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REAL ESTATE INVESTMENTS
 3 Months Ended
Mar. 31, 2026
Real Estate [Abstract]  
REAL ESTATE INVESTMENTS REAL ESTATE INVESTMENTS
As of March 31, 2026, the Company’s real estate net investment portfolio of $449.4 million consisted of 41 operating properties, including one property held for sale, located in 14 states.
Acquisitions
On January 16, 2026, the Company acquired the 27.3% remaining tenant-in-common (“TIC”) interests in the Santa Clara, California property leased to Fujifilm Dimatix, Inc.(the “Santa Clara Property”) for $9.6 million and assumed the $12.0 million mortgage note payable secured by the Santa Clara Property, giving the Company 100% ownership and control of the Santa Clara Property. The Company allocated the total acquisition cost, including legal fees and transaction costs and the carrying amount of the Company’s unconsolidated investment, of $9.4 million, as follows: $12.5 million to land, $16.8 million to buildings and improvements, $1.4 million to tenant origination and absorption costs, $0.1 million to other assets, net, and $11.8 million to mortgage notes payable.
Following this transaction, the Company holds a 100% interest in the Santa Clara Property and, accordingly, consolidates the Santa Clara Property’s financial results in its financial statements. Prior to January 16, 2026, the Company owned an approximate 72.7% TIC interest in the Santa Clara Property and as the Santa Clara property was subject to joint control, the Company accounted for its TIC interest using the equity method.
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 $0.1 million of rental revenue related to this property during the three months ended March 31, 2026 and a nominal amount of rental revenue related to this property during the three months ended March 31, 2025.
Dispositions
On March 30, 2026, the Company completed the sale of its vacant industrial property located in Saint Paul, Minnesota for $4.1 million. The net proceeds from sale were $3.9 million, including a $0.3 million deposit received during the year ended December 31, 2025.
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 were $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.
Asset Concentration
As of March 31, 2026 and December 31, 2025, the Company’s real estate portfolio asset concentration (greater than 10% of total assets) was as follows (dollars in thousands):
March 31, 2026December 31, 2025
Property and LocationNet Carrying ValuePercentage of
Total Assets		Net Carrying ValuePercentage of
Total Assets
KIA retail property, Carson, CA$64,936 13.4 %$65,202 13.7 %
Rental Income Concentration
During the three months ended March 31, 2026 and 2025, the Company’s rental income concentration (greater than 10% of rental income) was as follows (dollars in thousands):
Three Months Ended March 31,
20262025
Property and LocationRental IncomePercentage of
Total Rental Income		Rental IncomePercentage of
Total Rental Income
Lindsay, nine industrial properties - CO (three), OH (two), PA, NC, SC and FL
$1,656 14.2 %$1,661 14.2 %
KIA retail property - CA$1,266 10.8 %$1,271 10.8 %
Operating Leases
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.
As of March 31, 2026, the future minimum contractual rent payments due to the Company under the Company’s non-cancellable operating leases are as follows (in thousands):
Amount
April through December 2026$30,011 
202740,381 
202840,800 
202940,264 
203040,268 
Thereafter473,968 
$665,692 
Intangible Assets, Net Related to the Company’s Real Estate
As of March 31, 2026 and December 31, 2025, intangible assets, net related to the Company’s real estate, excluding any intangible assets, net related to properties classified as held for sale, were as follows (in thousands):
March 31, 2026December 31, 2025
Tenant Origination and Absorption CostsAbove-Market Lease IntangiblesBelow-Market Lease IntangiblesTenant Origination and Absorption CostsAbove-Market Lease IntangiblesBelow-Market Lease Intangibles
Cost$13,540 $1,560 $(14,408)$13,638 $1,559 $(14,408)
Accumulated amortization(8,526)(404)7,573 (9,824)(390)7,341 
Net amount$5,014 $1,156 $(6,835)$3,814 $1,169 $(7,067)
Amortization of tenant origination and absorption costs for the three months ended March 31, 2026 and 2025 was $0.2 million. Amortization of above-market lease intangibles for each of the three months ended March 31, 2026 and 2025 was an immaterial amount. Amortization of below-market lease intangibles was $0.2 million for each of the three months ended March 31, 2026 and 2025.
As of March 31, 2026, 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 IntangiblesBelow-Market Lease Intangibles
April through December 2026$510 $41 $(694)
2027673 54 (926)
2028653 54 (916)
2029558 54 (876)
2030547 54 (876)
Thereafter2,073 899 (2,547)
$5,014 $1,156 $(6,835)
Weighted-average remaining amortization period8.5 years21.4 years7.7 years
Real Estate Investments Held for Sale
As of March 31, 2026, 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 Melbourne, Florida leased to Northrop Grumman for $18.7 million and as of March 31, 2026 the buyer deposited a $0.5 million non-refundable deposit.
As of December 31, 2025, the Company classified its vacant industrial property located in Saint Paul, Minnesota as held for sale. The property was sold on March 30, 2026.
The following table summarizes the major components of assets and liabilities related to real estate investments held for sale as of March 31, 2026 and December 31, 2025 (in thousands):
March 31, 2026December 31, 2025
Assets related to real estate investments held for sale:
Land, buildings and improvements$14,649 $4,310 
Tenant origination and absorption costs1,470 — 
Accumulated depreciation and amortization(5,491)(409)
Real estate investments held for sale, net10,628 3,901 
Other assets, net105 — 
Total assets related to real estate investments held for sale:$10,733 $3,901