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REAL ESTATE AND RELATED LEASE INTANGIBLES, NET
 12 Months Ended
Dec. 31, 2025
Real Estate [Abstract]  
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET 5. REAL ESTATE AND RELATED LEASE INTANGIBLES, NET
The Company’s real estate assets were comprised of the following ($ in thousands):
December 31, 2025December 31, 2024
Land$190,277 $173,798 
Building659,616 622,701 
In-place leases and other intangibles116,303 107,899 
Undepreciated real estate and related lease intangibles966,196 904,398 
Less: Accumulated depreciation and amortization(262,659)(233,595)
Real estate and related lease intangibles, net(1)$703,537 $670,803 
Below market lease intangibles, net (other liabilities)(2)$(22,679)$(25,340)
(1)There was unencumbered real estate of $320.4 million and $213.4 million as of December 31, 2025 and December 31, 2024, respectively.
(2)Below market lease intangibles is net of $18.2 million and $16.5 million of accumulated amortization as of December 31, 2025 and December 31, 2024, respectively.

As of December 31, 2025 and December 31, 2024, the Company had no real estate and lease intangibles held for sale.
The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands):
 Year Ended December 31,
 202520242023
Depreciation expense(1)$25,033 $25,204 $24,166 
Amortization expense6,962 7,123 5,748 
Total real estate depreciation and amortization expense$31,995 $32,327 $29,914 
(1)Depreciation expense on the consolidated statements of income also includes $0.4 million of depreciation on corporate fixed assets for each of the years ended December 31, 2025, 2024, and 2023, respectively.
The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to the intangible assets ($ in thousands):
 December 31, 2025December 31, 2024
Gross intangible assets(1)$116,303 $107,899 
Accumulated amortization64,434 57,281 
Net intangible assets$51,869 $50,618 
(1)Includes $4.2 million and $2.3 million of unamortized above market lease intangibles, which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of December 31, 2025 and December 31, 2024, respectively.

The following table presents increases/reductions in operating lease income related to the amortization of above or below market leases recorded by the Company ($ in thousands):
 Year Ended December 31,
 202520242023
Reduction in operating lease income for amortization of above market lease intangibles acquired$(713)$(378)$(309)
Increase in operating lease income for amortization of below market lease intangibles acquired2,007 2,078 2,106 
Total$1,294 $1,700 $1,797 
The following table presents expected adjustment to operating lease income and expected amortization expense during the next five years and thereafter related to the above and below market leases and acquired in-place lease and other intangibles for property owned as of December 31, 2025 ($ in thousands):
Period Ending December 31,Increase/(Decrease) to Operating Lease IncomeAmortization Expense
2026$997 $6,646 
2027961 6,448 
20281,023 5,418 
20291,195 3,589 
20301,493 3,447 
Thereafter12,822 24,135 
Total$18,491 $49,683 

Rent Receivables

There were $3.4 million and $2.6 million of rent receivables included in other assets on the consolidated balance sheets as of December 31, 2025 and December 31, 2024, respectively.
Operating Lease Income & Tenant Reimbursements

The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at December 31, 2025 ($ in thousands):
Period Ending December 31,Amount
2026$68,433 
202760,980 
202855,029 
202952,512 
203046,752 
Thereafter111,620 
Total$395,326 

Tenant reimbursements, which consist of real estate taxes and utilities paid by the Company, which were reimbursable by the Company’s tenants pursuant to the terms of the lease agreements, were $5.3 million, $6.4 million, and $4.8 million for the years ended December 31, 2025, 2024, and 2023, respectively. Tenant reimbursements are included in operating lease income on the Company’s consolidated statements of income.
Acquisitions

The Company allocates purchase consideration based on relative fair values, and real estate acquisition costs are capitalized as a component of the cost of the assets acquired for asset acquisitions. During the years ended December 31, 2025, 2024, and 2023, all acquisitions were determined to be asset acquisitions.

The Company acquired the following properties during the year ended December 31, 2025 ($ in thousands):
Acquisition DateTypePrimary Location(s)Purchase Price/Fair Value on the Date of ForeclosureOwnership Interest (1)
April 2025(2)OfficeCarmel, IN$42,400 100%
September 2025(3)OfficeRockville, MD22,678 100%
Total real estate acquisitions$65,078 
(1)Properties were consolidated as of acquisition date.
(2)In April 2025, the Company acquired an office portfolio consisting of two buildings in Carmel, IN through foreclosure of a mortgage loan receivable held for investment. The fair value of $42.4 million was determined by using the direct capitalization approach with a capitalization rate of 11.6%, a Level 3 input. There was no gain or loss resulting from the foreclosure of the loan.
(3)In September 2025, the Company acquired an office property in Rockville, MD through foreclosure of a mortgage loan receivable held for investment. The fair value of $22.7 million was determined by using the direct capitalization approach with a capitalization rate of 10.8%, a Level 3 input. There was no gain or loss resulting from the foreclosure of the loan.
The Company acquired the following properties during the year ended December 31, 2024 ($ in thousands):
Acquisition DateTypePrimary Location(s)Purchase Price/Fair Value on the Date of ForeclosureOwnership Interest (1)
February 2024(2)MultifamilyLos Angeles, CA$14,110 100%
April 2024(3)MultifamilyLongview, TX6,080 100%
April 2024(4)MultifamilyAmarillo, TX9,651 100%
June 2024(5)MultifamilyLos Angeles, CA11,455 100%
September 2024(6)OfficeOakland, CA7,500 100%
Total real estate acquisitions$48,796 
(1)Properties were consolidated as of acquisition date.
(2)In February 2024, the Company acquired a multifamily portfolio consisting of three properties in Los Angeles, CA via foreclosure. The portfolio served as collateral for a mortgage loan receivable held for investment. The Company obtained a third-party appraisal of the properties. The $14.1 million fair value was determined by using the sales comparison and direct capitalization approaches. The appraiser utilized a capitalization rate of 5.5%. There was no gain or loss resulting from the foreclosure of the loan. The key inputs used to determine fair value were determined to be Level 3 inputs. The portfolio was sold in June 2024.
(3)In April 2024, the Company acquired a multifamily portfolio consisting of two properties in Longview, TX via foreclosure. The portfolio served as collateral for a mortgage loan receivable held for investment. There was a $0.4 million gain recognized in connection with the foreclosure of the loan. During June 2024, the Company sold the portfolio for $6.1 million. The fair value at foreclosure was based on the sales price.
(4)In April 2024, the Company acquired a multifamily property in Amarillo, TX via foreclosure. The property served as collateral for a mortgage loan receivable held for investment. The Company determined the fair value of $9.7 million by using the sales comparison approach utilizing a terminal capitalization rate of 8.3%. There was no gain or loss resulting from the foreclosure of the loan. The key inputs used to determine fair value were determined to be Level 3 inputs.
(5)In June 2024, the Company acquired a multifamily portfolio consisting of three properties in Los Angeles, CA via foreclosure. The portfolio served as collateral for a mortgage loan receivable held for investment. The $11.5 million fair value was determined by using the sales comparison approach. There was no gain or loss resulting from the foreclosure of the loan.
(6)In September 2024, the Company acquired an office property in Oakland, CA via foreclosure. The property served as collateral for a mortgage loan receivable held for investment. The $7.5 million fair value was determined by using the sales comparison approach and direct capitalization approach. There was a $5 million charge-off of allowance for credit loss resulting from the acquisition of the property. The Company used a terminal capitalization rate of 7.5%. The key inputs used to determine fair value were determined to be Level 3 inputs. Refer to Note 3, Mortgage Loan Receivables for further details.
The Company acquired the following properties during the year ended December 31, 2023 ($ in thousands):
Acquisition DateTypePrimary Location(s)Purchase Price/Fair Value on the Date of ForeclosureOwnership Interest (1)
September 2023(2)Mixed UseNew York, NY$30,400 100%
November 2023(3)MultifamilyPittsburgh, PA34,479 100%
December 2023(4)RetailNew York, NY22,647 100%
Total real estate acquisitions$87,526 
(1)Properties were consolidated as of acquisition date.
(2)In September 2023, the Company acquired a multifamily portfolio consisting of four properties in New York, NY via foreclosure. The portfolio served as collateral for a mortgage loan receivable held for investment. The Company obtained a third-party appraisal of the property. The $30.4 million fair value was determined by using the sales comparison and income approaches. The appraiser utilized a terminal capitalization rate of 5.5%. There was no gain or loss resulting from the foreclosure of the loan. The key inputs used to determine fair value were determined to be Level 3 inputs.
(3)In November 2023, the Company acquired a multifamily property in Pittsburgh, PA via foreclosure. The property served as collateral for a mortgage loan receivable held for investment. The Company obtained a third-party appraisal of the property. The $34.5 million fair value was determined by using the sales comparison and income approaches. The appraiser utilized a terminal capitalization rate of 6.00%. There was no gain or loss resulting from the foreclosure of the loan. The key inputs used to determine fair value were determined to be Level 3 inputs.
(4)In December 2023, the Company acquired a retail property in New York, NY via foreclosure. The property served as collateral for two mortgage loan receivables held for investment. The Company obtained a third-party appraisal of the property. The $22.6 million fair value was determined by using the sales comparison and income approaches. The appraiser utilized a terminal capitalization rate of 5.25%. There was no gain or loss resulting from the foreclosure of the loan. The key inputs used to determine fair value were determined to be Level 3 inputs.
Sales

The Company sold the following property during the year ended December 31, 2025 ($ in thousands):
Sales DateTypePrimary Location(s)Sales ProceedsNet Book ValueRealized Gain/(Loss)Properties
March 2025RetailJenks, OK$13,079 $9,272 $3,807 1
Totals$13,079 $9,272 $3,807 
The Company sold the following properties during the year ended December 31, 2024 ($ in thousands):
Sales DateTypePrimary Location(s)Sales ProceedsNet Book ValueRealized Gain/(Loss)Properties
May 2024OfficePeoria, IL$1,227 $2,320 $(1,093)1
June 2024MultifamilyLos Angeles, CA14,834 13,911 923 3
June 2024RetailWaldorf, MD23,734 11,424 12,310 1
June 2024MultifamilyLongview, TX(1)6,080 6,080 403 2
July 2024MultifamilyLos Angeles, CA11,770 11,455 315 1
October 2024RetailBixby, OK11,335 8,667 2,668 1
December 2024MultifamilyAmarillo, TX10,925 8,520 2,405 1
December 2024RetailEl Centro, CA5,133 3,374 1,759 1
December 2024RetailWoodland Park, CO4,762 2,911 1,851 1
December 2024RetailBennett, CO4,241 2,520 1,721 1
December 2024RetailJacksonville, NC8,244 6,228 2,015 1
Totals$102,285 $77,410 $25,277 
(1)The Company recognized a $0.4 million gain on foreclosure, which is recognized in gain (loss) on real estate, net on the consolidated statements of income.
The Company sold the following properties during the year ended December 31, 2023 ($ in thousands):
Sales DateTypePrimary Location(s)Sales ProceedsNet Book ValueRealized Gain/(Loss)Properties
August 2023HotelSan Diego, CA$43,335 $34,526 $8,808 1 
Totals(1)$43,335 $34,526 $8,808 
(1)Included within sales proceeds is $31.3 million of mortgage financing that was assumed by the buyer.