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Land, Buildings and Improvements, Finance Receivables and Assets Held for Sale | 6 Months Ended
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Jun. 30, 2025
Real Estate [Abstract] |
Land, Buildings and Improvements, Finance Receivables and Assets Held for Sale | Land, Buildings and Improvements, Finance Receivables and Assets Held for Sale Land, Buildings and Improvements Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands):
| June 30, 2025 |  | December 31, 2024
Land | $ | 71,078 |  |  | $ | 94,123 |
Buildings and improvements | 509,582 |  |  | 635,775 |
Real estate under construction | 1,253 |  |  | 447 |
Less: Accumulated depreciation | (142,876) |  |  | (152,067) |
| $ | 439,037 |  |  | $ | 578,278 |
During the six months ended June 30, 2025, we recognized impairment charges on three properties, which reduced the carrying value of Land, buildings and improvements by $82.7 million (Note 6). During the six months ended June 30, 2025, the U.S. dollar weakened against the Norwegian krone. As a result of this fluctuation in foreign currency exchange rates, the carrying value of our Land, buildings and improvements increased by $3.2 million from December 31, 2024 to June 30, 2025. Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements subject to operating leases was $4.3 million and $6.1 million for the three months ended June 30, 2025 and 2024, respectively, and $8.6 million and $13.3 million for the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025, we capitalized accrued costs of $0.9 million within Land, buildings and improvements for capital expenditures. Dispositions of Properties During the six months ended June 30, 2025, we disposed of three properties, which were classified as Land, buildings and improvements. As a result, the carrying value of our Land, buildings and improvements decreased by $24.8 million from December 31, 2024 to June 30, 2025 (Note 12). Real Estate Under Construction During the six months ended June 30, 2025, we capitalized $0.8 million of real estate under construction related to a capital project at a property. Leases Operating Lease Income Lease income related to operating leases recognized and included in the consolidated statements of operations is as follows (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Lease income — fixed | $ | 20,052 |  |  | $ | 27,182 |  |  | $ | 40,559 |  |  | $ | 58,544 |
Lease income — variable (a) | 7,456 |  |  | 7,967 |  |  | 14,341 |  |  | 14,919 |
Total operating lease income | $ | 27,508 |  |  | $ | 35,149 |  |  | $ | 54,900 |  |  | $ | 73,463 |
__________ (a)Includes (i) rent increases based on changes in the U.S. Consumer Price Index (CPI) and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services. Other Lease-Related Income Other lease-related income on our consolidated statements of operations included lease termination income of $0.9 million and $3.1 million for the three months ended June 30, 2025 and 2024, respectively, and $1.7 million and $7.8 million for the six months ended June 30, 2025 and 2024, respectively. In addition, other lease-related income on our consolidated statements of operations included income from a parking garage attached to one of our net-leased properties totaling $0.5 million for both three months ended June 30, 2025 and 2024, and $1.0 million for both the six months ended June 30, 2025 and 2024. Finance Receivables During the first quarter of 2024, we sold a property classified as net investments in sales-type leases. Earnings from our net investments in sales-type leases were included in Income from finance leases in the consolidated financial statements, and totaled less than $0.1 million for the six months ended June 30, 2024. We had no net investments in finance leases as of June 30, 2025 and December 31, 2024. Assets and Liabilities Held for Sale Below is a summary of our properties held for sale (in thousands):
| June 30, 2025 |  | December 31, 2024
Land, buildings and improvements | $ | 63,501 |  |  | $ | 31,066 |
In-place lease intangible assets and other | 20,933 |  |  | 3,891 |
Above-market rent intangible assets | 2,323 |  |  | 1,382 |
Accumulated depreciation and amortization | (24,889) |  |  | (7,042) |
Assets held for sale, net | $ | 61,868 |  |  | $ | 29,297 |
Below-market rent intangible liabilities, net (a) | $ | 1,351 |  |  | $ | — |
__________ (a)Included within Accounts payable, accrued expenses and other liabilities on our consolidated balance sheets. As of June 30, 2025 and December 31, 2024, we had three and one properties, respectively, classified as held for sale. The estimated purchase price for one of these properties was lowered during the second quarter of 2025. As a result, we recognized a loss on sale of real estate of $3.4 million during the three and six months ended June 30, 2025, reflecting the updated estimated purchase price, in accordance with ASC 360, Property, Plant, and Equipment. One of these properties was sold in July 2025 (Note 1 3).

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 974 -SubTopic 720 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477728/974-720-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 976 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/976/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 978 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/978/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 970 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/970/tableOfContent Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 972 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/972/tableOfContent Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 974 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/974/tableOfContent + Details
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