The Company’s rental revenue consists of rent earned from the operating leases at the Company’s industrial properties. The leases include fixed base rents, subject to periodic step-ups and variable components. The variable components of the Company’s operating leases consist of reimbursement of operating expenses such as insurance, real estate taxes and common area maintenance costs.

The following table summarizes the fixed and variable components of the Company’s operating leases for the three months ended March 31, 2026 and 2025 ($ in thousands):


	For the three months ended March 31,
	2026		2025
Fixed lease payments	$	8,862	$	8,116
Variable lease payments		1,366		1,033
Total rental revenue	$	10,228	$	9,149

The following table presents the undiscounted future minimum rents the Company expects to receive for its industrial properties as of March 31, 2026 ($ in thousands):


Year	Future Minimum Rents
2026 (remaining)	$	24,060
2027		32,911
2028		33,896
2029		34,912
2030		35,955
2031		37,033
Thereafter		137,496
Total	$	336,263

As of March 31, 2026, the Company had concentration of credit risks related to the following tenant leases:


			Annualized Base Rent Statistics
Tenant	Property	Tenant Industry	Annualized Base Rent (1) (in thousands)		% of Portfolio Annualized Base Rent	Average Annualized Base Rent per Sq. Ft. (2)
Amazon.com Services LLC	Middletown Property	E-commerce	$	11,130	31%	$	9.13
Amazon.com Services LLC	Washington Property	E-commerce	$	11,787	33%	$	58.22
Shoals Technologies Group, LLC	Nashville Property	Renewable energy	$	5,742	16%	$	9.00
GAF Energy LLC	Georgetown Property	Renewable energy	$	3,809	11%	$	8.47

(1)

Annualized base rent represents annualized contractual base rental income, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term (“Annualized Base Rent”). The Annualized Base Rent presented in the table is as of March 31, 2026.

(2)

Average annualized base rent per square foot is calculated as the Annualized Base Rent divided by the leased rentable square feet.

As of March 31, 2026, the leases with Amazon.com Services LLC represent approximately 64% of the Company’s Annualized Base Rent. The obligations of Amazon.com Services LLC under its leases with the Company are guaranteed by its parent, Amazon.com, Inc. (“Amazon”). Amazon is a public company that is subject to the filing requirements of the Securities and Exchange Act of 1934, as amended. Amazon is required to file its audited financial statements in its Annual Reports on Form 10-K and its unaudited interim financial statements in its Quarterly Reports on Form 10-Q, which can be found on the SEC’s website at www.sec.gov. Reference to Amazon’s filings with the SEC is solely for the information of investors. Amazon’s filings with the SEC should not be considered a part of or as incorporated by reference in this Quarterly Report on Form 10-Q.

As of March 31, 2026, approximately 64% of the Company’s Annualized Base Rent is from tenants within the e-commerce industry and the remainder of the Company’s Annualized Base Rent is from tenants within the renewable energy industry and food and beverage industry.

As of March 31, 2026, one of the Company’s investments in real estate is subject to a ground lease. The Company is the lessee under the ground lease. The Company assumed this ground lease as part of the Washington Property acquisition. There were no initial direct costs associated with this ground lease. The initial term of the ground lease expires on December 31, 2074, and it has two ten-year extension options. The ground lease is an absolute net lease whereby the Company is required to pay all taxes, utilities and maintenance. Payments under the Company’s Washington Property ground lease consist exclusively of fixed payment components, which incorporate periodic increases based on fixed percentage escalations. The Company utilized its incremental borrowing rate at the time of entering the ground lease, which was 7.41%, as the discount rate to determine its lease liability. The Company classified the ground lease as a finance lease. As of March 31, 2026, the remaining lease term of the Company’s finance lease was 48.8 years.

The following table details the undiscounted future lease payments under the Company’s finance lease as of March 31, 2026 ($ in thousands):


Year	Future Lease Payments
2026 (remaining)	$	3,660
2027		4,880
2028		4,880
2029		5,611
2030		5,611
2031		5,611
Thereafter		473,872
Total lease payments		504,125
Less imputed interest		(406,027	)
Total lease liability - finance lease	$	98,098

The following table details the current and non-current portion of the lease liability under the Company’s finance lease as of March 31, 2026 and December 31, 2025 ($ in thousands):


	March 31, 2026		December 31, 2025
Current lease liability - finance lease (1)	$	4,866	$	4,866
Noncurrent lease liability - finance lease		93,232		92,707
Total lease liability - finance lease (2)	$	98,098	$	97,573

(1)

Current lease liability - finance lease represents the net present value of lease payments under the ground lease due within the next 12 months; this amount was calculated by discounting the cash flows using the Company’s incremental borrowing rate at the time of assuming the ground lease, which was 7.41%.

(2)

The total finance lease liability is initially recognized at the commencement of the ground lease and represents the present value of future lease payments, discounted using the Company’s incremental borrowing rate at the time of assuming the ground lease, which was 7.41%. Over the term of the ground lease, the finance lease liability is increased by the accretion of interest recognized using the effective interest method and reduced by the ground lease payments made in accordance with the lease terms.

The following table details the Company’s right-of-use asset obtained under the finance lease as of March 31, 2026 and December 31, 2025 ($ in thousands):


	March 31, 2026			December 31, 2025
Right-of-use asset from recognition of finance lease	$	95,150		$	95,150
Favorable lease asset		8,008			8,008
Right-of-use asset - finance lease		103,158			103,158
Accumulated amortization of right-of-use asset		(2,999	)		(2,485	)
Right-of-use asset, net	$	100,159		$	100,673

The following table details the fixed and variable components of the Company’s finance lease for the three months ended March 31, 2026 and 2025 ($ in thousands):


	For the three months ended March 31,
	2026		2025
Interest on lease liabilities	$	1,745	$	1,706
Amortization of right-of-use assets		514		513
Total finance lease costs	$	2,259	$	2,219