The following table sets forth the components of our investments in real estate as of March 31, 2026 and December 31, 2025, respectively, excluding real estate held for sale (dollars in thousands):


	March 31, 2026		December 31, 2025
Real estate:
Land (1)	$	150,873	$	150,873
Building and improvements	1,185,271		1,183,036
Tenant improvements	56,536		56,536
Accumulated depreciation	(370,491)		(359,513)
Real estate, net	$	1,022,189	$	1,030,932

Real estate depreciation expense on building and tenant improvements was $11.0 million for the three months ended March 31, 2026. Real estate depreciation expense on building and tenant improvements was $9.8 million for the three months ended March 31, 2025.

We did not acquire any properties during the three months ended March 31, 2026, and we acquired six industrial properties during the three months ended March 31, 2025. The acquisitions are summarized below (dollars in thousands):


Three Months Ended March 31, 2025
Location	Aggregate Number of Properties (unaudited)	Acquisition Date	Aggregate Square Footage (unaudited)	Weighted Average Remaining Lease Term at Time of Acquisition	Aggregate Purchase Price		Aggregate Capitalized Acquisition Expenses
Houston, TX	5	February 19, 2025	215,474	10.0 years	$	29,457	$	207
Dallas, TX	1	March 28, 2025	140,304	11.3 years	44,268		268
	6		355,778	10.8 years	$	73,725	$	475

We determined the fair value of assets acquired and liabilities assumed related to the properties acquired during the three months ended March 31, 2025 as follows (dollars in thousands):


	Three Months Ended March 31, 2025
Acquired assets and liabilities	Purchase price
Land	$	5,570	(1)
Building	58,778
Tenant Improvements	582
In-place Leases	4,358
Leasing Costs	4,520
Customer Relationships	2,032

Below Market Leases	(2,115)		(2)


Total Purchase Price	$	73,725

(1)The Dallas-Fort Worth, Texas property that we acquired is subject to a ground lease, therefore there is no land asset included on the condensed consolidated balance sheets.

(2)This amount includes $250 of prepaid rent included in Other liabilities on the condensed consolidated balance sheets related to sale-leaseback acquisitions.

Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for the nine months ending December 31, 2026 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):


Year	Tenant Lease Payments
Nine Months Ending December 31, 2026	$	102,778
2027	125,727
2028	114,746
2029	107,545
2030	96,352
2031	88,233
Thereafter	487,235

In accordance with the lease terms, substantially all operating expenses are required to be paid by the tenant directly, or reimbursed to us by the tenant; however, we would be required to pay operating expenses on the respective properties in the event the tenants fail to pay them.

The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three months ended March 31, 2026 and 2025, respectively (dollars in thousands):


	For the three months ended March 31,
Lease revenue reconciliation	2026		2025		$ Change		% Change
Fixed lease payments	$	36,726	$	32,448	$	4,278	13.2	%
Variable lease payments	5,183		5,053		130		2.6	%
	$	41,909	$	37,501	$	4,408	11.8	%

There was no sales-type lease activity in the three months ended March 31, 2026. During the three months ended March 31, 2025, we had one lease classified as a sales-type lease. We recorded a sales-type lease receivable of $18.5 million in the condensed consolidated balance sheets, net of $0.02 million in allowance for credit loss. For the three months ended March 31, 2025, the interest income earned from sales-type leases of $0.4 million was included in other income in the condensed consolidated statements of operations. In developing the expected credit loss, we reviewed the tenant’s credit rating, which is AA- stable, performed a collectability analysis, and confirmed they were current on payments as of March 31, 2025.

On April 1, 2025, the tenant exercised their purchase option provided in their lease agreement with us. The sale transaction was completed on April 30, 2025, resulting in the realization of the sales-type lease receivable from the condensed consolidated balance sheets. Refer to see Note 4, “Real Estate Dispositions, Held for Sale, and Impairment Charges” for additional detail.

The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of March 31, 2026 and December 31, 2025, respectively, excluding real estate held for sale (dollars in thousands):


	March 31, 2026				December 31, 2025
	Lease Intangibles		Accumulated Amortization		Lease Intangibles		Accumulated Amortization
In-place leases	$	109,960	$	(71,358)	$	109,960	$	(69,932)
Leasing costs	106,257		(56,878)		105,468		(55,214)
Customer relationships	65,190		(40,602)		65,190		(39,893)
	$	281,407	$	(168,838)	$	280,618	$	(165,039)

	Deferred Rent Receivable/(Liability)		Accumulated (Amortization)/Accretion		Deferred Rent Receivable/(Liability)		Accumulated (Amortization)/Accretion
Above market leases	$	11,843	$	(10,250)	$	11,843	$	(10,135)
Below market leases and deferred revenue	(58,551)		42,238		(57,930)		40,739

Total amortization expense related to in-place leases, leasing costs and customer relationship lease intangible assets was $3.8 million for the three months ended March 31, 2026 and $3.4 million for the three months ended March 31, 2025, and is included in depreciation and amortization expense in the condensed consolidated statements of operations and comprehensive income.

Total amortization related to above-market lease values was $0.1 million for the three months ended March 31, 2026, and $0.1 million for the three months ended March 31, 2025 and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income. Total amortization related to below-market lease values was $1.5 million for the three months ended March 31, 2026 and $1.6 million for the three months ended March 31, 2025 and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income.

We did not acquire any properties during the three months ended March 31, 2026, and acquired six industrial properties during the three months ended March 31, 2025. The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the three months ended March 31, 2025, were as follows:


Intangible Assets & Liabilities												March 31, 2025
In-place leases												10.7
Leasing costs												10.7
Customer relationships												15.7

Below market leases												10.7
All intangible assets & liabilities												12.0