DEBT (Tables)

3 Months Ended

Mar. 31, 2026

As of March 31, 2026 and December 31, 2025, the Company’s mortgage notes payable consisted of the following (dollars in thousands):


Collateral	March 31, 2026		December 31, 2025		Interest Rate (1)	Loan Maturity

Taylor Fresh Foods property	$	12,004	$	12,070	3.85%	11/01/2029
Santa Clara Property (2)	11,969		—		3.86%	10/01/2027
Total mortgage notes payable	23,973		12,070
Unamortized fair value adjustment of assumed mortgage note payable	(180)		—
Unamortized deferred financing costs	(85)		(76)
Mortgage notes payable, net	$	23,708	$	11,994

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

(2)On January 16, 2026, the Company acquired the 27.3% remaining TIC interest, resulting in the Company holding a 100% interest in the Santa Clara Property and, accordingly, the Company consolidated the Santa Clara Property’s financial results, including the mortgage note payable secured by the Santa Clara Property, in its financial statements beginning on January 16, 2026.

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 March 31, 2026 and December 31, 2025 (in thousands):


	March 31, 2026						December 31, 2025
	Face Value		Carrying Value		Fair Value		Face Value		Carrying Value		Fair Value
Mortgage notes payable, net	$	23,973	$	23,708	$	23,063	$	12,070	$	11,994	$	11,400

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 March 31, 2026 (in thousands):


			Credit Facility
	Mortgage Notes Payable		Revolver		Term Loan		Total
April through December 2026	$	470	$	—	$	—	$	470
2027	11,981		—		—		11,981
2028	290		—		250,000		250,290
2029	11,232		—		—		11,232
2030	—		—		—		—
Thereafter	—		—		—		—
Total principal	23,973		—		250,000		273,973
Fair value adjustment of assumed mortgage note, net	(180)		—		—		(180)
Deferred financing costs, net	(85)		—		(286)		(371)
Net	$	23,708	$	—	$	249,714	$	273,422

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 three months ended March 31, 2026 and 2025 (in thousands):


	Three Months Ended March 31,
		2026			2025
Mortgage notes payable:
Interest expense		$	212		$	343
Amortization of deferred financing costs and fair value adjustment of assumed mortgage note payable		31			7

Credit facility:
Interest expense		3,396			3,854
Unused commitment fees		18			19
Amortization of deferred financing costs		58			150
Swap derivatives:
Derivative cash settlements		(767)		(1)	(1,180)		(4)
Amortization of off-market interest rate derivatives		539		(1)	784		(4)
Accrued interest from swap effective date to swap execution date		139		(1)	291		(4)
Amortization of unrealized gain on interest rate swap valuation		(250)		(2)	(250)		(2)
Loss on extinguishment of debt		1,145		(3)	—

Other		41			30
Total interest expense, net of unrealized gain on interest rate swaps and derivative settlements		$	4,562		$	4,048

(1)Related to the three swap agreements effective December 31, 2025, for $83.3 million each, for an aggregate of $250.0 million, corresponding to the Term Loan, as described in Note 6. The Company paid aggregate premiums of $2.7 million, including accrued interest receivable of $0.1 million, to buy down the fixed rate below the market rate, and the resulting derivatives are 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)As the Credit Agreement is a loan syndication, the Company evaluated the January 16, 2026 amendment on a creditor-by-creditor basis and determined certain creditor commitments were considered extinguishments of debt. As such, this balance includes the write-off of any related unamortized deferred costs, fees paid to these creditors, and a portion of costs incurred with third parties directly allocated to commitments that were considered extinguishments of debt.

(4)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. 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.