The Company acquires, owns, and manages primarily single-tenant, investment-grade net-leased real estate. The Company owned 436 properties in 38 states as of June 30, 2026. As of June 30, 2026, the Company’s portfolio was 98.2% leased and is occupied by 44 different primarily national investment-grade necessity-based tenants, and is additionally diversified by industry, geographic region, and lease term.

Real estate activity for the six months ended June 30, 2026 is composed of the following:


Cost
Balance - beginning of year	$	1,206,716,000
Acquisitions (a)		307,221,000
Improvements		92,000
Provisions for impairment		(1,783,000	)
Balance - end of period	$	1,512,246,000

Accumulated depreciation
Balance - beginning of year	$	(115,945,000	)
Depreciation expense		(16,784,000	)
Balance - end of period	$	(132,729,000	)

Net book value - end of period	$	1,379,517,000

(a)

Excludes amounts recorded as intangible lease assets and liabilities in connection with the allocation of the purchase price of acquired properties accounted for as asset acquisitions.

During the six months ended June 30, 2026, the Company, through the Operating Partnership, acquired the following properties via merger agreements with DSTs that were previously managed by the Sponsor on behalf of its investors:


				Mortgage assumption
Date	Properties Acquired	Acquisition relative fair value		Amount		Fixed interest rate	Maturity date
March 20, 2026	16	$	68,364,000	$	38,457,000	4.20%	March 1, 2028
March 26, 2026	23	$	90,886,000	$	51,435,000	4.42%	September 1, 2028
June 11, 2026	12	$	55,740,000	$	20,000,000	2.90%	June 11, 2026
June 25, 2026	28	$	118,217,000	$	68,800,000	3.52%	September 11, 2026

On March 25, 2026, the Company acquired a property for cash from an unaffiliated entity for a total purchase price, including acquisitions costs, of $2.4 million. Per the asset management agreement, the Company paid a 1.0% acquisition fee on

An allocation of the purchase price, including acquisition costs, for all acquisitions during the six months ended June 30, 2026 is as follows:


Land	$	58,833,000
Building		232,628,000
Building and site improvements		15,760,000
Lease in-place intangible assets		28,456,000
Lease above-market intangible assets		1,207,000
Below-market debt		3,183,000
		340,067,000
Liabilities assumed:
Lease below-market intangible liabilities		(4,495,000	)
Purchase price (including acquisition costs)	$	335,572,000

On June 5, 2026, the Company sold one property for cash to an unaffiliated entity for $1.0 million. No gain or loss was recorded on the sale of this property. This property was previously included in the assets related to real estate held for sale on the Company’s consolidated balance sheet.

The Company previously entered into separate sales contracts with individual third-parties to sell three of its properties. In connection with the execution of these contracts, the Company recorded the assets associated with these properties at the lower of (a) cost or (b) fair value less estimated costs to sell, which resulted in impairment charges during the year ended December 31, 2025, totaling $2.0 million related to two of these properties. Further, the sale for one of these properties closed in July 2026. As the actual closing costs for this property were higher than estimated in December 2025, the Company recorded an impairment charge of $0.1 million during the three months ended June 30, 2026. The carrying value of the third property in which the Company entered into a sales contract was below its fair value, therefore no impairment charge was recorded.

The estimated fair value of these properties was based upon the expected sales price from executed sales contracts and determined to be a Level 3 input within the fair value hierarchy. The estimation and evaluation of these impairment charges relies on judgments and assumptions made by management in determining the impairment charge to record. It is possible that such judgments and/or estimates will change; if this occurs, we may recognize additional impairment charges, or potential loss on sale, for these properties at the time the transaction closes.

Substantially all of the Company’s tenants are subject to net-lease agreements where the tenant is generally responsible for minimum monthly rent and actual property operating expenses incurred, including property taxes, insurance, and maintenance. In addition, certain of the Company’s tenants are subject to future rent increases based on fixed amounts or, in limited cases, increases in the consumer price index. In addition, certain leases provide for additional rent calculated as a percentage of the tenants’ gross sales above a specified level. The Company recorded no percentage rent revenue for the three and six months ended June 30, 2026 and 2025. Certain of the Company’s properties are subject to leases under which it retains responsibility for specific costs and expenses of the property. The Company’s leases typically provide the tenant one or more multi-year renewal options to extend their leases, subject to generally the same terms and conditions, including rent increases.

All lease-related income is reported as a single line item, rental revenue, in the condensed consolidated statements of operations and comprehensive income (loss). Rental revenue for the three and six months ended June 30, 2026 and June 30, 2025 is comprised of the following:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Base rents	$	21,279,000	$	18,804,000	$	40,336,000	$	37,328,000
Tenant reimbursables		2,286,000		2,245,000		4,989,000		4,845,000
Straight-line rent adjustments		228,000		201,000		493,000		435,000
Above/below market lease amortization, net		593,000		626,000		1,195,000		1,236,000
Lease termination income		1,295,000		-		1,977,000		-
Total rental revenue	$	25,681,000	$	21,876,000	$	48,990,000	$	43,844,000

As of June 30, 2026, the Company’s portfolio is occupied by 44 different primarily national investment-grade necessity-based tenants, and is additionally diversified by industry, geographic region, and lease term. The following tenants contributed more than 10% of contractual base rents during the six months ended June 30, 2026: