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.

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).

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.

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 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.

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.


	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).