Real Estate and Intangible Assets (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Real Estate [Abstract] |
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| Schedule of Components of Investments in Real Estate |
The following table sets forth the components of our investments in real estate as of September 30, 2026 and December 31, 2025, respectively, excluding real estate held for sale (dollars in thousands):
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September 30, 2026 |
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December 31, 2025 |
| Real estate: |
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| Land (1) |
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$ |
152,052 |
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$ |
150,873 |
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| Building and improvements |
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1,217,829 |
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1,183,036 |
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| Tenant improvements |
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57,750 |
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56,536 |
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| Accumulated depreciation |
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(393,032) |
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(359,513) |
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| Real estate, net |
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$ |
1,034,599 |
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$ |
1,030,932 |
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(1)This amount includes $2,711 of land value subject to land lease agreements which we may purchase at our option for a nominal fee.
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| Schedule of Acquired Properties |
The acquisitions are summarized below (dollars in thousands):
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Nine Months Ended September 30, 2026 |
| Location |
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Aggregate Number of Properties (unaudited) |
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Acquisition Date |
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Aggregate Square Footage (unaudited) |
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Weighted Average Remaining Lease Term at Time of Acquisition |
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Aggregate Purchase Price |
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Aggregate Capitalized Acquisition Expenses |
| Newport News, VA |
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1 |
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May 20, 2026 |
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153,890 |
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5.9 years |
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$ |
23,004 |
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$ |
254 |
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| Red Bud, IL |
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1 |
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July 28, 2026 |
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146,650 |
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8.4 years |
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6,690 |
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140 |
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2 |
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300,540 |
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6.6 years |
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$ |
29,694 |
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$ |
394 |
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Nine Months Ended September 30, 2025 |
| Location |
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Aggregate Number of Properties (unaudited) |
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Acquisition Date |
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Aggregate Square Footage (unaudited) |
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Weighted Average Remaining Lease Term at Time of Acquisition |
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Aggregate Purchase Price |
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Aggregate Capitalized Acquisition Expenses |
| Houston, TX |
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5 |
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February 19, 2025 |
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215,474 |
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10.0 years |
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$ |
29,457 |
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$ |
207 |
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| Dallas-Fort Worth, TX |
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1 |
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March 28, 2025 |
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140,304 |
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11.3 years |
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44,268 |
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268 |
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| Germantown, WI |
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1 |
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May 9, 2025 |
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303,991 |
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19.4 years |
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62,851 |
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151 |
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| Harrison Township, MI |
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3 |
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June 25, 2025 |
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215,102 |
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10.0 years |
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16,491 |
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241 |
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| Cartersville, GA |
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1 |
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September 30, 2025 |
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117,430 |
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20.0 years |
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12,195 |
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56 |
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| Ossian, IN |
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1 |
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September 30, 2025 |
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263,756 |
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20.0 years |
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19,531 |
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56 |
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| Ligonier, IN |
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1 |
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September 30, 2025 |
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159,277 |
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20.0 years |
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10,641 |
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56 |
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| Caro, MI |
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4 |
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September 30, 2025 |
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86,751 |
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20.0 years |
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5,823 |
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58 |
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| Chesterfield, MI |
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1 |
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September 30, 2025 |
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39,701 |
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20.0 years |
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4,747 |
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57 |
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| Cass City, MI |
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1 |
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September 30, 2025 |
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26,321 |
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20.0 years |
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1,901 |
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55 |
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19 |
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1,568,107 |
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15.9 years |
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$ |
207,905 |
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$ |
1,205 |
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| 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 nine months ended September 30, 2026 and 2025 as follows (dollars in thousands):
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Nine Months Ended September 30, 2026 |
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Nine Months Ended September 30, 2025 |
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| Acquired assets and liabilities |
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Purchase price |
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Purchase price |
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| Land |
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$ |
2,039 |
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$ |
13,107 |
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(1) |
| Building |
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21,344 |
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160,301 |
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| Tenant Improvements |
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1,448 |
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2,293 |
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| In-place Leases |
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1,910 |
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14,739 |
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| Leasing Costs |
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853 |
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14,416 |
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| Customer Relationships |
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2,144 |
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5,636 |
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| Above Market Leases |
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72 |
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905 |
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(2) |
| Below Market Leases |
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(116) |
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(3,492) |
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(3) |
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| Total Purchase Price |
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$ |
29,694 |
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$ |
207,905 |
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(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 $838 of loans receivable included in Other assets on the condensed consolidated balance sheets related to sale-leaseback acquisitions.
(3)This amount includes $1,627 of prepaid rent included in Other liabilities on the condensed consolidated balance sheets related to sale-leaseback acquisitions.
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| 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 three months ending December 31, 2026 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):
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| Year |
Tenant Lease Payments |
| Three Months Ending December 31, 2026 |
$ |
34,717 |
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| 2027 |
130,293 |
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| 2028 |
122,038 |
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| 2029 |
116,085 |
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| 2030 |
107,776 |
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| 2031 |
99,708 |
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| Thereafter |
510,402 |
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| 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 and nine months ended September 30, 2026 and 2025, respectively (dollars in thousands):
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For the three months ended September 30, |
| Lease revenue reconciliation |
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2026 |
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2025 |
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$ Change |
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% Change |
| Fixed lease payments |
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$ |
36,813 |
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$ |
35,464 |
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$ |
1,349 |
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3.8 |
% |
| Variable lease payments |
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5,606 |
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5,377 |
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229 |
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4.3 |
% |
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$ |
42,419 |
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$ |
40,841 |
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$ |
1,578 |
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3.9 |
% |
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For the nine months ended September 30, |
| Lease revenue reconciliation |
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2026 |
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2025 |
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$ Change |
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% Change |
| Fixed lease payments |
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$ |
112,450 |
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$ |
102,240 |
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$ |
10,210 |
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10.0 |
% |
| Variable lease payments |
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15,867 |
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15,635 |
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232 |
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1.5 |
% |
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$ |
128,317 |
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$ |
117,875 |
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$ |
10,442 |
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8.9 |
% |
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| 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 September 30, 2026 and December 31, 2025, respectively, excluding real estate held for sale (dollars in thousands):
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September 30, 2026 |
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December 31, 2025 |
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Lease Intangibles |
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Accumulated Amortization |
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Lease Intangibles |
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Accumulated Amortization |
| In-place leases |
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$ |
111,538 |
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$ |
(74,202) |
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$ |
109,960 |
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$ |
(69,932) |
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| Leasing costs |
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109,348 |
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(60,286) |
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105,468 |
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(55,214) |
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| Customer relationships |
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67,000 |
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(42,158) |
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65,190 |
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(39,893) |
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$ |
287,886 |
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$ |
(176,646) |
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$ |
280,618 |
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$ |
(165,039) |
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Deferred Rent Receivable/(Liability) |
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Accumulated (Amortization)/Accretion |
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Deferred Rent Receivable/(Liability) |
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Accumulated (Amortization)/Accretion |
| Above market leases |
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$ |
11,915 |
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$ |
(10,480) |
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$ |
11,843 |
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$ |
(10,135) |
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| Below market leases and deferred revenue |
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(60,536) |
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44,202 |
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(57,930) |
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40,739 |
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| 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 nine months ended September 30, 2026 and 2025, were as follows:
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| Intangible Assets & Liabilities |
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September 30, 2026 |
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September 30, 2025 |
| In-place leases |
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7.4 |
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18.2 |
| Leasing costs |
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7.4 |
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18.2 |
| Customer relationships |
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11.1 |
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22.9 |
| Above market leases |
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8.4 |
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19.7 |
| Below market leases |
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5.9 |
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18.4 |
| All intangible assets & liabilities |
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8.2 |
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19.4 |
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