Leases

12 Months Ended

Dec. 31, 2025

11. Leases

The Company’s rental revenue primarily consists of rent earned from operating leases in the Company’s net leased portfolio which consists of fixed annual rents that escalates annually throughout the term of the leases, and the tenants are generally responsible for all property-related expenses, including taxes, insurance, and maintenance. As of December 31, 2025 and 2024, the Company's investments in real estate are leased to single tenants on a net lease basis. The Company did not have any properties in 2023.

The following table details the components of operating lease income from the leases of which the Company is the lessor:


	For the Year Ended December 31,
	2025		2024
Fixed lease payments	$	69,804	$	12,000
Variable lease payments(1)		7,366		1,338
Straight-line rent adjustment		7,326		940
Amortization of (above)- and below-market leases, net		717		388
Total rental revenue:	$	85,213	$	14,666

(1)

Consists of tenant reimbursements.

The following table presents the undiscounted future minimum rents the Company expects to receive from its net lease properties classified as operating leases as of December 31, 2025:


Year	Future Minimum Rents(1)
2026	$	139,278
2027		144,860
2028		165,007
2029		169,320
2030		161,325
Thereafter		1,305,457
Total:	$	2,085,247

(1)

Aggregate base rents of $478,196 related to executed leases that have not yet commenced are excluded.

Tenant Concentration

For the year ended December 31, 2025, the Company had two tenants from which the Company derived 10% or more of its revenue. For the year ended December 31, 2025, the Company recorded rental revenues of $17,619 and $9,861 from these two tenants, which represented 21% and 12% of its revenue, respectively.