v3.25.2
Investments
 6 Months Ended
Jun. 30, 2025
Investments [Abstract]  
Investments Investments
The following table presents information about the number of investments in the Company’s real estate investment portfolio as of each date presented:
June 30, 2025December 31, 2024
Owned properties (1)
2,0321,946
Properties securing investments in mortgage loans (2)
148150
Ground lease interests108
Total number of investments2,1902,104
_____________________________________
(1)Includes seven properties which are subject to leases accounted for as direct financing leases or loans as of June 30, 2025 and December 31, 2024.
(2)Properties secure 26 and 25 mortgage loans receivable as of June 30, 2025 and December 31, 2024, respectively.
The following table presents information about the gross investment value of the Company’s real estate investment portfolio as of each date presented:
(in thousands)June 30, 2025December 31, 2024
Real estate investments, at cost$6,220,987 $5,667,349 
Loans and direct financing lease receivables, net371,614 352,066 
Real estate investments held for sale, net— 10,018 
Total gross investments$6,592,601 $6,029,433 
Investments in 2025 and 2024
The following table presents information about the Company’s investment activity during the six months ended June 30, 2025 and 2024:
Six months ended June 30,
(Dollar amounts in thousands)20252024
Ownership type
(1)
Fee Interest
Number of properties 121141
Investment allocation:
Land and improvements$162,317 $191,583 
Building and improvements375,600 214,291 
Intangible lease assets8,713 — 
Intangible lease liabilities(722)— 
Construction in progress (2)
59,092 100,983 
Total investments (including acquisition costs) $605,000 $506,857 
_____________________________________
(1)During the six months ended June 30, 2025, the Company acquired fee interests in 119 properties and acquired two properties subject to a ground lease.
(2)Represents amounts incurred at and subsequent to acquisition and includes $2.1 million and $2.2 million of capitalized interest expense during the six months ended June 30, 2025 and 2024, respectively.
During the six months ended June 30, 2025 and 2024, the Company did not make any new investments that individually represented more than 5% of the Company’s total real estate investment portfolio.
Gross Investment Activity
During the six months ended June 30, 2025 and 2024, the Company had the following gross investment activity:
(Dollar amounts in thousands)Number of
Investment
Locations		Dollar
Amount of
Investments
Gross investments, January 1, 20241,873$4,915,246 
Acquisitions of and additions to real estate investments141511,218 
Sales of investments in real estate(13)(16,706)
Relinquishment of properties at end of ground lease term(3)(1,471)
Provision for impairment of real estate (1)
(6,564)
Investments in loans receivable2176,031 
Principal collections on and settlements of loans and direct financing lease receivables(10)(4,900)
Other(1,531)
Gross investments, June 30, 20245,471,324 
Less: Accumulated depreciation and amortization (2)
(421,486)
Net investments, June 30, 20242,009$5,049,838 
Gross investments, January 1, 20252,104$6,029,433 
Acquisitions of and additions to real estate investments121622,806 
Sales of investments in real estate(34)(70,145)
Provision for impairment of real estate (3)
(6,495)
Investments in loans receivable435,489 
Principal collections on and settlements of loans and direct financing lease receivables(5)(15,940)
Other(2,548)
Gross investments, June 30, 20256,592,601 
Less: Accumulated depreciation and amortization (2)
(541,388)
Net investments, June 30, 20252,190$6,051,213 
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(1)During the six months ended June 30, 2024, the Company identified and recorded provisions for impairment at seven tenanted properties and three vacant properties.
(2)Includes $487.9 million and $373.3 million of accumulated depreciation as of June 30, 2025 and 2024, respectively.
(3)During the six months ended June 30, 2025, the Company identified and recorded provisions for impairment at eight tenanted properties and two vacant properties.
Loans and Direct Financing Lease Receivables
As of June 30, 2025 and December 31, 2024, the Company had 26 and 25 loans receivable outstanding, respectively, and three leases accounted for as loans, with an aggregate carrying amount of $371.2 million and $351.6 million, respectively. The maximum amount of loss due to credit risk is the Company's current principal balance of $371.2 million as of June 30, 2025.
The Company’s loans receivable portfolio as of June 30, 2025 and December 31, 2024 is summarized below (dollars in thousands): 
Principal Balance Outstanding
Loan Type
Monthly
Payment (1)
Number of Secured PropertiesEffective Interest RateStated Interest RateMaturity DateJune 30, 2025December 31, 2024
Mortgage (2)(3)
I/O28.80%8.00%2039$12,000 $12,000 
Mortgage (2)
I/O28.53%7.75%20397,300 7,300 
Mortgage (2)(3)
I/O697.79%7.33%203451,000 51,000 
Mortgage (2)
I/O18.42%7.65%20405,300 5,300 
Mortgage (2)(3)
I/O18.54%8.50%20261,525 1,525 
Mortgage (2)(3)
I/O28.33%8.33%2026994 994 
Mortgage (2)
I/O26.87%6.40%20362,520 2,520 
Mortgage (2)
I/O28.33%8.33%20262,389 2,389 
Mortgage (2)
I/O18.99%8.09%205129,100 29,100 
Mortgage (2)
I/O77.39%6.80%203635,474 35,474 
Mortgage (2)
I/O17.73%7.20%20362,470 2,470 
Mortgage (2)(3)
I/O18.00%8.00%20401,754 1,754 
Mortgage (2)
I/O97.00%7.00%20276,977 10,070 
Mortgage (2)
I/O17.73%7.20%20373,600 3,600 
Mortgage (2)
I/O18.30%8.25%2026760 760 
Mortgage (2)(3)
I/O48.64%8.05%203712,250 12,250 
Mortgage (2)(3)
I/O98.85%8.25%203725,993 25,993 
Mortgage (2)
I/O18.84%8.25%203810,200 10,200 
Mortgage (2)
I/O—8.10%8.10%2025— 8,654 
Mortgage (2)
I/O510.19%9.50%203917,487 16,059 
Mortgage (2)
I/O1410.00%8.65%204457,454 57,454 
Mortgage (2)(3)
I/O110.21%9.75%203411,693 7,560 
Mortgage (2)(3)
I/O510.19%9.50%203914,705 17,451 
Mortgage (2)
I/O18.00%8.00%2027900 900 
Mortgage (2)
I/O49.54%8.25%204413,785 6,400 
Mortgage (2)(3)
P+l17.50%7.50%20281,650 — 
Mortgage (2)
I/O18.00%9.72%204519,950 — 
Leasehold interestP+I12.25%(4)2034827 862 
Leasehold interestP+I12.41%(4)20341,232 1,283 
Leasehold interestP+I24.41%(4)203919,957 20,327 
Net investment$371,246 $351,649 
_____________________________________
(1)I/O: Interest Only; P+I: Principal and Interest
(2)Loan requires monthly payments of interest only with a balloon payment due at maturity.
(3)Loan allows for prepayments in whole or in part without penalty.
(4)These leasehold interests are accounted for as loans receivable, as the lease for each property contains an option for the lessee to repurchase the leased property in the future.
Scheduled principal payments due to be received under the Company’s loans receivable as of June 30, 2025 were as follows:
(in thousands)Future Principal Payments Due
July 1 - December 31, 2025$846 
20266,680 
20278,974 
20282,836 
20291,280 
Thereafter350,630 
Total$371,246 
As of June 30, 2025 and December 31, 2024, the Company had $1.3 million of net investments accounted for as direct financing lease receivables. The components of the investments accounted for as direct financing lease receivables were as follows:
(in thousands)June 30, 2025December 31, 2024
Minimum lease payments receivable$1,410 $1,499 
Estimated unguaranteed residual value of leased assets250 250 
Unearned income from leased assets(396)(436)
Net investment$1,264 $1,313 
Scheduled future minimum non-cancelable base rental payments due to be received under the direct financing lease receivables as of June 30, 2025 were as follows:
(in thousands)Future Minimum
Base Rental
Payments
July 1 - December 31, 2025$89 
2026167 
2027143 
2028145 
2029148 
Thereafter718 
Total$1,410 
Allowance for Credit Losses
The Company utilizes a real estate loss estimate model (i.e., a RELEM model) which estimates losses on loans and direct financing lease receivables for purposes of calculating an allowance for credit losses. As of June 30, 2025 and December 31, 2024, the Company recorded an allowance for credit losses of $0.9 million. Changes in the Company’s allowance for credit losses are presented within change in provision for credit losses in the Company’s consolidated statements of operations.
For the six months ended June 30, 2025 and 2024, the changes to the Company's allowance for credit losses were as follows:
(in thousands)Allowance for Credit Losses
Balance at January 1, 2024$666 
Current period provision for expected credit losses(1)
3 
Write-offs charged— 
Recoveries— 
Balance at June 30, 2024$669 
Balance at January 1, 2025$896 
Current period provision for expected credit losses(1)
— 
Write-offs charged— 
Recoveries— 
Balance at June 30, 2025$896 
_____________________________________
(1)Changes in expected credit loss were primarily due to overall changes in the size of our loans and direct financing lease receivables portfolio.
The Company considers the ratio of loan to value ("LTV") to be a significant credit quality indicator for its loans and direct financing lease portfolio. The following table presents information about the LTV of the Company's loans and direct financing lease receivables measured at amortized cost as of June 30, 2025:
Amortized Cost Basis by Origination YearTotal Amortized Cost Basis
(in thousands)2025202420232022Prior to 2022
LTV <60%$— $— $— $— $51,853 $51,853 
LTV 60%-70%— 11,693 — — 29,062 40,755 
LTV >70%28,985 116,902 10,200 61,094 62,720 279,901 
$28,985 $128,595 $10,200 $61,094 $143,635 $372,509 
Real Estate Investments Held for Sale
The Company continually evaluates its portfolio of real estate investments and may elect to dispose of investments considering criteria including, but not limited to, tenant concentration, tenant credit quality, tenant operation type (e.g., industry, sector or concept), unit-level financial performance, local market conditions and lease rates, associated indebtedness and asset location. Real estate investments held for sale are expected to be sold within twelve months.
The following table shows the activity in real estate investments held for sale and intangible lease liabilities held for sale during the six months ended June 30, 2025 and 2024.
(Dollar amounts in thousands)Number of PropertiesReal Estate InvestmentsIntangible Lease LiabilitiesNet Carrying Value
Held for sale balance, January 1, 20244$7,455 $— $7,455 
Transfers to held for sale classification79,912 (76)9,836 
Sales(6)(8,690)76 (8,614)
Transfers to held and used classification—— — — 
Held for sale balance, June 30, 20245$8,677 $— $8,677 
Held for sale balance, January 1, 20255$10,018 $— $10,018 
Transfers to held for sale classification13,446 — 3,446 
Sales(4)(8,577)— (8,577)
Transfers to held and used classification(2)(4,887)— (4,887)
Held for sale balance, June 30, 2025—$— $— $— 
Significant Concentrations
The Company did not have any tenants (including for this purpose, all affiliates of such tenants) whose rental revenue for the six months ended June 30, 2025 or 2024 represented 10% or more of total rental revenue in the Company’s consolidated statements of operations.
The following table lists the state where the rental revenue from the properties in that state during the periods presented represented 10% or more of total rental revenue in the Company’s consolidated statements of operations:
Three months ended June 30,Six months ended June 30,
State2025202420252024
Texas12.7%13.2%12.7%13.3%
Intangible Assets and Liabilities
Intangible assets and liabilities consisted of the following as of the dates presented:
June 30, 2025December 31, 2024
(in thousands)Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Intangible assets:
In-place leases$88,748 $42,146 $46,602 $82,926 $40,499 $42,427 
Intangible market lease assets11,301 6,279 5,022 11,121 5,955 5,166 
Total intangible assets$100,049 $48,425 $51,624 $94,047 $46,454 $47,593 
Intangible market lease liabilities$15,650 $4,807 $10,843 $15,523 $4,823 $10,700 
The remaining weighted average amortization period for the Company’s intangible assets and liabilities as of June 30, 2025, by category and in total, were as follows:
Years Remaining
In-place leases9.1
Intangible market lease assets9.2
Total intangible assets9.1
Intangible market lease liabilities7.7
The following table discloses amounts recognized within the consolidated statements of operations related to amortization of in-place leases, amortization and accretion of above- and below-market lease assets and liabilities, net and the amortization and accretion of above- and below-market ground leases for the periods presented:
Three months ended June 30,Six months ended June 30,
(in thousands)2025202420252024
Amortization of in-place leases (1)
$1,367 $1,842 $2,728 $3,421 
Amortization (accretion) of market lease intangibles, net (2)
(7)(7)(18)(32)
Amortization (accretion) of above- and below-market ground lease intangibles, net (3)
(32)(42)(65)(104)
_____________________________________
(1)Reflected within depreciation and amortization expense.
(2)Reflected within rental revenue.
(3)Reflected within property expenses.
The following table provides the estimated amortization of in-place lease assets to be recognized as a component of depreciation and amortization expense for the next five years and thereafter:
(in thousands)In-Place Lease Assets
July 1 - December 31, 2025$2,674 
20265,097 
20274,572 
20284,037 
20293,942 
Thereafter26,280 
Total$46,602 
The following table provides the estimated net amortization of above- and below-market lease intangibles to be recognized as a component of rental revenue for the next five years and thereafter:
(in thousands)Above Market Lease AssetBelow Market Lease LiabilitiesNet Adjustment to Rental Revenue
July 1 - December 31, 2025$341 $276 $617 
2026673 654 1,327 
2027651 757 1,408 
2028409 718 1,127 
2029397 685 1,082 
Thereafter(7,493)7,753 260 
Total$(5,022)$10,843 $5,821