XML 34 R23.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Segment Reporting | 3 Months Ended
--- | ---
Mar. 31, 2024
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting As a result of the Mergers and the related strategic shift in the Company’s operations, the Company has concluded it operates in four reportable segments consistent with its current management internal financial reporting purposes: (1) Industrial & Distribution (2) Multi-Tenant Retail (3) Single-Tenant Retail and (4) Office. The Company will evaluate performance and make resource allocations based on its four business segments. The Company is reporting its business segments using the “management approach” model for segment reporting, whereby the Company determines its reportable business segments based on the way the chief operating decision maker organizes business segments within the Company for making operating decisions and assessing financial performance. The Company’s chief operating decision maker receives and reviews financial information based on the Company's four segments. The Company evaluates business segment performance based upon net operating income, which is defined as total revenues from tenants, less property operating costs. The segments are managed separately due to the property type and the accounting policies are consistent across each segment. See below for a description of net operating income. Previously, before the Mergers, the Company concluded it was operating in one segment. Upon concluding that a change in its reporting segments has occurred, the Company is required to retroactively restate the historical operating results for the segment for all periods presented in that filing and, thereafter, the Company will restate other prior periods when they are subsequently reported in later filings for comparative purposes. Net Operating Income The Company evaluates the performance of the combined properties in each segment based on total revenues from tenants, less property operating costs. As such, this excludes all other items of expense and income included in the financial statements in calculating net income (loss). The Company uses net operating income at the segment level to assess and compare property level performance and to make decisions concerning the operation of the properties. The Company believes that the net operating income of each segment is useful as a performance measure because, when compared across periods, the net operating income of each segment reflects the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income (loss). The net operating income of each segment excludes certain components from net income (loss) in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. The net operating income of the Company’s segments presented by the Company may not be comparable to similar measures reported by other REITs that define net operating income differently. The following table provides operating financial information for the Company’s four reportable segments:
|  | Three Months Ended March 31, |  |
(In thousands) |  | 2024 |  | 2023 |  |  |  |
Industrial & Distribution: |  |  |  |  |  |  |  |
Revenue from tenants |  | $ | 61,994 |  |  | $ | 52,824 |  |  |  |  |
Property operating expense |  | 4,679 |  |  | 3,361 |  |  |  |  |
Net Operating Income |  | $ | 57,315 |  |  | $ | 49,463 |  |  |  |  |
Multi-Tenant Retail: |  |  |  |  |  |  |  |
Revenue from tenants |  | $ | 66,803 |  |  | $ | — |  |  |  |  |
Property operating expense |  | 22,906 |  |  | — |  |  |  |  |
Net Operating Income |  | $ | 43,897 |  |  | $ | — |  |  |  |  |
Single-Tenant Retail: |  |  |  |  |  |  |  |
Revenue from tenants |  | $ | 40,786 |  |  | $ | 3,737 |  |  |  |  |
Property operating expense |  | 4,770 |  |  | 148 |  |  |  |  |
Net Operating Income |  | $ | 36,016 |  |  | $ | 3,589 |  |  |  |  |
Office: |  |  |  |  |  |  |  |
Revenue from tenants |  | $ | 36,462 |  |  | $ | 37,771 |  |  |  |  |
Property operating expense |  | 5,475 |  |  | 4,637 |  |  |  |  |
Net Operating Income |  | $ | 30,987 |  |  | $ | 33,134 |  |  |  |  |
Reconciliation to Consolidated Financial Information A reconciliation of the total reportable segment's revenue from tenants to consolidated revenue from tenants and the total reportable segment’s net operating income to consolidated net (loss) income before taxes and consolidated net (loss) income attributable to common stockholders is as follows:
|  | Three Months Ended March 31, |  |
(In thousands) |  | 2024 |  | 2023 |  |  |  |
Revenue From Tenants: |  |  |  |  |  |  |  |
Industrial & Distribution |  | $ | 61,994 |  |  | $ | 52,824 |  |  |  |  |
Multi-Tenant Retail |  | 66,803 |  |  | — |  |  |  |  |
Single-Tenant Retail |  | 40,786 |  |  | 3,737 |  |  |  |  |
Office |  | 36,462 |  |  | 37,771 |  |  |  |  |
Total Consolidated Revenue From Tenants |  | $ | 206,045 |  |  | $ | 94,332 |  |  |  |  |
Net (loss) income before income tax and net (loss) income attributable to common stockholders: |  |  |  |  |  |  |  |
Net Operating Income: |  |  |  |  |  |  |  |
Industrial & Distribution |  | $ | 57,315 |  |  | $ | 49,463 |  |  |  |  |
Multi-Tenant Retail |  | 43,897 |  |  | — |  |  |  |  |
Single-Tenant Retail |  | 36,016 |  |  | 3,589 |  |  |  |  |
Office |  | 30,987 |  |  | 33,134 |  |  |  |  |
Total net operating income |  | 168,215 |  |  | 86,186 |  |  |  |  |
Operating fees to related parties |  | — |  |  | (10,101) |  |  |  |  |
Impairment charges |  | (4,327) |  |  | — |  |  |  |  |
Merger, transaction and other costs |  | (761) |  |  | (99) |  |  |  |  |
Settlement costs |  | — |  |  | — |  |  |  |  |
General and administrative |  | (16,177) |  |  | (5,660) |  |  |  |  |
Equity-based compensation |  | (1,973) |  |  | (2,925) |  |  |  |  |
Depreciation and amortization |  | (92,000) |  |  | (37,029) |  |  |  |  |
Gain on dispositions of real estate investments |  | 5,867 |  |  | — |  |  |  |  |
Interest expense |  | (82,753) |  |  | (26,965) |  |  |  |  |
Loss on extinguishment of debt |  | (58) |  |  | — |  |  |  |  |
Gain on derivative instruments |  | 1,588 |  |  | (1,656) |  |  |  |  |
Unrealized income on undesignated foreign currency advances and other hedge ineffectiveness |  | 1,032 |  |  | — |  |  |  |  |
Other income |  | (16) |  |  | 66 |  |  |  |  |
Net (loss) income before income tax |  | (21,363) |  |  | 1,817 |  |  |  |  |
Income tax expense |  | (2,388) |  |  | (2,707) |  |  |  |  |
Net loss |  | (23,751) |  |  | (890) |  |  |  |  |
Preferred stock dividends |  | (10,936) |  |  | (5,099) |  |  |  |  |
Net loss attributable to common stockholders |  | $ | (34,687) |  |  | $ | (5,989) |  |  |  |  |
The following table reconciles real estate investments, net by segment to consolidated total assets as of the periods presented:
(In thousands) |  | March 31, 2024 |  | December 31, 2023
Investments in real estate, net: |  |  |  |
Industrial & Distribution |  | $ | 2,448,653 |  |  | $ | 2,479,804 |
Multi-tenant retail |  | 2,132,469 |  |  | 2,174,064 |
Single-tenant retail |  | 1,629,629 |  |  | 1,687,733 |
Office |  | 1,207,639 |  |  | 1,230,719 |
Total investments in real estate, net |  | 7,418,390 |  |  | 7,572,320 |
Assets held for sale |  | 14,047 |  |  | 3,188 |
Cash and cash equivalents |  | 131,880 |  |  | 121,566 |
Restricted cash |  | 51,817 |  |  | 40,833 |
Derivative assets, at fair value |  | 12,144 |  |  | 10,615 |
Unbilled straight line rent |  | 86,995 |  |  | 84,254 |
Operating lease right-of-use asset |  | 75,475 |  |  | 77,008 |
Prepaid expenses and other assets |  | 110,706 |  |  | 121,997 |
Deferred tax assets |  | 4,791 |  |  | 4,808 |
Goodwill and other intangible assets, net |  | 48,540 |  |  | 46,976 |
Deferred financing costs, net |  | 14,011 |  |  | 15,412 |
Total assets |  | $ | 7,968,796 |  |  | $ | 8,098,977 |

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

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration