Real Estate Transactions

12 Months Ended

Dec. 31, 2025

Acquisitions

The Company made no acquisitions for the year ended December 31, 2025, and one acquisition for the year ended December 31, 2024. The following table summarizes the Company's real estate acquisition activity for the year ended December 31, 2024, which was accounted for as asset acquisitions (dollars in thousands).


	2024
Number of properties acquired1	1
Contract price	$	29,666
Total price of acquisitions2	$	29,826
1 The 2024 acquisition was structured as a partial like-kind exchange in accordance with Code §1031.
3 Total price of acquisition includes transaction costs and closing costs and credits.

The aggregate purchase price of the assets acquired during the year ended December 31, 2024, was allocated as follows (in thousands):


Fair value of assets acquired	2024
Assets acquired:
Land	$	8,723
Property and improvements	20,978
In-place leases	1,051

Total assets acquired	$	30,752

Liabilities assumed:
Unfavorable leases	$	926

Total liabilities assumed	$	926
Net assets acquired	$	29,826

As of the acquisition date, the weighted-average amortization periods of in-place leases was approximately 12.8 years for assets acquired during the year ended December 31, 2024.

Dispositions

There were no dispositions for the year ended December 31, 2025. There was one disposition for the year ended December 31, 2024, related to a retail property within the Commercial Real Estate segment. The following table summarizes the real estate disposition activity for the year ended December 31, 2024 (dollars in thousands).


	2024
Number of properties disposed	1
Contract Price	$	14,250
Gain/(loss) on disposal1	$	51
1 As of December 31, 2023, this property met the criteria for classification as held for sale and accordingly, was measured at its fair value less costs to sell, resulting in an impairment charge of $2.2 million for the year ended December 31, 2023. The Company recognized a gain on disposal of $0.1 million when the property was sold during the year ended December 31, 2024.

In September 2025, a tenant ("Buyer") exercised its purchase option for subdivided units of Kaka'ako Commerce Center, a six-story industrial property within the Commercial Real Estate segment. In conjunction with the transaction, the Company subdivided the building into six units, with each of the six floors representing a separate unit. The transaction is structured to qualify as a like-kind exchange under section §1031 of the Internal Revenue Code and is expected to close in the first quarter of 2026.

At the time of exercise, the Buyer was leasing two of the three subdivided units it committed to purchase. Upon the Buyer's exercise of the purchase option, the lease for the two subdivided units was modified and classified as a sales-type lease. Accordingly, $10.3 million of real estate property, net and $1.2 million of real estate intangible assets, net were derecognized and the present value of the future lease payments and the initial unguaranteed residual value of $14.1 million was established as Investments in sales-type leases, net in the Company's consolidated balance sheets. Additionally, the Company recognized $2.6 million in selling profit from sales-type leases within Gain (loss) on commercial real estate transactions in the Company's consolidated statements of operations during the twelve months ended December 31, 2025. Refer to Note 12 – Leases - The Company as a Lessor for additional discussion of the components of the Company's investments in sales-type leases.

The Buyer's exercise of the purchase option for the one subdivided unit not leased by the Buyer at the time of exercise, met the criteria for classification as held for sale and accordingly, was measured at its fair value less costs to sell. The fair value was in excess of the carrying value and accordingly, no fair value adjustment related to assets and liabilities held for sale was required. Refer to Note 7 – Fair Value Measurements for additional discussion of the Company's classification of the fair value measurement in the fair value hierarchy and inputs used in determining the fair value. Refer to Note 21 – Held for Sale and Discontinued Operations for additional discussion of the information related to the major classes of assets and liabilities that were classified as held for sale as of the balance sheet date.

Intangible assets, net

Real estate intangible assets, net and other intangible assets included in Prepaid expenses and other assets as of December 31, 2025 and 2024, were as follows (in thousands):


	2025		2024
In-place leases	$	72,064	$	73,624
Favorable leases	14,314		14,363
Accumulated amortization of in-place leases	(50,493)		(47,544)
Accumulated amortization of favorable leases	(10,201)		(9,267)
Real estate intangible assets, net	$	25,684	$	31,176

Other intangible assets	$	594	$	594
Accumulated amortization of other intangible assets	(594)		(594)
Other intangible assets, net	$	—	$	—

Total intangible asset amortization expense was $5.5 million, $5.8 million, and $7.1 million for the years ended December 31, 2025, 2024, and 2023, respectively. Estimated amortization expenses related to intangible assets over the next five years are as follows (in thousands):


	Estimated Amortization
2026	$	3,697
2027	3,506
2028	2,782
2029	2,486
2030	2,448