Investments in Real Estate (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Real Estate [Abstract] |
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| Summary of Real Estate Activity |
Real estate activity for the six months ended June 30, 2026 is composed of the following:
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Cost |
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Balance - beginning of year |
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$ |
1,206,716,000 |
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Acquisitions (a) |
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307,221,000 |
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Improvements |
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92,000 |
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Provisions for impairment |
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(1,783,000 |
) |
Balance - end of period |
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$ |
1,512,246,000 |
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Accumulated depreciation |
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Balance - beginning of year |
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$ |
(115,945,000 |
) |
Depreciation expense |
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(16,784,000 |
) |
Balance - end of period |
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$ |
(132,729,000 |
) |
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Net book value - end of period |
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$ |
1,379,517,000 |
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(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.
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| Summary of Properties Acquired Through Operating Partnership |
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:
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Mortgage assumption |
Date |
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Properties Acquired |
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Acquisition relative fair value |
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Amount |
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Fixed interest rate |
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Maturity date |
March 20, 2026 |
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16 |
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$ |
68,364,000 |
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$ |
38,457,000 |
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4.20% |
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March 1, 2028 |
March 26, 2026 |
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23 |
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$ |
90,886,000 |
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$ |
51,435,000 |
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4.42% |
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September 1, 2028 |
June 11, 2026 |
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12 |
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$ |
55,740,000 |
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$ |
20,000,000 |
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2.90% |
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June 11, 2026 |
June 25, 2026 |
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28 |
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$ |
118,217,000 |
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$ |
68,800,000 |
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3.52% |
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September 11, 2026 |
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| Summary of Allocation of Purchase Price |
An allocation of the purchase price, including acquisition costs, for all acquisitions during the six months ended June 30, 2026 is as follows:
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Land |
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$ |
58,833,000 |
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Building |
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232,628,000 |
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Building and site improvements |
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15,760,000 |
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Lease in-place intangible assets |
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28,456,000 |
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Lease above-market intangible assets |
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1,207,000 |
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Below-market debt |
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3,183,000 |
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340,067,000 |
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Liabilities assumed: |
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Lease below-market intangible liabilities |
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(4,495,000 |
) |
Purchase price (including acquisition costs) |
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$ |
335,572,000 |
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| Schedule of Rental Revenue |
Rental revenue for the three and six months ended June 30, 2026 and June 30, 2025 is comprised of the following:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Base rents |
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$ |
21,279,000 |
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$ |
18,804,000 |
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$ |
40,336,000 |
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$ |
37,328,000 |
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Tenant reimbursables |
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2,286,000 |
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2,245,000 |
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4,989,000 |
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4,845,000 |
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Straight-line rent adjustments |
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228,000 |
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201,000 |
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493,000 |
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435,000 |
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Above/below market lease amortization, net |
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593,000 |
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626,000 |
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1,195,000 |
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1,236,000 |
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Lease termination income |
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1,295,000 |
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- |
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1,977,000 |
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- |
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Total rental revenue |
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$ |
25,681,000 |
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$ |
21,876,000 |
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$ |
48,990,000 |
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$ |
43,844,000 |
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| Schedule of Percentage of Contractual Base Rents |
The following tenants contributed more than 10% of contractual base rents during the six months ended June 30, 2026:
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Tenant |
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% of total base rents |
Walgreens |
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18.3% |
Dollar General |
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15.1% |
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