v3.25.2
Organization and Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Schedule of Variable Interest Entities

The carrying amounts of VIEs' assets and liabilities included in the Company's consolidated financial statements, exclusive of the Operating Partnership, are as follows:

 

(in thousands)

 

June 30, 2025

 

 

December 31, 2024

 

Assets

 

 

 

 

 

 

Real estate assets, net

 

$

465,659

 

 

 

312,873

 

Cash, cash equivalents and restricted cash

 

 

23,101

 

 

 

16,687

 

Tenant and other receivables, net

 

 

6,239

 

 

 

5,833

 

Deferred costs, net

 

 

5,973

 

 

 

3,178

 

Acquired lease intangible assets, net

 

 

14,316

 

 

 

6,293

 

Right of use assets, net

 

 

17,901

 

 

 

18,148

 

Other assets

 

 

1,294

 

 

 

597

 

Total Assets

 

$

534,483

 

 

 

363,609

 

Liabilities

 

 

 

 

 

 

Notes payable

 

$

73,365

 

 

 

32,653

 

Accounts payable and other liabilities

 

 

90,616

 

 

 

16,149

 

Acquired lease intangible liabilities, net

 

 

28,224

 

 

 

10,627

 

Tenants' security, escrow deposits and prepaid rent

 

 

1,397

 

 

 

1,260

 

Lease liabilities

 

 

19,463

 

 

 

19,370

 

Total Liabilities

 

$

213,065

 

 

 

80,059

 

Revenues and Tenant and Other Receivables The primary components of these revenue streams, the timing of satisfying the performance obligations, and amounts are as follows:

 

 

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

(in thousands)

 

Timing of satisfaction of performance obligations

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Management, transaction, and other fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property management services

 

Over time

 

$

4,151

 

 

 

3,895

 

 

$

8,261

 

 

 

7,856

 

Asset management services

 

Over time

 

 

1,746

 

 

 

1,620

 

 

 

3,463

 

 

 

3,222

 

Leasing services

 

Point in time

 

 

1,003

 

 

 

1,016

 

 

 

1,875

 

 

 

1,591

 

Other transaction fees

 

Point in time

 

 

344

 

 

 

204

 

 

 

457

 

 

 

462

 

Total management, transaction, and other fees

 

 

 

$

7,244

 

 

 

6,735

 

 

$

14,056

 

 

 

13,131

 

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table provides a brief description of recent accounting pronouncements and the expected impact on our financial statements:

Standard

Description

Date of adoption

Effect on the financial statements or other significant matters

Recently issued:

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures.

 

ASU 2023-09 requires public business entities to disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes. It also requires greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a specified threshold.

 

January 1, 2025

 

This is an annual disclosure requirement in the Form 10-K and the adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

 

 

ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses

 

ASU 2024-03 requires public business entities to provide additional disclosures that disaggregate certain income statement expense captions into specified categories. The ASU does not impact the presentation of expenses on the face of the income statement but requires additional footnote disclosures to provide users of the financial statements with greater insight into the nature and composition of reported expenses.

 

January 1, 2027

 

The Company is assessing the impact this ASU will have on the Company’s financial statement disclosures. While the adoption of this standard is not expected to have a material impact on the financial position or results of operations, it will require enhanced footnote disclosures related to the disaggregation of income statement expenses.

 

ASU 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments

 

ASU 2024-04 clarifies guidance on the accounting for inducements offered to holders of convertible debt instruments to encourage them to convert the debt into equity securities. Specifically, the ASU clarifies the recognition and measurement of inducement costs and their impact on the issuer’s financial statements.

 

January 1, 2026

 

The Company is assessing the impact this ASU will have on the Company’s financial statement disclosures. The adoption is not expected to have a material impact on the financial position or results of operations, as the Company currently does not have any convertible debt instruments in our financing arrangements.

 

ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity

 

ASU 2025-03 clarifies the guidance in determining the accounting acquirer in a business combination effected primarily by exchanging equity interests when the acquiree is a VIE that meets the definition of a business.

 

January 1, 2027

 

The Company is currently evaluating the impact of this ASU, but it is not expected to materially affect the company's consolidated financial statements.