The following table sets forth the components of our investments in real estate as of September 30, 2024 and December 31, 2023, respectively, excluding real estate held for sale (dollars in thousands):


	September 30, 2024		December 31, 2023
Real estate:
Land (1)	$	139,916	$	143,442
Building and improvements	1,019,056		1,020,661
Tenant improvements	55,316		57,261
Accumulated depreciation	(313,730)		(299,662)
Real estate, net	$	900,558	$	921,702

Real estate depreciation expense on building and tenant improvements was $9.8 million and $29.8 million for the three and nine months ended September 30, 2024, respectively. Real estate depreciation expense on building and tenant improvements was $8.9 million and $31.2 million for the three and nine months ended September 30, 2023, respectively.

We acquired six industrial properties during the nine months ended September 30, 2024, and acquired three industrial properties during the nine months ended September 30, 2023. The acquisitions are summarized below (dollars in thousands):


Nine Months Ended		Square Footage	Lease Term	Purchase Price		Capitalized Acquisition Expenses
September 30, 2024	(1)	192,227	21.0 years	$	22,122	$	435
September 30, 2023	(2)	183,803	18.7 years	$	17,539	$	349

(1)On May 7, 2024, we acquired a five-property, 142,125 square foot portfolio in Warfordsburg, Pennsylvania for $12.0 million. The property is fully leased to one tenant and had 25.1 years of remaining lease term at the time we acquired the property. On August 29, 2024, we acquired a 50,102 square foot property in Midland, Texas for $10.2 million. The property is fully leased to one tenant and had 15.0 years of remaining lease term at the time we acquired the property.

(2)On April 14, 2023, we acquired a 76,089 square foot property in Riverdale, Illinois for $5.4 million. The property is fully leased to one tenant and had 20.0 years of remaining lease term at the time we acquired the property. On July 10, 2023, we

acquired a 7,714 square foot property in Dallas-Fort Worth, Texas for $3.0 million. The property is fully leased to one tenant and had 9.9 years of remaining lease term at the time we acquired the property. On July 28, 2023, we acquired a 100,000 square foot property in Dallas-Fort Worth, Texas for $9.2 million. The property is fully leased to one tenant and had 20.0 years of remaining lease term at the time we acquired the property.

We determined the fair value of assets acquired and liabilities assumed related to the properties acquired during the nine months ended September 30, 2024 and 2023 as follows (dollars in thousands):


	Nine Months Ended September 30, 2024			Nine Months Ended September 30, 2023
Acquired assets and liabilities	Purchase price			Purchase price
Land	$	1,694		$	2,714
Building	15,665			11,423
Tenant Improvements	374			692
In-place Leases	1,616			1,001
Leasing Costs	2,265			1,270
Customer Relationships	418			439
Above Market Leases	90		(1)	—



Total Purchase Price	$	22,122		$	17,539

Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for the three months ending December 31, 2024 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):


Year	Tenant Lease Payments
Three Months Ending December 31, 2024	$	29,904
2025	120,765
2026	116,612
2027	102,150
2028	89,696
2029	81,671
Thereafter	387,395

In accordance with the lease terms, substantially all operating expenses are required to be paid by the tenant directly, or reimbursed to us from the tenant; however, we would be required to pay operating expenses on the respective properties in the event the tenants fail to pay them.

The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three and nine months ended September 30, 2024 and 2023, respectively (dollars in thousands):


	For the three months ended September 30,
Lease revenue reconciliation	2024		2023		$ Change		% Change
Fixed lease payments	$	34,663	$	31,945	$	2,718	8.5	%
Variable lease payments	4,572		4,519		53		1.2	%
	$	39,235	$	36,464	$	2,771	7.6	%


	For the nine months ended September 30,
Lease revenue reconciliation	2024		2023		$ Change		% Change
Fixed lease payments	$	99,536	$	98,465	$	1,071	1.1	%
Variable lease payments	12,477		13,210		(733)		(5.5)	%
	$	112,013	$	111,675	$	338	0.3	%

The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of September 30, 2024 and December 31, 2023, respectively, excluding real estate held for sale (dollars in thousands):


	September 30, 2024				December 31, 2023
	Lease Intangibles		Accumulated Amortization		Lease Intangibles		Accumulated Amortization
In-place leases	$	96,824	$	(64,278)	$	98,615	$	(63,269)
Leasing costs	89,565		(48,303)		84,844		(46,096)
Customer relationships	60,884		(36,890)		63,185		(36,231)
	$	247,273	$	(149,471)	$	246,644	$	(145,596)

	Deferred Rent Receivable/(Liability)		Accumulated (Amortization)/Accretion		Deferred Rent Receivable/(Liability)		Accumulated (Amortization)/Accretion
Above market leases	$	12,747	$	(10,488)	$	13,431	$	(10,675)
Below market leases and deferred revenue	(56,616)		33,017		(59,411)		30,087

Total amortization expense related to in-place leases, leasing costs and customer relationship lease intangible assets was $3.6 million and $12.9 million for the three and nine months ended September 30, 2024, respectively, and $3.6 million and $12.9 million for the three and nine months ended September 30, 2023, respectively, and is included in depreciation and amortization expense in the condensed consolidated statements of operations and comprehensive income.

Total amortization related to above-market lease values was $0.1 million and $0.4 million for the three and nine months ended September 30, 2024, respectively, and $0.1 million and $0.4 million for the three and nine months ended September 30, 2023, respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income. Total amortization related to below-market lease values was $1.7 million and $5.5 million for the three and nine months ended September 30, 2024, respectively, and $1.8 million and $6.2 million for the three and nine months ended September 30, 2023, respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income.

The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the nine months ended September 30, 2024 and 2023, were as follows:


Intangible Assets & Liabilities	September 30, 2024	September 30, 2023
In-place leases	21.3	18.0
Leasing costs	21.3	18.0
Customer relationships	25.1	22.7
Above market leases	25.1	0.0

All intangible assets & liabilities	22.2	19.6