v3.26.1
Agreements and Transactions with Related Parties
 6 Months Ended
Jun. 30, 2026
Related Party Transactions [Abstract]  
Agreements and Transactions with Related Parties Agreements and Transactions with Related Parties
 
Advisory Agreements with NLOP and CESH
 
We currently have advisory arrangements with Net Lease Office Properties (“NLOP”), pursuant to which we earn fees and are entitled to receive reimbursement for certain administrative expenses. Carey European Student Housing Fund I, L.P. (“CESH”) sold its last property during the first quarter of 2026 (and was dissolved in May 2026), after which it ceased paying asset management fees and other reimbursable costs to us pursuant to certain advisory agreements.

The following tables present a summary of revenue earned and reimbursable costs received/accrued from NLOP and CESH for the periods indicated, included in the consolidated financial statements (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2026202520262025
Administrative reimbursements (a) (b)
$1,000 $1,000 $2,000 $2,000 
Asset management revenue (a) (c)
394 1,304 884 2,654 
Reimbursable costs from affiliates (a) (b)
— 72 — 139 
$1,394 $2,376 $2,884 $4,793 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
NLOP$1,394 $2,209 $2,875 $4,469 
CESH— 167 9 324 
$1,394 $2,376 $2,884 $4,793 
__________
(a)Amounts represent revenues from contracts under ASC 606.
(b)Included within Other advisory income and reimbursements in the consolidated statements of income.
(c)Included within Asset management revenue in the consolidated statements of income.
The following table presents a summary of amounts due from affiliates, which are included within Other assets, net in the consolidated financial statements (in thousands):
June 30, 2026December 31, 2025
Accounts receivable$524 $535 
Asset management fees receivable155 391 
Reimbursable costs— 70 
$679 $996 

Asset Management Revenue
 
Under the advisory agreement with NLOP, we earn an asset management fee, paid in cash, which was initially set at an annual amount of $7.5 million and is being reduced proportionately following the disposition of each portfolio property.

Administrative Reimbursements

Under the advisory agreement with NLOP, we earn a base administrative amount of approximately $4.0 million annually, for certain administrative services, including day-to-day management services, investor relations, accounting, tax, legal, and other administrative matters, paid in cash. In May 2026, a reduction in the base administrative reimbursement paid by NLOP to us was agreed upon; effective July 1, 2026, the reimbursement is $2.0 million annually instead of $4.0 million annually.

Other Transactions with Affiliates and Related Parties

Captive Insurance Company

In March 2025, we formed a wholly owned captive insurance company, which commenced operations in May 2025 and insures a portion of the North American real property portfolios of each of NLOP and us. Our captive insurance company does not have a material impact on our consolidated financial statements.

Other

At June 30, 2026, we owned interests in eight jointly owned investments in real estate, with the remaining interests held by third parties. We consolidate five such investments and account for the remaining three investments under the equity method of accounting (Note 7). In addition, we owned limited partnership units of CESH prior to its dissolution in May 2026. We elected to account for our investment in CESH under the fair value option (Note 7). We received a distribution from CESH of $0.5 million during the six months ended June 30, 2026, which is included in Other gains and (losses) in our consolidated statements of income. We did not receive distributions from CESH during the six months ended June 30, 2025.