Quarterly report [Sections 13 or 15(d)]

Real Estate and Intangible Assets (Tables)

v3.25.1
Real Estate and Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2025
Real Estate [Abstract]  
Schedule of Components of Investments in Real Estate
The following table sets forth the components of our investments in real estate as of March 31, 2025 and December 31, 2024, respectively, excluding real estate held for sale (dollars in thousands):
March 31, 2025 December 31, 2024
Real estate:
Land (1) $ 145,313  $ 139,743 
Building and improvements 1,079,127  1,017,534 
Tenant improvements 55,098  54,516 
Accumulated depreciation (329,448) (319,646)
Real estate, net $ 950,090  $ 892,147 
(1)This amount includes $2,711 of land value subject to land lease agreements which we may purchase at our option for a nominal fee.
Schedule of Acquired Properties
We acquired six industrial properties during the three months ended March 31, 2025, and did not acquire any properties during the three months ended March 31, 2024. The acquisitions are summarized below (dollars in thousands):
Three Months Ended Aggregate Square Footage Weighted Average Remaining Lease Term at Time of Acquisition Aggregate Purchase Price Aggregate Capitalized Acquisition Expenses
March 31, 2025 (1) 355,778  10.8 years $ 73,725  $ 475 
(1)On February 19, 2025, we acquired a five-property, 215,474 square foot portfolio in Houston, Texas for $29.5 million. The property is fully leased to one tenant and had 10.0 years of remaining lease term at the time we acquired the property. On March 28, 2025, we acquired a 140,304 square foot property in Dallas-Fort Worth, Texas for $44.3 million. The property is fully leased to one tenant and had 11.3 years of remaining lease term at the time we acquired the property.
Schedule of Fair Value of Assets Acquired and Liabilities Assumed
We determined the fair value of assets acquired and liabilities assumed related to the properties acquired during the three months ended March 31, 2025 as follows (dollars in thousands):

Three Months Ended March 31, 2025
Acquired assets and liabilities Purchase price
Land $ 5,570  (1)
Building 58,778 
Tenant Improvements 582 
In-place Leases 4,358 
Leasing Costs 4,520 
Customer Relationships 2,032 
Below Market Leases (2,115) (2)
Total Purchase Price $ 73,725 
(1)The Dallas-Fort Worth, Texas property acquired is subject to a ground lease, therefore there is no land asset included on the condensed consolidated balance sheets.
(2)This amount includes $250 of loans receivable included in Other liabilities on the condensed consolidated balance sheets.
Schedule of Future Operating Lease Payments from Tenants Under Non-Cancelable Leases
Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for the nine months ending December 31, 2025 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):

Year Tenant Lease Payments
Nine Months Ending December 31, 2025 $ 94,158 
2026 123,282 
2027 108,964 
2028 96,402 
2029 88,487 
2030 76,278 
Thereafter 356,456 
Schedule of Future Sales-Type Lease Payments from Tenants under Non-Cancelable Leases
Future sales-types lease payments from tenants under non-cancelable leases and reasonably certain purchase options for the nine months ending December 31, 2025 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):
Year Tenant Lease Payments
Nine Months Ending December 31, 2025 $ 19,199 
2026 — 
2027 — 
2028 — 
2029 — 
Thereafter — 
$ 19,199 
Difference between undiscounted cash flow and present value 677 
Sales-type lease receivable $ 18,522 
Schedule of Allocation of Lease Revenue
The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three months ended March 31, 2025 and 2024, respectively (dollars in thousands):

For the three months ended March 31,
Lease revenue reconciliation 2025 2024 $ Change % Change
Fixed lease payments $ 32,448  $ 31,789  $ 659  2.1  %
Variable lease payments 5,053  3,932  1,121  28.5  %
$ 37,501  $ 35,721  $ 1,780  5.0  %
Schedule of Carrying Value of Intangible Assets, Liabilities and Accumulated Amortization
The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of March 31, 2025 and December 31, 2024, respectively, excluding real estate held for sale (dollars in thousands):

March 31, 2025 December 31, 2024
Lease Intangibles Accumulated Amortization Lease Intangibles Accumulated Amortization
In-place leases $ 100,750  $ (66,142) $ 96,392  $ (64,830)
Leasing costs 93,706  (50,417) 89,093  (48,963)
Customer relationships 62,409  (37,638) 60,377  (36,962)
$ 256,865  $ (154,197) $ 245,862  $ (150,755)
Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion
Above market leases $ 13,718  $ (11,705) $ 13,718  $ (11,582)
Below market leases and deferred revenue (58,481) 36,224  (56,616) 34,620 
Schedule of Weighted Average Amortization Period for Intangible Assets Acquired and Liabilities Assumed The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the three months ended March 31, 2025, were as follows:
Intangible Assets & Liabilities March 31, 2025
In-place leases 10.7
Leasing costs 10.7
Customer relationships 15.7
Below market leases 10.7
All intangible assets & liabilities 12.0