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SALES OF PROPERTIES AND IMPAIRMENT LOSS

6 Months Ended

Jun. 30, 2024

SALES OF PROPERTIES AND IMPAIRMENT LOSS

SALES OF PROPERTIES AND IMPAIRMENT LOSS

NOTE 5 – SALES OF PROPERTIES AND IMPAIRMENT LOSS

Sales of Properties

The following table details the Company’s sales of real estate during the six months ended June 30, 2024 and 2023 (amounts in thousands):


						Gross			Gain on Sale of
Description of Property		City, State		Date Sold		Sales Price			Real Estate, Net
Hacienda Colorado restaurant parcel (a)		Lakewood, Colorado		March 6, 2024		$	2,900		$	1,784	(a)
Applebee's restaurant property		Kennesaw, Georgia		May 6, 2024			2,834			964
FedEx industrial property		Miamisburg, Ohio		May 9, 2024			2,793			1,507
Havertys retail property		Wichita, Kansas		June 6, 2024			6,600			1,884
Urban Outfitters retail property		Lawrence, Kansas		June 7, 2024			1,300			43
Walgreens retail property (b)		Cape Girardeau, Missouri		June 10, 2024			2,793			978	(b)
Vacant retail property (c)		Kennesaw, Georgia		June 28, 2024			6,700			2,072
Totals for the six months ended June 30, 2024						$	25,920		$	9,232	(d)

						Gross			Gain on Sale of
Description of Property		City, State		Date Sold		Sales Price			Real Estate, Net
TGI Fridays restaurant property		Hauppauge, New York		February 28, 2023		$	4,200		$	1,534
Havertys retail property		Duluth, Georgia		May 31, 2023			6,000			3,180
Totals for the six months ended June 30, 2023						$	10,200		$	4,714	(e)

(a)

A consolidated joint venture, in which the Company holds a 90% interest, sold a restaurant parcel which was part of a multi-tenant shopping center. In connection with the sale of this parcel, the joint venture paid down $1,885 of the mortgage on this property. The non-controlling interest’s share of the gain was $178.

(b)	This property was owned by a consolidated joint venture in which the Company held a 95% interest. The non-controlling interest’s share of the gain was $105.

(c)	In connection with this sale, the Company paid off the $4,412 mortgage on this property.

(d)	As a result of these sales, the Company wrote-off, as a reduction to Gain on sale of real estate, net, an aggregate of $275 of unbilled rent receivables, $439 of net unamortized intangible lease assets and liabilities and $108 of other assets and receivables.

(e)	As a result of these sales, the Company wrote-off, as a reduction to Gain on sale of real estate, net, an aggregate of $190 of other assets and receivables and $32 of unearned rental income.

Sales Contracts subsequent to June 30, 2024

On July 1, 2024, the Company entered into a contract to sell its vacant industrial property in Wauconda, Illinois for $4,500,000. The sale is subject to the buyer’s right to terminate, which expires on August 7, 2024. The Company anticipates this property will be sold during the three months ending September 30, 2024.

Impairment Loss

On July 11, 2024, the Company entered into a contract to sell its health and fitness property in Hamilton, Ohio for $4,350,000. The sale is subject to the buyer’s right to terminate, which expires on August 10, 2024. This property was formerly tenanted by LA Fitness whose lease expired in May 2024. As a result of the contract, the Company re-measured the property’s net book value to its fair value (as discussed in Note 12) and recognized a $1,086,000 impairment loss on the consolidated statements of income for the three and six months ended June 30, 2024. The adjusted net book value of the property was $4,161,000 at June 30, 2024. The Company anticipates this property will be sold during the three months ending September 30, 2024.