The Company acquires, owns, and manages net-leased properties with frontage. The leases are generally net leases, where the tenants are generally responsible for the payment of real estate taxes, insurance premiums and maintenance costs related to the leased property. The leases have been classified as operating leases and generally provide for limited increases in rent as a result of fixed increases, increases in CPI, or increases in tenant’s sales volume.

As of September 30, 2025 and December 31, 2024, the Company had a portfolio of 307 real estate properties. The average remaining lease term, excluding renewal options, for real estate properties owned by the Company as of September 30, 2025 and December 31, 2024 was approximately 7.2 years and 7.4 years, respectively.

During the nine months ended September 30, 2025, the Company acquired 25 properties for an aggregate purchase price (including acquisition costs) of $83.8 million. All of the properties acquired during the nine months ended September 30, 2025, were leased at acquisition with an average remaining lease term of approximately 11.6 years.

During the year ended December 31, 2024, the Company acquired 29 properties for an aggregate purchase price of $104.2 million. The majority of properties acquired during the year ended December 31, 2024, were leased at acquisition with an average remaining lease term of approximately 11.3 years.

The acquisitions were all accounted for as asset acquisitions. The Company allocated the purchase price of these properties to the fair values of the assets and liabilities assumed, which is summarized in the following table:


(in thousands)	September 30, 2025			December 31, 2024
Land	$	20,512		$	28,597
Buildings		49,653			51,138
Site improvements		4,480			8,423
Other assets		122			340
Intangible assets:
Above-market leases		2,241			7,311
In-place leases and origination costs		9,422			10,846
		86,430			106,655
Liabilities assumed:
Below-market leases intangible liabilities		(2,488	)		(1,649	)
Accounts payable and accrued liabilities		(145	)		(822	)
Purchase price (including acquisition costs)	$	83,797		$	104,184

During the nine months ended September 30, 2025, the Company sold 25 real estate properties for $57.6 million. The Company received net proceeds of $54.5 million from the property sales, including $8.1 million of mortgage loans receivable, after paying closing costs of $3.1 million and recorded a gain on sale of $4.3 million. The aggregate cost and associated accumulated depreciation and amortization of the properties sold, at the date of sale, was $58.1 million and $8.0 million, respectively.

During the nine months ended September 30, 2025, the Company received proceeds for the expropriation from the state for a portion of real estate from two properties for $5.4 million. The Company received net proceeds of $5.0 million from the expropriation from the state, after paying closing costs of $0.4 million and recorded a gain on sale of $4.7 million. The aggregate cost of the portion of the properties that was expropriated was $0.2 million.

During the nine months ended September 30, 2025, the Company sold a partial interest in one real estate property for $2.8 million. The company received net proceeds of $2.6 million from the sale, including $2.2 million of mortgage loan receivable, after paying closing costs of $0.2 million and recorded a gain on sale of $0.2 million. The aggregate cost of the partial interest, at the date of the sale was $2.5 million.

During the year ended December 31, 2024, the Company sold five real estate properties for $11.0 million. The Company received net proceeds of $10.1 million after paying closing costs of $0.9 million and recorded a gain on sale of $0.3 million. The aggregate cost and associated accumulated depreciation and amortization of the properties sold, at the date of sales, were $10.2 million and $0.7 million, respectively.

The depreciation expense on real estate held for investment was as follows:


	Successor		Predecessor		Successor		Predecessor
	For the three months ended September 30,				For the nine months ended September 30,
(in thousands)	2025		2024		2025		2024
Depreciation	$	3,607	$	2,923	$	10,957	$	8,783

The following table summarizes amounts reported as rental revenues on the accompanying condensed consolidated statements of operations and comprehensive income (loss):


	Successor			Predecessor			Successor			Predecessor
	For the three months ended September 30,						For the nine months ended September 30,
(in thousands)	2025			2024			2025			2024
Rental revenues:
Contractual rental amounts billed	$	15,325		$	12,678		$	45,863		$	38,569
Recovery income		1,804			1,293			5,904			4,418
Adjustment to recognize contractual rental amounts on a straight-line basis		52			187			460			964
Variable rental amounts earned		73			798			283			1,547
Above/below market lease amortization, net		(652	)		(423	)		(2,304	)		(1,338	)
Total rental revenues	$	16,602		$	14,533		$	50,206		$	44,160

Total estimated future minimum rents to be received under non-cancelable leases in effect as of September 30, 2025, are as follows:


(in thousands)	September 30, 2025
Remainder of 2025	$	14,943
2026		59,399
2027		55,616
2028		50,392
2029		46,619
2030		41,575
Thereafter		235,444
	$	503,988

Since lease renewal periods are exercisable at the option of the tenant, the above amounts only include future lease payments due during the initial lease terms. Such amounts exclude any potential variable rent increases that are based on changes in the CPI or future variable rents which may be received under the leases based on a percentage of the tenant’s gross sales.