v3.25.4
Investments
 12 Months Ended
Dec. 31, 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:
December 31,
20252024
Owned properties (1)
2,1401,946
Properties securing investments in mortgage loans (2)
150150
Ground lease interests108
Total number of investments2,3002,104
_____________________________________
(1)Includes eight and seven properties which are subject to leases accounted for as direct financing leases or loans as of December 31, 2025 and 2024, respectively.
(2)Properties secure 28 and 25 mortgage loans receivable as of December 31, 2025 and 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:
December 31,
(in thousands)20252024
Real estate investments, at cost$6,763,040 $5,667,349 
Loans and direct financing lease receivables, net401,323 352,066 
Real estate investments held for sale, net2,635 10,018 
Total gross investments$7,166,998 $6,029,433 
Investments in 2025 and 2024
The following table presents information about the Company’s investment activity during the years ended December 31, 2025 and 2024:
Year ended December 31,
(Dollars amounts in thousands)20252024
Ownership type
(1)
Fee Interest
Number of properties255264
Investment allocation:
Land and improvements$348,642 $333,983 
Building and improvements751,921 484,417 
Intangible lease assets10,218 7,319 
Intangible lease liabilities(970)(312)
Construction in progress (2)
100,007 263,232 
Total investments (including acquisition costs)$1,209,818 $1,088,639 
_____________________________________
(1)During the year ended December 31, 2025, the Company acquired fee interests in 253 properties and acquired two properties subject to a ground lease.
(2)Represents amounts incurred at and subsequent to initial investment and includes $3.2 million and $5.8 million, respectively, of capitalized interest expense during the years ended December 31, 2025 and 2024.
During the years ended December 31, 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 years ended December 31, 2025, 2024 and 2023, the Company had the following gross investment activity:
(Dollar amounts in thousands)Number of
Investment
Locations		Dollar
Amount of
Investments
Gross investments, December 31, 20221,653 $4,055,385 
Acquisitions of and additions to real estate investments291 1,004,075 
Sales of investments in real estate(51)(120,809)
Relinquishment of properties at end of ground lease term(2)(1,543)
Provisions for impairment of real estate (1)
— (3,548)
Investments in loans receivable2 13,091 
Principal collections on and settlements of loans and direct financing lease receivables(20)(27,908)
Other— (3,497)
Gross investments, December 31, 20231,873 4,915,246 
Acquisitions of and additions to real estate investments264 1,100,712 
Sales of investments in real estate(46)(96,774)
Relinquishment of properties at end of ground lease term(3)(1,471)
Provisions for impairment of real estate (2)
— (14,845)
Investments in loans receivable33 138,464 
Principal collections on and settlements of loans and direct financing lease receivables(17)(10,022)
Other— (1,877)
Gross investments, December 31, 20242,104 6,029,433 
Acquisitions of and additions to real estate investments255 1,240,364 
Sales of investments in real estate(60)(132,951)
Provisions for impairment of real estate (3)
— (11,997)
Investments in loans and direct financing lease receivables15 97,868 
Principal collections on and settlements of loans and direct financing lease receivables(14)(48,503)
Other— (7,216)
Gross investments, December 31, 20252,300 7,166,998 
Less: Accumulated depreciation and amortization (4)
— (612,674)
Net investments, December 31, 20252,300 $6,554,324 
_____________________________________________ 
(1)During the year ended December 31, 2023, the Company identified and recorded provisions for impairment at six tenanted properties and two vacant properties.
(2)During the year ended December 31, 2024, the Company identified and recorded provisions for impairment at 17 tenanted properties and five vacant properties.
(3)During the year ended December 31, 2025, the Company identified and recorded provisions for impairment at 12 tenanted properties and two vacant properties.
(4)Includes $556.7 million of accumulated depreciation as of December 31, 2025.
Loans and Direct Financing Lease Receivables
As of December 31, 2025 and 2024, the Company had 28 and 25 mortgage loans receivable outstanding, respectively, and three leases accounted for as loans with an aggregate carrying amount of $398.0 million and $351.6 million, respectively. The maximum amount of loss due to credit risk is the Company's current principal balance of $398.0 million as of December 31, 2025.
The Company's loans receivable portfolio as of December 31, 2025 and 2024 is summarized below (dollars in thousands): 
Loan Type
Monthly Payment (1)
Number of Secured PropertiesEffective Interest RateStated Interest RateMaturity DatePrincipal Balance Outstanding
December 31, 2025December 31, 2024
Mortgage (2)(3)
I/O28.80%8.00%2039$12,000 $12,000 
Mortgage (2)
I/O18.53%7.75%20392,500 7,300 
Mortgage (2)(3)
I/O697.82%7.33%203451,000 51,000 
Mortgage (2)
I/O—8.42%7.65%2040— 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%205135,000 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/O87.00%7.00%20276,275 10,070 
Mortgage (2)
I/O—7.73%7.20%2037— 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/O310.19%9.50%203910,300 16,059 
Mortgage (2)
I/O1410.00%8.65%204457,454 57,454 
Mortgage (2)(3)
I/O18.60%9.75%203415,000 7,560 
Mortgage (2)(3)
I/O210.20%9.50%20395,900 17,451 
Mortgage (2)
I/O18.00%8.00%2027900 900 
Mortgage (2)
I/O69.58%8.25%204423,649 6,400 
Mortgage (2)
P+l17.50%7.50%20281,550 — 
Mortgage (2)
I/O19.72%8.00%204519,950 — 
Mortgage (2)
I/O210.93%9.00%204513,000 — 
Mortgage (2)
I/O18.06%7.25%20408,276 — 
Mortgage (2)
I/O59.92%9.25%204013,650 — 
Mortgage (2)
I/O19.54%8.25%20453,692 — 
Leasehold interestP+I1(4)(4)2034794 862 
Leasehold interestP+I1(4)(4)20341,180 1,283 
Leasehold interestP+I2(4)(4)203919,567 20,327 
Net investment    $397,966 $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 December 31, 2025 were as follows:
(in thousands)Loans Receivable
2026$6,680 
20278,271 
20282,736 
20291,280 
20301,379 
Thereafter377,620 
Total$397,966 
As of December 31, 2025 and 2024, the Company had $4.4 million and $1.3 million, respectively, 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:
 December 31,
(in thousands)20252024
Minimum lease payments receivable$18,652 $1,499 
Estimated unguaranteed residual value of leased assets559 250 
Unearned income from leased assets(14,850)(436)
Net investment$4,361 $1,313 
Scheduled future minimum non-cancelable base rental payments due to be received under the direct financing lease receivables as of December 31, 2025 were as follows:
(in thousands)Future Minimum Base Rental Payments
2026$531 
2027518 
2028532 
2029546 
2030560 
Thereafter15,965 
Total$18,652 
Allowance for Credit Losses
The Company utilizes a real estate loss estimate model (i.e. a RELEM) which estimates losses on loans and direct financing lease receivables for purposes of calculating an allowance for credit losses. As of December 31, 2025 and 2024, the Company recorded an allowance for credit losses of $1.0 million and $0.9 million, respectively, which is recorded within loans and direct financing receivables on the Company's consolidated balance sheets. 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 years ended December 31, 2025, 2024 and 2023, the changes to the Company's allowance for credit losses were as follows:
(in thousands)Allowance for Credit Losses
Balance at December 31, 2022$765 
Current period provision for expected credit losses (1)
(99)
Write-offs charged— 
Recoveries— 
Balance at December 31, 2023666 
Current period provision for expected credit losses (1)
230 
Write-offs charged— 
Recoveries— 
Balance at December 31, 2024896 
Current period provision for expected credit losses (1)
108
Write-offs charged—
Recoveries—
Balance at December 31, 2025$1,004 
_____________________________________
(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 as of December 31, 2025:
Amortized Cost Basis by Origination YearTotal Amortized Cost Basis
(in thousands)2025202420232022Prior to 2022
LTV <60%$3,151 $— $— $— $54,314 $57,465 
LTV 60%-70%— 15,000 — — 30,207 45,207 
LTV >70%77,367 100,522 10,200 56,792 54,774 299,655 
$80,518 $115,522 $10,200 $56,792 $139,295 $402,327 
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 years ended December 31, 2025 and 2024: 
(Dollar amounts in thousands)Number of
Properties		Real Estate
Investments		Intangible Lease
Liabilities		Net Carrying
Value
Held for sale balance, December 31, 20234 $7,455 $— $7,455 
Transfers to held for sale classification16 25,854 (76)25,778 
Sales(15)(23,291)76 (23,215)
Transfers to held and used classification— — — — 
Held for sale balance, December 31, 20245 10,018 $— 10,018 
Transfers to held for sale classification5 7,440 — 7,440 
Sales(7)(9,936)— (9,936)
Transfers to held and used classification(2)(4,887)— (4,887)
Held for sale balance, December 31, 20251 $2,635 $— $2,635 
Significant Concentrations
The Company did not have any tenants (including for this purpose, all affiliates of such tenants) whose rental revenue for the years ended December 31, 2025, 2024 or 2023 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:
 Year ended December 31,
State202520242023
Texas12.5%13.4%13.3%


Intangible Assets and Liabilities
Intangible assets and liabilities consisted of the following as of the dates presented:
 December 31, 2025December 31, 2024
(in thousands)Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Intangible assets:      
In-place leases$88,145 $44,489 $43,656 $82,926 $40,499 $42,427 
Intangible market lease assets11,072 6,607 4,465 11,121 5,955 5,166 
Total intangible assets$99,217 $51,096 $48,121 $94,047 $46,454 $47,593 
Intangible market lease liabilities$15,521 $4,755 $10,766 $15,523 $4,823 $10,700 
 The remaining weighted average amortization period for the Company's intangible assets and liabilities as of December 31, 2025, by category and in total, were as follows:
 Years Remaining
In-place leases8.9
Intangible market lease assets8.6
Total intangible assets8.9
 
Intangible market lease liabilities9.2
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:
 Year ended December 31,
(in thousands)202520242023
Amortization of in-place leases (1)
$5,490 $6,377 $6,408 
Amortization (accretion) of market lease intangibles, net (2)
(3)(60)11 
Amortization (accretion) of above- and below-market ground lease intangibles, net (3)
(126)(178)(286)
 ______________________________________________________
(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
2026$5,122 
20274,606 
20284,080 
20293,985 
20303,903 
Thereafter21,960 
Total$43,656 
The following table provides the estimated net amortization of above- and below-market lease intangibles to be recognized as a component of rental revenue for the next five years and thereafter:
(in thousands)Above Market Lease AssetBelow Market Lease LiabilitiesNet Adjustment to Rental Revenue
2026$(657)$644 $(13)
2027(636)768 132 
2028(393)745 352 
2029(381)712 331 
2030(380)694 314 
Thereafter(2,018)7,203 5,185 
Total$(4,465)$10,766 $6,301