Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivables portfolio consists of our Net investments in finance leases and loans receivable (net of allowance for credit losses). Operating leases are not included in finance receivables.


	Maturity Date	June 30, 2026		December 31, 2025
Sale-leaseback transactions accounted for as loans receivable (a)	2038 – 2057	$	912,431	$	857,931
Net investments in direct financing leases (b)	2026 – 2036	212,162		267,530
Secured loans receivable (c)	2026	38,922		35,783
Net investments in sales-type leases (c)	2057	10,759		10,642
		$	1,174,274	$	1,171,886

(a)These investments are accounted for as loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases. Maturity dates reflect the current lease maturity dates. Amounts are net of allowance for credit losses of $26.4 million and $35.3 million as of June 30, 2026 and December 31, 2025, respectively.

As a result of foreign currency exchange rate fluctuations during the six months ended June 30, 2026 (primarily the U.S. dollar strengthening against the euro), there was a decrease of $11.2 million in the carrying value of Net investments in finance leases and loans receivable from December 31, 2025 to June 30, 2026.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Sale-leaseback transactions accounted for as loans receivable	$	19,747	$	11,430	$	38,947	$	20,297
Net investments in direct financing leases	6,443		7,674		14,012		15,351
Secured loans receivable	726		641		1,404		1,248
Net investments in sales-type leases	246		531		485		838
	$	27,162	$	20,276	$	54,848	$	37,734

During the six months ended June 30, 2026, we entered into the following sale-leaseback, which was deemed to be a loan receivable in accordance with ASC 310, Receivables and ASC 842, Leases (dollars in thousands):


Property Location(s)	Number of Properties	Date of Acquisition	Property Type	Total Investment
Peebles, Ohio (2 properties) and Hope, Arkansas (1 property)	3	2/6/2026	Industrial	$	22,345

	3			$	22,345

During the six months ended June 30, 2026 and 2025, we recorded a release of allowance for credit losses of $9.0 million and an allowance for credit losses of $14.7 million, respectively, on our sale-leaseback transactions accounted for as loans receivables due to changes in economic conditions.

In connection with two construction projects, and in accordance with ASC 310, Receivables and ASC 842, Leases, through June 30, 2026 we capitalized land and buildings totaling $64.5 million on a consolidated basis, including $30.4 million during the six months ended June 30, 2026, which is recorded in Net investments in finance leases and loans receivable in our consolidated financial statements.

At June 30, 2026, the following construction loans are accounted for as secured loan receivables for accounting purposes in accordance with the acquisition, development and construction arrangement sub-section of ASC 310, Receivables (in thousands):


Location/Description	Funded Year to Date		Loan Maturity Date (a)		Total Funded as of
				June 30, 2026			December 31, 2025
Las Vegas, Nevada (retail)	$	2,359	Dec. 2026		$	20,726		$	18,367
Las Vegas, Nevada (mixed use)	779		Nov. 2026		18,196			17,417
	$	3,138			$	38,922		$	35,784


	June 30, 2026		December 31, 2025
Lease payments receivable	$	122,007	$	146,467
Unguaranteed residual value	190,868		244,928
	312,875		391,395
Less: unearned income	(99,107)		(120,120)
Less: allowance for credit losses (a)	(1,606)		(3,745)
	$	212,162	$	267,530

(a)During the six months ended June 30, 2026 and 2025, we recorded a net allowance for credit losses of $14.7 million and $3.7 million, respectively, on our net investments in direct financing leases, which was included within Other gains and (losses) in our consolidated statements of income, due to changes in expected economic conditions. In addition, during the six months ended June 30, 2026, we reduced the allowance for credit losses balance by $16.8 million, in connection with the reclassification of a property from Net investments in finance leases and loans receivable to Land, buildings and improvements — net lease and other, as described below.

During the six months ended June 30, 2026, we reclassified one property with a carrying value of $35.5 million from Net investments in finance leases and loans receivable to Land, buildings and improvements — net lease and other in connection with a change in lease classification due to an extension of the underlying lease (Note 4).

In January 2026, we reclassified a net-lease property located in Oceanside, California, to net investments in sales-type leases for $11.0 million on our consolidated balance sheets (based on the estimated purchase price) in accordance with ASC 842, Leases, since the property was expected to be sold to the tenant leasing the property, resulting in a lease modification. In connection with this transaction, we reclassified the following amounts to Net investments in finance leases and loans receivable: (i) $8.1 million from Land, buildings and improvements — net lease and other and (ii) $1.8 million from Accumulated depreciation and amortization. We recognized an aggregate Gain on sale of real estate, net, of $4.6 million during the six months ended June 30, 2026 related to this transaction. This property was sold in March 2026. As a result, the carrying value of Net investments in finance leases and loans receivable decreased by $11.0 million (Note 4, Note 14).

In May 2026, we reclassified a net-lease property located in Mt. Carmel, Illinois, to net investments in sales-type leases for $2.2 million on our consolidated balance sheets (based on the estimated purchase price) in accordance with ASC 842, Leases, since the property was expected to be sold to the tenant leasing the property, resulting in a lease modification. In connection with this transaction, we reclassified $2.9 million from net investments in direct financing leases, and recognized an aggregate Loss on sale of real estate, net, of $0.5 million during the six months ended June 30, 2026, reflecting a balance of $0.2 million within Accounts payable, accrued expenses and other liabilities for this investment. This property was sold in May 2026. As a result, the carrying value of Net investments in finance leases and loans receivable decreased by $2.2 million (Note 14).

Prior to the reclassifications of certain properties to net investments in sales-type leases, earnings from such investments were recognized in Lease revenues in the consolidated financial statements.

We generally invest in facilities that we believe are critical to a tenant’s business and therefore have a lower risk of tenant default. At both June 30, 2026 and December 31, 2025, no material balances of our finance receivables were past due. Other than the lease extension noted above under Net Investments in Direct Financing Leases, there were no material modifications of finance receivables during the six months ended June 30, 2026.

We evaluate the credit quality of our finance receivables utilizing an internal five-point credit rating scale, with one representing the highest credit quality and five representing the lowest. A credit quality of one through three indicates a range of investment grade to stable. A credit quality of four through five indicates a range of inclusion on the watch list to risk of default. The credit quality evaluation of our finance receivables is updated quarterly.


	Number of Tenants / Obligors at		Carrying Value at
Internal Credit Quality Indicator	June 30, 2026	December 31, 2025	June 30, 2026		December 31, 2025
1 – 3	16	17	$	757,963	$	762,969
4	9	9	444,275		448,007
5	—	—	—		—
			$	1,202,238	$	1,210,976