Real Estate Investments and Related Intangibles (Tables)
|
3 Months Ended |
Mar. 31, 2026 |
|---|
| Real Estate [Abstract] |
|
| Schedule of Fair Values of the Assets Acquired and Liabilities Assumed |
The following table presents the allocation of the purchase consideration and capitalized transaction costs to the assets acquired and liabilities assumed based on their relative fair values during the three months ended March 31, 2026 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real estate investment, at cost: |
|
|
|
|
| Land |
|
$ |
2,724 |
|
|
|
| Building, fixtures and improvements |
|
5,041 |
|
|
|
| Total real estate investment, at cost |
|
7,765 |
|
|
|
| Acquired intangible assets: |
|
|
|
|
| Intangible lease asset |
|
6,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net assets acquired |
|
$ |
14,186 |
|
|
|
|
| Schedule of Intangible Lease Assets and Liabilities |
Intangible lease assets and liabilities consisted of the following as of the dates indicated below (in thousands, except weighted average useful life as of March 31, 2026):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Useful Life (Years) |
|
March 31, 2026 |
|
December 31, 2025 |
| Intangible lease assets: |
|
|
|
|
|
|
In-place leases, net of accumulated amortization of $157,459 and $152,989, respectively |
|
11.3 |
|
$ |
45,857 |
|
|
$ |
43,906 |
|
Leasing commissions, net of accumulated amortization of $8,300 and $7,522, respectively |
|
12.7 |
|
28,332 |
|
|
25,171 |
|
Above-market lease assets, net of accumulated amortization of $12,650 and $12,451, respectively |
|
12.4 |
|
995 |
|
|
1,194 |
|
Deferred lease incentives, net of accumulated amortization of $1,457 and $1,295, respectively |
|
12.7 |
|
6,507 |
|
|
5,676 |
|
| Total intangible lease assets, net |
|
|
|
$ |
81,691 |
|
|
$ |
75,947 |
|
|
|
|
|
|
|
|
| Intangible lease liabilities: |
|
|
|
|
|
|
Below-market leases, net of accumulated amortization of $20,721 and $20,211, respectively |
|
15.3 |
|
$ |
17,939 |
|
|
$ |
18,449 |
|
|
| Schedule of Future Amortization Expense of Intangible Lease Assets and Liabilities |
The following table provides the projected amortization expense and adjustments to rental revenue related to the intangible lease assets and liabilities for the next five years as of March 31, 2026 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remainder of 2026 |
|
2027 |
|
2028 |
|
2029 |
|
2030 |
|
2031 |
| In-place leases: |
|
|
|
|
|
|
|
|
|
|
|
|
| Total projected to be included in amortization expense |
|
$ |
10,900 |
|
|
$ |
8,403 |
|
|
$ |
6,110 |
|
|
$ |
3,390 |
|
|
$ |
2,969 |
|
|
$ |
2,595 |
|
| Leasing commissions: |
|
|
|
|
|
|
|
|
|
|
|
|
| Total projected to be included in amortization expense |
|
$ |
2,338 |
|
|
$ |
3,025 |
|
|
$ |
2,732 |
|
|
$ |
2,440 |
|
|
$ |
2,415 |
|
|
$ |
2,360 |
|
| Above-market lease assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Total projected to be deducted from rental revenue |
|
$ |
482 |
|
|
$ |
237 |
|
|
$ |
115 |
|
|
$ |
63 |
|
|
$ |
63 |
|
|
$ |
34 |
|
| Deferred lease incentives: |
|
|
|
|
|
|
|
|
|
|
|
|
| Total projected to be deducted from rental revenue |
|
$ |
399 |
|
|
$ |
532 |
|
|
$ |
518 |
|
|
$ |
508 |
|
|
$ |
505 |
|
|
$ |
503 |
|
| Below-market lease liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Total projected to be added to rental revenue |
|
$ |
1,418 |
|
|
$ |
1,766 |
|
|
$ |
1,682 |
|
|
$ |
1,500 |
|
|
$ |
1,425 |
|
|
$ |
1,135 |
|
|
| Schedule of Company's Investment in Joint Venture |
The following is a summary of the Company’s investment in the Unconsolidated Joint Venture, as of the dates and for the periods indicated below (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership % (1)
|
|
Number of Properties |
|
Carrying Value of
Investment |
|
Equity in Loss of Unconsolidated Joint Venture, Net |
|
|
|
|
|
Three Months Ended |
| Investment |
|
March 31, 2026 |
|
March 31, 2026 |
|
December 31, 2025 |
|
March 31, 2026 |
|
March 31, 2025 |
| Unconsolidated Joint Venture |
|
20% |
|
6 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(246) |
|
____________________________________
(1)The Company’s ownership interest reflects its legal ownership interest. The Company’s legal ownership interest may, at times, not equal the Company’s economic interest because of various provisions in the joint venture agreement regarding capital contributions, distributions of cash flow based on capital account balances and allocations of profits and losses. As a result, the Company’s actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with its legal ownership interest.
|