| SALES OF PROPERTIES AND PROPERTY HELD-FOR-SALE |
NOTE 5 – SALES OF PROPERTIES AND PROPERTY HELD-FOR-SALE Sales of Properties The following table details the Company’s sales of real estate during the three months ended March 31, 2026 and 2025 (amounts in thousands): | | | | | | | | | | | | | | | | | | Gross | | Gain on Sale of | | Description of Property | | City, State | | Date Sold | | Sales Price | | Real Estate, Net | | Vacant retail property | | Cary, North Carolina | | March 13, 2026 | | $ | 6,000 | | $ | 2,518 | | Havertys retail property | | Newport News, Virginia | | March 31, 2026 | | | 4,200 | | | 1,358 | | Totals for the three months ended March 31, 2026 | $ | 10,200 | | $ | 3,876 | (a) | | | | | | | | | | | | | | | | | | | | | | | | | Land and improvements (b) | | Lakewood, Colorado | | January 16, 2025 | | $ | 400 | | $ | (44) | (b) | Hooters restaurant property | | Concord, North Carolina | | January 21, 2025 | | | 3,253 | | | 1,154 | | Totals for the three months ended March 31, 2025 | $ | 3,653 | | $ | 1,110 | (c) |
| (a) | As a result of these sales, the Company wrote-off, as a reduction to Gain on sale of real estate, net, an aggregate of $31 of unbilled rent receivables and $2 of other assets and receivables. |
| (b) | This property was owned by a consolidated joint venture in which the Company held a 90% interest. The non-controlling interest’s share of the loss was $4. |
| (c) | As a result of these sales, the Company wrote-off, as a reduction to Gain on sale of real estate, net, an aggregate of $73 of unbilled rent receivables and $162 of net unamortized intangible lease assets. |
Property Held-for-Sale In January 2026, the Company entered into a contract, as thereafter amended, to sell a retail property located in South Euclid, Ohio for $1,483,000. The buyer’s right to terminate the contract without penalty expired on March 18, 2026. At March 31, 2026, the Company classified the $1,283,000 net book value of the property’s land, building, improvements and the unamortized balances of unbilled rent receivable and intangible lease assets and liabilities as Property held-for-sale in the accompanying consolidated balance sheet. The property was sold on April 16, 2026 and the sale will result in a gain of approximately $118,000, which will be recognized as Gain on sale of real estate, net, in the consolidated statements of income for the three and six months ending June 30, 2026. Sales subsequent to March 31, 2026 During the quarter ended March 31, 2026, the Company entered into contracts to sell the following properties (amounts in thousands): | | | | | | | | | | | | | | | | | | | | | | | | Estimated Gain | | | | | | | | Date Sold/ | | Gross Sales | | on Sale of Real | | Description of Property | | City, State | | Held-for-Sale (a) | | Estimated Sale | | Price | | Estate, net (b) | | Multi-tenant retail property | | Champaign, Illinois | | April 22, 2026 | | May 5, 2026 | | $ | 7,498 | | $ | 3,300 | | Multi-tenant retail property (c) | | El Paso, Texas | | April 24, 2026 | | June 2, 2026 | | | 17,500 | | | 9,800 | | | | | | | | | | | | | | | |
| (a) | The Company has determined the held-for-sale criteria has been met as the buyers’ right to terminate the contracts without penalty expired on these dates. |
| (b) | Such estimated gains are anticipated to be recognized as Gain on sale of real estate, net, in the consolidated statements of income for the three and six months ending June 30, 2026. |
| (c) | In connection with this sale, the Company intends to pay off the mortgage on this property which had a balance of $8,306 as of March 31, 2026. |
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