XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Real Estate Investments, Net | 3 Months Ended
--- | ---
Mar. 31, 2024
Real Estate [Abstract] |
Real Estate Investments, Net | Real Estate Investments, Net Property Acquisitions The following table presents the allocation of the assets acquired and liabilities assumed during the three months ended March 31, 2023, and, in the case of assets located outside of the U.S., based on the applicable exchange rate at the time of purchase. The Company did not acquire any properties during the three months ended March 31, 2024. All of the acquisitions in the three months ended March 31, 2023 were considered asset acquisitions for accounting purposes.
|  |  |  | Three Months Ended March 31,
(Dollar amounts in thousands) |  |  |  | 2023
Assets Acquired: |  |  |  |
Real estate investments, at cost: |  |  |  |
Land |  |  |  | $ | 4,757 |
Buildings, fixtures and improvements |  |  |  | 30,087 |
Total tangible assets |  |  |  | 34,844 |
Intangibles acquired: |  |  |  |
In-place leases |  |  |  | 4,128 |
Above-market lease assets |  |  |  | 40,964 |
Total Intangible assets |  |  |  | 45,092 |
Right-of -use asset |  |  |  | 1,426 |
Cash paid for acquired real estate investments |  |  |  | $ | 81,362 |
Number of properties purchased |  |  |  | 8 |
The following table summarizes the acquisitions by property type, listed by reportable segment, during the three months ended March 31, 2023:
Property Type |  | Number of Properties |  | Square Feet (unaudited)
Properties Acquired in 2023: |  |  |  |
Industrial & Distribution |  | — |  |  | — |
Multi-Tenant Retail |  | — |  |  | — |
Single-Tenant Retail |  | 8 |  |  | 323,730 |
Office |  | — |  |  | — |
|  | 8 |  |  | 323,730 |
Acquired Intangible Lease Assets The Company allocates a portion of the fair value of real estate acquired to identified intangible assets and liabilities, consisting of the value of origination costs (tenant improvements, leasing commissions, and legal and marketing costs), the value of above-market and below-market leases, and the value of tenant relationships, if applicable, based in each case on their relative fair values. The Company periodically assesses whether there are any indicators that the value of the intangible assets may be impaired by performing a net present value analysis of future cash flows, discounted for the inherent risk associated with each investment. The Company did not record any impairment charges on its acquired intangible assets during the three months ended March 31, 2024 or 2023. Impairment Charges The Company recorded aggregate impairment charges of $4.3 million during the three months ended March 31, 2024 and did not record any impairment charges during the three months ended March 31, 2023. •During the three months ended March 31, 2024, the Company determined that six of its properties located in the U.S. (all of which were acquired in the REIT Merger) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties, and as a result, the Company recorded an impairment charge of approximately $4.3 million. Dispositions During the three months ended March 31, 2024, the Company sold 19 properties, 17 of which were acquired in the REIT Merger, and recorded a net gain of $5.9 million during the three months ended March 31, 2024. During the three months ended March 31, 2023, the Company did not sell any properties. The following table summarizes the aforementioned properties sold:
Portfolio |  | Country/States |  | Disposition Month(s) |  | Number of Properties |  | Square Feet (unaudited)
Properties Sold in 2024: |  |  |  |  |  |  |  |
O’Charley’s |  | AL, IN, TN, MS |  | February & March |  | 5 |  | 31,610 |
Truist Bank |  | FL, GA, TN |  | February & March |  | 11 |  | 45,314 |
Fife Council |  | United Kingdom |  | February |  | 1 |  | 37,331 |
TOMs King |  | PA |  | February |  | 1 |  | 4,107 |
FedEx |  | MN |  | March |  | 1 |  | 11,501 |
|  |  |  |  |  | 19 |  | 129,863 |
Assets Held for Sale When assets are identified by management as held for sale, the Company stops recognizing depreciation and amortization expense on the identified assets and estimates the sales price, net of costs to sell, of those assets. If the carrying amount of the assets classified as held for sale exceeds the estimated net sales price, the Company records an impairment charge equal to the amount by which the carrying amount of the assets exceeds the Company’s estimate of the net sales price of the assets. As of March 31, 2024, the Company evaluated its assets for held for sale classification and determined that six properties, all of which were acquired in the Merger, qualified for held for sale treatment based on the Company's accounting policies. Because these assets are considered held for sale, the operating results remain classified within continuing operations for all periods presented. The following table details the major classes of the assets associated with the property that the Company determined to be classified as held for sale as of March 31, 2024 and December 31, 2023:
(Dollar amounts in thousands) |  | March 31, 2024 |  | December 31, 2023
Real estate investments held for sale, at cost: |  |  |  |
Land |  | $ | 3,185 |  |  | $ | 860 |
Buildings, fixtures and improvements |  | 9,751 |  |  | 2,349 |
Acquired intangible lease assets |  | 1,201 |  |  | — |
Total real estate assets held for sale, at cost |  | 14,137 |  |  | 3,209 |
Less accumulated depreciation and amortization |  | (90) |  |  | (21) |
Total real estate investments held for sale, net |  | $ | 14,047 |  |  | $ | 3,188 |
Significant Tenants There were no tenants whose annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis for all properties as of March 31, 2024 and December 31, 2023. The termination, delinquency or non-renewal of leases by any major tenant may have a material adverse effect on revenues. Geographic Concentration The following table lists the countries where the Company has concentrations of properties where annualized rental income on a straight-line basis represented greater than 10.0% of consolidated annualized rental income on a straight-line basis as of March 31, 2024 and December 31, 2023. No U.S. state had a concentration over 10% as of March 31, 2024 and December 31, 2023.
Country / U.S. State |  | March 31, 2024 |  | December 31, 2023
United States |  | 79.7% |  | 79.7%
United Kingdom |  | 11.0% |  | 11.1%

X
- References No definition available. + Details
Name: | us-gaap_RealEstateAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 976 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//976/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 978 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//978/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 970 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//970/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 972 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//972/tableOfContent Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 974 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//974/tableOfContent + Details
Name: | us-gaap_RealEstateDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration