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Segment Reporting | 6 Months Ended
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Jun. 30, 2026
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company has three reportable segments based on property type: (1) Industrial & Distribution, (2) Retail and (3) Office. Due to the classification of the Multi-Tenant Retail Portfolio as a discontinued operation, the tables below do not include the results of the Multi-Tenant Retail Portfolio, which are classified within loss from discontinued operations in our consolidated statements of operations for the six months ended June 30, 2026 and 2025 (for additional information, see Note 3 — Multi-Tenant Retail Disposition to our consolidated financial statements included in this Quarterly Report on Form 10-Q). 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 June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2026 |  | 2025 |  | 2026 |  | 2025
Industrial & Distribution: |  |  |  |  |  |  |  |
Revenue from tenants |  | $ | 51,692 |  |  | $ | 54,997 |  |  | $ | 100,876 |  |  | $ | 113,008 |
Property operating expense |  | 5,644 |  |  | 4,235 |  |  | 10,900 |  |  | 9,507 |
Net Operating Income |  | $ | 46,048 |  |  | $ | 50,762 |  |  | $ | 89,976 |  |  | $ | 103,501 |
Retail: |  |  |  |  |  |  |  |
Revenue from tenants |  | $ | 29,995 |  |  | $ | 35,357 |  |  | $ | 59,541 |  |  | $ | 72,314 |
Property operating expense |  | 3,828 |  |  | 3,002 |  |  | 7,503 |  |  | 6,893 |
Net Operating Income |  | $ | 26,167 |  |  | $ | 32,355 |  |  | $ | 52,038 |  |  | $ | 65,421 |
Office: |  |  |  |  |  |  |  |
Revenue from tenants |  | $ | 30,788 |  |  | $ | 34,551 |  |  | $ | 61,344 |  |  | $ | 71,998 |
Property operating expense |  | 3,928 |  |  | 4,781 |  |  | 7,922 |  |  | 9,571 |
Net Operating Income |  | $ | 26,860 |  |  | $ | 29,770 |  |  | $ | 53,422 |  |  | $ | 62,427 |
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 June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2026 |  | 2025 |  | 2026 |  | 2025
Revenue From Tenants: |  |  |  |  |  |  |  |
Industrial & Distribution |  | $ | 51,692 |  |  | $ | 54,997 |  |  | $ | 100,876 |  |  | $ | 113,008 |
Retail |  | 29,995 |  |  | 35,357 |  |  | 59,541 |  |  | 72,314 |
Office |  | 30,788 |  |  | 34,551 |  |  | 61,344 |  |  | 71,998 |
Total Consolidated Revenue From Tenants |  | $ | 112,475 |  |  | $ | 124,905 |  |  | $ | 221,761 |  |  | $ | 257,320 |
Net income (loss) before income tax and net loss attributable to common stockholders: |  |  |  |  |  |  |  |
Net Operating Income: |  |  |  |  |  |  |  |
Industrial & Distribution |  | $ | 46,048 |  |  | $ | 50,762 |  |  | $ | 89,976 |  |  | $ | 103,501 |
Retail |  | 26,167 |  |  | 32,355 |  |  | 52,038 |  |  | 65,421 |
Office |  | 26,860 |  |  | 29,770 |  |  | 53,422 |  |  | 62,427 |
Total net operating income |  | 99,075 |  |  | 112,887 |  |  | 195,436 |  |  | 231,349 |
Impairment charges |  | (3,695) |  |  | (9,812) |  |  | (14,810) |  |  | (70,127) |
Merger, transaction and other costs |  | (6,561) |  |  | (2,002) |  |  | (10,948) |  |  | (3,581) |
General and administrative |  | (11,884) |  |  | (11,339) |  |  | (24,028) |  |  | (27,542) |
Equity-based compensation |  | (3,942) |  |  | (3,338) |  |  | (7,984) |  |  | (6,431) |
Depreciation and amortization |  | (41,512) |  |  | (45,636) |  |  | (83,124) |  |  | (101,970) |
Goodwill impairment |  | — |  |  | — |  |  | — |  |  | (7,134) |
Gain (loss) on dispositions of real estate investments |  | 23,250 |  |  | 1,537 |  |  | 31,129 |  |  | (141) |
Interest expense |  | (38,820) |  |  | (53,348) |  |  | (78,011) |  |  | (106,785) |
Loss on extinguishment of debt |  | (11,911) |  |  | (4,348) |  |  | (13,618) |  |  | (4,766) |
(Loss) gain on derivative instruments |  | (302) |  |  | (8,823) |  |  | 2,763 |  |  | (12,679) |
Unrealized gain (loss) on undesignated foreign currency advances and other hedge ineffectiveness |  | 1,816 |  |  | (6,324) |  |  | 1,816 |  |  | (12,675) |
Other income |  | 276 |  |  | 1,683 |  |  | 450 |  |  | 1,731 |
Net income (loss) before income tax |  | 5,790 |  |  | (28,863) |  |  | (929) |  |  | (120,751) |
Income tax expense |  | (4,775) |  |  | (2,995) |  |  | (6,417) |  |  | (6,275) |
Income (loss) from continuing operations |  | 1,015 |  |  | (31,858) |  |  | (7,346) |  |  | (127,026) |
Income (loss) from discontinued operations |  | 2,471 |  |  | 7,715 |  |  | 5,754 |  |  | (86,496) |
Net income (loss) |  | 3,486 |  |  | (24,143) |  |  | (1,592) |  |  | (213,522) |
Preferred stock dividends |  | (10,936) |  |  | (10,936) |  |  | (21,872) |  |  | (21,872) |
Net loss attributable to common stockholders |  | $ | (7,450) |  |  | $ | (35,079) |  |  | $ | (23,464) |  |  | $ | (235,394) |
The following table reconciles real estate investments, net by segment to consolidated total assets as of the periods presented:
(In thousands) |  | June 30, 2026 |  | December 31, 2025 (1)
Investments in real estate, net: |  |  |  |
Industrial & Distribution |  | $ | 1,713,035 |  |  | $ | 1,792,235 |
Retail |  | 1,099,954 |  |  | 1,142,964 |
Office |  | 796,188 |  |  | 875,425 |
Total investments in real estate, net |  | 3,609,177 |  |  | 3,810,624 |
Real estate assets held for sale |  | 33,834 |  |  | 49,654 |
Assets related to discontinued operations |  | — |  |  | 348 |
Cash and cash equivalents |  | 153,640 |  |  | 180,114 |
Restricted cash |  | 14,352 |  |  | 13,949 |
Derivative assets, at fair value |  | 978 |  |  | 7 |
Unbilled straight line rent |  | 71,952 |  |  | 72,919 |
Operating lease right-of-use asset |  | 60,958 |  |  | 63,362 |
Prepaid expenses and other assets |  | 53,636 |  |  | 60,415 |
Multi-tenant disposition receivable, net |  | 2,475 |  |  | 27,934 |
Deferred tax assets |  | 5,105 |  |  | 5,167 |
Goodwill |  | 45,516 |  |  | 45,898 |
Deferred financing costs, net |  | 14,465 |  |  | 16,812 |
Total assets |  | $ | 4,066,088 |  |  | $ | 4,347,203 |
_______ (1) Amounts reflect the presentation of the Multi-Tenant Retail Portfolio as a discontinued operation, which primarily consist of any remaining receivables (see Note 3 — Multi-Tenant Retail Disposition for additional information). 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 June 30, 2026. The following tables present the geographic information for Revenue from tenants and Investments in real estate:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2026 |  | 2025 |  | 2026 |  | 2025
Revenue from tenants: |  |  |  |  |  |  |  |
United States |  | $ | 82,293 |  |  | $ | 85,882 |  |  | $ | 162,322 |  |  | $ | 179,234 |
United Kingdom |  | 11,903 |  |  | 20,272 |  |  | 23,372 |  |  | 44,090 |
Europe |  | 17,485 |  |  | 17,964 |  |  | 34,469 |  |  | 32,451 |
Canada |  | 794 |  |  | 787 |  |  | 1,598 |  |  | 1,545 |
Total |  | $ | 112,475 |  |  | $ | 124,905 |  |  | $ | 221,761 |  |  | $ | 257,320 |
(In thousands) |  | June 30, 2026 |  | December 31, 2025
Investments in real estate, gross: |  |  |  |
United States |  | $ | 3,520,268 |  |  | $ | 3,629,799 |
United Kingdom |  | 537,123 |  |  | 554,792 |
Europe |  | 504,647 |  |  | 554,965 |
Canada |  | 36,360 |  |  | 38,050 |
Total |  | $ | 4,598,398 |  |  | $ | 4,777,606 |
Acquired Intangible Liabilities, Gross |  |  |  |
United States |  | $ | 23,930 |  |  | $ | 24,808 |
United Kingdom |  | 2,693 |  |  | 5,565 |
Europe |  | 5,886 |  |  | 6,200 |
Canada |  | — |  |  | 20 |
Total |  | $ | 32,509 |  |  | $ | 36,593 |

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