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REAL ESTATE AND RELATED LEASE INTANGIBLES, NET
 6 Months Ended
Jun. 30, 2026
Real Estate [Abstract]  
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET 5. REAL ESTATE AND RELATED LEASE INTANGIBLES, NET
The Company’s real estate assets were comprised of the following ($ in thousands):
June 30, 2026December 31, 2025
Land$219,575 $190,277 
Building718,918 659,616 
In-place leases and other intangibles119,227 116,303 
Undepreciated real estate and related lease intangibles1,057,720 966,196 
Less: Accumulated depreciation and amortization(281,224)(262,659)
Real estate and related lease intangibles, net(1)$776,496 $703,537 
Below market lease intangibles, net (other liabilities)(2)$(21,692)$(22,679)
(1)There was unencumbered real estate of $400.5 million and $320.4 million as of June 30, 2026 and December 31, 2025, respectively.
(2)Below market lease intangibles is net of $19.3 million and $18.2 million of accumulated amortization as of June 30, 2026 and December 31, 2025, respectively.

As of June 30, 2026 and December 31, 2025, the Company had no real estate and lease intangibles held for sale.
The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2026202520262025
Depreciation expense(1)$6,578 $6,464 $12,939 $12,516 
Amortization expense2,765 1,579 5,311 2,863 
Total real estate depreciation and amortization expense$9,343 $8,043 $18,250 $15,379 
(1)Depreciation expense on the consolidated statements of income also includes $0.1 million and $0.2 million of depreciation on corporate fixed assets for the three months ended June 30, 2026 and June 30, 2025, respectively, and $0.2 million and $0.1 million of depreciation on corporate fixed assets for the six months ended June 30, 2026 and June 30, 2025, respectively
The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to the intangible assets ($ in thousands):
 June 30, 2026December 31, 2025
Gross intangible assets(1)$119,227 $116,303 
Accumulated amortization70,284 64,434 
Net intangible assets$48,943 $51,869 
(1)Includes $3.7 million and $4.2 million of unamortized above market lease intangibles, which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively.

The following table presents increases/reductions in operating lease income related to the amortization of above or below market leases recorded by the Company ($ in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2026202520262025
Reduction in operating lease income for amortization of above market lease intangibles acquired$(271)$(157)$(539)$(250)
Increase in operating lease income for amortization of below market lease intangibles acquired497 503 995 998 
Total$226 $346 $456 $748 
The following table presents expected adjustment to operating lease income and expected amortization expense during the next five years and thereafter related to the above and below market leases and acquired in-place lease and other intangibles for property owned as of June 30, 2026 ($ in thousands):
Period Ending December 31,Increase/(Decrease) to Operating Lease IncomeAmortization Expense
2026 (last six months)$494 $4,591 
2027952 6,433 
20281,014 5,410 
20291,230 3,609 
20301,493 3,458 
Thereafter12,822 22,750 
Total$18,005 $46,251 

Rent Receivables

There were $3.6 million and $3.4 million of rent receivables included in other assets on the consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively.
Operating Lease Income & Tenant Reimbursements

The following table is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at June 30, 2026 ($ in thousands):
Period Ending December 31,Amount
2026 (last six months)$41,889 
202780,508 
202878,642 
202977,663 
203077,134 
Thereafter148,851 
Total$504,687 

Tenant reimbursements, which consist of real estate taxes and utilities paid by the Company, which were reimbursable by the Company’s tenants pursuant to the terms of the lease agreements, were $1.5 million and $3.0 million for the three and six months ended June 30, 2026, respectively, and $1.5 million and $2.5 million for the three and six months ended June 30, 2025, respectively. Tenant reimbursements are included in operating lease income on the Company’s consolidated statements of income.
Acquisitions

The Company allocates purchase consideration based on relative fair values, and real estate acquisition costs are capitalized as a component of the cost of the assets acquired for asset acquisitions. During the six months ended June 30, 2026 and June 30, 2025, all acquisitions were determined to be asset acquisitions.

The Company acquired the following properties during the six months ended June 30, 2026 ($ in thousands):
Acquisition DateTypePrimary Location(s)Purchase Price/Fair Value on the Date of ForeclosureOwnership Interest (1)
January 2026(2)Multi-familyNew York, NY$61,723 100%
February 2026(3)HotelCanton, OH12,139 100%
March 2026(4)OfficePortland, OR5,851 100%
June 2026(5)OfficeBirmingham, AL8,258 100%
Total real estate acquisitions$87,971 
(1)Properties were consolidated as of acquisition date.
(2)In January 2026, the Company acquired a multi-family portfolio consisting of three buildings in New York, NY through foreclosure of a mortgage loan receivable held for investment. The fair value of $61.7 million was determined by using the direct capitalization approach with a capitalization rate of 5.7%, a Level 3 input. There was no gain or loss resulting from the foreclosure of the loan.
(3)In February 2026, the Company acquired a hotel property in Canton, OH through foreclosure of a mortgage loan receivable held for investment. The fair value of $12.1 million was determined by using the direct capitalization approach with a capitalization rate of 10.0%, a Level 3 input. There was no gain or loss resulting from the foreclosure of the loan.
(4)In March 2026, the Company acquired an office property in Portland, OR through foreclosure of a mortgage loan receivable held for investment. The fair value of $5.9 million was determined by using the direct capitalization approach with a capitalization rate of 11.0%, a Level 3 input. There was no gain or loss resulting from the foreclosure of the loan.
(5)In June 2026, the Company acquired an office property in Birmingham, AL through foreclosure of a mortgage loan receivable held for investment. The fair value of $8.3 million was determined by using the direct capitalization approach with a capitalization rate of 11.0%, a Level 3 input. There was no gain or loss resulting from the foreclosure of the loan.
The Company acquired the following properties during the six months ended June 30, 2025 ($ in thousands):
Acquisition DateTypePrimary Location(s)Purchase Price/Fair Value on the Date of ForeclosureOwnership Interest (1)
April 2025(2)OfficeCarmel, IN$42,400 100%
Total real estate acquisitions$42,400 
(1)Properties were consolidated as of acquisition date.
(2)In April 2025, the Company acquired an office portfolio consisting of two buildings in Carmel, IN through foreclosure of a mortgage loan receivable held for investment. The fair value of $42.4 million was determined by using the direct capitalization approach with a capitalization rate of 11.6%, a Level 3 input. There was no gain or loss resulting from the foreclosure of the loan.
Sales
The Company did not have any sales during the six months ended June 30, 2026.
The Company sold the following property during the six months ended June 30, 2025 ($ in thousands):
Sales DateTypePrimary Location(s)Sales ProceedsNet Book ValueRealized Gain/(Loss)Properties
March 2025RetailJenks, OK$13,079 $9,272 $3,807 1
Totals$13,079 $9,272 $3,807