v3.25.4
Rental Property
 12 Months Ended
Dec. 31, 2025
Real Estate [Abstract]  
Real Estate Rental Property
The following table summarizes the components of rental property, net as of December 31, 2025 and 2024.

Rental Property (in thousands)December 31, 2025December 31, 2024
Land$811,569 $771,794 
Buildings, net of accumulated depreciation of $855,290 and $738,348, respectively
4,785,314 

4,634,634 
Tenant improvements, net of accumulated depreciation of $43,997 and $42,092, respectively
45,922 44,987 
Building and land improvements, net of accumulated depreciation of $220,644 and $305,426, respectively
613,864 396,883 
Construction in progress148,371 218,616 
Deferred leasing intangibles, net of accumulated amortization of $425,502 and $386,627, respectively
394,967 428,865 
Total rental property, net$6,800,007 $6,495,779 
Acquisitions

The following tables summarize the acquisitions of the Company during the years ended December 31, 2025 and 2024. The Company accounted for all of its acquisitions as asset acquisitions.

Year ended December 31, 2025
Market(1)
Date AcquiredSquare FeetNumber of BuildingsPurchase Price
(in thousands)
Minneapolis, MN January 9, 2025161,600 1 $16,537 
Chicago, IL February 27, 2025231,964 2 26,748 
Three months ended March 31, 2025393,564 3 43,285 
Louisville, KY(2)
May 7, 2025— — 5,497 
Chicago, ILJune 12, 2025183,200 1 18,399 
Three months ended June 30, 2025183,200 1 23,896 
Houston, TX(3)
September 15, 2025462,250 1 47,485 
Dayton, OH(4)
September 23, 2025— — 2,944 
Dayton, OH(3)
September 23, 2025524,160 1 54,043 
Three months ended September 30, 2025986,410 2 104,472 
Fresno, CAOctober 27, 2025408,198 1 49,154 
Kansas City, MONovember 19, 2025552,281 2 42,963 
Nashville, TNDecember 4, 202599,561 1 17,516 
Cincinnati, OHDecember 9, 2025215,670 1 22,577 
Chicago, ILDecember 17, 2025621,246 1 70,673 
Raleigh, NCDecember 22, 2025340,200 1 83,043 
Three months ended December 31, 20252,237,156 7285,926 
Year ended December 31, 20253,800,330 13 $457,579 
(1) As defined by CBRE-EA industrial market geographies. If the building is located outside of a CBRE-EA defined market, the city and state is reflected.
(2) The Company acquired a vacant land parcel through a consolidated joint venture.
(3) These buildings were acquired through reverse like-kind exchange agreements pursuant to Section 1031 of the Code (“Reverse 1031 Exchanges”) with a third-party intermediary. See below under “Variable Interest Entities” for additional information.
(4) The Company acquired a vacant land parcel.
Year ended December 31, 2024
Market(1)
Date AcquiredSquare FeetNumber of BuildingsPurchase Price
(in thousands)
Cincinnati, OH March 18, 2024697,500 1 $50,073 
Three months ended March 31, 2024697,500 1 50,073 
Milwaukee, WIApril 8, 2024150,002 1 16,062 
Portland, ORApril 15, 202499,136 1 17,058 
Louisville, INApril 16, 2024592,800 1 52,352 
Portland, OR(2)
June 6, 2024— — 8,178 
El Paso, TXJune 10, 2024254,103 1 32,182 
Chicago, IL June 24, 2024947,436 5 87,560 
Columbus, OHJune 26, 2024150,207 1 20,408 
Three months ended June 30, 20242,193,684 10 233,800 
Reno, NV(2)
July 25, 2024— — 1,896 
Reno, NV(3)
August 8, 2024— — 8,959 
LaGrange, GASeptember 9, 2024323,368 1 34,870 
Boston, MASeptember 12, 2024290,471 5 78,127 
Three months ended September 30, 2024613,839 6 123,852 
Minneapolis, MN October 10, 2024360,000 1 43,288 
Minneapolis, MN October 15, 2024126,000 1 23,331 
Minneapolis, MNOctober 30, 202496,096 1 13,896 
Philadelphia, PA October 31, 202469,492 1 12,443 
Phoenix, AZNovember 7, 202480,000 1 14,707 
Kansas City, MONovember 12, 2024676,000 2 55,651 
Chicago, ILDecember 3, 2024725,917 5 73,230 
Charlotte, NCDecember 5, 202486,749 1 12,981 
Salt Lake City, UTDecember 10, 2024172,847 1 34,615 
Charlotte, NC(3)
December 13, 2024— — 8,926 
Sacramento, CA December 30, 202455,064 1 9,536 
Three months ended December 31, 20242,448,165 15 302,604 
Year ended December 31, 20245,953,188 32 $710,329 
(1) As defined by CBRE-EA industrial market geographies. If the building is located outside of a CBRE-EA defined market, the city and state is reflected.
(2) The Company acquired a vacant land parcel.
(3) The Company acquired a vacant land parcel through a consolidated joint venture.

On May 7, 2025, the Company formed a joint venture with a third party, and the venture is primarily engaged in the development and eventual operation of an industrial real estate property located in Shepherdsville, Kentucky.

On December 13, 2024, the Company formed a joint venture with a third party that is primarily engaged in the development and eventual operation of two industrial real estate properties located in Concord, North Carolina.

On August 8, 2024, the Company formed a joint venture with a third party that is primarily engaged in the development and eventual operation of an industrial real estate property located in Reno, Nevada.

The Company accounts for its investment in the joint ventures under the voting interest model of consolidation. See Note 2 for further discussion of this determination. See Note 7 for further discussion of the third-parties’ noncontrolling interest in the joint ventures.
The following table summarizes the allocation of the consideration paid at the date of acquisition during the years ended December 31, 2025 and 2024 for the acquired assets and liabilities in connection with the acquisitions identified in the tables above.

Year ended December 31, 2025Year ended December 31, 2024
Acquired Assets and LiabilitiesPurchase price (in thousands)Weighted average amortization period (years) of intangibles at acquisitionPurchase price (in thousands)Weighted average amortization period (years) of intangibles at acquisition
Land$45,786 N/A$84,965 N/A
Buildings315,431 N/A504,551 N/A
Tenant improvements5,843 N/A8,726 N/A
Building and land improvements30,568 N/A26,207 N/A
Construction in progress1,569 N/A3,603 N/A
Deferred leasing intangibles - in-place leases40,236 7.260,659 6.4
Deferred leasing intangibles - tenant relationships18,969 10.832,784 10.1
Deferred leasing intangibles - above market leases— N/A934 2.7
Other assets167 N/A243 N/A
Operating lease right-of-use assets3,495 N/A3,554 N/A
Deferred leasing intangibles - below market leases(990)5.0(12,343)6.2
Operating lease liabilities(3,495)N/A(3,554)N/A
Total purchase price$457,579  $710,329  

Dispositions

The following table summarizes the Company’s dispositions for the years ended December 31, 2025, 2024, and 2023. All of the dispositions were sold to third parties and were accounted for under the full accrual method.

Year ended December 31,
Sales of rental property, net (dollars in thousands)202520242023
Number of buildings111010
Building square feet (in millions)2.21.62.0
2025 dispositions contribution to net income(1)
$2,214 $6,338 $5,654 
2024 dispositions contribution to net income(1)
$— $(6,183)$3,964 
2023 dispositions contribution to net income(1)
$— $— $2,354 
Proceeds from sale of rental property, net$164,235 $126,479 $105,602 
Net book value$70,485 $94,206 $51,502 
Gain on the sales of rental property, net$93,750 $32,273 $54,100 
(1) Exclusive of any loss on impairment, gain on involuntary conversion, and gain on the sales of rental property, net.

Variable Interest Entities

In conjunction with the acquisition of the Houston, Texas and Dayton, Ohio buildings noted above, the Company entered into Reverse 1031 Exchanges with a third-party intermediary, which, for a maximum of 180 days, allows the Company to defer for tax purposes gains on the sale of other properties identified and sold within this period. Until the earlier of the termination of the exchange agreements or 180 days after the acquisition dates, the third-party intermediary is the legal owner of the entities that own these properties. The agreements that govern the operations of these entities provide the Company with the power to direct the activities that most significantly impact the entities’ economic performance. These entities are deemed a VIE as of December 31, 2025 because it does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties. The Company has determined that it is the primary beneficiary of these VIEs as a result of having the power to direct the activities that most significantly impact its economic performance and the obligation to absorb losses, as well as the right to receive benefits that could be potentially significant to the VIEs. Accordingly, the Company has consolidated the entities and their operations as of the acquisition date. As of December 31, 2025, the VIEs had total assets, primarily consisting of real estate, and liabilities of approximately $100.6 million and $2.5 million, respectively.
Loss on Impairment

The following table summarizes the Company’s loss on impairment for assets held and used during the years ended December 31, 2025 and 2024. The Company did not recognize a loss on impairment during the year ended December 31, 2023.

Market(1)
Buildings
Event or Change in Circumstance Leading to Impairment Evaluation(2)
Valuation technique utilized to estimate fair value
Fair Value(3)
Loss on Impairment
(in thousands)
Lewiston, ME1Change in estimated hold period
(4)
Discounted cash flows
(5)
2,831$888 
Year ended December 31, 2025$888 
Salt Lake City, UT1Change in estimated hold period
(6)
Discounted cash flows
(7)
21,827$4,967 
Year ended December 31, 2024$4,967 
(1)As defined by CBRE-EA industrial market geographies. If the building is located outside of a CBRE-EA defined market, the city and state is reflected.
(2)The Company tested the asset group for impairment utilizing a probability weighted recovery analysis of certain scenarios, and it was determined that the carrying value of the property and intangibles were not recoverable from the estimated future undiscounted cash flows.
(3)The estimated fair value of the property is based on Level 3 inputs and is a non-recurring fair value measurement.
(4)This property was sold during the year ended December 31, 2025.
(5)Level 3 inputs used to determine fair value for the property impaired: discount rate of 12.0% and exit capitalization rate of 10.0%.
(6)This property was sold during the year ended December 31, 2024.
(7)Level 3 inputs used to determine fair value for the property impaired: discount rate of 9.3% and exit capitalization rate of 6.3%.

Involuntary Conversion

In December 2023, the Company recorded an estimated loss on involuntary conversion of approximately $3.0 million for the year ended December 31, 2023 related to a tornado that damaged one of the Company’s buildings. An insurance policy provided coverage for these losses, and accordingly the loss on involuntary conversion was fully offset for the year ended December 31, 2023. As of December 31, 2023, the receivable from the insurance coverage was estimated to be approximately $3.0 million, which was included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets.

During the year ended December 31, 2024, the approximately $3.0 million receivable from the insurance coverage was relieved and exchanged for improvements made to the building and included as a non-cash investing activity on the accompanying Consolidated Statements of Cash Flows. During the years ended December 31, 2025 and December 31, 2024, the Company recognized a gain on involuntary conversion of approximately $1.9 million and $11.8 million, respectively. The Company did not recognize a gain or loss on involuntary conversion during the year ended December 31, 2023.

Deferred Leasing Intangibles

The following table summarizes the deferred leasing intangibles, net on the accompanying Consolidated Balance Sheets as of December 31, 2025 and 2024.

December 31, 2025December 31, 2024
Deferred Leasing Intangibles (in thousands)GrossAccumulated AmortizationNetGrossAccumulated AmortizationNet
Above market leases$71,657 $(41,824)$29,833 $76,232 $(39,335)$36,897 
Other intangible lease assets748,812 (383,678)365,134 739,260 (347,292)391,968 
Total deferred leasing intangible assets$820,469 $(425,502)$394,967 $815,492 $(386,627)$428,865 
Below market leases$59,664 $(34,098)$25,566 $64,703 $(31,368)$33,335 
Total deferred leasing intangible liabilities$59,664 $(34,098)$25,566 $64,703 $(31,368)$33,335 

The following table summarizes the amortization expense and the net increase to rental income for the amortization of deferred leasing intangibles during the years ended December 31, 2025, 2024 and 2023.

 Year ended December 31,
Deferred Leasing Intangibles Amortization (in thousands)202520242023
Net increase to rental income related to above and below market lease amortization$2,515 $579 $865 
Amortization expense related to other intangible lease assets$84,961 $91,254 $89,036 
The following table summarizes the amortization of deferred leasing intangibles over the next five calendar years as of December 31, 2025.

YearAmortization Expense Related to Other Intangible Lease Assets (in thousands)Net Increase (Decrease) to Rental Income Related to Above and Below Market Lease Amortization (in thousands)
2026$75,604 $1,508 
2027$63,067 $799 
2028$54,524 $693 
2029$46,313 $377 
2030$36,682 $(104)