XML 25 R15.htm IDEA: XBRL DOCUMENT

Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale

3 Months Ended

Mar. 31, 2025

Real Estate [Abstract]

Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale

Note 5—Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale

The Company’s real estate assets consist of the following ($ in thousands):


		As of
		March 31, 2025			December 31, 2024
Land and land improvements, at cost		$	547,739		$	547,739
Buildings and improvements, at cost			193,232			193,232
Less: accumulated depreciation			(47,935)			(46,428)
Total real estate, net		$	693,036		$	694,543
Real estate-related intangible assets, net			207,350			208,731
Real estate available and held for sale			5,894			7,233
Total real estate, net and real estate-related intangible assets, net and real estate available and held for sale		$	906,280		$	910,507

Real estate-related intangible assets, net consist of the following items ($ in thousands):


		As of March 31, 2025
		Gross			Accumulated			Carrying
		Intangible			Amortization			Value
Above-market lease assets, net⁽¹⁾		$	186,002		$	(22,307)		$	163,695
In-place lease assets, net⁽²⁾			69,631			(26,672)			42,959
Other intangible assets, net			750			(54)			696
Total		$	256,383		$	(49,033)		$	207,350


		As of December 31, 2024
		Gross			Accumulated			Carrying
		Intangible			Amortization			Value
Above-market lease assets, net⁽¹⁾		$	186,002		$	(21,524)		$	164,478
In-place lease assets, net⁽²⁾			69,631			(26,076)			43,555
Other intangible assets, net			750			(52)			698
Total		$	256,383		$	(47,652)		$	208,731

(1)

Above-market lease assets are recognized during asset acquisitions when the present value of market rate rental cash flows over the term of a lease is less than the present value of the contractual in-place rental cash flows. Above-market lease assets are amortized over the non-cancelable term of the leases.

(2)

In-place lease assets are recognized during asset acquisitions and are estimated based on the value associated with the costs avoided in originating leases comparable to the acquired in-place leases as well as the value associated with lost rental revenue during the assumed lease-up period. In-place lease assets are amortized over the non-cancelable term of the leases.

The amortization of real estate-related intangible assets had the following impact on the Company’s consolidated statements of operations for the three months ended March 31, 2025 and 2024 ($ in thousands):


		Income Statement		For the Three Months Ended March 31,
Intangible asset		Location		2025			2024
Above-market lease assets (decrease to income)		Operating lease income		$	784		$	784
In-place lease assets (decrease to income)		Depreciation and amortization			595			876
Other intangible assets (decrease to income)		Operating lease income			2			2

The estimated amortization of real estate-related intangible assets for each of the five succeeding fiscal years is as follows ($ in thousands):⁽¹⁾


Year		Amount
2025 (remaining nine months)		$	4,143
2026			3,529
2027			3,529
2028			3,522
2029			3,522

(1)	As of March 31, 2025, the weighted average amortization period for the Company’s real estate-related intangible assets was approximately 81.4 years.

Real estate-related intangible liabilities, net consist of the following items ($ in thousands):


		As of March 31, 2025
		Gross			Accumulated			Carrying
		Intangible			Amortization			Value
Below-market lease liabilities⁽¹⁾		$	68,618		$	(5,904)		$	62,714


		As of December 31, 2024
		Gross			Accumulated			Carrying
		Intangible			Amortization			Value
Below-market lease liabilities⁽¹⁾		$	68,618		$	(5,696)		$	62,922

(1)

Below-market lease liabilities are recognized during asset acquisitions when the present value of market rate rental cash flows over the term of a lease exceeds the present value of the contractual in-place rental cash flows. Below-market lease liabilities are amortized over the non-cancelable term of the leases.

The amortization of real estate-related intangible liabilities had the following impact on the Company’s consolidated statements of operations for the three months ended March 31, 2025 and 2024 ($ in thousands):


		Income Statement		For the Three Months Ended March 31,
Intangible liability		Location		2025			2024
Below-market lease liabilities (increase to income)		Operating lease income		$	208		$	208

Future Minimum Operating Lease Payments—Future minimum lease payments to be collected under non-cancelable operating leases, excluding lease payments that are not fixed and determinable, in effect as of March 31, 2025, are as follows by year ($ in thousands):


					Fixed Bumps									Fixed
					with									Bumps with
		Inflation-			Inflation			Fixed			Percentage			Percentage
Year		Linked			Adjustments			Bumps			Rent⁽¹⁾			Rent			Total
2025 (remaining nine months)		$	4,355		$	13,603		$	1,738		$	9,135		$	316		$	29,147
2026			5,807			18,469			2,357			7,399			421			34,453
2027			5,807			18,856			2,388			7,399			421			34,871
2028			5,807			19,203			2,421			7,399			304			35,134
2029			5,807			19,558			2,453			7,399			—			35,217
Thereafter			423,318			4,287,241			428,235			28,105			—			5,166,899

(1)	During the three months ended March 31, 2025 and 2024, the Company recognized $4.9 million and $4.6 million, respectively, of percentage rent in “Operating lease income” in the Company’s consolidated statements of operations.