DEBT (Tables)

12 Months Ended

Dec. 31, 2025

As of December 31, 2025 and 2024, the Company’s mortgage notes payable consisted of the following (dollars in thousands):


Collateral	December 31, 2025		December 31, 2024		Interest Rate (1)	Loan Maturity
Costco property (2)	$	—	$	18,589	N/A	N/A
Taylor Fresh Foods property	12,070		12,329		3.85%	11/01/2029

Total mortgage notes payable	12,070		30,918

Less unamortized deferred financing costs	(76)		(141)
Mortgage notes payable, net	$	11,994	$	30,777

(1)Represents the contractual interest rate in effect under the respective mortgage note payable.

(2)On December 15, 2025, the Company repaid the $18.3 million mortgage note secured by the property and paid a $0.7 million loan prepayment fee in conjunction with the sale of the property, which is reflected as a loss on extinguishment of debt as shown in the interest expense, net of unrealized gain on interest rate swaps and derivative settlements section below.

Schedule of Carrying Values and Estimated Fair Values of Mortgage Notes Payable

The following summarizes the face value, carrying amount and fair value of the Company’s mortgage notes payable, net, which are Level 3 fair value measurements, reflecting unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, as of December 31, 2025 and 2024 (in thousands):


	December 31, 2025						December 31, 2024
	Face Value		Carrying Value		Fair Value		Face Value		Carrying Value		Fair Value
Mortgage notes payable, net	$	12,070	$	11,994	$	11,400	$	30,918	$	30,777	$	27,964

Schedule of Maturities of Long-term Debt

The following summarizes the future principal repayments of the Company’s mortgage notes payable and Credit Facility as of December 31, 2025 (in thousands):


			Credit Facility
	Mortgage Notes Payable		Revolver		Term Loan		Total
2026	$	269	$	—	$	—	$	269
2027 (1)	279		—		250,000		250,279
2028	290		—		—		290
2029	11,232		—		—		11,232
2030	—		—		—		—
Thereafter	—		—		—		—
Total principal	12,070		—		250,000		262,070

Less: deferred financing costs, net	(76)		—		(511)		(587)
Net	$	11,994	$	—	$	249,489	$	261,483

(1) On January 16, 2026, the Company entered into an agreement with the Lenders to amend the Credit Agreement to extend the maturity date of the Credit Facility eighteen months to July 18, 2028.

Schedule of Interest Expense

The following is a reconciliation of the components of interest expense, net of derivative settlements and unrealized loss (gain) on interest rate swaps for the years ended December 31, 2025 and 2024 (in thousands):


	Year Ended December 31,
		2025			2024
Mortgage notes payable:
Interest expense		$	1,326		$	1,383
Amortization of deferred financing costs		29			29
Loss on early extinguishment of debt		768			—
Credit facility:
Interest expense		15,422			17,767
Unused commitment fees		76			377
Amortization and write-off of deferred financing costs		600			1,163
Swap derivatives:
Derivative cash settlements		(4,581)		(1)	(6,206)		(3)
Amortization of off-market interest rate derivatives		3,909		(1)	—
Accrued interest from December 31, 2024 to respective swap execution date		291		(1)	—
Amortization of unrealized gain on interest rate swap valuation		(1,015)		(2)	(1,017)		(2)
Unrealized loss on non-designated or ineffective interest rate derivative instruments, net		—			2,496		(4)
Other		92			229
Total interest expense		$	16,917		$	16,221

(1)Related to the two swap agreements effective December 31, 2024, for $125.0 million each, for an aggregate of $250.0 million, corresponding to the Term Loan, as described in Note 7. The Company paid aggregate premiums of $4.2 million, including accrued interest receivable of $0.3 million, to buy down the fixed rate below the market rate, and the resulting derivatives were amortized over the term of the swap agreements.

(2)The unrealized gain on interest rate swap derivative previously recorded in accumulated other comprehensive income and noncontrolling interest in Operating Partnership is being amortized on a straight-line basis as a reduction to interest expense through the original maturity date of the Credit Facility, January 18, 2027.

(3)Derivative cash settlements received from derivative instruments entered into by the Company covering (i) its original $150.0 million Credit Facility Term Loan effective May 31, 2022 and (ii) its additional $100.0 million Term Loan

commitment effective November 30, 2022. Both derivative instruments were canceled on December 31, 2024, as discussed above and in Note 7.

(4) Represents the $3.0 million unrealized loss on the valuation of the $150.0 million derivative instrument, net of the $0.5 million gain on the valuation of the $100.0 million derivative instrument for the year ended December 31, 2024 that were recognized as a net increase in interest expense.