of a receivable with respect to any tenant is in doubt, a provision for uncollectible amounts will be established or a direct write‑off of the specific rent receivable will be made.

We recognize interest income on loans receivable using the effective interest method applied on a loan‑by‑loan basis. Direct costs associated with originating loans are offset against any related fees received and the balance, along with any premium or discount, is deferred and amortized as an adjustment to interest income over the term of the related loan receivable using the effective interest method. A loan receivable is placed on nonaccrual status when the loan has become 60 days past due, or earlier if management determines that full recovery of the contractually specified payments of principal and interest is doubtful. While on nonaccrual status, interest income is recognized only when received.

Share‑Based Compensation

Certain of our directors and key employees have been granted long‑term incentive awards, including restricted shares and stock units of our common stock and profits interests units issued by STORE Holding, which provide them with equity interests as an incentive to remain in our service and align executives interests with those of our equity holders. We estimate the fair value of restricted stock at the date of grant and recognize that amount in general and administrative expense ratably over the vesting period at the greater of the amount amortized on a straight‑line basis or the amount vested. The fair value of the restricted stock is based on the per‑share price of the common stock on the date of the grant. Prior to our IPO, the fair value was based on the per-share price of the common stock issued in our private equity offerings.  We estimate the fair value of the market-based restricted stock units granted to our executive officers using a Monte Carlo simulation model on the day of grant and recognize that amount on a tranche by tranche basis ratably over the vesting periods.

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Depreciation

Our real estate portfolio is depreciated using the straight‑line method over the estimated remaining useful life of the properties, which generally ranges from 30 to 40 years for buildings and is 15 years for land improvements. Any properties classified as held for sale are not depreciated.

Income Taxes

We have made an election to qualify, and believe we are operating in a manner to continue to qualify, as a REIT for federal income tax purposes beginning with our initial taxable year ended December 31, 2011. As a REIT, we will generally not be subject to federal income taxes to the extent that we distribute all of our taxable income to our stockholders and meet other specific requirements; however, we are still subject to certain state and local income taxes and to federal income and excise tax on our undistributed income.

Derivative Instruments and Hedging Activities

We may enter into derivatives contracts as part of our overall financing strategy to manage our exposure to changes in interest rates associated with current and/or future debt issuances. We do not use derivatives for trading or speculative purposes. We record our derivatives on the balance sheet at fair value as either an asset or liability. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the earnings effect of the hedged forecasted transactions in a cash flow hedge.

Results of Operations

Overview

As of December 31, 2015, our real estate investment portfolio had grown to approximately $4.0 billion, consisting of investments in 1,325 property locations in 46 states, operated by over 300 customers in various industries. Approximately 95% of the real estate investment portfolio represents commercial real estate properties subject to long‑term leases, 5% represents mortgage loan and direct financing receivables primarily on commercial real estate buildings (located on land we own and lease to our customers) and a nominal amount represents loans receivable secured by our tenants’ other assets. Of our 1,325 property locations, only two were vacant and not subject to a lease as of December 31, 2015.

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Year Ended December 31, 2015 Compared to Year Ended December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

 

December 31,

 

Increase

 

 

(In thousands)

 

2015

 

2014

 

(Decrease)

 

 

Total revenues

 

$

284,762

    

$

190,441

    

$

94,321

 

    

Expenses:

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

81,782

 

 

67,959

 

 

13,823

 

 

Transaction costs

 

 

1,156

 

 

2,804

 

 

(1,648)

 

 

Property costs

 

 

1,515

 

 

473

 

 

1,042

 

 

General and administrative

 

 

27,972

 

 

19,494

 

 

8,478

 

 

Depreciation and amortization

 

 

88,615

 

 

57,025

 

 

31,590

 

 

Provision for impairment of real estate

 

 

1,000

 

 

 —

 

 

1,000

 

 

Total expenses

 

 

202,040

 

 

147,755

 

 

54,285

 

 

Income from continuing operations before income taxes

 

 

82,722

 

 

42,686

 

 

40,036

 

 

Income tax expense

 

 

274

 

 

180

 

 

94

 

 

Income from continuing operations

 

 

82,448

 

 

42,506

 

 

39,942

 

 

Income from discontinued operations

 

 

 —

 

 

1,140

 

 

(1,140)

 

 

Income before gain on dispositions of real estate

 

 

82,448

 

 

43,646

 

 

38,802

 

 

Gain on dispositions of real estate

 

 

1,322

 

 

4,493

 

 

(3,171)

 

 

Net income

 

$

83,770

 

$

48,139

 

$

35,631

 

 

 

Revenues

The increase in revenues year over year is driven primarily by the growth in the size of our real estate investment portfolio, which generated additional rental revenues and interest income. The weighted average real estate investment amounts outstanding during the years were $3.39 billion in 2015 and $2.24 billion in 2014. Our real estate investment portfolio grew from $2.8 billion in gross investment amount representing 947 properties at the end of 2014 to approximately $4.0 billion in gross investment amount representing 1,325 properties at December 31, 2015. Our real estate investments were made throughout the years presented and were not all outstanding for the entire period; accordingly, the vast majority of the increase in revenues between years is related to recognizing revenue in 2015 on acquisitions that were made during the latter part of 2014 and early 2015.  Similarly, the full revenue impact of acquisitions made during 2015 will not be seen until 2016.  

The initial rental or capitalization rates we receive on sale‑leaseback transactions, calculated as the initial annualized base rent divided by the purchase price of the properties, vary from transaction to transaction based on many factors, such as the terms of the lease, the property type including the property’s real estate fundamentals and the market rents in the area on the various types of properties we target across the United States. The majority of our transactions are sale‑leaseback transactions where we acquire the property and simultaneously negotiate a lease directly with the tenant based on their business needs. There are also online commercial real estate auction marketplaces for real estate transactions; properties acquired through these online marketplaces are often subject to existing leases and offered by third‑party sellers. In general, because we provide tailored customer lease solutions in sale-leaseback transactions, our lease rates historically have been higher and subject to less short-term market influences than what we have seen in the auction marketplace as a whole. In addition, since our real estate leases represent an alternative for our customers to other forms of corporate capitalization, lease rates can also be influenced by changes in interest rates and overall capital availability. During 2015, we experienced a small decrease in the weighted average lease rate achieved as compared to 2014 and, similar to our most recent experience, our expectations for the future include the possibility that we could see flat to a slight compression in lease rates. The weighted average initial real estate capitalization rate on the properties we acquired during 2015 (calculated as the initial annualized base rent divided by the purchase price of the properties) was 8.1% as compared to 8.3%  for properties acquired during 2014.

 

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Interest Expense

The increases in interest expense, as summarized in the table below, are due primarily to an increase in long‑term borrowings used to partially fund the acquisition of properties for our growing real estate investment portfolio. We funded the growth in our real estate investment portfolio with added equity and long‑term fixed-rate debt, using our credit facilities to temporarily finance the properties we acquired.

The following table summarizes our interest expense for the periods.

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

 

 

 

December 31,

 

 

 

(Dollars in thousands)

 

2015

 

2014

 

 

 

Interest expense - credit facilities (includes non-use fees)

 

$

2,084

    

$

3,084

 

 

    

Interest expense - long-term debt (secured and unsecured)

 

 

73,950

 

 

58,304

 

 

 

Capitalized interest

 

 

(759)

 

 

(575)

 

 

 

Amortization of deferred financing costs and other

 

 

6,507

 

 

7,146

 

 

 

Total interest expense

 

$

81,782

 

$

67,959

 

 

 

Credit facilities:

 

 

 

 

 

 

 

 

 

Average debt outstanding

 

$

75,301

 

$

79,519

 

 

 

Average interest rate (includes non-use fees)

 

 

2.8

%  

 

3.9

%  

 

 

Long-term debt (secured and unsecured):

 

 

 

 

 

 

 

 

 

Average debt outstanding

 

$

1,555,143

 

$

1,188,842

 

 

 

Average interest rate

 

 

4.8

%  

 

4.9

%  

 

 

 

The average amount of long-term debt outstanding was $1.56 billion during 2015, up from $1.19 billion in 2014 which is the primary driver for the increase in interest expense on long-term debt.  This increase was slightly offset by a decrease in the weighted average interest rate of the long-term debt. During 2015, our consolidated special purpose entities issued one series of STORE Master Funding net‑lease mortgage notes payable aggregating $365 million in principal amount with a weighted average interest rate of 4.06% and refinanced maturing secured debt with $21.1 million of traditional mortgage debt at an interest rate of 4.36%.  In addition, we completed our first issuance of senior unsecured long-term debt in November 2015.  This inaugural issuance was a private placement of an aggregate principal amount of $175 million of investment-grade senior unsecured notes with a weighted average rate of 5.12%.  At the end of 2015, we had $1.8 billion of outstanding long term debt with a weighted average interest rate of 4.7%.

The average debt outstanding on our credit facilities decreased slightly to $75.3 million in 2015 from $79.5 million in 2014 primarily due to the availability of net equity proceeds from our IPO that we used to make real estate investments during the first quarter of 2015.  The weighted average interest rate on our short-term borrowings, including non-use fees on undrawn amounts, was 2.8% in 2015, down from 3.9% in 2014.  During most of 2014, our two main secured credit facilities bore interest at a variable rate based on one‑month LIBOR plus a credit spread of 2.45% to 3.0%.  In September 2014, we replaced these two secured credit facilities with an unsecured credit facility that bore interest based on one‑month LIBOR plus a credit spread ranging from 1.75% to 2.50% using a leverage‑based scale. In September 2015, we amended the unsecured credit facility and it now bears interest based on one-month LIBOR plus a credit spread of 1.35% to 2.15% using a leverage-based scale. The LIBOR rate had been fairly stable since the beginning of 2014, with the one‑month LIBOR rate hovering between 0.15% and 0.17% during 2014 and between 0.17% and 0.22% during most of 2015; during the last two months of 2015 the one-month LIBOR rate rose to 0.43%.    

From time to time, we may have construction activities on one or more of our real estate properties and interest capitalized as a part of those activities represented less than $1 million in both 2015 and 2014.  In addition, interest expense in 2014 includes the write off of $1.2 million in remaining unamortized deferred financing costs related to the two secured credit facilities that we replaced with our unsecured credit facility in September 2014.    

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Transaction Costs

Our real estate acquisitions have been predominantly sale‑leaseback transactions in which acquisition and closing costs were capitalized as part of the investment in the property.  We  also occasionally acquire properties subject to an existing lease. Costs incurred on real estate transactions where we acquired properties that are subject to an existing lease were expensed to operations as incurred. Transaction costs expensed during the year ended December 31, 2015 totaled $1.2 million, as compared to $2.8 million incurred during 2014. Whether the real estate we acquire is subject to an existing lease or not determines how we account for the related transaction costs and, accordingly, may cause variability in the level of such costs expensed to operations from year to year.

Property Costs

Approximately 97% of our leases are triple-net, meaning that our tenants are generally responsible for the property-level operating costs such as taxes, insurance and maintenance. Accordingly, we generally do not expect to incur property-level operating costs or capital expenditures, except during any period where one or more of our properties is no longer under lease. Our need to expend capital on our properties is further reduced due to the fact that some of our tenants will periodically refresh the property at their own expense to meet their business needs or in connection with franchisor requirements. The rise in property costs from 2014 to 2015 primarily related to property taxes, insurance and maintenance costs on properties that were vacant during a portion of 2015. As of December 31, 2015, only two of our properties were vacant and not subject to a lease and we have no scheduled lease maturities during 2016; we expect to incur some property costs related to the vacant properties until such time as those properties are either leased or sold. 

Included in property costs in 2015 and 2014 is approximately $85,000 and $57,000, respectively, related to the amortization of ground lease interest intangibles. Property costs also include the expense of performing site inspections of our properties from time to time, as well as the property management costs of the few properties we own that have specific landlord property-level expense obligations. 

General and Administrative Expenses

General and administrative expenses include compensation and benefits; professional fees such as portfolio servicing, legal and accounting fees; and general office expenses such as insurance, office rent and travel costs. General and administrative costs totaled $28.0 million for the year ended December 31, 2015 as compared to $19.5 million for 2014 with the increase being primarily due to the growth of our portfolio and related staff additions, and to the increased costs of being a public company since our IPO in November 2014. Certain expenses, such as property‑related insurance costs and the costs of servicing the properties and loans comprising our real estate portfolio, increase in direct proportion to the increase in the size of the portfolio. Compensation and benefits expense increased due to an increase in stock-based incentive compensation and to the addition of personnel to support the growth in our operations. Our employee base grew from 50 employees at December 31, 2014 to 60 employees as of December 31, 2015.  A portion of the increase in general and administrative expenses was due to costs related to being a public company, including the costs of public company governance and reporting and meeting other regulatory requirements. We expect that general and administrative expenses will continue to rise in some measure as our real estate investment portfolio grows; however, we expect that such expenses as a percentage of the portfolio will decrease over time due to efficiencies and economies of scale.

Depreciation and Amortization Expense

Depreciation and amortization expense, which increases in proportion to the increase in the size of our real estate portfolio, rose from $57.0 million for the year ended December 31, 2014 to $88.6 million for the year ended December 31, 2015.

Net Income

Our net income rose to $83.8 million for the year ended December 31, 2015 from the $48.1 million in net income reported in 2014. The increase in net income is primarily due to the growth in the size of our real estate investment portfolio, which generated additional rental revenues and interest income

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We sell properties from time to time in order to enhance the diversity and quality of our real estate portfolio. For the year ended December 31, 2015, net income includes a net gain of $0.3 million on the sale of 13 properties.  This net gain includes the impact of a $1.0 million provision for impairment of one property recognized in the first quarter of 2015; that property was sold later in 2015.  The cost of the properties sold during 2015 represented 1.5% of our total real estate investment portfolio at the beginning of the year. During the year ended December 31, 2014, we reported gains aggregating $5.5 million on the sale of 16 properties; the cost of these properties represented 2% of our real estate investment portfolio at the beginning of that year.  As discussed in Note 8 to the consolidated financial statements, we adopted Accounting Standards Update, or ASU, No. 2014‑08 effective as of the beginning of 2014. As a result of this new accounting guidance, during 2014, the gains on the sales of the three properties that were considered to be held for sale as of the end of 2013 are reported in income from discontinued operations and the remaining gains are reported separately below income from continuing operations.

Year Ended December 31, 2014 Compared to Year Ended December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

December 31,

 

Increase

 

(In thousands)

 

2014

 

2013

 

(Decrease)

 

Total revenues

    

$

190,441

    

$

108,904

    

$

81,537

 

Expenses:

 

 

 

 

 

 

 

 

 

 

Interest

 

 

67,959

 

 

39,180

 

 

28,779

 

Transaction costs

 

 

2,804

 

 

2,643

 

 

161

 

Property costs

 

 

473

 

 

127

 

 

346

 

General and administrative

 

 

19,494

 

 

14,132

 

 

5,362

 

Depreciation and amortization

 

 

57,025

 

 

30,349

 

 

26,676

 

Total expenses

 

 

147,755

 

 

86,431

 

 

61,324

 

Income from continuing operations before income taxes

 

 

42,686

 

 

22,473

 

 

20,213

 

Income tax expense

 

 

180

 

 

155

 

 

25

 

Income from continuing operations

 

 

42,506

 

 

22,318

 

 

20,188

 

Income from discontinued operations, net of tax

 

 

1,140

 

 

3,995

 

 

(2,855)

 

Income before gain on dispositions of real estate investments

 

 

43,646

 

 

26,313

 

 

17,333

 

Gain on dispositions of real estate investments

 

 

4,493

 

 

 —

 

 

4,493

 

Net income

 

$

48,139

 

$

26,313

 

$

21,826

 

 

Overview

As of December 31, 2014, our real estate investment portfolio totaled $2.8 billion, consisting of investments in 947 property locations in 46 states, operated by 226 customers in various industries. Approximately 96% of the real estate investment portfolio represented commercial real estate properties subject to long‑term leases, 4% represented mortgage loan and direct financing receivables primarily on commercial real estate buildings (located on land we own and lease to our customers) and a nominal amount represented loans receivable secured by our tenants’ other assets. All of our owned properties were subject to a lease as of December 31, 2014 and 2013.

Revenues

Revenues rose by 74.9% to $190.4 million for the year ended December 31, 2014 from $108.9 million for the year ended December 31, 2013, driven primarily by the growth in the size of our real estate investment portfolio, which generated additional rental revenues and interest income. Our real estate investment portfolio grew from $1.7 billion in gross investment amount representing 622 properties at December 31, 2013 to $2.8 billion in gross investment amount representing 947 properties at December 31, 2014. Our real estate investments were made throughout the years presented and were not all outstanding for the entire period. The weighted average real estate investment amounts outstanding during the years were $2.24 billion in 2014 and $1.28 billion in 2013. The weighted average initial real estate capitalization rate on the properties we acquired during 2014 was 8.3% as compared to 8.5%  for properties acquired during 2013.

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Interest Expense

The following table summarizes our interest expense for the years ended December 31, 2014 and 2013.

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

 

 

December 31,

 

 

(Dollars in thousands)

 

2014

 

2013

 

 

Interest expense - credit facilities (includes non-use fees)

 

$

3,084

    

$

3,344

 

 

Interest expense - secured long-term debt

 

 

58,304

 

 

31,650

 

 

Capitalized interest

 

 

(575)

 

 

 —

 

 

Amortization of deferred financing costs and other

 

 

7,146

 

 

4,186

 

 

Total interest expense

 

$

67,959

 

$

39,180

 

 

Credit facilities:

 

 

 

 

 

 

 

 

Average debt outstanding

 

$

79,519

 

$

77,315

 

 

Average interest rate (includes non-use fees)

 

 

3.9

%  

 

4.3

%  

 

Long-term debt:

 

 

 

 

 

 

 

 

Average debt outstanding

 

$

1,188,842

 

$

629,181

 

 

Average interest rate

 

 

4.9

%  

 

5.0

%  

 

 

Interest expense increased to $68.0 million for the year ended December 31, 2014 from $39.2 million in 2013 due primarily to an increase in long‑term borrowings used to partially fund the acquisition of properties for our growing real estate investment portfolio. We funded the growth in our real estate investment portfolio with added equity and long‑term debt, using our short‑term credit facilities to temporarily finance properties we acquired until we had a sufficiently large and diverse pool of properties to issue long‑term fixed‑rate debt. The average amount of long-term debt outstanding was $1.19 billion during 2014, up significantly from $0.63 billion in 2013 which is the primary driver for the increase in interest expense on long-term debt.  This increase was slightly offset by a decrease in the weighted average interest rate of the long-term debt. During 2014, our consolidated special purpose entities issued one series of STORE Master Funding net‑lease mortgage notes payable aggregating $260 million in principal amount with a weighted average interest rate of 4.64%.  In addition, we added $52.7 million of traditional mortgage debt during 2014. The average debt outstanding on our credit facilities increased to $79.5 million in 2014 from $77.3 million in 2013. The weighted average interest rate on our short-term borrowings, including non-use fees on undrawn amounts, was 3.9% in 2014, down from 4.3% in 2013.  During these periods, our two main secured credit facilities bore interest at a variable rate based on one‑month LIBOR plus a credit spread of 2.45% to 3.0%.  In September 2014, we replaced these two secured credit facilities with an unsecured credit facility that bore interest based on one‑month LIBOR plus a credit spread ranging from 1.75% to 2.50% using a leverage‑based scale. The LIBOR rate was fairly stable during 2013 and 2014 at 0.2% or less.

From time to time, we may have construction activities on one or more of our real estate properties and interest capitalized as a part of those activities represented less than $1 million in 2014.  In addition, interest expense in 2014 includes the write off of $1.2 million in remaining unamortized deferred financing costs related to the two secured credit facilities that we replaced with our new unsecured credit facility in September 2014.    

Transaction Costs

Transaction costs expensed during the year ended December 31, 2014 totaled $2.8 million and were just slightly higher than the $2.6 million incurred during 2013. Whether the real estate we acquire is subject to an existing lease or not determines how we account for the related transaction costs and, accordingly, may cause variability in the level of such costs expensed to operations from year to year.

General and Administrative Expenses

General and administrative costs totaled $19.5 million for the year ended December 31, 2014 as compared to  $14.1 million for 2013 primarily due to the growth of our portfolio and additions to our staff due to the growth in our

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operations. Expenses, such as property‑related insurance costs and the costs of servicing the properties and loans comprising our real estate portfolio, increase in direct proportion to the increase in the size of the portfolio. Other costs, including the compensation paid to our real estate acquisition personnel, are based on the volume of real estate acquisitions made during the period; these costs were higher in 2014 than in 2013 because our acquisition volume was higher in 2014. Our number of employees grew by six during 2014; the added positions were primarily to expand our internal operating functions, increasing our compensation and employee benefits expense.

Depreciation and Amortization Expense

Depreciation and amortization expense increased in proportion to the increase in the size of the real estate portfolio and, accordingly, such expense rose from $30.3 million for the year ended December 31, 2013 to $57.0 million for the year ended December 31, 2014.

Net Income

Our net income rose to $48.1 million for the year ended December 31, 2014 from the $26.3 million in net income reported in 2013. The increase in net income is primarily due to the growth in the size of our real estate investment portfolio, which generated additional rental revenues and interest income.  A portion of the increase in net income relates to an increase in gains from the sale of properties. We sell properties from time to time in order to enhance the diversity and quality of our real estate portfolio. We reported gains aggregating $5.5 million on the sale of 16 properties during the year ended December 31, 2014. During the year ended December 31, 2013, we reported gains aggregating $2.2 million (net of tax) on the sale of 17 properties. As discussed in Note 8 to the consolidated financial statements, we adopted ASU No. 2014‑08 effective as of the beginning of 2014. As a result of this new accounting guidance, during 2014, the gains on the sales of the three properties that were considered to be held for sale as of the end of 2013 are reported in income from discontinued operations and the remaining gains are reported separately below income from continuing operations. During the year ended December 31, 2013, all gains on sales of properties were reported, net of tax, in income from discontinued operations.

Non-GAAP Measures

Our reported results are presented in accordance with U.S. generally accepted accounting principles, or GAAP. We also disclose Funds from Operations, or FFO, and Adjusted Funds from Operations, or AFFO, both of which are non‑GAAP measures. We believe these two non‑GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operations as reported on a statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures.

We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as GAAP net income, excluding gains (or losses) from extraordinary items and sales of depreciable property, real estate impairment losses and depreciation and amortization expense from real estate assets, including the pro rata share of such adjustments of unconsolidated subsidiaries.

To derive AFFO, we modify the NAREIT computation of FFO to include other adjustments to GAAP net income related to non‑cash revenues and expenses such as straight‑line rents, amortization of deferred financing costs and stock‑based compensation. In addition, in deriving AFFO, we exclude transaction costs associated with acquiring real estate subject to existing leases.

FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers primarily because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. Management believes that AFFO provides more useful information to investors and analysts because it modifies FFO to exclude additional non-cash revenues and expenses such as straight‑line rents, amortization of deferred financing costs and

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stock‑based compensation, as such items may cause short-term fluctuations in net income but have no impact on operating cash flows or long-term operating performance. Additionally, in deriving AFFO, we exclude transaction costs associated with acquiring real estate subject to existing leases. We view transaction costs to be a part of our investment in the real estate we acquire, similar to the treatment of acquisition and closing costs on our sale-leaseback transactions, which are capitalized as a part of the investment in the asset. We believe that transaction costs are not an ongoing cost of the portfolio in place at the end of each reporting period and, for these reasons, we add back the portion expensed when computing AFFO.  As a result, we believe AFFO to be a more meaningful measurement of ongoing performance that allows for greater performance comparability.  Therefore, we disclose both FFO and AFFO and reconcile them to the most appropriate GAAP performance metric, which is net income.  STORE Capital’s FFO and AFFO may not be comparable to similarly titled measures employed by other companies.

The following is a reconciliation of net income (which we believe is the most comparable GAAP measure) to FFO and AFFO.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

(Dollars in thousands)

 

2015

 

2014

 

2013

 

Net income

    

$

83,770

    

$

48,139

    

$

26,313

    

Depreciation and amortization of real estate assets

 

 

88,257

 

 

56,722

 

 

30,692

 

Provision for impairment of real estate

 

 

1,000

 

 

 —

 

 

 —

 

Gain on dispositions of real estate

 

 

(1,322)

 

 

(5,478)

 

 

(2,162)

 

Funds from Operations

 

 

171,705

 

 

99,383

 

 

54,843

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Straight-line rental revenue, net

 

 

(2,018)

 

 

(2,402)

 

 

(1,421)

 

Transaction costs

 

 

1,156

 

 

2,804

 

 

2,643

 

Non-cash equity-based compensation

 

 

4,735

 

 

2,294

 

 

1,228

 

Non-cash interest expense

 

 

6,507

 

 

7,146

 

 

4,186

 

Amortization of lease-related intangibles and costs

 

 

1,390

 

 

651

 

 

260

 

Adjusted Funds from Operations

 

$

183,475

 

$

109,876

 

$

61,739

 

 

 

 

Item 7A.    Quantitative and Qualitative Disclosures About Market Risk

Our interest rate risk management objective is to limit the impact of future interest rate changes on our earnings and cash flows. We seek to match the cash inflows from our long‑term leases with the expected cash outflows on our long‑term debt. To achieve this objective, our consolidated subsidiaries primarily borrow on a fixed‑rate basis for longer‑term debt issuances. At December 31, 2015, substantially all of our outstanding long‑term debt carried a fixed interest rate and the weighted average debt maturity was approximately seven years. We are exposed to interest rate risk between the time we enter into a sale‑leaseback transaction and the time we finance the related real estate with long‑term fixed‑rate debt. In addition, when that long‑term debt matures, we may have to refinance the real estate at a higher interest rate. Market interest rates are sensitive to many factors that are beyond our control. 

We address interest rate risk by employing the following strategies to help insulate us from any adverse impact of rising interest rates:

·

We seek to minimize the time period between acquisition of our real estate and the ultimate financing of that real estate with long‑term fixed‑rate debt.

·

By using serial issuances of long-term debt, we intend to ladder out our debt maturities to avoid a significant amount of debt maturing during any single period.

·

We choose long‑term debt that generally provides for some amortization of the principal balance over the term of the debt, which serves to reduce the amount of refinancing risk at debt maturity to the extent that we can refinance the reduced debt balance over a revised long-term amortization schedule. 

·

We strive to grow our free cash flow such that, over time, our cash flow from operating activities, after principal payments on our debt, plus cash flows from property sales and principal collected on our loans receivable, each year exceeds that year’s scheduled debt maturities.

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Although the substantial majority of our debt is fixed-rate debt, we utilize credit facilities that are based on a variable rate.  During the year ended December 31, 2015, we had average daily outstanding borrowings of $75.3 million on our variable‑rate credit facility which currently bears interest based on one-month LIBOR plus a credit spread of 1.35% to 2.15% using a leverage-based scale. We monitor our market interest rate risk exposures using a sensitivity analysis.  Our sensitivity analysis estimates the exposure to market risk sensitive instruments assuming a hypothetical adverse change in interest rates.  Based on the results of a sensitivity analysis, which assumes a 1% adverse change in interest rates, the estimated market risk exposure for all of our variable‑rate debt was approximately $781,000, or less than 1% of net cash provided by operating activities for the year ended December 31, 2015. In addition, we may use various financial instruments designed to mitigate the impact of interest rate fluctuations on our cash flows and earnings, including hedging strategies, depending on our analysis of the interest rate environment and the costs and risks of such strategies.  We do not use derivative instruments for trading or speculative purposes.  See Note 2 to our Consolidated Financial Statements for further information on derivatives.

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Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

Report of Independent Registered Public Accounting Firm

 

 

The Board of Directors and Stockholders of

STORE Capital Corporation

 

We have audited the accompanying consolidated balance sheets of STORE Capital Corporation (the Company) as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2015. Our audits also included the financial statement schedules listed in the Index at Item 15(a). These financial statements and schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of STORE Capital Corporation at December 31, 2015 and 2014, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2015 in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedules, when considered in relation to the basic financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.

As discussed in Note 8 to the consolidated financial statements, the Company changed its method for reporting discontinued operations effective January 1, 2014.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), STORE Capital Corporation’s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 25, 2016 expressed an unqualified opinion thereon.

 

/s/ Ernst & Young LLP

 

Phoenix, Arizona

February 25, 2016

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Report of Independent Registered Public Accounting Firm

 

 

The Board of Directors and Stockholders of

STORE Capital Corporation

 

We have audited STORE Capital Corporation’s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). STORE Capital Corporation’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, STORE Capital Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of STORE Capital Corporation  as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2015 of STORE Capital Corporation and our report dated February 25, 2016 expressed an unqualified opinion thereon.

 

/s/ Ernst & Young LLP

 

Phoenix, Arizona

February 25, 2016

 

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STORE Capital Corporation

Consolidated Balance Sheets

(In thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

    

December 31,

 

 

 

 

2015

 

2014

 

 

Assets

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

Real estate investments:

 

 

 

 

 

 

 

 

Land and improvements

 

$

1,187,482

 

$

843,843

 

 

Buildings and improvements

 

 

2,490,394

 

 

1,790,530

 

 

Intangible lease assets

 

 

88,724

 

 

60,184

 

 

Total real estate investments

 

 

3,766,600

 

 

2,694,557

 

 

Less accumulated depreciation and amortization

 

 

(184,182)

 

 

(98,671)

 

 

 

 

 

3,582,418

 

 

2,595,886

 

 

Loans and direct financing receivables

 

 

213,342

 

 

111,354

 

 

Net investments

 

 

3,795,760

 

 

2,707,240

 

 

Cash and cash equivalents

 

 

67,115

 

 

136,313

 

 

Other assets

 

 

48,513

 

 

39,150

 

 

Total assets

 

$

3,911,388

 

$

2,882,703

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Credit facility

 

$

 —

 

$

 —

 

 

Unsecured term notes payable, net

 

 

172,442

 

 

 —

 

 

Non-recourse debt obligations of consolidated special purpose entities, net

 

 

1,597,505

 

 

1,253,242

 

 

Dividends payable

 

 

38,032

 

 

13,123

 

 

Accounts payable and accrued expenses

 

 

36,196

 

 

30,486

 

 

Other liabilities

 

 

7,420

 

 

3,168

 

 

Total liabilities

 

 

1,851,595

 

 

1,300,019

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.01 par value per share, 375,000,000 shares authorized, 140,858,765 and 115,212,541 shares issued and outstanding, respectively

 

 

1,409

 

 

1,152

 

 

Capital in excess of par value

 

 

2,162,130

 

 

1,636,203

 

 

Distributions in excess of retained earnings

 

 

(103,453)

 

 

(54,405)

 

 

Accumulated other comprehensive loss

 

 

(293)

 

 

(266)

 

 

Total stockholders’ equity

 

 

2,059,793

 

 

1,582,684

 

 

Total liabilities and stockholders’ equity

 

$

3,911,388

 

$

2,882,703

 

 

 

See accompanying notes.

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STORE Capital Corporation

Consolidated Statements of Income

(In thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

 

2015

 

2014

 

2013

 

 

Revenues:

    

 

    

    

 

    

 

 

    

 

 

Rental revenues

 

$

270,780

 

$

181,972

 

$

103,398

 

 

Interest income on loans and direct financing receivables

 

 

13,861

 

 

8,069

 

 

5,044

 

 

Other income

 

 

121

 

 

400

 

 

462

 

 

Total revenues

 

 

284,762

 

 

190,441

 

 

108,904

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

81,782

 

 

67,959

 

 

39,180

 

 

Transaction costs

 

 

1,156

 

 

2,804

 

 

2,643

 

 

Property costs

 

 

1,515

 

 

473

 

 

127

 

 

General and administrative

 

 

27,972

 

 

19,494

 

 

14,132

 

 

Depreciation and amortization

 

 

88,615

 

 

57,025

 

 

30,349

 

 

Provision for impairment of real estate

 

 

1,000

 

 

 —

 

 

 —

 

 

Total expenses

 

 

202,040

 

 

147,755

 

 

86,431

 

 

Income from continuing operations before income taxes

 

 

82,722

 

 

42,686

 

 

22,473

 

 

Income tax expense

 

 

274

 

 

180

 

 

155

 

 

Income from continuing operations

 

 

82,448

 

 

42,506

 

 

22,318

 

 

Income from discontinued operations, net of tax

 

 

 —

 

 

1,140

 

 

3,995

 

 

Income before gain on dispositions of real estate

 

 

82,448

 

 

43,646

 

 

26,313

 

 

Gain on dispositions of real estate

 

 

1,322

 

 

4,493

 

 

 —

 

 

Net income

 

$

83,770

 

$

48,139

 

$

26,313

 

 

Net income per share of common stock—basic and diluted:

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.68

 

$

0.59

 

$

0.44

 

 

Discontinued operations

 

 

 —

 

 

0.01

 

 

0.08

 

 

Net income

 

$

0.68

 

$

0.61

 

$

0.52

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

122,180,650

 

 

78,454,599

 

 

49,893,667

 

 

Diluted

 

 

122,207,505

 

 

78,454,599

 

 

49,893,667

 

 

 

See accompanying notes.

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STORE Capital Corporation

Consolidated Statements of Comprehensive Income

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

 

2015

 

2014

 

2013

 

 

Net income

    

$

83,770

    

$

48,139

    

$

26,313

    

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized losses on cash flow hedges

 

 

(333)

 

 

(457)

 

 

414

 

 

Cash flow hedge losses reclassified to interest expense

 

 

306

 

 

319

 

 

319

 

 

Total other comprehensive (loss) income

 

 

(27)

 

 

(138)

 

 

733

 

 

Total comprehensive income

 

$

83,743

 

$

48,001

 

$

27,046

 

 

 

See accompanying notes.

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STORE Capital Corporation

Consolidated Statements of Stockholders Equity

For the Years Ended December 31, 2015, 2014 and 2013

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A

 

 

 

 

 

 

 

 

 

Distributions

 

Accumulated

 

 

 

 

 

Cumulative

 

 

 

 

 

 

Capital in

 

in Excess of

 

Other

 

Total

 

 

Preferred Stock

 

Common Stock

 

Excess of

 

Retained

 

Comprehensive

 

Stockholders’

 

 

Shares

 

Par Value

 

Shares

 

Par Value

 

Par Value

 

Earnings

 

Loss

 

Equity

 

Balance at December 31, 2012

125

    

$

    

42,247,753

    

$

423

    

$

503,462

    

$

(6,110)

    

$

(861)

    

$

496,914

 

Net income

 

 

 

 

 

 

 

 

 

26,313

 

 

 

 

26,313

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

733

 

 

733

 

Issuance of common stock

 

 

 

20,492,291

 

 

205

 

 

293,545

 

 

 

 

 

 

293,750

 

Equity-based compensation

 

 

 

226,876

 

 

2

 

 

1,221

 

 

 

 

 

 

1,223

 

Common dividends declared

 

 

 

 —

 

 

 —

 

 

 —

 

 

(45,003)

 

 

 

 

(45,003)

 

Preferred dividends declared

 

 

 

 —

 

 

 —

 

 

 —

 

 

(16)

 

 

 —

 

 

(16)

 

Balance at December 31, 2013

125

 

 

 —

 

62,966,920

 

 

630

 

 

798,228

 

 

(24,816)

 

 

(128)

 

 

773,914

 

Net income

 

 

 

 

 

 

 

 

 

48,139

 

 

 

 

48,139

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(138)

 

 

(138)

 

Issuance of common stock, net of costs of $39,217

 

 

 

51,832,758

 

 

518

 

 

835,738

 

 

 

 

 

 

836,256

 

Equity-based compensation

 

 

 

412,863

 

 

4

 

 

2,317

 

 

2

 

 

 

 

2,323

 

Redemption of preferred stock

(125)

 

 

 

 

 

 

 

(80)

 

 

(45)

 

 

 

 

(125)

 

Common dividends declared

 

 

 

 

 

 

 

 

 

(77,671)

 

 

 

 

(77,671)

 

Preferred dividends declared

 

 

 

 —

 

 

 —

 

 

 —

 

 

(14)

 

 

 —

 

 

(14)

 

Balance at December 31, 2014

 —

 

 

 —

 

115,212,541

 

 

1,152

 

 

1,636,203

 

 

(54,405)

 

 

(266)

 

 

1,582,684

 

Net income

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

83,770

 

 

 —

 

 

83,770

 

Other comprehensive loss

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(27)

 

 

(27)

 

Issuance of common stock, net of costs of $20,680

 —

 

 

 —

 

25,562,500

 

 

256

 

 

521,204

 

 

 —

 

 

 —

 

 

521,460

 

Equity-based compensation

 —

 

 

 —

 

83,724

 

 

1

 

 

4,723

 

 

3

 

 

 —

 

 

4,727

 

Common dividends declared

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(132,821)

 

 

 —

 

 

(132,821)

 

Balance at December 31, 2015

 —

 

$

 —

 

140,858,765

 

$

1,409

 

$

2,162,130

 

$

(103,453)

 

$

(293)

 

$

2,059,793

 

 

See accompanying notes.

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STORE Capital Corporation

Consolidated Statements of Cash Flows

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

 

2015

 

2014

 

2013

 

 

Operating activities

    

 

    

    

 

    

    

 

    

    

 

Net income

 

$

83,770

 

$

48,139

 

$

26,313

 

 

Adjustments to net income:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

88,615

 

 

57,025

 

 

30,924

 

 

Provision for impairment of real estate

 

 

1,000

 

 

 —

 

 

 —

 

 

Amortization of deferred financing costs and other noncash interest expense

 

 

6,507

 

 

7,146

 

 

4,186

 

 

Amortization of equity-based compensation

 

 

4,735

 

 

2,294

 

 

1,228

 

 

Gain on dispositions of real estate

 

 

(1,322)

 

 

(5,478)

 

 

(3,147)

 

 

Noncash revenue and other

 

 

135

 

 

(1,113)

 

 

(1,162)

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

(4,908)

 

 

1,105

 

 

(15,646)

 

 

Accounts payable and other liabilities

 

 

7,365

 

 

(1,012)

 

 

12,238

 

 

Net cash provided by operating activities

 

 

185,897

 

 

108,106

 

 

54,934

 

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

Acquisition of and additions to real estate

 

 

(1,114,641)

 

 

(1,044,339)

 

 

(788,462)

 

 

Investment in loans and direct financing receivables

 

 

(107,395)

 

 

(52,636)

 

 

(33,647)

 

 

Collections of principal on loans and direct financing receivables

 

 

5,356

 

 

6,206

 

 

238

 

 

Proceeds from dispositions of real estate

 

 

38,671

 

 

39,352

 

 

40,661

 

 

Transfers from (to) restricted deposits

 

 

195

 

 

(8,397)

 

 

(5,305)

 

 

Net cash used in investing activities

 

 

(1,177,814)

 

 

(1,059,814)

 

 

(786,515)

 

 

Financing activities

 

 

 

 

 

 

 

 

 

 

 

Borrowings under credit facilities

 

 

651,000

 

 

590,080

 

 

359,500

 

 

Repayments under credit facilities

 

 

(651,000)

 

 

(590,080)

 

 

(520,162)

 

 

Borrowings under unsecured term notes payable

 

 

175,000

 

 

 —

 

 

 —

 

 

Borrowings under non-recourse debt obligations of consolidated special purpose entities

 

 

385,965

 

 

286,089

 

 

679,848

 

 

Repayments under non-recourse debt obligations of consolidated special purpose entities

 

 

(39,147)

 

 

(20,621)

 

 

(9,755)

 

 

Financing costs paid

 

 

(12,608)

 

 

(11,624)

 

 

(22,942)

 

 

Proceeds from the issuance of common stock

 

 

542,142

 

 

875,476

 

 

293,751

 

 

Offering costs paid

 

 

(20,721)

 

 

(38,426)

 

 

 —

 

 

Dividends paid

 

 

(107,912)

 

 

(64,562)

 

 

(51,597)

 

 

Redemption of preferred stock

 

 

 —

 

 

(125)

 

 

 —

 

 

Net cash provided by financing activities

 

 

922,719

 

 

1,026,207

 

 

728,643

 

 

Net (decrease) increase in cash and cash equivalents

 

 

(69,198)

 

 

74,499

 

 

(2,938)

 

 

Cash and cash equivalents, beginning of year

 

 

136,313

 

 

61,814

 

 

64,752

 

 

Cash and cash equivalents, end of year

 

$

67,115

 

$

136,313

 

$

61,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of noncash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

 

Accrued tenant improvement advances included in real estate investments

 

$

15,924

 

$

12,081

 

$

 —

 

 

Acquisition of collateral property securing a mortgage note receivable

 

 

 

 

1,939

 

 

7,875

 

 

Non-recourse debt obligations assumed in conjunction with acquisition of property

 

 

 —

 

 

27,457

 

 

14,911

 

 

Accrued financing costs

 

 

15

 

 

157

 

 

 —

 

 

Accrued offering costs

 

 

750

 

 

791

 

 

 —

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the period for interest, net of amounts capitalized

 

$

73,636

 

$

60,431

 

$

33,972

 

 

Cash paid during the period for income and franchise taxes

 

 

1,005

 

 

674

 

 

1,601

 

 

 

See accompanying notes.

 

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STORE Capital Corporation

Notes to Consolidated Financial Statements

December 31, 2015

1. Organization

STORE Capital Corporation (STORE Capital or the Company) was formed in Maryland on May 17, 2011 to acquire single‑tenant operational real estate to be leased on a long‑term, net basis to companies that operate across a wide variety of industries within the service, retail and industrial sectors of the United States economy. The Company may also provide mortgage financing to its customers from time to time.

On November 21, 2014, the Company completed the initial public offering (IPO) of its common stock.  The shares began trading on the New York Stock Exchange on November 18, 2014 under the ticker symbol “STOR”.  The Company was originally formed as a wholly-owned subsidiary of STORE Holding Company, LLC (STORE Holding), a Delaware limited liability company. In March 2015, STORE Holding redeemed all of its Series A membership interests that were held by members of the Company’s board and senior management through the distribution of common shares of the Company to those members. Following this redemption, the voting interests of STORE Holding are entirely owned by entities managed by a global investment management firm. At December 31, 2015, there were 140,858,765 shares of the Company’s common stock outstanding, of which 70,336,144 shares were still held by STORE Holding, representing a 49.9% ownership of the Company.  On February 1, 2016, STORE Holding sold 14,000,000 shares from its holdings of the Company’s common stock and now holds just under 40% of the Company’s outstanding common stock.

STORE Capital has made an election to qualify, and believes it is operating in a manner to continue to qualify, as a real estate investment trust (REIT) for federal income tax purposes beginning with its initial taxable year ended December 31, 2011. As a REIT, it will generally not be subject to federal income taxes to the extent that it distributes all of its taxable income to its stockholders and meets other specific requirements.

2. Summary of Significant Accounting Principles

Basis of Accounting and Principles of Consolidation

The consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (GAAP). These consolidated statements include the accounts of STORE Capital Corporation and its subsidiaries which are wholly‑owned and controlled by the Company through its voting interest. One of the Company’s wholly‑owned subsidiaries, STORE Capital Advisors, LLC, provides all of the general and administrative services for the day‑to‑day operations of the consolidated group, including property acquisition and lease origination, real estate portfolio management and marketing, accounting and treasury services. The remaining subsidiaries were formed to acquire and hold real estate investments or to facilitate non‑recourse secured borrowing activities. Generally, the initial operations of the real estate subsidiaries are funded by an interest‑bearing intercompany loan from STORE Capital, and such intercompany loan is repaid when the subsidiary issues long‑term debt secured by its properties. All intercompany account balances and transactions have been eliminated in consolidation.

Certain of the Company’s wholly‑owned consolidated subsidiaries were formed as special purpose entities. Each special purpose entity is a separate legal entity and is the sole owner of its assets and liabilities. The assets of the special purpose entities are not available to pay or otherwise satisfy obligations to the creditors of any owner or affiliate of the special purpose entity. At December 31, 2015 and 2014, assets totaling $3.4 billion and $2.5 billion, respectively, were held and third‑party liabilities totaling $1.6 billion and $1.3 billion, respectively, were owed by these special purpose entities and are included in the accompanying consolidated balance sheets.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities

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and the reported amounts of revenues and expenses during the reporting period. Although management believes its estimates are reasonable, actual results could differ from those estimates.

Reclassifications

Certain reclassifications have been made to prior period balances to conform to the current period presentation.  During the quarter ended December 31, 2015, the Company elected to early adopt Accounting Standards Update (ASU) 2015-03 described below in “Recent Accounting Pronouncements.” Under this new guidance, capitalized deferred financing costs, previously recorded in other assets on the consolidated balance sheet, are now presented as a deduction to the corresponding debt liability to which these costs relate and this presentation is retrospectively applied to prior periods.  In accordance with ASU 2015-15, also described below, the deferred financing costs related to the establishment of the Company’s revolving credit facility will continue to be presented in deferred costs and are included in other assets on the Company’s consolidated balance sheet.  As of December 31, 2014, unamortized deferred financing costs of approximately $30.9 million previously presented in other assets on the consolidated balance sheet are now included as a reduction in non-recourse debt obligations on the consolidated balance sheet (Note 4).

Segment Reporting

The Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) Topic 280, Segment Reporting, established standards for the manner in which enterprises report information about operating segments. The Company views its operations as one reportable segment.

Accounting for Real Estate Investments

STORE Capital records the acquisition of real estate properties at cost, including acquisition and closing costs. The Company allocates the cost of real estate properties to the tangible and intangible assets and liabilities acquired based on their estimated relative fair values. Real estate properties subject to an existing in‑place lease at the date of acquisition are recorded as business combinations and each tangible and intangible asset and liability acquired is recorded at fair value. Management uses multiple sources to estimate fair value, including independent appraisals and information obtained about each property as a result of its pre‑acquisition due diligence and its marketing and leasing activities. The Company expenses transaction costs associated with real estate acquisitions accounted for as business combinations in the period incurred.

In‑place lease intangibles are valued based on management’s estimates of lost rent and carrying costs during the time it would take to locate a tenant if the property were vacant, considering current market conditions and costs to execute similar leases. In estimating lost rent and carrying costs, management considers market rents, real estate taxes, insurance, costs to execute similar leases including leasing commissions and other related costs. The value assigned to in‑place leases is amortized on a straight‑line basis as a component of depreciation and amortization expense typically over the remaining term of the related leases.

The fair value of any above‑market and below‑market leases is estimated based on the present value of the difference between the contractual amounts to be paid pursuant to the in‑place lease and management’s estimate of current market lease rates for the property, measured over a period equal to the remaining term of the lease. Capitalized above‑market lease intangibles are amortized over the remaining term of the respective leases as a decrease to rental revenue. Below‑market lease intangibles are amortized as an increase in rental revenue over the remaining term of the respective leases plus the fixed‑rate renewal periods on those leases, if any. Should a lease terminate early, the unamortized portion of any related lease intangible is immediately recognized in operations.

The Company’s real estate portfolio is depreciated using the straight‑line method over the estimated remaining useful life of the properties, which generally ranges from 30 to 40 years for buildings and is generally 15 years for land improvements. Properties classified as held for sale are recorded at the lower of their carrying value or their fair value, less anticipated closing costs. Any properties classified as held for sale are not depreciated.

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Impairment

STORE Capital reviews its real estate investments and related lease intangibles periodically for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through operations. Management considers factors such as expected future undiscounted cash flows, estimated residual value, market trends (such as the effects of leasing demand and competition) and other factors including bona fide purchase offers received from third parties in making this assessment. These factors are classified as Level 3 inputs within the fair value hierarchy. An asset is considered impaired if the carrying value of the asset exceeds its estimated undiscounted cash flows and the impairment is calculated as the amount by which the carrying value of the asset exceeds its estimated fair value. Estimating future cash flows is highly subjective and such estimates could differ materially from actual results.

Revenue Recognition

STORE Capital leases real estate to its tenants under long‑term net leases that are predominantly classified as operating leases. Direct costs associated with lease origination, offset by any lease origination fees received, are deferred and amortized over the related lease term as an adjustment to rental revenue. Substantially all of the leases are triple‑net, which provide that the lessees are responsible for the payment of all property operating expenses, including property taxes, maintenance and insurance. The Company may collect property taxes from its customers and remit those taxes to governmental authorities; such property taxes are presented on a net basis in the consolidated income statements.

The Company’s leases generally provide for rent escalations throughout the lease terms. For leases that provide for specific contractual escalations, rental revenue is recognized on a straight‑line basis so as to produce a constant periodic rent over the term of the lease. Accordingly, accrued rental revenue, calculated as the aggregate difference between the rental revenue recognized on a straight‑line basis and scheduled rents, represents unbilled rent receivables that the Company will receive only if the tenants make all rent payments required through the expiration of the lease. The Company provides an estimated reserve for uncollectible straight‑line rental revenue based on management’s assessment of the risks inherent in those lease contracts, giving consideration to industry default rates for long‑term receivables. There was $9.5 million and $4.7 million of accrued straight‑line rental revenue, net of allowances of $3.4 million and $1.7 million, at December 31, 2015 and 2014, respectively, which were included in other assets on the consolidated balance sheets. Leases that have contingent rent escalators indexed to future increases in the Consumer Price Index (CPI) may adjust over a one‑year period or over multiple‑year periods. Generally, these escalators increase rent at the lesser of (a) 1 to 1.25 times the increase in the CPI over a specified period or (b) a fixed percentage. Because of the volatility and uncertainty with respect to future changes in the CPI, the Company’s inability to determine the extent to which any specific future change in the CPI is probable at each rent adjustment date during the entire term of these leases and the Company’s view that the multiplier does not represent a significant leverage factor, increases in rental revenue from leases with this type of escalator are recognized only after the changes in the rental rates have actually occurred.

For leases that have contingent rentals that are based on a percentage of the tenant’s gross sales, the Company recognizes contingent rental revenue when the threshold upon which the contingent lease payment is based is actually reached. Less than 1.5% of the Company’s investment portfolio is subject to leases that provide for contingent rent based on a percentage of the tenant’s gross sales.

The Company suspends revenue recognition if the collectibility of amounts due pursuant to a lease is not reasonably assured or if the tenant’s monthly lease payments become more than 60 days past due, whichever is earlier. The Company reviews its rent receivables for collectibility on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area where the property is located. In the event that the collectibility of a receivable with respect to any tenant is in doubt, a provision for uncollectible amounts will be established or a direct write‑off of the specific rent receivable will be made.

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Loans Receivable

STORE Capital holds its loans receivable for long‑term investment. Loans receivable are carried at amortized cost, including related unamortized discounts or premiums, if any.

Revenue Recognition

The Company recognizes interest income on loans receivable using the effective-interest method applied on a loan‑by‑loan basis. Direct costs associated with originating loans are offset against any related fees received and the balance, along with any premium or discount, is deferred and amortized as an adjustment to interest income over the term of the related loan receivable using the effective interest method. A loan receivable is placed on nonaccrual status when the loan has become 60 days past due, or earlier if management determines that full recovery of the contractually specified payments of principal and interest is doubtful. While on nonaccrual status, interest income is recognized only when received. As of December 31, 2015 and 2014, there were no loans on nonaccrual status.

Impairment and Provision for Loan Losses

The Company periodically evaluates the collectibility of its loans receivable, including accrued interest, by analyzing the underlying property‑level economics and trends, collateral value and quality and other relevant factors in determining the adequacy of its allowance for loan losses. A loan is determined to be impaired when, in management’s judgment based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Specific allowances for loan losses are provided for impaired loans on an individual loan basis in the amount by which the carrying value exceeds the estimated fair value of the underlying collateral less disposition costs. There was no allowance for loan losses at December 31, 2015 and 2014.

Direct Financing Receivables

Certain of the Company’s real estate investment transactions are accounted for as direct financing leases. The Company records the direct financing receivables at their net investment, determined as the aggregate minimum lease payments and the estimated residual value of the leased property less unearned income. The unearned income is recognized over the life of the related contracts so as to produce a constant rate of return on the net investment in the asset.

Cash and Cash Equivalents

Cash and cash equivalents include cash and highly liquid investment securities with maturities at acquisition of three months or less. The Company invests cash primarily in money‑market funds of a major financial institution, consisting predominantly of U.S. Government obligations.

Restricted Cash and Escrow Deposits

The Company had $16.3 million and $15.4 million of restricted cash and deposits in escrow at December 31, 2015 and 2014, respectively, which were included in other assets on the consolidated balance sheets.

Deferred Financing Costs

Financing costs related to the issuance of the Company’s long-term debt are deferred and amortized as an increase to interest expense over the term of the related debt instrument using the effective interest method and are reported as a reduction of the related debt balance on the consolidated balance sheets (see Recent Accounting Pronouncements). Deferred financing costs related to the establishment of the Company's credit facility are deferred and amortized to interest expense over the term of the credit facility and are included in other assets on the consolidated balance sheets.

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Derivative Instruments and Hedging Activities

The Company may enter into derivatives contracts as part of its overall financing strategy to manage the Company’s exposure to changes in interest rates associated with current and/or future debt issuances. The Company does not use derivatives for trading or speculative purposes. The Company records its derivatives on the balance sheet at fair value as either an asset or liability. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the earnings effect of the hedged forecasted transactions in a cash flow hedge.  The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss). Amounts reported in accumulated other comprehensive income (loss) related to cash flow hedges are reclassified to operations as an adjustment to interest expense as interest payments are made on the hedged debt transaction.

As of December 31, 2015, the Company had entered into two interest rate swap agreements with current notional amounts of $12.4 million and $6.5 million that were designated as cash flow hedges associated with the Company’s secured, variable‑rate mortgage note payable due 2019 (Note 4).

Fair Value Measurement

The Company estimates fair value of financial and non-financial assets and liabilities based on the framework established in fair value accounting guidance.  Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The hierarchy described below prioritizes inputs to the valuation techniques used in measuring the fair value of assets and liabilities. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs to be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

·

Level 1—Quoted market prices in active markets for identical assets and liabilities that the Company has the ability to access.

·

Level 2—Significant inputs that are observable, either directly or indirectly. These types of inputs would include quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets in inactive markets and market‑corroborated inputs.

·

Level 3—Inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. These types of inputs include the Company’s own assumptions.

Share‑based Compensation

Certain directors and employees of the Company have been granted long‑term incentive awards, including restricted shares and stock units of the Company’s common stock and profits interests units issued by STORE Holding, which provide them with equity interests as an incentive to remain in the Company’s service and align executives’ interests with those of the Company’s equity holders.

The Company estimates the fair value of restricted stock awards at the date of grant and recognizes that amount in general and administrative expense ratably over the vesting period at the greater of the amount amortized on a straight‑line basis or the amount vested. The fair value of the restricted stock is based on the per‑share price of the common stock on the date of the grant. Prior to the Company’s IPO, the fair value was based on the per-share price of the common stock issued in the Company’s private equity offerings. 

The Company values the restricted stock units, which contain both a market condition and a service condition, awarded to its executive officers using a Monte Carlo simulation model on the date of grant and recognizes that amount in general and administrative expense on a tranche by tranche basis ratably over the vesting periods.

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Income Taxes

As a REIT, the Company generally will not be subject to federal income tax; however, it is still subject to state and local income taxes and to federal income and excise tax on its undistributed income. STORE Investment Corporation is the Company’s wholly‑owned taxable REIT subsidiary created to engage in non‑qualifying REIT activities. The taxable REIT subsidiary is subject to federal, state and local income taxes.

Net Income Per Common Share

Net income per common share has been computed pursuant to the guidance in the FASB ASC Topic 260, Earnings Per Share. The guidance requires the classification of the shares of the Company’s unvested restricted stock, which contain rights to receive non‑forfeitable dividends, as participating securities requiring the two‑class method of computing net income per common share. The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per common share (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

 

 

2015

 

2014

 

2013

 

 

 

Numerator:

    

 

    

    

 

    

    

 

    

    

    

 

Net income

 

$

83,770

 

$

48,139

 

$

26,313

 

 

 

Less: preferred stock dividends

 

 

 —

 

 

(59)

 

 

(16)

 

 

 

Net income attributable to common stockholders

 

 

83,770

 

 

48,080

 

 

26,297

 

 

 

Less: earnings attributable to unvested restricted shares

 

 

(598)

 

 

(500)

 

 

(294)

 

 

 

Net income used in basic and diluted income per share

 

$

83,172

 

$

47,580

 

$

26,003

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

122,759,666

 

 

78,924,475

 

 

50,216,017

 

 

 

Less: Weighted average number of shares of unvested restricted stock

 

 

(579,016)

 

 

(469,876)

 

 

(322,350)

 

 

 

Weighted average shares outstanding used in basic income per share

 

 

122,180,650

 

 

78,454,599

 

 

49,893,667

 

 

 

Effects of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

Add: Treasury stock method impact of potentially dilutive securities (a)

 

 

26,855

 

 

 

 

 

 

 

Weighted average shares outstanding used in diluted income per share

 

 

122,207,505

 

 

78,454,599

 

 

49,893,667

 

 

 


(a)

For the years ended December 31, 2015, 2014 and 2013 excludes 200,104 shares, 89,625 shares and 43,654 shares, respectively, related to unvested restricted shares as the effect would have been antidilutive.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or the U.S. Securities and Exchange Commission (SEC). The Company adopts the new pronouncements as of the specified effective date. When permitted, the Company may elect to early adopt the new pronouncements. Unless otherwise discussed, these new accounting pronouncements include technical corrections to existing guidance or introduce new guidance related to specialized industries or entities and therefore will have minimal, if any, impact on the Company’s financial position or results of operations upon adoption.

In May 2014, the FASB issued ASU 2014‑09, Revenue from Contracts with Customers: Topic 606. This new guidance establishes a principles‑based approach for accounting for revenue from contracts with customers. Lease contracts covered by Topic 840, Leases, are excluded from the scope of this new guidance. During 2015 various amendments were made and this standard will be effective for annual reporting periods beginning after December 15, 2017, early adoption is permitted but only as of an annual reporting period beginning after December 15, 2016.  As leases are excluded from this guidance, the Company does not anticipate this standard to have a material impact on its financial position, results of operations and cash flows.

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In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs.  This guidance requires debt issuance costs to be presented as a deduction from the corresponding debt liability and, therefore, makes the presentation of debt issuance costs consistent with the presentation of debt discounts or premiums.  This new standard is effective for public companies for annual reporting periods beginning after December 15, 2015, with early adoption permitted.  Upon adoption, the new guidance is required to be applied retrospectively.  The Company early adopted the provisions of ASU 2015-03 beginning with the quarter ended December 31, 2015 and has applied the provisions retrospectively. The adoption of the standard did not have a material impact on the Company’s financial statements.

In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which clarifies the treatment of debt issuance costs from line-of-credit arrangements after adoption of ASU 2015-03. ASU 2015-15 clarifies that an entity may present debt issuance costs on line-of-credit arrangements as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Upon the early adoption of ASU 2015-03 discussed above, the Company applied the provisions of ASU 2015-15 to the capitalized deferred financing costs related to its credit facility. The adoption of the standard did not have a material impact on the Company’s financial statements.

The FASB is expected to issue an ASU related to Topic 840, Leases in the first quarter of 2016. This ASU will amend the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. This ASU is expected to be effective beginning in the first quarter of 2019 with early adoption permitted. The new standard is expected to require a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. We will evaluate the impact of adopting this standard on our consolidated financial statements once the ASU has been issued.

 

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3. Investments

At December 31, 2015, STORE Capital had investments in 1,325 property locations representing 1,296 owned properties (of which 28 are accounted for as direct financing receivables), 14 ground lease interests and 15 properties which secure mortgage loans. The gross investment portfolio totaled $3.98 billion at December 31, 2015 and consisted of the gross acquisition cost of the real estate investments totaling $3.77 billion and loans and direct financing receivables with an aggregate carrying amount of $213.3 million.  As of December 31, 2015, a substantial portion of these investments are assets of consolidated special purpose entity subsidiaries and are pledged as collateral under the non‑recourse obligations of these special purpose entities (Note 4).

During 2013, 2014 and 2015, the Company had the following gross real estate and loan activity (dollars in thousands):

 

 

 

 

 

 

 

 

 

    

Number of

    

Dollar

 

 

 

Investment

 

Amount of

 

 

 

Locations

 

Investments (a)

 

Gross investments, December 31, 2012

 

371

 

$

911,704

 

Acquisition of and additions to real estate (b)

 

267

 

 

811,248

 

Investment in loans and direct financing receivables

 

2

 

 

33,647

 

Sales of real estate

 

(17)

 

 

(37,867)

 

Principal collections on loans and direct financing receivables(b)

 

(1)

 

 

(8,113)

 

Other

 

 

 

 

(67)

 

Gross investments, December 31, 2013

 

622

 

 

1,710,552

 

Acquisition of and additions to real estate (c)(d)

 

328

 

 

1,085,816

 

Investment in loans and direct financing receivables

 

15

 

 

52,636

 

Sales of real estate

 

(16)

 

 

(34,768)

 

Principal collections on loans and direct financing receivables (c)

 

(2)

 

 

(8,145)

 

Other

 

 

 

 

(180)

 

Gross investments, December 31, 2014

 

947

 

 

2,805,911

 

Acquisition of and additions to real estate (d)(e)

 

364

 

 

1,114,722

 

Investment in loans and direct financing receivables

 

30

 

 

107,395

 

Sales of real estate

 

(13)

 

 

(40,774)

 

Principal collections on loans and direct financing receivables

 

(2)

 

 

(5,356)

 

Provision for impairment of real estate

 

 

 

 

(1,000)

 

Other

 

(1)

 

 

(956)

 

Gross investments, December 31, 2015

 

 

 

 

3,979,942

 

Less accumulated depreciation and amortization

 

 

 

 

(184,182)

 

Net investments, December 31, 2015

 

1,325

 

$

3,795,760

 


(a)

The dollar amount of investments includes the investment in land, buildings, improvements and lease intangibles related to real estate investments as well as the carrying amount of the loans and direct financing receivables.

(b)

One loan receivable was repaid in full through a $7.9 million non‑cash transaction in which the Company acquired the underlying mortgaged property and leased it back to the borrower.

(c)

One mortgage loan receivable was repaid in full through a $1.9 million non‑cash transaction in which the Company acquired the two underlying mortgaged properties and leased them back to the borrower.

(d)

Includes $0.6 million during 2014 and $0.8 million during 2015 of interest capitalized to properties under construction.

(e)

Excludes $15.8 million of tenant improvement advances disbursed in 2015 which were accrued as of December 31, 2014.

 

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The following table shows information regarding the diversification of the Company’s total investment portfolio among the different industries in which its tenants and borrowers operate as of December 31, 2015 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

 

    

Percentage of

 

 

 

Number of

 

Dollar

 

Total Dollar

 

 

 

Investment

 

Amount of

 

Amount of

 

 

 

Locations

 

Investments (a)

 

Investments

 

Restaurants

 

633

 

$

1,013,340

 

25

%  

Industrial

 

95

 

 

500,816

 

13

 

Movie theaters

 

36

 

 

298,454

 

8

 

Health clubs

 

51

 

 

287,130

 

7

 

Early childhood education centers

 

133

 

 

261,628

 

7

 

Furniture stores

 

26

 

 

166,594

 

4

 

Sporting goods and hobby stores

 

16

 

 

131,585

 

3

 

Home furnishings stores

 

18

 

 

81,859

 

2

 

All other service industries

 

258

 

 

1,005,465

 

25

 

All other retail industries

 

59

 

 

233,071

 

6

 

 

 

1,325

 

$

3,979,942

 

100

%  


(a)

The dollar amount of investments includes the investment in land, buildings, improvements and lease intangibles related to real estate investments as well as the carrying amount of the loans and direct financing receivables.

Significant Credit and Revenue Concentration

STORE Capital’s real estate investments are leased or financed to over 300 customers geographically dispersed throughout 46 states. Only one state, Texas (12%), accounted for 10% or more of the total dollar amount of STORE Capital’s investment portfolio at December 31, 2015. None of the Company’s customers represented more than 10% of the Company’s real estate investment portfolio at December 31, 2015, with the largest customer representing less than 3% of the total investment portfolio. On an annualized basis, the largest customer also represented less than 3% of the Company’s annualized investment portfolio revenues as of December 31, 2015. The Company’s customers operate their businesses across more than 300 concepts and the largest of these concepts represented 3% of the Company’s annualized total investment portfolio revenues as of December 31, 2015.

Intangible Lease Assets

The following details intangible lease assets and related accumulated amortization at December 31 (in thousands):

 

 

 

 

 

 

 

 

 

 

    

2015

    

2014

 

In-place lease assets

 

$

58,403

 

$

47,359

 

Ground lease interest assets

 

 

20,048

 

 

7,299

 

Above-market lease assets

 

 

10,273

 

 

5,526

 

Total intangible lease assets

 

 

88,724

 

 

60,184

 

Accumulated amortization

 

 

(12,038)

 

 

(6,006)

 

Net intangible lease assets

 

$

76,686

 

$

54,178

 

During the years ended December 31, 2015, 2014 and 2013, aggregate lease intangible amortization included in expense was $5.9 million, $4.0 million and $1.3 million, respectively. The amount amortized as a decrease to rental revenue for capitalized above‑market lease intangibles was $1.1 million and $0.6 million for the years ended December 31, 2015 and 2014, respectively.

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Based on the balance of intangible lease assets as of December 31, 2015, the aggregate amortization expense for the next five years is expected to be $6.2 million in 2016, $6.1 million in 2017, $5.9 million in 2018, $5.7 million in 2019, and $5.1 million in 2020, and the amount expected to be amortized as a decrease to rental revenue is $1.2 million for each of the next five years.  The weighted average remaining amortization period is approximately ten years for the in‑place lease intangibles, approximately 47 years for the amortizing ground lease interests and approximately eight years for the above‑market lease intangibles.

Real Estate Investments

The Company’s investment properties are leased to tenants under long‑term operating leases that typically include one or more renewal options. The weighted average remaining noncancelable lease term at December 31, 2015 was approximately 14 years. Substantially all of the leases are triple‑net, which means that the lessees are responsible for the payment of all property operating expenses, including property taxes, maintenance and insurance; therefore, STORE Capital is generally not responsible for repairs or other capital expenditures related to the properties. At December 31, 2015, two of the Company’s properties were vacant and not subject to a lease.

Scheduled future minimum rentals to be received under the remaining noncancelable term of the operating leases at December 31, 2015, are as follows (in thousands):

 

 

 

 

 

 

2016

 

$

314,265

 

2017

 

 

314,605

 

2018

 

 

314,699

 

2019

 

 

314,763

 

2020

 

 

313,047

 

Thereafter

 

 

3,031,799

 

Total future minimum rentals

 

$

4,603,178

 

 

Since lease renewal periods are exercisable at the option of the lessee, the preceding table presents future minimum lease payments due during the initial lease term only. In addition, the future minimum lease payments do not include any contingent rentals such as lease escalations based on future changes in CPI.

Loans and Direct Financing Receivables

At December 31, 2015, the Company held 17 loans receivable with an aggregate carrying amount of $101.4 million. Thirteen of the loans are mortgage loans secured by land and/or buildings and improvements on the mortgaged property. The four other loans are primarily loans secured by a tenant’s equipment.  Four of the mortgage loans are shorter-term loans (mature within the next five years) that require either monthly interest-only payments with a balloon payment at maturity or monthly interest-only payments for an established period and then monthly principal and interest payments with a balloon payment at maturity.  The remaining mortgage loans receivable require the borrowers to make monthly principal and interest payments based on a 40-year amortization period with balloon payments, if any, at maturity or earlier upon the occurrence of certain other events. The other loans generally require the borrower to make monthly interest‑only payments with a balloon payment at maturity.

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The Company’s loans and direct financing receivables are summarized below (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

    

 

 

    

 

 

 

 

 

 

 

 

 

Amount Outstanding

 

 

 

Stated Interest

 

Maturity

 

December 31,

 

Type

 

Rate

 

Date

 

2015

 

2014

 

Mortgage loan receivable

 

8.50

%  

 

 

$

 —

 

$

4,300

 

Mortgage loan receivable

 

9.09

%  

Jan. 2017

 

 

2,781

 

 

1,933

 

Mortgage loan receivable

 

10.00

%  

Dec. 2017

 

 

1,000

 

 

 —

 

Mortgage loan receivable

 

8.50

%  

Jan. 2018

 

 

134

 

 

 —

 

Mortgage loan receivable

 

7.80

%  

Dec. 2020

 

 

2,000

 

 

 —

 

Mortgage loan receivable

 

8.35

%  

Jan. 2028

 

 

3,761

 

 

3,775

 

Mortgage loan receivable

 

8.75

%  

Jul. 2032

 

 

23,900

 

 

23,998

 

Mortgage loan receivable

 

9.00

%  

Mar. 2053

 

 

14,543

 

 

14,595

 

Mortgage loan receivable

 

8.75

%  

Jun. 2053

 

 

6,336

 

 

6,357

 

Mortgage loan receivable

 

8.50

%  

Jun. 2053

 

 

6,737

 

 

6,697

 

Mortgage loan receivable

 

8.25

%  

Aug. 2053

 

 

3,325

 

 

3,337

 

Mortgage loans receivable (a)

 

8.50

%  

Feb. 2055

 

 

28,435

 

 

 —

 

Mortgage loan receivable

 

7.50

%  

Dec. 2055

 

 

3,086

 

 

 —

 

Total mortgage loans receivable

 

 

 

 

 

 

96,038

 

 

64,992

 

Equipment loan receivable

 

10.00

%  

 

 

 

 —

 

 

94

 

Equipment loan receivable

 

7.75

%  

Mar. 2017

 

 

3,063

 

 

 —

 

Equipment loan receivable

 

8.75

%  

May 2022

 

 

642

 

 

 —

 

Equipment loan receivable

 

7.00

%  

Aug. 2023

 

 

244

 

 

 —

 

Other loan receivable

 

9.00

%  

Nov. 2020

 

 

250

 

 

 —

 

Total principal amount outstanding—loans receivable

 

 

 

 

 

 

100,237

 

 

65,086

 

Unamortized loan origination costs

 

 

 

 

 

 

1,190

 

 

497

 

Direct financing receivables

 

 

 

 

 

 

111,915

 

 

45,771

 

Total loans and direct financing receivables

 

 

 

 

 

$

213,342

 

$

111,354

 


(a)

Represents two mortgage loans receivable secured by a single property.  The loans have an initial interest rate of 8.50% and are subject to increases over the term of the loans.  The loans allow for prepayment in whole, but not in part, with penalties ranging from 20% to 70% depending on the timing of the prepayment.

The mortgage loans receivable generally allow for prepayments in whole, but not in part, without penalty or with penalties generally ranging from 1% to 5%, depending on the timing of the prepayment, except as noted above. All other loans receivable allow for prepayments in whole or in part without penalty. Absent prepayments, scheduled maturities are expected to be as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Scheduled

    

Balloon

    

Total

 

 

 

Principal

 

Payments

 

Payments

 

2016

 

$

357

 

$

 —

 

$

357

 

2017

 

 

466

 

 

6,844

 

 

7,310

 

2018

 

 

639

 

 

134

 

 

773

 

2019

 

 

695

 

 

 —

 

 

695

 

2020

 

 

746

 

 

1,901

 

 

2,647

 

Thereafter

 

 

64,586

 

 

23,869

 

 

88,455

 

Total principal payments

 

$

67,489

 

$

32,748

 

$

100,237

 

 

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As of December 31, 2015 and 2014, the Company had $111.9 million and $45.8 million, respectively, of investments accounted for as direct financing leases; the components of the investments accounted for as direct financing receivables were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

Minimum lease payments receivable

 

$

284,287

    

$

119,552

 

Estimated residual value of leased assets

 

 

13,374

 

 

4,553

 

Unearned income

 

 

(185,746)

 

 

(78,334)

 

Net investment

 

$

111,915

 

$

45,771

 

 

 

 

As of December 31, 2015, the average future minimum lease payments to be received under the direct financing lease receivables for each of the next five years is expected to be $10.6 million.

4. Debt

Credit Facility

In September 2015, the Company expanded its $300 million unsecured revolving credit facility with a group of lenders to $400 million.  The facility is used to partially fund real estate acquisitions pending the issuance of long‑term, fixed‑rate debt.

The amended facility, which includes an expanded accordion feature that allows the size of the facility to be increased up to $800 million, matures in September 2019 and includes a one‑year extension option subject to certain conditions and the payment of a 0.15% extension fee. The facility is recourse to the Company and includes a guaranty from STORE Capital Acquisitions, LLC (SCA), one of the Company’s direct wholly‑owned subsidiaries. Borrowings under this facility require monthly payments of interest at a rate selected by the Company of either (1) LIBOR plus a credit spread ranging from 1.35% to 2.15%, or (2) the Base Rate, as defined in the credit agreement, plus a credit spread ranging from 0.35% to 1.15%. The credit spread used is based on the Company’s leverage ratio as defined in the credit agreement; based on the recent leverage ratio calculations, borrowings under the facility made on or after December 1, 2015 bear interest at LIBOR plus 1.55%. The Company must also pay a non-use fee of 0.15% or 0.25% on the unused portion of the facility, depending upon the amount of borrowings outstanding.  Previous to the amendment, borrowings under this facility required monthly payments of interest at a rate selected by the Company of either (1) one-month LIBOR plus a credit spread ranging from 1.75% to 2.50%, or (2) the Base Rate plus a credit spread ranging from 0.75% to 1.50%.

Borrowing availability under the facility is limited to 50% of the value of the Company’s eligible unencumbered assets at any point in time. At December 31, 2015, the Company had no borrowings outstanding and a pool of unencumbered assets aggregating approximately $1.56 billion, most of which are eligible unencumbered assets as defined in the credit agreement.

The Company is subject to various financial and nonfinancial covenants under the revolving credit facility including a maximum total leverage ratio of 65%, a  minimum EBITDA to fixed charges ratio of 1.5 to 1, minimum consolidated net worth of $1 billion plus 75% of any additional equity raised after September 2015,  a maximum dividend payout ratio limited to 95% of Funds from Operations and a maximum unsecured debt leverage ratio of 50%, all as defined in the credit agreement. As of December 31, 2015, the Company was in compliance with these covenants.

On April 8, 2015, the Company entered into a $50 million unsecured loan facility with a bank as a temporary supplement to borrowing capacity under its unsecured revolving credit facility.  This loan facility was subject to the same borrowing limitations and covenants as the unsecured revolving credit facility discussed above.  This facility expired in accordance with its terms in July 2015.

Prior to September 19, 2014, the Company had two bank credit facilities, which aggregated $300 million, that were secured by real estate properties which were pledged as collateral under the facilities as well as the Company’s equity interests in certain of its special purpose entity subsidiaries and the Company’s holdings of the Class B notes

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issued under its STORE Master Funding debt program discussed below. These previous secured credit facilities bore interest at one-month LIBOR plus a credit spread ranging from 2.45% to 3.00%.

At December 31, 2015 and 2014, unamortized financing costs related to the Company’s credit facilities totaled $3.2 million and $2.4 million, respectively.

Unsecured Term Notes Payable

In November 2015, the Company entered into a Note Purchase Agreement (NPA) with a group of institutional purchasers that provided for the private placement of an aggregate of $175 million of senior unsecured notes (the Notes), of which $75 million was designated as 4.95% Senior Notes, Series A due November 2022 and $100 million was designated as 5.24% Senior Notes, Series B due November 2024.  Interest on the Notes is payable semi-annually in arrears in May and November of each year. On each interest payment date, the interest rate on each series of Notes may be increased by 1.0% should the Company’s Applicable Credit Rating (as defined in the NPA) fail to be an investment-grade credit rating; the increased interest rate would remain in effect until the next interest payment date on which the Company obtains an Applicable Credit Rating that is an investment grade credit rating. The Company may prepay at any time all, or from time to time any part of, any series of Notes, in an amount not less than 5% of the aggregate principal amount of any series of Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid plus a Make-Whole Amount (as defined in the NPA).  The Notes are senior unsecured obligations of the Company and are fully and unconditionally guaranteed by SCA.

The NPA contains a number of financial covenants that are similar to the Company’s unsecured credit facility as summarized above, including the maximum total leverage ratio, the minimum EBITDA to fixed charges ratio and the minimum consolidated net worth amount, as well as a maximum secured debt leverage ratio, a maximum unsecured debt leverage ratio and a minimum interest coverage ratio on unsecured debt.  Subject to the terms of the NPA and the Notes, upon certain events of default, including, but not limited to, (i) a payment default under the Notes, and (ii) a default in the payment of certain other indebtedness by the Company or its subsidiaries, all amounts outstanding under the Notes will become due and payable at the option of the purchasers. As of December 31, 2015, the Company was in compliance with its covenants under the NPA. 

Non‑Recourse Debt Obligations of Consolidated Special Purpose Entities

During 2012, the Company implemented its STORE Master Funding debt program pursuant to which certain of its consolidated special purpose entities issue multiple series of non‑recourse net‑lease mortgage notes from time to time that are collateralized by the assets owned by these entities and their related leases (collateral). One of the principal features of the program is that, as additional series of notes are issued, new collateral is contributed to the collateral pool thereby increasing the size and diversity of the collateral pool for the benefit of all noteholders, including those who invested in prior series. Another feature of the program is the ability to substitute collateral from time to time subject to meeting certain prescribed conditions and criteria. The notes are generally segregated into Class A amortizing notes and Class B non‑amortizing notes. The Company has retained each of the Class B notes which aggregate $108 million at December 31, 2015.

The Class A notes require monthly principal and interest payments with a balloon payment due at maturity and these notes may be prepaid at any time, subject to a yield maintenance prepayment premium. As of December 31, 2015, the aggregate collateral pool securing the net‑lease mortgage notes is comprised primarily of single tenant commercial real estate properties with an aggregate investment amount of approximately $2.1 billion.

A number of additional consolidated special purpose entity subsidiaries of the Company have financed their owned real estate properties with traditional first mortgage debt. The notes require monthly principal and interest payments with balloon payments at maturity. In general, these mortgage notes payable can be prepaid in whole or in part upon payment of a yield maintenance premium. The mortgage notes payable are collateralized by real estate properties owned by these consolidated special purpose entity subsidiaries with an aggregate gross investment amount of approximately $328 million at December 31, 2015.

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The mortgage notes payable, which are obligations of consolidated special purpose entities as described in Note 2, contain various covenants customarily found in mortgage notes, including a limitation on the issuing entity’s ability to incur additional indebtedness on the underlying real estate. Although this mortgage debt generally is non‑recourse, there are customary limited exceptions to recourse for matters such as fraud, misrepresentation, gross negligence or willful misconduct, misapplication of payments, bankruptcy and environmental liabilities. Certain of the mortgage notes payable also require the posting of cash reserves with the lender or trustee if specified coverage ratios are not maintained by the Company or one of its tenants. As of December 31, 2015, the Company had one variable-rate mortgage note (outstanding principal balance of $18.9 million) which had effectively been converted to a fixed-rate note through the use of two interest rate swaps. The Company has an agreement with the counterparty to the interest rate swaps which contains a provision that, if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, the Company could also be declared in default on its interest rate swap obligations. As of December 31, 2015, the termination value of the Company’s derivatives was a liability position of $327,000 which includes accrued interest but excludes any adjustment for nonperformance risk.

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The Company’s long-term debt obligations are summarized below (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coupon

 

Outstanding Balance

 

 

 

 

Maturity

 

Interest

 

December 31,

 

 

 

 

Date

 

Rate

 

2015

 

2014

 

 

Unsecured term notes payable:

 

 

 

 

 

 

 

 

 

 

 

 

$75,000 Series A

 

Nov. 2022

 

4.95

%  

$

75,000

 

$

 —

 

 

$100,000 Series B

 

Nov. 2024

 

5.24

%  

 

100,000

 

 

 —

 

 

Total unsecured term notes

 

 

 

 

 

 

175,000

 

 

 —

 

 

Non-recourse net-lease mortgage notes:

    

    

    

    

    

 

    

    

 

    

 

 

$214,500 Series 2012-1, Class A

 

Aug. 2019

 

5.77

%  

 

204,218

 

 

207,503

 

 

$150,000 Series 2013-1, Class A-1

 

Mar. 2020

 

4.16

%  

 

143,361

 

 

145,876

 

 

$107,000 Series 2013-2, Class A-1

 

Jul. 2020

 

4.37

%  

 

103,046

 

 

104,740

 

 

$77,000 Series 2013-3, Class A-1

 

Nov. 2020

 

4.24

%  

 

74,568

 

 

75,767

 

 

$120,000 Series 2014-1, Class A-1

 

Apr. 2021

 

4.21

%  

 

119,050

 

 

119,650

 

 

$95,000 Series 2015-1, Class A-1

 

Apr. 2022

 

3.75

%  

 

94,683

 

 

 —

 

 

$102,000 Series 2013-1, Class A-2

 

Mar. 2023

 

4.65

%  

 

97,486

 

 

99,196

 

 

$97,000 Series 2013-2, Class A-2

 

Jul. 2023

 

5.33

%  

 

93,415

 

 

94,951

 

 

$100,000 Series 2013-3, Class A-2

 

Nov. 2023

 

5.21

%  

 

96,841

 

 

98,398

 

 

$140,000 Series 2014-1, Class A-2

 

Apr. 2024

 

5.00

%  

 

138,892

 

 

139,592

 

 

$270,000 Series 2015-1, Class A-2

 

Apr. 2025

 

4.17

%  

 

269,100

 

 

 —

 

 

Total non-recourse net-lease mortgage notes

 

 

 

 

 

 

1,434,660

 

 

1,085,673

 

 

Non-recourse mortgage notes payable:

 

 

 

 

 

 

 

 

 

 

 

 

$21,443 note issued July 2005; assumed in June 2014

 

Aug. 2015

 

5.26

%

 

 —

 

 

18,956

 

 

$4,000 note issued August 2006 (a)

 

Sept. 2016

 

6.33

% (a)

 

3,208

 

 

3,326

 

 

$3,800 note issued September 2006 (b)

 

Oct. 2016

 

6.47

% (b)

 

3,454

 

 

3,512

 

 

$7,088 note issued April 2007 (c)

 

May 2017

 

6.00

% (c)

 

6,569

 

 

6,676

 

 

$4,400 note issued August 2007 (d)

 

Sept. 2017

 

6.7665

% (d)

 

3,700

 

 

3,807

 

 

$8,000 note issued January 2012; assumed in December 2013

 

Jan. 2018

 

4.778

%  

 

7,242

 

 

7,511

 

 

$20,530 note issued December 2011 and amended February 2012

 

Jan. 2019

 

5.275

% (e)

 

18,851

 

 

19,317

 

 

$6,500 note issued December 2012

 

Dec. 2019

 

4.806

%  

 

6,057

 

 

6,207

 

 

$2,956 note issued June 2013

 

Jun. 2020

 

3.243

% (f)

 

2,744

 

 

2,827

 

 

$16,100 note issued February 2014

 

Mar. 2021

 

4.83

%  

 

15,516

 

 

15,857

 

 

$13,000 note issued May 2012

 

May 2022

 

5.195

%  

 

12,038

 

 

12,326

 

 

$14,950 note issued July 2012

 

Aug. 2022

 

4.95

%  

 

13,507

 

 

13,863

 

 

$26,000 note issued August 2012

 

Sept. 2022

 

5.05

%  

 

24,229

 

 

24,805

 

 

$6,400 note issued November 2012

 

Dec. 2022

 

4.707

%  

 

5,980

 

 

6,127

 

 

$11,895 note issued March 2013

 

Apr. 2023

 

4.7315

%  

 

11,210

 

 

11,478

 

 

$17,500 note issued August 2013

 

Sept. 2023

 

5.46

%  

 

16,744

 

 

17,091

 

 

$10,075 note issued March 2014

 

Apr. 2024

 

5.10

%  

 

9,841

 

 

9,984

 

 

$21,125 note issued July 2015

 

Aug. 2025

 

4.36

%

 

21,125

 

 

 —

 

 

$7,750 note issued February 2013

 

Mar. 2038

 

4.81

% (g)

 

7,295

 

 

7,468

 

 

$6,944 notes issued March 2013

 

Apr. 2038

 

4.50

% (h)

 

6,504

 

 

6,684

 

 

Total non-recourse mortgage notes payable

 

 

 

 

 

 

195,814

 

 

197,822

 

 

Total non-recourse debt obligations of consolidated special purpose entities

 

 

 

 

 

 

1,630,474

 

 

1,283,495

 

 

Total long-term debt obligations

 

 

 

 

 

 

1,805,474

 

 

1,283,495

 

 

Unamortized net premium

 

 

 

 

 

 

27

 

 

656

 

 

Unamortized deferred financing costs

 

 

 

 

 

 

(35,554)

 

 

(30,909)

 

 

Total long-term debt obligations, net

 

 

 

 

 

$

1,769,947

 

$

1,253,242

 

 


(a)

Note was assumed in July 2012 at a premium; estimated effective yield at assumption of 5.15%.

(b)

Note was assumed in April 2014 at a premium; estimated effective yield at assumption of 3.88%.

(c)

Note was assumed in December 2013 at a premium; estimated effective yield at assumption of 4.45%.

(d)

Note was assumed in September 2014 at a premium; estimated effective yield at assumption of 3.40%.

(e)

Note is a variable‑rate note which resets monthly at 1‑month LIBOR + 3.50%. The Company has entered into two interest rate swap agreements that effectively convert the floating rate on a $12.4 million portion and a $6.5 million portion of this mortgage note payable to fixed rates of 5.299% and 5.230%, respectively.

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(f)

Note is a variable‑rate note which resets monthly at 1‑month LIBOR + 3.00%; rate shown is effective rate at December 31, 2015.

(g)

Interest rate is effective for first 10 years and will reset to greater of (1) initial rate plus 400 basis points or (2) Treasury rate plus 400 basis points.

(h)

Interest rate is effective for first 10 years and will reset to the lender’s then prevailing interest rate.

As of December 31, 2015, the scheduled maturities, including balloon payments, on the long-term debt obligations during the next five years and thereafter are as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Scheduled

    

Balloon

    

 

 

 

 

 

Principal

 

Payments

 

Total

 

2016

 

$

21,581

 

$

6,550

 

$

28,131

 

2017

 

 

22,449

 

 

9,921

 

 

32,370

 

2018

 

 

23,234

 

 

6,665

 

 

29,899

 

2019

 

 

21,945

 

 

213,539

 

 

235,484

 

2020

 

 

16,136

 

 

295,994

 

 

312,130

 

Thereafter

 

 

45,173

 

 

1,122,287

 

 

1,167,460

 

 

 

$

150,518

 

$

1,654,956

 

$

1,805,474

 

 

 

5. Income Taxes

The Company’s total current income tax expense from continuing operations was as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

    

2015

    

2014

    

2013

 

Federal income tax

 

$

 

$

 

$

 —

 

State income tax

 

 

274

 

 

180

 

 

155

 

Total current income tax expense

 

$

274

 

$

180

 

$

155

 

 

During 2013, $853,000 of federal income tax and $132,000 of state income tax, were attributable to discontinued operations (Note 8) of the Company’s taxable REIT subsidiary. There was no current income tax expense attributable to discontinued operations for the year ended December 31, 2014. The Company’s deferred income tax expense and its ending balance in deferred tax assets and liabilities were immaterial for 2015, 2014 and 2013.

The Company files federal, state and local income tax returns. Certain state income tax returns filed for 2011 and tax returns filed for 2012 through 2014 remain subject to examination. The Company has net operating loss carryforwards (NOLs) for income tax purposes of $1.5 million at December 31, 2015, 2014 and 2013. These losses are available to reduce future REIT taxable income until they expire in 2031.  At this time, the Company does not believe it is likely it will use the NOLs to reduce future taxable income; therefore, any deferred tax asset associated with such NOLs has been fully reserved.

Management of the Company determines whether any tax positions taken or expected to be taken meet the “more‑likely‑than‑not” threshold of being sustained by the applicable federal, state or local tax authority. As of December 31, 2015 and 2014, management concluded that there is no tax liability relating to uncertain income tax positions. The Company’s policy is to recognize interest related to any underpayment of income taxes as interest expense and to recognize any penalties as operating expenses. There was no accrual for interest or penalties at December 31, 2015 and 2014.

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The Company’s common stock distributions were characterized for federal income tax purposes as follows (per share):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

 

2015

 

2014

 

2013

 

Ordinary income dividends

    

$

0.8714

    

$

0.7771

    

$

0.6627

 

Capital gain dividends

 

 

 —

 

 

0.0561

 

 

 —

 

Return of capital

 

 

0.0125

 

 

0.0427

 

 

0.2555

 

Total

 

$

0.8839

 

$

0.8759

 

$

0.9182

 

 

 

6. Stockholders’ Equity

On March 30, 2015, STORE Holding redeemed all of its Series A membership interests that were held by members of the Company’s board and senior management through the distribution of 653,382 shares of common stock of the Company to those members. In June and December 2015, the Company completed stock offerings in which the Company issued and sold an aggregate of 25,562,500 shares of common stock and STORE Holding sold an aggregate of 11,812,500 shares from its holdings of the Company’s common stock.  The Company received proceeds totaling $521 million, net of underwriters’ discount and offering expenses, in connection with these offerings.  On December 31, 2015, there were 140,858,765 shares of common stock outstanding, including 70,336,144 shares held by STORE Holding and 869,239 shares granted under the Company’s long-term incentive plans (Note 7).  STORE Holding held 82,802,026 common shares at December 31, 2014.

The Company declared dividends payable to common stockholders totaling $132.8 million, $77.7 million and $45.0 million during the years ended December 31, 2015, 2014 and 2013, respectively.

In November 2014, the Company’s board of directors declared a 1.67‑for‑one split of its common stock effected through a dividend to its stockholders. The stock dividend was treated as a stock split for accounting purposes; the $0.01 par value of the common stock was unchanged. All historical common share data, per share amounts and related information was adjusted retroactively to reflect the effect of the stock split.

The Company issued 125 shares of 12.5% Series A Cumulative Non‑Voting Preferred Stock (Preferred Stock) at a price of $1,000 per share on January 6, 2012. On November 21, 2014, immediately following the closing of its IPO, the Company elected to redeem all 125 shares of its Preferred Stock for a redemption price of $1,000 per share plus accrued and unpaid dividends.  During the years ended December 31, 2014 and 2013, the Company paid dividends on the Preferred Stock of $14,000 and $16,000, respectively.

7. Long‑Term Incentive Plans

In November 2014, the Company’s Board of Directors approved the adoption of the STORE Capital Corporation 2015 Omnibus Equity Incentive Plan (the 2015 Plan), which permits the issuance of up to 6,903,076 shares of common stock, which represented 6% of the number of issued and outstanding shares of the Company’s common stock upon the completion of the IPO. The 2015 Plan allows for awards of restricted shares of the Company’s common stock and other awards and performance‑based grants to officers, directors and key employees of the Company. As of December 31, 2015, 6,468,110 shares are available for grant under the 2015 Plan.

In 2012, the Company’s Board of Directors established the STORE Capital Corporation 2012 Long‑Term Incentive Plan (the 2012 Plan) which permits the issuance of up to 1,035,400 shares of common stock. The 2012 Plan allows for awards of restricted shares of the Company’s common stock and other awards and performance‑based grants to officers, directors and key employees of the Company. As of December 31, 2015, 252,907 shares remain available for grant under the 2012 Plan.

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The following table summarizes the restricted stock award (RSA) activity under both the 2015 and 2012 Plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2013

 

 

 

 

 

Weighted

 

 

 

Weighted

 

 

 

Weighted

 

 

 

Number of

 

Average Share

 

Number of

 

Average Share

 

Number of

 

Average Share

 

 

 

Shares

 

Price (1)

 

Shares

 

Price (1)

 

Shares

 

Price (1)

 

Outstanding non-vested shares, beginning of year

    

655,906

    

$

16.00

    

336,203

    

$

13.59

    

145,776

    

$

11.98

 

Shares granted

 

86,746

 

$

22.96

 

416,403

 

$

17.35

 

228,804

 

$

14.37

 

Shares vested

 

(161,979)

 

$

14.13

 

(93,160)

 

$

13.44

 

(36,449)

 

$

11.98

 

Shares forfeited

 

(3,022)

 

$

14.37

 

(3,540)

 

$

14.30

 

(1,928)

 

$

14.14

 

Outstanding non-vested shares, end of year

 

577,651

 

$

17.58

 

655,906

 

$

16.00

 

336,203

 

$

13.59

 


(1)

Grant date fair value

The Company estimates the fair value of RSAs at the date of grant and recognizes that amount in expense over the vesting period as the greater of the amount amortized on a straight‑line basis or the amount vested. The fair value of the RSAs is based on the per‑share market closing price of the Company’s common stock on the date of the grant. Prior to the Company’s IPO, the fair value was based on the per-share price of the common stock issued in the Company’s private equity offerings. Generally, restricted shares granted vest in 25% increments in February of each year. Certain directors receive annual grants that vest at the end of each term served. Due to a historically low turnover rate, the Company does not estimate a forfeiture rate for non-vested shares. Accordingly, unexpected forfeitures will lower share-based compensation expense during the applicable period. Under the terms of the 2012 and 2015 Plans, the Company pays non-refundable dividends to the holders of non-vested shares. Applicable accounting guidance requires that the dividends paid to holders of these non-vested shares be charged as compensation expense to the extent that they relate to non-vested shares that do not or are not expected to vest.

In March 2015, the Company issued 348,220 restricted stock units (RSUs) with both a market condition and a service condition to its executive officers.  The number of common shares to be received at vesting will range from zero to 100% of the total RSUs granted based on total shareholder return (TSR) on the Company’s common stock measured against the benchmark TSR of a peer group over a three-year performance period ending December 31, 2017. The TSR is a measure of stock price appreciation plus dividends paid during the measurement period.  To the extent market and service conditions are met, the RSUs vest 50% at the end of 2017 and, subject to continued employment, 50% at the end of 2018. The Company valued the RSUs using a Monte Carlo simulation model on the date of grant which resulted in a grant date fair value of $4.4 million which is amortized to expense on a tranche by tranche basis ratably over the vesting periods. The Monte Carlo simulation was computed based on a volatility assumption of 23.51%, a risk-free interest rate of 0.84% and a dividend yield of zero. The RSUs accrue dividend equivalents which are paid only if the award vests. At December 31, 2015, there were 348,220 RSUs outstanding.

Compensation expense for equity‑based payments totaled $4.7 million, $2.3 million and $1.2 million for the years ended December 31, 2015, 2014 and 2013, respectively, and is included in general and administrative expenses. At December 31, 2015, STORE Capital had $10.5 million of unrecognized compensation cost related to non‑vested equity‑based compensation arrangements which will be recognized through February 2019.

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8. Income from Discontinued Operations

Periodically, the Company may sell real estate properties it owns. Effective January 1, 2014, the Company adopted ASU No. 2014‑08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, under which only disposals representing a strategic shift in operations of the Company and that have (or will have) a major effect on the Company’s operations and financial results are to be presented as discontinued operations. The Company was required to continue to classify any property disposal or property classified as held for sale as of December 31, 2013 as discontinued operations prospectively; therefore, the gains and losses from these property dispositions and all operations from these properties were reclassified to discontinued operations, net of any related income tax, in the consolidated statements of income. This presentation had no impact on net income or cash flow. The Company did not classify any additional property disposals as discontinued operations subsequent to December 31, 2013.

Amounts reclassified to discontinued operations are summarized below (in thousands):

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

 

2014

 

2013

 

Revenues

    

$

157

    

$

2,425

 

Expenses:

 

 

 

 

 

 

 

General and administrative

 

 

2

 

 

17

 

Depreciation and amortization

 

 

 

 

575

 

Total expenses

 

 

2

 

 

592

 

Income from discontinued real estate investments

 

 

155

 

 

1,833

 

Gain on the dispositions of real estate investments

 

 

985

 

 

3,147

 

Income tax expense

 

 

 

 

(985)

 

Income from discontinued operations, net of tax

 

$

1,140

 

$

3,995

 

 

 

9. Commitments and Contingencies

In the normal course of business, the Company enters into various types of commitments to purchase real estate properties. These commitments are generally subject to the Company’s customary due diligence process and, accordingly, a number of specific conditions must be met before the Company is obligated to purchase the properties. As of December 31, 2015, the Company had commitments to its customers to fund improvements to owned real estate properties totaling approximately $59.6 million which will generally result in increases to the rental revenue due under the related contracts.

The Company entered into a lease agreement with an unrelated third party for its corporate office space that will expire in June 2018. During the years ended December 31, 2015, 2014 and 2013, total rent expense was $270,000,  $252,000 and $220,000, respectively.  At December 31, 2015, the Company’s future minimum rental commitments under all noncancelable operating leases was approximately $326,000 in 2016, $339,000 in 2017 and $171,000 in 2018.

The Company has employment agreements with each of its executive officers which will expire in November 2018.  The agreements provide for minimum annual base salaries and annual incentive compensation based on the satisfactory achievement of reasonable performance criteria and objectives to be adopted by the Company’s Board of Directors each year.  In addition, each officer is eligible to receive equity awards as determined by the Company’s Board of Directors.  In the event an executive officer is terminated without cause or terminates employment for good reason, the Company is liable for a lump‑sum severance payment in an amount equal to, in the case of the Company’s Chief Executive Officer, the sum of (i) two times his base salary and (ii) two times the target cash bonus for which he was eligible in the prior fiscal year (whether or not received); and, in the case of the Company’s other executive officers, the sum of (i) 1.5 times his or her base salary and (ii) 1.5 times the target cash bonus for which he or she was eligible in the prior fiscal year (whether or not received); plus, in the case of all executive officers, certain other specified termination benefits.  In the event of a termination without cause, as defined in the employment agreements, the executive officer is entitled to immediate vesting of any and all outstanding unvested shares of the Company’s restricted stock that he or she has been awarded as part of the Company’s incentive compensation program. For unvested RSUs, in

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the event of a qualified termination, as defined in the award agreement, the executive officer is entitled to a portion of any earned award, as determined under the award agreement, based on the elapsed performance period.

The Company has a defined contribution retirement savings plan qualified under Section 401(a) of the Internal Revenue Code (the 401(k) Plan). The 401(k) Plan is available to employees who have completed at least six consecutive months of service or, if earlier, one year of service with the Company. STORE Capital provides a matching contribution in cash, up to a maximum of 4% of compensation, which vests immediately. The matching contributions made by the Company totaled approximately $265,000 in 2015, $258,000 in 2014 and $160,000 in 2013.

10. Fair Value of Financial Instruments

The Company’s derivatives are required to be measured at fair value in the Company’s consolidated financial statements on a recurring basis.  Derivatives are measured under a market approach, using prices obtained from a nationally recognized pricing service and pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy. At December 31, 2015 and 2014, the fair value of the Company’s derivative instruments (interest rate swaps) was a liability of $293,000 and $266,000, respectively, included in other liabilities on the consolidated balance sheets.

In addition to the disclosures for assets and liabilities required to be measured at fair value at the balance sheet date, companies are required to disclose the estimated fair values of all financial instruments, even if they are not carried at their fair value. The fair values of financial instruments are estimates based upon market conditions and perceived risks at December 31, 2015 and 2014. These estimates require management’s judgment and may not be indicative of the future fair values of the assets and liabilities.

Financial assets and liabilities for which the carrying value approximates their fair value include cash and cash equivalents, restricted cash and escrow deposits, accounts receivable, accounts payable and tenant deposits. Generally these assets and liabilities are short‑term in duration and are recorded at fair value on the consolidated balance sheets. Additionally, the Company believes the carrying value of its fixed‑rate loans receivable approximates fair value based on market quotes for comparable instruments or discounted cash flow analysis using estimates of the amount and timing of future cash flows, market rates and credit spreads.

The estimated fair value of the Company’s long-term debt obligations has been derived based on market observable inputs such as interest rates and discounted cash flow analyses using estimates of the amount and timing of future cash flows, market rates and credit spreads. These measurements are classified as Level 2 of the fair value hierarchy. At December 31, 2015, the Company’s long-term debt obligations had a carrying value of $1,769.9 million and an estimated fair value of $1,820.7 million. At December 31, 2014, the Company’s long-term debt obligations had a carrying value of $1,253.2 million and an estimated fair value of $1,349.0 million.

 

 

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11. Quarterly Financial Information (Unaudited)

The following table summarizes the unaudited consolidated quarterly financial information for 2015 and 2014. All adjustments (consisting of only normal recurring accruals) necessary for a fair presentation of the interim periods presented are included. The calculation of basic and diluted per share amounts for each quarter is based on the weighted average shares outstanding for that period; consequently, the sum of the quarters may not necessarily be equal to the full year basic and diluted net income per share (amounts in thousands, except per-share amounts):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

First Quarter

    

Second Quarter

    

Third Quarter

    

Fourth Quarter

    

Total

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

61,459

 

$

68,900

 

$

74,791

 

$

79,612

 

$

284,762

 

Income from continuing operations (a)

 

 

17,066

 

 

18,439

 

 

22,311

 

 

24,632

 

 

82,448

 

Net income

 

 

17,066

 

 

19,634

 

 

22,998

 

 

24,072

 

 

83,770

 

Basic and diluted income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

 

0.15

 

 

0.17

 

 

0.18

 

 

0.18

 

 

0.68

 

Net income

 

 

0.15

 

 

0.17

 

 

0.18

 

 

0.18

 

 

0.68

 

Cash dividends declared per common share

 

 

0.2500

 

 

0.2500

 

 

0.2700

 

 

0.2700

 

 

1.0400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

First Quarter

    

Second Quarter

    

Third Quarter

    

Fourth Quarter

    

Total

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

39,329

 

$

45,022

 

$

50,928

 

$

55,162

 

$

190,441

 

Income from continuing operations (a)

 

 

8,693

 

 

9,035

 

 

10,622

 

 

14,156

 

 

42,506

 

Net income

 

 

9,539

 

 

10,422

 

 

10,755

 

 

17,423

 

 

48,139

 

Basic and diluted income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

 

0.14

 

 

0.14

 

 

0.13

 

 

0.18

 

 

0.59

 

Net income

 

 

0.15

 

 

0.15

 

 

0.13

 

 

0.18

 

 

0.61

 

Cash dividends declared per common share

 

 

0.2395

 

 

0.2455

 

 

0.2870

 

 

0.2178

 

 

0.9898

 


(a)

Excludes gains on dispositions of real estate which are included in continuing operations for purposes of calculating per share amounts.

 

 

 

 

 

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Item 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

Item 9A.  CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of the end of the period covered by this Annual Report on Form 10-K, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that, as of the end of the period covered by this Annual Report on Form 10-K, the Company’s disclosure controls and procedures were effective.

Management’s Report on Internal Control over Financial Reporting

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f)  under the Exchange Act) for the Company.  Under the supervision and with the participation of the management, the Chief Executive Officer and Chief Financial Officer of the Company conducted an evaluation of the effectiveness of the internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations (2013 Framework) (COSO).  Based on such evaluation, management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2015.

The Company’s internal control over financial reporting as of December 31, 2015 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which is included herein.

Changes in Internal Control  over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth fiscal quarter to which this report relates that materially affected, or are reasonably likely to materially affect, the internal control over financial reporting of the Company.

 

Item 9B.  OTHER INFORMATION

None.

 

PART III

Item 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this item is incorporated by reference to the information set forth under the headings “Proposal No. 1Election of Directors,” “Corporate Governance Matters,” “Executive Officers” and “Section 16(a) Beneficial Ownership Reporting Compliance” in the Company’s definitive proxy statement for its 2016 Annual Meeting of Stockholders (2016 Proxy Statement). 

Our Board of Directors has adopted a code of business conduct and ethics (Code of Ethics) that applies to all of our officers, directors and employees. Our Code of Ethics is available free of charge on the Company’s investor relations website, http:/ir.storecapital.com, and is incorporated by reference to the information set forth under the heading “Corporate Governance Matters” in our 2016 Proxy Statement.  We intend to satisfy the disclosure requirements of

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Form 8-K regarding any amendment to, or a waiver from, any provision of our Code of Ethics by posting such amendment or waiver on our website.

Item 11.  EXECUTIVE COMPENSATION

The information required by this item is incorporated by reference to the information set forth under the headings “Executive Compensation” and “Corporate Governance Matters” in our 2016 Proxy Statement.

Item 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by this item is incorporated by reference to the information set forth under the heading “Beneficial Ownership of Common Stock by Certain Beneficial Owners and Management” in our 2016 Proxy Statement.

Securities Authorized for Issuance Under Equity Compensation Plans

The following information reflects certain information about our equity compensation plan as of December 31, 2015:

 

 

 

 

 

 

 

 

 

 

    

Number of securities

    

 

    

Number of securities

 

 

 

to be issued upon

 

Weighted-average

 

available for future issuance

 

 

 

exercise of

 

exercise price of

 

under equity compensation

 

 

 

outstanding options,

 

outstanding options,

 

plans (excluding securities

 

Plan category

 

warrants and rights

 

warrants and rights

 

reflected in column (a))

 

 

 

(a)

 

(b)

 

(c)

 

Equity compensation plans approved by stockholders

 

 —

 

 —

 

6,721,017
(1)

Equity compensation plans not approved by stockholders

 

 —

 

 —

 

 —

 

Total

 

 —

 

 —

 

6,721,017

 

 


(1)

Represents 6,468,110 shares available for future issuance under the STORE Capital Corporation 2015 Omnibus Equity Incentive Plan and 252,907 shares available for future issuance under the STORE Capital Corporation 2012 Long-Term Incentive Plan.

 

Item 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this item is incorporated by reference to the information set forth under the headings “Corporate Governance Matters” and “Certain Relationships and Related Party Transactions” in our 2016 Proxy Statement.

Item 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by this item is incorporated by reference to the information set forth under the heading “Proposal No. 2Ratification of Appointment of Auditors” in our 2016 Proxy Statement.

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PART IV

Item 15.  EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) The following documents are filed as part of this Annual Report:

1. Financial Statements. (see Item 8)

Reports of Independent Registered Public Accounting Firm

Consolidated Balance Sheets as of December 31, 2015 and 2014

Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013

Consolidated Statements of Comprehensive Income for the years ended December 31, 2015, 2014 and 2013

Consolidated Statements of Stockholders Equity for the years ended December 31, 2015, 2014 and 2013

Consolidated Statements of Cash Flows for the years ended December 31, 2015,  2014 and 2013

Notes to Consolidated Financial Statements

2. Financial Statement Schedules. (see schedules beginning on page F-1)

Schedule IIIReal Estate and Accumulated Depreciation

Schedule IVMortgage Loans on Real Estate

 

All other schedules are omitted since the required information is not present or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements and notes thereto.

 

3. Exhibits. The exhibits filed with this Annual Report are set forth in the Exhibit Index.

 

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SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

STORE CAPITAL CORPORATION

 

 

Date:  February 25, 2016

By:

/s/ Christopher H. Volk

 

 

Christopher H. Volk

 

 

Chief Executive Officer and
President (Principal Executive Officer)

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below on February 25, 2016 by the following persons on behalf of the registrant and in the capacities indicated.

Signature

 

Title

 

Date

 

 

 

 

 

/s/Christopher H. Volk

 

Director, President and Chief Executive

 

February 25, 2016

Christopher H. Volk

 

Officer (principal executive officer)

 

 

 

 

 

 

 

/s/Catherine Long

 

Executive Vice President, Chief Financial Officer (principal

 

February 25, 2016

Catherine Long

 

financial and accounting officer)

 

 

 

 

 

 

 

/s/Morton H. Fleischer

 

Chairman of the Board of Directors

 

February 25, 2016

Morton H. Fleischer

 

 

 

 

 

 

 

 

 

/s/Mahesh Balakrishnan

 

Director

 

February 25, 2016

Mahesh Balakrishnan

 

 

 

 

 

 

 

 

 

/s/Manish Desai

 

Director

 

February 25, 2016

Manish Desai

 

 

 

 

 

 

 

 

 

/s/Joseph M. Donovan

 

Director

 

February 25, 2016

Joseph M. Donovan

 

 

 

 

 

 

 

 

 

 

 

Director

 

 

Einar A. Seadler

 

 

 

 

 

 

 

 

 

/s/Rajath Shourie

 

Director

 

February 25, 2016

Rajath Shourie

 

 

 

 

 

 

 

 

 

/s/Derek Smith

 

Director

 

February 25, 2016

Derek Smith

 

 

 

 

 

 

 

 

 

/s/Quentin P. Smith, Jr.

 

Director

 

February 25, 2016

Quentin P. Smith, Jr.

 

 

 

 

 

 

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EXHIBIT INDEX

 

The exhibits listed below are filed as part of this Annual Report.  References under the caption “Location” to exhibits or other filings indicate that the exhibit or other filing has been filed, that the indexed exhibit and the exhibit referred to are the same and that the exhibit referred to is incorporated by reference.  Management contracts and compensatory plans or arrangements filed as exhibits to this Annual Report are identified by an asterisk.  The SEC file number for STORE Capital Corporation’s Exchange Act filings referenced below is 1-36739.

 

Exhibit

 

Description

 

Location

3.1

 

Articles of Amendment and Restatement of STORE Capital Corporation filed with the State Department of Assessments and Taxation of Maryland on November 18, 2014.

 

Exhibit 3.1 to the Company’s Current Report on Form 8-K dated November 18, 2014 and filed with the SEC on November 21, 2014.

3.2

 

Amended and Restated Bylaws of STORE Capital Corporation dated November 21, 2014.

 

Exhibit 3.2 to the Company’s Current Report on Form 8-K dated November 18, 2014 and filed with the SEC on November 21, 2014.

4.1

 

Form of Common Stock Certificate.

 

Exhibit 4.1 to the Company’s Current Report on Form 8-K dated November 18, 2014 and filed with the SEC on November 21, 2014.

4.2

 

Third Amended and Restated Master Indenture dated as of May 6, 2014, among STORE Master Funding I, LLC, STORE Master Funding II, LLC, STORE Master Funding III, LLC, STORE Master Funding IV,  LLC and STORE Master Funding V, LLC, each a Delaware limited liability company, collectively as issuers, and Citibank, N.A., as indenture trustee, relating to Net-Lease Mortgage Notes.

 

Exhibit 4.1 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 dated and filed with the SEC as of September 23, 2014 (File No. 333-198486).

4.3

 

Series 2012-1 Indenture Supplement dated as of August 23, 2012, between STORE Master Funding I, LLC and Citibank, N.A., as indenture trustee.

 

Exhibit 4.2 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 dated and filed with the SEC as of September 23, 2014 (File No. 333-198486).

4.4

 

Series 2013-1 Indenture Supplement dated as of March 27, 2013, between STORE Master Funding I, LLC, STORE Master Funding II, LLC and Citibank, N.A., as indenture trustee.

 

Exhibit 4.3 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 dated and filed with the SEC as of September 23, 2014 (File No. 333-198486).

4.5

 

Series 2013-2 Indenture Supplement dated as of July 25, 2013, between STORE Master Funding I, LLC, STORE Master Funding II, LLC, STORE Master Funding III, LLC and Citibank, N.A., as indenture trustee.

 

Exhibit 4.4 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 dated and filed with the SEC as of September 23, 2014 (File No. 333-198486).

4.6

 

Series 2013-3 Indenture Supplement dated as of December 3, 2013, among STORE Master Funding I, LLC, STORE Master Funding II, LLC STORE Master Funding III, LLC, STORE Master Funding IV, LLC and Citibank, N.A., as indenture trustee.

 

Exhibit 4.5 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 dated and filed with the SEC as of September 23, 2014 (File No. 333-198486).

4.7

 

Series 2014-1 Indenture Supplement dated as of May 6, 2014, among STORE Master Funding I, LLC, STORE Master Funding II, LLC, STORE Master Funding III, LLC, STORE Master Funding IV, LLC, STORE Master Funding V, LLC and Citibank, N.A., as indenture trustee.

 

Exhibit 4.6 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 dated and filed with the SEC as of September 23, 2014 (File No. 333-198486).

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4.8

 

Fourth Amended and Restated Master Indenture dated as of April 16, 2015, among STORE Master Funding I, LLC, STORE Master Funding II, LLC, STORE Master Funding III, LLC, STORE Master Funding IV, LLC, STORE Master Funding V, LLC and STORE Master Funding VI, LLC, each a Delaware limited liability company, collectively as issuers, and Citibank, N.A., as indenture trustee, relating to Net-Lease Mortgage Notes.

 

Exhibit 4.1 to the Company’s Current Report on Form 8-K dated April 16, 2015 and filed with the SEC on April 20, 2015.

4.9

 

Series 2015-1 Indenture Supplement dated as of April 16, 2015, among STORE Master Funding I, LLC, STORE Master Funding II, LLC, STORE Master Funding III, LLC, STORE Master Funding IV, LLC, STORE Master Funding V, LLC and STORE Master Funding VI, LLC, each a Delaware limited liability company, and Citibank, N.A., as indenture trustee.

 

Exhibit 4.2 to the Company’s Current Report on Form 8-K dated April 16, 2015 and filed with the SEC on April 20, 2015.

4.10

 

Form of base indenture for debt securities.

 

Exhibit 4.4 to the Company’s Registration Statement on Form S-3 dated and filed with the SEC as of December 1, 2015.

10.1

 

Third Amended and Restated Property Management and Servicing Agreement dated as of May 6, 2014, among STORE Master Funding I, LLC, STORE Master Funding II, LLC, STORE Master Funding III, LLC, STORE Mastering Funding IV, LLC and STORE Master Funding V, LLC, each a Delaware limited liability company, collectively as issuers, STORE Capital Corporation, a Maryland corporation, as property manager and special servicer, and Midland Loan Services, Inc., a Delaware corporation, as back-up manager and Citibank, N.A., as indenture trustee.

 

Exhibit 10.1 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 dated and filed with the SEC as of September 23, 2014 (File No. 333-198486).

10.2

 

Stockholders Agreement among STORE Capital Corporation and the persons named therein, effective as of November 21, 2014.

 

Exhibit 10.1 to the Company’s Current Report on Form 8-K dated November 20, 2014 and filed with the SEC on November 26, 2014.

10.3

 

Registration Rights Agreement among STORE Capital Corporation and the persons named therein, effective as of November 21, 2014.

 

Exhibit 10.2 to the Company’s Current Report on Form 8-K dated November 20, 2014 and filed with the SEC on November 26, 2014.

10.4

*

STORE Capital Corporation 2015 Omnibus Equity Incentive Plan, effective as of November 20, 2014.

 

Exhibit 10.3 to the Company’s Current Report on Form 8-K dated November 20, 2014 and filed with the SEC on November 26, 2014.

10.5

*

STORE Capital Corporation 2012 Long-Term Incentive Plan.

 

Exhibit 10.7 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 dated and filed with the SEC as of September 23, 2014 (File No. 333-198486).

10.6

*

Form of 2012 Long-Term Incentive Award Plan Restricted Stock Award Grant Agreement.

 

Exhibit 10.8 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 dated and filed with the SEC as of September 23, 2014 (File No. 333-198486).

10.7

*

STORE Capital Corporation Director Compensation Program.

 

Exhibit 10.5 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 dated and filed with the SEC as of September 23, 2014 (File No. 333-198486).

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10.8

*

Form of Indemnification Agreement between STORE Capital Corporation and each of its directors and executive officers.

 

Exhibit 10.10 to the Company’s Current Report on Form 8-K dated November 20, 2014 and filed with the SEC on November 26, 2014.

10.9

*

Employment Agreement among STORE Capital Corporation, STORE Capital Advisors, LLC and Christopher H. Volk, effective as of November 21, 2014.

 

Exhibit 10.4 to the Company’s Current Report on Form 8-K dated November 20, 2014 and filed with the SEC on November 26, 2014.

10.10

*

Employment Agreement among STORE Capital Corporation, STORE Capital Advisors, LLC and Michael T. Bennett, effective as of November 21, 2014.

 

Exhibit 10.5 to the Company’s Current Report on Form 8-K dated November 20, 2014 and filed with the SEC on November 26, 2014.

10.11

*

Employment Agreement among STORE Capital Corporation, STORE Capital Advisors, LLC and Catherine Long, effective as of November 21, 2014.

 

Exhibit 10.6 to the Company’s Current Report on Form 8-K dated November 20, 2014 and filed with the SEC on November 26, 2014.

10.12

*

Employment Agreement among STORE Capital Corporation, STORE Capital Advisors, LLC and Mary Fedewa, effective as of November 21, 2014.

 

Exhibit 10.7 to the Company’s Current Report on Form 8-K dated November 20, 2014 and filed with the SEC on November 26, 2014.

10.13

*

Employment Agreement among STORE Capital Corporation, STORE Capital Advisors, LLC and Michael J. Zieg, effective as of November 21, 2014.

 

Exhibit 10.8 to the Company’s Current Report on Form 8-K dated November 20, 2014 and filed with the SEC on November 26, 2014.

10.14

*

Employment Agreement among STORE Capital Corporation, STORE Capital Advisors, LLC and Christopher K. Burbach, effective as of November 21, 2014.

 

Exhibit 10.9 to the Company’s Current Report on Form 8-K dated November 20, 2014 and filed with the SEC on November 26, 2014.

10.15

 

Credit Agreement dated as of September 19, 2014, by and among STORE Capital Corporation, as Borrower, KeyBank National Association, the other Lenders which are parties thereto and other Lenders that may become parties thereto, KeyBank National Association, as Administrative Agent, Wells Fargo Bank, National Association, as Syndication Agent, BMO Harris Bank, N.A. and Regions Bank, as Co-Documentation Agents, and KeyBanc Capital Markets Inc. and Wells Fargo Securities, LLC as Joint Lead Arrangers and Joint Book Runners.

 

Exhibit 10.21 to Amendment No. 1 to the Company’s Registration Statement on Form S-11 dated and filed with the SEC as of September 23, 2014 (File No. 333-198486).

10.16

 

Form of Restricted Share Award Agreement

 

Exhibit 10.1 to the Company’s Current Report on Form 8-K dated March 27, 2015 and filed with the SEC on March 30, 2015.

10.17

 

Form of Restricted Share Unit Award Agreement

 

Exhibit 10.2 to the Company’s Current Report on Form 8-K dated March 27, 2015 and filed with the SEC on March 30, 2015.

10.18

 

Fourth Amended and Restated Property Management and Servicing Agreement dated as of April 16, 2015, among STORE Master Funding I, LLC, STORE Master Funding II, LLC, STORE Master Funding III, LLC, STORE Mastering Funding IV, LLC, STORE Master Funding V, LLC and STORE Master Funding VI, LLC, each a Delaware limited liability company, collectively as issuers, STORE Capital Corporation, a Maryland corporation, as property manager and special servicer, and Midland Loan Services, Inc., a Delaware corporation, as back-up manager and Citibank, N.A., as indenture trustee

 

Exhibit 10.1 to the Company’s Current Report on Form 8-K dated April 16, 2015 and filed with the SEC on April 20, 2015.

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10.19

 

First Amendment to the Fourth Amended and Restated Property Management and Servicing Agreement, dated as of April 16, 2015, effective as of July 10, 2015.

 

Exhibit 10.2 to the Company’s Quarterly Report for the period ended June 30, 2015 on Form 10-Q dated August 14, 2015 and filed with the SEC on August 15, 2015.

10.20

 

First Amendment to Credit Agreement dated as of September 19, 2014 and other Loan Documents, dated as of September 22, 2015.

 

Exhibit 10.2 to the Company’s Current Report on Form 8-K dated September 22, 2015 and filed with the SEC on September 25, 2015.

10.21

 

Note Purchase Agreement dated as of November 19, 2015

 

Exhibit 10.1 to the Company’s Current Report on Form 8-K dated November 19, 2015 and filed with the SEC on November 23, 2015.

10.22

 

Subsidiary Guaranty Agreement dated as of November 19, 2015

 

Exhibit 10.2 to the Company’s Current Report on Form 8-K dated November 19, 2015 and filed with the SEC on November 23, 2015.

12.1

 

Statement of Computation of Ratios of Earnings to Fixed Charges.

 

Filed herewith.

21

 

List of Subsidiaries.

 

Filed herewith.

23

 

Consent of Independent Registered Public Accounting Firm.

 

Filed herewith.

31.1

 

Rule 13a-14(a) Certification of the Chief Executive Officer.

 

Filed herewith.

31.2

 

Rule 13a-14(a) Certification of the Chief Financial Officer.

 

Filed herewith.

32.1

 

Section 1350 Certification of the Chief Executive Officer.

 

Filed herewith.

32.2

 

Section 1350 Certification of the Chief Financial Officer.

 

Filed herewith.

 

 

 

 

 

101.1

 

The following materials from STORE Capital Corporation Annual Report on Form 10-K for the period ended December 31, 2015, are formatted in Extensible Business Reporting Language: (i) consolidated balance sheets, (ii) consolidated statements of comprehensive income, (iii) consolidated statements of cash flows, and (iv) notes to consolidated financial statements.

 

 

 


*Indicates management contract or compensatory plan.

 

 

 

91


 

Table of Contents

STORE Capital Corporation

Schedule III - Real Estate and Accumulated Depreciation

(Dollars in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Restaurants – Limited Service

 

Benson

 

MN

 

 

(f)

 

$

187

 

$

627

 

$

 -

 

$

184

 

$

187

 

$

811

 

$

998

 

$

(127)

 

1987

 

07/29/2011

 

Restaurants – Limited Service

 

Glencoe

 

MN

 

 

(f)

 

 

369

 

 

772

 

 

 -

 

 

194

 

 

369

 

 

966

 

 

1,335

 

 

(158)

 

1986

 

07/29/2011

 

Restaurants – Limited Service

 

Little Falls

 

MN

 

 

(f)

 

 

456

 

 

804

 

 

 -

 

 

165

 

 

456

 

 

969

 

 

1,425

 

 

(194)

 

1983

 

07/29/2011

 

Restaurants – Limited Service

 

Minneapolis

 

MN

 

 

(f)

 

 

243

 

 

590

 

 

34

 

 

168

 

 

277

 

 

758

 

 

1,035

 

 

(137)

 

1996

 

07/29/2011

 

Restaurants – Limited Service

 

Sauk Rapids

 

MN

 

 

(f)

 

 

224

 

 

887

 

 

 -

 

 

238

 

 

224

 

 

1,125

 

 

1,349

 

 

(153)

 

1996

 

07/29/2011

 

Restaurants – Limited Service

 

Staples

 

MN

 

 

(f)

 

 

213

 

 

729

 

 

 -

 

 

108

 

 

213

 

 

837

 

 

1,050

 

 

(140)

 

1987

 

07/29/2011

 

Restaurants – Limited Service

 

Wadena

 

MN

 

 

(f)

 

 

171

 

 

732

 

 

 -

 

 

 -

 

 

171

 

 

732

 

 

903

 

 

(127)

 

1980

 

07/29/2011

 

Restaurants – Limited Service

 

Valley City

 

ND

 

 

(f)

 

 

217

 

 

676

 

 

 -

 

 

231

 

 

217

 

 

907

 

 

1,124

 

 

(150)

 

1984

 

07/29/2011

 

Restaurants – Limited Service

 

Wahpeton

 

ND

 

 

(f)

 

 

314

 

 

589

 

 

 -

 

 

 -

 

 

314

 

 

589

 

 

903

 

 

(121)

 

1987

 

07/29/2011

 

Restaurants – Limited Service

 

Mobridge

 

SD

 

 

(f)

 

 

336

 

 

517

 

 

 -

 

 

 -

 

 

336

 

 

517

 

 

853

 

 

(152)

 

1993

 

07/29/2011

 

Furniture Stores

 

Austin

 

TX

 

 

(f)

 

 

2,212

 

 

3,600

 

 

 -

 

 

 -

 

 

2,212

 

 

3,600

 

 

5,812

 

 

(462)

 

2006

 

09/02/2011

 

Furniture Stores

 

Live Oak

 

TX

 

 

(f)

 

 

1,885

 

 

3,927

 

 

 -

 

 

 -

 

 

1,885

 

 

3,927

 

 

5,812

 

 

(487)

 

2005

 

09/02/2011

 

Furniture Stores

 

New Braunfels

 

TX

 

 

(f)

 

 

1,692

 

 

6,926

 

 

 -

 

 

 -

 

 

1,692

 

 

6,926

 

 

8,618

 

 

(1,139)

 

1995

 

09/02/2011

 

Furniture Stores

 

San Antonio

 

TX

 

 

(f)

 

 

2,361

 

 

3,952

 

 

 -

 

 

 -

 

 

2,361

 

 

3,952

 

 

6,313

 

 

(511)

 

2006

 

09/02/2011

 

Restaurants – Limited Service

 

Florence

 

AL

 

 

(f)

 

 

398

 

 

540

 

 

 -

 

 

 -

 

 

398

 

 

540

 

 

938

 

 

(96)

 

1994

 

09/08/2011

 

Restaurants – Limited Service

 

Vestavia

 

AL

 

 

(f)

 

 

310

 

 

354

 

 

 -

 

 

 -

 

 

310

 

 

354

 

 

664

 

 

(61)

 

1972

 

09/08/2011

 

Restaurants – Limited Service

 

Jacksonville

 

FL

 

 

(f)

 

 

310

 

 

325

 

 

 -

 

 

 -

 

 

310

 

 

325

 

 

635

 

 

(60)

 

1982

 

09/08/2011

 

Restaurants – Limited Service

 

Bainbridge

 

GA

 

 

(f)

 

 

147

 

 

381

 

 

 -

 

 

 -

 

 

147

 

 

381

 

 

528

 

 

(68)

 

1989

 

09/08/2011

 

Restaurants – Limited Service

 

Winder

 

GA

 

 

(f)

 

 

348

 

 

366

 

 

 -

 

 

 -

 

 

348

 

 

366

 

 

714

 

 

(81)

 

1986

 

09/08/2011

 

Restaurants – Limited Service

 

Evansville

 

IN

 

 

(f)

 

 

226

 

 

380

 

 

 -

 

 

 -

 

 

226

 

 

380

 

 

606

 

 

(79)

 

1988

 

09/08/2011

 

Restaurants – Limited Service

 

Louisville

 

KY

 

 

(f)

 

 

310

 

 

383

 

 

 -

 

 

 -

 

 

310

 

 

383

 

 

693

 

 

(79)

 

1973

 

09/08/2011

 

Restaurants – Limited Service

 

Florissant

 

MO

 

 

(f)

 

 

460

 

 

400

 

 

 -

 

 

 -

 

 

460

 

 

400

 

 

860

 

 

(78)

 

1981

 

09/08/2011

 

Restaurants – Limited Service

 

Jackson

 

MS

 

 

(f)

 

 

253

 

 

460

 

 

 -

 

 

 -

 

 

253

 

 

460

 

 

713

 

 

(83)

 

1993

 

09/08/2011

 

Restaurants – Limited Service

 

Jackson

 

MS

 

 

(f)

 

 

225

 

 

342

 

 

 -

 

 

 -

 

 

225

 

 

342

 

 

567

 

 

(59)

 

1983

 

09/08/2011

 

Restaurants – Limited Service

 

Cincinnati

 

OH

 

 

(f)

 

 

149

 

 

467

 

 

 -

 

 

 -

 

 

149

 

 

467

 

 

616

 

 

(84)

 

1987

 

09/08/2011

 

Restaurants – Limited Service

 

Owasso

 

OK

 

 

(f)

 

 

275

 

 

301

 

 

 -

 

 

 -

 

 

275

 

 

301

 

 

576

 

 

(54)

 

1986

 

09/08/2011

 

Restaurants – Limited Service

 

Tulsa

 

OK

 

 

(f)

 

 

209

 

 

328

 

 

 -

 

 

 -

 

 

209

 

 

328

 

 

537

 

 

(74)

 

1977

 

09/08/2011

 

Restaurants – Limited Service

 

Antioch

 

TN

 

 

(f)

 

 

391

 

 

264

 

 

 -

 

 

 -

 

 

391

 

 

264

 

 

655

 

 

(55)

 

1978

 

09/08/2011

 

Restaurants – Limited Service

 

Clarksville

 

TN

 

 

(f)

 

 

239

 

 

425

 

 

 -

 

 

 -

 

 

239

 

 

425

 

 

664

 

 

(78)

 

1993

 

09/08/2011

 

Restaurants – Limited Service

 

Knoxville

 

TN

 

 

(f)

 

 

371

 

 

323

 

 

 -

 

 

 -

 

 

371

 

 

323

 

 

694

 

 

(63)

 

1987

 

09/08/2011

 

Restaurants – Limited Service

 

Princeton

 

WV

 

 

(f)

 

 

246

 

 

408

 

 

 -

 

 

 -

 

 

246

 

 

408

 

 

654

 

 

(70)

 

1977

 

09/08/2011

 

Veneer, Plywood, and Engineered Wood Product Manufacturing

 

Delaware

 

OH

 

 

(f)

 

 

308

 

 

479

 

 

 -

 

 

 -

 

 

308

 

 

479

 

 

787

 

 

(83)

 

1969

 

09/27/2011

 

Veneer, Plywood, and Engineered Wood Product Manufacturing

 

Hillsboro

 

OR

 

 

(f)

 

 

879

 

 

167

 

 

 -

 

 

 -

 

 

879

 

 

167

 

 

1,046

 

 

(43)

 

1965

 

09/27/2011

 

Veneer, Plywood, and Engineered Wood Product Manufacturing

 

Stayton

 

OR

 

 

(f)

 

 

2,255

 

 

2,526

 

 

 -

 

 

 -

 

 

2,255

 

 

2,526

 

 

4,781

 

 

(418)

 

1985

 

09/27/2011

 

Family Entertainment Centers

 

Webster

 

TX

 

 

(f)

 

 

2,135

 

 

6,355

 

 

 -

 

 

 -

 

 

2,135

 

 

6,355

 

 

8,490

 

 

(837)

 

2007

 

09/30/2011

 

Child Day Care Services

 

Laveen

 

AZ

 

 

(f)

 

 

1,427

 

 

3,012

 

 

35

 

 

210

 

 

1,462

 

 

3,222

 

 

4,684

 

 

(406)

 

2008

 

10/07/2011

 

Child Day Care Services

 

Maricopa

 

AZ

 

 

(f)

 

 

2,212

 

 

4,080

 

 

 -

 

 

 -

 

 

2,212

 

 

4,080

 

 

6,292

 

 

(520)

 

2008

 

10/07/2011

 

Beer, Wine, and Liquor Stores

 

McAllen

 

TX

 

 

(f)

 

 

1,490

 

 

2,220

 

 

 -

 

 

 -

 

 

1,490

 

 

2,220

 

 

3,710

 

 

(453)

 

1955

 

10/07/2011

 

Beer, Wine, and Liquor Stores

 

Pharr

 

TX

 

 

(f)

 

 

699

 

 

1,362

 

 

 -

 

 

 -

 

 

699

 

 

1,362

 

 

2,061

 

 

(258)

 

1989

 

10/07/2011

 

Restaurants – Full Service

 

Canton

 

GA

 

 

(f)

 

 

1,101

 

 

973

 

 

 -

 

 

 -

 

 

1,101

 

 

973

 

 

2,074

 

 

(181)

 

1998

 

10/17/2011

 

Restaurants – Full Service

 

Fayetteville

 

GA

 

 

(f)

 

 

1,155

 

 

1,210

 

 

 -

 

 

 -

 

 

1,155

 

 

1,210

 

 

2,365

 

 

(227)

 

2004

 

10/17/2011

 

Restaurants – Full Service

 

Ft. Oglethorpe

 

GA

 

 

(f)

 

 

957

 

 

986

 

 

 -

 

 

 -

 

 

957

 

 

986

 

 

1,943

 

 

(168)

 

2003

 

10/17/2011

 

Restaurants – Full Service

 

Stockbridge

 

GA

 

 

(f)

 

 

1,135

 

 

1,276

 

 

 -

 

 

 -

 

 

1,135

 

 

1,276

 

 

2,411

 

 

(231)

 

2000

 

10/17/2011

 

Restaurants – Full Service

 

Camby

 

IN

 

 

(f)

 

 

636

 

 

1,297

 

 

 -

 

 

 -

 

 

636

 

 

1,297

 

 

1,933

 

 

(230)

 

2008

 

10/17/2011

 

Restaurants – Full Service

 

Greenwood

 

IN

 

 

(f)

 

 

518

 

 

1,196

 

 

 -

 

 

 -

 

 

518

 

 

1,196

 

 

1,714

 

 

(200)

 

2005

 

10/17/2011

 

Restaurants – Full Service

 

Georgetown

 

KY

 

 

(f)

 

 

727

 

 

1,076

 

 

 -

 

 

 -

 

 

727

 

 

1,076

 

 

1,803

 

 

(189)

 

2002

 

10/17/2011

 

Restaurants – Full Service

 

Owensboro

 

KY

 

 

(f)

 

 

586

 

 

1,427

 

 

 -

 

 

 -

 

 

586

 

 

1,427

 

 

2,013

 

 

(276)

 

1996

 

10/17/2011

 

Restaurants – Full Service

 

Charlotte

 

NC

 

 

(f)

 

 

737

 

 

1,087

 

 

 -

 

 

 -

 

 

737

 

 

1,087

 

 

1,824

 

 

(233)

 

2000

 

10/17/2011

 

 

F-1


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Restaurants – Full Service

 

Greensboro

 

NC

 

 

(f)

 

 

626

 

 

1,039

 

 

 -

 

 

 -

 

 

626

 

 

1,039

 

 

1,665

 

 

(210)

 

2004

 

10/17/2011

 

Restaurants – Full Service

 

Dayton

 

OH

 

 

(f)

 

 

1,369

 

 

1,357

 

 

 -

 

 

 -

 

 

1,369

 

 

1,357

 

 

2,726

 

 

(254)

 

1998

 

10/17/2011

 

Restaurants – Full Service

 

Springdale

 

OH

 

 

(f)

 

 

1,286

 

 

897

 

 

 -

 

 

 -

 

 

1,286

 

 

897

 

 

2,183

 

 

(147)

 

1996

 

10/17/2011

 

Restaurants – Full Service

 

Cookeville

 

TN

 

 

(f)

 

 

1,528

 

 

1,511

 

 

691

 

 

 -

 

 

2,219

 

 

1,511

 

 

3,730

 

 

(289)

 

1994

 

10/17/2011

 

Restaurants – Full Service

 

Knoxville

 

TN

 

 

(f)

 

 

1,161

 

 

1,221

 

 

 -

 

 

 -

 

 

1,161

 

 

1,221

 

 

2,382

 

 

(247)

 

2003

 

10/17/2011

 

Restaurants – Full Service

 

Harrisonburg

 

VA

 

 

(f)

 

 

468

 

 

1,067

 

 

 -

 

 

 -

 

 

468

 

 

1,067

 

 

1,535

 

 

(198)

 

2003

 

10/17/2011

 

Restaurants – Full Service

 

Panama City

 

FL

 

 

 

 

 

230

 

 

1,451

 

 

 -

 

 

 -

 

 

230

 

 

1,451

 

 

1,681

 

 

(225)

 

2001

 

10/17/2011

 

Restaurants – Full Service

 

Augusta

 

GA

 

 

 

 

 

853

 

 

1,148

 

 

 -

 

 

 -

 

 

853

 

 

1,148

 

 

2,001

 

 

(198)

 

1997

 

10/17/2011

 

Restaurants – Full Service

 

Cumming

 

GA

 

 

 

 

 

1,375

 

 

946

 

 

 -

 

 

 -

 

 

1,375

 

 

946

 

 

2,321

 

 

(184)

 

1998

 

10/17/2011

 

Restaurants – Full Service

 

Lawrenceville

 

GA

 

 

 

 

 

985

 

 

879

 

 

 -

 

 

 -

 

 

985

 

 

879

 

 

1,864

 

 

(161)

 

1996

 

10/17/2011

 

Restaurants – Full Service

 

Snellville

 

GA

 

 

 

 

 

1,954

 

 

927

 

 

 -

 

 

 -

 

 

1,954

 

 

927

 

 

2,881

 

 

(177)

 

1998

 

10/17/2011

 

Restaurants – Full Service

 

Frankfort

 

KY

 

 

 

 

 

955

 

 

916

 

 

 -

 

 

 -

 

 

955

 

 

916

 

 

1,871

 

 

(175)

 

1998

 

10/17/2011

 

Restaurants – Full Service

 

Lexington

 

KY

 

$

18,851

 

 

533

 

 

1,148

 

 

 -

 

 

 -

 

 

533

 

 

1,148

 

 

1,681

 

 

(192)

 

1988

 

10/17/2011

 

Restaurants – Full Service

 

Louisville

 

KY

 

 

 

 

 

1,217

 

 

1,028

 

 

 -

 

 

 -

 

 

1,217

 

 

1,028

 

 

2,245

 

 

(182)

 

1993

 

10/17/2011

 

Restaurants – Full Service

 

Mansfield

 

OH

 

 

 

 

 

725

 

 

1,156

 

 

 -

 

 

 -

 

 

725

 

 

1,156

 

 

1,881

 

 

(227)

 

2003

 

10/17/2011

 

Restaurants – Full Service

 

Charleston

 

SC

 

 

 

 

 

889

 

 

1,245

 

 

 -

 

 

 -

 

 

889

 

 

1,245

 

 

2,134

 

 

(248)

 

2001

 

10/17/2011

 

Restaurants – Full Service

 

Cleveland

 

TN

 

 

 

 

 

1,169

 

 

1,346

 

 

 -

 

 

 -

 

 

1,169

 

 

1,346

 

 

2,515

 

 

(273)

 

1996

 

10/17/2011

 

Restaurants – Full Service

 

Goodlettsville

 

TN

 

 

 

 

 

933

 

 

1,191

 

 

 -

 

 

 -

 

 

933

 

 

1,191

 

 

2,124

 

 

(210)

 

1988

 

10/17/2011

 

Restaurants – Full Service

 

Lebanon

 

TN

 

 

 

 

 

1,037

 

 

1,134

 

 

 -

 

 

 -

 

 

1,037

 

 

1,134

 

 

2,171

 

 

(217)

 

1997

 

10/17/2011

 

Restaurants – Full Service

 

Morristown

 

TN

 

 

 

 

 

803

 

 

1,578

 

 

 -

 

 

 -

 

 

803

 

 

1,578

 

 

2,381

 

 

(313)

 

2000

 

10/17/2011

 

Restaurants – Full Service

 

Lynchburg

 

VA

 

 

 

 

 

903

 

 

1,078

 

 

 -

 

 

 -

 

 

903

 

 

1,078

 

 

1,981

 

 

(257)

 

2001

 

10/17/2011

 

Restaurants – Limited Service

 

Bradenton

 

FL

 

 

(f)

 

 

785

 

 

276

 

 

 -

 

 

 -

 

 

785

 

 

276

 

 

1,061

 

 

(136)

 

1984

 

10/19/2011

 

Restaurants – Limited Service

 

Sarasota

 

FL

 

 

(f)

 

 

848

 

 

410

 

 

 -

 

 

 -

 

 

848

 

 

410

 

 

1,258

 

 

(180)

 

1981

 

10/19/2011

 

Automotive Repair and Maintenance

 

Prescott Valley

 

AZ

 

 

(f)

 

 

241

 

 

259

 

 

 -

 

 

 -

 

 

241

 

 

259

 

 

500

 

 

(43)

 

2003

 

11/01/2011

 

Automotive Repair and Maintenance

 

Snowflake

 

AZ

 

 

(f)

 

 

276

 

 

134

 

 

 -

 

 

 -

 

 

276

 

 

134

 

 

410

 

 

(25)

 

1998

 

11/01/2011

 

Restaurants – Full Service

 

Davenport

 

IA

 

 

(f)

 

 

1,613

 

 

2,210

 

 

 -

 

 

 -

 

 

1,613

 

 

2,210

 

 

3,823

 

 

(424)

 

2003

 

11/07/2011

 

Restaurants – Full Service

 

Eagan

 

MN

 

 

(f)

 

 

1,481

 

 

2,958

 

 

 -

 

 

 -

 

 

1,481

 

 

2,958

 

 

4,439

 

 

(388)

 

1998

 

11/07/2011

 

Health Clubs

 

Edinburg

 

TX

 

 

(f)

 

 

865

 

 

4,109

 

 

 -

 

 

116

 

 

865

 

 

4,225

 

 

5,090

 

 

(653)

 

1994

 

11/18/2011

 

Health Clubs

 

McAllen

 

TX

 

 

(f)

 

 

1,423

 

 

1,540

 

 

391

 

 

779

 

 

1,814

 

 

2,319

 

 

4,133

 

 

(239)

 

2004

 

11/18/2011

 

Health Clubs

 

Mission

 

TX

 

 

(f)

 

 

692

 

 

2,408

 

 

 -

 

 

49

 

 

692

 

 

2,457

 

 

3,149

 

 

(326)

 

2000

 

11/18/2011

 

Motion Picture and Video Industries

 

Owasso

 

OK

 

 

(f)

 

 

986

 

 

3,926

 

 

 -

 

 

 -

 

 

986

 

 

3,926

 

 

4,912

 

 

(677)

 

1992

 

12/16/2011

 

Other Personal Services

 

Erlanger

 

KY

 

 

(f)

 

 

604

 

 

1,809

 

 

 -

 

 

 -

 

 

604

 

 

1,809

 

 

2,413

 

 

(300)

 

2000

 

12/22/2011

 

Other Personal Services

 

Louisville

 

KY

 

 

(f)

 

 

492

 

 

2,022

 

 

 -

 

 

 -

 

 

492

 

 

2,022

 

 

2,514

 

 

(312)

 

2003

 

12/22/2011

 

Iron and Steel Mills and Ferroalloy Manufacturing

 

Troy

 

MI

 

 

(f)

 

 

510

 

 

2,388

 

 

 -

 

 

 -

 

 

510

 

 

2,388

 

 

2,898

 

 

(532)

 

1962

 

12/22/2011

 

Other Personal Services

 

Cincinnati

 

OH

 

 

(f)

 

 

547

 

 

1,967

 

 

 -

 

 

 -

 

 

547

 

 

1,967

 

 

2,514

 

 

(319)

 

2005

 

12/22/2011

 

Restaurants – Full Service

 

Snyder

 

TX

 

 

(f)

 

 

177

 

 

740

 

 

 -

 

 

 -

 

 

177

 

 

740

 

 

917

 

 

(127)

 

1974

 

12/22/2011

 

Basic Chemical Manufacturing

 

Elk Grove Village

 

IL

 

 

(f)

 

 

854

 

 

1,460

 

 

 -

 

 

 -

 

 

854

 

 

1,460

 

 

2,314

 

 

(234)

 

1964

 

12/29/2011

 

Basic Chemical Manufacturing

 

Wheeling

 

IL

 

 

(f)

 

 

1,463

 

 

3,064

 

 

 -

 

 

 -

 

 

1,463

 

 

3,064

 

 

4,527

 

 

(503)

 

1966

 

12/29/2011

 

Restaurants – Limited Service

 

Leadington

 

MO

 

 

(f)

 

 

494

 

 

499

 

 

 -

 

 

 -

 

 

494

 

 

499

 

 

993

 

 

(100)

 

1978

 

12/30/2011

 

Restaurants – Limited Service

 

St. Louis

 

MO

 

 

(f)

 

 

395

 

 

393

 

 

 -

 

 

 -

 

 

395

 

 

393

 

 

788

 

 

(64)

 

1977

 

12/30/2011

 

Child Day Care Services

 

Blue Ash

 

OH

 

 

(f)

 

 

739

 

 

2,464

 

 

 -

 

 

 -

 

 

739

 

 

2,464

 

 

3,203

 

 

(302)

 

1979

 

12/30/2011

 

Restaurants – Limited Service

 

Marietta

 

OH

 

 

(f)

 

 

435

 

 

677

 

 

 -

 

 

 -

 

 

435

 

 

677

 

 

1,112

 

 

(131)

 

1986

 

12/30/2011

 

Restaurants – Limited Service

 

Salem

 

OH

 

 

(f)

 

 

205

 

 

676

 

 

 -

 

 

 -

 

 

205

 

 

676

 

 

881

 

 

(115)

 

1969

 

12/30/2011

 

Restaurants – Limited Service

 

Warren

 

OH

 

 

(f)

 

 

328

 

 

612

 

 

 -

 

 

 -

 

 

328

 

 

612

 

 

940

 

 

(116)

 

1988

 

12/30/2011

 

Restaurants – Limited Service

 

McKees Rocks

 

PA

 

 

(f)

 

 

556

 

 

692

 

 

 -

 

 

 -

 

 

556

 

 

692

 

 

1,248

 

 

(123)

 

1984

 

12/30/2011

 

Restaurants – Limited Service

 

Pittsburgh

 

PA

 

 

(f)

 

 

364

 

 

440

 

 

 -

 

 

 -

 

 

364

 

 

440

 

 

804

 

 

(76)

 

1989

 

12/30/2011

 

Restaurants – Limited Service

 

Clinton

 

TN

 

 

(f)

 

 

454

 

 

653

 

 

 -

 

 

 -

 

 

454

 

 

653

 

 

1,107

 

 

(128)

 

1984

 

12/30/2011

 

Child Day Care Services

 

Franklin

 

TN

 

 

(f)

 

 

1,782

 

 

2,422

 

 

 -

 

 

 -

 

 

1,782

 

 

2,422

 

 

4,204

 

 

(423)

 

2010

 

12/30/2011

 

Restaurants – Limited Service

 

Greeneville

 

TN

 

 

(f)

 

 

566

 

 

491

 

 

 -

 

 

 -

 

 

566

 

 

491

 

 

1,057

 

 

(109)

 

1985

 

12/30/2011

 

Restaurants – Limited Service

 

Knoxville

 

TN

 

 

(f)

 

 

405

 

 

702

 

 

 -

 

 

 -

 

 

405

 

 

702

 

 

1,107

 

 

(143)

 

1986

 

12/30/2011

 

F-2


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Restaurants – Limited Service

 

Knoxville

 

TN

 

 

(f)

 

 

775

 

 

734

 

 

 -

 

 

 -

 

 

775

 

 

734

 

 

1,509

 

 

(137)

 

1979

 

12/30/2011

 

Restaurants – Limited Service

 

Maryville

 

TN

 

 

(f)

 

 

542

 

 

414

 

 

45

 

 

309

 

 

587

 

 

723

 

 

1,310

 

 

(117)

 

1983

 

12/30/2011

 

Restaurants – Limited Service

 

Newport

 

TN

 

 

(f)

 

 

484

 

 

623

 

 

 -

 

 

 -

 

 

484

 

 

623

 

 

1,107

 

 

(137)

 

1987

 

12/30/2011

 

Restaurants – Limited Service

 

Wichita Falls

 

TX

 

 

(f)

 

 

198

 

 

491

 

 

 -

 

 

 -

 

 

198

 

 

491

 

 

689

 

 

(91)

 

1984

 

12/30/2011

 

Restaurants – Limited Service

 

Wichita Falls

 

TX

 

 

(f)

 

 

253

 

 

535

 

 

 -

 

 

 -

 

 

253

 

 

535

 

 

788

 

 

(101)

 

1986

 

12/30/2011

 

Restaurants – Limited Service

 

New Martinsville

 

WV

 

 

(f)

 

 

269

 

 

475

 

 

 -

 

 

 -

 

 

269

 

 

475

 

 

744

 

 

(87)

 

1978

 

12/30/2011

 

Restaurants – Limited Service

 

Parkersburg

 

WV

 

 

(f)

 

 

245

 

 

461

 

 

 -

 

 

 -

 

 

245

 

 

461

 

 

706

 

 

(81)

 

1987

 

12/30/2011

 

Restaurants – Limited Service

 

Parkersburg

 

WV

 

 

(f)

 

 

769

 

 

301

 

 

 -

 

 

 -

 

 

769

 

 

301

 

 

1,070

 

 

(67)

 

1986

 

12/30/2011

 

Restaurants – Limited Service

 

Wheeling

 

WV

 

 

(f)

 

 

357

 

 

714

 

 

 -

 

 

 -

 

 

357

 

 

714

 

 

1,071

 

 

(137)

 

1986

 

12/30/2011

 

Family Entertainment Centers

 

Frisco

 

TX

 

 

(f)

 

 

3,705

 

 

5,109

 

 

 -

 

 

 -

 

 

3,705

 

 

5,109

 

 

8,814

 

 

(683)

 

2008

 

01/27/2012

 

Family Entertainment Centers

 

Lubbock

 

TX

 

 

(f)

 

 

2,056

 

 

6,658

 

 

 -

 

 

 -

 

 

2,056

 

 

6,658

 

 

8,714

 

 

(875)

 

2007

 

01/27/2012

 

Elementary and Secondary Schools

 

Milpitas

 

CA

 

 

12,038

 

 

5,749

 

 

8,840

 

 

 -

 

 

399

 

 

5,749

 

 

9,239

 

 

14,988

 

 

(1,065)

 

1987

 

02/29/2012

 

Elementary and Secondary Schools

 

Stockton

 

CA

 

 

 

 

 

1,789

 

 

3,557

 

 

 -

 

 

24

 

 

1,789

 

 

3,581

 

 

5,370

 

 

(582)

 

1990

 

02/29/2012

 

Motion Picture and Video Industries

 

Bethlehem

 

GA

 

 

(f)

 

 

1,888

 

 

5,168

 

 

 -

 

 

 -

 

 

1,888

 

 

5,168

 

 

7,056

 

 

(585)

 

2011

 

03/15/2012

 

Restaurants – Limited Service

 

Cherryville

 

NC

 

 

(f)

 

 

461

 

 

650

 

 

 -

 

 

 -

 

 

461

 

 

650

 

 

1,111

 

 

(95)

 

2005

 

03/28/2012

 

Restaurants – Limited Service

 

Hudson

 

NC

 

 

(f)

 

 

215

 

 

996

 

 

 -

 

 

 -

 

 

215

 

 

996

 

 

1,211

 

 

(112)

 

1984

 

03/28/2012

 

Restaurants – Limited Service

 

Maiden

 

NC

 

 

(f)

 

 

557

 

 

533

 

 

 -

 

 

 -

 

 

557

 

 

533

 

 

1,090

 

 

(80)

 

1987

 

03/28/2012

 

Restaurants – Limited Service

 

Marion

 

NC

 

 

(f)

 

 

322

 

 

637

 

 

 -

 

 

 -

 

 

322

 

 

637

 

 

959

 

 

(92)

 

1999

 

03/28/2012

 

Restaurants – Limited Service

 

Richfield

 

NC

 

 

(f)

 

 

361

 

 

720

 

 

 -

 

 

 -

 

 

361

 

 

720

 

 

1,081

 

 

(104)

 

2007

 

03/28/2012

 

Restaurants – Limited Service

 

West Jefferson

 

NC

 

 

(f)

 

 

357

 

 

854

 

 

 -

 

 

 -

 

 

357

 

 

854

 

 

1,211

 

 

(120)

 

1996

 

03/28/2012

 

Restaurants – Full Service

 

Naperville

 

IL

 

 

(f)

 

 

1,869

 

 

3,154

 

 

 -

 

 

 -

 

 

1,869

 

 

3,154

 

 

5,023

 

 

(336)

 

2011

 

03/30/2012

 

Restaurants – Full Service

 

Wheeling

 

IL

 

 

(f)

 

 

824

 

 

2,441

 

 

 -

 

 

 -

 

 

824

 

 

2,441

 

 

3,265

 

 

(229)

 

2008

 

03/30/2012

 

Child Day Care Services

 

Arlington

 

TX

 

 

(f)

 

 

183

 

 

574

 

 

 -

 

 

 -

 

 

183

 

 

574

 

 

757

 

 

(120)

 

1984

 

03/30/2012

 

Child Day Care Services

 

Cedar Hill

 

TX

 

 

(f)

 

 

285

 

 

569

 

 

 -

 

 

 -

 

 

285

 

 

569

 

 

854

 

 

(119)

 

1984

 

03/30/2012

 

Child Day Care Services

 

Grand Prairie

 

TX

 

 

(f)

 

 

292

 

 

581

 

 

 -

 

 

 -

 

 

292

 

 

581

 

 

873

 

 

(125)

 

1985

 

03/30/2012

 

Child Day Care Services

 

Haltom City

 

TX

 

 

(f)

 

 

362

 

 

415

 

 

 -

 

 

 -

 

 

362

 

 

415

 

 

777

 

 

(88)

 

1985

 

03/30/2012

 

Child Day Care Services

 

Watauga

 

TX

 

 

(f)

 

 

174

 

 

622

 

 

 -

 

 

 -

 

 

174

 

 

622

 

 

796

 

 

(132)

 

1986

 

03/30/2012

 

Furniture Stores

 

Tacoma

 

WA

 

 

(f)

 

 

2,213

 

 

3,319

 

 

 -

 

 

817

 

 

2,213

 

 

4,136

 

 

6,349

 

 

(434)

 

1994

 

04/20/2012

 

Other Personal Services

 

Dayton

 

OH

 

 

(f)

 

 

574

 

 

1,937

 

 

 -

 

 

 -

 

 

574

 

 

1,937

 

 

2,511

 

 

(276)

 

2008

 

04/30/2012

 

Child Day Care Services

 

Tucson

 

AZ

 

 

(f)

 

 

2,674

 

 

4,120

 

 

 -

 

 

 -

 

 

2,674

 

 

4,120

 

 

6,794

 

 

(691)

 

2008

 

05/08/2012

 

Furniture Stores

 

Tucson

 

AZ

 

 

(f)

 

 

1,371

 

 

4,170

 

 

 -

 

 

 -

 

 

1,371

 

 

4,170

 

 

5,541

 

 

(539)

 

2003

 

05/10/2012

 

Restaurants – Full Service

 

Troy

 

MI

 

 

(f)

 

 

1,503

 

 

2,506

 

 

 -

 

 

 -

 

 

1,503

 

 

2,506

 

 

4,009

 

 

(230)

 

2012

 

05/15/2012

 

Restaurants – Limited Service

 

Graham

 

TX

 

 

(f)

 

 

212

 

 

581

 

 

 -

 

 

 -

 

 

212

 

 

581

 

 

793

 

 

(116)

 

1998

 

05/15/2012

 

Motion Picture and Video Industries

 

Ardmore

 

OK

 

 

(f)

 

 

1,302

 

 

3,095

 

 

 -

 

 

 -

 

 

1,302

 

 

3,095

 

 

4,397

 

 

(385)

 

2008

 

05/17/2012

 

Restaurants – Limited Service

 

Carrollton

 

GA

 

 

(f)

 

 

467

 

 

627

 

 

 -

 

 

26

 

 

467

 

 

653

 

 

1,120

 

 

(89)

 

1980

 

05/18/2012

 

Restaurants – Limited Service

 

Cedartown

 

GA

 

 

(f)

 

 

319

 

 

502

 

 

 -

 

 

140

 

 

319

 

 

642

 

 

961

 

 

(73)

 

1981

 

05/18/2012

 

Restaurants – Limited Service

 

College Park

 

GA

 

 

(f)

 

 

918

 

 

227

 

 

 -

 

 

128

 

 

918

 

 

355

 

 

1,273

 

 

(33)

 

1973

 

05/18/2012

 

Restaurants – Limited Service

 

Dalton

 

GA

 

 

(f)

 

 

337

 

 

483

 

 

 -

 

 

113

 

 

337

 

 

596

 

 

933

 

 

(70)

 

1980

 

05/18/2012

 

Restaurants – Limited Service

 

Decatur

 

GA

 

 

(f)

 

 

378

 

 

484

 

 

 -

 

 

115

 

 

378

 

 

599

 

 

977

 

 

(102)

 

1981

 

05/18/2012

 

Restaurants – Limited Service

 

Lithonia

 

GA

 

 

(f)

 

 

469

 

 

706

 

 

 -

 

 

158

 

 

469

 

 

864

 

 

1,333

 

 

(142)

 

1979

 

05/18/2012

 

Restaurants – Limited Service

 

Macon

 

GA

 

 

(f)

 

 

379

 

 

716

 

 

 -

 

 

133

 

 

379

 

 

849

 

 

1,228

 

 

(143)

 

1975

 

05/18/2012

 

Restaurants – Limited Service

 

McDonough

 

GA

 

 

(f)

 

 

304

 

 

719

 

 

 -

 

 

140

 

 

304

 

 

859

 

 

1,163

 

 

(103)

 

2001

 

05/18/2012

 

Restaurants – Limited Service

 

Riverdale

 

GA

 

 

(f)

 

 

241

 

 

874

 

 

 -

 

 

400

 

 

241

 

 

1,274

 

 

1,515

 

 

(175)

 

1976

 

05/18/2012

 

Restaurants – Limited Service

 

Savannah

 

GA

 

 

(f)

 

 

422

 

 

946

 

 

 -

 

 

400

 

 

422

 

 

1,346

 

 

1,768

 

 

(134)

 

1973

 

05/18/2012

 

Restaurants – Limited Service

 

Ooltewah

 

TN

 

 

(f)

 

 

458

 

 

687

 

 

 -

 

 

 -

 

 

458

 

 

687

 

 

1,145

 

 

(97)

 

1999

 

05/18/2012

 

Health Clubs

 

Kansas City

 

MO

 

 

(f)

 

 

1,259

 

 

895

 

 

28

 

 

1,510

 

 

1,287

 

 

2,405

 

 

3,692

 

 

(272)

 

2007

 

05/24/2012

 

Restaurants – Full Service

 

Franklin

 

NC

 

 

(f)

 

 

573

 

 

1,087

 

 

 -

 

 

 -

 

 

573

 

 

1,087

 

 

1,660

 

 

(171)

 

2008

 

05/24/2012

 

Restaurants – Full Service

 

Morganton

 

NC

 

 

(f)

 

 

1,125

 

 

708

 

 

 -

 

 

 -

 

 

1,125

 

 

708

 

 

1,833

 

 

(105)

 

2002

 

05/24/2012

 

Restaurants – Full Service

 

Rockingham

 

NC

 

 

(f)

 

 

1,111

 

 

870

 

 

 -

 

 

 -

 

 

1,111

 

 

870

 

 

1,981

 

 

(130)

 

2005

 

05/24/2012

 

Restaurants – Full Service

 

Aiken

 

SC

 

 

(f)

 

 

1,009

 

 

974

 

 

 -

 

 

 -

 

 

1,009

 

 

974

 

 

1,983

 

 

(152)

 

2006

 

05/24/2012

 

F-3


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Restaurants – Full Service

 

Rock Hill

 

SC

 

 

(f)

 

 

1,121

 

 

778

 

 

 -

 

 

 -

 

 

1,121

 

 

778

 

 

1,899

 

 

(115)

 

2004

 

05/24/2012

 

Health Clubs

 

Richland

 

WA

 

 

(f)

 

 

1,758

 

 

7,296

 

 

 -

 

 

 -

 

 

1,758

 

 

7,296

 

 

9,054

 

 

(809)

 

2012

 

06/12/2012

 

Child Day Care Services

 

Pearland

 

TX

 

 

(f)

 

 

1,345

 

 

6,258

 

 

608

 

 

2,542

 

 

1,953

 

 

8,800

 

 

10,753

 

 

(795)

 

2011

 

06/20/2012

 

Restaurants – Full Service

 

Aiken

 

SC

 

 

(f)

 

 

547

 

 

1,587

 

 

 -

 

 

 -

 

 

547

 

 

1,587

 

 

2,134

 

 

(188)

 

2009

 

06/21/2012

 

Health Clubs

 

Fairfield

 

CA

 

 

(f)

 

 

1,564

 

 

1,949

 

 

542

 

 

1,758

 

 

2,106

 

 

3,707

 

 

5,813

 

 

(379)

 

1978

 

06/27/2012

 

Restaurants – Limited Service

 

Altamonte Springs

 

FL

 

 

(f)

 

 

438

 

 

 -

 

 

 -

 

 

 -

 

 

438

 

 

 -

 

 

438

 

 

 -

 

1978

 

06/27/2012

 

Restaurants – Limited Service

 

Apopka

 

FL

 

 

(f)

 

 

550

 

 

 -

 

 

 -

 

 

 -

 

 

550

 

 

 -

 

 

550

 

 

 -

 

1988

 

06/27/2012

 

Restaurants – Limited Service

 

Fort Pierce

 

FL

 

 

(f)

 

 

153

 

 

 -

 

 

 -

 

 

 -

 

 

153

 

 

 -

 

 

153

 

 

 -

 

1979

 

06/27/2012

 

Restaurants – Limited Service

 

Jacksonville

 

FL

 

 

(f)

 

 

550

 

 

 -

 

 

 -

 

 

 -

 

 

550

 

 

 -

 

 

550

 

 

 -

 

1986

 

06/27/2012

 

Restaurants – Limited Service

 

Jacksonville

 

FL

 

 

(f)

 

 

234

 

 

 -

 

 

 -

 

 

 -

 

 

234

 

 

 -

 

 

234

 

 

 -

 

1985

 

06/27/2012

 

Restaurants – Limited Service

 

Jacksonville

 

FL

 

 

(f)

 

 

326

 

 

 -

 

 

 -

 

 

 -

 

 

326

 

 

 -

 

 

326

 

 

 -

 

1981

 

06/27/2012

 

Restaurants – Limited Service

 

Jacksonville

 

FL

 

 

(f)

 

 

275

 

 

 -

 

 

 -

 

 

 -

 

 

275

 

 

 -

 

 

275

 

 

 -

 

1980

 

06/27/2012

 

Restaurants – Limited Service

 

Jacksonville

 

FL

 

 

(f)

 

 

285

 

 

 -

 

 

 -

 

 

 -

 

 

285

 

 

 -

 

 

285

 

 

 -

 

1982

 

06/27/2012

 

Restaurants – Limited Service

 

Kissimmee

 

FL

 

 

(f)

 

 

601

 

 

 -

 

 

 -

 

 

 -

 

 

601

 

 

 -

 

 

601

 

 

 -

 

1981

 

06/27/2012

 

Restaurants – Limited Service

 

Lake City

 

FL

 

 

(f)

 

 

224

 

 

 -

 

 

 -

 

 

 -

 

 

224

 

 

 -

 

 

224

 

 

 -

 

1978

 

06/27/2012

 

Restaurants – Limited Service

 

Merritt Island

 

FL

 

 

(f)

 

 

316

 

 

 -

 

 

 -

 

 

 -

 

 

316

 

 

 -

 

 

316

 

 

 -

 

1983

 

06/27/2012

 

Restaurants – Limited Service

 

Orange Park

 

FL

 

 

(f)

 

 

326

 

 

 -

 

 

 -

 

 

 -

 

 

326

 

 

 -

 

 

326

 

 

 -

 

1985

 

06/27/2012

 

Restaurants – Limited Service

 

Orlando

 

FL

 

 

(f)

 

 

285

 

 

 -

 

 

 -

 

 

 -

 

 

285

 

 

 -

 

 

285

 

 

 -

 

1981

 

06/27/2012

 

Restaurants – Limited Service

 

Palatka

 

FL

 

 

(f)

 

 

1,110

 

 

 -

 

 

 -

 

 

 -

 

 

1,110

 

 

 -

 

 

1,110

 

 

 -

 

1997

 

06/27/2012

 

Restaurants – Limited Service

 

Plant City

 

FL

 

 

(f)

 

 

621

 

 

 -

 

 

 -

 

 

 -

 

 

621

 

 

 -

 

 

621

 

 

 -

 

1988

 

06/27/2012

 

Restaurants – Limited Service

 

Sanford

 

FL

 

 

(f)

 

 

407

 

 

 -

 

 

 -

 

 

 -

 

 

407

 

 

 -

 

 

407

 

 

 -

 

1986

 

06/27/2012

 

Restaurants – Limited Service

 

Tallahassee

 

FL

 

 

(f)

 

 

306

 

 

 -

 

 

 -

 

 

 -

 

 

306

 

 

 -

 

 

306

 

 

 -

 

1978

 

06/27/2012

 

Restaurants – Limited Service

 

Fairview Heights

 

IL

 

 

(f)

 

 

326

 

 

 -

 

 

 -

 

 

 -

 

 

326

 

 

 -

 

 

326

 

 

 -

 

1986

 

06/27/2012

 

Child Day Care Services

 

South Elgin

 

IL

 

 

(f)

 

 

574

 

 

2,508

 

 

 -

 

 

 -

 

 

574

 

 

2,508

 

 

3,082

 

 

(260)

 

2009

 

06/27/2012

 

Restaurants – Limited Service

 

Monroe

 

LA

 

 

(f)

 

 

266

 

 

 -

 

 

 -

 

 

 -

 

 

266

 

 

 -

 

 

266

 

 

 -

 

1998

 

06/27/2012

 

Restaurants – Limited Service

 

West Monroe

 

LA

 

 

(f)

 

 

511

 

 

 -

 

 

 -

 

 

 -

 

 

511

 

 

 -

 

 

511

 

 

 -

 

2000

 

06/27/2012

 

Restaurants – Limited Service

 

Brookhaven

 

MS

 

 

(f)

 

 

337

 

 

 -

 

 

 -

 

 

 -

 

 

337

 

 

 -

 

 

337

 

 

 -

 

1979

 

06/27/2012

 

Restaurants – Limited Service

 

Byram

 

MS

 

 

(f)

 

 

306

 

 

 -

 

 

 -

 

 

 -

 

 

306

 

 

 -

 

 

306

 

 

 -

 

1993

 

06/27/2012

 

Restaurants – Limited Service

 

Canton

 

MS

 

 

(f)

 

 

133

 

 

 -

 

 

 -

 

 

 -

 

 

133

 

 

 -

 

 

133

 

 

 -

 

1991

 

06/27/2012

 

Restaurants – Limited Service

 

Clarksdale

 

MS

 

 

(f)

 

 

276

 

 

 -

 

 

 -

 

 

 -

 

 

276

 

 

 -

 

 

276

 

 

 -

 

1979

 

06/27/2012

 

Restaurants – Limited Service

 

Cleveland

 

MS

 

 

(f)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

1991

 

06/27/2012

 

Restaurants – Limited Service

 

Clinton

 

MS

 

 

(f)

 

 

337

 

 

 -

 

 

 -

 

 

 -

 

 

337

 

 

 -

 

 

337

 

 

 -

 

1994

 

06/27/2012

 

Restaurants – Limited Service

 

McComb

 

MS

 

 

(f)

 

 

337

 

 

 -

 

 

 -

 

 

 -

 

 

337

 

 

 -

 

 

337

 

 

 -

 

1985

 

06/27/2012

 

Restaurants – Limited Service

 

Starkville

 

MS

 

 

(f)

 

 

184

 

 

 -

 

 

 -

 

 

 -

 

 

184

 

 

 -

 

 

184

 

 

 -

 

1991

 

06/27/2012

 

Restaurants – Limited Service

 

Tupelo

 

MS

 

 

(f)

 

 

317

 

 

 -

 

 

 -

 

 

 -

 

 

317

 

 

 -

 

 

317

 

 

 -

 

1990

 

06/27/2012

 

Child Day Care Services

 

Sicklerville

 

NJ

 

 

(f)

 

 

403

 

 

2,527

 

 

 -

 

 

 -

 

 

403

 

 

2,527

 

 

2,930

 

 

(254)

 

2008

 

06/27/2012

 

Child Day Care Services

 

Collegeville

 

PA

 

 

(f)

 

 

546

 

 

2,182

 

 

 -

 

 

 -

 

 

546

 

 

2,182

 

 

2,728

 

 

(225)

 

2008

 

06/27/2012

 

Child Day Care Services

 

Woodbridge

 

VA

 

 

(f)

 

 

777

 

 

2,204

 

 

219

 

 

 -

 

 

996

 

 

2,204

 

 

3,200

 

 

(321)

 

2002

 

06/27/2012

 

Grocery Stores

 

Alabaster

 

AL

 

 

 

 

 

487

 

 

2,873

 

 

 -

 

 

 -

 

 

487

 

 

2,873

 

 

3,360

 

 

(374)

 

1985

 

06/29/2012

 

Grocery Stores

 

Atmore

 

AL

 

 

 

 

 

292

 

 

1,568

 

 

 -

 

 

 -

 

 

292

 

 

1,568

 

 

1,860

 

 

(202)

 

1990

 

06/29/2012

 

Grocery Stores

 

Brewton

 

AL

 

 

 

 

 

234

 

 

1,625

 

 

 -

 

 

 -

 

 

234

 

 

1,625

 

 

1,859

 

 

(209)

 

1990

 

06/29/2012

 

Grocery Stores

 

Enterprise

 

AL

 

 

 

 

 

744

 

 

2,045

 

 

 -

 

 

 -

 

 

744

 

 

2,045

 

 

2,789

 

 

(288)

 

1987

 

06/29/2012

 

Grocery Stores

 

Luverne

 

AL

 

 

 

 

 

234

 

 

1,425

 

 

 -

 

 

 -

 

 

234

 

 

1,425

 

 

1,659

 

 

(184)

 

1992

 

06/29/2012

 

Grocery Stores

 

Muscle Shoals

 

AL

 

 

 

 

 

521

 

 

2,089

 

 

 -

 

 

 -

 

 

521

 

 

2,089

 

 

2,610

 

 

(276)

 

1982

 

06/29/2012

 

Grocery Stores

 

Troy

 

AL

 

 

 

 

 

511

 

 

2,209

 

 

 -

 

 

 -

 

 

511

 

 

2,209

 

 

2,720

 

 

(304)

 

1984

 

06/29/2012

 

Grocery Stores

 

Albany

 

GA

 

 

 

 

 

628

 

 

2,571

 

 

 -

 

 

 -

 

 

628

 

 

2,571

 

 

3,199

 

 

(332)

 

1992

 

06/29/2012

 

Grocery Stores

 

Milledgeville

 

GA

 

 

 

 

 

652

 

 

2,317

 

 

 -

 

 

 -

 

 

652

 

 

2,317

 

 

2,969

 

 

(305)

 

1994

 

06/29/2012

 

Other Motor Vehicle Dealers

 

Oklahoma City

 

OK

 

 

(f)

 

 

5,451

 

 

3,275

 

 

438

 

 

1,227

 

 

5,889

 

 

4,502

 

 

10,391

 

 

(1,449)

 

1997

 

06/29/2012

 

Health Clubs

 

Visalia

 

CA

 

 

3,208

 

 

1,382

 

 

4,928

 

 

 -

 

 

 -

 

 

1,382

 

 

4,928

 

 

6,310

 

 

(675)

 

1975

 

07/06/2012

 

Restaurants – Full Service

 

Alpharetta

 

GA

 

 

(f)

 

 

866

 

 

3,520

 

 

 -

 

 

 -

 

 

866

 

 

3,520

 

 

4,386

 

 

(438)

 

2001

 

07/17/2012

 

F-4


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Restaurants – Full Service

 

Newnan

 

GA

 

 

(f)

 

 

1,114

 

 

1,847

 

 

 -

 

 

 -

 

 

1,114

 

 

1,847

 

 

2,961

 

 

(263)

 

2005

 

07/17/2012

 

Restaurants – Full Service

 

Peachtree City

 

GA

 

 

(f)

 

 

1,280

 

 

1,750

 

 

 -

 

 

 -

 

 

1,280

 

 

1,750

 

 

3,030

 

 

(276)

 

1999

 

07/17/2012

 

Restaurants – Full Service

 

Suwanee

 

GA

 

 

(f)

 

 

1,325

 

 

1,954

 

 

 -

 

 

 -

 

 

1,325

 

 

1,954

 

 

3,279

 

 

(270)

 

2006

 

07/17/2012

 

Restaurants – Full Service

 

Suwanee

 

GA

 

 

(f)

 

 

1,168

 

 

1,624

 

 

 -

 

 

 -

 

 

1,168

 

 

1,624

 

 

2,792

 

 

(240)

 

2005

 

07/17/2012

 

Restaurants – Full Service

 

Huntersville

 

NC

 

 

(f)

 

 

1,654

 

 

1,147

 

 

 -

 

 

 -

 

 

1,654

 

 

1,147

 

 

2,801

 

 

(143)

 

2000

 

07/17/2012

 

Restaurants – Limited Service

 

South St. Paul

 

MN

 

 

(f)

 

 

357

 

 

499

 

 

60

 

 

240

 

 

417

 

 

739

 

 

1,156

 

 

(153)

 

1987

 

07/19/2012

 

Elementary and Secondary Schools

 

Scottsdale

 

AZ

 

 

(f)

 

 

3,729

 

 

6,288

 

 

 -

 

 

 -

 

 

3,729

 

 

6,288

 

 

10,017

 

 

(793)

 

1991

 

07/25/2012

 

Home Furnishings Stores

 

Dayton

 

OH

 

 

(f)

 

 

369

 

 

1,318

 

 

 -

 

 

 -

 

 

369

 

 

1,318

 

 

1,687

 

 

(179)

 

1996

 

07/26/2012

 

Home Furnishings Stores

 

Fairborn

 

OH

 

 

(f)

 

 

418

 

 

872

 

 

 -

 

 

 -

 

 

418

 

 

872

 

 

1,290

 

 

(117)

 

2006

 

07/26/2012

 

Home Furnishings Stores

 

Heath

 

OH

 

 

(f)

 

 

818

 

 

1,171

 

 

 -

 

 

 -

 

 

818

 

 

1,171

 

 

1,989

 

 

(141)

 

2004

 

07/26/2012

 

Other Personal Services

 

Columbus

 

OH

 

 

(f)

 

 

853

 

 

1,655

 

 

 -

 

 

 -

 

 

853

 

 

1,655

 

 

2,508

 

 

(246)

 

2012

 

07/27/2012

 

Motion Picture and Video Industries

 

Corpus Christi

 

TX

 

 

 

 

 

5,954

 

 

9,373

 

 

 -

 

 

 -

 

 

5,954

 

 

9,373

 

 

15,327

 

 

(1,697)

 

1995

 

08/21/2012

 

Motion Picture and Video Industries

 

Forney

 

TX

 

 

 

 

 

2,740

 

 

2,904

 

 

 -

 

 

 -

 

 

2,740

 

 

2,904

 

 

5,644

 

 

(417)

 

2006

 

08/21/2012

 

Motion Picture and Video Industries

 

Fort Worth

 

TX

 

 

24,229

 

 

3,105

 

 

7,677

 

 

 -

 

 

 -

 

 

3,105

 

 

7,677

 

 

10,782

 

 

(1,063)

 

2010

 

08/21/2012

 

Motion Picture and Video Industries

 

Irving

 

TX

 

 

 

 

 

1,976

 

 

1,172

 

 

 -

 

 

 -

 

 

1,976

 

 

1,172

 

 

3,148

 

 

(214)

 

1995

 

08/21/2012

 

Motion Picture and Video Industries

 

Rio Grande City

 

TX

 

 

 

 

 

1,933

 

 

3,196

 

 

 -

 

 

 -

 

 

1,933

 

 

3,196

 

 

5,129

 

 

(451)

 

2008

 

08/21/2012

 

Restaurants – Limited Service

 

Hancock

 

MD

 

 

(f)

 

 

490

 

 

348

 

 

 -

 

 

 -

 

 

490

 

 

348

 

 

838

 

 

(63)

 

1987

 

08/29/2012

 

Restaurants – Limited Service

 

Chambersburg

 

PA

 

 

(f)

 

 

539

 

 

667

 

 

 -

 

 

 -

 

 

539

 

 

667

 

 

1,206

 

 

(100)

 

1989

 

08/29/2012

 

Restaurants – Limited Service

 

Greencastle

 

PA

 

 

(f)

 

 

767

 

 

638

 

 

 -

 

 

 -

 

 

767

 

 

638

 

 

1,405

 

 

(101)

 

1986

 

08/29/2012

 

Child Day Care Services

 

Gilbert

 

AZ

 

 

 

 

 

453

 

 

1,639

 

 

 -

 

 

 -

 

 

453

 

 

1,639

 

 

2,092

 

 

(159)

 

1996

 

08/30/2012

 

Child Day Care Services

 

Gilbert

 

AZ

 

 

6,057

 

 

393

 

 

1,699

 

 

 -

 

 

 -

 

 

393

 

 

1,699

 

 

2,092

 

 

(157)

 

2002

 

08/30/2012

 

Child Day Care Services

 

Phoenix

 

AZ

 

 

 

 

 

877

 

 

2,312

 

 

 -

 

 

 -

 

 

877

 

 

2,312

 

 

3,189

 

 

(253)

 

2003

 

08/30/2012

 

Child Day Care Services

 

Phoenix

 

AZ

 

 

 

 

 

595

 

 

2,095

 

 

 -

 

 

 -

 

 

595

 

 

2,095

 

 

2,690

 

 

(211)

 

2006

 

08/30/2012

 

Child Day Care Services

 

Plainfield

 

IL

 

 

(f)

 

 

390

 

 

699

 

 

 -

 

 

 -

 

 

390

 

 

699

 

 

1,089

 

 

(90)

 

2008

 

09/07/2012

 

Other Motor Vehicle Dealers

 

Garner

 

NC

 

 

(f)

 

 

2,163

 

 

342

 

 

329

 

 

3,276

 

 

2,492

 

 

3,618

 

 

6,110

 

 

(211)

 

1997

 

09/13/2012

 

Other Motor Vehicle Dealers

 

Hope Mills

 

NC

 

 

(f)

 

 

1,462

 

 

1,437

 

 

 -

 

 

 -

 

 

1,462

 

 

1,437

 

 

2,899

 

 

(262)

 

1993

 

09/13/2012

 

Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers

 

Washington

 

PA

 

 

(f)

 

 

6,508

 

 

1,380

 

 

 -

 

 

 -

 

 

6,508

 

 

1,380

 

 

7,888

 

 

(676)

 

1975

 

09/14/2012

 

Motion Picture and Video Industries

 

Savoy

 

IL

 

 

(f)

 

 

2,764

 

 

3,552

 

 

212

 

 

5,788

 

 

2,976

 

 

9,340

 

 

12,316

 

 

(795)

 

1990

 

09/25/2012

 

Restaurants – Full Service

 

Lumberton

 

NC

 

 

(f)

 

 

676

 

 

451

 

 

 -

 

 

 -

 

 

676

 

 

451

 

 

1,127

 

 

(65)

 

1999

 

09/25/2012

 

Restaurants – Full Service

 

Morrisville

 

NC

 

 

(f)

 

 

891

 

 

235

 

 

 -

 

 

 -

 

 

891

 

 

235

 

 

1,126

 

 

(40)

 

1999

 

09/25/2012

 

Restaurants – Full Service

 

Roanoke Rapids

 

NC

 

 

(f)

 

 

464

 

 

471

 

 

 -

 

 

 -

 

 

464

 

 

471

 

 

935

 

 

(67)

 

1998

 

09/25/2012

 

Restaurants – Full Service

 

Rocky Mount

 

NC

 

 

(f)

 

 

593

 

 

403

 

 

 -

 

 

 -

 

 

593

 

 

403

 

 

996

 

 

(61)

 

1994

 

09/25/2012

 

Restaurants – Full Service

 

Smithfield

 

NC

 

 

(f)

 

 

702

 

 

384

 

 

 -

 

 

 -

 

 

702

 

 

384

 

 

1,086

 

 

(63)

 

1998

 

09/25/2012

 

Restaurants – Full Service

 

Wilson

 

NC

 

 

(f)

 

 

631

 

 

304

 

 

 -

 

 

 -

 

 

631

 

 

304

 

 

935

 

 

(48)

 

2001

 

09/25/2012

 

Restaurants – Full Service

 

Charleston

 

WV

 

 

(f)

 

 

496

 

 

400

 

 

 -

 

 

 -

 

 

496

 

 

400

 

 

896

 

 

(57)

 

2004

 

09/25/2012

 

Child Day Care Services

 

Columbus

 

OH

 

 

(f)

 

 

937

 

 

1,135

 

 

 -

 

 

 -

 

 

937

 

 

1,135

 

 

2,072

 

 

(152)

 

1992

 

09/28/2012

 

Furniture Stores

 

Fairfield

 

CA

 

 

5,980

 

 

2,618

 

 

2,633

 

 

 -

 

 

 -

 

 

2,618

 

 

2,633

 

 

5,251

 

 

(313)

 

2006

 

10/01/2012

 

Furniture Stores

 

Rohnert Park

 

CA

 

 

 

 

 

2,115

 

 

3,362

 

 

 -

 

 

 -

 

 

2,115

 

 

3,362

 

 

5,477

 

 

(394)

 

2006

 

10/01/2012

 

Child Day Care Services

 

Oak Creek

 

WI

 

 

(f)

 

 

781

 

 

1,657

 

 

 -

 

 

 -

 

 

781

 

 

1,657

 

 

2,438

 

 

(182)

 

2009

 

10/02/2012

 

Restaurants – Full Service

 

Wheeling

 

IL

 

 

(f)

 

 

1,116

 

 

1,091

 

 

31

 

 

469

 

 

1,147

 

 

1,560

 

 

2,707

 

 

(192)

 

2007

 

10/05/2012

 

Restaurants – Full Service

 

Auburn

 

IN

 

 

(f)

 

 

750

 

 

1,420

 

 

 -

 

 

 -

 

 

750

 

 

1,420

 

 

2,170

 

 

(203)

 

2000

 

10/05/2012

 

Restaurants – Full Service

 

Fort Wayne

 

IN

 

 

(f)

 

 

946

 

 

1,335

 

 

 -

 

 

 -

 

 

946

 

 

1,335

 

 

2,281

 

 

(173)

 

1993

 

10/05/2012

 

Restaurants – Full Service

 

Fort Wayne

 

IN

 

 

(f)

 

 

964

 

 

1,337

 

 

 -

 

 

 -

 

 

964

 

 

1,337

 

 

2,301

 

 

(170)

 

1993

 

10/05/2012

 

Restaurants – Full Service

 

Fort Wayne

 

IN

 

 

(f)

 

 

1,239

 

 

1,614

 

 

 -

 

 

 -

 

 

1,239

 

 

1,614

 

 

2,853

 

 

(197)

 

2002

 

10/05/2012

 

Restaurants – Full Service

 

Goshen

 

IN

 

 

(f)

 

 

639

 

 

1,451

 

 

 -

 

 

 -

 

 

639

 

 

1,451

 

 

2,090

 

 

(202)

 

1999

 

10/05/2012

 

Restaurants – Full Service

 

Granger

 

IN

 

 

(f)

 

 

778

 

 

1,222

 

 

 -

 

 

 -

 

 

778

 

 

1,222

 

 

2,000

 

 

(166)

 

1995

 

10/05/2012

 

Restaurants – Full Service

 

Portage

 

IN

 

 

(f)

 

 

555

 

 

1,374

 

 

 -

 

 

 -

 

 

555

 

 

1,374

 

 

1,929

 

 

(186)

 

1999

 

10/05/2012

 

Restaurants – Full Service

 

Schererville

 

IN

 

 

(f)

 

 

543

 

 

1,356

 

 

 -

 

 

 -

 

 

543

 

 

1,356

 

 

1,899

 

 

(177)

 

1992

 

10/05/2012

 

Restaurants – Full Service

 

South Bend

 

IN

 

 

(f)

 

 

675

 

 

1,394

 

 

 -

 

 

 -

 

 

675

 

 

1,394

 

 

2,069

 

 

(188)

 

1999

 

10/05/2012

 

Restaurants – Full Service

 

Valparaiso

 

IN

 

 

(f)

 

 

507

 

 

1,502

 

 

 -

 

 

 -

 

 

507

 

 

1,502

 

 

2,009

 

 

(199)

 

1995

 

10/05/2012

 

F-5


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Restaurants – Full Service

 

Fremont

 

OH

 

 

(f)

 

 

728

 

 

1,443

 

 

 -

 

 

 -

 

 

728

 

 

1,443

 

 

2,171

 

 

(187)

 

2000

 

10/05/2012

 

Restaurants – Full Service

 

Lima

 

OH

 

 

(f)

 

 

765

 

 

1,576

 

 

 -

 

 

 -

 

 

765

 

 

1,576

 

 

2,341

 

 

(199)

 

1996

 

10/05/2012

 

Restaurants – Full Service

 

Lima

 

OH

 

 

(f)

 

 

755

 

 

1,536

 

 

 -

 

 

 -

 

 

755

 

 

1,536

 

 

2,291

 

 

(195)

 

2005

 

10/05/2012

 

Restaurants – Full Service

 

Maumee

 

OH

 

 

(f)

 

 

657

 

 

1,684

 

 

 -

 

 

 -

 

 

657

 

 

1,684

 

 

2,341

 

 

(214)

 

1995

 

10/05/2012

 

Restaurants – Full Service

 

Northwood

 

OH

 

 

(f)

 

 

615

 

 

1,716

 

 

 -

 

 

 -

 

 

615

 

 

1,716

 

 

2,331

 

 

(219)

 

2004

 

10/05/2012

 

Restaurants – Full Service

 

Toledo

 

OH

 

 

(f)

 

 

754

 

 

1,587

 

 

 -

 

 

 -

 

 

754

 

 

1,587

 

 

2,341

 

 

(211)

 

1995

 

10/05/2012

 

Child Day Care Services

 

Bradenton

 

FL

 

 

(f)

 

 

545

 

 

2,150

 

 

 -

 

 

 -

 

 

545

 

 

2,150

 

 

2,695

 

 

(278)

 

1982

 

10/19/2012

 

Restaurants – Full Service

 

Chicago

 

IL

 

 

(f)

 

 

504

 

 

3,959

 

 

 -

 

 

 -

 

 

504

 

 

3,959

 

 

4,463

 

 

(347)

 

1886

 

10/29/2012

 

Restaurants – Full Service

 

Chicago

 

IL

 

 

(f)

 

 

900

 

 

2,410

 

 

 -

 

 

 -

 

 

900

 

 

2,410

 

 

3,310

 

 

(284)

 

1923

 

10/29/2012

 

Restaurants – Full Service

 

Chicago

 

IL

 

 

(f)

 

 

810

 

 

5,559

 

 

 -

 

 

 -

 

 

810

 

 

5,559

 

 

6,369

 

 

(482)

 

2008

 

10/29/2012

 

Restaurants – Limited Service

 

Baton Rouge

 

LA

 

 

(f)

 

 

700

 

 

162

 

 

 -

 

 

 -

 

 

700

 

 

162

 

 

862

 

 

(31)

 

2005

 

11/09/2012

 

Restaurants – Limited Service

 

Baton Rouge

 

LA

 

 

(f)

 

 

742

 

 

212

 

 

 -

 

 

 -

 

 

742

 

 

212

 

 

954

 

 

(44)

 

2005

 

11/09/2012

 

Restaurants – Limited Service

 

Breaux Bridge

 

LA

 

 

(f)

 

 

678

 

 

643

 

 

 -

 

 

 -

 

 

678

 

 

643

 

 

1,321

 

 

(136)

 

1996

 

11/09/2012

 

Restaurants – Limited Service

 

Denham

 

LA

 

 

(f)

 

 

831

 

 

444

 

 

 -

 

 

 -

 

 

831

 

 

444

 

 

1,275

 

 

(88)

 

2001

 

11/09/2012

 

Restaurants – Limited Service

 

Donaldsonville

 

LA

 

 

(f)

 

 

327

 

 

562

 

 

 -

 

 

 -

 

 

327

 

 

562

 

 

889

 

 

(105)

 

1981

 

11/09/2012

 

Restaurants – Limited Service

 

Gonzales

 

LA

 

 

(f)

 

 

547

 

 

599

 

 

 -

 

 

 -

 

 

547

 

 

599

 

 

1,146

 

 

(102)

 

1981

 

11/09/2012

 

Restaurants – Limited Service

 

Gonzales

 

LA

 

 

(f)

 

 

617

 

 

419

 

 

 -

 

 

 -

 

 

617

 

 

419

 

 

1,036

 

 

(79)

 

1996

 

11/09/2012

 

Restaurants – Limited Service

 

Kentwood

 

LA

 

 

(f)

 

 

243

 

 

600

 

 

 -

 

 

 -

 

 

243

 

 

600

 

 

843

 

 

(84)

 

2006

 

11/09/2012

 

Restaurants – Limited Service

 

Larose

 

LA

 

 

(f)

 

 

418

 

 

756

 

 

 -

 

 

 -

 

 

418

 

 

756

 

 

1,174

 

 

(149)

 

1986

 

11/09/2012

 

Restaurants – Limited Service

 

Port Vincent

 

LA

 

 

(f)

 

 

692

 

 

207

 

 

 -

 

 

 -

 

 

692

 

 

207

 

 

899

 

 

(35)

 

2006

 

11/09/2012

 

Restaurants – Limited Service

 

Prairieville

 

LA

 

 

(f)

 

 

724

 

 

165

 

 

 -

 

 

 -

 

 

724

 

 

165

 

 

889

 

 

(47)

 

1995

 

11/09/2012

 

Restaurants – Limited Service

 

Walker

 

LA

 

 

(f)

 

 

508

 

 

776

 

 

 -

 

 

 -

 

 

508

 

 

776

 

 

1,284

 

 

(155)

 

2001

 

11/09/2012

 

Other Schools and Instruction

 

Denver

 

CO

 

 

7,295

 

 

5,201

 

 

8,925

 

 

 -

 

 

 -

 

 

5,201

 

 

8,925

 

 

14,126

 

 

(917)

 

1962

 

11/21/2012

 

Scientific Research and Development Services

 

Columbia

 

MO

 

 

11,210

 

 

807

 

 

13,794

 

 

 -

 

 

620

 

 

807

 

 

14,414

 

 

15,221

 

 

(1,025)

 

2008

 

11/29/2012

 

Restaurants – Full Service

 

Orland Park

 

IL

 

 

(f)

 

 

1,267

 

 

4,321

 

 

 -

 

 

 -

 

 

1,267

 

 

4,321

 

 

5,588

 

 

(360)

 

2005

 

11/30/2012

 

Child Day Care Services

 

Cincinnati

 

OH

 

 

(f)

 

 

1,074

 

 

1,610

 

 

 -

 

 

 -

 

 

1,074

 

 

1,610

 

 

2,684

 

 

(202)

 

2001

 

12/10/2012

 

Child Day Care Services

 

Powell

 

OH

 

 

(f)

 

 

1,102

 

 

1,602

 

 

 -

 

 

 -

 

 

1,102

 

 

1,602

 

 

2,704

 

 

(201)

 

1998

 

12/10/2012

 

Child Day Care Services

 

Manassas

 

VA

 

 

(f)

 

 

938

 

 

2,580

 

 

 -

 

 

 -

 

 

938

 

 

2,580

 

 

3,518

 

 

(295)

 

2005

 

12/10/2012

 

Restaurants – Limited Service

 

Dalton

 

GA

 

 

(f)

 

 

418

 

 

1,133

 

 

 -

 

 

 -

 

 

418

 

 

1,133

 

 

1,551

 

 

(134)

 

1984

 

12/11/2012

 

Restaurants – Limited Service

 

Chattanooga

 

TN

 

 

(f)

 

 

426

 

 

984

 

 

 -

 

 

 -

 

 

426

 

 

984

 

 

1,410

 

 

(118)

 

1984

 

12/11/2012

 

Restaurants – Limited Service

 

East Ridge

 

TN

 

 

(f)

 

 

481

 

 

807

 

 

 -

 

 

 -

 

 

481

 

 

807

 

 

1,288

 

 

(101)

 

1982

 

12/11/2012

 

Restaurants – Full Service

 

Abilene

 

TX

 

 

(f)

 

 

593

 

 

2,023

 

 

 -

 

 

 -

 

 

593

 

 

2,023

 

 

2,616

 

 

(254)

 

1961

 

12/11/2012

 

Furniture Stores

 

Lancaster

 

PA

 

 

(f)

 

 

1,034

 

 

 -

 

 

 -

 

 

 -

 

 

1,034

 

 

 -

 

 

1,034

 

 

 -

 

1999

 

12/13/2012

 

Furniture Stores

 

Wilkes Barre

 

PA

 

 

(f)

 

 

827

 

 

 -

 

 

 -

 

 

 -

 

 

827

 

 

 -

 

 

827

 

 

 -

 

1997

 

12/13/2012

 

Health Clubs

 

Mesa

 

AZ

 

 

(f)

 

 

1,112

 

 

3,684

 

 

 -

 

 

 -

 

 

1,112

 

 

3,684

 

 

4,796

 

 

(328)

 

2003

 

12/20/2012

 

Health Clubs

 

Scottsdale

 

AZ

 

 

(f)

 

 

2,029

 

 

4,716

 

 

 -

 

 

 -

 

 

2,029

 

 

4,716

 

 

6,745

 

 

(448)

 

2003

 

12/20/2012

 

Restaurants – Full Service

 

Champaign

 

IL

 

 

(f)

 

 

931

 

 

854

 

 

 -

 

 

 -

 

 

931

 

 

854

 

 

1,785

 

 

(98)

 

2004

 

12/27/2012

 

Restaurants – Full Service

 

Decatur

 

IL

 

 

(f)

 

 

559

 

 

615

 

 

 -

 

 

 -

 

 

559

 

 

615

 

 

1,174

 

 

(77)

 

2005

 

12/27/2012

 

Restaurants – Full Service

 

Dekalb

 

IL

 

 

(f)

 

 

615

 

 

747

 

 

 -

 

 

 -

 

 

615

 

 

747

 

 

1,362

 

 

(106)

 

2000

 

12/27/2012

 

Restaurants – Full Service

 

Effingham

 

IL

 

 

(f)

 

 

514

 

 

717

 

 

 -

 

 

 -

 

 

514

 

 

717

 

 

1,231

 

 

(91)

 

2003

 

12/27/2012

 

Restaurants – Full Service

 

Morton

 

IL

 

 

(f)

 

 

554

 

 

856

 

 

 -

 

 

 -

 

 

554

 

 

856

 

 

1,410

 

 

(125)

 

1999

 

12/27/2012

 

Restaurants – Full Service

 

Rockford

 

IL

 

 

(f)

 

 

925

 

 

250

 

 

 -

 

 

 -

 

 

925

 

 

250

 

 

1,175

 

 

(37)

 

1999

 

12/27/2012

 

Restaurants – Full Service

 

Skokie

 

IL

 

 

(f)

 

 

737

 

 

1,189

 

 

 -

 

 

 -

 

 

737

 

 

1,189

 

 

1,926

 

 

(144)

 

2000

 

12/27/2012

 

Restaurants – Full Service

 

Clarksville

 

IN

 

 

(f)

 

 

814

 

 

1,369

 

 

 -

 

 

 -

 

 

814

 

 

1,369

 

 

2,183

 

 

(179)

 

1978

 

12/27/2012

 

Restaurants – Full Service

 

Merrillville

 

IN

 

 

(f)

 

 

981

 

 

1,795

 

 

 -

 

 

 -

 

 

981

 

 

1,795

 

 

2,776

 

 

(246)

 

1979

 

12/27/2012

 

Restaurants – Full Service

 

Emporia

 

KS

 

 

(f)

 

 

730

 

 

1,541

 

 

 -

 

 

 -

 

 

730

 

 

1,541

 

 

2,271

 

 

(240)

 

1998

 

12/27/2012

 

Restaurants – Full Service

 

Topeka

 

KS

 

 

(f)

 

 

783

 

 

2,054

 

 

 -

 

 

 -

 

 

783

 

 

2,054

 

 

2,837

 

 

(317)

 

1992

 

12/27/2012

 

Restaurants – Full Service

 

Florence

 

KY

 

 

(f)

 

 

1,161

 

 

1,290

 

 

 -

 

 

 -

 

 

1,161

 

 

1,290

 

 

2,451

 

 

(235)

 

2004

 

12/27/2012

 

Restaurants – Full Service

 

Louisville

 

KY

 

 

(f)

 

 

1,127

 

 

1,577

 

 

 -

 

 

 -

 

 

1,127

 

 

1,577

 

 

2,704

 

 

(228)

 

1973

 

12/27/2012

 

Restaurants – Full Service

 

Louisville

 

KY

 

 

(f)

 

 

1,122

 

 

1,415

 

 

 -

 

 

 -

 

 

1,122

 

 

1,415

 

 

2,537

 

 

(211)

 

1974

 

12/27/2012

 

F-6


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Restaurants – Full Service

 

Maryville

 

MO

 

 

(f)

 

 

682

 

 

1,727

 

 

 -

 

 

 -

 

 

682

 

 

1,727

 

 

2,409

 

 

(226)

 

2005

 

12/27/2012

 

Restaurants – Full Service

 

Columbus

 

NE

 

 

(f)

 

 

628

 

 

1,401

 

 

 -

 

 

 -

 

 

628

 

 

1,401

 

 

2,029

 

 

(149)

 

2002

 

12/27/2012

 

Restaurants – Full Service

 

Grand Island

 

NE

 

 

(f)

 

 

749

 

 

1,922

 

 

 -

 

 

 -

 

 

749

 

 

1,922

 

 

2,671

 

 

(204)

 

1999

 

12/27/2012

 

Restaurants – Full Service

 

Kearney

 

NE

 

 

(f)

 

 

718

 

 

2,236

 

 

 -

 

 

 -

 

 

718

 

 

2,236

 

 

2,954

 

 

(237)

 

2002

 

12/27/2012

 

Restaurants – Full Service

 

Lincoln

 

NE

 

 

(f)

 

 

672

 

 

1,539

 

 

 -

 

 

 -

 

 

672

 

 

1,539

 

 

2,211

 

 

(184)

 

1993

 

12/27/2012

 

Restaurants – Full Service

 

Lincoln

 

NE

 

 

(f)

 

 

726

 

 

1,775

 

 

 -

 

 

 -

 

 

726

 

 

1,775

 

 

2,501

 

 

(188)

 

1999

 

12/27/2012

 

Restaurants – Full Service

 

Dayton

 

OH

 

 

(f)

 

 

960

 

 

1,088

 

 

 -

 

 

 -

 

 

960

 

 

1,088

 

 

2,048

 

 

(211)

 

2003

 

12/27/2012

 

Restaurants – Full Service

 

Ada

 

OK

 

 

1,595

 

 

1,252

 

 

1,438

 

 

 -

 

 

 -

 

 

1,252

 

 

1,438

 

 

2,690

 

 

(168)

 

2006

 

12/27/2012

 

Restaurants – Full Service

 

Altus

 

OK

 

 

1,114

 

 

732

 

 

1,147

 

 

 -

 

 

 -

 

 

732

 

 

1,147

 

 

1,879

 

 

(136)

 

2005

 

12/27/2012

 

Restaurants – Full Service

 

Ardmore

 

OK

 

 

(f)

 

 

946

 

 

1,539

 

 

 -

 

 

 -

 

 

946

 

 

1,539

 

 

2,485

 

 

(197)

 

1998

 

12/27/2012

 

Restaurants – Full Service

 

Lawton

 

OK

 

 

1,292

 

 

923

 

 

1,258

 

 

 -

 

 

 -

 

 

923

 

 

1,258

 

 

2,181

 

 

(184)

 

1996

 

12/27/2012

 

Restaurants – Full Service

 

Goodlettsville

 

TN

 

 

(f)

 

 

969

 

 

1,616

 

 

 -

 

 

 -

 

 

969

 

 

1,616

 

 

2,585

 

 

(260)

 

1973

 

12/27/2012

 

Restaurants – Full Service

 

Memphis

 

TN

 

 

(f)

 

 

1,244

 

 

1,580

 

 

 -

 

 

 -

 

 

1,244

 

 

1,580

 

 

2,824

 

 

(247)

 

2002

 

12/27/2012

 

Restaurants – Full Service

 

Nashville

 

TN

 

 

(f)

 

 

979

 

 

1,319

 

 

 -

 

 

 -

 

 

979

 

 

1,319

 

 

2,298

 

 

(209)

 

1978

 

12/27/2012

 

Restaurants – Full Service

 

Nashville

 

TN

 

 

(f)

 

 

626

 

 

2,270

 

 

 -

 

 

 -

 

 

626

 

 

2,270

 

 

2,896

 

 

(247)

 

1910

 

12/27/2012

 

Restaurants – Full Service

 

Amarillo

 

TX

 

 

1,298

 

 

927

 

 

1,330

 

 

 -

 

 

 -

 

 

927

 

 

1,330

 

 

2,257

 

 

(191)

 

1995

 

12/27/2012

 

Restaurants – Full Service

 

Lubbock

 

TX

 

 

1,205

 

 

1,289

 

 

808

 

 

 -

 

 

 -

 

 

1,289

 

 

808

 

 

2,097

 

 

(118)

 

1994

 

12/27/2012

 

Restaurants – Full Service

 

Evansville

 

WY

 

 

(f)

 

 

932

 

 

1,569

 

 

 -

 

 

 -

 

 

932

 

 

1,569

 

 

2,501

 

 

(200)

 

1999

 

12/27/2012

 

Restaurants – Full Service

 

Gillette

 

WY

 

 

(f)

 

 

1,322

 

 

1,990

 

 

 -

 

 

 -

 

 

1,322

 

 

1,990

 

 

3,312

 

 

(253)

 

2001

 

12/27/2012

 

Restaurants – Full Service

 

Laramie

 

WY

 

 

(f)

 

 

923

 

 

1,081

 

 

 -

 

 

 -

 

 

923

 

 

1,081

 

 

2,004

 

 

(135)

 

1996

 

12/27/2012

 

Restaurants – Full Service

 

Omaha

 

NE

 

 

(f)

 

 

920

 

 

1,324

 

 

 -

 

 

 -

 

 

920

 

 

1,324

 

 

2,244

 

 

(168)

 

2005

 

12/28/2012

 

Restaurants – Full Service

 

Edmond

 

OK

 

 

(f)

 

 

371

 

 

294

 

 

 -

 

 

 -

 

 

371

 

 

294

 

 

665

 

 

(48)

 

1990

 

12/28/2012

 

Restaurants – Full Service

 

Oklahoma City

 

OK

 

 

(f)

 

 

507

 

 

556

 

 

 -

 

 

 -

 

 

507

 

 

556

 

 

1,063

 

 

(101)

 

1999

 

12/28/2012

 

Restaurants – Full Service

 

Oklahoma City

 

OK

 

 

(f)

 

 

186

 

 

390

 

 

 -

 

 

 -

 

 

186

 

 

390

 

 

576

 

 

(58)

 

1984

 

12/28/2012

 

Restaurants – Full Service

 

Oklahoma City

 

OK

 

 

(f)

 

 

500

 

 

603

 

 

 -

 

 

 -

 

 

500

 

 

603

 

 

1,103

 

 

(100)

 

1968

 

12/28/2012

 

Restaurants – Full Service

 

Oklahoma City

 

OK

 

 

(f)

 

 

398

 

 

427

 

 

 -

 

 

 -

 

 

398

 

 

427

 

 

825

 

 

(68)

 

1995

 

12/28/2012

 

Restaurants – Full Service

 

Oklahoma City

 

OK

 

 

(f)

 

 

291

 

 

384

 

 

 -

 

 

 -

 

 

291

 

 

384

 

 

675

 

 

(65)

 

1997

 

12/28/2012

 

Restaurants – Full Service

 

Oklahoma City

 

OK

 

 

(f)

 

 

271

 

 

404

 

 

 -

 

 

 -

 

 

271

 

 

404

 

 

675

 

 

(77)

 

2000

 

12/28/2012

 

Restaurants – Full Service

 

Yukon

 

OK

 

 

(f)

 

 

408

 

 

426

 

 

 -

 

 

 -

 

 

408

 

 

426

 

 

834

 

 

(80)

 

2002

 

12/28/2012

 

Restaurants – Full Service

 

Bartlett

 

TN

 

 

(f)

 

 

1,182

 

 

1,297

 

 

 -

 

 

 -

 

 

1,182

 

 

1,297

 

 

2,479

 

 

(181)

 

1998

 

12/28/2012

 

Restaurants – Limited Service

 

Huntingdon

 

TN

 

 

(f)

 

 

132

 

 

956

 

 

 -

 

 

 -

 

 

132

 

 

956

 

 

1,088

 

 

(68)

 

1989

 

12/28/2012

 

Restaurants – Limited Service

 

Paris

 

TN

 

 

(f)

 

 

383

 

 

686

 

 

 -

 

 

 -

 

 

383

 

 

686

 

 

1,069

 

 

(69)

 

1981

 

12/28/2012

 

Restaurants – Limited Service

 

Wise

 

VA

 

 

(f)

 

 

371

 

 

1,207

 

 

 -

 

 

 -

 

 

371

 

 

1,207

 

 

1,578

 

 

(92)

 

1983

 

12/28/2012

 

Other Motor Vehicle Dealers

 

Liberty Lake

 

WA

 

 

(f)

 

 

2,458

 

 

2,687

 

 

1,546

 

 

1,792

 

 

4,004

 

 

4,479

 

 

8,483

 

 

(442)

 

2006

 

12/28/2012

 

Restaurants – Limited Service

 

Welch

 

WV

 

 

(f)

 

 

542

 

 

997

 

 

 -

 

 

 -

 

 

542

 

 

997

 

 

1,539

 

 

(90)

 

1984

 

12/28/2012

 

Restaurants – Full Service

 

Jonesboro

 

GA

 

 

(f)

 

 

477

 

 

664

 

 

 -

 

 

 -

 

 

477

 

 

664

 

 

1,141

 

 

(93)

 

2000

 

12/31/2012

 

Restaurants – Full Service

 

Lawrenceville

 

GA

 

 

(f)

 

 

675

 

 

446

 

 

 -

 

 

121

 

 

675

 

 

567

 

 

1,242

 

 

(63)

 

2000

 

12/31/2012

 

Restaurants – Limited Service

 

Altoona

 

IA

 

 

(f)

 

 

368

 

 

468

 

 

 -

 

 

 -

 

 

368

 

 

468

 

 

836

 

 

(54)

 

1995

 

12/31/2012

 

Restaurants – Limited Service

 

Ankeny

 

IA

 

 

(f)

 

 

423

 

 

474

 

 

 -

 

 

 -

 

 

423

 

 

474

 

 

897

 

 

(66)

 

1986

 

12/31/2012

 

Restaurants – Limited Service

 

Boone

 

IA

 

 

(f)

 

 

308

 

 

538

 

 

 -

 

 

 -

 

 

308

 

 

538

 

 

846

 

 

(58)

 

1974

 

12/31/2012

 

Restaurants – Limited Service

 

Des Moines

 

IA

 

 

(f)

 

 

419

 

 

901

 

 

 -

 

 

 -

 

 

419

 

 

901

 

 

1,320

 

 

(97)

 

2003

 

12/31/2012

 

Restaurants – Limited Service

 

Des Moines

 

IA

 

 

(f)

 

 

382

 

 

555

 

 

 -

 

 

 -

 

 

382

 

 

555

 

 

937

 

 

(74)

 

2008

 

12/31/2012

 

Restaurants – Limited Service

 

Des Moines

 

IA

 

 

(f)

 

 

250

 

 

536

 

 

 -

 

 

 -

 

 

250

 

 

536

 

 

786

 

 

(70)

 

1991

 

12/31/2012

 

Restaurants – Limited Service

 

West Des Moines

 

IA

 

 

(f)

 

 

366

 

 

652

 

 

 -

 

 

 -

 

 

366

 

 

652

 

 

1,018

 

 

(72)

 

2010

 

12/31/2012

 

Restaurants – Limited Service

 

West Des Moines

 

IA

 

 

(f)

 

 

490

 

 

628

 

 

 -

 

 

 -

 

 

490

 

 

628

 

 

1,118

 

 

(71)

 

1995

 

12/31/2012

 

Restaurants – Full Service

 

Fishers

 

IN

 

 

(f)

 

 

750

 

 

1,622

 

 

 -

 

 

440

 

 

750

 

 

2,062

 

 

2,812

 

 

(215)

 

2004

 

01/03/2013

 

Restaurants – Full Service

 

Fishers

 

IN

 

 

(f)

 

 

730

 

 

1,181

 

 

8

 

 

 -

 

 

738

 

 

1,181

 

 

1,919

 

 

(117)

 

2009

 

01/03/2013

 

Restaurants – Full Service

 

Greenwood

 

IN

 

 

(f)

 

 

1,418

 

 

1,194

 

 

 -

 

 

164

 

 

1,418

 

 

1,358

 

 

2,776

 

 

(238)

 

2007

 

01/03/2013

 

Restaurants – Full Service

 

Lafayette

 

IN

 

 

(f)

 

 

679

 

 

1,953

 

 

198

 

 

388

 

 

877

 

 

2,341

 

 

3,218

 

 

(225)

 

2006

 

01/03/2013

 

Restaurants – Limited Service

 

Greenwood

 

IN

 

 

(f)

 

 

945

 

 

1,324

 

 

 -

 

 

 -

 

 

945

 

 

1,324

 

 

2,269

 

 

(189)

 

2001

 

01/10/2013

 

 

F-7


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Restaurants – Limited Service

 

Plainfield

 

IN

 

 

(f)

 

 

853

 

 

1,120

 

 

 -

 

 

 -

 

 

853

 

 

1,120

 

 

1,973

 

 

(154)

 

1999

 

01/10/2013

 

Restaurants – Limited Service

 

Cleveland

 

TN

 

 

(f)

 

 

1,143

 

 

1,366

 

 

 -

 

 

 -

 

 

1,143

 

 

1,366

 

 

2,509

 

 

(218)

 

1999

 

01/10/2013

 

Health Clubs

 

North Las Vegas

 

NV

 

 

(f)

 

 

1,609

 

 

6,621

 

 

 -

 

 

 -

 

 

1,609

 

 

6,621

 

 

8,230

 

 

(522)

 

2009

 

01/17/2013

 

Restaurants – Full Service

 

Peoria

 

AZ

 

 

(f)

 

 

510

 

 

1,630

 

 

 -

 

 

 -

 

 

510

 

 

1,630

 

 

2,140

 

 

(172)

 

2003

 

01/22/2013

 

Motion Picture and Video Industries

 

Mount Airy

 

NC

 

 

(f)

 

 

1,053

 

 

3,141

 

 

 -

 

 

 -

 

 

1,053

 

 

3,141

 

 

4,194

 

 

(379)

 

2000

 

01/24/2013

 

Motion Picture and Video Industries

 

Sanford

 

NC

 

 

(f)

 

 

1,146

 

 

4,245

 

 

 -

 

 

 -

 

 

1,146

 

 

4,245

 

 

5,391

 

 

(408)

 

2004

 

01/24/2013

 

Motion Picture and Video Industries

 

Shallotte

 

NC

 

 

(f)

 

 

1,239

 

 

3,353

 

 

 -

 

 

 -

 

 

1,239

 

 

3,353

 

 

4,592

 

 

(310)

 

2003

 

01/24/2013

 

Restaurants – Full Service

 

Fort Wayne

 

IN

 

 

(f)

 

 

843

 

 

1,017

 

 

 -

 

 

 -

 

 

843

 

 

1,017

 

 

1,860

 

 

(115)

 

1998

 

01/31/2013

 

Restaurants – Full Service

 

Lafayette

 

IN

 

 

(f)

 

 

782

 

 

1,812

 

 

 -

 

 

 -

 

 

782

 

 

1,812

 

 

2,594

 

 

(231)

 

1999

 

01/31/2013

 

Restaurants – Full Service

 

Wichita

 

KS

 

 

(f)

 

 

882

 

 

1,594

 

 

 -

 

 

 -

 

 

882

 

 

1,594

 

 

2,476

 

 

(152)

 

2006

 

01/31/2013

 

Restaurants – Limited Service

 

Nebraska City

 

NE

 

 

(f)

 

 

259

 

 

717

 

 

 -

 

 

 -

 

 

259

 

 

717

 

 

976

 

 

(97)

 

1989

 

01/31/2013

 

Electronics and Appliance Stores

 

Las Cruces

 

NM

 

 

(f)

 

 

1,350

 

 

4,043

 

 

 -

 

 

 -

 

 

1,350

 

 

4,043

 

 

5,393

 

 

(339)

 

1981

 

01/31/2013

 

Electronics and Appliance Stores

 

Houston

 

TX

 

 

(f)

 

 

1,538

 

 

4,829

 

 

61

 

 

483

 

 

1,599

 

 

5,312

 

 

6,911

 

 

(413)

 

2007

 

01/31/2013

 

Electronics and Appliance Stores

 

McAllen

 

TX

 

 

(f)

 

 

1,321

 

 

2,917

 

 

 -

 

 

 -

 

 

1,321

 

 

2,917

 

 

4,238

 

 

(249)

 

2006

 

01/31/2013

 

Electronics and Appliance Stores

 

Mesquite

 

TX

 

 

(f)

 

 

1,795

 

 

5,838

 

 

 -

 

 

 -

 

 

1,795

 

 

5,838

 

 

7,633

 

 

(454)

 

1973

 

01/31/2013

 

Restaurants – Full Service

 

Norcross

 

GA

 

 

(f)

 

 

499

 

 

190

 

 

2

 

 

31

 

 

501

 

 

221

 

 

722

 

 

(30)

 

1999

 

02/05/2013

 

Restaurants – Full Service

 

Norcross

 

GA

 

 

(f)

 

 

687

 

 

351

 

 

5

 

 

92

 

 

692

 

 

443

 

 

1,135

 

 

(58)

 

1996

 

02/05/2013

 

Restaurants – Full Service

 

Stockbridge

 

GA

 

 

(f)

 

 

704

 

 

1,274

 

 

6

 

 

104

 

 

710

 

 

1,378

 

 

2,088

 

 

(169)

 

1996

 

02/05/2013

 

Motion Picture and Video Industries

 

Lewisville

 

TX

 

 

(f)

 

 

1,330

 

 

3,294

 

 

 -

 

 

 -

 

 

1,330

 

 

3,294

 

 

4,624

 

 

(404)

 

1994

 

02/08/2013

 

Restaurants – Limited Service

 

Lehi

 

UT

 

 

(f)

 

 

682

 

 

1,441

 

 

 -

 

 

 -

 

 

682

 

 

1,441

 

 

2,123

 

 

(184)

 

2008

 

02/14/2013

 

Restaurants – Limited Service

 

Charlotte

 

NC

 

 

(f)

 

 

997

 

 

109

 

 

 -

 

 

 -

 

 

997

 

 

109

 

 

1,106

 

 

(22)

 

2005

 

02/27/2013

 

Restaurants – Limited Service

 

Charlotte

 

NC

 

 

(f)

 

 

978

 

 

128

 

 

 -

 

 

 -

 

 

978

 

 

128

 

 

1,106

 

 

(26)

 

2007

 

02/27/2013

 

Restaurants – Limited Service

 

Gastonia

 

NC

 

 

(f)

 

 

703

 

 

244

 

 

 -

 

 

 -

 

 

703

 

 

244

 

 

947

 

 

(46)

 

2004

 

02/27/2013

 

Restaurants – Limited Service

 

Indian Trail

 

NC

 

 

(f)

 

 

830

 

 

78

 

 

 -

 

 

 -

 

 

830

 

 

78

 

 

908

 

 

(16)

 

2003

 

02/27/2013

 

Restaurants – Limited Service

 

Lincolnton

 

NC

 

 

(f)

 

 

572

 

 

60

 

 

 -

 

 

 -

 

 

572

 

 

60

 

 

632

 

 

(11)

 

2005

 

02/27/2013

 

Restaurants – Limited Service

 

Mooresville

 

NC

 

 

(f)

 

 

874

 

 

34

 

 

 -

 

 

 -

 

 

874

 

 

34

 

 

908

 

 

(7)

 

2002

 

02/27/2013

 

Restaurants – Limited Service

 

Morganton

 

NC

 

 

(f)

 

 

703

 

 

28

 

 

 -

 

 

 -

 

 

703

 

 

28

 

 

731

 

 

(6)

 

2003

 

02/27/2013

 

Restaurants – Limited Service

 

Newton

 

NC

 

 

(f)

 

 

594

 

 

403

 

 

 -

 

 

 -

 

 

594

 

 

403

 

 

997

 

 

(84)

 

2002

 

02/27/2013

 

Restaurants – Limited Service

 

Shelby

 

NC

 

 

(f)

 

 

395

 

 

59

 

 

 -

 

 

 -

 

 

395

 

 

59

 

 

454

 

 

(14)

 

2004

 

02/27/2013

 

Home Furnishings Stores

 

Oklahoma City

 

OK

 

 

(f)

 

 

2,898

 

 

5,889

 

 

 -

 

 

 -

 

 

2,898

 

 

5,889

 

 

8,787

 

 

(699)

 

1995

 

03/15/2013

 

Home Furnishings Stores

 

Tulsa

 

OK

 

 

(f)

 

 

3,406

 

 

5,372

 

 

 -

 

 

 -

 

 

3,406

 

 

5,372

 

 

8,778

 

 

(688)

 

1996

 

03/15/2013

 

Health Clubs

 

Olathe

 

KS

 

 

(f)

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

2006

 

03/21/2013

 

Furniture Stores

 

Goodyear

 

AZ

 

 

(f)

 

 

2,112

 

 

4,111

 

 

 -

 

 

 -

 

 

2,112

 

 

4,111

 

 

6,223

 

 

(389)

 

2005

 

03/26/2013

 

Furniture Stores

 

Prescott

 

AZ

 

 

(f)

 

 

1,937

 

 

3,216

 

 

 -

 

 

 -

 

 

1,937

 

 

3,216

 

 

5,153

 

 

(292)

 

2007

 

03/26/2013

 

Foundries

 

Fayetteville

 

AR

 

 

(f)

 

 

968

 

 

2,227

 

 

 -

 

 

 -

 

 

968

 

 

2,227

 

 

3,195

 

 

(209)

 

2005

 

03/28/2013

 

Foundries

 

Harrison

 

AR

 

 

(f)

 

 

224

 

 

1,322

 

 

 -

 

 

 -

 

 

224

 

 

1,322

 

 

1,546

 

 

(139)

 

1998

 

03/28/2013

 

Foundries

 

Harrison

 

AR

 

 

(f)

 

 

920

 

 

2,378

 

 

 -

 

 

 -

 

 

920

 

 

2,378

 

 

3,298

 

 

(348)

 

1950

 

03/28/2013

 

Foundries

 

Harrison

 

AR

 

 

(f)

 

 

211

 

 

1,438

 

 

 -

 

 

 -

 

 

211

 

 

1,438

 

 

1,649

 

 

(147)

 

1988

 

03/28/2013

 

Restaurants – Full Service

 

Arvada

 

CO

 

 

(f)

 

 

860

 

 

1,303

 

 

 -

 

 

 -

 

 

860

 

 

1,303

 

 

2,163

 

 

(138)

 

2001

 

03/28/2013

 

Restaurants – Limited Service

 

Ashland

 

KY

 

 

(f)

 

 

1,224

 

 

1,986

 

 

 -

 

 

 -

 

 

1,224

 

 

1,986

 

 

3,210

 

 

(239)

 

1996

 

03/28/2013

 

Foundries

 

Chelmsford

 

MA

 

 

(f)

 

 

542

 

 

571

 

 

 -

 

 

 -

 

 

542

 

 

571

 

 

1,113

 

 

(164)

 

1963

 

03/28/2013

 

Restaurants – Limited Service

 

Ironwood

 

MI

 

 

(f)

 

 

171

 

 

415

 

 

 -

 

 

 -

 

 

171

 

 

415

 

 

586

 

 

(44)

 

1999

 

03/28/2013

 

Restaurants – Limited Service

 

Ishpeming

 

MI

 

 

(f)

 

 

384

 

 

597

 

 

 -

 

 

 -

 

 

384

 

 

597

 

 

981

 

 

(65)

 

1999

 

03/28/2013

 

Foundries

 

Arden Hills

 

MN

 

 

(f)

 

 

1,176

 

 

1,359

 

 

 -

 

 

 -

 

 

1,176

 

 

1,359

 

 

2,535

 

 

(212)

 

1964

 

03/28/2013

 

Foundries

 

St. Charles

 

MO

 

 

(f)

 

 

988

 

 

825

 

 

163

 

 

1,070

 

 

1,151

 

 

1,895

 

 

3,046

 

 

(113)

 

1995

 

03/28/2013

 

Restaurants – Limited Service

 

Lillington

 

NC

 

 

(f)

 

 

188

 

 

377

 

 

 -

 

 

 -

 

 

188

 

 

377

 

 

565

 

 

(40)

 

1970

 

03/28/2013

 

Foundries

 

Dover

 

NH

 

 

(f)

 

 

1,125

 

 

1,688

 

 

 -

 

 

 -

 

 

1,125

 

 

1,688

 

 

2,813

 

 

(254)

 

1970

 

03/28/2013

 

Restaurants – Limited Service

 

Clayton

 

OH

 

 

(f)

 

 

704

 

 

769

 

 

 -

 

 

 -

 

 

704

 

 

769

 

 

1,473

 

 

(86)

 

2004

 

03/28/2013

 

Foundries

 

Loyalhanna

 

PA

 

 

(f)

 

 

237

 

 

1,928

 

 

650

 

 

 -

 

 

887

 

 

1,928

 

 

2,815

 

 

(179)

 

1989

 

03/28/2013

 

Restaurants – Limited Service

 

Jefferson City

 

TN

 

 

(f)

 

 

450

 

 

440

 

 

 -

 

 

 -

 

 

450

 

 

440

 

 

890

 

 

(48)

 

1988

 

03/28/2013

 

F-8


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Restaurants – Limited Service

 

Manchester

 

TN

 

 

(f)

 

 

478

 

 

420

 

 

172

 

 

290

 

 

650

 

 

710

 

 

1,360

 

 

(84)

 

1980

 

03/28/2013

 

Restaurants – Limited Service

 

Cleburne

 

TX

 

 

(f)

 

 

195

 

 

726

 

 

 -

 

 

 -

 

 

195

 

 

726

 

 

921

 

 

(79)

 

1977

 

03/28/2013

 

Restaurants – Limited Service

 

Houston

 

TX

 

 

(f)

 

 

912

 

 

913

 

 

 -

 

 

 -

 

 

912

 

 

913

 

 

1,825

 

 

(99)

 

1988

 

03/28/2013

 

Restaurants – Limited Service

 

Cross Lanes

 

WV

 

 

(f)

 

 

1,490

 

 

2,067

 

 

 -

 

 

 -

 

 

1,490

 

 

2,067

 

 

3,557

 

 

(270)

 

1999

 

03/28/2013

 

Restaurants – Limited Service

 

Huntington

 

WV

 

 

(f)

 

 

1,042

 

 

2,287

 

 

 -

 

 

 -

 

 

1,042

 

 

2,287

 

 

3,329

 

 

(276)

 

1997

 

03/28/2013

 

Restaurants – Limited Service

 

Parkersburg

 

WV

 

 

(f)

 

 

1,288

 

 

2,428

 

 

 -

 

 

 -

 

 

1,288

 

 

2,428

 

 

3,716

 

 

(291)

 

2004

 

03/28/2013

 

Colleges, Universities, and Professional Schools

 

San Marcos

 

CA

 

 

16,744

 

 

4,528

 

 

22,213

 

 

 -

 

 

 -

 

 

4,528

 

 

22,213

 

 

26,741

 

 

(1,381)

 

2008

 

03/29/2013

 

Other Personal Services

 

Wheat Ridge

 

CO

 

 

(f)

 

 

590

 

 

211

 

 

 -

 

 

 -

 

 

590

 

 

211

 

 

801

 

 

(34)

 

1953

 

03/29/2013

 

Other Personal Services

 

Avon

 

CT

 

 

(f)

 

 

747

 

 

215

 

 

 -

 

 

 -

 

 

747

 

 

215

 

 

962

 

 

(74)

 

1964

 

03/29/2013

 

Other Personal Services

 

Bethany

 

CT

 

 

(f)

 

 

257

 

 

435

 

 

 -

 

 

 -

 

 

257

 

 

435

 

 

692

 

 

(131)

 

1970

 

03/29/2013

 

Restaurants – Full Service

 

Snellville

 

GA

 

 

(f)

 

 

427

 

 

1,005

 

 

4

 

 

65

 

 

431

 

 

1,070

 

 

1,501

 

 

(123)

 

1985

 

03/29/2013

 

Restaurants – Full Service

 

Stone Mountain

 

GA

 

 

(f)

 

 

894

 

 

1,148

 

 

6

 

 

108

 

 

900

 

 

1,256

 

 

2,156

 

 

(145)

 

1984

 

03/29/2013

 

Other Personal Services

 

Prairie View

 

IL

 

 

(f)

 

 

780

 

 

2,415

 

 

 -

 

 

 -

 

 

780

 

 

2,415

 

 

3,195

 

 

(423)

 

1975

 

03/29/2013

 

Other Personal Services

 

Carmel

 

IN

 

 

(f)

 

 

299

 

 

783

 

 

 -

 

 

 -

 

 

299

 

 

783

 

 

1,082

 

 

(121)

 

1984

 

03/29/2013

 

Other Personal Services

 

Boxford

 

MA

 

 

(f)

 

 

1,185

 

 

829

 

 

 -

 

 

 -

 

 

1,185

 

 

829

 

 

2,014

 

 

(243)

 

1955

 

03/29/2013

 

Other Electrical Equipment and Component Manufacturing

 

South Hadley

 

MA

 

 

(f)

 

 

480

 

 

3,832

 

 

 -

 

 

 -

 

 

480

 

 

3,832

 

 

4,312

 

 

(373)

 

1955

 

03/29/2013

 

Other Personal Services

 

Wakefield

 

MA

 

 

(f)

 

 

401

 

 

901

 

 

 -

 

 

 -

 

 

401

 

 

901

 

 

1,302

 

 

(126)

 

1965

 

03/29/2013

 

Other Personal Services

 

Clinton Township

 

MI

 

 

(f)

 

 

511

 

 

451

 

 

 -

 

 

 -

 

 

511

 

 

451

 

 

962

 

 

(84)

 

1977

 

03/29/2013

 

Other Personal Services

 

Cinnaminson

 

NJ

 

 

(f)

 

 

378

 

 

323

 

 

 -

 

 

 -

 

 

378

 

 

323

 

 

701

 

 

(52)

 

1949

 

03/29/2013

 

Other Personal Services

 

Windsor

 

NJ

 

 

(f)

 

 

691

 

 

170

 

 

 -

 

 

 -

 

 

691

 

 

170

 

 

861

 

 

(28)

 

1985

 

03/29/2013

 

Other Personal Services

 

Cincinnati

 

OH

 

 

(f)

 

 

605

 

 

276

 

 

 -

 

 

 -

 

 

605

 

 

276

 

 

881

 

 

(52)

 

1972

 

03/29/2013

 

Other Personal Services

 

Chadds Ford

 

PA

 

 

(f)

 

 

837

 

 

666

 

 

 -

 

 

 -

 

 

837

 

 

666

 

 

1,503

 

 

(101)

 

1979

 

03/29/2013

 

Other Personal Services

 

Houston

 

TX

 

 

(f)

 

 

237

 

 

1,015

 

 

 -

 

 

 -

 

 

237

 

 

1,015

 

 

1,252

 

 

(146)

 

1975

 

03/29/2013

 

Other Personal Services

 

Spring

 

TX

 

 

(f)

 

 

1,828

 

 

3,561

 

 

 -

 

 

 -

 

 

1,828

 

 

3,561

 

 

5,389

 

 

(444)

 

1973

 

03/29/2013

 

Automotive Parts, Accessories, and Tire Stores

 

La Salle

 

IL

 

 

(f)

 

 

1,620

 

 

8,166

 

 

 -

 

 

 -

 

 

1,620

 

 

8,166

 

 

9,786

 

 

(869)

 

1997

 

04/17/2013

 

Restaurants – Full Service

 

Amarillo

 

TX

 

 

(f)

 

 

840

 

 

1,954

 

 

 -

 

 

 -

 

 

840

 

 

1,954

 

 

2,794

 

 

(203)

 

2002

 

05/06/2013

 

Restaurants – Full Service

 

Lubbock

 

TX

 

 

(f)

 

 

766

 

 

1,657

 

 

 -

 

 

 -

 

 

766

 

 

1,657

 

 

2,423

 

 

(184)

 

2004

 

05/06/2013

 

Other Motor Vehicle Dealers

 

Byron

 

GA

 

 

2,744

 

 

1,726

 

 

3,656

 

 

932

 

 

 -

 

 

2,658

 

 

3,656

 

 

6,314

 

 

(503)

 

2007

 

05/16/2013

 

Restaurants – Full Service

 

Clovis

 

NM

 

 

(f)

 

 

253

 

 

787

 

 

 -

 

 

 -

 

 

253

 

 

787

 

 

1,040

 

 

(92)

 

2013

 

05/28/2013

 

Restaurants – Full Service

 

Ruidoso

 

NM

 

 

(f)

 

 

518

 

 

346

 

 

72

 

 

528

 

 

590

 

 

874

 

 

1,464

 

 

(108)

 

1961

 

05/28/2013

 

Restaurants – Full Service

 

Tucumcari

 

NM

 

 

(f)

 

 

130

 

 

508

 

 

12

 

 

188

 

 

142

 

 

696

 

 

838

 

 

(96)

 

1985

 

05/28/2013

 

Restaurants – Full Service

 

Beeville

 

TX

 

 

(f)

 

 

189

 

 

449

 

 

14

 

 

411

 

 

203

 

 

860

 

 

1,063

 

 

(98)

 

1986

 

05/28/2013

 

Restaurants – Full Service

 

Corpus Christi

 

TX

 

 

(f)

 

 

473

 

 

470

 

 

 -

 

 

225

 

 

473

 

 

695

 

 

1,168

 

 

(95)

 

2005

 

05/28/2013

 

Restaurants – Full Service

 

Fort Stockton

 

TX

 

 

(f)

 

 

344

 

 

657

 

 

 -

 

 

12

 

 

344

 

 

669

 

 

1,013

 

 

(102)

 

1978

 

05/28/2013

 

Restaurants – Full Service

 

Lamesa

 

TX

 

 

(f)

 

 

220

 

 

447

 

 

13

 

 

562

 

 

233

 

 

1,009

 

 

1,242

 

 

(133)

 

1978

 

05/28/2013

 

Restaurants – Full Service

 

Cincinnati

 

OH

 

 

(f)

 

 

1,334

 

 

1,669

 

 

 -

 

 

 -

 

 

1,334

 

 

1,669

 

 

3,003

 

 

(174)

 

2007

 

06/04/2013

 

Health Clubs

 

Auburn

 

AL

 

 

(f)

 

 

947

 

 

 -

 

 

 -

 

 

 -

 

 

947

 

 

 -

 

 

947

 

 

 -

 

2007

 

06/14/2013

 

Department Stores

 

Cherokee Village

 

AR

 

 

(f)

 

 

498

 

 

790

 

 

 -

 

 

 -

 

 

498

 

 

790

 

 

1,288

 

 

(99)

 

2011

 

06/14/2013

 

Health Clubs

 

Columbus

 

GA

 

 

(f)

 

 

1,357

 

 

 -

 

 

 -

 

 

 -

 

 

1,357

 

 

 -

 

 

1,357

 

 

 -

 

2006

 

06/14/2013

 

Department Stores

 

Marion

 

IL

 

 

(f)

 

 

614

 

 

668

 

 

 -

 

 

 -

 

 

614

 

 

668

 

 

1,282

 

 

(89)

 

2010

 

06/14/2013

 

Automobile Dealers

 

Michigan City

 

IN

 

 

(f)

 

 

832

 

 

 -

 

 

 -

 

 

 -

 

 

832

 

 

 -

 

 

832

 

 

 -

 

2001

 

06/14/2013

 

Automobile Dealers

 

Portage

 

IN

 

 

(f)

 

 

1,634

 

 

 -

 

 

 -

 

 

 -

 

 

1,634

 

 

 -

 

 

1,634

 

 

 -

 

1998

 

06/14/2013

 

Department Stores

 

Albany

 

KY

 

 

(f)

 

 

396

 

 

1,051

 

 

 -

 

 

 -

 

 

396

 

 

1,051

 

 

1,447

 

 

(128)

 

2010

 

06/14/2013

 

Department Stores

 

Cave City

 

KY

 

 

(f)

 

 

365

 

 

754

 

 

 -

 

 

 -

 

 

365

 

 

754

 

 

1,119

 

 

(98)

 

2010

 

06/14/2013

 

Department Stores

 

Hartford

 

KY

 

 

(f)

 

 

337

 

 

1,066

 

 

 -

 

 

 -

 

 

337

 

 

1,066

 

 

1,403

 

 

(126)

 

2012

 

06/14/2013

 

Department Stores

 

Gautier

 

MS

 

 

(f)

 

 

764

 

 

1,037

 

 

 -

 

 

 -

 

 

764

 

 

1,037

 

 

1,801

 

 

(124)

 

2011

 

06/14/2013

 

Department Stores

 

Leakesville

 

MS

 

 

(f)

 

 

361

 

 

915

 

 

 -

 

 

 -

 

 

361

 

 

915

 

 

1,276

 

 

(113)

 

2012

 

06/14/2013

 

Department Stores

 

Pascagoula

 

MS

 

 

(f)

 

 

646

 

 

995

 

 

 -

 

 

 -

 

 

646

 

 

995

 

 

1,641

 

 

(114)

 

2011

 

06/14/2013

 

Department Stores

 

Purvis

 

MS

 

 

(f)

 

 

417

 

 

901

 

 

 -

 

 

 -

 

 

417

 

 

901

 

 

1,318

 

 

(110)

 

2012

 

06/14/2013

 

Restaurants – Full Service

 

LaVale

 

MD

 

 

(f)

 

 

1,313

 

 

1,629

 

 

 -

 

 

 -

 

 

1,313

 

 

1,629

 

 

2,942

 

 

(168)

 

2005

 

06/27/2013

 

 

F-9


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Child Day Care Services

 

Columbus

 

OH

 

 

(f)

 

 

452

 

 

1,687

 

 

 -

 

 

 -

 

 

452

 

 

1,687

 

 

2,139

 

 

(142)

 

2006

 

06/27/2013

 

Child Day Care Services

 

Columbus

 

OH

 

 

(f)

 

 

253

 

 

943

 

 

 -

 

 

 -

 

 

253

 

 

943

 

 

1,196

 

 

(80)

 

2006

 

06/27/2013

 

Child Day Care Services

 

Delaware

 

OH

 

 

(f)

 

 

1,130

 

 

1,029

 

 

 -

 

 

 -

 

 

1,130

 

 

1,029

 

 

2,159

 

 

(97)

 

2005

 

06/27/2013

 

Child Day Care Services

 

Delaware

 

OH

 

 

(f)

 

 

647

 

 

590

 

 

 -

 

 

 -

 

 

647

 

 

590

 

 

1,237

 

 

(56)

 

2005

 

06/27/2013

 

Child Day Care Services

 

Dublin

 

OH

 

 

(f)

 

 

840

 

 

1,011

 

 

 -

 

 

 -

 

 

840

 

 

1,011

 

 

1,851

 

 

(120)

 

2003

 

06/27/2013

 

Child Day Care Services

 

Hilliard

 

OH

 

 

(f)

 

 

278

 

 

852

 

 

 -

 

 

 -

 

 

278

 

 

852

 

 

1,130

 

 

(75)

 

2003

 

06/27/2013

 

Child Day Care Services

 

Hilliard

 

OH

 

 

(f)

 

 

485

 

 

1,485

 

 

 -

 

 

 -

 

 

485

 

 

1,485

 

 

1,970

 

 

(131)

 

2003

 

06/27/2013

 

Child Day Care Services

 

Marysville

 

OH

 

 

(f)

 

 

237

 

 

949

 

 

 -

 

 

 -

 

 

237

 

 

949

 

 

1,186

 

 

(79)

 

2005

 

06/27/2013

 

Child Day Care Services

 

Marysville

 

OH

 

 

(f)

 

 

424

 

 

1,696

 

 

 -

 

 

 -

 

 

424

 

 

1,696

 

 

2,120

 

 

(141)

 

2005

 

06/27/2013

 

Child Day Care Services

 

Powell

 

OH

 

 

(f)

 

 

735

 

 

2,303

 

 

 -

 

 

 -

 

 

735

 

 

2,303

 

 

3,038

 

 

(203)

 

2004

 

06/27/2013

 

Child Day Care Services

 

Powell

 

OH

 

 

(f)

 

 

286

 

 

895

 

 

 -

 

 

 -

 

 

286

 

 

895

 

 

1,181

 

 

(79)

 

2004

 

06/27/2013

 

Child Day Care Services

 

Westerville

 

OH

 

 

(f)

 

 

315

 

 

918

 

 

 -

 

 

 -

 

 

315

 

 

918

 

 

1,233

 

 

(82)

 

2005

 

06/27/2013

 

Child Day Care Services

 

Westerville

 

OH

 

 

(f)

 

 

550

 

 

1,601

 

 

 -

 

 

 -

 

 

550

 

 

1,601

 

 

2,151

 

 

(143)

 

2005

 

06/27/2013

 

Restaurants – Full Service

 

Midlothian

 

VA

 

 

(f)

 

 

729

 

 

2,037

 

 

 -

 

 

 -

 

 

729

 

 

2,037

 

 

2,766

 

 

(193)

 

1992

 

06/27/2013

 

Restaurants – Full Service

 

Martinsburg

 

WV

 

 

(f)

 

 

1,115

 

 

1,267

 

 

 -

 

 

 -

 

 

1,115

 

 

1,267

 

 

2,382

 

 

(131)

 

1995

 

06/27/2013

 

Other Motor Vehicle Dealers

 

Holiday

 

FL

 

 

(f)

 

 

2,444

 

 

2,723

 

 

912

 

 

20

 

 

3,356

 

 

2,743

 

 

6,099

 

 

(328)

 

1974

 

06/28/2013

 

Other Motor Vehicle Dealers

 

Jacksonville

 

FL

 

 

(f)

 

 

1,758

 

 

2,450

 

 

460

 

 

1,375

 

 

2,218

 

 

3,825

 

 

6,043

 

 

(357)

 

2010

 

06/28/2013

 

Restaurants – Limited Service

 

Charlotte

 

NC

 

 

(f)

 

 

1,545

 

 

2,176

 

 

 -

 

 

 -

 

 

1,545

 

 

2,176

 

 

3,721

 

 

(244)

 

2009

 

06/28/2013

 

Child Day Care Services

 

Maineville

 

OH

 

 

(f)

 

 

685

 

 

1,575

 

 

 -

 

 

 -

 

 

685

 

 

1,575

 

 

2,260

 

 

(170)

 

2008

 

06/28/2013

 

Outpatient Care Centers

 

North Charleston

 

SC

 

 

(f)

 

 

410

 

 

2,356

 

 

 -

 

 

 -

 

 

410

 

 

2,356

 

 

2,766

 

 

(163)

 

2009

 

06/28/2013

 

Restaurants – Limited Service

 

Glen Allen

 

VA

 

 

(f)

 

 

2,184

 

 

 -

 

 

 -

 

 

 -

 

 

2,184

 

 

 -

 

 

2,184

 

 

 -

 

1995

 

06/28/2013

 

Restaurants – Limited Service

 

North Chesterfield

 

VA

 

 

(f)

 

 

1,951

 

 

 -

 

 

 -

 

 

 -

 

 

1,951

 

 

 -

 

 

1,951

 

 

 -

 

1993

 

06/28/2013

 

Restaurants – Full Service

 

Harker Heights

 

TX

 

 

(f)

 

 

860

 

 

149

 

 

577

 

 

1,811

 

 

1,437

 

 

1,960

 

 

3,397

 

 

(129)

 

2014

 

07/09/2013

 

Restaurants – Limited Service

 

Broken Arrow

 

OK

 

 

(f)

 

 

366

 

 

597

 

 

 -

 

 

 -

 

 

366

 

 

597

 

 

963

 

 

(55)

 

2007

 

07/12/2013

 

Restaurants – Limited Service

 

Moore

 

OK

 

 

(f)

 

 

179

 

 

744

 

 

 -

 

 

 -

 

 

179

 

 

744

 

 

923

 

 

(61)

 

2000

 

07/12/2013

 

Restaurants – Limited Service

 

Oklahoma City

 

OK

 

 

(f)

 

 

161

 

 

554

 

 

 -

 

 

 -

 

 

161

 

 

554

 

 

715

 

 

(60)

 

1978

 

07/12/2013

 

Restaurants – Limited Service

 

Oklahoma City

 

OK

 

 

(f)

 

 

400

 

 

473

 

 

 -

 

 

 -

 

 

400

 

 

473

 

 

873

 

 

(54)

 

1998

 

07/12/2013

 

Restaurants – Limited Service

 

Leawood

 

KS

 

 

(f)

 

 

278

 

 

334

 

 

130

 

 

270

 

 

408

 

 

604

 

 

1,012

 

 

(68)

 

1966

 

07/16/2013

 

Restaurants – Full Service

 

Chattanooga

 

TN

 

 

(f)

 

 

1,041

 

 

1,101

 

 

 -

 

 

 -

 

 

1,041

 

 

1,101

 

 

2,142

 

 

(115)

 

1994

 

07/17/2013

 

Restaurants – Full Service

 

Franklin

 

TN

 

 

(f)

 

 

1,641

 

 

1,358

 

 

 -

 

 

 -

 

 

1,641

 

 

1,358

 

 

2,999

 

 

(141)

 

1992

 

07/17/2013

 

Restaurants – Full Service

 

Hermitage

 

TN

 

 

(f)

 

 

1,292

 

 

1,228

 

 

 -

 

 

 -

 

 

1,292

 

 

1,228

 

 

2,520

 

 

(132)

 

1998

 

07/17/2013

 

Restaurants – Full Service

 

Knoxville

 

TN

 

 

(f)

 

 

1,072

 

 

1,169

 

 

 -

 

 

 -

 

 

1,072

 

 

1,169

 

 

2,241

 

 

(124)

 

1986

 

07/17/2013

 

Child Day Care Services

 

Conover

 

NC

 

 

(f)

 

 

250

 

 

644

 

 

 -

 

 

 -

 

 

250

 

 

644

 

 

894

 

 

(64)

 

1985

 

07/26/2013

 

Child Day Care Services

 

Conover

 

NC

 

 

(f)

 

 

257

 

 

780

 

 

 -

 

 

 -

 

 

257

 

 

780

 

 

1,037

 

 

(80)

 

1986

 

07/26/2013

 

Child Day Care Services

 

Dobson

 

NC

 

 

(f)

 

 

73

 

 

413

 

 

 -

 

 

 -

 

 

73

 

 

413

 

 

486

 

 

(42)

 

1996

 

07/26/2013

 

Child Day Care Services

 

Millers Creek

 

NC

 

 

(f)

 

 

219

 

 

321

 

 

 -

 

 

 -

 

 

219

 

 

321

 

 

540

 

 

(48)

 

1997

 

07/26/2013

 

Child Day Care Services

 

Wilson

 

NC

 

 

(f)

 

 

601

 

 

568

 

 

 -

 

 

 -

 

 

601

 

 

568

 

 

1,169

 

 

(59)

 

1987

 

07/26/2013

 

Child Day Care Services

 

Charlottesville

 

VA

 

 

(f)

 

 

708

 

 

328

 

 

 -

 

 

 -

 

 

708

 

 

328

 

 

1,036

 

 

(44)

 

1990

 

07/26/2013

 

Child Day Care Services

 

Charlottesville

 

VA

 

 

(f)

 

 

959

 

 

123

 

 

 -

 

 

 -

 

 

959

 

 

123

 

 

1,082

 

 

(19)

 

1992

 

07/26/2013

 

Restaurants – Limited Service

 

Montgomery

 

AL

 

 

(f)

 

 

1,615

 

 

1,444

 

 

 -

 

 

 -

 

 

1,615

 

 

1,444

 

 

3,059

 

 

(173)

 

2006

 

07/31/2013

 

Restaurants – Full Service

 

Champaign

 

IL

 

 

(f)

 

 

777

 

 

1,640

 

 

 -

 

 

 -

 

 

777

 

 

1,640

 

 

2,417

 

 

(181)

 

1984

 

07/31/2013

 

Restaurants – Full Service

 

Peoria

 

IL

 

 

(f)

 

 

1,122

 

 

1,304

 

 

 -

 

 

 -

 

 

1,122

 

 

1,304

 

 

2,426

 

 

(143)

 

2005

 

07/31/2013

 

Restaurants – Full Service

 

Rockford

 

IL

 

 

(f)

 

 

1,012

 

 

1,643

 

 

 -

 

 

 -

 

 

1,012

 

 

1,643

 

 

2,655

 

 

(152)

 

1992

 

07/31/2013

 

Restaurants – Limited Service

 

Gulfport

 

MS

 

 

(f)

 

 

2,288

 

 

1,674

 

 

 -

 

 

 -

 

 

2,288

 

 

1,674

 

 

3,962

 

 

(188)

 

2008

 

07/31/2013

 

Home Furnishings Stores

 

Centerville

 

OH

 

 

(f)

 

 

341

 

 

948

 

 

 -

 

 

 -

 

 

341

 

 

948

 

 

1,289

 

 

(93)

 

1994

 

08/08/2013

 

Restaurants – Full Service

 

Tempe

 

AZ

 

 

(f)

 

 

1,696

 

 

545

 

 

 -

 

 

 -

 

 

1,696

 

 

545

 

 

2,241

 

 

(156)

 

1988

 

08/13/2013

 

Motion Picture and Video Industries

 

Lubbock

 

TX

 

 

(f)

 

 

1,115

 

 

331

 

 

747

 

 

5,305

 

 

1,862

 

 

5,636

 

 

7,498

 

 

(318)

 

2014

 

08/16/2013

 

Plastics Product Manufacturing

 

Milesburg

 

PA

 

 

(f)

 

 

2,563

 

 

4,327

 

 

 -

 

 

 -

 

 

2,563

 

 

4,327

 

 

6,890

 

 

(737)

 

1970

 

08/23/2013

 

Commercial and Industrial Machinery and Equipment Rental and Leasing

 

Davie

 

FL

 

 

(f)

 

 

2,198

 

 

1,973

 

 

 -

 

 

 -

 

 

2,198

 

 

1,973

 

 

4,171

 

 

(149)

 

1996

 

08/28/2013

 

Commercial and Industrial Machinery and Equipment Rental and Leasing

 

Fort Myers

 

FL

 

 

(f)

 

 

1,384

 

 

4,797

 

 

 -

 

 

 -

 

 

1,384

 

 

4,797

 

 

6,181

 

 

(317)

 

2007

 

08/28/2013

 

 

F-10


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Commercial and Industrial Machinery and Equipment Rental and Leasing

 

Tampa

 

FL

 

 

(f)

 

 

2,063

 

 

4,869

 

 

318

 

 

1,182

 

 

2,381

 

 

6,051

 

 

8,432

 

 

(466)

 

2000

 

08/28/2013

 

Furniture Stores

 

Huntsville

 

AL

 

 

(f)

 

 

1,812

 

 

4,314

 

 

 -

 

 

 -

 

 

1,812

 

 

4,314

 

 

6,126

 

 

(326)

 

1987

 

08/29/2013

 

Furniture Stores

 

Tuscaloosa

 

AL

 

 

(f)

 

 

1,273

 

 

3,856

 

 

 -

 

 

 -

 

 

1,273

 

 

3,856

 

 

5,129

 

 

(245)

 

2007

 

08/29/2013

 

Grocery Stores

 

Houghton

 

MI

 

 

(f)

 

 

1,009

 

 

1,955

 

 

 -

 

 

 -

 

 

1,009

 

 

1,955

 

 

2,964

 

 

(230)

 

1993

 

08/29/2013

 

Restaurants – Full Service

 

Tulsa

 

OK

 

 

(f)

 

 

3,210

 

 

3,773

 

 

20

 

 

826

 

 

3,230

 

 

4,599

 

 

7,829

 

 

(551)

 

1991

 

08/30/2013

 

Outpatient Care Centers

 

Charleston

 

SC

 

 

(f)

 

 

1,005

 

 

1,802

 

 

 -

 

 

 -

 

 

1,005

 

 

1,802

 

 

2,807

 

 

(124)

 

1968

 

08/30/2013

 

Restaurants – Limited Service

 

Athens

 

TN

 

 

(f)

 

 

318

 

 

 -

 

 

 -

 

 

 -

 

 

318

 

 

 -

 

 

318

 

 

 -

 

2005

 

08/30/2013

 

Restaurants – Limited Service

 

Cleveland

 

TN

 

 

(f)

 

 

346

 

 

 -

 

 

 -

 

 

 -

 

 

346

 

 

 -

 

 

346

 

 

 -

 

2001

 

08/30/2013

 

Restaurants – Limited Service

 

Dayton

 

TN

 

 

(f)

 

 

271

 

 

 -

 

 

 -

 

 

 -

 

 

271

 

 

 -

 

 

271

 

 

 -

 

1997

 

08/30/2013

 

Restaurants – Limited Service

 

Kimball

 

TN

 

 

(f)

 

 

271

 

 

 -

 

 

 -

 

 

 -

 

 

271

 

 

 -

 

 

271

 

 

 -

 

1987

 

08/30/2013

 

Restaurants – Limited Service

 

Madisonville

 

TN

 

 

(f)

 

 

243

 

 

 -

 

 

 -

 

 

 -

 

 

243

 

 

 -

 

 

243

 

 

 -

 

2005

 

08/30/2013

 

Home Furnishings Stores

 

Fort Worth

 

TX

 

 

(f)

 

 

3,783

 

 

9,559

 

 

 -

 

 

 -

 

 

3,783

 

 

9,559

 

 

13,342

 

 

(679)

 

1998

 

08/30/2013

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Flint

 

MI

 

 

(f)

 

 

919

 

 

6,382

 

 

 -

 

 

 -

 

 

919

 

 

6,382

 

 

7,301

 

 

(787)

 

1992

 

09/16/2013

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Kentwood

 

MI

 

 

(f)

 

 

1,935

 

 

1,473

 

 

 -

 

 

 -

 

 

1,935

 

 

1,473

 

 

3,408

 

 

(163)

 

1995

 

09/16/2013

 

Restaurants – Limited Service

 

Moncks Corner

 

SC

 

 

(f)

 

 

145

 

 

768

 

 

 -

 

 

 -

 

 

145

 

 

768

 

 

913

 

 

(48)

 

1989

 

09/17/2013

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Peoria

 

IL

 

 

(f)

 

 

850

 

 

2,768

 

 

 -

 

 

 -

 

 

850

 

 

2,768

 

 

3,618

 

 

(183)

 

2001

 

09/18/2013

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Jackson

 

TN

 

 

(f)

 

 

3,437

 

 

4,634

 

 

 -

 

 

 -

 

 

3,437

 

 

4,634

 

 

8,071

 

 

(353)

 

2007

 

09/18/2013

 

Health Clubs

 

Weslaco

 

TX

 

 

(f)

 

 

1,565

 

 

224

 

 

354

 

 

3,020

 

 

1,919

 

 

3,244

 

 

5,163

 

 

(166)

 

2014

 

09/27/2013

 

Consumer Goods Rental

 

Bradenton

 

FL

 

 

(f)

 

 

365

 

 

524

 

 

 -

 

 

 -

 

 

365

 

 

524

 

 

889

 

 

(46)

 

1964

 

09/30/2013

 

Consumer Goods Rental

 

Dade City

 

FL

 

 

(f)

 

 

533

 

 

752

 

 

 -

 

 

 -

 

 

533

 

 

752

 

 

1,285

 

 

(72)

 

1995

 

09/30/2013

 

Consumer Goods Rental

 

Lake City

 

FL

 

 

(f)

 

 

192

 

 

465

 

 

 -

 

 

 -

 

 

192

 

 

465

 

 

657

 

 

(40)

 

1973

 

09/30/2013

 

Consumer Goods Rental

 

Plant City

 

FL

 

 

(f)

 

 

412

 

 

985

 

 

 -

 

 

 -

 

 

412

 

 

985

 

 

1,397

 

 

(90)

 

1979

 

09/30/2013

 

Consumer Goods Rental

 

Tampa

 

FL

 

 

(f)

 

 

752

 

 

4,014

 

 

 -

 

 

 -

 

 

752

 

 

4,014

 

 

4,766

 

 

(339)

 

1967

 

09/30/2013

 

Consumer Goods Rental

 

Tampa

 

FL

 

 

(f)

 

 

139

 

 

457

 

 

 -

 

 

 -

 

 

139

 

 

457

 

 

596

 

 

(40)

 

1967

 

09/30/2013

 

Consumer Goods Rental

 

Tampa

 

FL

 

 

(f)

 

 

347

 

 

380

 

 

 -

 

 

 -

 

 

347

 

 

380

 

 

727

 

 

(41)

 

1999

 

09/30/2013

 

Consumer Goods Rental

 

Adel

 

GA

 

 

(f)

 

 

102

 

 

544

 

 

 -

 

 

 -

 

 

102

 

 

544

 

 

646

 

 

(47)

 

1978

 

09/30/2013

 

Consumer Goods Rental

 

Moultrie

 

GA

 

 

(f)

 

 

142

 

 

1,072

 

 

 -

 

 

 -

 

 

142

 

 

1,072

 

 

1,214

 

 

(88)

 

1960

 

09/30/2013

 

Outpatient Care Centers

 

Ballwin

 

MO

 

 

 

 

 

233

 

 

1,297

 

 

 -

 

 

 -

 

 

233

 

 

1,297

 

 

1,530

 

 

(75)

 

2011

 

09/30/2013

 

Outpatient Care Centers

 

Ballwin

 

MO

 

 

 

 

 

610

 

 

3,390

 

 

 -

 

 

 -

 

 

610

 

 

3,390

 

 

4,000

 

 

(197)

 

2004

 

09/30/2013

 

Family Entertainment Centers

 

Bethlehem

 

PA

 

 

(f)

 

 

2,484

 

 

3,534

 

 

 -

 

 

 -

 

 

2,484

 

 

3,534

 

 

6,018

 

 

(329)

 

1998

 

10/04/2013

 

Fiber, Yarn, and Thread Mills

 

Brownsville

 

TX

 

 

(f)

 

 

547

 

 

1,825

 

 

 -

 

 

 -

 

 

547

 

 

1,825

 

 

2,372

 

 

(175)

 

1997

 

10/08/2013

 

Consumer Goods Rental

 

Auburn

 

WA

 

 

(f)

 

 

236

 

 

835

 

 

 -

 

 

 -

 

 

236

 

 

835

 

 

1,071

 

 

(61)

 

1953

 

10/11/2013

 

Consumer Goods Rental

 

Centralia

 

WA

 

 

(f)

 

 

298

 

 

711

 

 

 -

 

 

 -

 

 

298

 

 

711

 

 

1,009

 

 

(70)

 

1975

 

10/11/2013

 

Consumer Goods Rental

 

Moses Lake

 

WA

 

 

(f)

 

 

451

 

 

569

 

 

 -

 

 

 -

 

 

451

 

 

569

 

 

1,020

 

 

(64)

 

1993

 

10/11/2013

 

Consumer Goods Rental

 

Wenatchee

 

WA

 

 

(f)

 

 

535

 

 

259

 

 

 -

 

 

 -

 

 

535

 

 

259

 

 

794

 

 

(25)

 

2005

 

10/11/2013

 

Restaurants – Full Service

 

Chicago

 

IL

 

 

(f)

 

 

353

 

 

3,103

 

 

 -

 

 

 -

 

 

353

 

 

3,103

 

 

3,456

 

 

(236)

 

1894

 

10/18/2013

 

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing

 

Cranberry Township

 

PA

 

 

(f)

 

 

1,220

 

 

3,513

 

 

 -

 

 

 -

 

 

1,220

 

 

3,513

 

 

4,733

 

 

(430)

 

1998

 

10/25/2013

 

Psychiatric and Substance Abuse Hospitals

 

Jacksonville

 

FL

 

 

(f)

 

 

1,372

 

 

6,666

 

 

1,309

 

 

5,774

 

 

2,681

 

 

12,440

 

 

15,121

 

 

(537)

 

1984

 

10/31/2013

 

Health Clubs

 

San Antonio

 

TX

 

 

(f)

 

 

3,403

 

 

2,796

 

 

 -

 

 

 -

 

 

3,403

 

 

2,796

 

 

6,199

 

 

(201)

 

2013

 

11/04/2013

 

Machinery, Equipment, and Supplies Merchant Wholesalers

 

Williams

 

IA

 

 

(f)

 

 

2,134

 

 

4,245

 

 

 -

 

 

 -

 

 

2,134

 

 

4,245

 

 

6,379

 

 

(473)

 

2013

 

11/08/2013

 

Coating, Engraving, Heat Treating, and Allied Activities

 

Melrose Park

 

IL

 

 

(f)

 

 

1,285

 

 

3,249

 

 

 -

 

 

 -

 

 

1,285

 

 

3,249

 

 

4,534

 

 

(278)

 

1966

 

11/08/2013

 

Coating, Engraving, Heat Treating, and Allied Activities

 

Northlake

 

IL

 

 

(f)

 

 

593

 

 

2,234

 

 

 -

 

 

 -

 

 

593

 

 

2,234

 

 

2,827

 

 

(181)

 

1964

 

11/08/2013

 

Coating, Engraving, Heat Treating, and Allied Activities

 

Northlake

 

IL

 

 

(f)

 

 

770

 

 

1,055

 

 

 -

 

 

 -

 

 

770

 

 

1,055

 

 

1,825

 

 

(111)

 

1958

 

11/08/2013

 

Coating, Engraving, Heat Treating, and Allied Activities

 

Rockford

 

IL

 

 

(f)

 

 

513

 

 

1,211

 

 

 -

 

 

 -

 

 

513

 

 

1,211

 

 

1,724

 

 

(103)

 

1977

 

11/08/2013

 

Coating, Engraving, Heat Treating, and Allied Activities

 

South Bend

 

IN

 

 

(f)

 

 

359

 

 

1,464

 

 

 -

 

 

 -

 

 

359

 

 

1,464

 

 

1,823

 

 

(137)

 

1983

 

11/08/2013

 

Coating, Engraving, Heat Treating, and Allied Activities

 

Benton Harbor

 

MI

 

 

(f)

 

 

659

 

 

1,475

 

 

 -

 

 

 -

 

 

659

 

 

1,475

 

 

2,134

 

 

(155)

 

1957

 

11/08/2013

 

Coating, Engraving, Heat Treating, and Allied Activities

 

Coldwater

 

MI

 

 

(f)

 

 

757

 

 

2,484

 

 

 -

 

 

 -

 

 

757

 

 

2,484

 

 

3,241

 

 

(262)

 

1995

 

11/08/2013

 

Coating, Engraving, Heat Treating, and Allied Activities

 

Kitchener

 

ON

 

 

 

 

 

1,440

 

 

3,296

 

 

 -

 

 

 -

 

 

1,440

 

 

3,296

 

 

4,736

 

 

(271)

 

1975

 

11/08/2013

 

Coating, Engraving, Heat Treating, and Allied Activities

 

St. Marys

 

PA

 

 

(f)

 

 

447

 

 

2,098

 

 

 -

 

 

 -

 

 

447

 

 

2,098

 

 

2,545

 

 

(178)

 

1987

 

11/08/2013

 

Furniture Stores

 

Southaven

 

MS

 

 

(f)

 

 

1,969

 

 

4,553

 

 

 -

 

 

 -

 

 

1,969

 

 

4,553

 

 

6,522

 

 

(278)

 

2007

 

11/12/2013

 

 

F-11


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Furniture Stores

 

Chattanooga

 

TN

 

 

(f)

 

 

2,897

 

 

3,891

 

 

 -

 

 

 -

 

 

2,897

 

 

3,891

 

 

6,788

 

 

(307)

 

1996

 

11/12/2013

 

Furniture Stores

 

Jackson

 

TN

 

 

(f)

 

 

1,956

 

 

3,757

 

 

 -

 

 

 -

 

 

1,956

 

 

3,757

 

 

5,713

 

 

(278)

 

2004

 

11/12/2013

 

Converted Paper Product Manufacturing

 

Green Bay

 

WI

 

 

(f)

 

 

871

 

 

6,889

 

 

 -

 

 

 -

 

 

871

 

 

6,889

 

 

7,760

 

 

(567)

 

1997

 

11/12/2013

 

Converted Paper Product Manufacturing

 

Green Bay

 

WI

 

 

(f)

 

 

795

 

 

4,877

 

 

 -

 

 

 -

 

 

795

 

 

4,877

 

 

5,672

 

 

(591)

 

1968

 

11/12/2013

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Fargo

 

ND

 

 

(f)

 

 

2,024

 

 

7,151

 

 

 -

 

 

 -

 

 

2,024

 

 

7,151

 

 

9,175

 

 

(523)

 

2004

 

11/14/2013

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

College Station

 

TX

 

 

13,507

 

 

4,044

 

 

8,057

 

 

 -

 

 

 -

 

 

4,044

 

 

8,057

 

 

12,101

 

 

(523)

 

2007

 

11/14/2013

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Lubbock

 

TX

 

 

 

 

 

3,264

 

 

6,622

 

 

 -

 

 

 -

 

 

3,264

 

 

6,622

 

 

9,886

 

 

(374)

 

2007

 

11/14/2013

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Gadsden

 

AL

 

 

(f)

 

 

1,849

 

 

299

 

 

297

 

 

4,003

 

 

2,146

 

 

4,302

 

 

6,448

 

 

(212)

 

2014

 

11/15/2013

 

Other Personal Services

 

Charlotte

 

NC

 

 

(f)

 

 

681

 

 

2,905

 

 

 -

 

 

 -

 

 

681

 

 

2,905

 

 

3,586

 

 

(176)

 

2002

 

11/22/2013

 

Restaurants – Full Service

 

Alcoa

 

TN

 

 

(f)

 

 

572

 

 

1,295

 

 

 -

 

 

 -

 

 

572

 

 

1,295

 

 

1,867

 

 

(114)

 

1997

 

11/22/2013

 

Restaurants – Full Service

 

Knoxville

 

TN

 

 

(f)

 

 

861

 

 

2,073

 

 

 -

 

 

 -

 

 

861

 

 

2,073

 

 

2,934

 

 

(190)

 

1995

 

11/22/2013

 

Health Clubs

 

Humble

 

TX

 

 

(f)

 

 

1,209

 

 

2,816

 

 

 -

 

 

 -

 

 

1,209

 

 

2,816

 

 

4,025

 

 

(187)

 

2012

 

11/27/2013

 

Motion Picture and Video Industries

 

Spring Hill

 

TN

 

 

 

 

 

1,976

 

 

180

 

 

1,475

 

 

6,595

 

 

3,451

 

 

6,775

 

 

10,226

 

 

(156)

 

2015

 

12/12/2013

 

Motion Picture and Video Industries

 

Austin

 

TX

 

 

7,242

 

 

3,839

 

 

6,201

 

 

 -

 

 

 -

 

 

3,839

 

 

6,201

 

 

10,040

 

 

(353)

 

2012

 

12/12/2013

 

Restaurants – Full Service

 

Waco

 

TX

 

 

(f)

 

 

888

 

 

123

 

 

654

 

 

2,040

 

 

1,542

 

 

2,163

 

 

3,705

 

 

(138)

 

2014

 

12/12/2013

 

Lumber and Other Construction Materials Merchant Wholesalers

 

Conway

 

SC

 

 

(f)

 

 

1,727

 

 

3,668

 

 

 -

 

 

 -

 

 

1,727

 

 

3,668

 

 

5,395

 

 

(417)

 

2002

 

12/13/2013

 

Outpatient Care Centers

 

Chandler

 

AZ

 

 

(f)

 

 

577

 

 

1,405

 

 

 -

 

 

 -

 

 

577

 

 

1,405

 

 

1,982

 

 

(118)

 

2007

 

12/16/2013

 

Outpatient Care Centers

 

Gilbert

 

AZ

 

 

(f)

 

 

578

 

 

1,335

 

 

 -

 

 

 -

 

 

578

 

 

1,335

 

 

1,913

 

 

(116)

 

2004

 

12/16/2013

 

Restaurants – Full Service

 

Burlington

 

IA

 

 

(f)

 

 

585

 

 

1,571

 

 

 -

 

 

 -

 

 

585

 

 

1,571

 

 

2,156

 

 

(122)

 

2010

 

12/18/2013

 

Restaurants – Full Service

 

Galesburg

 

IL

 

 

(f)

 

 

870

 

 

1,287

 

 

 -

 

 

 -

 

 

870

 

 

1,287

 

 

2,157

 

 

(117)

 

2007

 

12/18/2013

 

Restaurants – Full Service

 

Macomb

 

IL

 

 

(f)

 

 

858

 

 

1,299

 

 

 -

 

 

 -

 

 

858

 

 

1,299

 

 

2,157

 

 

(119)

 

2009

 

12/18/2013

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Cicero

 

NY

 

 

6,569

 

 

1,933

 

 

7,013

 

 

 -

 

 

 -

 

 

1,933

 

 

7,013

 

 

8,946

 

 

(451)

 

2004

 

12/19/2013

 

Health Clubs

 

Denver

 

CO

 

 

(f)

 

 

608

 

 

4,393

 

 

12

 

 

453

 

 

620

 

 

4,846

 

 

5,466

 

 

(375)

 

1997

 

12/30/2013

 

Restaurants – Limited Service

 

Evansville

 

IN

 

 

(f)

 

 

381

 

 

840

 

 

 -

 

 

 -

 

 

381

 

 

840

 

 

1,221

 

 

(76)

 

2005

 

12/30/2013

 

Psychiatric and Substance Abuse Hospitals

 

Knoxville

 

TN

 

 

(f)

 

 

223

 

 

1,508

 

 

 -

 

 

 -

 

 

223

 

 

1,508

 

 

1,731

 

 

(123)

 

1981

 

12/30/2013

 

Psychiatric and Substance Abuse Hospitals

 

Knoxville

 

TN

 

 

(f)

 

 

214

 

 

1,444

 

 

 -

 

 

 -

 

 

214

 

 

1,444

 

 

1,658

 

 

(118)

 

1973

 

12/30/2013

 

Psychiatric and Substance Abuse Hospitals

 

Knoxville

 

TN

 

 

(f)

 

 

72

 

 

485

 

 

 -

 

 

 -

 

 

72

 

 

485

 

 

557

 

 

(40)

 

1989

 

12/30/2013

 

Restaurants – Full Service

 

Houston

 

TX

 

 

(f)

 

 

666

 

 

780

 

 

 -

 

 

 -

 

 

666

 

 

780

 

 

1,446

 

 

(69)

 

2006

 

12/30/2013

 

Restaurants – Full Service

 

Lubbock

 

TX

 

 

(f)

 

 

430

 

 

920

 

 

 -

 

 

 -

 

 

430

 

 

920

 

 

1,350

 

 

(77)

 

2002

 

12/30/2013

 

Restaurants – Limited Service

 

Bristol

 

CT

 

 

(f)

 

 

473

 

 

501

 

 

 -

 

 

 -

 

 

473

 

 

501

 

 

974

 

 

(44)

 

1987

 

12/31/2013

 

Restaurants – Limited Service

 

East Hartford

 

CT

 

 

(f)

 

 

345

 

 

401

 

 

 -

 

 

 -

 

 

345

 

 

401

 

 

746

 

 

(37)

 

1917

 

12/31/2013

 

Restaurants – Limited Service

 

Hamden

 

CT

 

 

(f)

 

 

346

 

 

349

 

 

 -

 

 

 -

 

 

346

 

 

349

 

 

695

 

 

(35)

 

1985

 

12/31/2013

 

Restaurants – Limited Service

 

Hartford

 

CT

 

 

(f)

 

 

270

 

 

395

 

 

 -

 

 

 -

 

 

270

 

 

395

 

 

665

 

 

(28)

 

2009

 

12/31/2013

 

Restaurants – Limited Service

 

Manchester

 

CT

 

 

(f)

 

 

114

 

 

602

 

 

 -

 

 

 -

 

 

114

 

 

602

 

 

716

 

 

(47)

 

1953

 

12/31/2013

 

Restaurants – Limited Service

 

New Britain

 

CT

 

 

(f)

 

 

394

 

 

1,038

 

 

 -

 

 

 -

 

 

394

 

 

1,038

 

 

1,432

 

 

(84)

 

1988

 

12/31/2013

 

Restaurants – Limited Service

 

New Haven

 

CT

 

 

(f)

 

 

231

 

 

613

 

 

 -

 

 

 -

 

 

231

 

 

613

 

 

844

 

 

(48)

 

1982

 

12/31/2013

 

Restaurants – Limited Service

 

Southington

 

CT

 

 

(f)

 

 

678

 

 

376

 

 

 -

 

 

 -

 

 

678

 

 

376

 

 

1,054

 

 

(36)

 

2001

 

12/31/2013

 

Restaurants – Limited Service

 

Torrington

 

CT

 

 

(f)

 

 

401

 

 

495

 

 

 -

 

 

 -

 

 

401

 

 

495

 

 

896

 

 

(32)

 

1993

 

12/31/2013

 

Restaurants – Limited Service

 

Vernon

 

CT

 

 

(f)

 

 

255

 

 

629

 

 

 -

 

 

 -

 

 

255

 

 

629

 

 

884

 

 

(59)

 

1983

 

12/31/2013

 

Restaurants – Limited Service

 

West Hartford

 

CT

 

 

(f)

 

 

316

 

 

917

 

 

 -

 

 

 -

 

 

316

 

 

917

 

 

1,233

 

 

(72)

 

1998

 

12/31/2013

 

Restaurants – Limited Service

 

Wethersfield

 

CT

 

 

(f)

 

 

427

 

 

628

 

 

 -

 

 

 -

 

 

427

 

 

628

 

 

1,055

 

 

(37)

 

2008

 

12/31/2013

 

Restaurants – Limited Service

 

Gainesville

 

FL

 

 

(f)

 

 

220

 

 

376

 

 

 -

 

 

 -

 

 

220

 

 

376

 

 

596

 

 

(37)

 

1980

 

12/31/2013

 

Restaurants – Limited Service

 

Gainesville

 

FL

 

 

(f)

 

 

463

 

 

432

 

 

 -

 

 

 -

 

 

463

 

 

432

 

 

895

 

 

(53)

 

2001

 

12/31/2013

 

Restaurants – Limited Service

 

Middleburg

 

FL

 

 

(f)

 

 

502

 

 

432

 

 

 -

 

 

 -

 

 

502

 

 

432

 

 

934

 

 

(45)

 

2001

 

12/31/2013

 

Restaurants – Limited Service

 

Perry

 

FL

 

 

(f)

 

 

184

 

 

472

 

 

 -

 

 

 -

 

 

184

 

 

472

 

 

656

 

 

(44)

 

1979

 

12/31/2013

 

Restaurants – Limited Service

 

Starke

 

FL

 

 

(f)

 

 

365

 

 

232

 

 

 -

 

 

 -

 

 

365

 

 

232

 

 

597

 

 

(25)

 

1991

 

12/31/2013

 

Other Motor Vehicle Dealers

 

Lake Park

 

GA

 

 

(f)

 

 

2,108

 

 

2,897

 

 

 -

 

 

 -

 

 

2,108

 

 

2,897

 

 

5,005

 

 

(292)

 

2013

 

12/31/2013

 

Other Food Manufacturing

 

South Holland

 

IL

 

 

(f)

 

 

1,373

 

 

14,648

 

 

 -

 

 

 -

 

 

1,373

 

 

14,648

 

 

16,021

 

 

(1,021)

 

1991

 

12/31/2013

 

Restaurants – Full Service

 

Olathe

 

KS

 

 

(f)

 

 

787

 

 

2,119

 

 

 -

 

 

 -

 

 

787

 

 

2,119

 

 

2,906

 

 

(169)

 

2005

 

12/31/2013

 

Restaurants – Full Service

 

Springfield

 

MO

 

 

(f)

 

 

1,684

 

 

5,405

 

 

109

 

 

257

 

 

1,793

 

 

5,662

 

 

7,455

 

 

(424)

 

1977

 

12/31/2013

 

 

F-12


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Semiconductor and Other Electronic Component Manufacturing

 

State College

 

PA

 

 

9,841

 

 

4,398

 

 

11,502

 

 

 -

 

 

 -

 

 

4,398

 

 

11,502

 

 

15,900

 

 

(1,386)

 

1960

 

12/31/2013

 

Elementary and Secondary Schools

 

Arlington

 

TX

 

 

(f)

 

 

744

 

 

5,783

 

 

 -

 

 

 -

 

 

744

 

 

5,783

 

 

6,527

 

 

(326)

 

1945

 

12/31/2013

 

Child Day Care Services

 

Houston

 

TX

 

 

(f)

 

 

706

 

 

2,798

 

 

 -

 

 

 -

 

 

706

 

 

2,798

 

 

3,504

 

 

(161)

 

2003

 

12/31/2013

 

Motion Picture and Video Industries

 

Keller

 

TX

 

 

 

 

 

1,532

 

 

1,720

 

 

1,691

 

 

5,758

 

 

3,223

 

 

7,478

 

 

10,701

 

 

(350)

 

2014

 

12/31/2013

 

Restaurants – Limited Service

 

Buckeye

 

AZ

 

 

(f)

 

 

731

 

 

724

 

 

 -

 

 

 -

 

 

731

 

 

724

 

 

1,455

 

 

(116)

 

1999

 

01/03/2014

 

Restaurants – Limited Service

 

Bullhead City

 

AZ

 

 

(f)

 

 

461

 

 

282

 

 

 -

 

 

 -

 

 

461

 

 

282

 

 

743

 

 

(42)

 

2002

 

01/03/2014

 

Restaurants – Limited Service

 

Cottonwood

 

AZ

 

 

(f)

 

 

503

 

 

611

 

 

 -

 

 

 -

 

 

503

 

 

611

 

 

1,114

 

 

(71)

 

1996

 

01/03/2014

 

Restaurants – Limited Service

 

Golden Valley

 

AZ

 

 

(f)

 

 

316

 

 

206

 

 

 -

 

 

 -

 

 

316

 

 

206

 

 

522

 

 

(32)

 

1998

 

01/03/2014

 

Restaurants – Limited Service

 

Prescott

 

AZ

 

 

(f)

 

 

640

 

 

635

 

 

 -

 

 

 -

 

 

640

 

 

635

 

 

1,275

 

 

(91)

 

1993

 

01/03/2014

 

Restaurants – Limited Service

 

Show Low

 

AZ

 

 

(f)

 

 

603

 

 

882

 

 

 -

 

 

 -

 

 

603

 

 

882

 

 

1,485

 

 

(98)

 

2006

 

01/03/2014

 

Child Day Care Services

 

Alexandria

 

KY

 

 

(f)

 

 

317

 

 

852

 

 

 -

 

 

 -

 

 

317

 

 

852

 

 

1,169

 

 

(67)

 

1997

 

01/03/2014

 

Child Day Care Services

 

Covington

 

KY

 

 

(f)

 

 

240

 

 

989

 

 

 -

 

 

 -

 

 

240

 

 

989

 

 

1,229

 

 

(67)

 

1990

 

01/03/2014

 

Child Day Care Services

 

Crescent Springs

 

KY

 

 

(f)

 

 

205

 

 

692

 

 

 -

 

 

 -

 

 

205

 

 

692

 

 

897

 

 

(59)

 

1990

 

01/03/2014

 

Child Day Care Services

 

Crestview Hills

 

KY

 

 

(f)

 

 

566

 

 

1,862

 

 

 -

 

 

 -

 

 

566

 

 

1,862

 

 

2,428

 

 

(123)

 

2007

 

01/03/2014

 

Child Day Care Services

 

Erlanger

 

KY

 

 

(f)

 

 

295

 

 

1,277

 

 

 -

 

 

 -

 

 

295

 

 

1,277

 

 

1,572

 

 

(96)

 

2000

 

01/03/2014

 

Child Day Care Services

 

Florence

 

KY

 

 

(f)

 

 

418

 

 

1,426

 

 

 -

 

 

 -

 

 

418

 

 

1,426

 

 

1,844

 

 

(109)

 

1992

 

01/03/2014

 

Child Day Care Services

 

Florence

 

KY

 

 

(f)

 

 

289

 

 

699

 

 

 -

 

 

 -

 

 

289

 

 

699

 

 

988

 

 

(64)

 

1988

 

01/03/2014

 

Child Day Care Services

 

Hebron

 

KY

 

 

(f)

 

 

350

 

 

1,555

 

 

 -

 

 

 -

 

 

350

 

 

1,555

 

 

1,905

 

 

(118)

 

1997

 

01/03/2014

 

Child Day Care Services

 

Independence

 

KY

 

 

(f)

 

 

440

 

 

1,141

 

 

 -

 

 

 -

 

 

440

 

 

1,141

 

 

1,581

 

 

(103)

 

2000

 

01/03/2014

 

Child Day Care Services

 

Taylor Mill

 

KY

 

 

(f)

 

 

658

 

 

752

 

 

 -

 

 

 -

 

 

658

 

 

752

 

 

1,410

 

 

(72)

 

1995

 

01/03/2014

 

Child Day Care Services

 

Walton

 

KY

 

 

(f)

 

 

269

 

 

1,253

 

 

 -

 

 

 -

 

 

269

 

 

1,253

 

 

1,522

 

 

(90)

 

1998

 

01/03/2014

 

Other Food Manufacturing

 

Mason City

 

IA

 

 

(f)

 

 

401

 

 

8,703

 

 

 -

 

 

 -

 

 

401

 

 

8,703

 

 

9,104

 

 

(453)

 

2003

 

01/10/2014

 

Gambling Industries

 

Cripple Creek

 

CO

 

 

 

 

 

702

 

 

16,128

 

 

 -

 

 

 -

 

 

702

 

 

16,128

 

 

16,830

 

 

(794)

 

2008

 

01/17/2014

 

Gambling Industries

 

Cripple Creek

 

CO

 

 

 

 

 

212

 

 

588

 

 

 -

 

 

 -

 

 

212

 

 

588

 

 

800

 

 

(62)

 

1993

 

01/17/2014

 

Gambling Industries

 

Cripple Creek

 

CO

 

 

 

 

 

105

 

 

 -

 

 

 -

 

 

1,335

 

 

105

 

 

1,335

 

 

1,440

 

 

 -

 

 

 

01/17/2014

 

Child Day Care Services

 

Jamestown

 

NC

 

 

(f)

 

 

477

 

 

730

 

 

 -

 

 

 -

 

 

477

 

 

730

 

 

1,207

 

 

(79)

 

1989

 

01/24/2014

 

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing

 

Montrose

 

CO

 

 

(f)

 

 

291

 

 

5,521

 

 

 -

 

 

 -

 

 

291

 

 

5,521

 

 

5,812

 

 

(375)

 

1995

 

01/31/2014

 

Health Clubs

 

Louisville

 

KY

 

 

(f)

 

 

2,493

 

 

6,029

 

 

 -

 

 

 -

 

 

2,493

 

 

6,029

 

 

8,522

 

 

(465)

 

1972

 

01/31/2014

 

Health Clubs

 

Lexington

 

KY

 

 

 

 

 

1,164

 

 

8,000

 

 

 -

 

 

 -

 

 

1,164

 

 

8,000

 

 

9,164

 

 

(427)

 

2004

 

01/31/2014

 

Health Clubs

 

Lexington

 

KY

 

 

15,516

 

 

1,251

 

 

6,619

 

 

 -

 

 

 -

 

 

1,251

 

 

6,619

 

 

7,870

 

 

(352)

 

2005

 

01/31/2014

 

Health Clubs

 

Antioch

 

TN

 

 

 

 

 

1,400

 

 

5,388

 

 

 -

 

 

 -

 

 

1,400

 

 

5,388

 

 

6,788

 

 

(328)

 

2002

 

01/31/2014

 

Child Day Care Services

 

Fayetteville

 

AR

 

 

(f)

 

 

465

 

 

1,866

 

 

 -

 

 

 -

 

 

465

 

 

1,866

 

 

2,331

 

 

(117)

 

2012

 

02/14/2014

 

Restaurants – Full Service

 

Eagan

 

MN

 

 

(f)

 

 

1,405

 

 

2,162

 

 

 -

 

 

 -

 

 

1,405

 

 

2,162

 

 

3,567

 

 

(130)

 

1996

 

02/19/2014

 

Restaurants – Full Service

 

Maplewood

 

MN

 

 

(f)

 

 

915

 

 

1,848

 

 

 -

 

 

 -

 

 

915

 

 

1,848

 

 

2,763

 

 

(112)

 

2000

 

02/19/2014

 

Restaurants – Full Service

 

Naperville

 

IL

 

 

 

 

 

2,000

 

 

489

 

 

501

 

 

1,564

 

 

2,501

 

 

2,053

 

 

4,554

 

 

(117)

 

2014

 

03/06/2014

 

Colleges, Universities, and Professional Schools

 

Columbia

 

SC

 

 

 

 

 

562

 

 

11,878

 

 

 -

 

 

810

 

 

562

 

 

12,688

 

 

13,250

 

 

(772)

 

1995

 

03/10/2014

 

Colleges, Universities, and Professional Schools

 

Columbia

 

SC

 

 

 

 

 

638

 

 

5,017

 

 

 -

 

 

 -

 

 

638

 

 

5,017

 

 

5,655

 

 

(313)

 

2010

 

03/10/2014

 

Colleges, Universities, and Professional Schools

 

Columbia

 

SC

 

 

 

 

 

244

 

 

 -

 

 

766

 

 

3,351

 

 

1,010

 

 

3,351

 

 

4,361

 

 

(112)

 

2015

 

03/10/2014

 

Child Day Care Services

 

Alpharetta

 

GA

 

 

(f)

 

 

920

 

 

1,590

 

 

 -

 

 

 -

 

 

920

 

 

1,590

 

 

2,510

 

 

(88)

 

2007

 

03/11/2014

 

Child Day Care Services

 

Cumming

 

GA

 

 

(f)

 

 

826

 

 

3,449

 

 

 -

 

 

 -

 

 

826

 

 

3,449

 

 

4,275

 

 

(177)

 

2006

 

03/11/2014

 

Health Clubs

 

Vestavia Hills

 

AL

 

 

 

 

 

1,299

 

 

6,199

 

 

 -

 

 

 -

 

 

1,299

 

 

6,199

 

 

7,498

 

 

(315)

 

2007

 

03/20/2014

 

Restaurants – Full Service

 

Athens

 

GA

 

 

(f)

 

 

731

 

 

1,065

 

 

 -

 

 

 -

 

 

731

 

 

1,065

 

 

1,796

 

 

(78)

 

2007

 

03/21/2014

 

Restaurants – Full Service

 

Winder

 

GA

 

 

(f)

 

 

752

 

 

1,045

 

 

 -

 

 

 -

 

 

752

 

 

1,045

 

 

1,797

 

 

(55)

 

2005

 

03/21/2014

 

Junior Colleges

 

Overland Park

 

KS

 

 

 

 

 

4,181

 

 

8,942

 

 

 -

 

 

 -

 

 

4,181

 

 

8,942

 

 

13,123

 

 

(411)

 

2012

 

03/21/2014

 

Restaurants – Full Service

 

Lenoir

 

NC

 

 

(f)

 

 

975

 

 

1,065

 

 

 -

 

 

 -

 

 

975

 

 

1,065

 

 

2,040

 

 

(57)

 

2008

 

03/21/2014

 

Restaurants – Full Service

 

Anderson

 

SC

 

 

(f)

 

 

900

 

 

825

 

 

 -

 

 

 -

 

 

900

 

 

825

 

 

1,725

 

 

(66)

 

2006

 

03/21/2014

 

Restaurants – Full Service

 

Camden

 

SC

 

 

(f)

 

 

765

 

 

1,275

 

 

 -

 

 

 -

 

 

765

 

 

1,275

 

 

2,040

 

 

(78)

 

2006

 

03/21/2014

 

Restaurants – Full Service

 

Cheraw

 

SC

 

 

(f)

 

 

626

 

 

947

 

 

 -

 

 

 -

 

 

626

 

 

947

 

 

1,573

 

 

(56)

 

2007

 

03/21/2014

 

Restaurants – Full Service

 

Clinton

 

SC

 

 

(f)

 

 

697

 

 

1,515

 

 

 -

 

 

 -

 

 

697

 

 

1,515

 

 

2,212

 

 

(88)

 

2006

 

03/21/2014

 

Restaurants – Full Service

 

Greenwood

 

SC

 

 

(f)

 

 

808

 

 

1,181

 

 

 -

 

 

 -

 

 

808

 

 

1,181

 

 

1,989

 

 

(93)

 

1995

 

03/21/2014

 

 

F-13


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Restaurants – Full Service

 

Bristol

 

TN

 

 

(f)

 

 

776

 

 

1,020

 

 

 -

 

 

 -

 

 

776

 

 

1,020

 

 

1,796

 

 

(79)

 

2005

 

03/21/2014

 

Restaurants – Full Service

 

Kingsport

 

TN

 

 

(f)

 

 

814

 

 

1,053

 

 

 -

 

 

 -

 

 

814

 

 

1,053

 

 

1,867

 

 

(78)

 

2006

 

03/21/2014

 

Restaurants – Full Service

 

Dublin

 

VA

 

 

(f)

 

 

947

 

 

971

 

 

 -

 

 

 -

 

 

947

 

 

971

 

 

1,918

 

 

(64)

 

2008

 

03/21/2014

 

Restaurants – Limited Service

 

Jacksonville

 

FL

 

 

(f)

 

 

494

 

 

 -

 

 

 -

 

 

 -

 

 

494

 

 

 -

 

 

494

 

 

 -

 

1997

 

03/27/2014

 

Restaurants – Limited Service

 

Miami

 

FL

 

 

(f)

 

 

1,210

 

 

 -

 

 

 -

 

 

 -

 

 

1,210

 

 

 -

 

 

1,210

 

 

 -

 

1981

 

03/27/2014

 

Restaurants – Limited Service

 

Orlando

 

FL

 

 

(f)

 

 

625

 

 

 -

 

 

 -

 

 

 -

 

 

625

 

 

 -

 

 

625

 

 

 -

 

1997

 

03/27/2014

 

Restaurants – Limited Service

 

Tampa

 

FL

 

 

(f)

 

 

474

 

 

 -

 

 

 -

 

 

 -

 

 

474

 

 

 -

 

 

474

 

 

 -

 

1999

 

03/27/2014

 

Restaurants – Limited Service

 

Warner Robins

 

GA

 

 

(f)

 

 

373

 

 

 -

 

 

 -

 

 

 -

 

 

373

 

 

 -

 

 

373

 

 

 -

 

1996

 

03/27/2014

 

Machinery, Equipment, and Supplies Merchant Wholesalers

 

Irving

 

TX

 

 

(f)

 

 

1,375

 

 

4,661

 

 

 -

 

 

 -

 

 

1,375

 

 

4,661

 

 

6,036

 

 

(245)

 

1982

 

03/27/2014

 

Family Entertainment Centers

 

Tempe

 

AZ

 

 

(f)

 

 

3,288

 

 

6,268

 

 

 -

 

 

 -

 

 

3,288

 

 

6,268

 

 

9,556

 

 

(389)

 

2013

 

03/28/2014

 

Restaurants – Limited Service

 

Los Fresnos

 

TX

 

 

(f)

 

 

250

 

 

772

 

 

14

 

 

86

 

 

264

 

 

858

 

 

1,122

 

 

(65)

 

2014

 

03/28/2014

 

Health Clubs

 

Antioch

 

CA

 

 

(f)

 

 

836

 

 

2,724

 

 

 -

 

 

 -

 

 

836

 

 

2,724

 

 

3,560

 

 

(167)

 

1989

 

03/31/2014

 

Health Clubs

 

Monterey

 

CA

 

 

(f)

 

 

868

 

 

2,694

 

 

 -

 

 

 -

 

 

868

 

 

2,694

 

 

3,562

 

 

(184)

 

1978

 

03/31/2014

 

Offices of Physicians

 

Boynton Beach

 

FL

 

 

(f)

 

 

301

 

 

4,727

 

 

 -

 

 

 -

 

 

301

 

 

4,727

 

 

5,028

 

 

(333)

 

2005

 

03/31/2014

 

Offices of Physicians

 

Jupiter

 

FL

 

 

(f)

 

 

158

 

 

4,457

 

 

 -

 

 

 -

 

 

158

 

 

4,457

 

 

4,615

 

 

(235)

 

2011

 

03/31/2014

 

Offices of Physicians

 

Wellington

 

FL

 

 

(f)

 

 

860

 

 

4,652

 

 

 -

 

 

 -

 

 

860

 

 

4,652

 

 

5,512

 

 

(279)

 

2009

 

03/31/2014

 

Converted Paper Product Manufacturing

 

Hattiesburg

 

MS

 

 

(f)

 

 

2,727

 

 

4,045

 

 

 -

 

 

 -

 

 

2,727

 

 

4,045

 

 

6,772

 

 

(274)

 

1982

 

03/31/2014

 

Motor Vehicle Parts Manufacturing

 

Miami

 

OK

 

 

 

 

 

90

 

 

1,157

 

 

731

 

 

1,928

 

 

821

 

 

3,085

 

 

3,906

 

 

(215)

 

1971

 

03/31/2014

 

Child Day Care Services

 

Fort Mill

 

SC

 

 

(f)

 

 

707

 

 

3,271

 

 

 -

 

 

 -

 

 

707

 

 

3,271

 

 

3,978

 

 

(183)

 

2007

 

03/31/2014

 

Other Wood Product Manufacturing

 

Elgin

 

IL

 

 

(f)

 

 

1,374

 

 

714

 

 

 -

 

 

 -

 

 

1,374

 

 

714

 

 

2,088

 

 

(45)

 

1996

 

04/09/2014

 

Other Miscellaneous Manufacturing

 

Bozeman

 

MT

 

 

(f)

 

 

2,127

 

 

348

 

 

 -

 

 

 -

 

 

2,127

 

 

348

 

 

2,475

 

 

(45)

 

1977

 

04/09/2014

 

Other Miscellaneous Manufacturing

 

Nashville

 

TN

 

 

(f)

 

 

4,264

 

 

4,273

 

 

 -

 

 

 -

 

 

4,264

 

 

4,273

 

 

8,537

 

 

(416)

 

1975

 

04/09/2014

 

Offices of Physicians

 

Fort Pierce

 

FL

 

 

(f)

 

 

806

 

 

2,953

 

 

 -

 

 

 -

 

 

806

 

 

2,953

 

 

3,759

 

 

(258)

 

2007

 

04/10/2014

 

Offices of Physicians

 

Palm Beach Gardens

 

FL

 

 

(f)

 

 

43

 

 

1,337

 

 

 -

 

 

 -

 

 

43

 

 

1,337

 

 

1,380

 

 

(78)

 

2005

 

04/10/2014

 

Offices of Physicians

 

Palm Beach Gardens

 

FL

 

 

(f)

 

 

32

 

 

1,288

 

 

 -

 

 

 -

 

 

32

 

 

1,288

 

 

1,320

 

 

(84)

 

2005

 

04/10/2014

 

Offices of Physicians

 

Vero Beach

 

FL

 

 

(f)

 

 

233

 

 

2,529

 

 

 -

 

 

 -

 

 

233

 

 

2,529

 

 

2,762

 

 

(201)

 

2009

 

04/10/2014

 

Offices of Physicians

 

Wellington

 

FL

 

 

(f)

 

 

272

 

 

1,421

 

 

 -

 

 

 -

 

 

272

 

 

1,421

 

 

1,693

 

 

(52)

 

2008

 

04/10/2014

 

Health Clubs

 

Phoenix

 

AZ

 

 

 

 

 

 -

 

 

 -

 

 

1,411

 

 

4,841

 

 

1,411

 

 

4,841

 

 

6,252

 

 

(156)

 

2014

 

04/16/2014

 

Junior Colleges

 

Youngstown

 

OH

 

 

(f)

 

 

471

 

 

5,075

 

 

 -

 

 

1,170

 

 

471

 

 

6,245

 

 

6,716

 

 

(285)

 

1974

 

04/16/2014

 

Health Clubs

 

Live Oak

 

TX

 

 

3,454

 

 

1,266

 

 

4,022

 

 

 -

 

 

 -

 

 

1,266

 

 

4,022

 

 

5,288

 

 

(191)

 

2004

 

04/17/2014

 

Junior Colleges

 

Middletown

 

OH

 

 

(f)

 

 

404

 

 

5,441

 

 

 -

 

 

371

 

 

404

 

 

5,812

 

 

6,216

 

 

(324)

 

1969

 

04/23/2014

 

Child Day Care Services

 

Gastonia

 

NC

 

 

(f)

 

 

184

 

 

1,212

 

 

 -

 

 

 -

 

 

184

 

 

1,212

 

 

1,396

 

 

(75)

 

2003

 

04/25/2014

 

Machinery, Equipment, and Supplies Merchant Wholesalers

 

Rapid City

 

SD

 

 

(f)

 

 

812

 

 

1,211

 

 

 -

 

 

 -

 

 

812

 

 

1,211

 

 

2,023

 

 

(89)

 

1992

 

04/30/2014

 

Offices of Physicians

 

Jupiter

 

FL

 

 

(f)

 

 

742

 

 

5,525

 

 

 -

 

 

 -

 

 

742

 

 

5,525

 

 

6,267

 

 

(284)

 

2007

 

05/02/2014

 

Home Furnishings Stores

 

Columbus

 

OH

 

 

(f)

 

 

753

 

 

1,047

 

 

 -

 

 

 -

 

 

753

 

 

1,047

 

 

1,800

 

 

(60)

 

2014

 

05/07/2014

 

Forging and Stamping

 

Pharr

 

TX

 

 

(f)

 

 

1,343

 

 

1,863

 

 

 -

 

 

 -

 

 

1,343

 

 

1,863

 

 

3,206

 

 

(123)

 

1999

 

05/07/2014

 

Forging and Stamping

 

Clearwater

 

FL

 

 

(f)

 

 

1,529

 

 

6,239

 

 

 -

 

 

 -

 

 

1,529

 

 

6,239

 

 

7,768

 

 

(389)

 

1994

 

05/15/2014

 

Restaurants – Full Service

 

Schaumburg

 

IL

 

 

 

 

 

2,063

 

 

 -

 

 

1,056

 

 

1,623

 

 

3,119

 

 

1,623

 

 

4,742

 

 

(92)

 

2015

 

05/15/2014

 

Child Day Care Services

 

Cincinnati

 

OH

 

 

(f)

 

 

537

 

 

1,765

 

 

 -

 

 

 -

 

 

537

 

 

1,765

 

 

2,302

 

 

(86)

 

2004

 

05/15/2014

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Lake Worth

 

TX

 

 

 

 

 

2,009

 

 

 -

 

 

1,295

 

 

4,642

 

 

3,304

 

 

4,642

 

 

7,946

 

 

(208)

 

2014

 

05/21/2014

 

Machinery, Equipment, and Supplies Merchant Wholesalers

 

Tucson

 

AZ

 

 

(f)

 

 

1,107

 

 

932

 

 

 -

 

 

 -

 

 

1,107

 

 

932

 

 

2,039

 

 

(83)

 

1980

 

05/22/2014

 

Consumer Goods Rental

 

Florence

 

AL

 

 

 

 

 

492

 

 

634

 

 

 -

 

 

 -

 

 

492

 

 

634

 

 

1,126

 

 

(34)

 

2004

 

05/23/2014

 

Other Professional, Scientific, and Technical Services

 

Scottsdale

 

AZ

 

 

(f)

 

 

821

 

 

1,285

 

 

 -

 

 

 -

 

 

821

 

 

1,285

 

 

2,106

 

 

(77)

 

2006

 

05/23/2014

 

Bakeries and Tortilla Manufacturing

 

West Monroe

 

LA

 

 

(f)

 

 

902

 

 

3,827

 

 

 -

 

 

 -

 

 

902

 

 

3,827

 

 

4,729

 

 

(278)

 

2004

 

05/23/2014

 

Consumer Goods Rental

 

Lenoir

 

NC

 

 

 

 

 

548

 

 

578

 

 

 -

 

 

 -

 

 

548

 

 

578

 

 

1,126

 

 

(29)

 

2005

 

05/23/2014

 

Other Professional, Scientific, and Technical Services

 

Waxhaw

 

NC

 

 

(f)

 

 

570

 

 

934

 

 

 -

 

 

 -

 

 

570

 

 

934

 

 

1,504

 

 

(65)

 

1968

 

05/23/2014

 

Consumer Goods Rental

 

Lynchburg

 

VA

 

 

(f)

 

 

259

 

 

865

 

 

 -

 

 

 -

 

 

259

 

 

865

 

 

1,124

 

 

(37)

 

1961

 

05/23/2014

 

Grocery Stores

 

Lodi

 

CA

 

 

 

 

 

1,431

 

 

7,215

 

 

 -

 

 

 -

 

 

1,431

 

 

7,215

 

 

8,646

 

 

(334)

 

2004

 

05/30/2014

 

Machinery, Equipment, and Supplies Merchant Wholesalers

 

Henderson

 

CO

 

 

(f)

 

 

1,283

 

 

1,448

 

 

 -

 

 

 -

 

 

1,283

 

 

1,448

 

 

2,731

 

 

(126)

 

1980

 

05/30/2014

 

Motion Picture and Video Industries

 

Flower Mound

 

TX

 

 

 

 

 

1,860

 

 

442

 

 

927

 

 

7,468

 

 

2,787

 

 

7,910

 

 

10,697

 

 

(151)

 

2015

 

05/30/2014

 

 

F-14


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Other General Purpose Machinery Manufacturing

 

Saltillo

 

MS

 

 

 

 

 

605

 

 

15,409

 

 

 -

 

 

 -

 

 

605

 

 

15,409

 

 

16,014

 

 

(853)

 

1974

 

06/05/2014

 

Restaurants – Full Service

 

Shawnee

 

OK

 

 

(f)

 

 

192

 

 

1,016

 

 

 -

 

 

 -

 

 

192

 

 

1,016

 

 

1,208

 

 

(51)

 

1982

 

06/06/2014

 

Restaurants – Full Service

 

San Antonio

 

TX

 

 

(f)

 

 

1,578

 

 

1,632

 

 

 -

 

 

 -

 

 

1,578

 

 

1,632

 

 

3,210

 

 

(78)

 

2008

 

06/06/2014

 

Forging and Stamping

 

Wickliffe

 

OH

 

 

(f)

 

 

617

 

 

2,725

 

 

 -

 

 

 -

 

 

617

 

 

2,725

 

 

3,342

 

 

(227)

 

1958

 

06/12/2014

 

Other Support Services

 

Mills River

 

NC

 

 

 

 

 

1,027

 

 

2,862

 

 

1,119

 

 

1,255

 

 

2,146

 

 

4,117

 

 

6,263

 

 

(263)

 

2001

 

06/16/2014

 

Child Day Care Services

 

Columbus

 

GA

 

 

(f)

 

 

377

 

 

1,007

 

 

 -

 

 

 -

 

 

377

 

 

1,007

 

 

1,384

 

 

(49)

 

2014

 

06/19/2014

 

Medical Equipment and Supplies Manufacturing

 

Buford

 

GA

 

 

 

 

 

2,680

 

 

24,103

 

 

 -

 

 

 -

 

 

2,680

 

 

24,103

 

 

26,783

 

 

(969)

 

1998

 

06/20/2014

 

Medical Equipment and Supplies Manufacturing

 

Buford

 

GA

 

 

 

 

 

225

 

 

2,681

 

 

 -

 

 

 -

 

 

225

 

 

2,681

 

 

2,906

 

 

(140)

 

1993

 

06/20/2014

 

Support Activities for Air Transportation

 

East Alton

 

IL

 

 

(f)

 

 

1,710

 

 

7,126

 

 

 -

 

 

 -

 

 

1,710

 

 

7,126

 

 

8,836

 

 

(398)

 

1988

 

06/20/2014

 

Medical Equipment and Supplies Manufacturing

 

North Attleboro

 

MA

 

 

 

 

 

1,541

 

 

8,900

 

 

 -

 

 

 -

 

 

1,541

 

 

8,900

 

 

10,441

 

 

(380)

 

1981

 

06/20/2014

 

Foundation, Structure, and Building Exterior Contractors

 

Indian Trail

 

NC

 

 

(f)

 

 

526

 

 

311

 

 

 -

 

 

 -

 

 

526

 

 

311

 

 

837

 

 

(25)

 

1968

 

06/20/2014

 

Foundation, Structure, and Building Exterior Contractors

 

Amarillo

 

TX

 

 

(f)

 

 

269

 

 

457

 

 

 -

 

 

 -

 

 

269

 

 

457

 

 

726

 

 

(18)

 

1954

 

06/20/2014

 

Foundation, Structure, and Building Exterior Contractors

 

Humble

 

TX

 

 

(f)

 

 

269

 

 

467

 

 

 -

 

 

 -

 

 

269

 

 

467

 

 

736

 

 

(28)

 

1982

 

06/20/2014

 

Foundation, Structure, and Building Exterior Contractors

 

Milwaukee

 

WI

 

 

(f)

 

 

515

 

 

3,318

 

 

 -

 

 

 -

 

 

515

 

 

3,318

 

 

3,833

 

 

(183)

 

1968

 

06/20/2014

 

Restaurants – Full Service

 

Calumet City

 

IL

 

 

(f)

 

 

521

 

 

983

 

 

 -

 

 

 -

 

 

521

 

 

983

 

 

1,504

 

 

(61)

 

1983

 

06/23/2014

 

Restaurants – Full Service

 

Lansing

 

IL

 

 

(f)

 

 

406

 

 

877

 

 

 -

 

 

 -

 

 

406

 

 

877

 

 

1,283

 

 

(76)

 

1973

 

06/23/2014

 

Outpatient Care Centers

 

Ballwin

 

MO

 

 

 

 

 

696

 

 

1,814

 

 

 -

 

 

 -

 

 

696

 

 

1,814

 

 

2,510

 

 

(105)

 

1977

 

06/23/2014

 

Iron and Steel Mills and Ferroalloy Manufacturing

 

Peachtree Corners

 

GA

 

 

(f)

 

 

400

 

 

3,768

 

 

 -

 

 

 -

 

 

400

 

 

3,768

 

 

4,168

 

 

(295)

 

1986

 

06/24/2014

 

Restaurants – Full Service

 

Rockford

 

IL

 

 

(f)

 

 

239

 

 

409

 

 

 -

 

 

 -

 

 

239

 

 

409

 

 

648

 

 

(40)

 

1993

 

06/24/2014

 

Restaurants – Full Service

 

Beloit

 

WI

 

 

(f)

 

 

218

 

 

528

 

 

 -

 

 

 -

 

 

218

 

 

528

 

 

746

 

 

(49)

 

1983

 

06/24/2014

 

Restaurants – Full Service

 

Mauston

 

WI

 

 

(f)

 

 

226

 

 

432

 

 

 -

 

 

 -

 

 

226

 

 

432

 

 

658

 

 

(42)

 

2000

 

06/24/2014

 

Restaurants – Full Service

 

Monroe

 

WI

 

 

(f)

 

 

344

 

 

711

 

 

 -

 

 

 -

 

 

344

 

 

711

 

 

1,055

 

 

(55)

 

1977

 

06/24/2014

 

Other Personal Services

 

Lexington

 

KY

 

 

(f)

 

 

943

 

 

1,967

 

 

 -

 

 

 -

 

 

943

 

 

1,967

 

 

2,910

 

 

(93)

 

2005

 

06/25/2014

 

Electrical Equipment Manufacturing

 

Chattanooga

 

TN

 

 

(f)

 

 

1,419

 

 

5,648

 

 

 -

 

 

 -

 

 

1,419

 

 

5,648

 

 

7,067

 

 

(315)

 

1960

 

06/25/2014

 

Warehousing and Storage

 

Perth Amboy

 

NJ

 

 

21,125

 

 

6,396

 

 

23,189

 

 

 -

 

 

 -

 

 

6,396

 

 

23,189

 

 

29,585

 

 

(1,283)

 

1955

 

06/26/2014

 

Child Day Care Services

 

Anderson Township

 

OH

 

 

(f)

 

 

273

 

 

829

 

 

 -

 

 

 -

 

 

273

 

 

829

 

 

1,102

 

 

(55)

 

1995

 

06/26/2014

 

Child Day Care Services

 

Forney

 

TX

 

 

(f)

 

 

511

 

 

2,785

 

 

 -

 

 

 -

 

 

511

 

 

2,785

 

 

3,296

 

 

(109)

 

2004

 

06/26/2014

 

Health Clubs

 

Oakdale

 

CA

 

 

(f)

 

 

1,073

 

 

4,560

 

 

 -

 

 

 -

 

 

1,073

 

 

4,560

 

 

5,633

 

 

(262)

 

1973

 

06/27/2014

 

Other Professional, Scientific, and Technical Services

 

Orlando

 

FL

 

 

(f)

 

 

461

 

 

385

 

 

 -

 

 

 -

 

 

461

 

 

385

 

 

846

 

 

(26)

 

1998

 

06/27/2014

 

Restaurants – Limited Service

 

Saint Martinville

 

LA

 

 

(f)

 

 

264

 

 

921

 

 

 -

 

 

 -

 

 

264

 

 

921

 

 

1,185

 

 

(77)

 

1987

 

06/27/2014

 

Health Clubs

 

Chanhassen

 

MN

 

 

(f)

 

 

511

 

 

2,168

 

 

 -

 

 

 -

 

 

511

 

 

2,168

 

 

2,679

 

 

(91)

 

1999

 

06/27/2014

 

Health Clubs

 

Maple Grove

 

MN

 

 

(f)

 

 

1,372

 

 

1,386

 

 

 -

 

 

 -

 

 

1,372

 

 

1,386

 

 

2,758

 

 

(130)

 

2001

 

06/27/2014

 

Health Clubs

 

Chapel Hill

 

NC

 

 

(f)

 

 

1,198

 

 

1,926

 

 

 -

 

 

105

 

 

1,198

 

 

2,031

 

 

3,229

 

 

(134)

 

2005

 

06/30/2014

 

Health Clubs

 

Hanahan

 

SC

 

 

(f)

 

 

412

 

 

722

 

 

 -

 

 

18

 

 

412

 

 

740

 

 

1,152

 

 

(45)

 

2008

 

06/30/2014

 

Health Clubs

 

Mount Pleasant

 

SC

 

 

(f)

 

 

1,615

 

 

1,943

 

 

 -

 

 

159

 

 

1,615

 

 

2,102

 

 

3,717

 

 

(94)

 

1985

 

06/30/2014

 

Health Clubs

 

Mount Pleasant

 

SC

 

 

(f)

 

 

1,427

 

 

3,281

 

 

 -

 

 

92

 

 

1,427

 

 

3,373

 

 

4,800

 

 

(137)

 

2004

 

06/30/2014

 

Health Clubs

 

Mount Pleasant

 

SC

 

 

(f)

 

 

670

 

 

904

 

 

 -

 

 

 -

 

 

670

 

 

904

 

 

1,574

 

 

(53)

 

1998

 

06/30/2014

 

Health Clubs

 

North Charleston

 

SC

 

 

(f)

 

 

1,618

 

 

800

 

 

 -

 

 

283

 

 

1,618

 

 

1,083

 

 

2,701

 

 

(59)

 

1986

 

06/30/2014

 

Child Day Care Services

 

Colorado Springs

 

CO

 

 

(f)

 

 

855

 

 

1,851

 

 

 -

 

 

13

 

 

855

 

 

1,864

 

 

2,719

 

 

(78)

 

2008

 

07/24/2014

 

Child Day Care Services

 

Loveland

 

CO

 

 

(f)

 

 

629

 

 

1,005

 

 

 -

 

 

21

 

 

629

 

 

1,026

 

 

1,655

 

 

(57)

 

2003

 

07/24/2014

 

Child Day Care Services

 

Cartersville

 

GA

 

 

(f)

 

 

343

 

 

601

 

 

 -

 

 

25

 

 

343

 

 

626

 

 

969

 

 

(36)

 

1997

 

07/24/2014

 

Child Day Care Services

 

Kennesaw

 

GA

 

 

(f)

 

 

557

 

 

714

 

 

 -

 

 

65

 

 

557

 

 

779

 

 

1,336

 

 

(40)

 

1997

 

07/24/2014

 

Child Day Care Services

 

Norcross

 

GA

 

 

(f)

 

 

487

 

 

521

 

 

 -

 

 

 -

 

 

487

 

 

521

 

 

1,008

 

 

(29)

 

1988

 

07/24/2014

 

Child Day Care Services

 

Stockbridge

 

GA

 

 

(f)

 

 

426

 

 

891

 

 

 -

 

 

87

 

 

426

 

 

978

 

 

1,404

 

 

(50)

 

1997

 

07/24/2014

 

Child Day Care Services

 

Tucker

 

GA

 

 

(f)

 

 

450

 

 

585

 

 

 -

 

 

14

 

 

450

 

 

599

 

 

1,049

 

 

(34)

 

1994

 

07/24/2014

 

Child Day Care Services

 

Woodstock

 

GA

 

 

(f)

 

 

537

 

 

299

 

 

 -

 

 

42

 

 

537

 

 

341

 

 

878

 

 

(19)

 

1992

 

07/24/2014

 

Child Day Care Services

 

Charlotte

 

NC

 

 

(f)

 

 

625

 

 

783

 

 

 -

 

 

 -

 

 

625

 

 

783

 

 

1,408

 

 

(47)

 

2001

 

07/24/2014

 

Child Day Care Services

 

Greensboro

 

NC

 

 

(f)

 

 

325

 

 

193

 

 

 -

 

 

33

 

 

325

 

 

226

 

 

551

 

 

(14)

 

1983

 

07/24/2014

 

Child Day Care Services

 

Greensboro

 

NC

 

 

(f)

 

 

628

 

 

244

 

 

 -

 

 

42

 

 

628

 

 

286

 

 

914

 

 

(16)

 

1968

 

07/24/2014

 

Child Day Care Services

 

Greensboro

 

NC

 

 

(f)

 

 

330

 

 

360

 

 

 -

 

 

90

 

 

330

 

 

450

 

 

780

 

 

(21)

 

1970

 

07/24/2014

 

 

F-15


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Child Day Care Services

 

Greensboro

 

NC

 

 

(f)

 

 

500

 

 

300

 

 

 -

 

 

53

 

 

500

 

 

353

 

 

853

 

 

(19)

 

1978

 

07/24/2014

 

Child Day Care Services

 

Greensboro

 

NC

 

 

(f)

 

 

544

 

 

173

 

 

 -

 

 

80

 

 

544

 

 

253

 

 

797

 

 

(14)

 

1981

 

07/24/2014

 

Child Day Care Services

 

Winston Salem

 

NC

 

 

(f)

 

 

519

 

 

362

 

 

 -

 

 

30

 

 

519

 

 

392

 

 

911

 

 

(27)

 

1969

 

07/24/2014

 

Child Day Care Services

 

Winston Salem

 

NC

 

 

(f)

 

 

364

 

 

517

 

 

 -

 

 

69

 

 

364

 

 

586

 

 

950

 

 

(32)

 

1983

 

07/24/2014

 

Child Day Care Services

 

Aiken

 

SC

 

 

(f)

 

 

164

 

 

508

 

 

 -

 

 

7

 

 

164

 

 

515

 

 

679

 

 

(30)

 

1985

 

07/24/2014

 

Child Day Care Services

 

Aiken

 

SC

 

 

(f)

 

 

281

 

 

563

 

 

 -

 

 

 -

 

 

281

 

 

563

 

 

844

 

 

(36)

 

1992

 

07/24/2014

 

Child Day Care Services

 

Duncan

 

SC

 

 

(f)

 

 

428

 

 

326

 

 

 -

 

 

70

 

 

428

 

 

396

 

 

824

 

 

(32)

 

1997

 

07/24/2014

 

Child Day Care Services

 

Florence

 

SC

 

 

(f)

 

 

147

 

 

489

 

 

 -

 

 

2

 

 

147

 

 

491

 

 

638

 

 

(27)

 

1983

 

07/24/2014

 

Child Day Care Services

 

Greenwood

 

SC

 

 

(f)

 

 

317

 

 

183

 

 

 -

 

 

36

 

 

317

 

 

219

 

 

536

 

 

(14)

 

1978

 

07/24/2014

 

Child Day Care Services

 

Greenwood

 

SC

 

 

(f)

 

 

367

 

 

396

 

 

 -

 

 

23

 

 

367

 

 

419

 

 

786

 

 

(26)

 

1984

 

07/24/2014

 

Child Day Care Services

 

Greer

 

SC

 

 

(f)

 

 

125

 

 

633

 

 

 -

 

 

24

 

 

125

 

 

657

 

 

782

 

 

(41)

 

2002

 

07/24/2014

 

Child Day Care Services

 

Mauldin

 

SC

 

 

(f)

 

 

296

 

 

231

 

 

 -

 

 

125

 

 

296

 

 

356

 

 

652

 

 

(16)

 

1981

 

07/24/2014

 

Child Day Care Services

 

North Augusta

 

SC

 

 

(f)

 

 

257

 

 

561

 

 

 -

 

 

55

 

 

257

 

 

616

 

 

873

 

 

(33)

 

1983

 

07/24/2014

 

Child Day Care Services

 

North Charleston

 

SC

 

 

(f)

 

 

272

 

 

300

 

 

 -

 

 

41

 

 

272

 

 

341

 

 

613

 

 

(20)

 

1987

 

07/24/2014

 

Child Day Care Services

 

Spartanburg

 

SC

 

 

(f)

 

 

334

 

 

293

 

 

 -

 

 

7

 

 

334

 

 

300

 

 

634

 

 

(20)

 

1987

 

07/24/2014

 

Child Day Care Services

 

Spartanburg

 

SC

 

 

(f)

 

 

185

 

 

560

 

 

 -

 

 

140

 

 

185

 

 

700

 

 

885

 

 

(30)

 

1973

 

07/24/2014

 

Child Day Care Services

 

Summerville

 

SC

 

 

(f)

 

 

678

 

 

185

 

 

 -

 

 

81

 

 

678

 

 

266

 

 

944

 

 

(15)

 

1984

 

07/24/2014

 

Child Day Care Services

 

Frisco

 

TX

 

 

(f)

 

 

509

 

 

1,253

 

 

 -

 

 

24

 

 

509

 

 

1,277

 

 

1,786

 

 

(50)

 

1996

 

07/24/2014

 

Child Day Care Services

 

Little Elm

 

TX

 

 

(f)

 

 

454

 

 

1,018

 

 

 -

 

 

35

 

 

454

 

 

1,053

 

 

1,507

 

 

(53)

 

1989

 

07/24/2014

 

Boiler, Tank, and Shipping Container Manufacturing

 

Anderson

 

SC

 

 

(f)

 

 

369

 

 

1,015

 

 

 -

 

 

 -

 

 

369

 

 

1,015

 

 

1,384

 

 

(59)

 

1994

 

07/29/2014

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Rothschild

 

WI

 

 

(f)

 

 

2,440

 

 

10,171

 

 

 -

 

 

 -

 

 

2,440

 

 

10,171

 

 

12,611

 

 

(439)

 

2003

 

07/29/2014

 

Drugs and Druggists' Sundries Merchant Wholesalers

 

Knoxville

 

TN

 

 

(f)

 

 

1,421

 

 

7,109

 

 

 -

 

 

 -

 

 

1,421

 

 

7,109

 

 

8,530

 

 

(358)

 

1983

 

07/30/2014

 

Electronics and Appliance Stores

 

Phoenix

 

AZ

 

 

(f)

 

 

3,480

 

 

3,209

 

 

 -

 

 

 -

 

 

3,480

 

 

3,209

 

 

6,689

 

 

(147)

 

1988

 

07/31/2014

 

Electronics and Appliance Stores

 

Colorado Springs

 

CO

 

 

(f)

 

 

2,223

 

 

4,197

 

 

 -

 

 

 -

 

 

2,223

 

 

4,197

 

 

6,420

 

 

(160)

 

1995

 

07/31/2014

 

Motion Picture and Video Industries

 

Berlin

 

CT

 

 

(f)

 

 

2,937

 

 

6,719

 

 

 -

 

 

 -

 

 

2,937

 

 

6,719

 

 

9,656

 

 

(439)

 

1990

 

07/31/2014

 

Lessors of Real Estate

 

Sugar Hill

 

GA

 

 

(f)

 

 

1,658

 

 

4,507

 

 

 -

 

 

 -

 

 

1,658

 

 

4,507

 

 

6,165

 

 

(269)

 

2013

 

07/31/2014

 

Motion Picture and Video Industries

 

Springfield

 

MO

 

 

(f)

 

 

2,299

 

 

7,487

 

 

 -

 

 

 -

 

 

2,299

 

 

7,487

 

 

9,786

 

 

(305)

 

1990

 

07/31/2014

 

Motion Picture and Video Industries

 

Ridgefield Park

 

NJ

 

 

(f)

 

 

44

 

 

10,848

 

 

 -

 

 

 -

 

 

44

 

 

10,848

 

 

10,892

 

 

(516)

 

1991

 

07/31/2014

 

Motion Picture and Video Industries

 

Boerne

 

TX

 

 

(f)

 

 

4,186

 

 

3,413

 

 

 -

 

 

 -

 

 

4,186

 

 

3,413

 

 

7,599

 

 

(268)

 

2013

 

07/31/2014

 

Lessors of Real Estate

 

Corinth

 

TX

 

 

(f)

 

 

2,517

 

 

4,173

 

 

 -

 

 

 -

 

 

2,517

 

 

4,173

 

 

6,690

 

 

(244)

 

2009

 

07/31/2014

 

Lessors of Real Estate

 

Houston

 

TX

 

 

(f)

 

 

2,650

 

 

3,644

 

 

 -

 

 

 -

 

 

2,650

 

 

3,644

 

 

6,294

 

 

(223)

 

2005

 

07/31/2014

 

Electronics and Appliance Stores

 

Lubbock

 

TX

 

 

(f)

 

 

2,220

 

 

4,148

 

 

 -

 

 

 -

 

 

2,220

 

 

4,148

 

 

6,368

 

 

(183)

 

2014

 

07/31/2014

 

Child Day Care Services

 

Monroe

 

NC

 

 

(f)

 

 

753

 

 

1,560

 

 

 -

 

 

 -

 

 

753

 

 

1,560

 

 

2,313

 

 

(81)

 

2000

 

08/08/2014

 

Furniture Stores

 

Portland

 

OR

 

 

 

 

 

1,693

 

 

1,769

 

 

 -

 

 

1,554

 

 

1,693

 

 

3,323

 

 

5,016

 

 

(113)

 

1997

 

08/08/2014

 

Child Day Care Services

 

McDonough

 

GA

 

 

(f)

 

 

310

 

 

812

 

 

 -

 

 

 -

 

 

310

 

 

812

 

 

1,122

 

 

(41)

 

1999

 

08/11/2014

 

Other Professional, Scientific, and Technical Services

 

Tucson

 

AZ

 

 

(f)

 

 

1,200

 

 

5,810

 

 

 -

 

 

 -

 

 

1,200

 

 

5,810

 

 

7,010

 

 

(224)

 

2004

 

08/21/2014

 

Other Professional, Scientific, and Technical Services

 

Baltimore

 

MD

 

 

(f)

 

 

1,235

 

 

1,347

 

 

 -

 

 

 -

 

 

1,235

 

 

1,347

 

 

2,582

 

 

(93)

 

1950

 

08/28/2014

 

Furniture Stores

 

Memphis

 

TN

 

 

(f)

 

 

1,367

 

 

3,771

 

 

 -

 

 

 -

 

 

1,367

 

 

3,771

 

 

5,138

 

 

(142)

 

2005

 

09/02/2014

 

Child Day Care Services

 

Huntersville

 

NC

 

 

(f)

 

 

1,118

 

 

1,718

 

 

 -

 

 

 -

 

 

1,118

 

 

1,718

 

 

2,836

 

 

(65)

 

2006

 

09/05/2014

 

Consumer Goods Rental

 

Immokalee

 

FL

 

 

(f)

 

 

548

 

 

686

 

 

 -

 

 

 -

 

 

548

 

 

686

 

 

1,234

 

 

(27)

 

1999

 

09/09/2014

 

Consumer Goods Rental

 

Lewiston

 

ID

 

 

(f)

 

 

390

 

 

996

 

 

 -

 

 

 -

 

 

390

 

 

996

 

 

1,386

 

 

(56)

 

2008

 

09/10/2014

 

Consumer Goods Rental

 

Hardin

 

MT

 

 

(f)

 

 

45

 

 

513

 

 

 -

 

 

 -

 

 

45

 

 

513

 

 

558

 

 

(34)

 

1920

 

09/10/2014

 

Consumer Goods Rental

 

Moses Lake

 

WA

 

 

(f)

 

 

459

 

 

1,034

 

 

 -

 

 

 -

 

 

459

 

 

1,034

 

 

1,493

 

 

(60)

 

2009

 

09/10/2014

 

Consumer Goods Rental

 

Casper

 

WY

 

 

(f)

 

 

506

 

 

846

 

 

 -

 

 

 -

 

 

506

 

 

846

 

 

1,352

 

 

(49)

 

2009

 

09/10/2014

 

Restaurants – Full Service

 

Chicago

 

IL

 

 

(f)

 

 

25

 

 

2,769

 

 

 -

 

 

 -

 

 

25

 

 

2,769

 

 

2,794

 

 

(123)

 

1926

 

09/15/2014

 

Consumer Goods Rental

 

Puyallup

 

WA

 

 

(f)

 

 

743

 

 

392

 

 

 -

 

 

 -

 

 

743

 

 

392

 

 

1,135

 

 

(33)

 

1982

 

09/16/2014

 

Other Professional, Scientific, and Technical Services

 

Albany

 

GA

 

 

(f)

 

 

176

 

 

438

 

 

 -

 

 

 -

 

 

176

 

 

438

 

 

614

 

 

(23)

 

1974

 

09/17/2014

 

Health Clubs

 

Southaven

 

MS

 

 

(f)

 

 

2,264

 

 

3,039

 

 

 -

 

 

 -

 

 

2,264

 

 

3,039

 

 

5,303

 

 

(176)

 

1999

 

09/18/2014

 

Motion Picture and Video Industries

 

Parker

 

CO

 

 

3,700

 

 

1,773

 

 

4,252

 

 

 -

 

 

 -

 

 

1,773

 

 

4,252

 

 

6,025

 

 

(207)

 

2002

 

09/23/2014

 

Restaurants – Full Service

 

Morristown

 

TN

 

 

(f)

 

 

552

 

 

958

 

 

 -

 

 

 -

 

 

552

 

 

958

 

 

1,510

 

 

(52)

 

1987

 

09/23/2014

 

 

F-16


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Other Ambulatory Health Care Services

 

Birmingham

 

AL

 

 

 

 

 

316

 

 

1,628

 

 

 -

 

 

 -

 

 

316

 

 

1,628

 

 

1,944

 

 

(56)

 

2008

 

09/24/2014

 

Other Ambulatory Health Care Services

 

Glendale

 

AZ

 

 

 

 

 

357

 

 

3,099

 

 

 -

 

 

 -

 

 

357

 

 

3,099

 

 

3,456

 

 

(105)

 

1982

 

09/24/2014

 

Other Ambulatory Health Care Services

 

Glendale

 

AZ

 

 

 

 

 

283

 

 

1,510

 

 

 -

 

 

 -

 

 

283

 

 

1,510

 

 

1,793

 

 

(70)

 

1985

 

09/24/2014

 

Other Ambulatory Health Care Services

 

Council Bluffs

 

IA

 

 

 

 

 

946

 

 

2,010

 

 

 -

 

 

 -

 

 

946

 

 

2,010

 

 

2,956

 

 

(84)

 

2009

 

09/24/2014

 

Other Ambulatory Health Care Services

 

Rexburg

 

ID

 

 

 

 

 

139

 

 

1,204

 

 

 -

 

 

 -

 

 

139

 

 

1,204

 

 

1,343

 

 

(51)

 

1976

 

09/24/2014

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Forest Lake

 

MN

 

 

(f)

 

 

5,403

 

 

7,570

 

 

 -

 

 

 -

 

 

5,403

 

 

7,570

 

 

12,973

 

 

(344)

 

2003

 

09/24/2014

 

Other Ambulatory Health Care Services

 

Cleveland

 

OH

 

 

 

 

 

274

 

 

1,990

 

 

 -

 

 

 -

 

 

274

 

 

1,990

 

 

2,264

 

 

(76)

 

2009

 

09/24/2014

 

Other Ambulatory Health Care Services

 

Fort Worth

 

TX

 

 

 

 

 

1,584

 

 

2,053

 

 

 -

 

 

 -

 

 

1,584

 

 

2,053

 

 

3,637

 

 

(76)

 

2009

 

09/24/2014

 

Other Ambulatory Health Care Services

 

Salt Lake City

 

UT

 

 

 

 

 

543

 

 

649

 

 

 -

 

 

 -

 

 

543

 

 

649

 

 

1,192

 

 

(31)

 

1972

 

09/24/2014

 

Restaurants – Full Service

 

Fort Myers

 

FL

 

 

(f)

 

 

1,373

 

 

1,946

 

 

 -

 

 

 -

 

 

1,373

 

 

1,946

 

 

3,319

 

 

(89)

 

1977

 

09/25/2014

 

Restaurants – Full Service

 

Bangor

 

ME

 

 

(f)

 

 

506

 

 

547

 

 

 -

 

 

 -

 

 

506

 

 

547

 

 

1,053

 

 

(30)

 

2006

 

09/29/2014

 

Restaurants – Full Service

 

Ellsworth

 

ME

 

 

(f)

 

 

249

 

 

552

 

 

 -

 

 

 -

 

 

249

 

 

552

 

 

801

 

 

(39)

 

1979

 

09/29/2014

 

Restaurants – Full Service

 

Farmington

 

ME

 

 

(f)

 

 

365

 

 

648

 

 

 -

 

 

 -

 

 

365

 

 

648

 

 

1,013

 

 

(36)

 

1993

 

09/29/2014

 

Restaurants – Full Service

 

Presque Isle

 

ME

 

 

(f)

 

 

172

 

 

416

 

 

 -

 

 

 -

 

 

172

 

 

416

 

 

588

 

 

(33)

 

1980

 

09/29/2014

 

Restaurants – Full Service

 

Concord

 

NH

 

 

(f)

 

 

563

 

 

359

 

 

 -

 

 

 -

 

 

563

 

 

359

 

 

922

 

 

(29)

 

1973

 

09/29/2014

 

Restaurants – Full Service

 

Dover

 

NH

 

 

(f)

 

 

832

 

 

678

 

 

 -

 

 

 -

 

 

832

 

 

678

 

 

1,510

 

 

(49)

 

1979

 

09/29/2014

 

Restaurants – Full Service

 

Littleton

 

NH

 

 

(f)

 

 

418

 

 

362

 

 

 -

 

 

 -

 

 

418

 

 

362

 

 

780

 

 

(28)

 

1981

 

09/29/2014

 

Restaurants – Full Service

 

Nashua

 

NH

 

 

(f)

 

 

508

 

 

668

 

 

 -

 

 

 -

 

 

508

 

 

668

 

 

1,176

 

 

(35)

 

2006

 

09/29/2014

 

Restaurants – Full Service

 

Galloway

 

NJ

 

 

(f)

 

 

819

 

 

498

 

 

 -

 

 

 -

 

 

819

 

 

498

 

 

1,317

 

 

(37)

 

1991

 

09/29/2014

 

Restaurants – Full Service

 

Bennington

 

VT

 

 

(f)

 

 

480

 

 

482

 

 

 -

 

 

 -

 

 

480

 

 

482

 

 

962

 

 

(36)

 

1998

 

09/29/2014

 

Restaurants – Full Service

 

Rutland

 

VT

 

 

(f)

 

 

475

 

 

346

 

 

 -

 

 

 -

 

 

475

 

 

346

 

 

821

 

 

(26)

 

1983

 

09/29/2014

 

Restaurants – Full Service

 

Eden Prairie

 

MN

 

 

(f)

 

 

1,252

 

 

2,873

 

 

 -

 

 

 -

 

 

1,252

 

 

2,873

 

 

4,125

 

 

(103)

 

1994

 

09/30/2014

 

Machinery, Equipment, and Supplies Merchant Wholesalers

 

Watertown

 

SD

 

 

(f)

 

 

2,425

 

 

7,933

 

 

 -

 

 

 -

 

 

2,425

 

 

7,933

 

 

10,358

 

 

(408)

 

2014

 

09/30/2014

 

Building Material and Supplies Dealers

 

Columbus

 

OH

 

 

(f)

 

 

1,475

 

 

3,704

 

 

 -

 

 

 -

 

 

1,475

 

 

3,704

 

 

5,179

 

 

(296)

 

1994

 

10/03/2014

 

Junior Colleges

 

Warren

 

OH

 

 

(f)

 

 

194

 

 

340

 

 

 -

 

 

966

 

 

194

 

 

1,306

 

 

1,500

 

 

(35)

 

1968

 

10/03/2014

 

Outpatient Care Centers

 

Bentonville

 

AR

 

 

 

 

 

872

 

 

664

 

 

 -

 

 

 -

 

 

872

 

 

664

 

 

1,536

 

 

(48)

 

2014

 

10/22/2014

 

Health Clubs

 

Carmichael

 

CA

 

 

 

 

 

1,301

 

 

3,840

 

 

 -

 

 

 -

 

 

1,301

 

 

3,840

 

 

5,141

 

 

(172)

 

1977

 

10/31/2014

 

Restaurants – Full Service

 

Indianapolis

 

IN

 

 

 

 

 

468

 

 

1,570

 

 

 -

 

 

 -

 

 

468

 

 

1,570

 

 

2,038

 

 

(69)

 

1985

 

10/31/2014

 

Grantmaking and Giving Services

 

Shawnee

 

OK

 

 

 

 

 

624

 

 

1,294

 

 

 -

 

 

 -

 

 

624

 

 

1,294

 

 

1,918

 

 

(55)

 

2011

 

11/12/2014

 

Motion Picture and Video Industries

 

La Vista

 

NE

 

 

 

 

 

807

 

 

251

 

 

504

 

 

7,175

 

 

1,311

 

 

7,426

 

 

8,737

 

 

(37)

 

2015

 

11/14/2014

 

Child Day Care Services

 

Collierville

 

TN

 

 

 

 

 

544

 

 

1,986

 

 

 -

 

 

 -

 

 

544

 

 

1,986

 

 

2,530

 

 

(84)

 

1999

 

11/14/2014

 

Child Day Care Services

 

Collierville

 

TN

 

 

 

 

 

579

 

 

1,316

 

 

 -

 

 

 -

 

 

579

 

 

1,316

 

 

1,895

 

 

(48)

 

2009

 

11/14/2014

 

Furniture Stores

 

Wichita Falls

 

TX

 

 

 

 

 

1,198

 

 

5,038

 

 

 -

 

 

 -

 

 

1,198

 

 

5,038

 

 

6,236

 

 

(155)

 

2006

 

11/19/2014

 

Outpatient Care Centers

 

Battle Creek

 

MI

 

 

 

 

 

593

 

 

777

 

 

 -

 

 

 -

 

 

593

 

 

777

 

 

1,370

 

 

(30)

 

2014

 

11/20/2014

 

Child Day Care Services

 

Stockbridge

 

GA

 

 

 

 

 

206

 

 

315

 

 

 -

 

 

349

 

 

206

 

 

664

 

 

870

 

 

(15)

 

2006

 

11/21/2014

 

Paint, Coating, and Adhesive Manufacturing

 

Grove City

 

OH

 

 

 

 

 

605

 

 

1,207

 

 

 -

 

 

154

 

 

605

 

 

1,361

 

 

1,966

 

 

(44)

 

1979

 

11/25/2014

 

Paint, Coating, and Adhesive Manufacturing

 

Fort Worth

 

TX

 

 

 

 

 

451

 

 

2,513

 

 

 -

 

 

 -

 

 

451

 

 

2,513

 

 

2,964

 

 

(95)

 

1967

 

11/25/2014

 

Restaurants – Full Service

 

Chicago

 

IL

 

 

 

 

 

666

 

 

2,275

 

 

 -

 

 

 -

 

 

666

 

 

2,275

 

 

2,941

 

 

(64)

 

1898

 

11/26/2014

 

Restaurants – Full Service

 

Chicago

 

IL

 

 

 

 

 

1,130

 

 

3,699

 

 

 -

 

 

 -

 

 

1,130

 

 

3,699

 

 

4,829

 

 

(102)

 

1908

 

11/26/2014

 

Restaurants – Full Service

 

Chicago

 

IL

 

 

 

 

 

1,697

 

 

3,360

 

 

 -

 

 

 -

 

 

1,697

 

 

3,360

 

 

5,057

 

 

(96)

 

1892

 

11/26/2014

 

Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers

 

Mechanicsburg

 

PA

 

 

(f)

 

 

9,019

 

 

1,771

 

 

 -

 

 

 -

 

 

9,019

 

 

1,771

 

 

10,790

 

 

(241)

 

1980

 

12/05/2014

 

Restaurants – Limited Service

 

Bessemer

 

AL

 

 

 

 

 

517

 

 

830

 

 

 -

 

 

 -

 

 

517

 

 

830

 

 

1,347

 

 

(37)

 

1994

 

12/10/2014

 

Restaurants – Limited Service

 

Birmingham

 

AL

 

 

 

 

 

334

 

 

764

 

 

 -

 

 

 -

 

 

334

 

 

764

 

 

1,098

 

 

(33)

 

1989

 

12/10/2014

 

Restaurants – Limited Service

 

Birmingham

 

AL

 

 

 

 

 

701

 

 

706

 

 

 -

 

 

 -

 

 

701

 

 

706

 

 

1,407

 

 

(33)

 

1991

 

12/10/2014

 

Restaurants – Limited Service

 

Birmingham

 

AL

 

 

 

 

 

726

 

 

752

 

 

 -

 

 

 -

 

 

726

 

 

752

 

 

1,478

 

 

(35)

 

2002

 

12/10/2014

 

Restaurants – Limited Service

 

Birmingham

 

AL

 

 

 

 

 

566

 

 

841

 

 

 -

 

 

 -

 

 

566

 

 

841

 

 

1,407

 

 

(38)

 

1995

 

12/10/2014

 

Restaurants – Limited Service

 

Decatur

 

AL

 

 

 

 

 

235

 

 

1,012

 

 

 -

 

 

 -

 

 

235

 

 

1,012

 

 

1,247

 

 

(43)

 

1996

 

12/10/2014

 

Restaurants – Limited Service

 

Fairfield

 

AL

 

 

 

 

 

583

 

 

765

 

 

 -

 

 

 -

 

 

583

 

 

765

 

 

1,348

 

 

(34)

 

1995

 

12/10/2014

 

Restaurants – Limited Service

 

Forestdale

 

AL

 

 

 

 

 

559

 

 

769

 

 

 -

 

 

 -

 

 

559

 

 

769

 

 

1,328

 

 

(34)

 

1991

 

12/10/2014

 

Restaurants – Limited Service

 

Gardendale

 

AL

 

 

 

 

 

915

 

 

492

 

 

 -

 

 

 -

 

 

915

 

 

492

 

 

1,407

 

 

(25)

 

1988

 

12/10/2014

 

 

F-17


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Restaurants – Limited Service

 

Hueytown

 

AL

 

 

 

 

 

886

 

 

282

 

 

 -

 

 

 -

 

 

886

 

 

282

 

 

1,168

 

 

(22)

 

1988

 

12/10/2014

 

Restaurants – Limited Service

 

Huntsville

 

AL

 

 

 

 

 

368

 

 

910

 

 

 -

 

 

 -

 

 

368

 

 

910

 

 

1,278

 

 

(38)

 

1976

 

12/10/2014

 

Restaurants – Limited Service

 

Huntsville

 

AL

 

 

 

 

 

404

 

 

873

 

 

 -

 

 

 -

 

 

404

 

 

873

 

 

1,277

 

 

(39)

 

2004

 

12/10/2014

 

Restaurants – Limited Service

 

Madison

 

AL

 

 

 

 

 

511

 

 

756

 

 

 -

 

 

 -

 

 

511

 

 

756

 

 

1,267

 

 

(36)

 

1986

 

12/10/2014

 

Restaurants – Limited Service

 

Madison

 

AL

 

 

 

 

 

468

 

 

1,009

 

 

 -

 

 

 -

 

 

468

 

 

1,009

 

 

1,477

 

 

(47)

 

1999

 

12/10/2014

 

Restaurants – Limited Service

 

Meridianville

 

AL

 

 

 

 

 

598

 

 

1,358

 

 

 -

 

 

 -

 

 

598

 

 

1,358

 

 

1,956

 

 

(59)

 

2001

 

12/10/2014

 

Outpatient Care Centers

 

San Tan Valley

 

AZ

 

 

 

 

 

539

 

 

294

 

 

500

 

 

779

 

 

1,039

 

 

1,073

 

 

2,112

 

 

(30)

 

2015

 

12/11/2014

 

Child Day Care Services

 

Huntsville

 

AL

 

 

 

 

 

298

 

 

1,187

 

 

 -

 

 

 -

 

 

298

 

 

1,187

 

 

1,485

 

 

(48)

 

1994

 

12/12/2014

 

Child Day Care Services

 

Huntsville

 

AL

 

 

 

 

 

694

 

 

1,181

 

 

 -

 

 

 -

 

 

694

 

 

1,181

 

 

1,875

 

 

(47)

 

2003

 

12/12/2014

 

Consumer Goods Rental

 

Jacksonville

 

FL

 

 

(f)

 

 

543

 

 

893

 

 

 -

 

 

 -

 

 

543

 

 

893

 

 

1,436

 

 

(43)

 

2014

 

12/12/2014

 

Consumer Goods Rental

 

Jacksonville

 

FL

 

 

(f)

 

 

594

 

 

1,276

 

 

 -

 

 

 -

 

 

594

 

 

1,276

 

 

1,870

 

 

(54)

 

2014

 

12/12/2014

 

Psychiatric and Substance Abuse Hospitals

 

Las Vegas

 

NV

 

 

 

 

 

147

 

 

252

 

 

 -

 

 

 -

 

 

147

 

 

252

 

 

399

 

 

(10)

 

2003

 

12/12/2014

 

Psychiatric and Substance Abuse Hospitals

 

Las Vegas

 

NV

 

 

 

 

 

139

 

 

280

 

 

 -

 

 

 -

 

 

139

 

 

280

 

 

419

 

 

(13)

 

1975

 

12/12/2014

 

Psychiatric and Substance Abuse Hospitals

 

Las Vegas

 

NV

 

 

 

 

 

107

 

 

351

 

 

 -

 

 

 -

 

 

107

 

 

351

 

 

458

 

 

(13)

 

1987

 

12/12/2014

 

Psychiatric and Substance Abuse Hospitals

 

Las Vegas

 

NV

 

 

 

 

 

165

 

 

194

 

 

 -

 

 

 -

 

 

165

 

 

194

 

 

359

 

 

(10)

 

1980

 

12/12/2014

 

Psychiatric and Substance Abuse Hospitals

 

Las Vegas

 

NV

 

 

 

 

 

194

 

 

255

 

 

 -

 

 

 -

 

 

194

 

 

255

 

 

449

 

 

(14)

 

1982

 

12/12/2014

 

Psychiatric and Substance Abuse Hospitals

 

Las Vegas

 

NV

 

 

 

 

 

183

 

 

256

 

 

 -

 

 

 -

 

 

183

 

 

256

 

 

439

 

 

(14)

 

1981

 

12/12/2014

 

Psychiatric and Substance Abuse Hospitals

 

Las Vegas

 

NV

 

 

 

 

 

269

 

 

180

 

 

 -

 

 

 -

 

 

269

 

 

180

 

 

449

 

 

(15)

 

1977

 

12/12/2014

 

Psychiatric and Substance Abuse Hospitals

 

Las Vegas

 

NV

 

 

 

 

 

162

 

 

197

 

 

 -

 

 

 -

 

 

162

 

 

197

 

 

359

 

 

(11)

 

1983

 

12/12/2014

 

Psychiatric and Substance Abuse Hospitals

 

Las Vegas

 

NV

 

 

 

 

 

1,408

 

 

2,891

 

 

 -

 

 

 -

 

 

1,408

 

 

2,891

 

 

4,299

 

 

(121)

 

1990

 

12/12/2014

 

Restaurants – Limited Service

 

Boise

 

ID

 

 

 

 

 

670

 

 

 -

 

 

 -

 

 

 -

 

 

670

 

 

 -

 

 

670

 

 

 -

 

2000

 

12/15/2014

 

Restaurants – Limited Service

 

Boise

 

ID

 

 

 

 

 

610

 

 

 -

 

 

 -

 

 

 -

 

 

610

 

 

 -

 

 

610

 

 

 -

 

2003

 

12/15/2014

 

Restaurants – Limited Service

 

Emmett

 

ID

 

 

 

 

 

350

 

 

 -

 

 

 -

 

 

 -

 

 

350

 

 

 -

 

 

350

 

 

 -

 

2006

 

12/15/2014

 

Restaurants – Limited Service

 

Garden City

 

ID

 

 

 

 

 

410

 

 

 -

 

 

 -

 

 

 -

 

 

410

 

 

 -

 

 

410

 

 

 -

 

2005

 

12/15/2014

 

Restaurants – Limited Service

 

Meridian

 

ID

 

 

 

 

 

490

 

 

 -

 

 

 -

 

 

 -

 

 

490

 

 

 -

 

 

490

 

 

 -

 

2003

 

12/15/2014

 

Restaurants – Limited Service

 

Nampa

 

ID

 

 

 

 

 

480

 

 

 -

 

 

 -

 

 

 -

 

 

480

 

 

 -

 

 

480

 

 

 -

 

2006

 

12/15/2014

 

Restaurants – Limited Service

 

Nampa

 

ID

 

 

 

 

 

410

 

 

 -

 

 

 -

 

 

 -

 

 

410

 

 

 -

 

 

410

 

 

 -

 

2006

 

12/15/2014

 

Restaurants – Full Service

 

Chicago

 

IL

 

 

 

 

 

2,298

 

 

2,425

 

 

 -

 

 

 -

 

 

2,298

 

 

2,425

 

 

4,723

 

 

(68)

 

1911

 

12/15/2014

 

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing

 

Greenfield

 

MA

 

 

 

 

 

655

 

 

5,499

 

 

 -

 

 

 -

 

 

655

 

 

5,499

 

 

6,154

 

 

(190)

 

1999

 

12/16/2014

 

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing

 

Greenfield

 

MA

 

 

 

 

 

300

 

 

1,831

 

 

 -

 

 

 -

 

 

300

 

 

1,831

 

 

2,131

 

 

(66)

 

1989

 

12/16/2014

 

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing

 

Greenfield

 

MA

 

 

 

 

 

195

 

 

1,406

 

 

 -

 

 

 -

 

 

195

 

 

1,406

 

 

1,601

 

 

(51)

 

1986

 

12/16/2014

 

Health and Personal Care Stores

 

Elizabethtown

 

NY

 

 

 

 

 

89

 

 

2,305

 

 

 -

 

 

 -

 

 

89

 

 

2,305

 

 

2,394

 

 

(77)

 

1972

 

12/16/2014

 

Health and Personal Care Stores

 

Syracuse

 

NY

 

 

 

 

 

357

 

 

1,610

 

 

 -

 

 

 -

 

 

357

 

 

1,610

 

 

1,967

 

 

(57)

 

1986

 

12/16/2014

 

Foundation, Structure, and Building Exterior Contractors

 

Chandler

 

AZ

 

 

 

 

 

1,884

 

 

6,218

 

 

 -

 

 

 -

 

 

1,884

 

 

6,218

 

 

8,102

 

 

(157)

 

2010

 

12/17/2014

 

Outpatient Care Centers

 

Jackson

 

MI

 

 

 

 

 

490

 

 

1,290

 

 

 -

 

 

 -

 

 

490

 

 

1,290

 

 

1,780

 

 

(42)

 

2014

 

12/18/2014

 

Restaurants – Full Service

 

Woodbury

 

MN

 

 

 

 

 

2,758

 

 

2,275

 

 

 -

 

 

 -

 

 

2,758

 

 

2,275

 

 

5,033

 

 

(71)

 

2008

 

12/18/2014

 

Restaurants – Full Service

 

Portage

 

IN

 

 

 

 

 

1,406

 

 

2,351

 

 

 -

 

 

 -

 

 

1,406

 

 

2,351

 

 

3,757

 

 

(73)

 

2007

 

12/19/2014

 

Motion Picture and Video Industries

 

Nicholasville

 

KY

 

 

 

 

 

4,505

 

 

3,506

 

 

 -

 

 

4,540

 

 

4,505

 

 

8,046

 

 

12,551

 

 

(118)

 

2005

 

12/19/2014

 

Restaurants – Full Service

 

Bakersfield

 

CA

 

 

 

 

 

923

 

 

3,686

 

 

 -

 

 

 -

 

 

923

 

 

3,686

 

 

4,609

 

 

(138)

 

1986

 

12/22/2014

 

Restaurants – Full Service

 

Albemarle

 

NC

 

 

 

 

 

419

 

 

482

 

 

 -

 

 

 -

 

 

419

 

 

482

 

 

901

 

 

(26)

 

1998

 

12/22/2014

 

Restaurants – Full Service

 

Kernersville

 

NC

 

 

 

 

 

281

 

 

430

 

 

 -

 

 

 -

 

 

281

 

 

430

 

 

711

 

 

(22)

 

1995

 

12/22/2014

 

Restaurants – Full Service

 

Lenior

 

NC

 

 

 

 

 

537

 

 

454

 

 

 -

 

 

 -

 

 

537

 

 

454

 

 

991

 

 

(28)

 

1997

 

12/22/2014

 

Restaurants – Full Service

 

Mt. Airy

 

NC

 

 

 

 

 

331

 

 

450

 

 

 -

 

 

 -

 

 

331

 

 

450

 

 

781

 

 

(26)

 

1996

 

12/22/2014

 

Restaurants – Full Service

 

Sanford

 

NC

 

 

 

 

 

323

 

 

479

 

 

 -

 

 

 -

 

 

323

 

 

479

 

 

802

 

 

(26)

 

1997

 

12/22/2014

 

Grocery Stores

 

Hot Springs Village

 

AR

 

 

 

 

 

362

 

 

1,299

 

 

 -

 

 

36

 

 

362

 

 

1,335

 

 

1,697

 

 

(67)

 

1991

 

12/23/2014

 

Grocery Stores

 

Redfield

 

AR

 

 

 

 

 

415

 

 

333

 

 

 -

 

 

60

 

 

415

 

 

393

 

 

808

 

 

(29)

 

1999

 

12/23/2014

 

Child Day Care Services

 

Bremen

 

GA

 

 

 

 

 

550

 

 

488

 

 

 -

 

 

 -

 

 

550

 

 

488

 

 

1,038

 

 

(23)

 

2005

 

12/23/2014

 

Child Day Care Services

 

McDonough

 

GA

 

 

 

 

 

1,826

 

 

748

 

 

 -

 

 

165

 

 

1,826

 

 

913

 

 

2,739

 

 

(33)

 

2006

 

12/23/2014

 

Child Day Care Services

 

Villa Rica

 

GA

 

 

 

 

 

665

 

 

792

 

 

 -

 

 

 -

 

 

665

 

 

792

 

 

1,457

 

 

(30)

 

2004

 

12/23/2014

 

Child Day Care Services

 

Villa Rica

 

GA

 

 

 

 

 

855

 

 

783

 

 

 -

 

 

250

 

 

855

 

 

1,033

 

 

1,888

 

 

(31)

 

1999

 

12/23/2014

 

 

F-18


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Child Day Care Services

 

Elkin

 

NC

 

 

 

 

 

278

 

 

768

 

 

 -

 

 

 -

 

 

278

 

 

768

 

 

1,046

 

 

(38)

 

1995

 

12/23/2014

 

Child Day Care Services

 

Greensboro

 

NC

 

 

 

 

 

725

 

 

421

 

 

 -

 

 

 -

 

 

725

 

 

421

 

 

1,146

 

 

(19)

 

1994

 

12/23/2014

 

Child Day Care Services

 

High Point

 

NC

 

 

 

 

 

462

 

 

733

 

 

 -

 

 

 -

 

 

462

 

 

733

 

 

1,195

 

 

(33)

 

1996

 

12/23/2014

 

Child Day Care Services

 

King

 

NC

 

 

 

 

 

313

 

 

882

 

 

 -

 

 

 -

 

 

313

 

 

882

 

 

1,195

 

 

(35)

 

2008

 

12/23/2014

 

Child Day Care Services

 

Mount Airy

 

NC

 

 

 

 

 

176

 

 

820

 

 

 -

 

 

 -

 

 

176

 

 

820

 

 

996

 

 

(34)

 

1999

 

12/23/2014

 

Child Day Care Services

 

Mount Airy

 

NC

 

 

 

 

 

260

 

 

737

 

 

 -

 

 

 -

 

 

260

 

 

737

 

 

997

 

 

(29)

 

2006

 

12/23/2014

 

Child Day Care Services

 

Mount Airy

 

NC

 

 

 

 

 

207

 

 

739

 

 

 -

 

 

 -

 

 

207

 

 

739

 

 

946

 

 

(30)

 

1995

 

12/23/2014

 

Other Miscellaneous Manufacturing

 

Utica

 

NY

 

 

 

 

 

102

 

 

988

 

 

 -

 

 

 -

 

 

102

 

 

988

 

 

1,090

 

 

(34)

 

1965

 

12/23/2014

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

North Canton

 

OH

 

 

 

 

 

1,574

 

 

6,043

 

 

 -

 

 

 -

 

 

1,574

 

 

6,043

 

 

7,617

 

 

(234)

 

1989

 

12/23/2014

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Springfield

 

OH

 

 

 

 

 

1,983

 

 

2,437

 

 

 -

 

 

 -

 

 

1,983

 

 

2,437

 

 

4,420

 

 

(101)

 

1984

 

12/23/2014

 

Other Miscellaneous Manufacturing

 

Warrensville Heights

 

OH

 

 

 

 

 

842

 

 

767

 

 

 -

 

 

 -

 

 

842

 

 

767

 

 

1,609

 

 

(30)

 

1982

 

12/23/2014

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Monroeville

 

PA

 

 

 

 

 

1,621

 

 

6,552

 

 

 -

 

 

 -

 

 

1,621

 

 

6,552

 

 

8,173

 

 

(264)

 

1977

 

12/23/2014

 

Other Miscellaneous Manufacturing

 

Cookeville

 

TN

 

 

 

 

 

797

 

 

3,689

 

 

 -

 

 

 -

 

 

797

 

 

3,689

 

 

4,486

 

 

(128)

 

1973

 

12/23/2014

 

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing

 

Paris

 

IL

 

 

 

 

 

2,022

 

 

4,907

 

 

 -

 

 

 -

 

 

2,022

 

 

4,907

 

 

6,929

 

 

(273)

 

1993

 

12/29/2014

 

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing

 

Hazle Township

 

PA

 

 

 

 

 

1,400

 

 

6,260

 

 

 -

 

 

 -

 

 

1,400

 

 

6,260

 

 

7,660

 

 

(333)

 

1998

 

12/29/2014

 

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing

 

Manchester

 

PA

 

 

 

 

 

1,489

 

 

5,911

 

 

 -

 

 

 -

 

 

1,489

 

 

5,911

 

 

7,400

 

 

(206)

 

1985

 

12/29/2014

 

Colleges, Universities, and Professional Schools

 

Austin

 

TX

 

 

 

 

 

1,721

 

 

7,175

 

 

 -

 

 

 -

 

 

1,721

 

 

7,175

 

 

8,896

 

 

(185)

 

2012

 

12/29/2014

 

Freight Transportation Arrangement

 

Cartersville

 

GA

 

 

 

 

 

1,119

 

 

6,093

 

 

 -

 

 

 -

 

 

1,119

 

 

6,093

 

 

7,212

 

 

(234)

 

2000

 

12/31/2014

 

Other Professional, Scientific, and Technical Services

 

Elmwood Park

 

IL

 

 

(f)

 

 

258

 

 

1,027

 

 

 -

 

 

 -

 

 

258

 

 

1,027

 

 

1,285

 

 

(52)

 

1960

 

12/31/2014

 

Freight Transportation Arrangement

 

Spartanburg

 

SC

 

 

 

 

 

1,698

 

 

8,619

 

 

 -

 

 

 -

 

 

1,698

 

 

8,619

 

 

10,317

 

 

(319)

 

1997

 

12/31/2014

 

Restaurants – Full Service

 

Anderson

 

SC

 

 

 

 

 

1,161

 

 

1,134

 

 

 -

 

 

 -

 

 

1,161

 

 

1,134

 

 

2,295

 

 

(47)

 

1997

 

01/05/2015

 

Health Clubs

 

Eden Prairie

 

MN

 

 

 

 

 

1,466

 

 

3,073

 

 

 -

 

 

 -

 

 

1,466

 

 

3,073

 

 

4,539

 

 

(171)

 

1974

 

01/09/2015

 

Health Clubs

 

Danvers

 

MA

 

 

 

 

 

1,588

 

 

3,552

 

 

 -

 

 

 -

 

 

1,588

 

 

3,552

 

 

5,140

 

 

(188)

 

1974

 

01/14/2015

 

Family Entertainment Centers

 

San Diego

 

CA

 

 

 

 

 

351

 

 

10,144

 

 

 -

 

 

 -

 

 

351

 

 

10,144

 

 

10,495

 

 

(348)

 

2001

 

01/15/2015

 

Child Day Care Services

 

Wentzville

 

MO

 

 

 

 

 

740

 

 

2,229

 

 

 -

 

 

 -

 

 

740

 

 

2,229

 

 

2,969

 

 

(60)

 

2006

 

01/23/2015

 

Child Day Care Services

 

Cedar Park

 

TX

 

 

 

 

 

1,482

 

 

3,346

 

 

 -

 

 

 -

 

 

1,482

 

 

3,346

 

 

4,828

 

 

(101)

 

2010

 

01/30/2015

 

Other Wood Product Manufacturing

 

Janesville

 

WI

 

 

 

 

 

814

 

 

3,800

 

 

 -

 

 

 -

 

 

814

 

 

3,800

 

 

4,614

 

 

(128)

 

1988

 

01/30/2015

 

Restaurants – Limited Service

 

Demopolis

 

AL

 

 

(f)

 

 

312

 

 

549

 

 

 -

 

 

 -

 

 

312

 

 

549

 

 

861

 

 

(25)

 

1994

 

02/06/2015

 

Restaurants – Limited Service

 

Huntsville

 

AL

 

 

(f)

 

 

384

 

 

725

 

 

 -

 

 

 -

 

 

384

 

 

725

 

 

1,109

 

 

(30)

 

1992

 

02/06/2015

 

Restaurants – Limited Service

 

Talladaga

 

AL

 

 

(f)

 

 

352

 

 

469

 

 

 -

 

 

 -

 

 

352

 

 

469

 

 

821

 

 

(23)

 

1982

 

02/06/2015

 

Restaurants – Limited Service

 

Benton

 

AR

 

 

(f)

 

 

410

 

 

411

 

 

 -

 

 

 -

 

 

410

 

 

411

 

 

821

 

 

(19)

 

1982

 

02/06/2015

 

Restaurants – Limited Service

 

Jacksonville

 

AR

 

 

(f)

 

 

316

 

 

347

 

 

 -

 

 

 -

 

 

316

 

 

347

 

 

663

 

 

(17)

 

1981

 

02/06/2015

 

Restaurants – Limited Service

 

Little Rock

 

AR

 

 

(f)

 

 

389

 

 

512

 

 

 -

 

 

 -

 

 

389

 

 

512

 

 

901

 

 

(22)

 

1977

 

02/06/2015

 

Restaurants – Limited Service

 

Searcy

 

AR

 

 

(f)

 

 

327

 

 

484

 

 

 -

 

 

 -

 

 

327

 

 

484

 

 

811

 

 

(22)

 

1983

 

02/06/2015

 

Restaurants – Limited Service

 

DeLand

 

FL

 

 

(f)

 

 

525

 

 

365

 

 

 -

 

 

 -

 

 

525

 

 

365

 

 

890

 

 

(28)

 

1986

 

02/06/2015

 

Restaurants – Limited Service

 

Jacksonville

 

FL

 

 

(f)

 

 

526

 

 

374

 

 

 -

 

 

 -

 

 

526

 

 

374

 

 

900

 

 

(30)

 

1983

 

02/06/2015

 

Restaurants – Limited Service

 

Atlanta

 

GA

 

 

(f)

 

 

383

 

 

923

 

 

 -

 

 

 -

 

 

383

 

 

923

 

 

1,306

 

 

(31)

 

1982

 

02/06/2015

 

Restaurants – Limited Service

 

Cartersville

 

GA

 

 

(f)

 

 

361

 

 

1,064

 

 

 -

 

 

 -

 

 

361

 

 

1,064

 

 

1,425

 

 

(40)

 

1986

 

02/06/2015

 

Restaurants – Limited Service

 

College Park

 

GA

 

 

(f)

 

 

254

 

 

488

 

 

 -

 

 

 -

 

 

254

 

 

488

 

 

742

 

 

(17)

 

1988

 

02/06/2015

 

Restaurants – Limited Service

 

Columbus

 

GA

 

 

(f)

 

 

428

 

 

314

 

 

 -

 

 

 -

 

 

428

 

 

314

 

 

742

 

 

(12)

 

1985

 

02/06/2015

 

Restaurants – Limited Service

 

Hinesville

 

GA

 

 

(f)

 

 

209

 

 

741

 

 

 -

 

 

 -

 

 

209

 

 

741

 

 

950

 

 

(31)

 

1990

 

02/06/2015

 

Restaurants – Limited Service

 

Marietta

 

GA

 

 

(f)

 

 

234

 

 

567

 

 

 -

 

 

 -

 

 

234

 

 

567

 

 

801

 

 

(18)

 

1985

 

02/06/2015

 

Restaurants – Limited Service

 

Tucker

 

GA

 

 

(f)

 

 

367

 

 

247

 

 

 -

 

 

 -

 

 

367

 

 

247

 

 

614

 

 

(13)

 

1976

 

02/06/2015

 

Restaurants – Limited Service

 

Waycross

 

GA

 

 

(f)

 

 

154

 

 

538

 

 

 -

 

 

 -

 

 

154

 

 

538

 

 

692

 

 

(23)

 

1991

 

02/06/2015

 

Restaurants – Limited Service

 

Edwardsville

 

IL

 

 

(f)

 

 

446

 

 

355

 

 

 -

 

 

 -

 

 

446

 

 

355

 

 

801

 

 

(17)

 

1986

 

02/06/2015

 

Restaurants – Limited Service

 

Clarksville

 

IN

 

 

(f)

 

 

286

 

 

763

 

 

 -

 

 

 -

 

 

286

 

 

763

 

 

1,049

 

 

(29)

 

1977

 

02/06/2015

 

Restaurants – Limited Service

 

Vincennes

 

IN

 

 

(f)

 

 

323

 

 

429

 

 

 -

 

 

 -

 

 

323

 

 

429

 

 

752

 

 

(26)

 

1978

 

02/06/2015

 

Restaurants – Limited Service

 

Bowling Green

 

KY

 

 

(f)

 

 

355

 

 

368

 

 

 -

 

 

 -

 

 

355

 

 

368

 

 

723

 

 

(15)

 

1978

 

02/06/2015

 

Restaurants – Limited Service

 

St. Ann

 

MO

 

 

(f)

 

 

367

 

 

583

 

 

 -

 

 

 -

 

 

367

 

 

583

 

 

950

 

 

(21)

 

1982

 

02/06/2015

 

Restaurants – Limited Service

 

St. Louis

 

MO

 

 

(f)

 

 

365

 

 

793

 

 

 -

 

 

 -

 

 

365

 

 

793

 

 

1,158

 

 

(27)

 

1983

 

02/06/2015

 

 

F-19


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Restaurants – Limited Service

 

Columbus

 

MS

 

 

(f)

 

 

409

 

 

422

 

 

 -

 

 

 -

 

 

409

 

 

422

 

 

831

 

 

(21)

 

1982

 

02/06/2015

 

Restaurants – Limited Service

 

Greenville

 

NC

 

 

(f)

 

 

280

 

 

403

 

 

 -

 

 

 -

 

 

280

 

 

403

 

 

683

 

 

(13)

 

1986

 

02/06/2015

 

Restaurants – Limited Service

 

Columbus

 

OH

 

 

(f)

 

 

342

 

 

291

 

 

 -

 

 

 -

 

 

342

 

 

291

 

 

633

 

 

(16)

 

1987

 

02/06/2015

 

Restaurants – Limited Service

 

Huber Heights

 

OH

 

 

(f)

 

 

358

 

 

295

 

 

 -

 

 

 -

 

 

358

 

 

295

 

 

653

 

 

(16)

 

1986

 

02/06/2015

 

Restaurants – Limited Service

 

Portsmouth

 

OH

 

 

(f)

 

 

279

 

 

354

 

 

 -

 

 

 -

 

 

279

 

 

354

 

 

633

 

 

(15)

 

1986

 

02/06/2015

 

Restaurants – Limited Service

 

Cayce

 

SC

 

 

(f)

 

 

560

 

 

795

 

 

 -

 

 

 -

 

 

560

 

 

795

 

 

1,355

 

 

(44)

 

1980

 

02/06/2015

 

Restaurants – Limited Service

 

North Charleston

 

SC

 

 

(f)

 

 

388

 

 

434

 

 

 -

 

 

 -

 

 

388

 

 

434

 

 

822

 

 

(26)

 

1985

 

02/06/2015

 

Restaurants – Limited Service

 

Chattanooga

 

TN

 

 

(f)

 

 

305

 

 

417

 

 

 -

 

 

 -

 

 

305

 

 

417

 

 

722

 

 

(18)

 

1981

 

02/06/2015

 

Restaurants – Limited Service

 

Dickson

 

TN

 

 

(f)

 

 

424

 

 

951

 

 

 -

 

 

 -

 

 

424

 

 

951

 

 

1,375

 

 

(41)

 

1981

 

02/06/2015

 

Restaurants – Limited Service

 

Rockwood

 

TN

 

 

(f)

 

 

296

 

 

367

 

 

 -

 

 

 -

 

 

296

 

 

367

 

 

663

 

 

(15)

 

1992

 

02/06/2015

 

Restaurants – Limited Service

 

Beckley

 

WV

 

 

(f)

 

 

303

 

 

588

 

 

 -

 

 

 -

 

 

303

 

 

588

 

 

891

 

 

(26)

 

1982

 

02/06/2015

 

Health Clubs

 

Glendale

 

AZ

 

 

 

 

 

1,298

 

 

168

 

 

1,052

 

 

5,046

 

 

2,350

 

 

5,214

 

 

7,564

 

 

(33)

 

2015

 

02/13/2015

 

Restaurants – Limited Service

 

Bristol

 

TN

 

 

 

 

 

223

 

 

709

 

 

 -

 

 

 -

 

 

223

 

 

709

 

 

932

 

 

(25)

 

2001

 

02/13/2015

 

Restaurants – Limited Service

 

Elizabethton

 

TN

 

 

 

 

 

269

 

 

537

 

 

 -

 

 

 -

 

 

269

 

 

537

 

 

806

 

 

(19)

 

2004

 

02/13/2015

 

Restaurants – Limited Service

 

Kingsport

 

TN

 

 

 

 

 

69

 

 

902

 

 

 -

 

 

 -

 

 

69

 

 

902

 

 

971

 

 

(32)

 

2000

 

02/13/2015

 

Restaurants – Limited Service

 

Norton

 

VA

 

 

 

 

 

167

 

 

542

 

 

 -

 

 

 -

 

 

167

 

 

542

 

 

709

 

 

(19)

 

1979

 

02/13/2015

 

Restaurants – Full Service

 

Opelika

 

AL

 

 

 

 

 

627

 

 

 -

 

 

 -

 

 

 -

 

 

627

 

 

 -

 

 

627

 

 

 -

 

2008

 

02/17/2015

 

Restaurants – Limited Service

 

Burton

 

MI

 

 

 

 

 

177

 

 

304

 

 

 -

 

 

 -

 

 

177

 

 

304

 

 

481

 

 

(14)

 

2003

 

02/18/2015

 

Restaurants – Limited Service

 

Burton

 

MI

 

 

 

 

 

140

 

 

225

 

 

 -

 

 

 -

 

 

140

 

 

225

 

 

365

 

 

(11)

 

2011

 

02/18/2015

 

Restaurants – Limited Service

 

Burton

 

MI

 

 

 

 

 

563

 

 

995

 

 

 -

 

 

 -

 

 

563

 

 

995

 

 

1,558

 

 

(39)

 

1980

 

02/18/2015

 

Restaurants – Limited Service

 

Detroit

 

MI

 

 

 

 

 

392

 

 

243

 

 

 -

 

 

 -

 

 

392

 

 

243

 

 

635

 

 

(11)

 

2011

 

02/18/2015

 

Restaurants – Limited Service

 

Fenton

 

MI

 

 

 

 

 

403

 

 

453

 

 

 -

 

 

 -

 

 

403

 

 

453

 

 

856

 

 

(25)

 

1980

 

02/18/2015

 

Restaurants – Limited Service

 

Ferndale

 

MI

 

 

 

 

 

428

 

 

447

 

 

 -

 

 

 -

 

 

428

 

 

447

 

 

875

 

 

(17)

 

1983

 

02/18/2015

 

Restaurants – Limited Service

 

Flint

 

MI

 

 

 

 

 

659

 

 

745

 

 

 -

 

 

 -

 

 

659

 

 

745

 

 

1,404

 

 

(40)

 

1974

 

02/18/2015

 

Restaurants – Limited Service

 

Flint

 

MI

 

 

 

 

 

164

 

 

259

 

 

 -

 

 

 -

 

 

164

 

 

259

 

 

423

 

 

(14)

 

1987

 

02/18/2015

 

Restaurants – Limited Service

 

Flint

 

MI

 

 

 

 

 

190

 

 

406

 

 

 -

 

 

 -

 

 

190

 

 

406

 

 

596

 

 

(20)

 

1929

 

02/18/2015

 

Restaurants – Limited Service

 

Grand Blanc

 

MI

 

 

 

 

 

260

 

 

384

 

 

 -

 

 

 -

 

 

260

 

 

384

 

 

644

 

 

(16)

 

2011

 

02/18/2015

 

Restaurants – Limited Service

 

Mt. Morris Twp

 

MI

 

 

 

 

 

481

 

 

471

 

 

 -

 

 

 -

 

 

481

 

 

471

 

 

952

 

 

(28)

 

1976

 

02/18/2015

 

Restaurants – Limited Service

 

Ortonville

 

MI

 

 

 

 

 

231

 

 

384

 

 

 -

 

 

 -

 

 

231

 

 

384

 

 

615

 

 

(17)

 

2011

 

02/18/2015

 

Health Clubs

 

South Lake Tahoe

 

CA

 

 

 

 

 

683

 

 

1,696

 

 

 -

 

 

171

 

 

683

 

 

1,867

 

 

2,550

 

 

(52)

 

1981

 

02/19/2015

 

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing

 

Greenfield

 

MA

 

 

 

 

 

302

 

 

1,121

 

 

 -

 

 

 -

 

 

302

 

 

1,121

 

 

1,423

 

 

(51)

 

1989

 

02/19/2015

 

Colleges, Universities, and Professional Schools

 

Blairsville

 

PA

 

 

 

 

 

1,245

 

 

7,284

 

 

 -

 

 

 -

 

 

1,245

 

 

7,284

 

 

8,529

 

 

(277)

 

2003

 

02/25/2015

 

Outpatient Care Centers

 

Allen

 

TX

 

 

 

 

 

742

 

 

4,837

 

 

 -

 

 

 -

 

 

742

 

 

4,837

 

 

5,579

 

 

(93)

 

2013

 

02/25/2015

 

Outpatient Care Centers

 

Frisco

 

TX

 

 

 

 

 

598

 

 

3,938

 

 

 -

 

 

 -

 

 

598

 

 

3,938

 

 

4,536

 

 

(77)

 

2008

 

02/25/2015

 

Foundries

 

Maple Lake

 

MN

 

 

(f)

 

 

352

 

 

1,210

 

 

 -

 

 

 -

 

 

352

 

 

1,210

 

 

1,562

 

 

(54)

 

1987

 

03/05/2015

 

Health Clubs

 

Bloomingdale

 

IL

 

 

 

 

 

605

 

 

1,550

 

 

273

 

 

151

 

 

878

 

 

1,701

 

 

2,579

 

 

(41)

 

1986

 

03/06/2015

 

Other Ambulatory Health Care Services

 

Cedar City

 

UT

 

 

 

 

 

392

 

 

 -

 

 

388

 

 

3,726

 

 

780

 

 

3,726

 

 

4,506

 

 

(17)

 

2015

 

03/06/2015

 

Motion Picture and Video Industries

 

Tulare

 

CA

 

 

 

 

 

573

 

 

10,253

 

 

 -

 

 

1,218

 

 

573

 

 

11,471

 

 

12,044

 

 

(218)

 

2004

 

03/11/2015

 

Furniture Stores

 

Lexington

 

KY

 

 

(f)

 

 

2,241

 

 

3,745

 

 

 -

 

 

 -

 

 

2,241

 

 

3,745

 

 

5,986

 

 

(119)

 

2008

 

03/11/2015

 

Furniture Stores

 

Cookeville

 

TN

 

 

(f)

 

 

1,013

 

 

1,980

 

 

 -

 

 

 -

 

 

1,013

 

 

1,980

 

 

2,993

 

 

(60)

 

2004

 

03/11/2015

 

Restaurants – Limited Service

 

Flint

 

MI

 

 

 

 

 

161

 

 

538

 

 

 -

 

 

 -

 

 

161

 

 

538

 

 

699

 

 

(26)

 

1979

 

03/12/2015

 

Restaurants – Limited Service

 

Grand Blanc

 

MI

 

 

 

 

 

635

 

 

478

 

 

 -

 

 

 -

 

 

635

 

 

478

 

 

1,113

 

 

(27)

 

1998

 

03/12/2015

 

Restaurants – Limited Service

 

Mt. Morris

 

MI

 

 

 

 

 

77

 

 

317

 

 

 -

 

 

 -

 

 

77

 

 

317

 

 

394

 

 

(15)

 

1995

 

03/12/2015

 

Automotive Repair and Maintenance

 

Bentonville

 

AR

 

 

 

 

 

865

 

 

2,240

 

 

 -

 

 

 -

 

 

865

 

 

2,240

 

 

3,105

 

 

(76)

 

2009

 

03/16/2015

 

Automotive Repair and Maintenance

 

Fayetteville

 

AR

 

 

 

 

 

1,056

 

 

1,014

 

 

 -

 

 

 -

 

 

1,056

 

 

1,014

 

 

2,070

 

 

(36)

 

2005

 

03/16/2015

 

Automotive Repair and Maintenance

 

Little Rock

 

AR

 

 

 

 

 

852

 

 

1,007

 

 

 -

 

 

 -

 

 

852

 

 

1,007

 

 

1,859

 

 

(37)

 

2011

 

03/16/2015

 

Automotive Repair and Maintenance

 

North Little Rock

 

AR

 

 

 

 

 

707

 

 

1,222

 

 

 -

 

 

 -

 

 

707

 

 

1,222

 

 

1,929

 

 

(43)

 

2009

 

03/16/2015

 

Automotive Repair and Maintenance

 

Rogers

 

AR

 

 

 

 

 

1,307

 

 

1,988

 

 

 -

 

 

 -

 

 

1,307

 

 

1,988

 

 

3,295

 

 

(73)

 

2006

 

03/16/2015

 

Automotive Repair and Maintenance

 

Shreveport

 

LA

 

 

 

 

 

544

 

 

1,194

 

 

 -

 

 

 -

 

 

544

 

 

1,194

 

 

1,738

 

 

(45)

 

2006

 

03/16/2015

 

Automotive Repair and Maintenance

 

Shreveport

 

LA

 

 

 

 

 

731

 

 

2,865

 

 

 -

 

 

 -

 

 

731

 

 

2,865

 

 

3,596

 

 

(93)

 

2006

 

03/16/2015

 

 

F-20


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Automotive Repair and Maintenance

 

Shreveport

 

LA

 

 

 

 

 

479

 

 

1,340

 

 

 -

 

 

 -

 

 

479

 

 

1,340

 

 

1,819

 

 

(46)

 

2011

 

03/16/2015

 

Automotive Repair and Maintenance

 

Lapeer

 

MI

 

 

 

 

 

76

 

 

174

 

 

8

 

 

44

 

 

84

 

 

218

 

 

302

 

 

(6)

 

1986

 

03/16/2015

 

Automotive Repair and Maintenance

 

Royal Oak

 

MI

 

 

 

 

 

296

 

 

136

 

 

20

 

 

71

 

 

316

 

 

207

 

 

523

 

 

(6)

 

1987

 

03/16/2015

 

Automotive Repair and Maintenance

 

Sterling Heights

 

MI

 

 

 

 

 

275

 

 

114

 

 

21

 

 

61

 

 

296

 

 

175

 

 

471

 

 

(7)

 

1960

 

03/16/2015

 

Automotive Repair and Maintenance

 

Olive Branch

 

MS

 

 

 

 

 

546

 

 

781

 

 

 -

 

 

 -

 

 

546

 

 

781

 

 

1,327

 

 

(28)

 

2009

 

03/16/2015

 

Automotive Repair and Maintenance

 

Broken Arrow

 

OK

 

 

 

 

 

326

 

 

910

 

 

 -

 

 

 -

 

 

326

 

 

910

 

 

1,236

 

 

(33)

 

2011

 

03/16/2015

 

Automotive Repair and Maintenance

 

Norman

 

OK

 

 

 

 

 

937

 

 

1,243

 

 

 -

 

 

 -

 

 

937

 

 

1,243

 

 

2,180

 

 

(41)

 

2005

 

03/16/2015

 

Automotive Repair and Maintenance

 

Oklahoma City

 

OK

 

 

 

 

 

1,187

 

 

1,174

 

 

 -

 

 

 -

 

 

1,187

 

 

1,174

 

 

2,361

 

 

(46)

 

2005

 

03/16/2015

 

Automotive Repair and Maintenance

 

Oklahoma City

 

OK

 

 

 

 

 

757

 

 

1,172

 

 

 -

 

 

 -

 

 

757

 

 

1,172

 

 

1,929

 

 

(43)

 

2011

 

03/16/2015

 

Automotive Repair and Maintenance

 

Oklahoma City

 

OK

 

 

 

 

 

908

 

 

1,041

 

 

 -

 

 

 -

 

 

908

 

 

1,041

 

 

1,949

 

 

(40)

 

2007

 

03/16/2015

 

Automotive Repair and Maintenance

 

Tulsa

 

OK

 

 

 

 

 

1,065

 

 

1,216

 

 

 -

 

 

 -

 

 

1,065

 

 

1,216

 

 

2,281

 

 

(43)

 

2011

 

03/16/2015

 

Automotive Repair and Maintenance

 

Tulsa

 

OK

 

 

 

 

 

1,110

 

 

1,452

 

 

 -

 

 

 -

 

 

1,110

 

 

1,452

 

 

2,562

 

 

(57)

 

2006

 

03/16/2015

 

Automotive Repair and Maintenance

 

Cordova

 

TN

 

 

 

 

 

878

 

 

1,885

 

 

 -

 

 

 -

 

 

878

 

 

1,885

 

 

2,763

 

 

(65)

 

2006

 

03/16/2015

 

Automotive Repair and Maintenance

 

Memphis

 

TN

 

 

 

 

 

437

 

 

1,381

 

 

 -

 

 

 -

 

 

437

 

 

1,381

 

 

1,818

 

 

(45)

 

2005

 

03/16/2015

 

Automotive Repair and Maintenance

 

Memphis

 

TN

 

 

 

 

 

911

 

 

1,269

 

 

 -

 

 

 -

 

 

911

 

 

1,269

 

 

2,180

 

 

(43)

 

2006

 

03/16/2015

 

Junior Colleges

 

New Bedford

 

MA

 

 

 

 

 

178

 

 

8,653

 

 

 -

 

 

 -

 

 

178

 

 

8,653

 

 

8,831

 

 

(325)

 

1920

 

03/17/2015

 

Restaurants – Full Service

 

Bluffton

 

SC

 

 

 

 

 

657

 

 

1,871

 

 

 -

 

 

 -

 

 

657

 

 

1,871

 

 

2,528

 

 

(40)

 

2006

 

03/24/2015

 

Restaurants – Full Service

 

Greenville

 

SC

 

 

 

 

 

721

 

 

1,579

 

 

 -

 

 

 -

 

 

721

 

 

1,579

 

 

2,300

 

 

(40)

 

2001

 

03/24/2015

 

Restaurants – Full Service

 

Hilton Head Island

 

SC

 

 

 

 

 

1,184

 

 

1,127

 

 

 -

 

 

150

 

 

1,184

 

 

1,277

 

 

2,461

 

 

(36)

 

1996

 

03/24/2015

 

Restaurants – Full Service

 

North Charleston

 

SC

 

 

 

 

 

2,208

 

 

1,760

 

 

 -

 

 

 -

 

 

2,208

 

 

1,760

 

 

3,968

 

 

(52)

 

2003

 

03/24/2015

 

Foundries

 

Muscle Shoals

 

AL

 

 

(f)

 

 

415

 

 

1,091

 

 

 -

 

 

 -

 

 

415

 

 

1,091

 

 

1,506

 

 

(52)

 

1968

 

03/25/2015

 

Foundries

 

Grafton

 

WI

 

 

(f)

 

 

531

 

 

3,575

 

 

 -

 

 

 -

 

 

531

 

 

3,575

 

 

4,106

 

 

(138)

 

1948

 

03/25/2015

 

Restaurants – Limited Service

 

Evansville

 

IN

 

 

 

 

 

266

 

 

701

 

 

 -

 

 

 -

 

 

266

 

 

701

 

 

967

 

 

(22)

 

1981

 

03/27/2015

 

Restaurants – Limited Service

 

Evansville

 

IN

 

 

 

 

 

278

 

 

464

 

 

 -

 

 

 -

 

 

278

 

 

464

 

 

742

 

 

(16)

 

1994

 

03/27/2015

 

Restaurants – Limited Service

 

Mayfield

 

KY

 

 

 

 

 

437

 

 

412

 

 

 -

 

 

 -

 

 

437

 

 

412

 

 

849

 

 

(27)

 

1993

 

03/27/2015

 

Restaurants – Limited Service

 

Paducah

 

KY

 

 

 

 

 

702

 

 

713

 

 

 -

 

 

 -

 

 

702

 

 

713

 

 

1,415

 

 

(37)

 

2006

 

03/27/2015

 

Restaurants – Limited Service

 

Paducah

 

KY

 

 

 

 

 

578

 

 

379

 

 

 -

 

 

 -

 

 

578

 

 

379

 

 

957

 

 

(25)

 

1991

 

03/27/2015

 

Restaurants – Limited Service

 

Paducah

 

KY

 

 

 

 

 

581

 

 

463

 

 

 -

 

 

 -

 

 

581

 

 

463

 

 

1,044

 

 

(25)

 

2000

 

03/27/2015

 

Restaurants – Limited Service

 

Paducah

 

KY

 

 

 

 

 

392

 

 

399

 

 

 -

 

 

 -

 

 

392

 

 

399

 

 

791

 

 

(20)

 

1995

 

03/27/2015

 

Restaurants – Limited Service

 

Cape Giradeau

 

MO

 

 

 

 

 

332

 

 

536

 

 

 -

 

 

 -

 

 

332

 

 

536

 

 

868

 

 

(22)

 

2005

 

03/27/2015

 

Restaurants – Limited Service

 

Cape Giradeau

 

MO

 

 

 

 

 

260

 

 

560

 

 

 -

 

 

 -

 

 

260

 

 

560

 

 

820

 

 

(18)

 

1980

 

03/27/2015

 

Restaurants – Limited Service

 

Doniphan

 

MO

 

 

 

 

 

445

 

 

502

 

 

 -

 

 

 -

 

 

445

 

 

502

 

 

947

 

 

(28)

 

1990

 

03/27/2015

 

Restaurants – Limited Service

 

Jackson

 

MO

 

 

 

 

 

445

 

 

482

 

 

 -

 

 

 -

 

 

445

 

 

482

 

 

927

 

 

(27)

 

1992

 

03/27/2015

 

Restaurants – Limited Service

 

Malden

 

MO

 

 

 

 

 

446

 

 

511

 

 

 -

 

 

 -

 

 

446

 

 

511

 

 

957

 

 

(28)

 

2002

 

03/27/2015

 

Restaurants – Limited Service

 

Springfield

 

MO

 

 

 

 

 

559

 

 

563

 

 

 -

 

 

 -

 

 

559

 

 

563

 

 

1,122

 

 

(29)

 

2000

 

03/27/2015

 

Restaurants – Limited Service

 

Elizabethton

 

TN

 

 

 

 

 

284

 

 

741

 

 

 -

 

 

 -

 

 

284

 

 

741

 

 

1,025

 

 

(23)

 

1978

 

03/27/2015

 

Restaurants – Limited Service

 

Morristown

 

TN

 

 

 

 

 

509

 

 

584

 

 

 -

 

 

 -

 

 

509

 

 

584

 

 

1,093

 

 

(23)

 

1978

 

03/27/2015

 

Other Support Services

 

Winona

 

MN

 

 

 

 

 

303

 

 

1,896

 

 

 -

 

 

 -

 

 

303

 

 

1,896

 

 

2,199

 

 

(49)

 

1993

 

03/31/2015

 

Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing

 

Greensboro

 

NC

 

 

 

 

 

412

 

 

4,898

 

 

 -

 

 

 -

 

 

412

 

 

4,898

 

 

5,310

 

 

(131)

 

1980

 

03/31/2015

 

Other Support Services

 

Mason

 

OH

 

 

 

 

 

470

 

 

3,738

 

 

 -

 

 

 -

 

 

470

 

 

3,738

 

 

4,208

 

 

(99)

 

1993

 

03/31/2015

 

Other Support Services

 

Mason

 

OH

 

 

 

 

 

383

 

 

1,360

 

 

 -

 

 

 -

 

 

383

 

 

1,360

 

 

1,743

 

 

(38)

 

1997

 

03/31/2015

 

Other Support Services

 

Algoma

 

WI

 

 

 

 

 

313

 

 

5,462

 

 

46

 

 

 -

 

 

359

 

 

5,462

 

 

5,821

 

 

(145)

 

1955

 

03/31/2015

 

Other Support Services

 

Algoma

 

WI

 

 

 

 

 

227

 

 

2,037

 

 

 -

 

 

 -

 

 

227

 

 

2,037

 

 

2,264

 

 

(56)

 

2000

 

03/31/2015

 

Restaurants – Full Service

 

Canonsburg

 

PA

 

 

 

 

 

1,357

 

 

857

 

 

21

 

 

31

 

 

1,378

 

 

888

 

 

2,266

 

 

(37)

 

1977

 

04/06/2015

 

Restaurants – Full Service

 

Franklin

 

PA

 

 

 

 

 

346

 

 

897

 

 

22

 

 

42

 

 

368

 

 

939

 

 

1,307

 

 

(39)

 

1984

 

04/06/2015

 

Restaurants – Full Service

 

Gibsonia

 

PA

 

 

 

 

 

442

 

 

801

 

 

21

 

 

41

 

 

463

 

 

842

 

 

1,305

 

 

(24)

 

1994

 

04/06/2015

 

Restaurants – Full Service

 

Grove City

 

PA

 

 

 

 

 

421

 

 

771

 

 

22

 

 

43

 

 

443

 

 

814

 

 

1,257

 

 

(32)

 

1998

 

04/06/2015

 

Restaurants – Full Service

 

Kittanning

 

PA

 

 

 

 

 

591

 

 

912

 

 

19

 

 

40

 

 

610

 

 

952

 

 

1,562

 

 

(39)

 

1993

 

04/06/2015

 

Restaurants – Full Service

 

Leechburg

 

PA

 

 

 

 

 

810

 

 

1,454

 

 

17

 

 

37

 

 

827

 

 

1,491

 

 

2,318

 

 

(45)

 

2004

 

04/06/2015

 

Restaurants – Full Service

 

Meadville

 

PA

 

 

 

 

 

263

 

 

889

 

 

24

 

 

45

 

 

287

 

 

934

 

 

1,221

 

 

(26)

 

1983

 

04/06/2015

 

 

F-21


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Restaurants – Full Service

 

Monaca

 

PA

 

 

 

 

 

616

 

 

1,077

 

 

43

 

 

60

 

 

659

 

 

1,137

 

 

1,796

 

 

(31)

 

1990

 

04/06/2015

 

Restaurants – Full Service

 

Monroeville

 

PA

 

 

 

 

 

596

 

 

646

 

 

7

 

 

39

 

 

603

 

 

685

 

 

1,288

 

 

(20)

 

1972

 

04/06/2015

 

Restaurants – Full Service

 

Pittsburgh

 

PA

 

 

 

 

 

467

 

 

675

 

 

18

 

 

30

 

 

485

 

 

705

 

 

1,190

 

 

(20)

 

1976

 

04/06/2015

 

Restaurants – Full Service

 

Somerset

 

PA

 

 

 

 

 

603

 

 

840

 

 

14

 

 

78

 

 

617

 

 

918

 

 

1,535

 

 

(26)

 

1992

 

04/06/2015

 

Restaurants – Full Service

 

Petoskey

 

MI

 

 

 

 

 

396

 

 

364

 

 

 -

 

 

 -

 

 

396

 

 

364

 

 

760

 

 

(17)

 

2004

 

04/07/2015

 

Grantmaking and Giving Services

 

Edmond

 

OK

 

 

 

 

 

499

 

 

2,551

 

 

 -

 

 

 -

 

 

499

 

 

2,551

 

 

3,050

 

 

(39)

 

2015

 

04/09/2015

 

Other Food Manufacturing

 

Chicago

 

IL

 

 

 

 

 

3,418

 

 

8,982

 

 

 -

 

 

 -

 

 

3,418

 

 

8,982

 

 

12,400

 

 

(378)

 

1970

 

04/10/2015

 

Other Food Manufacturing

 

Hodgkins

 

IL

 

 

 

 

 

1,762

 

 

5,364

 

 

 -

 

 

 -

 

 

1,762

 

 

5,364

 

 

7,126

 

 

(226)

 

1970

 

04/10/2015

 

All Other Amusement and Recreation

 

Huntsville

 

AL

 

 

 

 

 

1,307

 

 

1,361

 

 

76

 

 

1,682

 

 

1,383

 

 

3,043

 

 

4,426

 

 

(40)

 

1985

 

04/16/2015

 

Restaurants – Full Service

 

Loganville

 

GA

 

 

(f)

 

 

545

 

 

1,073

 

 

 -

 

 

 -

 

 

545

 

 

1,073

 

 

1,618

 

 

(44)

 

1982

 

04/16/2015

 

Fruit and Vegetable Preserving and Specialty Food Manufacturing

 

Jackson

 

OH

 

 

 

 

 

7,030

 

 

39,040

 

 

 -

 

 

 -

 

 

7,030

 

 

39,040

 

 

46,070

 

 

(940)

 

1946

 

04/16/2015

 

Fruit and Vegetable Preserving and Specialty Food Manufacturing

 

Jackson

 

OH

 

 

 

 

 

191

 

 

4,051

 

 

 -

 

 

 -

 

 

191

 

 

4,051

 

 

4,242

 

 

(94)

 

1997

 

04/16/2015

 

Child Day Care Services

 

Cedar Park

 

TX

 

 

 

 

 

761

 

 

178

 

 

 -

 

 

2,353

 

 

761

 

 

2,531

 

 

3,292

 

 

 -

 

 

 

04/17/2015

 

Restaurants – Full Service

 

Shelby

 

NC

 

 

 

 

 

619

 

 

624

 

 

 -

 

 

166

 

 

619

 

 

790

 

 

1,409

 

 

(18)

 

2000

 

04/20/2015

 

Restaurants – Full Service

 

Waynesville

 

NC

 

 

 

 

 

808

 

 

837

 

 

 -

 

 

 -

 

 

808

 

 

837

 

 

1,645

 

 

(24)

 

1977

 

04/20/2015

 

Restaurants – Full Service

 

Addison

 

IL

 

 

 

 

 

1,029

 

 

793

 

 

 -

 

 

 -

 

 

1,029

 

 

793

 

 

1,822

 

 

(17)

 

2005

 

04/22/2015

 

Restaurants – Full Service

 

Chicago

 

IL

 

 

 

 

 

668

 

 

902

 

 

 -

 

 

 -

 

 

668

 

 

902

 

 

1,570

 

 

(18)

 

1920

 

04/22/2015

 

Restaurants – Full Service

 

Mount Prospect

 

IL

 

 

 

 

 

830

 

 

755

 

 

 -

 

 

172

 

 

830

 

 

927

 

 

1,757

 

 

(23)

 

2005

 

04/22/2015

 

Restaurants – Full Service

 

Oak Park

 

IL

 

 

 

 

 

703

 

 

426

 

 

 -

 

 

 -

 

 

703

 

 

426

 

 

1,129

 

 

(9)

 

2005

 

04/22/2015

 

Restaurants – Full Service

 

Oakbrook Terrace

 

IL

 

 

 

 

 

1,967

 

 

870

 

 

 -

 

 

 -

 

 

1,967

 

 

870

 

 

2,837

 

 

(23)

 

1998

 

04/22/2015

 

Restaurants – Full Service

 

Oswego

 

IL

 

 

 

 

 

1,094

 

 

869

 

 

 -

 

 

 -

 

 

1,094

 

 

869

 

 

1,963

 

 

(18)

 

2005

 

04/22/2015

 

Restaurants – Full Service

 

Willowbrook

 

IL

 

 

 

 

 

869

 

 

796

 

 

 -

 

 

 -

 

 

869

 

 

796

 

 

1,665

 

 

(22)

 

1979

 

04/22/2015

 

Restaurants – Full Service

 

Adrian

 

MI

 

 

 

 

 

356

 

 

602

 

 

 -

 

 

 -

 

 

356

 

 

602

 

 

958

 

 

(20)

 

2001

 

04/24/2015

 

Restaurants – Full Service

 

Brooklyn

 

MI

 

 

 

 

 

432

 

 

466

 

 

 -

 

 

 -

 

 

432

 

 

466

 

 

898

 

 

(27)

 

1995

 

04/24/2015

 

Restaurants – Full Service

 

Tecumseh

 

MI

 

 

 

 

 

171

 

 

708

 

 

 -

 

 

 -

 

 

171

 

 

708

 

 

879

 

 

(20)

 

1880

 

04/24/2015

 

Psychiatric and Substance Abuse Hospitals

 

Barbourville

 

KY

 

 

 

 

 

424

 

 

893

 

 

 -

 

 

 -

 

 

424

 

 

893

 

 

1,317

 

 

(21)

 

2014

 

04/29/2015

 

Psychiatric and Substance Abuse Hospitals

 

Bowling Green

 

KY

 

 

 

 

 

190

 

 

504

 

 

 -

 

 

 -

 

 

190

 

 

504

 

 

694

 

 

(14)

 

1987

 

04/29/2015

 

Psychiatric and Substance Abuse Hospitals

 

Danville

 

KY

 

 

 

 

 

244

 

 

756

 

 

 -

 

 

 -

 

 

244

 

 

756

 

 

1,000

 

 

(17)

 

2010

 

04/29/2015

 

Psychiatric and Substance Abuse Hospitals

 

Frankfort

 

KY

 

 

 

 

 

206

 

 

479

 

 

 -

 

 

 -

 

 

206

 

 

479

 

 

685

 

 

(11)

 

2011

 

04/29/2015

 

Psychiatric and Substance Abuse Hospitals

 

Morehead

 

KY

 

 

 

 

 

199

 

 

710

 

 

 -

 

 

 -

 

 

199

 

 

710

 

 

909

 

 

(14)

 

2012

 

04/29/2015

 

Health Clubs

 

Roanoke

 

VA

 

 

 

 

 

1,799

 

 

2,834

 

 

 -

 

 

 -

 

 

1,799

 

 

2,834

 

 

4,633

 

 

(113)

 

1961

 

04/29/2015

 

Restaurants – Full Service

 

Elgin

 

IL

 

 

 

 

 

662

 

 

303

 

 

 -

 

 

 -

 

 

662

 

 

303

 

 

965

 

 

(9)

 

1994

 

04/30/2015

 

Agriculture, Construction, and Mining Machinery Manufacturing

 

Woodridge

 

IL

 

 

 

 

 

432

 

 

 -

 

 

 -

 

 

 -

 

 

432

 

 

 -

 

 

432

 

 

 -

 

1990

 

04/30/2015

 

Amusement Parks and Arcades

 

West Berlin

 

NJ

 

 

 

 

 

3,864

 

 

13,408

 

 

 -

 

 

 -

 

 

3,864

 

 

13,408

 

 

17,272

 

 

(415)

 

2009

 

04/30/2015

 

Restaurants – Full Service

 

Norfolk

 

VA

 

 

 

 

 

545

 

 

646

 

 

 -

 

 

 -

 

 

545

 

 

646

 

 

1,191

 

 

(16)

 

1979

 

04/30/2015

 

Restaurants – Full Service

 

Douglasville

 

GA

 

 

(f)

 

 

1,608

 

 

2,711

 

 

 -

 

 

 -

 

 

1,608

 

 

2,711

 

 

4,319

 

 

(71)

 

1999

 

05/06/2015

 

Child Day Care Services

 

Minneapolis

 

MN

 

 

 

 

 

580

 

 

1,293

 

 

 -

 

 

 -

 

 

580

 

 

1,293

 

 

1,873

 

 

(22)

 

1954

 

05/06/2015

 

Child Day Care Services

 

Minneapolis

 

MN

 

 

 

 

 

981

 

 

665

 

 

102

 

 

1,153

 

 

1,083

 

 

1,818

 

 

2,901

 

 

(29)

 

1959

 

05/06/2015

 

Health Clubs

 

Modesto

 

CA

 

 

 

 

 

1,297

 

 

3,526

 

 

 -

 

 

 -

 

 

1,297

 

 

3,526

 

 

4,823

 

 

(90)

 

1978

 

05/08/2015

 

Restaurants – Full Service

 

Athens

 

AL

 

 

 

 

 

1,038

 

 

1,681

 

 

 -

 

 

 -

 

 

1,038

 

 

1,681

 

 

2,719

 

 

(39)

 

2008

 

05/13/2015

 

Restaurants – Full Service

 

Bryant

 

AR

 

 

 

 

 

505

 

 

1,569

 

 

 -

 

 

 -

 

 

505

 

 

1,569

 

 

2,074

 

 

(34)

 

2011

 

05/13/2015

 

Motion Picture and Video Industries

 

Clarksville

 

IN

 

 

 

 

 

1,620

 

 

4,214

 

 

 -

 

 

 -

 

 

1,620

 

 

4,214

 

 

5,834

 

 

(135)

 

2006

 

05/13/2015

 

Restaurants – Full Service

 

Richmond

 

KY

 

 

 

 

 

1,164

 

 

1,784

 

 

 -

 

 

 -

 

 

1,164

 

 

1,784

 

 

2,948

 

 

(48)

 

2008

 

05/13/2015

 

Restaurants – Full Service

 

Pearl

 

MS

 

 

 

 

 

1,329

 

 

2,214

 

 

 -

 

 

 -

 

 

1,329

 

 

2,214

 

 

3,543

 

 

(53)

 

2010

 

05/13/2015

 

Restaurants – Full Service

 

Yukon

 

OK

 

 

 

 

 

915

 

 

1,636

 

 

 -

 

 

 -

 

 

915

 

 

1,636

 

 

2,551

 

 

(35)

 

2010

 

05/13/2015

 

Restaurants – Full Service

 

Chattanooga

 

TN

 

 

 

 

 

1,502

 

 

1,694

 

 

 -

 

 

 -

 

 

1,502

 

 

1,694

 

 

3,196

 

 

(40)

 

2010

 

05/13/2015

 

Restaurants – Full Service

 

Manchester

 

TN

 

 

 

 

 

983

 

 

1,696

 

 

 -

 

 

 -

 

 

983

 

 

1,696

 

 

2,679

 

 

(47)

 

2010

 

05/13/2015

 

Restaurants – Full Service

 

Buda

 

TX

 

 

 

 

 

714

 

 

1,618

 

 

 -

 

 

 -

 

 

714

 

 

1,618

 

 

2,332

 

 

(37)

 

2010

 

05/13/2015

 

Automotive Repair and Maintenance

 

Edinburg

 

TX

 

 

 

 

 

1,796

 

 

1,793

 

 

 -

 

 

 -

 

 

1,796

 

 

1,793

 

 

3,589

 

 

(60)

 

2014

 

05/13/2015

 

Automotive Repair and Maintenance

 

Harlingen

 

TX

 

 

 

 

 

1,657

 

 

2,349

 

 

 -

 

 

 -

 

 

1,657

 

 

2,349

 

 

4,006

 

 

(75)

 

2014

 

05/13/2015

 

 

F-22


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Automotive Repair and Maintenance

 

League City

 

TX

 

 

 

 

 

1,385

 

 

2,502

 

 

 -

 

 

 -

 

 

1,385

 

 

2,502

 

 

3,887

 

 

(75)

 

2011

 

05/13/2015

 

Automotive Repair and Maintenance

 

Weslaco

 

TX

 

 

 

 

 

1,196

 

 

2,513

 

 

 -

 

 

 -

 

 

1,196

 

 

2,513

 

 

3,709

 

 

(76)

 

2014

 

05/13/2015

 

Automobile Dealers

 

Toledo

 

OH

 

 

 

 

 

474

 

 

957

 

 

 -

 

 

 -

 

 

474

 

 

957

 

 

1,431

 

 

(32)

 

1972

 

05/15/2015

 

Automobile Dealers

 

Erie

 

PA

 

 

 

 

 

430

 

 

1,009

 

 

 -

 

 

 -

 

 

430

 

 

1,009

 

 

1,439

 

 

(31)

 

2000

 

05/15/2015

 

Health Clubs

 

Summerville

 

SC

 

 

(f)

 

 

368

 

 

1,920

 

 

 -

 

 

 -

 

 

368

 

 

1,920

 

 

2,288

 

 

(50)

 

2012

 

05/15/2015

 

Miscellaneous Nondurable Goods Merchant Wholesalers

 

Grand Haven

 

MI

 

 

 

 

 

11,429

 

 

6,038

 

 

 -

 

 

 -

 

 

11,429

 

 

6,038

 

 

17,467

 

 

(347)

 

1950

 

05/22/2015

 

Miscellaneous Nondurable Goods Merchant Wholesalers

 

Sims

 

NC

 

 

 

 

 

4,275

 

 

1,406

 

 

 -

 

 

 -

 

 

4,275

 

 

1,406

 

 

5,681

 

 

(133)

 

1985

 

05/22/2015

 

Miscellaneous Nondurable Goods Merchant Wholesalers

 

Hulbert

 

OK

 

 

 

 

 

6,712

 

 

2,221

 

 

 -

 

 

 -

 

 

6,712

 

 

2,221

 

 

8,933

 

 

(265)

 

1995

 

05/22/2015

 

Miscellaneous Nondurable Goods Merchant Wholesalers

 

Smithville

 

TN

 

 

 

 

 

4,766

 

 

454

 

 

 -

 

 

 -

 

 

4,766

 

 

454

 

 

5,220

 

 

(157)

 

1995

 

05/22/2015

 

Health and Personal Care Stores

 

Tampa

 

FL

 

 

 

 

 

1,025

 

 

5,558

 

 

 -

 

 

 -

 

 

1,025

 

 

5,558

 

 

6,583

 

 

(133)

 

1980

 

05/29/2015

 

Automotive Repair and Maintenance

 

Davenport

 

IA

 

 

 

 

 

216

 

 

283

 

 

 -

 

 

 -

 

 

216

 

 

283

 

 

499

 

 

(8)

 

1997

 

06/01/2015

 

Automotive Repair and Maintenance

 

Bourbonnais

 

IL

 

 

 

 

 

192

 

 

521

 

 

 -

 

 

 -

 

 

192

 

 

521

 

 

713

 

 

(13)

 

2001

 

06/01/2015

 

Automotive Repair and Maintenance

 

East Peoria

 

IL

 

 

 

 

 

262

 

 

227

 

 

 -

 

 

 -

 

 

262

 

 

227

 

 

489

 

 

(9)

 

1996

 

06/01/2015

 

Automotive Repair and Maintenance

 

Galesburg

 

IL

 

 

 

 

 

115

 

 

324

 

 

 -

 

 

 -

 

 

115

 

 

324

 

 

439

 

 

(8)

 

1990

 

06/01/2015

 

Automotive Repair and Maintenance

 

Moline

 

IL

 

 

 

 

 

116

 

 

200

 

 

 -

 

 

 -

 

 

116

 

 

200

 

 

316

 

 

(8)

 

1997

 

06/01/2015

 

Automotive Repair and Maintenance

 

Pekin

 

IL

 

 

 

 

 

165

 

 

395

 

 

 -

 

 

 -

 

 

165

 

 

395

 

 

560

 

 

(10)

 

1996

 

06/01/2015

 

Automotive Repair and Maintenance

 

Streator

 

IL

 

 

 

 

 

63

 

 

161

 

 

 -

 

 

 -

 

 

63

 

 

161

 

 

224

 

 

(6)

 

1990

 

06/01/2015

 

Automotive Repair and Maintenance

 

Washington

 

IL

 

 

 

 

 

204

 

 

366

 

 

 -

 

 

 -

 

 

204

 

 

366

 

 

570

 

 

(10)

 

1994

 

06/01/2015

 

Cement and Concrete Product Manufacturing

 

Delaware

 

OH

 

 

 

 

 

346

 

 

1,494

 

 

 -

 

 

 -

 

 

346

 

 

1,494

 

 

1,840

 

 

(32)

 

1961

 

06/02/2015

 

Cement and Concrete Product Manufacturing

 

Obetz

 

OH

 

 

 

 

 

624

 

 

1,266

 

 

 -

 

 

 -

 

 

624

 

 

1,266

 

 

1,890

 

 

(25)

 

1970

 

06/02/2015

 

Cement and Concrete Product Manufacturing

 

Sunbury

 

OH

 

 

 

 

 

749

 

 

1,181

 

 

 -

 

 

 -

 

 

749

 

 

1,181

 

 

1,930

 

 

(24)

 

1994

 

06/02/2015

 

Restaurants – Full Service

 

Commerce

 

GA

 

 

(f)

 

 

469

 

 

705

 

 

 -

 

 

 -

 

 

469

 

 

705

 

 

1,174

 

 

(16)

 

1996

 

06/03/2015

 

Restaurants – Full Service

 

Flowery Branch

 

GA

 

 

(f)

 

 

439

 

 

725

 

 

 -

 

 

 -

 

 

439

 

 

725

 

 

1,164

 

 

(18)

 

1998

 

06/03/2015

 

Restaurants – Full Service

 

Chandler

 

AZ

 

 

 

 

 

287

 

 

1,395

 

 

 -

 

 

 -

 

 

287

 

 

1,395

 

 

1,682

 

 

(40)

 

1985

 

06/08/2015

 

Restaurants – Full Service

 

Scottsdale

 

AZ

 

 

 

 

 

774

 

 

913

 

 

 -

 

 

350

 

 

774

 

 

1,263

 

 

2,037

 

 

(36)

 

1960

 

06/08/2015

 

Restaurants – Full Service

 

Tempe

 

AZ

 

 

 

 

 

687

 

 

654

 

 

 -

 

 

 -

 

 

687

 

 

654

 

 

1,341

 

 

(31)

 

1995

 

06/08/2015

 

Other Professional, Scientific, and Technical Services

 

Manitowoc

 

WI

 

 

(f)

 

 

309

 

 

472

 

 

 -

 

 

 -

 

 

309

 

 

472

 

 

781

 

 

(15)

 

1966

 

06/19/2015

 

Furniture Stores

 

Becker

 

MN

 

 

 

 

 

2,965

 

 

7,102

 

 

 -

 

 

 -

 

 

2,965

 

 

7,102

 

 

10,067

 

 

(216)

 

2000

 

06/24/2015

 

Motion Picture and Video Industries

 

Porterville

 

CA

 

 

 

 

 

1,743

 

 

3,614

 

 

 -

 

 

 -

 

 

1,743

 

 

3,614

 

 

5,357

 

 

(73)

 

1998

 

06/25/2015

 

Motion Picture and Video Industries

 

Riverbank

 

CA

 

 

 

 

 

3,963

 

 

8,072

 

 

 -

 

 

1,909

 

 

3,963

 

 

9,981

 

 

13,944

 

 

(163)

 

2000

 

06/25/2015

 

Other Ambulatory Health Care Services

 

Albany

 

GA

 

 

 

 

 

497

 

 

 -

 

 

 -

 

 

2

 

 

497

 

 

2

 

 

499

 

 

 -

 

 

 

06/25/2015

 

Restaurants – Full Service

 

Cincinnati

 

OH

 

 

 

 

 

286

 

 

2,683

 

 

 -

 

 

 -

 

 

286

 

 

2,683

 

 

2,969

 

 

(37)

 

1960

 

06/25/2015

 

Restaurants – Full Service

 

Cincinnati

 

OH

 

 

 

 

 

407

 

 

127

 

 

 -

 

 

 -

 

 

407

 

 

127

 

 

534

 

 

(5)

 

1971

 

06/25/2015

 

Restaurants – Full Service

 

Cincinnati

 

OH

 

 

 

 

 

1,014

 

 

5,982

 

 

 -

 

 

 -

 

 

1,014

 

 

5,982

 

 

6,996

 

 

(103)

 

1951

 

06/25/2015

 

Child Day Care Services

 

North Aurora

 

IL

 

 

 

 

 

760

 

 

2,443

 

 

 -

 

 

 -

 

 

760

 

 

2,443

 

 

3,203

 

 

(35)

 

2005

 

06/26/2015

 

Child Day Care Services

 

Champlin

 

MN

 

 

 

 

 

862

 

 

1,526

 

 

 -

 

 

 -

 

 

862

 

 

1,526

 

 

2,388

 

 

(46)

 

1938

 

06/26/2015

 

Child Day Care Services

 

Plymouth

 

MN

 

 

 

 

 

1,737

 

 

1,925

 

 

 -

 

 

 -

 

 

1,737

 

 

1,925

 

 

3,662

 

 

(46)

 

1950

 

06/26/2015

 

Automotive Repair and Maintenance

 

Champaign

 

IL

 

 

 

 

 

338

 

 

886

 

 

 -

 

 

 -

 

 

338

 

 

886

 

 

1,224

 

 

(18)

 

2007

 

06/30/2015

 

Automotive Repair and Maintenance

 

Danville

 

IL

 

 

 

 

 

600

 

 

844

 

 

 -

 

 

 -

 

 

600

 

 

844

 

 

1,444

 

 

(23)

 

1970

 

06/30/2015

 

Automotive Repair and Maintenance

 

Homewood

 

IL

 

 

 

 

 

295

 

 

768

 

 

 -

 

 

 -

 

 

295

 

 

768

 

 

1,063

 

 

(16)

 

1973

 

06/30/2015

 

Automotive Repair and Maintenance

 

Macomb

 

IL

 

 

 

 

 

397

 

 

746

 

 

 -

 

 

 -

 

 

397

 

 

746

 

 

1,143

 

 

(16)

 

1992

 

06/30/2015

 

Automotive Repair and Maintenance

 

Normal

 

IL

 

 

 

 

 

694

 

 

470

 

 

 -

 

 

 -

 

 

694

 

 

470

 

 

1,164

 

 

(13)

 

1995

 

06/30/2015

 

Automotive Repair and Maintenance

 

Springfield

 

IL

 

 

 

 

 

234

 

 

458

 

 

 -

 

 

 -

 

 

234

 

 

458

 

 

692

 

 

(9)

 

1986

 

06/30/2015

 

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

 

Selmer

 

TN

 

 

 

 

 

1,122

 

 

5,613

 

 

 -

 

 

 -

 

 

1,122

 

 

5,613

 

 

6,735

 

 

(126)

 

1995

 

06/30/2015

 

Motion Picture and Video Industries

 

Humble

 

TX

 

 

 

 

 

2,532

 

 

139

 

 

 -

 

 

7,988

 

 

2,532

 

 

8,127

 

 

10,659

 

 

 -

 

 

 

06/30/2015

 

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

 

Beloit

 

WI

 

 

 

 

 

666

 

 

3,425

 

 

 -

 

 

 -

 

 

666

 

 

3,425

 

 

4,091

 

 

(71)

 

1926

 

06/30/2015

 

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

 

Waukesha

 

WI

 

 

 

 

 

2,577

 

 

8,710

 

 

 -

 

 

 -

 

 

2,577

 

 

8,710

 

 

11,287

 

 

(180)

 

1911

 

06/30/2015

 

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

 

Lombard

 

IL

 

 

 

 

 

2,040

 

 

5,923

 

 

 -

 

 

 -

 

 

2,040

 

 

5,923

 

 

7,963

 

 

(93)

 

1968

 

07/17/2015

 

Metal and Mineral (except Petroleum) Merchant Wholesalers

 

Louisville

 

KY

 

 

 

 

 

1,165

 

 

 -

 

 

 -

 

 

 -

 

 

1,165

 

 

 -

 

 

1,165

 

 

 -

 

1962

 

07/17/2015

 

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

 

Willoughby

 

OH

 

 

 

 

 

395

 

 

1,396

 

 

 -

 

 

 -

 

 

395

 

 

1,396

 

 

1,791

 

 

(22)

 

1979

 

07/17/2015

 

F-23


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing

 

Hudson

 

WI

 

 

 

 

 

502

 

 

4,960

 

 

 -

 

 

 -

 

 

502

 

 

4,960

 

 

5,462

 

 

(75)

 

1981

 

07/17/2015

 

Restaurants – Limited Service

 

Greenwood

 

SC

 

 

 

 

 

1,185

 

 

937

 

 

 -

 

 

 -

 

 

1,185

 

 

937

 

 

2,122

 

 

(18)

 

2003

 

07/27/2015

 

Motion Picture and Video Industries

 

Lawrenceville

 

GA

 

 

 

 

 

6,077

 

 

153

 

 

 -

 

 

2,836

 

 

6,077

 

 

2,989

 

 

9,066

 

 

 -

 

 

 

07/28/2015

 

Health Clubs

 

Summerville

 

SC

 

 

 

 

 

1,026

 

 

3,203

 

 

 -

 

 

 -

 

 

1,026

 

 

3,203

 

 

4,229

 

 

(53)

 

1993

 

07/29/2015

 

Psychiatric and Substance Abuse Hospitals

 

Asheville

 

NC

 

 

 

 

 

286

 

 

975

 

 

 -

 

 

 -

 

 

286

 

 

975

 

 

1,261

 

 

(17)

 

2000

 

07/31/2015

 

Psychiatric and Substance Abuse Hospitals

 

Clyde

 

NC

 

 

 

 

 

164

 

 

263

 

 

 -

 

 

 -

 

 

164

 

 

263

 

 

427

 

 

(7)

 

1978

 

07/31/2015

 

Restaurants – Full Service

 

Jersey Village

 

TX

 

 

 

 

 

486

 

 

1,192

 

 

 -

 

 

 -

 

 

486

 

 

1,192

 

 

1,678

 

 

(19)

 

1982

 

08/11/2015

 

Restaurants – Full Service

 

San Antonio

 

TX

 

 

 

 

 

1,564

 

 

1,872

 

 

 -

 

 

 -

 

 

1,564

 

 

1,872

 

 

3,436

 

 

(31)

 

2014

 

08/11/2015

 

Restaurants – Limited Service

 

Mission

 

KS

 

 

 

 

 

500

 

 

 -

 

 

 -

 

 

 -

 

 

500

 

 

 -

 

 

500

 

 

 -

 

2001

 

08/12/2015

 

Restaurants – Limited Service

 

Blue Springs

 

MO

 

 

 

 

 

429

 

 

 -

 

 

 -

 

 

 -

 

 

429

 

 

 -

 

 

429

 

 

 -

 

1993

 

08/12/2015

 

Restaurants – Limited Service

 

Blue Springs

 

MO

 

 

 

 

 

367

 

 

 -

 

 

 -

 

 

 -

 

 

367

 

 

 -

 

 

367

 

 

 -

 

2001

 

08/12/2015

 

Restaurants – Limited Service

 

Independence

 

MO

 

 

 

 

 

388

 

 

 -

 

 

 -

 

 

 -

 

 

388

 

 

 -

 

 

388

 

 

 -

 

1994

 

08/12/2015

 

Restaurants – Limited Service

 

Independence

 

MO

 

 

 

 

 

316

 

 

 -

 

 

 -

 

 

 -

 

 

316

 

 

 -

 

 

316

 

 

 -

 

1994

 

08/12/2015

 

Restaurants – Limited Service

 

Independence

 

MO

 

 

 

 

 

388

 

 

 -

 

 

 -

 

 

 -

 

 

388

 

 

 -

 

 

388

 

 

 -

 

2001

 

08/12/2015

 

Restaurants – Limited Service

 

Kansas City

 

MO

 

 

 

 

 

286

 

 

 -

 

 

 -

 

 

 -

 

 

286

 

 

 -

 

 

286

 

 

 -

 

1998

 

08/12/2015

 

Restaurants – Limited Service

 

Kansas City

 

MO

 

 

 

 

 

306

 

 

 -

 

 

 -

 

 

 -

 

 

306

 

 

 -

 

 

306

 

 

 -

 

1998

 

08/12/2015

 

Restaurants – Limited Service

 

Lee's Summit

 

MO

 

 

 

 

 

337

 

 

 -

 

 

 -

 

 

 -

 

 

337

 

 

 -

 

 

337

 

 

 -

 

2000

 

08/12/2015

 

Motion Picture and Video Industries

 

Jacinto City

 

TX

 

 

 

 

 

1,357

 

 

6,178

 

 

 -

 

 

 -

 

 

1,357

 

 

6,178

 

 

7,535

 

 

(157)

 

1998

 

08/12/2015

 

Restaurants – Full Service

 

Belvidere

 

IL

 

 

 

 

 

688

 

 

635

 

 

 -

 

 

 -

 

 

688

 

 

635

 

 

1,323

 

 

(12)

 

2007

 

08/20/2015

 

Restaurants – Full Service

 

Freeport

 

IL

 

 

 

 

 

561

 

 

2,214

 

 

 -

 

 

 -

 

 

561

 

 

2,214

 

 

2,775

 

 

(22)

 

1993

 

08/20/2015

 

Restaurants – Full Service

 

Galesburg

 

IL

 

 

 

 

 

776

 

 

2,040

 

 

 -

 

 

 -

 

 

776

 

 

2,040

 

 

2,816

 

 

(24)

 

1993

 

08/20/2015

 

Restaurants – Full Service

 

Jacksonville

 

IL

 

 

 

 

 

670

 

 

1,494

 

 

 -

 

 

 -

 

 

670

 

 

1,494

 

 

2,164

 

 

(18)

 

2007

 

08/20/2015

 

Restaurants – Full Service

 

Savoy

 

IL

 

 

 

 

 

703

 

 

1,091

 

 

 -

 

 

 -

 

 

703

 

 

1,091

 

 

1,794

 

 

(18)

 

2007

 

08/20/2015

 

Restaurants – Full Service

 

Springfield

 

IL

 

 

 

 

 

781

 

 

1,163

 

 

 -

 

 

 -

 

 

781

 

 

1,163

 

 

1,944

 

 

(20)

 

2004

 

08/20/2015

 

Health Clubs

 

Monroe

 

WA

 

 

 

 

 

1,643

 

 

2,552

 

 

 -

 

 

 -

 

 

1,643

 

 

2,552

 

 

4,195

 

 

(38)

 

2004

 

08/20/2015

 

Support Activities for Air Transportation

 

Grand Junction

 

CO

 

 

 

 

 

472

 

 

8,967

 

 

 -

 

 

 -

 

 

472

 

 

8,967

 

 

9,439

 

 

(110)

 

2015

 

08/21/2015

 

Bowling Centers

 

Richland

 

WA

 

 

 

 

 

1,180

 

 

2,185

 

 

 -

 

 

 -

 

 

1,180

 

 

2,185

 

 

3,365

 

 

(41)

 

1960

 

08/21/2015

 

Consumer Goods Rental

 

Harrison

 

AR

 

 

 

 

 

294

 

 

777

 

 

 -

 

 

 -

 

 

294

 

 

777

 

 

1,071

 

 

(7)

 

2008

 

08/26/2015

 

Consumer Goods Rental

 

Jonesboro

 

AR

 

 

 

 

 

232

 

 

941

 

 

 -

 

 

 -

 

 

232

 

 

941

 

 

1,173

 

 

(7)

 

2007

 

08/26/2015

 

Consumer Goods Rental

 

North Little Rock

 

AR

 

 

 

 

 

371

 

 

1,043

 

 

 -

 

 

 -

 

 

371

 

 

1,043

 

 

1,414

 

 

(12)

 

1999

 

08/26/2015

 

Restaurants – Limited Service

 

Sierra Vista

 

AZ

 

 

 

 

 

384

 

 

1,035

 

 

 -

 

 

 -

 

 

384

 

 

1,035

 

 

1,419

 

 

(12)

 

2005

 

08/27/2015

 

Restaurants – Limited Service

 

Tucson

 

AZ

 

 

 

 

 

522

 

 

508

 

 

 -

 

 

 -

 

 

522

 

 

508

 

 

1,030

 

 

(8)

 

1990

 

08/27/2015

 

Restaurants – Limited Service

 

Tucson

 

AZ

 

 

 

 

 

361

 

 

639

 

 

 -

 

 

 -

 

 

361

 

 

639

 

 

1,000

 

 

(9)

 

1989

 

08/27/2015

 

Restaurants – Limited Service

 

Tucson

 

AZ

 

 

 

 

 

514

 

 

347

 

 

 -

 

 

 -

 

 

514

 

 

347

 

 

861

 

 

(7)

 

1990

 

08/27/2015

 

Other Professional, Scientific, and Technical Services

 

Cortez

 

FL

 

 

(f)

 

 

256

 

 

879

 

 

 -

 

 

 -

 

 

256

 

 

879

 

 

1,135

 

 

(10)

 

1974

 

08/31/2015

 

Amusement Parks and Arcades

 

Monticello

 

IN

 

 

 

 

 

20,033

 

 

 -

 

 

 -

 

 

 -

 

 

20,033

 

 

 -

 

 

20,033

 

 

 -

 

 

 

09/01/2015

 

Restaurants – Full Service

 

Milan

 

MI

 

 

 

 

 

322

 

 

488

 

 

 -

 

 

175

 

 

322

 

 

663

 

 

985

 

 

(11)

 

1978

 

09/01/2015

 

Elementary and Secondary Schools

 

Los Angeles

 

CA

 

 

 

 

 

9,745

 

 

5,021

 

 

 -

 

 

105

 

 

9,745

 

 

5,126

 

 

14,871

 

 

(63)

 

1981

 

09/09/2015

 

Restaurants – Limited Service

 

Athens

 

AL

 

 

 

 

 

401

 

 

631

 

 

 -

 

 

 -

 

 

401

 

 

631

 

 

1,032

 

 

(6)

 

1976

 

09/16/2015

 

Restaurants – Limited Service

 

Dawsonville

 

GA

 

 

 

 

 

507

 

 

647

 

 

 -

 

 

 -

 

 

507

 

 

647

 

 

1,154

 

 

(7)

 

1997

 

09/16/2015

 

Restaurants – Limited Service

 

East Ellijay

 

GA

 

 

 

 

 

588

 

 

476

 

 

 -

 

 

 -

 

 

588

 

 

476

 

 

1,064

 

 

(7)

 

2005

 

09/16/2015

 

Restaurants – Limited Service

 

Jasper

 

GA

 

 

 

 

 

316

 

 

738

 

 

 -

 

 

 -

 

 

316

 

 

738

 

 

1,054

 

 

(8)

 

2006

 

09/16/2015

 

Restaurants – Limited Service

 

Roswell

 

GA

 

 

 

 

 

268

 

 

475

 

 

 -

 

 

 -

 

 

268

 

 

475

 

 

743

 

 

(5)

 

1978

 

09/16/2015

 

Furniture Stores

 

Hobbs

 

NM

 

 

 

 

 

1,805

 

 

8,828

 

 

 -

 

 

 -

 

 

1,805

 

 

8,828

 

 

10,633

 

 

(55)

 

2009

 

09/16/2015

 

Restaurants – Limited Service

 

Lawrenceburg

 

TN

 

 

 

 

 

283

 

 

388

 

 

 -

 

 

 -

 

 

283

 

 

388

 

 

671

 

 

(4)

 

1979

 

09/16/2015

 

Restaurants – Limited Service

 

Springfield

 

TN

 

 

 

 

 

417

 

 

545

 

 

 -

 

 

 -

 

 

417

 

 

545

 

 

962

 

 

(6)

 

1976

 

09/16/2015

 

Lessors of Real Estate

 

Houston

 

TX

 

 

(f)

 

 

1,603

 

 

5,711

 

 

 -

 

 

 -

 

 

1,603

 

 

5,711

 

 

7,314

 

 

(39)

 

2015

 

09/16/2015

 

Furniture Stores

 

Lubbock

 

TX

 

 

 

 

 

1,512

 

 

7,836

 

 

 -

 

 

 -

 

 

1,512

 

 

7,836

 

 

9,348

 

 

(43)

 

2005

 

09/16/2015

 

Child Day Care Services

 

Charlotte

 

NC

 

 

 

 

 

609

 

 

1,526

 

 

 -

 

 

 -

 

 

609

 

 

1,526

 

 

2,135

 

 

(15)

 

2006

 

09/17/2015

 

Child Day Care Services

 

Matthews

 

NC

 

 

 

 

 

616

 

 

1,520

 

 

 -

 

 

 -

 

 

616

 

 

1,520

 

 

2,136

 

 

(12)

 

2003

 

09/17/2015

 

 

F-24


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Other Professional, Scientific, and Technical Services

 

Tinley Park

 

IL

 

 

(f)

 

 

265

 

 

619

 

 

 -

 

 

 -

 

 

265

 

 

619

 

 

884

 

 

(7)

 

1971

 

09/18/2015

 

Motion Picture and Video Industries

 

McKinney

 

TX

 

 

 

 

 

2,714

 

 

827

 

 

 -

 

 

2,142

 

 

2,714

 

 

2,969

 

 

5,683

 

 

 -

 

 

 

09/22/2015

 

Other Professional, Scientific, and Technical Services

 

Des Moines

 

IA

 

 

(f)

 

 

188

 

 

231

 

 

 -

 

 

 -

 

 

188

 

 

231

 

 

419

 

 

(3)

 

1983

 

09/24/2015

 

Sporting Goods, Hobby, and Musical Instrument Stores

 

Greensboro

 

NC

 

 

 

 

 

1,894

 

 

6,998

 

 

 -

 

 

 -

 

 

1,894

 

 

6,998

 

 

8,892

 

 

(45)

 

2005

 

09/25/2015

 

Automobile Dealers

 

Midwest City

 

OK

 

 

 

 

 

194

 

 

361

 

 

 -

 

 

 -

 

 

194

 

 

361

 

 

555

 

 

(3)

 

1965

 

09/25/2015

 

Automobile Dealers

 

Moore

 

OK

 

 

 

 

 

1,290

 

 

1,853

 

 

 -

 

 

 -

 

 

1,290

 

 

1,853

 

 

3,143

 

 

(19)

 

1990

 

09/25/2015

 

Automobile Dealers

 

Oklahoma City

 

OK

 

 

 

 

 

1,969

 

 

4,746

 

 

 -

 

 

 -

 

 

1,969

 

 

4,746

 

 

6,715

 

 

(44)

 

1978

 

09/25/2015

 

Outpatient Care Centers

 

Wickenburg

 

AZ

 

 

 

 

 

1,264

 

 

5,647

 

 

 -

 

 

 -

 

 

1,264

 

 

5,647

 

 

6,911

 

 

(46)

 

1994

 

09/30/2015

 

Outpatient Care Centers

 

Wickenburg

 

AZ

 

 

 

 

 

295

 

 

1,274

 

 

46

 

 

 -

 

 

341

 

 

1,274

 

 

1,615

 

 

(13)

 

1986

 

09/30/2015

 

Plastics Product Manufacturing

 

Tampa

 

FL

 

 

 

 

 

797

 

 

7,539

 

 

 -

 

 

 -

 

 

797

 

 

7,539

 

 

8,336

 

 

(66)

 

1989

 

09/30/2015

 

Outpatient Care Centers

 

Augusta

 

GA

 

 

 

 

 

3,513

 

 

1,986

 

 

 -

 

 

 -

 

 

3,513

 

 

1,986

 

 

5,499

 

 

(25)

 

1987

 

09/30/2015

 

Plastics Product Manufacturing

 

Thomasville

 

GA

 

 

 

 

 

1,449

 

 

3,065

 

 

 -

 

 

 -

 

 

1,449

 

 

3,065

 

 

4,514

 

 

(34)

 

1973

 

09/30/2015

 

Plastics Product Manufacturing

 

Milan

 

TN

 

 

 

 

 

123

 

 

1,578

 

 

 -

 

 

 -

 

 

123

 

 

1,578

 

 

1,701

 

 

(14)

 

1977

 

09/30/2015

 

Restaurants – Full Service

 

Arden Hills

 

MN

 

 

 

 

 

723

 

 

68

 

 

 -

 

 

 -

 

 

723

 

 

68

 

 

791

 

 

 -

 

 

 

10/09/2015

 

Automotive Repair and Maintenance

 

Garfield Heights

 

OH

 

 

 

 

 

110

 

 

433

 

 

 -

 

 

 -

 

 

110

 

 

433

 

 

543

 

 

(5)

 

1989

 

10/09/2015

 

Motion Picture and Video Industries

 

Orlando

 

FL

 

 

 

 

 

4,576

 

 

8,451

 

 

 -

 

 

 -

 

 

4,576

 

 

8,451

 

 

13,027

 

 

(76)

 

1999

 

10/16/2015

 

Motion Picture and Video Industries

 

Houston

 

TX

 

 

 

 

 

1,998

 

 

873

 

 

 -

 

 

2,389

 

 

1,998

 

 

3,262

 

 

5,260

 

 

 -

 

 

 

10/21/2015

 

Health Clubs

 

Sacramento

 

CA

 

 

 

 

 

1,682

 

 

4,842

 

 

 -

 

 

 -

 

 

1,682

 

 

4,842

 

 

6,524

 

 

(32)

 

2004

 

10/23/2015

 

Other Professional, Scientific, and Technical Services

 

Englewood

 

CO

 

 

(f)

 

 

1,992

 

 

4,741

 

 

 -

 

 

 -

 

 

1,992

 

 

4,741

 

 

6,733

 

 

(27)

 

1987

 

10/23/2015

 

Child Day Care Services

 

Golden Valley

 

MN

 

 

 

 

 

1,012

 

 

696

 

 

 -

 

 

 -

 

 

1,012

 

 

696

 

 

1,708

 

 

(7)

 

1959

 

10/27/2015

 

Motion Picture and Video Industries

 

Houston

 

TX

 

 

 

 

 

2,034

 

 

371

 

 

 -

 

 

3

 

 

2,034

 

 

374

 

 

2,408

 

 

 -

 

 

 

10/28/2015

 

Restaurants – Full Service

 

Wheaton

 

IL

 

 

 

 

 

1,976

 

 

1,342

 

 

 -

 

 

 -

 

 

1,976

 

 

1,342

 

 

3,318

 

 

(16)

 

1994

 

10/30/2015

 

Consumer Goods Rental

 

Tacoma

 

WA

 

 

(f)

 

 

271

 

 

1,519

 

 

 -

 

 

 -

 

 

271

 

 

1,519

 

 

1,790

 

 

(9)

 

1948

 

11/03/2015

 

Automotive Repair and Maintenance

 

Flint

 

MI

 

 

 

 

 

127

 

 

204

 

 

 -

 

 

 -

 

 

127

 

 

204

 

 

331

 

 

(2)

 

1996

 

11/10/2015

 

Automotive Repair and Maintenance

 

Flint

 

MI

 

 

 

 

 

206

 

 

225

 

 

 -

 

 

 -

 

 

206

 

 

225

 

 

431

 

 

(2)

 

2003

 

11/10/2015

 

Automotive Repair and Maintenance

 

Houghton Lake

 

MI

 

 

 

 

 

73

 

 

78

 

 

 -

 

 

 -

 

 

73

 

 

78

 

 

151

 

 

(1)

 

1990

 

11/10/2015

 

Automotive Repair and Maintenance

 

Owosso

 

MI

 

 

 

 

 

58

 

 

242

 

 

 -

 

 

 -

 

 

58

 

 

242

 

 

300

 

 

(2)

 

1983

 

11/10/2015

 

Restaurants – Full Service

 

Midwest City

 

OK

 

 

 

 

 

1,121

 

 

385

 

 

 -

 

 

 -

 

 

1,121

 

 

385

 

 

1,506

 

 

(5)

 

1998

 

11/12/2015

 

Other Professional, Scientific, and Technical Services

 

Austell

 

GA

 

 

(f)

 

 

177

 

 

340

 

 

 -

 

 

 -

 

 

177

 

 

340

 

 

517

 

 

(2)

 

1994

 

11/19/2015

 

Other Professional, Scientific, and Technical Services

 

Villa Rica

 

GA

 

 

(f)

 

 

138

 

 

351

 

 

 -

 

 

 -

 

 

138

 

 

351

 

 

489

 

 

(2)

 

2002

 

11/19/2015

 

Health Clubs

 

Peoria

 

AZ

 

 

(f)

 

 

1,866

 

 

5,400

 

 

 -

 

 

 -

 

 

1,866

 

 

5,400

 

 

7,266

 

 

(14)

 

2009

 

11/20/2015

 

Printing and Related Support Activities

 

New Century

 

KS

 

 

 

 

 

1,058

 

 

6,931

 

 

 -

 

 

 -

 

 

1,058

 

 

6,931

 

 

7,989

 

 

(25)

 

1988

 

11/23/2015

 

Other Professional, Scientific, and Technical Services

 

St. Louis

 

MO

 

 

(f)

 

 

263

 

 

643

 

 

 -

 

 

 -

 

 

263

 

 

643

 

 

906

 

 

(3)

 

1989

 

11/24/2015

 

Restaurants – Limited Service

 

Creston

 

IA

 

 

(f)

 

 

179

 

 

690

 

 

 -

 

 

367

 

 

179

 

 

1,057

 

 

1,236

 

 

(2)

 

1982

 

11/25/2015

 

Restaurants – Limited Service

 

Des Moines

 

IA

 

 

(f)

 

 

272

 

 

789

 

 

 -

 

 

22

 

 

272

 

 

811

 

 

1,083

 

 

(2)

 

1982

 

11/25/2015

 

Restaurants – Limited Service

 

Oskaloosa

 

IA

 

 

(f)

 

 

194

 

 

640

 

 

 -

 

 

277

 

 

194

 

 

917

 

 

1,111

 

 

(2)

 

1980

 

11/25/2015

 

Restaurants – Limited Service

 

Ottumwa

 

IA

 

 

(f)

 

 

136

 

 

726

 

 

 -

 

 

221

 

 

136

 

 

947

 

 

1,083

 

 

(3)

 

1960

 

11/25/2015

 

Other Electrical Equipment and Component Manufacturing

 

Niagara Falls

 

NY

 

 

 

 

 

715

 

 

2,571

 

 

 -

 

 

 -

 

 

715

 

 

2,571

 

 

3,286

 

 

(13)

 

1965

 

12/03/2015

 

Lawn and Garden Equipment and Supplies Stores

 

Alamosa

 

CO

 

 

 

 

 

1,024

 

 

3,781

 

 

 -

 

 

 -

 

 

1,024

 

 

3,781

 

 

4,805

 

 

(13)

 

2002

 

12/04/2015

 

Lawn and Garden Equipment and Supplies Stores

 

Colorado Springs

 

CO

 

 

 

 

 

2,280

 

 

2,766

 

 

 -

 

 

 -

 

 

2,280

 

 

2,766

 

 

5,046

 

 

(10)

 

2012

 

12/04/2015

 

Lawn and Garden Equipment and Supplies Stores

 

Elizabeth

 

CO

 

 

 

 

 

1,810

 

 

3,796

 

 

 -

 

 

 -

 

 

1,810

 

 

3,796

 

 

5,606

 

 

(12)

 

2004

 

12/04/2015

 

Lawn and Garden Equipment and Supplies Stores

 

La Junta

 

CO

 

 

 

 

 

985

 

 

1,808

 

 

 -

 

 

 -

 

 

985

 

 

1,808

 

 

2,793

 

 

(6)

 

1974

 

12/04/2015

 

Lawn and Garden Equipment and Supplies Stores

 

La Veta

 

CO

 

 

 

 

 

324

 

 

217

 

 

 -

 

 

 -

 

 

324

 

 

217

 

 

541

 

 

(1)

 

1985

 

12/04/2015

 

Lawn and Garden Equipment and Supplies Stores

 

Lamar

 

CO

 

 

 

 

 

1,574

 

 

749

 

 

 -

 

 

 -

 

 

1,574

 

 

749

 

 

2,323

 

 

(5)

 

1982

 

12/04/2015

 

Lawn and Garden Equipment and Supplies Stores

 

Limon

 

CO

 

 

 

 

 

508

 

 

263

 

 

 -

 

 

 -

 

 

508

 

 

263

 

 

771

 

 

(2)

 

1982

 

12/04/2015

 

Lawn and Garden Equipment and Supplies Stores

 

Pueblo

 

CO

 

 

 

 

 

1,168

 

 

4,439

 

 

 -

 

 

 -

 

 

1,168

 

 

4,439

 

 

5,607

 

 

(11)

 

1968

 

12/04/2015

 

Child Day Care Services

 

Madison

 

CT

 

 

 

 

 

487

 

 

 -

 

 

 -

 

 

 -

 

 

487

 

 

 -

 

 

487

 

 

 -

 

1965

 

12/04/2015

 

Child Day Care Services

 

O'Fallon

 

MO

 

 

(f)

 

 

898

 

 

2,974

 

 

 -

 

 

 -

 

 

898

 

 

2,974

 

 

3,872

 

 

(7)

 

2007

 

12/10/2015

 

Other Textile Product Mills

 

Pauls Valley

 

OK

 

 

 

 

 

1,069

 

 

2,666

 

 

 -

 

 

 -

 

 

1,069

 

 

2,666

 

 

3,735

 

 

(13)

 

1974

 

12/10/2015

 

Other Textile Product Mills

 

Wichita Falls

 

TX

 

 

 

 

 

1,368

 

 

2,075

 

 

 -

 

 

 -

 

 

1,368

 

 

2,075

 

 

3,443

 

 

(14)

 

1969

 

12/10/2015

 

F-25


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Descriptions (a)

 

 

 

Initial Cost to Company

 

Costs Capitalized Subsequent to Acquisition

 

Gross amount at December 31, 2015 (b) (c)

 

 

 

 

 

 

 

Tenant Industry

    

City

    

St

    

Encumbrances

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Land &
Improvements

    

Building &
Improvements

    

Total

    

Accumulated
Depreciation (d) (e)

    

Year
Constructed

    

Date Acquired

 

Offices of Physicians

 

Miami

 

FL

 

 

(f)

 

 

511

 

 

2,498

 

 

 -

 

 

 -

 

 

511

 

 

2,498

 

 

3,009

 

 

(6)

 

2008

 

12/14/2015

 

Other Miscellaneous Manufacturing

 

Burnham

 

ME

 

 

 

 

 

728

 

 

5,769

 

 

 -

 

 

 -

 

 

728

 

 

5,769

 

 

6,497

 

 

(19)

 

1950

 

12/15/2015

 

Other Miscellaneous Manufacturing

 

Guilford

 

ME

 

 

 

 

 

79

 

 

621

 

 

 -

 

 

 -

 

 

79

 

 

621

 

 

700

 

 

(2)

 

1991

 

12/15/2015

 

Other Miscellaneous Manufacturing

 

Florence

 

WI

 

 

 

 

 

313

 

 

987

 

 

 -

 

 

 -

 

 

313

 

 

987

 

 

1,300

 

 

(3)

 

1988

 

12/15/2015

 

Other Fabricated Metal Product Manufacturing

 

Grand Junction

 

CO

 

 

 

 

 

1,817

 

 

5,634

 

 

 -

 

 

 -

 

 

1,817

 

 

5,634

 

 

7,451

 

 

 -

 

1970

 

12/16/2015

 

Home Furnishings Stores

 

Bloomington

 

IL

 

 

 

 

 

404

 

 

1,178

 

 

 -

 

 

 -

 

 

404

 

 

1,178

 

 

1,582

 

 

 -

 

1986

 

12/16/2015

 

Home Furnishings Stores

 

Bloomington

 

IL

 

 

 

 

 

438

 

 

1,314

 

 

 -

 

 

 -

 

 

438

 

 

1,314

 

 

1,752

 

 

 -

 

1998

 

12/16/2015

 

Home Furnishings Stores

 

Bloomington

 

IL

 

 

 

 

 

204

 

 

377

 

 

 -

 

 

 -

 

 

204

 

 

377

 

 

581

 

 

 -

 

1970

 

12/16/2015

 

Home Furnishings Stores

 

Bourbonnais

 

IL

 

 

 

 

 

476

 

 

625

 

 

 -

 

 

 -

 

 

476

 

 

625

 

 

1,101

 

 

 -

 

1995

 

12/16/2015

 

Home Furnishings Stores

 

Champaign

 

IL

 

 

 

 

 

496

 

 

1,267

 

 

 -

 

 

 -

 

 

496

 

 

1,267

 

 

1,763

 

 

 -

 

2000

 

12/16/2015

 

Home Furnishings Stores

 

Lincoln

 

IL

 

 

 

 

 

322

 

 

1,190

 

 

 -

 

 

 -

 

 

322

 

 

1,190

 

 

1,512

 

 

 -

 

1996

 

12/16/2015

 

Home Furnishings Stores

 

Peoria

 

IL

 

 

 

 

 

607

 

 

745

 

 

 -

 

 

 -

 

 

607

 

 

745

 

 

1,352

 

 

 -

 

1999

 

12/16/2015

 

Home Furnishings Stores

 

Springfield

 

IL

 

 

 

 

 

1,015

 

 

1,128

 

 

 -

 

 

 -

 

 

1,015

 

 

1,128

 

 

2,143

 

 

 -

 

2013

 

12/16/2015

 

Automotive Repair and Maintenance

 

Minneapolis

 

MN

 

 

 

 

 

226

 

 

799

 

 

 -

 

 

 -

 

 

226

 

 

799

 

 

1,025

 

 

 -

 

1969

 

12/16/2015

 

Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers

 

Crestwood

 

IL

 

 

(f)

 

 

10,376

 

 

2,486

 

 

 -

 

 

 -

 

 

10,376

 

 

2,486

 

 

12,862

 

 

 -

 

1994

 

12/17/2015

 

Other Miscellaneous Manufacturing

 

Riviera Beach

 

FL

 

 

 

 

 

1,204

 

 

3,754

 

 

 -

 

 

 -

 

 

1,204

 

 

3,754

 

 

4,958

 

 

 -

 

1979

 

12/18/2015

 

Other Miscellaneous Manufacturing

 

Concord

 

NC

 

 

 

 

 

1,079

 

 

2,176

 

 

 -

 

 

 -

 

 

1,079

 

 

2,176

 

 

3,255

 

 

 -

 

1988

 

12/18/2015

 

Offices of Physicians

 

Amarillo

 

TX

 

 

 

 

 

266

 

 

541

 

 

 -

 

 

 -

 

 

266

 

 

541

 

 

807

 

 

 -

 

1967

 

12/18/2015

 

Amusement Parks and Arcades

 

Mansfield

 

TX

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

2009

 

12/18/2015

 

Amusement Parks and Arcades

 

Roanoke

 

TX

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

2011

 

12/18/2015

 

Amusement Parks and Arcades

 

Waco

 

TX

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

2012

 

12/18/2015

 

Restaurants – Full Service

 

St. Cloud

 

MN

 

 

(f)

 

 

839

 

 

3,171

 

 

 -

 

 

 -

 

 

839

 

 

3,171

 

 

4,010

 

 

 -

 

1999

 

12/21/2015

 

Offices of Physicians

 

Crest Hill

 

IL

 

 

 

 

 

918

 

 

6,499

 

 

 -

 

 

 -

 

 

918

 

 

6,499

 

 

7,417

 

 

 -

 

2009

 

12/23/2015

 

Offices of Physicians

 

Naperville

 

IL

 

 

 

 

 

1,501

 

 

2,489

 

 

 -

 

 

 -

 

 

1,501

 

 

2,489

 

 

3,990

 

 

 -

 

2005

 

12/23/2015

 

Other Ambulatory Health Care Services

 

Flint

 

MI

 

 

 

 

 

345

 

 

 -

 

 

 -

 

 

 -

 

 

345

 

 

 -

 

 

345

 

 

 -

 

 

 

12/23/2015

 

Home Furnishings Stores

 

Kennesaw

 

GA

 

 

(f)

 

 

5,000

 

 

9,026

 

 

 -

 

 

 -

 

 

5,000

 

 

9,026

 

 

14,026

 

 

 -

 

1997

 

12/29/2015

 

Home Furnishings Stores

 

Norcross

 

GA

 

 

 

 

 

4,465

 

 

7,385

 

 

 -

 

 

 -

 

 

4,465

 

 

7,385

 

 

11,850

 

 

 -

 

1997

 

12/29/2015

 

Consumer Goods Rental

 

Trenton

 

IL

 

 

 

 

 

1,401

 

 

5,894

 

 

 -

 

 

 -

 

 

1,401

 

 

5,894

 

 

7,295

 

 

 -

 

1989

 

12/29/2015

 

Consumer Goods Rental

 

Anderson

 

IN

 

 

 

 

 

285

 

 

933

 

 

 -

 

 

 -

 

 

285

 

 

933

 

 

1,218

 

 

 -

 

1988

 

12/29/2015

 

Consumer Goods Rental

 

Salina

 

KS

 

 

 

 

 

335

 

 

762

 

 

 -

 

 

 -

 

 

335

 

 

762

 

 

1,097

 

 

 -

 

1972

 

12/29/2015

 

Consumer Goods Rental

 

Seguin

 

TX

 

 

 

 

 

466

 

 

641

 

 

 -

 

 

 -

 

 

466

 

 

641

 

 

1,107

 

 

 -

 

1985

 

12/29/2015

 

Restaurants – Full Service

 

Muncie

 

IN

 

 

 

 

 

261

 

 

 -

 

 

 -

 

 

 -

 

 

261

 

 

 -

 

 

261

 

 

 -

 

1972

 

12/30/2015

 

Restaurants – Limited Service

 

Spartanburg

 

SC

 

 

(f)

 

 

129

 

 

393

 

 

 -

 

 

 -

 

 

129

 

 

393

 

 

522

 

 

 -

 

2015

 

12/30/2015

 

Restaurants – Full Service

 

Austin

 

TX

 

 

 

 

 

1,546

 

 

1,720

 

 

 -

 

 

 -

 

 

1,546

 

 

1,720

 

 

3,266

 

 

 -

 

1919

 

12/30/2015

 

 

 

 

 

 

 

$

195,814

 

$

1,159,806

 

$

2,337,558

 

$

27,676

 

$

152,836

 

$

1,187,482

 

$

2,490,394

 

$

3,677,876

 

$

(172,145)

 

 

 

 

 

 


(a)

As of December 31, 2015, we had investments in 1,310 single-tenant real estate property locations including 1,296 owned properties and 14 ground lease interests; 28 of our owned properties are accounted for as direct financing receivables and are excluded from the table above.  Initial costs exclude intangible lease assets totaling $88.7 million.

(b)

The aggregate cost for federal income tax purposes is approximately $3,745.9 million.

(c)

The following is a reconciliation of total real estate carrying value for the years ended December 31, 2015, 2014 and 2013:

F-26


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

 

 

2015

 

 

2014

 

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of year

    

$

2,634,373

    

$

1,604,329

    

$

862,419

 

Additions

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

 

1,004,198

 

 

984,839

 

 

762,664

 

Improvements

 

 

80,803

 

 

70,710

 

 

25,848

 

Deductions

 

 

 

 

 

 

 

 

 

 

Provision for impairment of real estate

 

 

(1,000)

 

 

 —

 

 

 —

 

Cost of real estate sold

 

 

(40,498)

 

 

(25,505)

 

 

(37,751)

 

Reclasses to held for sale

 

 

 —

 

 

 —

 

 

(8,851)

 

Balance, end of year

 

$

3,677,876

 

$

2,634,373

 

$

1,604,329

 

 

(d)

The following is a reconciliation of accumulated depreciation for the years ended December 31, 2015, 2014 and 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

 

 

2015

 

 

2014

 

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of year

    

$

(92,665)

    

$

(40,578)

    

$

(11,811)

 

Additions

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

 

(82,479)

 

 

(52,763)

 

 

(29,453)

 

Deductions

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation associated with real estate sold

 

 

2,999

 

 

676

 

 

380

 

Reclasses to held for sale

 

 

 —

 

 

 —

 

 

306

 

Balance, end of year

 

$

(172,145)

 

$

(92,665)

 

$

(40,578)

 

 

(e)

The Company's real estate assets are depreciated using the straight-line method over the estimated useful lives of the properties, which generally ranges from 30 to 40 years for buildings and improvements and is 15 years for land improvements.

(f)

Property is collateral for non-recourse debt obligations totaling $1.4 billion issued under the Company’s STORE Master Funding debt program.

 

 

 

See report of independent registered public accounting firm.

 

 

 

F-27


 

Table of Contents

STORE Capital Corporation

Schedule IV - Mortgage Loans on Real Estate

As of December 31, 2015

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

Final

    

Periodic 

    

Final 

    

 

    

Outstanding

    

Carrying

 

 

 

Interest 

 

Maturity

 

Payment

 

Payment

 

Prior

 

face amount of

 

 amount of

 

Description

 

Rate

 

Date

 

Terms

 

 Terms

 

 Liens

 

mortgages

 

mortgages (b)

 

First mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Four restaurant properties located in North Carolina and South Carolina

 

9.09

%  

1/1/2017

 

Interest only

 

Balloon of $2.8 million

 

None

 

$

2,781

 

$

2,787

 

Five restaurant properties located in Indiana and Ohio

 

10.00

%  

12/31/2017

 

Interest only

 

Balloon of $1.0 million

 

None

 

 

1,000

 

 

1,004

 

One restaurant property located in Tennessee

 

8.50

%  

1/1/2018

 

Interest only

 

Balloon of $0.1 million

 

None

 

 

134

 

 

153

 

One health club property located in Minnesota (a)

 

7.80

%  

12/31/2020

 

Principal & Interest

 

Balloon of $1.9 million

 

None

 

 

2,000

 

 

2,030

 

Two furniture store properties located in Pennsylvania

 

8.35

%  

1/1/2028

 

Principal & Interest

 

Balloon of $3.5 million

 

None

 

 

3,761

 

 

3,843

 

29 restaurant properties located in Florida, Illinois, Louisiana and Mississippi

 

8.75

%  

7/1/2032

 

Principal & Interest

 

Balloon of $20.4 million

 

None

 

 

23,900

 

 

24,178

 

One health club property located in Kansas

 

9.00

%  

3/31/2053

 

Principal & Interest

 

Fully amortizing

 

None

 

 

14,543

 

 

14,554

 

Two health club properties located in Alabama and Georgia

 

8.75

%  

6/30/2053

 

Principal & Interest

 

Fully amortizing

 

None

 

 

6,336

 

 

6,347

 

Two automobile dealer properties located in Indiana

 

8.50

%  

6/30/2053

 

Principal & Interest

 

Fully amortizing

 

None

 

 

6,737

 

 

6,751

 

Five restaurant properties located in Tennessee

 

8.25

%  

8/31/2053

 

Principal & Interest

 

Fully amortizing

 

None

 

 

3,325

 

 

3,335

 

Two mortgage loans secured by one recreation property located in Colorado

 

8.50

%  

2/28/2055

 

Principal & Interest

 

Fully amortizing

 

None

 

 

28,435

 

 

28,928

 

Three restaurant properties located in Ohio

 

7.50

%  

12/31/2055

 

Principal & Interest

 

Fully amortizing

 

None

 

 

3,086

 

 

3,097

 

 

 

 

 

 

 

 

 

 

 

 

 

$

96,038

 

$

97,007

 

 

The following shows changes in the carrying amounts of mortgage loans receivable during the years ended December 31, 2015, 2014 and 2013 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

    

2015

    

2014

    

2013

 

Balance, beginning of year

 

$

65,432

 

$

60,917

 

$

36,345

 

Additions:

 

 

 

 

 

 

 

 

 

 

New mortgage loans

 

 

36,130

 

 

6,689

 

 

32,598

 

Other capitalized loan origination costs

 

 

576

 

 

34

 

 

49

 

Deductions:

 

 

 

 

 

 

 

 

 

 

Collections of principal (c)

 

 

(5,085)

 

 

(2,159)

 

 

(8,008)

 

Amortization of loan origination costs

 

 

(46)

 

 

(49)

 

 

(67)

 

Balance, end of year

 

$

97,007

 

$

65,432

 

$

60,917

 


(a)

Loan requires interest-only payments for 18 months followed by monthly payments of principal and interest.

(b)

The aggregate cost for federal income tax purposes is $97.0 million.

(c)

One mortgage loan was repaid in full during 2014 through a $1.9 million non-cash transaction in which the Company purchased the two underlying mortgaged properties and leased them back to the borrower. Similarly, during 2013, one mortgage loan receivable was repaid in full through a $7.9 million non-cash transaction in which the Company acquired the underlying mortgaged property and leased it back to the borrower.

 

See report of independent registered public accounting firm.

F-28