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Segment Reporting | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting As a result of the agreement to sell 100 of the 101 properties in its Multi-Tenant Retail segment in connection with the Multi-Tenant Retail Disposition, the Company determined, during the first quarter of 2025, that it has three remaining reportable segments based on property type: (1) Industrial & Distribution, (2) Retail and (3) Office. Previously, during the year ended December 31, 2024, the Company concluded it was operating in four segments. Due to the classification of the Multi-Tenant Retail Portfolio as a discontinued operation, the segment disclosure tables below separately present the results of these properties within loss from discontinued operations, and they present the related assets separately as assets related to discontinued operations (for additional information, see Note 3 — Multi-Tenant Retail Disposition). Prior periods have been conformed to the discontinued operations classification. Amounts for the one Multi-Tenant Retail property that was not included in the Multi-Tenant Retail Disposition have been reclassified and included in the Retail segment for all periods in the tables below. The Company evaluates performance and makes resource allocations based on its three 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, who is the Company’s Chief Executive Officer and President, receives and reviews financial information based on the Company's three 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. 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, do not impact 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 reportable segments:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Industrial & Distribution: |  |  |  |  |  |  |  |
Revenue from tenants |  | $ | 56,698 |  |  | $ | 59,654 |  |  | $ | 169,705 |  |  | $ | 183,084 |
Property operating expense |  | 4,593 |  |  | 5,494 |  |  | 14,099 |  |  | 15,126 |
Net Operating Income |  | $ | 52,105 |  |  | $ | 54,160 |  |  | $ | 155,606 |  |  | $ | 167,958 |
Retail (1), (2): |  |  |  |  |  |  |  |
Revenue from tenants |  | $ | 30,292 |  |  | $ | 39,602 |  |  | $ | 102,606 |  |  | $ | 122,886 |
Property operating expense |  | 4,050 |  |  | 2,911 |  |  | 10,944 |  |  | 11,969 |
Net Operating Income |  | $ | 26,242 |  |  | $ | 36,691 |  |  | $ | 91,662 |  |  | $ | 110,917 |
Office (2): |  |  |  |  |  |  |  |
Revenue from tenants |  | $ | 34,023 |  |  | $ | 35,029 |  |  | $ | 106,022 |  |  | $ | 104,796 |
Property operating expense |  | 4,026 |  |  | 4,961 |  |  | 13,597 |  |  | 14,339 |
Net Operating Income |  | $ | 29,997 |  |  | $ | 30,068 |  |  | $ | 92,425 |  |  | $ | 90,457 |
Multi-Tenant Retail (3): |  |  |  |  |  |  |  |
Revenue from tenants |  | $ | — |  |  | $ | 4,381 |  |  | $ | — |  |  | $ | 21,244 |
Property operating expense |  | — |  |  | 1,798 |  |  | — |  |  | 7,460 |
Net Operating Income |  | $ | — |  |  | $ | 2,583 |  |  | $ | — |  |  | $ | 13,784 |
_________ (1) Amounts in the Retail segment reflect the reclassification and inclusion of one property that was previously part of the Multi-Tenant Retail segment, which was not included in the Multi-Tenant Retail Disposition. (2) Prior period amounts in the Retail segment and Office segment reflect changes to the reclassification of one tenant from the Office segment to the Retail segment to conform to the current year presentation based on a re-evaluation of the property type. (3) Reflects former Multi-Tenant Retail properties that were sold individually prior to December 31, 2024. Does not include the Multi-Tenant Retail Portfolio which is presented as a discontinued operation (see Note 3 — Multi-Tenant Retail Disposition for additional information). 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 September 30, |  | Nine Months Ended September 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Revenue From Tenants: |  |  |  |  |  |  |  |
Industrial & Distribution |  | $ | 56,698 |  |  | $ | 59,654 |  |  | $ | 169,705 |  |  | $ | 183,084 |
Retail (1) (2) |  | 30,292 |  |  | 39,602 |  |  | 102,606 |  |  | 122,886 |
Office (2) |  | 34,023 |  |  | 35,029 |  |  | 106,022 |  |  | 104,796 |
Multi-Tenant Retail (3) |  | — |  |  | 4,381 |  |  | — |  |  | 21,244 |
Total Consolidated Revenue From Tenants |  | $ | 121,013 |  |  | $ | 138,666 |  |  | $ | 378,333 |  |  | $ | 432,010 |
Net (loss) income before income tax and net (loss) income attributable to common stockholders: |  |  |  |  |  |  |  |
Net Operating Income: |  |  |  |  |  |  |  |
Industrial & Distribution |  | $ | 52,105 |  |  | $ | 54,160 |  |  | $ | 155,606 |  |  | $ | 167,958 |
Retail (1) (2) |  | 26,242 |  |  | 36,691 |  |  | 91,662 |  |  | 110,917 |
Office (2) |  | 29,997 |  |  | 30,068 |  |  | 92,425 |  |  | 90,457 |
Multi-Tenant Retail (3) |  | — |  |  | 2,583 |  |  | — |  |  | 13,784 |
Total net operating income |  | 108,344 |  |  | 123,502 |  |  | 339,693 |  |  | 383,116 |
Impairment charges |  | (55,433) |  |  | (38,483) |  |  | (125,560) |  |  | (70,212) |
Merger, transaction and other costs |  | (1,623) |  |  | (1,901) |  |  | (5,204) |  |  | (4,230) |
General and administrative |  | (11,834) |  |  | (10,937) |  |  | (39,376) |  |  | (39,346) |
Equity-based compensation |  | (3,059) |  |  | (2,309) |  |  | (9,490) |  |  | (6,622) |
Depreciation and amortization |  | (44,780) |  |  | (52,746) |  |  | (146,750) |  |  | (166,572) |
Goodwill impairment |  | — |  |  | — |  |  | (7,134) |  |  | — |
(Loss) gain on dispositions of real estate investments |  | (5,797) |  |  | (4,280) |  |  | (5,938) |  |  | 35,702 |
Interest expense |  | (45,307) |  |  | (59,504) |  |  | (152,092) |  |  | (196,081) |
Loss on extinguishment of debt |  | (4,121) |  |  | (317) |  |  | (8,887) |  |  | (13,464) |
Gain (Loss) on derivative instruments |  | 2,271 |  |  | (4,747) |  |  | (10,408) |  |  | (2,650) |
Unrealized income (loss) on undesignated foreign currency advances and other hedge ineffectiveness |  | 31 |  |  | — |  |  | (12,644) |  |  | 1,332 |
Other income |  | 1,820 |  |  | 76 |  |  | 3,551 |  |  | 381 |
Net loss before income tax |  | (59,488) |  |  | (51,646) |  |  | (180,239) |  |  | (78,646) |
Income tax expense |  | (3,092) |  |  | (1,312) |  |  | (9,367) |  |  | (3,420) |
Loss from continuing operations |  | (62,580) |  |  | (52,958) |  |  | (189,606) |  |  | (82,066) |
Income (loss) from discontinued operations |  | 2,464 |  |  | (12,677) |  |  | (84,032) |  |  | (42,984) |
Net loss |  | (60,116) |  |  | (65,635) |  |  | (273,638) |  |  | (125,050) |
Preferred stock dividends |  | (10,935) |  |  | (10,936) |  |  | (32,807) |  |  | (32,808) |
Net loss attributable to common stockholders |  | $ | (71,051) |  |  | $ | (76,571) |  |  | $ | (306,445) |  |  | $ | (157,858) |
_________ (1) Amounts in the Retail segment reflect the reclassification and inclusion of one property that was previously part of the Multi-Tenant Retail segment, which was not included in the Multi-Tenant Retail Disposition. (2) Prior period amounts in the Retail segment and Office segment reflect changes to the reclassification of one tenant from the Office segment to the Retail segment to conform to the current year presentation based on a re-evaluation of the property type. (3) Reflects former Multi-Tenant Retail properties that were sold individually prior to December 31, 2024. Does not include the Multi-Tenant Retail Portfolio which is presented as a discontinued operation (see Note 3 — Multi-Tenant Retail Disposition for additional information). The following table reconciles real estate investments, net by segment to consolidated total assets as of the periods presented:
(In thousands) |  | September 30, 2025 (1) |  | December 31, 2024 (1)
Investments in real estate, net: |  |  |  |
Industrial & Distribution |  | $ | 2,050,223 |  |  | $ | 2,180,309 |
Retail (2) |  | 1,159,475 |  |  | 1,402,600 |
Office |  | 965,994 |  |  | 1,039,124 |
Total investments in real estate, net |  | 4,175,692 |  |  | 4,622,033 |
Real estate assets held for sale |  | 33,636 |  |  | 17,406 |
Assets of discontinued operations |  | 1,638 |  |  | 1,816,131 |
Cash and cash equivalents |  | 165,095 |  |  | 159,698 |
Restricted cash |  | 37,514 |  |  | 64,510 |
Derivative assets, at fair value |  | — |  |  | 2,471 |
Unbilled straight line rent |  | 83,106 |  |  | 89,804 |
Operating lease right-of-use asset |  | 69,912 |  |  | 66,163 |
Prepaid expenses and other assets |  | 73,674 |  |  | 51,504 |
Multi-tenant disposition receivable, net |  | 55,916 |  |  | — |
Deferred tax assets |  | 4,894 |  |  | 4,866 |
Goodwill and other intangible assets, net |  | 45,983 |  |  | 51,370 |
Deferred financing costs, net |  | 18,110 |  |  | 9,808 |
Total assets |  | $ | 4,765,170 |  |  | $ | 6,955,764 |
_______ (1) Amounts reflect the presentation of the Multi-Tenant Retail Portfolio as a discontinued operation (see Note 3 — Multi-Tenant Retail Disposition for additional information). (2) Amounts in the Retail segment reflect the reclassification and inclusion of one property that was previously part of the Multi-Tenant Retail segment, which was not included in the Multi-Tenant Retail Disposition. Geographic Information Other than the U.S. and United Kingdom, no country or tenant individually comprised more than 10% of the Company’s annualized revenue from tenants on a straight-line basis, or total long-lived assets at September 30, 2025. The following tables present the geographic information for Revenue from tenants and Investments in real estate:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Revenue from tenants: |  |  |  |  |  |  |  |
United States |  | $ | 84,765 |  |  | $ | 100,689 |  |  | $ | 263,999 |  |  | $ | 320,108 |
United Kingdom |  | 18,777 |  |  | 21,499 |  |  | 62,867 |  |  | 63,527 |
Europe |  | 16,681 |  |  | 15,681 |  |  | 49,132 |  |  | 45,976 |
Canada |  | 790 |  |  | 797 |  |  | 2,335 |  |  | 2,399 |
Total |  | $ | 121,013 |  |  | $ | 138,666 |  |  | $ | 378,333 |  |  | $ | 432,010 |
(In thousands) |  | September 30, 2025 |  | December 31, 2024
Investments in real estate, gross: |  |  |  |
United States |  | $ | 3,766,389 |  |  | $ | 4,231,893 |
United Kingdom |  | 803,267 |  |  | 799,624 |
Europe |  | 586,684 |  |  | 554,133 |
Canada |  | 37,477 |  |  | 36,292 |
Total |  | $ | 5,193,817 |  |  | $ | 5,621,942 |
Acquired Intangible Liabilities, Gross |  |  |  |
United States |  | $ | 19,441 |  |  | $ | 30,983 |
United Kingdom |  | 5,887 |  |  | 5,279 |
Europe |  | 12,301 |  |  | 10,669 |
Canada |  | 20 |  |  | 19 |
Total |  | $ | 37,649 |  |  | $ | 46,950 |

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- 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 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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