View Filing Data

March 31, 2016

December 31, 2015

Class B units

Document and Entity Information - shares shares in Millions	3 Months Ended
Document and Entity Information - shares shares in Millions	Mar. 31, 2016	Apr. 30, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2016
Entity Registrant Name	Phillips Edison Grocery Center REIT I, Inc.
Entity Central Index Key	0001476204
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		183.1

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Investment in real estate:
Land and improvements	$ 719,781	$ 719,430
Building and improvements	1,399,392	1,397,050
Acquired above-market lease assets	39,311	39,311
Acquired in-place lease assets	194,242	194,242
Total investment in real estate assets	2,352,726	2,350,033
Accumulated depreciation and amortization	(258,378)	(232,102)
Total investment in real estate assets, net	2,094,348	2,117,931
Cash and cash equivalents	10,858	40,680
Restricted cash	6,762	6,833
Other assets, net	60,297	60,804
Total assets	2,172,265	2,226,248
Liabilities:
Mortgages and loans payable, net	811,498	845,515
Acquired below-market lease intangibles, net of accumulated amortization of $15,865 and $14,259, respectively	38,176	39,782
Accounts payable – affiliates	4,150	5,278
Accounts payable and other liabilities	49,508	43,881
Total liabilities	903,332	934,456
Commitments and contingencies (Note 6)	0	0
Equity:
Preferred stock, $0.01 par value per share, 10,000 shares authorized, zero shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	0	0
Common stock, $0.01 par value per share, 1,000,000 shares authorized, 182,592 and 181,308 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	1,826	1,813
Additional paid-in capital	1,601,622	1,588,541
Accumulated other comprehensive (loss) income	(7,339)	22
Accumulated deficit	(351,919)	(323,761)
Total stockholders’ equity	1,244,190	1,266,615
Noncontrolling interests	24,743	25,177
Total equity	1,268,933	1,291,792
Total liabilities and equity	$ 2,172,265	$ 2,226,248

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Acquired below-market lease intangibles, accumulated amortization	$ 15,865	$ 14,259
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued and outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued and outstanding	182,592,000	181,308,000

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Rental income	$ 46,939	$ 44,500
Tenant recovery income	15,944	14,104
Other property income	199	343
Total revenues	63,082	58,947
Expenses:
Property operating	10,291	9,986
Real estate taxes	9,411	8,179
General and administrative	7,553	2,362
Acquisition expenses	20	1,735
Depreciation and amortization	25,706	24,730
Total expenses	52,981	46,992
Other expense:
Interest expense, net	(7,732)	(6,794)
Other expense, net	(116)	(122)
Net income	2,253	5,039
Net income attributable to noncontrolling interests	(34)	(68)
Net income attributable to stockholders	$ 2,219	$ 4,971
Earnings per common share:
Net income per share - basic and diluted	$ 0.01	$ 0.03
Weighted-average common shares outstanding:
Basic	182,246	182,988
Diluted	185,031	185,495
Comprehensive (loss) income:
Net income	$ 2,253	$ 5,039
Other comprehensive loss:
Change in unrealized loss on interest rate swaps, net	(7,361)	0
Comprehensive (loss) income	(5,108)	5,039
Comprehensive income attributable to noncontrolling interests	(34)	(68)
Comprehensive (loss) income attributable to stockholders	$ (5,142)	$ 4,971

Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total Stockholders' Equity	Noncontrolling Interest
Balance in AOCI as of January 1, 2016 at Dec. 31, 2014	$ 1,378,262	$ 1,820	$ 1,567,653	$ 0	$ (213,975)	$ 1,355,498	$ 22,764
Balance, shares at Dec. 31, 2014		182,131
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share repurchases, value	(3,341)	$ (3)	(3,338)			(3,341)
Share repurchases, shares		(514)
Change in redeemable common stock	(54,509)		(54,509)			(54,509)
Dividend reinvestment plan (DRIP), value	15,798	$ 16	15,782			15,798
Dividend reinvestment plan (DRIP), shares		1,662
Common distributions declared, $0.17 per share	(30,236)				(30,236)	(30,236)
Issuance of partnership units	4,047						4,047
Distributions to noncontrolling interests	(428)						(428)
Net income	5,039				4,971	4,971	68
Balance in AOCI as of March 31, 2016 at Mar. 31, 2015	1,314,632	$ 1,833	1,525,588	0	(239,240)	1,288,181	26,451
Balance, shares at Mar. 31, 2015		183,279
Balance in AOCI as of January 1, 2016 at Dec. 31, 2015	1,291,792	$ 1,813	1,588,541		(323,761)	1,266,615	25,177
Balance, shares at Dec. 31, 2015		181,308
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share repurchases, value	(2,162)	$ (2)	(2,160)			(2,162)
Share repurchases, shares		(212)
Dividend reinvestment plan (DRIP), value	15,256	$ 15	15,241			15,256
Dividend reinvestment plan (DRIP), shares		1,496
Change in unrealized loss on interest rate swaps	(7,361)			(7,361)		(7,361)
Common distributions declared, $0.17 per share	(30,377)				(30,377)	(30,377)
Distributions to noncontrolling interests	(468)						(468)
Net income	2,253				2,219	2,219	34
Balance in AOCI as of March 31, 2016 at Mar. 31, 2016	$ 1,268,933	$ 1,826	$ 1,601,622	$ (7,339)	$ (351,919)	$ 1,244,190	$ 24,743
Balance, shares at Mar. 31, 2016		182,592

Consolidated Statements of Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Stockholders' Equity [Abstract]
Common distributions declared, per share	$ 0.17	$ 0.17

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,253	$ 5,039
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	24,933	23,958
Net amortization of above- and below-market leases	(272)	(178)
Amortization of deferred financing expense	1,063	1,258
Loss on disposal of real estate assets	104	100
Loss on write-off of unamortized capitalized leasing commissions and deferred financing expense	52	81
Change in fair value of derivative	53	47
Straight-line rental income	(899)	(1,244)
Other	18	0
Changes in operating assets and liabilities:
Other assets	424	(2,063)
Accounts payable and other liabilities	(1,484)	469
Accounts payable – affiliates	(1,286)	1,204
Net cash provided by operating activities	24,959	28,671
CASH FLOWS FROM INVESTING ACTIVITIES:
Real estate acquisitions	0	(61,839)
Capital expenditures	(4,274)	(2,995)
Change in restricted cash	71	(506)
Net cash used in investing activities	(4,203)	(65,340)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in credit facility	(9,000)	66,800
Payments on mortgages and loans payable	(25,026)	(11,654)
Payments of deferred financing expenses	0	(557)
Distributions paid, net of DRIP	(15,064)	(14,366)
Distributions to noncontrolling interests	(306)	(134)
Repurchases of common stock	(1,182)	(4,908)
Net cash (used in) provided by financing activities	(50,578)	35,181
NET DECREASE IN CASH AND CASH EQUIVALENTS	(29,822)	(1,488)
CASH AND CASH EQUIVALENTS:
Beginning of period	40,680	15,649
End of period	10,858	14,161
SUPPLEMENTAL CASH FLOW DISCLOSURE, INCLUDING NON-CASH INVESTING AND FINANCING ACTIVITIES:
SUPPLEMENTAL CASH FLOW DISCLOSURE, INCLUDING NON-CASH INVESTING AND FINANCING ACTIVITIES:	7,478	6,021
Cash paid for interest	0	24,982
Accrued capital expenditures and deferred financing expenses	1,018	853
Change in offering costs payable to sponsor(s)	57	72
Change in distributions payable	162	294
Change in distributions payable - noncontrolling interests	980	(1,567)
Change in accrued share repurchase obligation	$ 15,256	$ 15,798

Organization	3 Months Ended
Organization	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	ORGANIZATION Phillips Edison Grocery Center REIT I, Inc., (“we,” the “Company,” “our,” or “us”) was formed as a Maryland corporation in October 2009. Substantially all of our business is conducted through Phillips Edison Grocery Center Operating Partnership I, L.P., (the “Operating Partnership”), a Delaware limited partnership formed in December 2009. We are a limited partner of the Operating Partnership, and our wholly owned subsidiary, Phillips Edison Grocery Center OP GP I LLC, is the sole general partner of the Operating Partnership. Our advisor is Phillips Edison NTR LLC (“PE-NTR”), which is directly or indirectly owned by Phillips Edison Limited Partnership (the “Phillips Edison sponsor”). Under the terms of the advisory agreement between PE-NTR and us (the “PE-NTR Agreement”), PE-NTR is responsible for the management of our day-to-day activities and the implementation of our investment strategy. We invest primarily in well-occupied, grocery-anchored neighborhood and community shopping centers having a mix of creditworthy national and regional retailers selling necessity-based goods and services in strong demographic markets throughout the United States. As of March 31, 2016, we owned fee simple interests in 147 real estate properties acquired from third parties unaffiliated with us or PE-NTR.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Set forth below is a summary of the significant accounting estimates and policies that management believes are important to the preparation of our consolidated interim financial statements. Certain of our accounting estimates are particularly important for an understanding of our financial position and results of operations and require the application of significant judgment by management. As a result, these estimates are subject to a degree of uncertainty. There have been no changes to our significant accounting policies during the three months ended March 31, 2016, except for those policies included below. For a full summary of our accounting policies, refer to our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 3, 2016.

Basis of Presentation and Principles of Consolidation—The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Readers of this Quarterly Report on Form 10-Q should refer to the audited consolidated financial statements of Phillips Edison Grocery Center REIT I, Inc. for the year ended December 31, 2015, which are included in our 2015 Annual Report on Form 10-K. In the opinion of management, all normal and recurring adjustments necessary for the fair presentation of the unaudited consolidated financial statements for the periods presented have been included in this Quarterly Report. Our results of operations for the three months ended March 31, 2016, are not necessarily indicative of the operating results expected for the full year.

The accompanying consolidated financial statements include our accounts and those of our majority-owned subsidiaries. All intercompany balances and transactions are eliminated upon consolidation.

Repurchase of Common Stock—We offer a share repurchase program which may allow certain stockholders to have their shares repurchased subject to approval and certain limitations and restrictions (see Note 8). We account for those financial instruments that represent our mandatory obligation to repurchase shares as liabilities to be reported at settlement value. When shares are presented for repurchase, we will reclassify such obligations from redeemable common stock to a liability based upon their respective settlement values.

Under our share repurchase program, the maximum amount of common stock that we may redeem, at the shareholder’s election, during any calendar year is limited, among other things, to 5% of the weighted-average number of shares outstanding during the prior calendar year. The maximum amount is reduced each reporting period by the current year share redemptions to date. In addition, the cash available for repurchases on any particular date is generally limited to the proceeds from the DRIP during the preceding four fiscal quarters, less amounts already used for repurchases during the same time period.

Reclassifications—The following line items on our consolidated balance sheets as of December 31, 2015, were reclassified to conform to the current year presentation:


•	The acquired intangible lease assets balance was separated into Acquired Above-Market Lease Assets and Acquired In-Place Lease Assets,


•	Certain unamortized debt issuance costs were reclassified from Deferred Financing Expense, Net to Other Assets, Net.

Newly Adopted and Recently Issued Accounting Pronouncements—In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Interest - Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). This update amends existing guidance to require the presentation of certain debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. In August 2015, the FASB issued ASU 2015-15: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”). This update provides guidance regarding the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. We adopted ASU 2015-03 and ASU 2015-15 on January 1, 2016, and retrospectively applied the guidance for all periods presented. Unamortized debt issuance costs of $7.9 million and $8.6 million are included in Mortgages and Loans Payable, Net as of March 31, 2016 and December 31, 2015, respectively, which were previously included in Deferred Financing Expense, Net in our consolidated balance sheets. The remaining amounts included in Other Assets, Net on our consolidated balance sheets were related to our revolving credit facility. The adoption did not have an impact on our results of operations (see Note 5).

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis to ASC Topic 810 Consolidation. ASU 2015-02 includes all reporting entities within the scope of Subtopic 810-10 Consolidation - Overall, including limited partnerships and similar legal entities, unless a scope exception applies. Overall the amendments in this update are to simplify the codification and reduce the number of consolidation models and place more emphasis on risk of loss when determining controlling financial interests. ASU 2015-02 is effective for public businesses for interim and annual periods beginning after December 15, 2015. This ASU was effective beginning in the first quarter of our year ending December 31, 2016. We have evaluated the impact of the adoption of ASU 2015-02 on our consolidated financial statements and have determined under ASU 2015-02 the Operating Partnership is considered a variable interest entity (“VIE”). We are the primary beneficiary of the VIE and the our partnership interest is considered a majority voting interest. As such, this standard did not have a material impact on our consolidated financial statements.

The following table provides a brief description of recent accounting pronouncements that could have a material effect on our financial statements:



Standard	Description	Date of Adoption	Effect on the Financial Statements or Other Significant Matters
ASU 2014-09, Revenue from Contracts with Customers	This update outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU 2014-09 states that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” While ASU 2014-09 specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate or equipment. In 2015, the FASB provided for a one-year deferral of the effective date for ASU 2014-09, making it effective for annual reporting periods beginning after December 15, 2017.	January 1, 2018	We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.
ASU 2016-02, Leases (Topic 842)	This update amends existing guidance by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. It is effective for annual reporting periods beginning after December 15, 2018, but early adoption is permitted.	January 1, 2019	We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.

Fair Value Measurements

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

ASC 820, Fair Value Measurement (“ASC 820”) defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. ASC 820 emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement. Fair value is defined by ASC 820 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. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows:

Level 1—Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs).

Level 3—Unobservable inputs, only used to the extent that observable inputs are not available, reflect our assumptions about the pricing of an asset or liability.

The following describes the methods we use to estimate the fair value of our financial and non-financial assets and liabilities:

Cash and Cash Equivalents, Restricted Cash, Accounts Receivable, and Accounts Payable and Other Liabilities—We consider the carrying values of these financial instruments to approximate fair value because of the short period of time between origination of the instruments and their expected realization.

Real Estate Investments—The purchase prices of the investment properties, including related lease intangible assets and liabilities, were allocated at estimated fair value based on Level 3 inputs, such as discount rates, capitalization rates, comparable sales, replacement costs, income and expense growth rates and current market rents and allowances as determined by management. Real estate assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the individual property may not be recoverable, or at least annually. In such an event, a comparison will be made of the projected operating cash flows of each property on an undiscounted basis to the carrying amount of such property. Such carrying amount would be adjusted, if necessary, to estimated fair values to reflect impairment in the value of the asset.

Mortgages and Loans Payable—We estimate the fair value of our debt by discounting the future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturities by our lenders using Level 3 inputs. The discount rate used approximates current lending rates for loans or groups of loans with similar maturities and credit quality, assuming the debt is outstanding through maturity and considering the debt’s collateral (if applicable). We have utilized market information, as available, or present value techniques to estimate the amounts required to be disclosed.

The following is a summary of discount rates and borrowings as of March 31, 2016 and December 31, 2015 (dollars in thousands):



	March 31, 2016			December 31, 2015
Discount rates:
Fixed-rate debt	3.14		%	2.75		%
Secured variable-rate debt	2.69		%	2.36		%
Unsecured variable-rate debt	1.94		%	1.66		%
Borrowings:
Fair value	$	840,113		$	880,854
Recorded value⁽¹⁾	819,379			854,079


⁽¹⁾	Recorded value does not include deferred financing cost of $7.9 million and $8.6 million as of March 31, 2016 and December 31, 2015, respectively.

Derivative Instruments—In April 2015, we entered into three interest rate swap agreements with a notional amount of $387.0 million that are measured at fair value on a recurring basis. These interest rate swap agreements effectively fix the LIBOR portion of the interest rate on $387.0 million of outstanding debt under our existing credit facility. These swaps qualify and have been designated as cash flow hedges.

As of March 31, 2016 and December 31, 2015, we were party to an interest rate swap agreement with a notional amount of $11.3 million. The interest rate swap was assumed as part of an acquisition and is measured at fair value on a recurring basis. The interest rate swap agreement, in effect, fixes the variable interest rate of one of our secured variable-rate mortgage notes at an annual interest rate of 5.22% through June 10, 2018.

The fair value of the interest rate swap agreements as of March 31, 2016 and December 31, 2015 was based on the estimated amount we would receive or pay to terminate the contract at the reporting date and was determined using interest rate pricing models and interest rate-related observable inputs. Although we determined that the significant inputs used to value our derivatives fell within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our counterparties and our own credit risk utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of March 31, 2016 and December 31, 2015, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative position and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

Considerable judgment is necessary to develop estimated fair values of financial and non-financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts we did or could actually realize upon disposition of the financial assets and liabilities previously sold or currently held.

Our derivative liability is currently recorded in Accounts Payable and Other Liabilities on our consolidated balance sheets. The fair value measurements of our financial liability and asset as of March 31, 2016 and December 31, 2015 are as follows (in thousands):



	March 31, 2016		December 31, 2015
Derivative liability (asset) designated as hedging instruments:
Interest rate swaps - unsecured credit facility	$	7,338	$	(22	)
Derivative liability not designated as hedging instrument:
Interest rate swap - mortgage note	496		442

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Real Estate Acquisitions

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Real Estate Acquisitions

REAL ESTATE ACQUISITIONS

During the three months ended March 31, 2015, we acquired eight grocery-anchored retail centers for an aggregate purchase price of approximately $86.4 million, including $24.0 million of assumed debt with a fair value of $25.0 million. We did not acquire any properties during the three months ended March 31, 2016. The following tables present certain additional information regarding our acquisitions of properties during the three months ended March 31, 2015, that were deemed individually immaterial when acquired, but were material in the aggregate.

For the three months ended March 31, 2015, we allocated the purchase price of acquisitions to the fair value of the assets acquired and liabilities assumed as follows (in thousands):



	2015
Land and improvements	$	29,516
Building and improvements	51,186
Acquired in-place leases	8,703
Acquired above-market leases	356
Acquired below-market leases	(3,319		)
Total assets and lease liabilities acquired	86,442
Fair value of assumed debt at acquisition ⁽¹⁾	24,982
Net assets acquired	$	61,460


⁽¹⁾	Debt assumed relates to five properties as well as a strip center adjacent to a previously acquired grocery-anchored retail center.

The weighted-average amortization periods for acquired in-place lease, above-market lease, and below-market lease intangibles acquired during the three months ended March 31, 2015 are as follows (in years):



		2015
Acquired in-place leases		16
Acquired above-market leases		16
Acquired below-market leases		21

The amounts recognized for revenues, acquisition expenses, and net loss recorded during the year of acquisition related to the operating activities of our acquisitions are as follows (in thousands):



	March 31, 2015
Revenues	$	752
Acquisition expenses	1,458
Net loss	1,498

The following unaudited pro forma information summarizes selected financial information from our combined results of operations, as if all of our acquisitions for 2015 had been acquired on January 1, 2015. Acquisition expenses related to each respective acquisition are not expected to have a continuing impact and, therefore, have been excluded from these pro forma results. This pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of the period, nor does it purport to represent the results of future operations.



	Three Months Ended
(in thousands)	March 31, 2015
Pro forma revenues	$	60,970
Pro forma net income attributable to stockholders	6,806

Mortgages and Loans Payable

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Mortgages and Loans Payable

MORTGAGES AND LOANS PAYABLE

Our credit agreement provides access to an unsecured revolving credit facility and an unsecured term loan facility (the “Term Loans”). The revolving credit facility has a capacity of $500 million with a current interest rate of LIBOR plus 1.3%. The revolving credit facility matures in December 2017 with additional options to extend the maturity to December 2018. The Term Loans include three term loan tranches with interest rates of LIBOR plus 1.25%. The first tranche of Term Loans has a principal amount of $100 million and matures in February 2019, with two 12-month options to extend the maturity to February 2021. The second tranche of Term Loans has a principal amount of $175 million and matures in February 2020, with one option to extend the maturity to February 2021. The third tranche of Term Loans has a principal amount of $125 million and matures in February 2021. A maturity date extension for the first or second tranche of Term Loans requires the payment of an extension fee of 0.15% of the outstanding principal amount of the corresponding tranche.

As of March 31, 2016 and December 31, 2015, the weighted-average interest rate for all of our mortgages and loans payable was 3.5%.

The following is a summary of our debt obligations as of March 31, 2016 and December 31, 2015 (in thousands):



	March 31, 2016			December 31, 2015
Unsecured Term Loans - fixed-rate⁽¹⁾	$	387,000		$	387,000
Unsecured Term Loans - variable-rate	13,000			13,000
Unsecured revolving credit facility - variable-rate⁽²⁾	132,000			141,000
Fixed-rate mortgages payable⁽³⁾⁽⁴⁾	281,409			306,435
Deferred financing costs, net⁽⁵⁾	(7,881		)	(8,564		)
Assumed below-market debt adjustment, net⁽⁶⁾	5,970			6,644
Total	$	811,498		$	845,515


⁽¹⁾	As of March 31, 2016 and December 31, 2015, the interest rate on $387 million outstanding under our Term Loans was, effectively, fixed at various interest rates by three interest rate swap agreements with maturities ranging from February 2019 to February 2021 (see Notes 3 and 7).


⁽²⁾	The gross borrowings under our revolving credit facility were $7.0 million during the three months ended March 31, 2016. The gross payments on our credit facility were $16.0 million during the three months ended March 31, 2016.


⁽³⁾	Due to the non-recourse nature of our fixed-rate mortgages, the assets and liabilities of the related properties are neither available to pay the debts of the consolidated property-holding limited liability companies nor constitute obligations of such consolidated limited liability companies as of March 31, 2016.


⁽⁴⁾	As of March 31, 2016 and December 31, 2015, the interest rate on one of our variable-rate mortgage notes payable was, in effect, fixed at 5.22% by an interest rate swap agreement (see Notes 3 and 7).


⁽⁵⁾	Net of accumulated amortization of $3.4 million and $2.8 million as of March 31, 2016 and December 31, 2015, respectively. Accumulated amortization of deferred financing costs included in Other Assets, Net was $4.7 million and $4.8 million as of March 31, 2016 and December 31, 2015, respectively.


⁽⁶⁾	Net of accumulated amortization of $6.7 million and $6.5 million as of March 31, 2016 and December 31, 2015, respectively.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Litigation In the ordinary course of business, we may become subject to litigation or claims. There are no material legal proceedings pending, or known to be contemplated, against us. Environmental Matters In connection with the ownership and operation of real estate, we may be potentially liable for costs and damages related to environmental matters. We record liabilities as they arise related to environmental obligations. We have not been notified by any governmental authority of any material non-compliance, liability or other claim, nor are we aware of any other environmental condition that we believe will have a material impact on our consolidated financial statements.

Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

DERIVATIVES AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposure to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of our debt funding and the use of derivative financial instruments. Specifically, we enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash receipts and our known or expected cash payments principally related to our investments and borrowings.

Cash Flow Hedges of Interest Rate Risk

Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for our making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

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 (Loss) Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended March 31, 2016, such derivatives were used to hedge the variable cash flows associated with certain variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings.

As of March 31, 2016, we had three interest rate swaps with a notional amount of $387.0 million that were designated as cash flow hedges of interest rate risk. Amounts reported in Accumulated Other Comprehensive (Loss) Income related to these derivatives will be reclassified to Interest Expense, Net as interest payments are made on the variable-rate debt. During the next 12 months, we estimate that an additional $2.9 million will be reclassified from Other Comprehensive Loss as an increase to Interest Expense, Net.

Derivatives Not Designated as Hedging Instruments

Derivatives not designated as hedges are not speculative and are used to manage our exposure to interest rate movements and other identified risks, but do not meet the strict hedge accounting requirements to be classified as hedging instruments. Changes in the fair value of these derivative instruments, as well as any payments, are recorded directly in Other Expense, Net and resulted in a loss of $119,000 and $121,000 for the three months ended March 31, 2016 and 2015, respectively.

Tabular Disclosure of the Effect of Derivative Instruments on Accumulated Other Comprehensive (Loss) Income (“AOCI”) and the Consolidated Statements of Operations and Comprehensive Income (Loss)

We did not have any changes in AOCI for the three months ended March 31, 2015. The table below presents the changes in AOCI and the effect of our derivative financial instruments on the consolidated statements of operations and comprehensive (loss) income for the three months ended March 31, 2016 (in thousands):



Balance in AOCI as of January 1, 2016	$	22
Amount of loss recognized in other comprehensive income on derivative	(8,307		)
Amount of loss reclassified from accumulated other comprehensive income into interest expense	946
Current-period other comprehensive income	(7,361		)
Balance in AOCI as of March 31, 2016	$	(7,339	)

Credit-risk-related Contingent Features

We have an agreement with our derivative counterparties that contains a provision where, if we either default or are capable of being declared in default on any of our indebtedness, we could also be declared to be in default on our derivative obligations. As of March 31, 2016 and December 31, 2015, the fair value of our derivatives excluded any adjustment for nonperformance risk related to this agreement. As of March 31, 2016 and December 31, 2015, we had not posted any collateral related to this agreement.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

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+ Details

Equity

3 Months Ended

Mar. 31, 2016

Stockholders' Equity Note [Abstract]

Equity

EQUITY

On April 14, 2016, our board of directors reaffirmed its estimated value per share of our common stock of $10.20 based substantially on the estimated market value of our portfolio of real estate properties in various geographic locations in the United States as of March 31, 2016. We engaged a third party, Duff & Phelps, LLC, to provide a calculation of the range in estimated value per share of our common stock as of March 31, 2016, which reflected the balance sheet assets and liabilities as of that date.

Dividend Reinvestment Plan—We have adopted a dividend reinvestment plan (the “DRIP”) that allows stockholders to invest distributions in additional shares of our common stock. As of March 31, 2016, shares were issued under the DRIP at a price of $10.20 per share.

Share Repurchase Program—Our share repurchase program provides an opportunity for stockholders to have shares of common stock repurchased, subject to certain restrictions and limitations. The following table presents the activity of the share repurchase program for the three months ended March 31, 2016 and 2015 (in thousands, except per share amounts):



	2016		2015
Shares repurchased	212		514
Cost of repurchases	$	2,162	$	4,908
Average repurchase price	$	10.20	$	9.54

During the first quarter of 2016, repurchase requests continued to surpass the funding limits under the share repurchase program. Due to the program’s funding limits, no funds will be available for repurchases during the second quarter of 2016, and the funds available for repurchases during the third quarter of 2016, if any, are expected to be limited. If we are unable to fulfill all repurchase requests in any month, we will attempt to honor requests on a pro rata basis. We continue to fulfill repurchases sought upon a stockholder’s death, determination of incompetence or qualifying disability in accordance with the terms of the share repurchase program.

We record a liability representing our obligation to repurchase shares of common stock submitted for repurchase as of period end but not yet repurchased. The liability for a repurchase request recorded as of March 31, 2016, is due to a stockholder’s death, “qualifying disability,” or “determination of incompetence," and is not subject to the funding limitations of the share repurchase program. Below is a summary of our obligation to repurchase shares of common stock recorded as a component of Accounts Payable and Other Liabilities on our consolidated balance sheets as of March 31, 2016 and December 31, 2015 (in thousands):



	March 31, 2016		December 31, 2015
Shares submitted for repurchase	96		—
Liability recorded	$	980	$	—

On April 14, 2016, our board of directors amended and restated the share repurchase program. The amendments provide that the board of directors reserves the right, in its sole discretion, at any time and from time to time, to reject any request for repurchase, and clarifies that the cash available for repurchases on any particular date will generally be limited to the proceeds from the DRIP during the preceding four fiscal quarters, less amounts already used for repurchases since the beginning of that period. The amendments will become effective on May 15, 2016.

Class B and Operating Partnership Units—The Operating Partnership issues limited partnerships units that are designated as Class B units and Operating Partnership units (“OP units”) for asset management services provided by PE-NTR. The vesting of the Class B units is contingent upon a market condition and service condition. OP units may be exchanged at the election of the holder for cash or, at the option of the Operating Partnership, for shares of our common stock, under the terms of exchange rights agreements to be prepared at a future date, provided, however, that the OP units have been outstanding for at least one year. PE-NTR has agreed under the PE-NTR Agreement not to exchange any OP units it may hold until the listing of our common stock or the liquidation of our portfolio occurs. As the form of the redemptions for the OP units is within our control, the OP units issued as of March 31, 2016 are classified as Noncontrolling Interests within permanent equity on our consolidated balance sheets. Additionally, the cumulative distributions that have been paid on these OP units are included in Distributions to Noncontrolling Interests on the consolidated statements of equity.

Below is a summary of our outstanding OP units and unvested Class B units as of March 31, 2016 and December 31, 2015 (shares in thousands):

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Earnings Per Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

EARNINGS PER SHARE

We use the two-class method of computing earnings per share (“EPS”), which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared (whether paid or unpaid). Under the two-class method, basic EPS is computed by dividing the sum of distributed earnings to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity.

Class B units and OP units held by limited partners other than the Company are considered to be participating securities because they contain non-forfeitable rights to dividends or dividend equivalents and they have the potential to be exchanged for shares of our common stock in accordance with the terms of the Operating Partnership’s Second Amended and Restated Agreement of Limited Partnership, as amended (the “Partnership Agreement”). The impact of these Class B units and OP units on basic and diluted EPS has been calculated using the two-class method whereby earnings are allocated to the Class B units and OP units based on dividends declared and the units’ participation rights in undistributed earnings. The effects of the two-class method on basic and diluted EPS were immaterial to the consolidated financial statements as of March 31, 2016 and 2015.

Since the OP units are fully vested, they were included in the diluted net income per share computations for the three months ended March 31, 2016 and 2015. However, as vesting of the Class B units is contingent upon a market condition and service condition, unvested Class B units were not included in the diluted net income per share computations since the satisfaction of the market or service condition was not probable as of March 31, 2016 and 2015. There were 2.2 million and 0.2 million unvested Class B units outstanding as of March 31, 2016 and 2015, respectively, which had no effect on EPS.

The following table provides a reconciliation of the numerator and denominator of the earnings per unit calculations for the three months ended March 31, 2016 and 2015:



	2016		2015
Numerator for basic and diluted earnings per share:
Net income attributable to stockholders	$	2,219	$	4,971
Denominator:
Denominator for basic earnings per share - weighted-average shares	182,246		182,988
Effect of dilutive OP Units	2,785		2,507
Denominator for diluted earnings per share - adjusted weighted-average shares	185,031		185,495
Basic earnings per share:
Net income attributable to stockholders	$	0.01	$	0.03
Diluted earnings per share:
Net income attributable to stockholders	$	0.01	$	0.03

Related Party Transactions

3 Months Ended

Mar. 31, 2016

Related Party Transactions

RELATED PARTY TRANSACTIONS

Economic Dependency—We are dependent on PE-NTR, Phillips Edison & Company Ltd. (the “Property Manager”), and their respective affiliates for certain services that are essential to us, including asset acquisition and disposition decisions, asset management, operating and leasing of our properties, and other general and administrative responsibilities. In the event that PE-NTR, and/or the Property Manager, and their respective affiliates are unable to provide such services, we would be required to find alternative service providers, which could result in higher costs and expenses.

As of March 31, 2016 and December 31, 2015, PE-NTR owned 176,509 shares of our common stock, or approximately 0.10% of our outstanding common stock issued during our initial public offering period, which closed in February 2014. PE-NTR may not sell any of these shares while serving as our advisor.

Advisory Agreement—Pursuant to the PE-NTR Agreement effective as of December 3, 2014, PE-NTR is entitled to specified fees for certain services, including managing our day-to-day activities and implementing our investment strategy. PE-NTR manages our day-to-day affairs and our portfolio of real estate investments subject to the board’s supervision. Expenses are to be reimbursed to PE-NTR based on amounts incurred on our behalf by PE-NTR.

In October 2015, we entered into amended agreements to revise certain fees that are paid to PE-NTR in consideration for the advisory services that PE-NTR provides to us. Beginning October 1, 2015, we no longer pay a 0.75% financing fee to PE-NTR. The asset management fee remains at 1% of the cost of our assets but is paid 80% in cash and 20% in Class B units of the Operating Partnership. The cash portion is paid on a monthly basis in arrears, in the amount of 0.06667% multiplied by the cost of our assets as of the last day of the preceding monthly period.

Acquisition Fee—We pay PE-NTR an acquisition fee related to services provided in connection with the selection and purchase or origination of real estate and real estate-related investments. The acquisition fee is equal to 1.0% of the cost of investments we acquire or originate, including any debt attributable to such investments.

Acquisition Expenses—We reimburse PE-NTR for direct expenses incurred related to selecting, evaluating, and acquiring assets on our behalf. During the three months ended March 31, 2015, we reimbursed PE-NTR for personnel costs related to due diligence services for assets we acquired during the period. During the three months ended March 31, 2016, there were no acquisition expenses to reimburse as no properties were acquired during the period.

Asset Management Subordinated Participation—Within 60 days after the end of each calendar quarter (subject to the approval of our board of directors), we will pay an asset management subordinated participation by issuing a number of restricted operating partnership units designated as Class B Units to PE-NTR and American Realty Capital II Advisors, LLC (“ARC”), equal to: (i) the product of (x) the cost of our assets multiplied by (y) 0.05% (0.25% prior to October 1, 2015); divided by (ii) the most recent primary offering price for a share of our common stock as of the last day of such calendar quarter less any selling commissions and dealer manager fees that would have been payable in connection with that offering.

PE-NTR and ARC are entitled to receive distributions on the Class B units (and OP units converted from previously issued and vested Class B units) they receive in connection with their asset management subordinated participation at the same rate as distributions are paid to common stockholders. Such distributions are in addition to the incentive fees that PE-NTR, ARC, and their affiliates may receive from us.

We continue to issue Class B units to PE-NTR and ARC in connection with the asset management services provided by PE-NTR under our current advisory agreement. Such Class B units will not vest until the economic hurdle is met in conjunction with (i) a termination of the PE-NTR Agreement by our independent directors without cause, (ii) a listing event, or (iii) a liquidity event; provided that PE-NTR serves as our advisor at the time of any of the foregoing events. During the three months ended March 31, 2016 and 2015, the Operating Partnership issued 0.1 million and 0.4 million Class B units, respectively, to PE-NTR and ARC under the PE-NTR Agreement for asset management services performed by PE-NTR.

Disposition Fee—We pay PE-NTR for substantial assistance by PE-NTR or any of its affiliates in connection with the sale of properties or other investments 2.0% of the contract sales price of each property or other investment sold. The conflicts committee of our board of directors determines whether PE-NTR or its affiliates have provided substantial assistance to us in connection with the sale of an asset. Substantial assistance in connection with the sale of a property includes PE-NTR or its affiliates’ preparation of an investment package for the property (including an investment analysis, rent rolls, tenant information regarding credit, a property title report, an environmental report, a structural report and exhibits) or such other substantial services performed by PE-NTR or its affiliates in connection with a sale. However, if we sold an asset to an affiliate, our organizational documents would prohibit us from paying a disposition fee to PE-NTR or its affiliates.

General and Administrative Expenses—As of March 31, 2016 and December 31, 2015, we owed PE-NTR $138,000 and $124,000, respectively, for general and administrative expenses paid on our behalf.

Summarized below are the fees earned by and the expenses reimbursable to PE-NTR and ARC, except for general and administrative expenses, which we disclose above, for the three months ended March 31, 2016 and 2015 and any related amounts unpaid as of March 31, 2016 and December 31, 2015 (in thousands):



	Three Months Ended				Unpaid Amount as of
	March 31,				March 31,		December 31,
	2016		2015		2016		2015
Acquisition fees⁽¹⁾	$	—	$	855	$	—	$	—
Acquisition expenses⁽¹⁾	—		139		—		—
Asset management fees⁽²⁾	4,619		—		1,539		1,538
OP units distribution ⁽³⁾	464		—		158		159
Class B units distribution⁽⁴⁾	354		440		125		119
Financing fees⁽⁵⁾	—		180		—		—
Total	$	5,437	$	1,614	$	1,822	$	1,816


⁽¹⁾	The acquisition fees and expenses are presented as Acquisition Expenses on the consolidated statements of operations.


⁽²⁾	Asset management fees are presented as General and Administrative on the consolidated statements of operations.


⁽³⁾	The distributions paid to holders of OP units are presented as Distributions to Noncontrolling Interests on the consolidated statements of equity.


⁽⁴⁾	The distributions paid to holders of unvested Class B units are presented as General and Administrative on the consolidated statements of operations.


⁽⁵⁾	Financing fees are presented as Other Assets, Net or Mortgages and Loans Payable, Net, on the consolidated balance sheets and amortized over the term of the related loan. As of October 1, 2015, we are no longer required to pay financing fees.

Subordinated Participation in Net Sales Proceeds—The Operating Partnership may pay to Phillips Edison Special Limited Partner LLC (the “Special Limited Partner”) a subordinated participation in the net sales proceeds of the sale of real estate assets equal to 15.0% of remaining net sales proceeds after return of capital contributions to stockholders plus payment to stockholders of a 7.0% cumulative, pre-tax, non-compounded return on the capital contributed by stockholders. ARC has a 15.0% interest and PE-NTR has an 85.0% interest in the Special Limited Partner.

Subordinated Incentive Listing Distribution—The Operating Partnership may pay to the Special Limited Partner a subordinated incentive listing distribution upon the listing of our common stock on a national securities exchange. Such incentive listing distribution is equal to 15.0% of the amount by which the market value of all of our issued and outstanding common stock plus distributions exceeds the aggregate capital contributed by stockholders plus an amount equal to a 7.0% cumulative, pre-tax non-compounded annual return to stockholders.

Neither the Special Limited Partner nor any of its affiliates can earn both the subordinated participation in net sales proceeds and the subordinated incentive listing distribution. No subordinated incentive listing distribution has been earned to date.

Subordinated Distribution Upon Termination of the Advisor Agreement—Upon termination or non-renewal of the PE-NTR Agreement, the Special Limited Partner shall be entitled to a subordinated termination distribution in the form of a non-interest bearing promissory note equal to 15.0% of the amount by which the value of our assets owned at the time of such termination or non-renewal plus distributions exceeds the aggregate capital contributed by stockholders plus an amount equal to a 7.0% cumulative, pre-tax non-compounded annual return to stockholders. In addition, the Special Limited Partner may elect to defer its right to receive a subordinated distribution upon termination until either a listing on a national securities exchange or a liquidity event occurs. No such termination has occurred to date.

Property Manager—All of our real properties are managed and leased by the Property Manager. The Property Manager is wholly owned by our Phillips Edison sponsor. The Property Manager also manages real properties acquired by the Phillips Edison affiliates or other third parties.

Property Management Fee—We pay to the Property Manager a monthly property management fee of 4.0% of the monthly gross cash receipts from the properties it manages.

Leasing Commissions—In addition to the property management fee, if the Property Manager provides leasing services with respect to a property, we pay the Property Manager leasing fees in an amount equal to the leasing fees charged by unaffiliated persons rendering comparable services based on national market rates. The Property Manager shall be paid a leasing fee in connection with a tenant’s exercise of an option to extend an existing lease, and the leasing fees payable to the Property Manager may be increased by up to 50% in the event that the Property Manager engages a co-broker to lease a particular vacancy.

Construction Management Fee—If we engage the Property Manager to provide construction management services with respect to a particular property, we pay a construction management fee in an amount that is usual and customary for comparable services rendered to similar projects in the geographic market of the property.

Expenses and Reimbursements—The Property Manager hires, directs and establishes policies for employees who have direct responsibility for the operations of each real property it manages, which may include, but is not limited to, on-site managers and building and maintenance personnel. Certain employees of the Property Manager may be employed on a part-time basis and may also be employed by PE-NTR or certain of its affiliates. The Property Manager also directs the purchase of equipment and supplies and will supervise all maintenance activity. We reimburse the costs and expenses incurred by the Property Manager on our behalf, including employee compensation, legal, travel and other out-of-pocket expenses that are directly related to the management of specific properties, as well as fees and expenses of third-party accountants.

Summarized below are the fees earned by and the expenses reimbursable to the Property Manager for the three months ended March 31, 2016 and 2015 and any related amounts unpaid as of March 31, 2016 and December 31, 2015 (in thousands):



	Three Months Ended				Unpaid Amount as of
	March 31,				March 31,		December 31,
	2016		2015		2016		2015
Property management fees⁽¹⁾	$	2,427	$	2,185	$	863	$	755
Leasing commissions⁽²⁾	2,195		2,028		748		729
Construction management fees⁽²⁾	159		165		71		155
Other fees and reimbursements⁽³⁾	1,170		1,003		508		1,699
Total	$	5,951	$	5,381	$	2,190	$	3,338


⁽¹⁾	The property management fees are included in Property Operating on the consolidated statements of operations.


⁽²⁾	Leasing commissions paid for leases with terms less than one year are expensed immediately and included in Depreciation and Amortization on the consolidated statements of operations. Leasing commissions paid for leases with terms greater than one year, and construction management fees are capitalized and amortized over the life of the related leases or assets.


⁽³⁾	Other fees and reimbursements are included in Property Operating and General and Administrative on the consolidated statements of operations based on the nature of the expense.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Operating Leases

3 Months Ended

Mar. 31, 2016

Leases, Operating [Abstract]

Operating Leases

OPERATING LEASES

The terms and expirations of our operating leases with our tenants vary. The lease agreements frequently contain options to extend the terms of leases and other terms and conditions as negotiated. We retain substantially all of the risks and benefits of ownership of the real estate assets leased to tenants.

Approximate future rentals to be received under non-cancelable operating leases in effect at March 31, 2016, assuming no new or renegotiated leases or option extensions on lease agreements, are as follows (in thousands):



Year	Amount
April 1 to December 31, 2016	$	179,309
2017	167,446
2018	149,548
2019	126,547
2020	104,496
2021 and thereafter	415,966
Total	$	1,143,312

No single tenant comprised 10% or more of our aggregate annualized effective rent as of March 31, 2016.

Subsequent Events

3 Months Ended

Mar. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

Distributions to Stockholders

Distributions equal to a daily amount of $0.00183060 per share of common stock outstanding were paid subsequent to March 31, 2016 to the stockholders of record from March 1, 2016 through April 30, 2016 as follows (in thousands):



Distribution Period	Date Distribution Paid	Gross Amount of Distribution Paid		Distribution Reinvested through the DRIP		Net Cash Distribution
March 1, 2016 through March 31, 2016	4/1/2016	$	10,367	$	5,076	$	5,291
April 1, 2016 through April 30, 2016	5/2/2016	10,054		4,887		5,167

In March 2016, our board of directors authorized distributions to the stockholders of record at the close of business each day in the period commencing May 1, 2016 through May 31, 2016. The authorized distributions equal a daily amount of $0.00183060 per share of common stock.

Tender Offer

On April 25, 2016, in order to deter an unsolicited tender offer by a third party and other potential future bidders that may try to exploit the illiquidity of shares of our common stock and acquire them from stockholders at prices substantially below their value, we launched a self-tender offer to purchase up to 9.3 million shares of our common stock. The tender offer will expire at 5:00 p.m. central time on Tuesday, June 7, 2016, unless extended or withdrawn. Our share repurchase program has been temporarily suspended during this offer as required by SEC rules. No repurchases will be made under the share repurchase program during the tender offer and for ten business days thereafter. Redemption requests that are submitted through the share repurchase program during the offer will not be accepted for consideration.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements include our accounts and those of our majority-owned subsidiaries. All intercompany balances and transactions are eliminated upon consolidation.

Redeemable Common Stock

Reclassifications

Reclassifications—The following line items on our consolidated balance sheets as of December 31, 2015, were reclassified to conform to the current year presentation:


•	The acquired intangible lease assets balance was separated into Acquired Above-Market Lease Assets and Acquired In-Place Lease Assets,


•	Certain unamortized debt issuance costs were reclassified from Deferred Financing Expense, Net to Other Assets, Net

Impact of Recently Issued Accounting Pronouncements

The following table provides a brief description of recent accounting pronouncements that could have a material effect on our financial statements:



Standard	Description	Date of Adoption	Effect on the Financial Statements or Other Significant Matters
ASU 2014-09, Revenue from Contracts with Customers	This update outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU 2014-09 states that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” While ASU 2014-09 specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate or equipment. In 2015, the FASB provided for a one-year deferral of the effective date for ASU 2014-09, making it effective for annual reporting periods beginning after December 15, 2017.	January 1, 2018	We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.
ASU 2016-02, Leases (Topic 842)	This update amends existing guidance by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. It is effective for annual reporting periods beginning after December 15, 2018, but early adoption is permitted.	January 1, 2019	We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.

Fair Value Measurements Fair Value Measurements (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Fair Value Measurement, Policy [Policy Text Block]	ASC 820, Fair Value Measurement (“ASC 820”) defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. ASC 820 emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement. Fair value is defined by ASC 820 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. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows: Level 1—Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs). Level 3—Unobservable inputs, only used to the extent that observable inputs are not available, reflect our assumptions about the pricing of an asset or liability.

Earnings Per Share Earnings per Share (Policies)	3 Months Ended
Earnings Per Share Earnings per Share (Policies)	Mar. 31, 2016
Accounting Policies [Abstract]
Earnings Per Share, Policy [Policy Text Block]	We use the two-class method of computing earnings per share (“EPS”), which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared (whether paid or unpaid). Under the two-class method, basic EPS is computed by dividing the sum of distributed earnings to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity. Class B units and OP units held by limited partners other than the Company are considered to be participating securities because they contain non-forfeitable rights to dividends or dividend equivalents and they have the potential to be exchanged for shares of our common stock in accordance with the terms of the Operating Partnership’s Second Amended and Restated Agreement of Limited Partnership, as amended (the “Partnership Agreement”). The impact of these Class B units and OP units on basic and diluted EPS has been calculated using the two-class method whereby earnings are allocated to the Class B units and OP units based on dividends declared and the units’ participation rights in undistributed earnings.

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table provides a brief description of recent accounting pronouncements that could have a material effect on our financial statements:



Standard	Description	Date of Adoption	Effect on the Financial Statements or Other Significant Matters
ASU 2014-09, Revenue from Contracts with Customers	This update outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. ASU 2014-09 states that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” While ASU 2014-09 specifically references contracts with customers, it may apply to certain other transactions such as the sale of real estate or equipment. In 2015, the FASB provided for a one-year deferral of the effective date for ASU 2014-09, making it effective for annual reporting periods beginning after December 15, 2017.	January 1, 2018	We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.
ASU 2016-02, Leases (Topic 842)	This update amends existing guidance by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. It is effective for annual reporting periods beginning after December 15, 2018, but early adoption is permitted.	January 1, 2019	We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.

- Definition

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6510796

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-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
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-URI http://asc.fasb.org/extlink&oid=6523989

+ Details

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Inputs, Liabilities, Quantitative Information

The following is a summary of discount rates and borrowings as of March 31, 2016 and December 31, 2015 (dollars in thousands):



	March 31, 2016			December 31, 2015
Discount rates:
Fixed-rate debt	3.14		%	2.75		%
Secured variable-rate debt	2.69		%	2.36		%
Unsecured variable-rate debt	1.94		%	1.66		%
Borrowings:
Fair value	$	840,113		$	880,854
Recorded value⁽¹⁾	819,379			854,079


⁽¹⁾	Recorded value does not include deferred financing cost of $7.9 million and $8.6 million as of March 31, 2016 and December 31, 2015, respectively.

Fair Value, Liabilities Measured on a Recurring Basis



	March 31, 2016		December 31, 2015
Derivative liability (asset) designated as hedging instruments:
Interest rate swaps - unsecured credit facility	$	7,338	$	(22	)
Derivative liability not designated as hedging instrument:
Interest rate swap - mortgage note	496		442

Real Estate Acquisitions (Tables)

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

For the three months ended March 31, 2015, we allocated the purchase price of acquisitions to the fair value of the assets acquired and liabilities assumed as follows (in thousands):



	2015
Land and improvements	$	29,516
Building and improvements	51,186
Acquired in-place leases	8,703
Acquired above-market leases	356
Acquired below-market leases	(3,319		)
Total assets and lease liabilities acquired	86,442
Fair value of assumed debt at acquisition ⁽¹⁾	24,982
Net assets acquired	$	61,460


⁽¹⁾	Debt assumed relates to five properties as well as a strip center adjacent to a previously acquired grocery-anchored retail center.

Schedule of Finite-lived Intangible Assets Acquired as Part of Business Combination



		2015
Acquired in-place leases		16
Acquired above-market leases		16
Acquired below-market leases		21

Real Estate Acquisitions, Operating Activities Since Acquisition Date

The amounts recognized for revenues, acquisition expenses, and net loss recorded during the year of acquisition related to the operating activities of our acquisitions are as follows (in thousands):



	March 31, 2015
Revenues	$	752
Acquisition expenses	1,458
Net loss	1,498

Business Acquisition, Pro Forma Information



	Three Months Ended
(in thousands)	March 31, 2015
Pro forma revenues	$	60,970
Pro forma net income attributable to stockholders	6,806

Mortgages and Loans Payable (Tables)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Schedule of Debt Obligations

The following is a summary of our debt obligations as of March 31, 2016 and December 31, 2015 (in thousands):



	March 31, 2016			December 31, 2015
Unsecured Term Loans - fixed-rate⁽¹⁾	$	387,000		$	387,000
Unsecured Term Loans - variable-rate	13,000			13,000
Unsecured revolving credit facility - variable-rate⁽²⁾	132,000			141,000
Fixed-rate mortgages payable⁽³⁾⁽⁴⁾	281,409			306,435
Deferred financing costs, net⁽⁵⁾	(7,881		)	(8,564		)
Assumed below-market debt adjustment, net⁽⁶⁾	5,970			6,644
Total	$	811,498		$	845,515


⁽¹⁾	As of March 31, 2016 and December 31, 2015, the interest rate on $387 million outstanding under our Term Loans was, effectively, fixed at various interest rates by three interest rate swap agreements with maturities ranging from February 2019 to February 2021 (see Notes 3 and 7).


⁽²⁾	The gross borrowings under our revolving credit facility were $7.0 million during the three months ended March 31, 2016. The gross payments on our credit facility were $16.0 million during the three months ended March 31, 2016.


⁽³⁾	Due to the non-recourse nature of our fixed-rate mortgages, the assets and liabilities of the related properties are neither available to pay the debts of the consolidated property-holding limited liability companies nor constitute obligations of such consolidated limited liability companies as of March 31, 2016.


⁽⁴⁾	As of March 31, 2016 and December 31, 2015, the interest rate on one of our variable-rate mortgage notes payable was, in effect, fixed at 5.22% by an interest rate swap agreement (see Notes 3 and 7).


⁽⁵⁾	Net of accumulated amortization of $3.4 million and $2.8 million as of March 31, 2016 and December 31, 2015, respectively. Accumulated amortization of deferred financing costs included in Other Assets, Net was $4.7 million and $4.8 million as of March 31, 2016 and December 31, 2015, respectively.


⁽⁶⁾	Net of accumulated amortization of $6.7 million and $6.5 million as of March 31, 2016 and December 31, 2015, respectively.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 210
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+ Details

Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]



Balance in AOCI as of January 1, 2016	$	22
Amount of loss recognized in other comprehensive income on derivative	(8,307		)
Amount of loss reclassified from accumulated other comprehensive income into interest expense	946
Current-period other comprehensive income	(7,361		)
Balance in AOCI as of March 31, 2016	$	(7,339	)

Equity (Tables)

3 Months Ended

Mar. 31, 2016

Stockholders' Equity Note [Abstract]

Share Repurchase Program

The following table presents the activity of the share repurchase program for the three months ended March 31, 2016 and 2015 (in thousands, except per share amounts):



	2016		2015
Shares repurchased	212		514
Cost of repurchases	$	2,162	$	4,908
Average repurchase price	$	10.20	$	9.54

Share Repurchase Program, Repurchase Obligations

Below is a summary of our obligation to repurchase shares of common stock recorded as a component of Accounts Payable and Other Liabilities on our consolidated balance sheets as of March 31, 2016 and December 31, 2015 (in thousands):



	March 31, 2016		December 31, 2015
Shares submitted for repurchase	96		—
Liability recorded	$	980	$	—

Class B Units Outstanding

Below is a summary of our outstanding OP units and unvested Class B units as of March 31, 2016 and December 31, 2015 (shares in thousands):

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table provides a reconciliation of the numerator and denominator of the earnings per unit calculations for the three months ended March 31, 2016 and 2015:



	2016		2015
Numerator for basic and diluted earnings per share:
Net income attributable to stockholders	$	2,219	$	4,971
Denominator:
Denominator for basic earnings per share - weighted-average shares	182,246		182,988
Effect of dilutive OP Units	2,785		2,507
Denominator for diluted earnings per share - adjusted weighted-average shares	185,031		185,495
Basic earnings per share:
Net income attributable to stockholders	$	0.01	$	0.03
Diluted earnings per share:
Net income attributable to stockholders	$	0.01	$	0.03

Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2016

Advisor Transactions



	Three Months Ended				Unpaid Amount as of
	March 31,				March 31,		December 31,
	2016		2015		2016		2015
Acquisition fees⁽¹⁾	$	—	$	855	$	—	$	—
Acquisition expenses⁽¹⁾	—		139		—		—
Asset management fees⁽²⁾	4,619		—		1,539		1,538
OP units distribution ⁽³⁾	464		—		158		159
Class B units distribution⁽⁴⁾	354		440		125		119
Financing fees⁽⁵⁾	—		180		—		—
Total	$	5,437	$	1,614	$	1,822	$	1,816


⁽¹⁾	The acquisition fees and expenses are presented as Acquisition Expenses on the consolidated statements of operations.


⁽²⁾	Asset management fees are presented as General and Administrative on the consolidated statements of operations.


⁽³⁾	The distributions paid to holders of OP units are presented as Distributions to Noncontrolling Interests on the consolidated statements of equity.


⁽⁴⁾	The distributions paid to holders of unvested Class B units are presented as General and Administrative on the consolidated statements of operations.


⁽⁵⁾	Financing fees are presented as Other Assets, Net or Mortgages and Loans Payable, Net, on the consolidated balance sheets and amortized over the term of the related loan. As of October 1, 2015, we are no longer required to pay financing fees.

Property Manager Transactions



	Three Months Ended				Unpaid Amount as of
	March 31,				March 31,		December 31,
	2016		2015		2016		2015
Property management fees⁽¹⁾	$	2,427	$	2,185	$	863	$	755
Leasing commissions⁽²⁾	2,195		2,028		748		729
Construction management fees⁽²⁾	159		165		71		155
Other fees and reimbursements⁽³⁾	1,170		1,003		508		1,699
Total	$	5,951	$	5,381	$	2,190	$	3,338


⁽¹⁾	The property management fees are included in Property Operating on the consolidated statements of operations.


⁽²⁾	Leasing commissions paid for leases with terms less than one year are expensed immediately and included in Depreciation and Amortization on the consolidated statements of operations. Leasing commissions paid for leases with terms greater than one year, and construction management fees are capitalized and amortized over the life of the related leases or assets.


⁽³⁾	Other fees and reimbursements are included in Property Operating and General and Administrative on the consolidated statements of operations based on the nature of the expense.

Operating Leases (Tables)

3 Months Ended

Mar. 31, 2016

Leases, Operating [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases



Year	Amount
April 1 to December 31, 2016	$	179,309
2017	167,446
2018	149,548
2019	126,547
2020	104,496
2021 and thereafter	415,966
Total	$	1,143,312

Subsequent Events (Tables)

3 Months Ended

Mar. 31, 2016

Subsequent Events [Abstract]

Dividends Paid



Distribution Period	Date Distribution Paid	Gross Amount of Distribution Paid		Distribution Reinvested through the DRIP		Net Cash Distribution
March 1, 2016 through March 31, 2016	4/1/2016	$	10,367	$	5,076	$	5,291
April 1, 2016 through April 30, 2016	5/2/2016	10,054		4,887		5,167

Organization (Details)	Mar. 31, 2016 property
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of real estate properties owned	147

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Percent of shares authorized for repurchase	5.00%
Unamortized debt issuance costs reclassified	$ 7.9	$ 8.6

Fair Value Measurements (Details) Mortgages and Loans Payable - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Fair Value Inputs, Liabilities, Quantitative Information
Recorded value	$ 819,379	$ 854,079
Unamortized Debt Issuance Expense	(7,881)	(8,564)
Fair Value, Level 3 Inputs
Fair Value Inputs, Liabilities, Quantitative Information
Fair value of mortgages and loans payable	$ 840,113	$ 880,854
Fixed-rate debt \| Fair Value, Level 3 Inputs
Fair Value Inputs, Liabilities, Quantitative Information
Fair value inputs, discount rate	3.14%	2.75%
Secured variable-rate debt \| Fair Value, Level 3 Inputs
Fair Value Inputs, Liabilities, Quantitative Information
Fair value inputs, discount rate	2.69%	2.36%
Unsecured variable-rate debt \| Fair Value, Level 3 Inputs
Fair Value Inputs, Liabilities, Quantitative Information
Fair value inputs, discount rate	1.94%	1.66%

Fair Value Measurements (Details) - Derivative Instruments - Interest Rate Swap - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Not Designated as Hedging Instrument
Fair Value, (Assets) Liabilities Measured on Recurring Basis
Derivative, notional amount	$ 11,300	$ 11,300
Swap agreement interest rate	5.22%
Not Designated as Hedging Instrument \| Fair value, Level 2 inputs
Fair Value, (Assets) Liabilities Measured on Recurring Basis
Derivative (Assets) Liabilities, at Fair Value, Net	$ 496	442
Designated as Hedging Instrument
Fair Value, (Assets) Liabilities Measured on Recurring Basis
Number of interest rate swap agreements	3
Derivative, notional amount	$ 387,000
Portion of hedged debt	387,000	387,000
Designated as Hedging Instrument \| Fair value, Level 2 inputs
Fair Value, (Assets) Liabilities Measured on Recurring Basis
Derivative (Assets) Liabilities, at Fair Value, Net	$ 7,338	$ (22)

Real Estate Acquisitions (Details) - Series of individually immaterial business acquisitions $ in Thousands	3 Months Ended
	Mar. 31, 2015 USD ($)
Business Acquisition [Line Items]
Number of Businesses Acquired	8
Payments to Acquire Businesses, Gross	$ 86,442
Business acquisition, cost of acquired entity, debt assumed	24,000
Fair value of assumed debt at acquisition (1)	$ 24,982

Real Estate Acquisitions (Details) - Allocation - Series of individually immaterial business acquisitions $ in Thousands	Mar. 31, 2015 USD ($)
Business Acquisition [Line Items]
Land and improvements	$ 29,516
Building and improvements	51,186
Acquired below-market leases	(3,319)
Total assets and liabilities acquired	86,442
Fair value of assumed debt at acquisition (1)	24,982
Net assets acquired	61,460
Acquired in-place leases
Business Acquisition [Line Items]
Acquired finite-lived intangibles	8,703
Acquired above-market leases
Business Acquisition [Line Items]
Acquired finite-lived intangibles	$ 356

Real Estate Acquisitions (Details) - Weighted-average amortization - Series of individually immaterial business acquisitions	3 Months Ended
	Mar. 31, 2015
Acquired in-place leases
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	16 years
Acquired above-market leases
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	16 years
Acquired below-market leases
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	21 years

Real Estate Acquisitions (Details) - Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Business Acquisition [Line Items]
Acquisition expenses	$ 20	$ 1,735
Series of individually immaterial business acquisitions
Business Acquisition [Line Items]
Revenues		752
Acquisition expenses		1,458
Net loss		$ 1,498

Real Estate Acquisitions (Details) - Pro Forma - Series of individually immaterial business acquisitions $ in Thousands	3 Months Ended
	Mar. 31, 2015 USD ($)
Business Acquisition [Line Items]
Pro forma revenues	$ 60,970
Pro forma net income attributable to stockholders	$ 6,806

Mortgages and Loans Payable (Details)	3 Months Ended
Mortgages and Loans Payable (Details)	Mar. 31, 2016 USD ($) loan_tranche option	Dec. 31, 2015 USD ($)
Debt Instrument [Line Items]
Outstanding principal balance	$ 819,379,000	$ 854,079,000
Weighted-average interest rate on debt	3.46%
Revolving Credit Facility \| Unsecured variable-rate debt
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 500,000,000
Term Loan Facility
Debt Instrument [Line Items]
Maturity date extension fee, percent	0.15%
Term Loan Facility \| Unsecured variable-rate debt
Debt Instrument [Line Items]
Number of Term Loan Tranches \| loan_tranche	3
Term Loans Tranche One \| Term Loan Facility
Debt Instrument [Line Items]
Debt Instrument, Number of Extension Options \| option	2
Debt Instrument, Period of Extensions to Maturity	12 months
Term Loans Tranche One \| Term Loan Facility \| Unsecured variable-rate debt
Debt Instrument [Line Items]
Outstanding principal balance	$ 100,000,000
Term Loans Tranche Two \| Term Loan Facility
Debt Instrument [Line Items]
Debt Instrument, Number of Extension Options \| option	1
Term Loans Tranche Two \| Term Loan Facility \| Unsecured variable-rate debt
Debt Instrument [Line Items]
Outstanding principal balance	$ 175,000,000
Term Loans Tranche Three \| Term Loan Facility \| Unsecured variable-rate debt
Debt Instrument [Line Items]
Outstanding principal balance	$ 125,000,000
London Interbank Offered Rate (LIBOR) \| Revolving Credit Facility \| Unsecured variable-rate debt
Debt Instrument [Line Items]
Basis spread on variable rate	1.30%
London Interbank Offered Rate (LIBOR) \| Term Loan Facility \| Unsecured variable-rate debt
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%

Mortgages and Loans Payable (Details) - Debt Obligations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Outstanding principal balance	$ 819,379	$ 854,079
Deferred financing costs, net	(7,881)	(8,564)
Assumed below-market debt adjustment, net	5,970	6,644
Total mortgages and loans payable, net	811,498	845,515
Accumulated Amortization, Deferred Finance Costs	3,400	2,800
Accumulated Amortization, Deferred Finance Costs Asset	4,700	4,800
Accumulated amortization, assumed below-market debt adjustment	6,700	6,500
Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding principal balance	132,000	141,000
Fixed-rate mortgages payable
Debt Instrument [Line Items]
Outstanding principal balance	$ 281,409	306,435
Swap agreement interest rate	5.22%
Unsecured Line of Credit Variable-rate [Member]
Debt Instrument [Line Items]
Gross borrowings	$ 7,000
Gross payments	16,000
Interest Rate Swap [Member] \| Designated as Hedging Instrument [Member]
Debt Instrument [Line Items]
Portion of hedged debt	387,000	387,000
Term Loan Facility [Member] \| Unsecured variable-rate debt
Debt Instrument [Line Items]
Fixed Rate Debt Instrument Carrying Amount	387,000	387,000
Variable Rate Debt instrument Carrying Amount	$ 13,000	$ 13,000

Commitments and Contingencies Narrative (Details)	Mar. 31, 2016 claim
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency, Pending Claims, Number	0

Derivatives and Hedging Activities (Details)	3 Months Ended
Derivatives and Hedging Activities (Details)	Mar. 31, 2016 USD ($) agreement	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Accumulated other comprehensive (loss) income	$ (7,339,000)		$ 22,000
Interest Rate Swap \| Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Accumulated other comprehensive (loss) income	$ (7,339,000)		22,000
Derivative, number of instruments held \| agreement	3
Derivative, notional amount	$ 387,000,000
Amount estimated to be reclassified from AOCI into interest expense over the next 12 months	2,900,000
Interest Rate Swap \| Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount	11,300,000		$ 11,300,000
Loss (gain) on derivative not designated as hedges	$ 119,000	$ 121,000

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Derivatives and Hedging Activities (Details) - Tabular Disclosure $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance in AOCI as of January 1, 2016	$ 22
Balance in AOCI as of March 31, 2016	(7,339)
Interest Rate Swap \| Designated as Hedging Instrument
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Balance in AOCI as of January 1, 2016	22
Amount of loss recognized in other comprehensive income on derivative	8,307
Amount of loss reclassified from accumulated other comprehensive income into interest expense	(946)
Current-period other comprehensive income	(7,361)
Balance in AOCI as of March 31, 2016	$ (7,339)

- Definition

+ References + Details

Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Class of Stock [Line Items]
Share Price	$ 10.20
OP Units	2,785,341		2,785,341
Class B units	2,211,000	200,000	2,083,000
Dividend Reinvestment Plan
Class of Stock [Line Items]
Share Price	$ 10.20
Share Repurchase Program
Class of Stock [Line Items]
Shares repurchased	212,000	514,000
Cost of repurchases	$ 2,162	$ 4,908
Average repurchase price	$ 10.20	$ 9.54
Shares submitted for repurchase	96,000		0
Liability recorded	$ 980		$ 0

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Earnings Per Share [Abstract]
Class B units unvested	2,211	200	2,083
Net income attributable to stockholders	$ 2,219	$ 4,971
Basic	182,246	182,988
Effect of dilutive OP Units	2,785	2,507
Diluted	185,031	185,495
Basic earnings per share: net income attributable to stockholders	$ 0.01	$ 0.03
Diluted earnings per share: net income attributable to stockholders	$ 0.01	$ 0.03

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Related Party Transactions Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Subordinated Participation in Net Sales Proceeds Percentage	15.00%
Accounts payable – affiliates	$ 4,150		$ 5,278
Investor Return Before Subordinated Participation in Net Sales Proceeds	7.00%
Advisor Interest in Special Limited Partner	15.00%
Sub-Advisor Interest in Special Limited Partner	85.00%
Subordinated Incentive Listing Fee Percentage	15.00%
Investor Return Before Subordinated Listing Incentive Fee	7.00%
Subordinated Distribution Upon Termination of Advisor Agreement Percentage	15.00%
General and Administrative Expenses of the Company Paid by Sponsor	$ 138		124
Advisory Agreement [Member]
Related Party Transaction [Line Items]
Fees and Expenses Incurred from Advisor and Sub-Advisor	5,437	$ 1,614
Fees and Expenses Owed to Advisor and Sub-Advisor	$ 1,822		1,816
Advisory Agreement [Member] \| Asset management fee [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate	1.00%
Advisory Agreement [Member] \| Asset Management Fee, Portion Paid in Cash, Monthly Payment [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate	0.06667%
Advisory Agreement [Member] \| Acquisition fee [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate	1.00%
Related Party Transaction, Expenses from Transactions with Related Party	$ 0	855
Accounts payable – affiliates	0		0
Advisory Agreement [Member] \| Acquisition Expense Reimbursement [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	0	139
Accounts payable – affiliates	0		0
Advisory Agreement [Member] \| General and Administrative Reimbursements [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	4,619	0
Accounts payable – affiliates	1,539		1,538
Advisory Agreement [Member] \| Dividend Paid [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	354	440
Accounts payable – affiliates	125		119
OP Units Distribution	464	0
OP Units Distribution Payable	158	159
Advisory Agreement [Member] \| Financing fee [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	0	$ 180
Accounts payable – affiliates	$ 0		$ 0
Advisory Agreement [Member] \| Asset Management Subordination Agreement [Member]
Related Party Transaction [Line Items]
Class B Units Issuance Due Date	60 days
Limited Partners' Capital Account, Units Issued	128,000	400,000
Advisory Agreement [Member] \| Disposition fee [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate	2.00%
Cash [Member] \| Advisory Agreement [Member] \| Asset management fee [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate	80.00%
Unit Distribution [Member] \| Advisory Agreement [Member] \| Asset management fee [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Rate	20.00%

Related Party Transactions Related Party (Details) - Economic Dependency shares in Thousands	Mar. 31, 2016 shares
Related Party Transactions [Abstract]
Shares owned by sub-advisor	177
Percentage of shares owned by sub-advisor	0.10%

Related Party Transactions Property Management Transactions (Details) Property Management Transactions - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Property Management Fee, Percent Fee	4.00%
Allowed Percentage Increase to Leasing Fee Payable	50.00%
Accounts payable – affiliates	$ 4,150		$ 5,278
Property Manager Fees and Reimbursements Incurred	5,951	$ 5,381
Property Manager Fees and Reimbursements Payable	2,190		3,338
Property Manager [Member] \| Property management fee [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	2,427	2,185
Accounts payable – affiliates	863		755
Property Manager [Member] \| Leasing Commissions [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	2,195	2,028
Accounts payable – affiliates	748		729
Property Manager [Member] \| Construction management fee [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	159	165
Accounts payable – affiliates	71		155
Property Manager [Member] \| Other fees and reimbursements [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	1,170	$ 1,003
Accounts payable – affiliates	$ 508		$ 1,699

Operating Leases Future Minimum Rents(Details) $ in Thousands	Mar. 31, 2016 USD ($)
Future rentals to be received under non-cancelable operating leases:
April 1 to December 31, 2016	$ 179,309
2017	167,446
2018	149,548
2019	126,547
2020	104,496
2021 and thereafter	415,966
Total	$ 1,143,312

Subsequent Events (Details) - Distributions to Stockholders - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	2 Months Ended	3 Months Ended
	May 02, 2016	Apr. 01, 2016	May 31, 2016	Apr. 30, 2016	Mar. 31, 2016	Mar. 31, 2015
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared					$ 0.17	$ 0.17
Change in accrued share repurchase obligation					$ 15,256	$ 15,798
Net cash distribution					$ 15,064	$ 14,366
Dividend Paid \| Subsequent Event
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared				$ 0.00183060
Gross amount of distribution paid	$ 10,054	$ 10,367
Change in accrued share repurchase obligation	4,887	5,076
Net cash distribution	$ 5,167	$ 5,291
Dividend Declared \| Subsequent Event
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared			$ 0.00183060

Subsequent Events (Details) - Tender Offer $ in Millions	Apr. 25, 2016 USD ($)
Subsequent Event \| Share Repurchase Program - Tender Offer
Subsequent Event [Line Items]
Stock Repurchase Program, Authorized Amount	$ 9.3