Quarterly report [Sections 13 or 15(d)]

Receivables and Other Assets

v3.26.1
Receivables and Other Assets
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Receivables and Other Assets
Note 4 – Receivables and Other Assets
Accounts receivable, net consisted of the following as of the dates indicated below (in thousands):
March 31, 2026 December 31, 2025
Accounts receivable, net (1)
$ 13,776  $ 4,899 
Straight-line rent receivable, net 33,868  30,434 
Total $ 47,644  $ 35,333 
The change in accounts receivable, net as of March 31, 2026 compared to December 31, 2025 includes $4.8 million of reimbursement revenue in connection with landlord work performed at the Company’s Lincoln, Nebraska property and $1.9 million of reimbursement revenue for certain end of lease obligations from the tenant at the Company’s East Syracuse, New York property, each recognized during the three months ended March 31, 2026.
Other assets, net consisted of the following as of the dates indicated below (in thousands):
March 31, 2026 December 31, 2025
Right-of-use assets, net (1)
 $ 23,667  $ 21,260 
Deferred costs, net (2)
3,824  1,158 
Prepaid expenses 3,656  2,130 
Other assets, net 1,798  2,038 
Notes receivable (3)
—  678 
Restricted escrow deposits —  350 
Total $ 32,945  $ 27,614 
Includes right-of-use finance leases of $5.6 million, right-of-use operating leases of $11.9 million and a below-market right-of-use asset, net of $6.2 million as of March 31, 2026. Includes right-of-use finance leases of $5.6 million, right-of-use operating leases of $9.4 million and a below-market right-of-use asset, net of $6.3 million as of December 31, 2025. Amortization expense for below market right-of-use asset was less than $0.1 million for the three months ended March 31, 2026 and 2025. During the three months ended March 31, 2026, the Company recognized a $2.7 million operating lease right-of-use asset in connection with the relocation of its Phoenix corporate office following the scheduled expiration of the previous Phoenix corporate office sub-lease in February 2026.
(2)Includes accumulated amortization for deferred costs related to the New Revolving Facility, as defined in Note 6 – Debt, Net, of $0.2 million as of March 31, 2026, and related to the Original Revolving Facility, as defined in Note 6 – Debt, Net, of $10.0 million as of December 31, 2025. Amortization expense for deferred costs related to the Original and New Revolving Facilities was $0.6 million and $0.7 million for the three months ended March 31, 2026 and 2025, respectively. During the three months ended March 31, 2026, the Company capitalized additional deferred costs of $3.5 million in connection with the New Revolving Facility and wrote-off net deferred costs of $0.2 million to loss on extinguishment of debt, net in the consolidated statements of operations in connection with the refinancing of the Original Revolving Facility with the New Revolving Facility and resulting net reduction in total borrowing capacity.
(3)Notes receivable includes a Member Loan, net of reserves, discussed in Note 3 – Real Estate Investments and Related Intangibles – Investment in Unconsolidated Joint Venture. The gross balance receivable on the Member Loan was $5.5 million and $6.6 million as of March 31, 2026 and December 31, 2025, respectively. See Note 3 – Real Estate Investments and Related Intangibles - Investment in Unconsolidated Joint Venture for discussion regarding the loan loss reserve recorded against the Member Loan. During the three months ended March 31, 2026, the Company received $1.1 million of repayments on the Member Loan, of which $0.4 million was previously reserved and is recognized in recovery of reserve on Member Loan in the accompanying consolidated statements of operations during the three months ended March 31, 2026.