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REAL ESTATE INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2024

REAL ESTATE INVESTMENTS

Schedule of the Company's real estate acquisitions and allocations of the purchase price

The following tables detail the Company’s real estate asset acquisitions and purchase price allocations during 2024 and 2023 (amounts in thousands):


				Contract					Capitalized
				Purchase					Transaction
Description of Industrial Property		Date Acquired		Price			Terms of Payment		Costs
Quality Custom Distribution Services, Inc.
Albuquerque, New Mexico		April 24, 2024		$	6,450		All cash (a)		$	55
Russell Equipment, Inc.
Savannah, Georgia		May 23, 2024			5,240		All cash (b)			53
Multi-tenant
Council Bluffs, Iowa		August 19, 2024			33,000		Cash and $18,425 mortgage (c)			79
Totals for 2024				$	44,690				$	187

Multi-tenant
Blythewood, South Carolina		July 13, 2023		$	13,400		Cash and $4,280 mortgage (d)		$	109
Totals for 2023				$	13,400				$	109

(a)	Subsequent to the acquisition of this property, the Company obtained new mortgage debt of $3,401 bearing an interest rate of 6.00% and maturing in 2032.

(b)	Subsequent to the acquisition of this property, the Company obtained new mortgage debt of $2,812 bearing an interest rate of 6.00% and maturing in 2035.

(c)	Simultaneously with the acquisition of this property, the Company obtained new mortgage debt of $18,425 bearing an interest rate of 6.08% and maturing in 2034.

(d)	Simultaneously with the acquisition of this property, the Company assumed a mortgage of $4,280 bearing an interest rate of 4.60% and maturing in 2029.

Schedule of allocation of the purchase price for the company's acquisitions of real estate


					Building &			Intangible Lease						Mortgage
Description of Industrial Property		Land			Improvements			Asset (a)			Liability (b)			Intangible (c)			Total
Quality Custom Distribution Services, Inc.
Albuquerque, New Mexico		$	1,341		$	6,330		$	689		$	(1,855)		$	—		$	6,505
Russell Equipment, Inc.
Savannah, Georgia			1,044			3,724			525			—			—			5,293
Multi-tenant
Council Bluffs, Iowa			3,811			28,462			2,512			(1,706)			—			33,079
Totals for 2024		$	6,196		$	38,516		$	3,726		$	(3,561)		$	—		$	44,877

Multi-tenant
Blythewood, South Carolina		$	311		$	12,304		$	871		$	(237)		$	260		$	13,509
Totals for 2023		$	311		$	12,304		$	871		$	(237)		$	260		$	13,509

(a)	With respect to the intangible lease assets, the weighted average amortization period for the 2024 and 2023 acquisitions is 5.4 years and 1.1 years, respectively.

(b)	With respect to the intangible lease liabilities, the weighted average amortization period for the 2024 and 2023 acquisitions is 8.7 years and 1.1 years, respectively.

(c)	With respect to the mortgage intangible asset, the weighted average amortization period for the 2023 acquisition is 5.4 years.

Summary of market capitalization rate and discount rates associated with the assessment of the fair value of the related lease and mortgage intangibles for the Company's acquisition of real estate

The following table details the market capitalization and discount rates associated with the assessment of the fair value of the related lease and mortgage intangibles for the Company’s acquisitions of real estate:


						Discount Rate (a)
Year				Market Cap		Lease		Mortgage
Acquired		Description of Industrial Property		Rate (a)		Intangible		Intangible
2024		Quality Custom Distribution Services, Inc.
		Albuquerque, New Mexico		6.75%		7.14%		—
2024		Russell Equipment, Inc.
		Savannah, Georgia		7.00%		7.15%		—
2024		Multi-tenant
		Council Bluffs, Iowa		6.60%		7.41%		—
2023		Multi-tenant
		Blythewood, South Carolina		6.75%		6.75%		6.00%

(a)

The fair value of the tangible and intangible leases and mortgages were assessed as of the acquisition date using an income approach and estimated cash flow projections which utilize an appropriate market capitalization rate and discount rate which are categorized as Level 3 unobservable inputs in the fair value hierarchy (as defined in Note 2).

Summary of information regarding the acquired intangibles related to acquisitions of real estate

The following table details the accumulated amortization of acquired intangibles during the periods indicated (amounts in thousands):


			December 31, 2024									December 31, 2023
			Intangible									Intangible
			Lease Assets			Mortgage Asset			Lease Liabilities			Lease Assets			Mortgage Asset			Lease Liabilities
Accumulated amortization		$	17,090		$	263		$	2,787		$	19,377		$	126		$	5,191

The following table details the amortization of acquired intangibles and the classification in the Company’s consolidated statements of income for the periods indicated (amounts in thousands):


	Year Ended December 31,
	2024			2023			2022			Classification
Intangible lease assets/liabilities	$	1,210		$	952		$	831		Rental income, net
Tenant origination costs		3,980			4,821			4,722		Depreciation and amortization
Intangible mortgage assets		137			114			12		Interest expense

Schedule of future amortization of acquired intangibles

As of December 31, 2024, the future amortization of the Company’s acquired intangibles are as follows (amounts in thousands):


For the year ending December 31,		Intangible Lease Assets (a)			Tenant Origination Costs (b)			Intangible Mortgage Assets (c)			Intangible Lease Liabilities (d)
2025	$	91		$	3,352		$	137		$	1,033
2026		55			3,158			137			1,013
2027		5			2,490			137			1,065
2028		2			1,537			137			976
2029		2			1,039			111			859
Thereafter		5			1,913			8			6,806
Total	$	160		$	13,489		$	667		$	11,752

(a)	The result of acquired above-market leases and will be deducted from rental income through 2032.

(b)	The result of acquired in-place leases and will be charged to Depreciation and amortization expense through 2034.

(c)	The result of acquired below-market mortgages and will be charged to interest expense through 2030.

(d)	The result of acquired below-market leases and will be added to rental income through 2052.