On March 7, 2025, the Company acquired an industrial property for $6.1 million, consisting of $0.3 million in cash and 344,119 Class C OP Units valued at $5.9 million, based on an estimated fair value of $17.00 per Class C OP Unit. The property with a leasable area of 48,589 square feet is located in the Jacksonville, Florida metropolitan statistical area and is subject to an existing lease that expires on December 31, 2032, with annual rent escalations based on the consumer price index. The property contains an adjacent land parcel that has the potential to be developed into additional industrial space. The total acquisition cost, including legal fees and transaction costs, was $6.2 million and was allocated as follows: $1.0 million to land, $4.8 million to buildings and improvements, $0.4 million to tenant origination and absorption costs, and an immaterial amount to below-market lease intangibles. The seller is not affiliated with the Company or its affiliates. The Company recognized $0.4 million of rental revenue related to this property during the year ended December 31, 2025.

On July 15, 2024, the Company acquired an industrial manufacturing property that produces optical systems for the defense and aerospace industries for $5.1 million. The property is located in the Tampa, Florida metropolitan area and the tenant entered into a 20-year sale-leaseback agreement. The total acquisition cost, including legal fees and transaction costs, was $5.2 million and was allocated as follows: $1.4 million to land, $3.7 million to buildings and improvements, and $0.1 million to tenant origination and absorption costs. The seller is not affiliated with the Company or its affiliates. The Company recognized $0.5 million and $0.3 million, of rental income related to this property during years ended December 31, 2025 and 2024, respectively.

On December 15, 2025, the Company completed the sale of its office property in Issaquah, Washington formerly leased to Costco Wholesale Corporation (“Costco”) for $26.0 million, which included the sale price of $25.6 million and $0.4 million of extension fees. The gain on sale was $2.4 million and net proceeds from the sale were $5.3 million, net of the $18.3 million mortgage repayment, $0.7 million loan prepayment fee, transfer taxes, commissions and other closing costs.

On February 26, 2025, the Company completed the sale of its industrial property located in Endicott, New York, leased to New Vision Industries, LLC, a subsidiary of Producto Holdings LLC (“Producto”), for a sales price of $2.4 million to an affiliate of the lessee. The gain on sale was $0.1 million and the net proceeds from sale was $2.3 million. In connection with this sale, the lease for the Company’s property in Jamestown, New York with another Producto subsidiary was amended to increase the base rent by $2,500 per month.

During the year ended December 31, 2024, the Company sold two real estate properties (one non-core office and one industrial) and a land parcel for aggregate contract sales prices of $15.3 million, aggregate gain on sale of $3.4 million and aggregate net proceeds of $15.0 million, net of commissions and closing costs.


	Year Ended December 31,
		2025	2024
Property and Location			Rental Income		Percentage of Total Rental Income		Rental Income		Percentage of Total Rental Income
Lindsay, nine industrial properties - CO (three), OH (two), PA, NC, SC and FL			$	6,640	14.5	%	$	6,651	14.3	%
KIA retail property - CA			$	5,052	11.0	%	$	5,029	10.8	%

The Company’s real estate properties are primarily leased to tenants under net leases for which terms and expirations vary. The Company monitors the credit of all tenants to stay abreast of any material changes in credit quality. The Company monitors tenant credit by (1) reviewing the credit ratings of tenants (or their parent companies or lease guarantors) that are rated by nationally recognized rating agencies; (2) reviewing financial statements and related metrics and information that are publicly available or that are required to be provided pursuant to the lease; (3) monitoring news reports and press releases regarding the tenants (or their parent companies or lease guarantors), and their underlying business and industry; and (4) monitoring the timeliness of rent collections. Except for the property leased to the State of California’s Office of Emergency Services (“OES”) in Rancho Cordova, California, all of the Company’s operating leases contain options to extend the lease term with one to six five- or seven-year extensions or one to two 10-year extensions. The lease with OES includes a purchase option that may be exercised until December 31, 2026.


	December 31, 2025						December 31, 2024
	Tenant Origination and Absorption Costs		Above-Market Lease Intangibles		Below-Market Lease Intangibles		Tenant Origination and Absorption Costs		Above-Market Lease Intangibles		Below-Market Lease Intangibles
Cost	$	13,638	$	1,559	$	(14,408)	$	13,194	$	1,560	$	(14,365)
Accumulated amortization	(9,824)		(390)		7,341		(9,203)		(320)		6,417
Net amount	$	3,814	$	1,169	$	(7,067)	$	3,991	$	1,240	$	(7,948)

Amortization of tenant origination and absorption costs for the years ended December 31, 2025 and 2024 was $0.6 million and $1.0 million, respectively. Amortization of above-market lease intangibles for each of the years ended December 31, 2025 and 2024 was $0.1 million. Amortization of below-market lease intangibles was $0.9 million and $0.8 million for the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025, amortization of intangible assets for each of the next five years and thereafter is expected to be as follows (dollars in thousands):


	Tenant Origination and Absorption Costs		Above-Market Lease Intangibles		Below-Market Lease Intangibles
2026	$	558	$	54	$	(926)
2027	549		54		(926)
2028	529		54		(916)
2029	434		54		(876)
2030	423		54		(876)
Thereafter	1,321		899		(2,547)
	$	3,814	$	1,169	$	(7,067)

Weighted-average remaining amortization period	8.2 years		21.7 years		7.9 years

As of December 31, 2025, the Company classified one property as held for sale. In December 2025, the Company entered into a purchase and sale agreement for its industrial property in Saint Paul, Minnesota for $4.0 million and the buyer deposited a $0.3 million non-refundable deposit. In January 2026, the parties amended the purchase and sale agreement, increasing the purchase price to $4.1 million and allowing for an option to extend the closing date to March 31, 2026 with the buyer depositing an additional $1.7 million of non-refundable deposits, which the Company has received.


	December 31,
	2025		2024

Assets related to real estate investments held for sale:
Land, buildings and improvements	$	4,310	$	27,586
Tenant origination and absorption costs	—		2,765
Accumulated depreciation and amortization	(409)		(7,979)
Real estate investments held for sale, net	$	3,901	$	22,372



Liabilities related to real estate investments held for sale:
Other liabilities, net	$	—	$	26

The Company recorded aggregate impairment charges of $5.8 million related to its property and equipment located in Saint Paul, Minnesota during the year ended December 31, 2025. The Company determined that impairment charges were required based on current market conditions at the time and represented the excess of the assets' carrying value over the assets’ estimated sale price less estimated selling costs, of $3.9 million. Impairment estimates can differ materially from actual impairment results once a property is sold and could result in further impairment charges.