The Company acquires, owns, and manages primarily single-tenant, investment-grade net-leased real estate. The Company owned 364 properties in 34 states as of March 31, 2025. As of March 31, 2025, the Company’s portfolio was 98.9% leased and is occupied by 39 different primarily national investment-grade necessity-based retail tenants, and is additionally diversified by industry, geographic region, and lease term.

Real estate activity for the three months ended March 31, 2025 is composed of the following:


	Three months ended March 31, 2025
Balance - beginning of year	$	1,194,937,000
Acquisitions (a)		6,969,000
Improvements		61,000
Balance - end of period	$	1,201,967,000

Accumulated depreciation
Balance - beginning of year	$	(89,628,000	)
Depreciation expense		(7,714,000	)
Balance - end of period	$	(97,342,000	)

Net book value - end of period	$	1,104,625,000

(a) Excludes amounts recorded as intangible lease assets and liabilities in connection with the allocation of the purchase price of acquired properties accounted for as asset acquisitions.

On March 18, 2025, the Company acquired a property for cash from an unaffiliated entity for a total purchase price, including acquisitions costs, of $2.6 million. Additionally, on March 26, 2025, the Company acquired a property for cash from an unaffiliated entity for a total purchase price, including acquisitions costs, of $4.8 million. Per the asset management agreement,

the Company paid a 1.0% acquisition fee on these property acquisitions totaling $0.1 million to ExchangeRight at the time of the acquisition (see Note 10. Related and Affiliated Party Transactions for further details).

An allocation of the purchase price, including acquisition costs, for these acquisitions are as follows:


Land	$	763,000
Building		5,338,000
Building and site improvements		868,000
Lease in-place intangible assets		696,000
Lease above-market intangible assets		34,000
		7,699,000
Liabilities assumed:
Lease below-market intangible liabilities		(317,000	)
Purchase price (including acquisition costs)	$	7,382,000

Substantially all of the Company’s tenants are subject to net-lease agreements where the tenant is generally responsible for minimum monthly rent and actual property operating expenses incurred, including property taxes, insurance, and maintenance. In addition, certain of the Company’s tenants are subject to future rent increases based on fixed amounts or, in limited cases, increases in the consumer price index. In addition, certain leases provide for additional rent calculated as a percentage of the tenants’ gross sales above a specified level. The Company recorded no percentage rent revenue for the three months ended March 31, 2025 and 2024. Certain of the Company’s properties are subject to leases under which it retains responsibility for specific costs and expenses of the property. The Company’s leases typically provide the tenant one or more multi-year renewal options to extend their leases, subject to generally the same terms and conditions, including rent increases.

All lease-related income is reported as a single line item, rental revenue, in the condensed consolidated statements of operations and comprehensive (loss). Rental revenue is comprised of the following:


	Three months ended March 31,
	2025		2024
Base rents	$	18,524,000	$	17,021,000
Tenant reimbursables		2,600,000		2,606,000
Straight-line rent adjustments		234,000		218,000
Above/below market lease amortization, net		610,000		624,000
	$	21,968,000	$	20,469,000

As of March 31, 2025, the Company’s portfolio is occupied by 39 different primarily national investment-grade necessity-based retail tenants, and is additionally diversified by industry, geographic region, and lease term. The following tenants contributed more than 10% of contractual base rents during the three months ended March 31, 2025:



Tenant		% of total base rents
Walgreens		18.0%
Dollar General		16.0%