Real Estate Investments

There were no real estate assets acquired or liabilities assumed during the six months ended June 30, 2025 or 2024. Also, there were no dispositions of real estate during the six months ended June 30, 2025 or 2024.

The following table discloses amounts recognized within the consolidated statements of operations and comprehensive loss related to amortization of in-place leases and other intangibles and amortization and accretion of above- and below-market lease assets and liabilities, net, for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2025		2024		2025		2024
In-place leases	$	341	$	574	$	721	$	1,155
Other intangibles	—		177		—		354
Total included in depreciation and amortization	$	341	$	751	$	721	$	1,509

Above-market lease intangibles	$	29	$	142	$	64	$	287
Below-market lease liabilities	(171)		(213)		(343)		(424)
Total included in revenue from tenants	$	(142)	$	(71)	$	(279)	$	(137)

Below-market ground lease, included in property operating expenses	$	12	$	12	$	25	$	25

The following table provides the projected amortization expense and adjustments to revenues for the next five years as of June 30, 2025:


(In thousands)	2025 (remainder)		2026		2027		2028		2029		2030
In-place leases	$	385	$	632	$	624	$	584	$	385	$	385

Total to be included in depreciation and amortization	$	385	$	632	$	624	$	584	$	385	$	385

Above-market lease assets	$	59	$	117	$	117	$	112	$	85	$	85
Below-market lease liabilities	(114)		(183)		(180)		(180)		(142)		(22)
Total to be included in revenue from tenants	$	(55)	$	(66)	$	(63)	$	(68)	$	(57)	$	63

As of June 30, 2025 and June 30, 2024, there were no tenants whose annualized rental income on a straight-line basis, based on leases commenced, represented greater than 10% of total annualized rental income for all portfolio properties on a straight-line basis.

When circumstances indicate the carrying value of a property classified as held for use may not be recoverable, the Company reviews the property for impairment. For the Company, the most common triggering events are (i) concerns regarding the tenant (i.e., credit or expirations) in the Company’s single-tenant properties or significant vacancy in the Company’s multi-tenant properties and (ii) changes to the Company’s expected holding period as a result of business decisions or non-recourse debt maturities. If a triggering event is identified, the Company considers the projected cash flows due to various performance indicators, and where appropriate, the Company evaluates the impact on its ability to recover the carrying value of the properties based on the expected cash flows on an undiscounted basis over its intended holding period. The Company makes certain assumptions in this approach including, among others, the market and economic conditions, expected cash flow projections, intended holding periods and assessments of terminal values. Where more than one possible scenario exists, the Company uses a probability weighted approach in estimating cash flows. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analysis may not be achieved, and actual losses for impairment may be realized in the future. If the undiscounted cash flows over the expected hold period are less than the carrying value, the Company reflects an impairment charge to write the asset down to its fair value.

The Company recorded an impairment charge of $7.1 million on its 1140 Avenue property during the three and six months ended June 30, 2025. This charge was recognized to reduce the property's carrying value to its estimated fair value.

The Company recorded impairment charges totaling $13.1 million for the three and six months ended June 30, 2025, related to its 400 E. 67th Street/200 Riverside property. These charges were recognized to reduce the carrying value of the property to its estimated fair value.

The Company recorded impairment charges totaling $10.3 million for the three and six months ended June 30, 2025, related to its 196 Orchard Street property. These charges were recognized to reduce the carrying value of the property to its estimated fair value.

The Company recorded $84.7 million of impairment charges in the three and six months ended June 30, 2024 on its 9 Times Square property. This impairment charge was recorded to reduce the carrying value of the property to its estimated fair value. The property was sold in December of 2024.

For additional information and disclosures related to the Company’s impairment charges, see Note 5 — Mortgage Notes Payable, Net.