v3.26.1
OPERATING PARTNERSHIP UNITS
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
OPERATING PARTNERSHIP UNITS OPERATING PARTNERSHIP UNITS
As of December 31, 2025 and 2024, there were 1,593,328 and 1,249,210 Class C OP Units outstanding that were not held by the Company, which are entitled to distributions, but have limited voting rights. After the Class C OP Units have been outstanding for at least one year, the holder may require the Operating Partnership to exchange all or a portion of such holder’s Class C OP Units for cash or, at the option of the Company, shares of Class C Common Stock on a one-for-one basis. On March 7, 2025, the Company acquired an industrial property whereby the seller received 344,119 Class C OP Units valued at $5.9 million, based on an estimated fair value of $17.00 per Class C OP Unit (see Note 3 for additional information).
On February 3, 2025, the Company entered into the Fourth Amended and Restated Limited Partnership Agreement (the “Amended OP Agreement”) of the Operating Partnership, to, among other things, incorporate prior amendments to the Third Amended and Restated Partnership Agreement, and designate and set forth the terms of the Class X OP Units. As of December 31, 2025, the Operating Partnership had awarded a total of 895,043 Class X OP Units to employees. Class X OP Units generally are entitled to receive the same current distributions that are paid on the Class C OP Units.
Prior to December 31, 2024, the Company had issued three types of units of limited partnership interest in the Operating Partnership (“Class M OP Units,” “Class P OP Units,” and “Class R OP Units”), which were not entitled to distributions and had no voting rights. During the year ended December 31, 2024, all of the Class M OP Units, Class P OP Units, and Class R OP Units automatically converted to Class C OP Units. Some of these units were then exchanged on a one-for-one basis for the Company's Class C Common Stock.
OP Unit and Stock Compensation Expense
Stock compensation expense for the OP Unit awards and for stock issued to the board of directors for the years ended December 31, 2025 and 2024, was as follows (in thousands):
Year Ended
December 31,
20252024
Class P OP Units$— $89 
Class R OP Units— 1,222 
Class X OP Units2,675 — 
OP Units stock compensation expense2,675 1,311
Class C Common Stock issued to the board of directors240 275 
Total stock compensation expense$2,915 $1,586 
As of December 31, 2025, total unrecognized compensation expense related to the Class X OP Unit awards was $10.8 million with a weighted average remaining term of 3.9 years.
Distributions and Allocations
Class C OP Units and Class X OP Units received the following distributions and allocations of net income (loss) during the years ended December 31, 2025 and 2024, as follows (in thousands):
Year Ended
December 31,
20252024
Class C and Class X OP Units distributions paid$2,622 $1,919 
Class C and Class X OP Units net (loss) income allocation$(514)$475