We own interests in certain unconsolidated real estate investments with third parties and in CESH (prior to its dissolution in May 2026 (Note 3)). There have been no significant changes in our equity method investment policies from what was disclosed in the 2025 Annual Report.

We own equity interests in properties that are generally leased to companies through noncontrolling interests in partnerships and limited liability companies that we do not control but over which we exercise significant influence. The underlying investments are jointly owned with third parties. We account for these investments under the equity method of accounting. We accounted for our interest in CESH under the equity method because, as its advisor, we did not exert control over, but we did have the ability to exercise significant influence over, CESH (Note 3).

The following table sets forth our ownership interests in our equity method investments and their respective carrying values (dollars in thousands):


		Carrying Value at
Lessee/Fund/Description	Ownership Interest	June 30, 2026		December 31, 2025
Las Vegas Retail Complex (a) (b)	47.50%	$	250,514	$	250,567
Harmon Retail Corner (b)	15.00%	23,338		23,641
Kesko Senukai (c) (d)	70.00%	5,651		34,732
CESH (e)	N/A	—		1,238
		$	279,503	$	310,178

(b)This investment is reported using the hypothetical liquidation at book value model, which may be different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement.

(e)CESH sold its last property during the first quarter of 2026 (and was dissolved in May 2026). Prior to dissolution, we elected to account for our investment in CESH at fair value by selecting the equity method fair value option available under GAAP.

We received aggregate distributions of $89.3 million and $13.1 million from our unconsolidated real estate investments for the six months ended June 30, 2026 and 2025, respectively (including $81.2 million received from the Kesko Senukai jointly owned investment during the six months ended June 30, 2026, as described below). At June 30, 2026 and December 31, 2025, the aggregate unamortized basis differences on our unconsolidated real estate investments were $15.8 million and $15.1 million, respectively.

On June 10, 2021, we entered into an agreement to fund a construction loan of approximately $261.9 million (as of June 30, 2026) for a retail complex in Las Vegas, Nevada. The loan bears an interest rate of 6.0% through December 31, 2026, after which it increases to 8.0% through June 30, 2027 (which is the loan maturity date). The borrower retains additional one-year extension options. Through June 30, 2026, we funded $250.9 million. The outstanding principal on this loan was $245.9 million as of June 30, 2026.

On February 27, 2025, we exercised our option to purchase a 47.50% ownership interest in the partnership that owns the Las Vegas Retail Complex for $5.0 million. Effective as of that date, we began recognizing our proportionate share of revenues and expenses from this jointly owned investment.

Equity income from this investment (including interest income from the construction loan and our proportionate share of earnings from the 47.50% equity interest) was $7.4 million and $8.4 million for the six months ended June 30, 2026 and 2025, respectively, which was recognized within Earnings from equity method investments in our consolidated statements of income.

On May 20, 2026, we acquired all of the real estate assets held by the Kesko Senukai jointly owned investment (the “Fund”) for approximately $206.6 million. These real estate assets comprise 19 retail and warehouse properties located in Lithuania, Latvia, and Estonia. The Fund continues to exist as an unconsolidated equity method investment, for which we still retain a 70% ownership interest (which primarily consists of cash and cash equivalents), as reflected in the table above.

In accordance with ASC 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets, the sale of assets to us was treated as a disposition for the Fund. As a result, we recognized our $49.9 million proportionate share of the gain on sale of real estate recorded by the Fund during the three and six months ended June 30, 2026, which was included in Earnings from equity method investments in our consolidated statements of income. In addition, we received a distribution of $81.2 million from the Fund during the three and six months ended June 30, 2026, reflecting our proportionate share of net proceeds from the transaction.

We deemed our purchase of the 19-property portfolio to be an asset acquisition, and capitalized the following amounts at acquisition: (i) $152.5 million to Land, buildings and improvements — net lease and other, and (ii) $54.1 million to In-place lease intangible assets and other (comprising $46.7 million of in-place lease intangible assets and $7.4 million of below-market ground lease intangibles) (Note 4). Effective as of the date of acquisition, we began recognizing Lease revenues from these properties.

In connection with this acquisition, we assumed a non-recourse mortgage loan with an aggregate principal balance of $97.8 million and an interest rate of the Euro Interbank Offered Rate (“EURIBOR”) + 2.10%. In conjunction with the assumption of this mortgage loan, we extended the loan maturity date from August 31, 2026 to April 30, 2031 (Note 10).