The following table sets forth the components of our investments in real estate as of June 30, 2025 and December 31, 2024, respectively, excluding real estate held for sale (dollars in thousands):


	June 30, 2025		December 31, 2024
Real estate:
Land (1)	$	149,988	$	139,743
Building and improvements	1,141,648		1,017,534
Tenant improvements	55,516		54,516
Accumulated depreciation	(339,331)		(319,646)
Real estate, net	$	1,007,821	$	892,147

Real estate depreciation expense on building and tenant improvements was $10.5 million and $20.3 million for the three and six months ended June 30, 2025, respectively. Real estate depreciation expense on building and tenant improvements was $10.2 million and $20.1 million for the three and six months ended June 30, 2024, respectively.

We acquired ten industrial properties during the six months ended June 30, 2025, and acquired five properties during the six months ended June 30, 2024. The acquisitions are summarized below (dollars in thousands):


Six Months Ended		Aggregate Square Footage	Weighted Average Remaining Lease Term at Time of Acquisition	Aggregate Purchase Price		Aggregate Capitalized Acquisition Expenses
June 30, 2025	(1)	874,871	14.3 years	$	153,067	$	867
June 30, 2024	(2)	142,125	25.1 years	$	11,954	$	267

(1)On February 19, 2025, we acquired a five-property, 215,474 square foot portfolio in Houston, Texas for $29.5 million. These properties are fully leased to one tenant and had 10.0 years of remaining lease term at the time we acquired the portfolio. On March 28, 2025, we acquired a 140,304 square foot property in Dallas-Fort Worth, Texas for $44.3 million. The property is fully leased to one tenant and had 11.3 years of remaining lease term at the time we acquired the property. On May 9, 2025, we acquired a 303,991 square foot property in Germantown, Wisconsin for $62.9 million. The property is fully leased to one tenant and had 19.4 years of remaining lease term at the time we acquired the property. On June 25, 2025, we acquired a three-property, 215,102 square foot portfolio in Harrison Township, Michigan for $16.5 million. These properties are fully leased to one tenant and had 10.0 years of remaining lease term at the time we acquired the portfolio.

(2)On May 7, 2024, we acquired a five-property, 142,125 square foot portfolio in Warfordsburg, Pennsylvania for $12.0 million. These properties were fully leased to one tenant and had 25.1 years of remaining lease term at the time we acquired the portfolio.


	Six Months Ended June 30, 2025			Six Months Ended June 30, 2024
Acquired assets and liabilities	Purchase price			Purchase price
Land	$	10,640	(1)	$	1,169
Building	117,074			7,990
Tenant Improvements	1,145			277
In-place Leases	10,376			917
Leasing Costs	11,595			1,386
Customer Relationships	4,285			125
Above Market Leases	67			90		(3)
Below Market Leases	(2,115)		(2)	—


Total Purchase Price	$	153,067		$	11,954

Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for the six months ending December 31, 2025 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):

In accordance with the lease terms, substantially all operating expenses are required to be paid by the tenant directly, or reimbursed to us from the tenant; however, we would be required to pay operating expenses on the respective properties in the event the tenants fail to pay them.

The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three and six months ended June 30, 2025 and 2024, respectively (dollars in thousands):


	For the three months ended June 30,
Lease revenue reconciliation	2025		2024		$ Change		% Change
Fixed lease payments	$	34,328	$	33,084	$	1,244	3.8	%
Variable lease payments	5,205		3,973		1,232		31.0	%
	$	39,533	$	37,057	$	2,476	6.7	%


	For the six months ended June 30,
Lease revenue reconciliation	2025		2024		$ Change		% Change
Fixed lease payments	$	66,775	$	64,874	$	1,901	2.9	%
Variable lease payments	10,259		7,905		2,354		29.8	%
	$	77,034	$	72,779	$	4,255	5.8	%

During the six months ended June 30, 2025, we had one lease classified as a sales-type lease. We recorded a sales-type lease receivable of $18.5 million in the condensed consolidated balance sheets, net of $0.02 million in allowance for credit loss. For the three and six months ended June 30, 2025, the interest income earned from sales-type leases of $0.1 million and $0.5 million, respectively, was included in other income in the condensed consolidated statements of operations. There was no sales-type lease activity in the three and six months ended June 30, 2024. In developing the expected credit loss, we reviewed the tenant’s credit rating, which is AA- stable, performed a collectability analysis, and confirmed they were current on payments as of June 30, 2025.

On April 1, 2025, the tenant exercised their purchase option provided in their lease agreement with us. The sale transaction was completed on April 30, 2025, resulting in the realization of the sales-type lease receivable from the condensed consolidated balance sheets. Refer to see Note 5, “Real Estate, Held for Sale and Impairment Charges” for additional detail.

The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of June 30, 2025 and December 31, 2024, respectively, excluding real estate held for sale (dollars in thousands):


	June 30, 2025				December 31, 2024
	Lease Intangibles		Accumulated Amortization		Lease Intangibles		Accumulated Amortization
In-place leases	$	106,392	$	(67,206)	$	96,392	$	(64,830)
Leasing costs	100,601		(51,853)		89,093		(48,963)
Customer relationships	64,374		(38,066)		60,377		(36,962)
	$	271,367	$	(157,125)	$	245,862	$	(150,755)

	Deferred Rent Receivable/(Liability)		Accumulated (Amortization)/Accretion		Deferred Rent Receivable/(Liability)		Accumulated (Amortization)/Accretion
Above market leases	$	11,843	$	(9,887)	$	13,718	$	(11,582)
Below market leases and deferred revenue	(58,482)		37,863		(56,616)		34,620

Total amortization expense related to in-place leases, leasing costs and customer relationship lease intangible assets was $3.8 million and $7.2 million for the three and six months ended June 30, 2025, respectively, and $5.8 million and $9.3 million for the three and six months ended June 30, 2024, respectively, and is included in depreciation and amortization expense in the condensed consolidated statements of operations and comprehensive income.

Total amortization related to above-market lease values was $0.1 million and $0.2 million for the three and six months ended June 30, 2025, respectively, and $0.1 million and $0.3 million for the three and six months ended June 30, 2024, respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income. Total amortization related to below-market lease values was $1.6 million and $3.2 million for the three and six months ended June 30, 2025, respectively, and $2.1 million and $3.8 million for the three and six months ended June 30, 2024, respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income.

We acquired ten industrial properties during the six months ended June 30, 2025, and acquired five industrial properties during the six months ended June 30, 2024. The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the six months ended June 30, 2025 and 2024, were as follows:


Intangible Assets & Liabilities	June 30, 2025	June 30, 2024
In-place leases	13.9	25.1
Leasing costs	13.9	25.1
Customer relationships	18.6	25.1
Above market leases	19.4	25.1
Below market leases	10.7	0.0
All intangible assets & liabilities	15.1	25.1