Quarterly report [Sections 13 or 15(d)]

Real Estate Dispositions, Held for Sale and Impairment Charges

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Real Estate Dispositions, Held for Sale and Impairment Charges
6 Months Ended
Jun. 30, 2026
Real Estate [Abstract]  
Real Estate Dispositions, Held for Sale and Impairment Charges Real Estate Dispositions, Held for Sale, and Impairment Charges
Real Estate Dispositions

During the six months ended June 30, 2026, we continued to execute our capital recycling program, under which we sell properties 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 properties as reasonable disposition opportunities become available. We sold one property, located in Charlotte, North Carolina, and a portion of a land parcel, located in Ocala, Florida, during the six months ended June 30, 2026, which are summarized in the table below (dollars in thousands):
Aggregate Square Footage Sold Aggregate Sales Price Aggregate Sales Costs Aggregate Gain on Sale of Real Estate, net
161,458  $ 14,899  $ 283  $ 3,676 

Our property disposition during the six months ended June 30, 2026 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 is included within continuing operations for all periods reported.

The table below summarizes the components of operating income from the property disposed of during the three and six months ended June 30, 2026 and 2025 (dollars in thousands):

For the three months ended June 30, For the six months ended June 30,
2026 2025 2026 2025
Operating revenue $ 2,325  $ 213  $ 2,513  $ 425 
Operating expense 169  13  337 
Other income, net 1,894  (1) —  1,894  (1) — 
Income from real estate and related assets sold $ 4,211  $ 44  $ 4,394  $ 88 

(1)Includes a $1.9 million gain on sale of real estate, net, from one property sale.

We sold one property and completed the sale transaction related to one property during the six months ended June 30, 2025.

Real Estate Held for Sale

At June 30, 2026, we did not have any properties classified as held for sale. At December 31, 2025, we had one property classified as held for sale, located in Charlotte, North Carolina, and a portion of a land parcel held for sale, located in Ocala, Florida, both of which have been sold as described above.

The table below summarizes the components of the assets and liabilities held for sale at December 31, 2025, reflected on the accompanying condensed consolidated balance sheets (dollars in thousands):

December 31, 2025
Assets Held for Sale
Total real estate held for sale $ 10,428 
Lease intangibles, net 832 
Total Assets Held for Sale $ 11,260 
Liabilities Held for Sale
Deferred rent liability, net $ 397 
Total Liabilities Held for Sale $ 397 

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, 2026 and did not recognize any impairment charge. We did not recognize any impairment charges on our held and used assets during the six months ended June 30, 2025. 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.