XML 61 R24.htm IDEA: XBRL DOCUMENT v3.25.0.1
Real Estate and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2024
Real Estate [Abstract]  
Schedule of Components of Investments in Real Estate
The following table sets forth the components of our investments in real estate as of December 31, 2024 and 2023, respectively, excluding real estate held for sale as of December 31, 2024 (dollars in thousands):
December 31, 2024December 31, 2023
Real estate:
Land (1)$139,743 $143,442 
Building and improvements1,017,534 1,020,661 
Tenant improvements54,516 57,261 
Accumulated depreciation(319,646)(299,662)
Real estate, net$892,147 $921,702 
(1)This amount includes $2,711 of land value subject to land lease agreements which we may purchase at our option for a nominal fee.
Schedule of Properties Acquired
During the years ended December 31, 2024 and 2023, we acquired seven and five properties, respectively, which are summarized below (dollars in thousands):

Year EndedAggregate Square Footage Weighted Average Lease TermAggregate Purchase PriceAggregate Capitalized Acquisition Costs
December 31, 2024(1)316,727 20.8 years$27,357 $570 
December 31, 2023(2)321,432 19.3 years$30,018 $528 
(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. On November 15, 2024, we acquired a 124,500 square foot property in St. Clair, Missouri for $5.2 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.
(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. On October 12, 2023, we acquired a 69,920 square foot property in Allentown, Pennsylvania for $7.9 million. The property is fully leased to one tenant and had 20.1 years of remaining lease term at the time we acquired the property. On November 3, 2023, we acquired a 67,709 square foot property in Indianapolis, Indiana for $4.6 million. The property is fully leased to one tenant and had 20.1 years of remaining lease term at the time we acquired the property.
Schedule of Fair Value of Acquired Assets and Liabilities Assumed
We determined the fair value of assets acquired and liabilities assumed related to the properties acquired during the years ended December 31, 2024 and 2023, respectively, as follows (dollars in thousands):

Year ended December 31, 2024
Year ended December 31, 2023
Acquired assets and liabilitiesPurchase pricePurchase price
Land$2,862 $4,629 
Building18,919 19,726 
Tenant Improvements613 997 
In-place Leases1,921 1,642 
Leasing Costs2,580 2,733 
Customer Relationships527 684 
Above Market Leases90 (1)— 
Below Market Leases(155)(2)(393)(2)
Total Purchase Price$27,357 $30,018 
(1)This amount includes $90 of loans receivable included in Other assets on the consolidated balance sheets.
(2)This amount includes $155 and $393 of prepaid rent included in Other liabilities on the consolidated balance sheets, respectively.
Schedule of Future Operating Lease Payments from Tenants under Non-Cancelable Leases
Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):

YearTenant Lease Payments
2025$121,496 
2026117,748 
2027103,289 
202890,869 
202982,912 
Thereafter400,392 
$916,706 
Schedule of Future Sales-Type Lease Payments from Tenants under Non-Cancelable Leases
Future sales-types lease payments from tenants under non-cancelable leases and reasonably certain purchase options, for each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):

YearTenant Lease Payments
2025$19,722 
2026— 
2027— 
2028— 
2029— 
Thereafter— 
$19,722 
Difference between undiscounted cash flow and present value1,086 
Sales-type lease receivable$18,636 
Schedule of Lease Revenue Reconciliation
The table below sets forth the allocation of lease revenue between fixed contractual lease payments and variable lease payments for the years ended December 31, 2024, 2023, and 2022, respectively (dollars in thousands):

For the year ended December 31,
Lease revenue reconciliation202420232022
Fixed lease payments$132,272 $130,551 $132,032 
Variable lease payments17,116 17,033 16,949 
$149,388 $147,584 $148,981 
Schedule of Carrying Value of Intangible Assets, Liabilities and Accumulated Amortization
The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of December 31, 2024 and 2023, excluding real estate held for sale as of December 31, 2024 (dollars in thousands):

December 31, 2024December 31, 2023
Lease Intangibles Accumulated Amortization Lease IntangiblesAccumulated Amortization
In-place leases$96,392 $(64,830)$98,615 $(63,269)
Leasing costs89,093 (48,963)84,844 (46,096)
Customer relationships60,377 (36,962)63,185 (36,231)
$245,862 $(150,755)$246,644 $(145,596)
Deferred Rent Receivable/(Liability)Accumulated (Amortization)/Accretion Deferred Rent Receivable/(Liability)Accumulated (Amortization)/Accretion
Above market leases$13,718 $(11,582)$13,431 $(10,675)
Below market leases and deferred revenue(56,616)34,620 (59,411)30,087 
Schedule of Weighted Average Amortization Period for Intangible Assets Acquired and Liabilities Assumed
The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the years ended December 31, 2024 and 2023, respectively, were as follows:

Intangible Assets & Liabilities20242023
In-place leases20.918.9
Leasing costs20.918.9
Customer relationships26.926.3
Above market leases25.10.0
Below market leases20.120.1
All intangible assets & liabilities22.321.1
Schedule of Estimated Aggregate Amortization Expense
The estimated aggregate amortization expense to be recorded for in-place leases, leasing costs and customer relationships for each of the five succeeding fiscal years and thereafter is as follows, excluding real estate held for sale as of December 31, 2024 (dollars in thousands):
YearEstimated Amortization Expense
of In-Place Leases, Leasing
Costs and Customer
Relationships
2025$15,229 
202613,546 
202711,896 
20289,744 
20298,976 
Thereafter35,716 
$95,107 
Schedule of Estimated Aggregate Rental Income
The estimated aggregate rental income to be recorded for the amortization of both above and below market leases for each of the five succeeding fiscal years and thereafter is as follows, excluding real estate held for sale as of December 31, 2024 (dollars in thousands):

YearNet Increase to Rental Income
Related to Above and Below
Market Leases (1)
2025$5,862 
20263,771 
20272,479 
20282,468 
20292,420 
Thereafter2,761 
$19,761 
(1)Does not include ground lease amortization of $99.