Real Estate Dispositions, Held for Sale and Impairment Charges |
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| Real Estate Dispositions, Held for Sale and Impairment Charges | Real Estate Dispositions, Held for Sale and Impairment Charges Real Estate Dispositions
We sold one property and completed the sale transaction related to one property during the six months ended June 30, 2025 and sold four properties during the six months ended June 30, 2024.
During the six months ended June 30, 2025, we continued to execute our capital recycling program, whereby we sell properties outside of our core markets and redeploy proceeds to either fund property acquisitions in our target secondary growth markets, or repay outstanding debt. We expect to continue to execute our capital recycling plan and sell non-core properties as reasonable disposition opportunities become available. During the six months ended June 30, 2025, we sold one non-core property, located in Hickory, North Carolina, which is summarized in the table below (dollars in thousands):
On April 30, 2025, we completed the transaction to sell our 676,031 square foot property in Tifton, Georgia for $18.5 million, incurring $0.3 million in closing costs, which are included in other expense in the condensed consolidated statement of operations for the three and six months ended June 30, 2025. During the year ended December 31, 2024, we recorded a sales-type lease receivable on this property and derecognized the carrying value of this property, recognizing a $3.9 million selling profit from sales-type lease, net, that was included in the gain on sale of real estate, net, in the consolidated statement of operations.
Our disposition during the six months ended June 30, 2025 was not classified as discontinued operations because it did not represent a strategic shift in operations, nor will it have a major effect on our operations and financial results. Accordingly, the operating results of this property are included within continuing operations for all periods reported.
The table below summarizes the components of operating income from the real estate and related assets disposed of during the three and six months ended June 30, 2025 and 2024 (dollars in thousands):
(1)Includes a $0.4 million gain on sale of real estate, net, from one property sale.
Real Estate Held for Sale
At June 30, 2025, we had one property classified as held for sale, located in Oklahoma City, Oklahoma. We consider this asset to be non-core to our long-term strategy. At December 31, 2024, we had two properties classified as held for sale, located in Tifton, Georgia and Hickory, North Carolina, and which have been sold as described above.
The table below summarizes the components of the assets and liabilities held for sale at June 30, 2025 and December 31, 2024, reflected on the accompanying condensed consolidated balance sheets (dollars in thousands):
Impairment Charges
We evaluated our portfolio for triggering events to determine if any of our held and used assets were impaired during the six months ended June 30, 2025 and did not recognize an impairment charge. We recognized an impairment charge of $0.01 million on our one held for sale asset during the six months ended June 30, 2025. In performing our held for sale assessment, the carrying value of this asset was above the fair value, less costs of sale. As a result, we impaired this property to equal the fair market value less costs of sale. We did not recognize an impairment charge on our held and used assets during the six months ended June 30, 2024. We recognized an impairment charge of $0.5 million on one held for sale asset, located in Richardson, Texas, during the six months ended June 30, 2024. In performing our held for sale assessment, the carrying value of this asset was above the fair value, less costs of sale. As a result, we impaired this property to equal the fair market value less costs of sale.
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