Quarterly report [Sections 13 or 15(d)]

Real Estate and Intangible Assets (Tables)

v3.26.1
Real Estate and Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2026
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, 2026 and December 31, 2025, respectively, excluding real estate held for sale (dollars in thousands):
March 31, 2026 December 31, 2025
Real estate:
Land (1) $ 150,873  $ 150,873 
Building and improvements 1,185,271  1,183,036 
Tenant improvements 56,536  56,536 
Accumulated depreciation (370,491) (359,513)
Real estate, net $ 1,022,189  $ 1,030,932 

(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 The acquisitions are summarized below (dollars in thousands):
Three Months Ended March 31, 2025
Location Aggregate Number of Properties (unaudited) Acquisition Date Aggregate Square Footage (unaudited) Weighted Average Remaining Lease Term at Time of Acquisition Aggregate Purchase Price Aggregate Capitalized Acquisition Expenses
Houston, TX 5 February 19, 2025 215,474  10.0 years $ 29,457  $ 207 
Dallas, TX 1 March 28, 2025 140,304  11.3 years 44,268  268 
6 355,778  10.8 years $ 73,725  $ 475 
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 that we 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 prepaid rent included in Other liabilities on the condensed consolidated balance sheets related to sale-leaseback acquisitions.
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, 2026 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, 2026 $ 102,778 
2027 125,727 
2028 114,746 
2029 107,545 
2030 96,352 
2031 88,233 
Thereafter 487,235 
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, 2026 and 2025, respectively (dollars in thousands):

For the three months ended March 31,
Lease revenue reconciliation 2026 2025 $ Change % Change
Fixed lease payments $ 36,726  $ 32,448  $ 4,278  13.2  %
Variable lease payments 5,183  5,053  130  2.6  %
$ 41,909  $ 37,501  $ 4,408  11.8  %
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, 2026 and December 31, 2025, respectively, excluding real estate held for sale (dollars in thousands):

March 31, 2026 December 31, 2025
Lease Intangibles Accumulated Amortization Lease Intangibles Accumulated Amortization
In-place leases $ 109,960  $ (71,358) $ 109,960  $ (69,932)
Leasing costs 106,257  (56,878) 105,468  (55,214)
Customer relationships 65,190  (40,602) 65,190  (39,893)
$ 281,407  $ (168,838) $ 280,618  $ (165,039)
Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion
Above market leases $ 11,843  $ (10,250) $ 11,843  $ (10,135)
Below market leases and deferred revenue (58,551) 42,238  (57,930) 40,739 
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