NOTE 4 – REAL ESTATE INVESTMENTS, NET AND INTANGIBLE REAL ESTATE ASSETS AND LIABILITIES, NET

Real estate investments, net, which consist of land, buildings and improvements leased to others subject to net operating leases and those utilized in the operations of Kerrow Restaurant Operating Business are summarized as follows:


(In thousands)	June 30, 2026			December 31, 2025
Land	$	1,532,635		$	1,499,059
Buildings and improvements		1,904,661			1,862,630
Equipment		136,118			135,943
Total gross real estate investments		3,573,414			3,497,632
Less: accumulated depreciation		(839,554	)		(816,992	)
Real estate investments, net		2,733,860			2,680,640
Intangible real estate assets, net		128,392			129,371
Total Real Estate Investments and Intangible Real Estate Assets, Net	$	2,862,252		$	2,810,011

During the six months ended June 30, 2026, the Company invested $85.5 million, including transaction costs, in 33 properties located in fifteen states, and allocated the investment as follows: $34.5 million to land, $41.7 million to buildings and improvements, and $9.3 million to intangible assets. There was no contingent consideration associated with these acquisitions. These properties are 100% occupied under net leases, with a weighted average remaining lease term of 10.2 years as of June 30, 2026. During the six months ended June 30, 2026, no properties were sold.

During the six months ended June 30, 2025, the Company invested $144.3 million, including transaction costs, in 47 properties located in seventeen states, and allocated the investment as follows: $70.4 million to land, $65.7 million to buildings and improvements, and $8.2 million to intangible assets. There was no contingent consideration associated with these acquisitions. These properties are 100% occupied under net leases, with a weighted average remaining lease term of 14.9 years as of June 30, 2025. During the six months ended June 30, 2025, no properties were sold.

The following tables detail intangible real estate assets and liabilities.


(In thousands)	June 30, 2026			December 31, 2025
Acquired in-place lease intangibles	$	193,714		$	184,508
Finance lease - right of use assets		13,989			14,040
Above-market leases		13,821			13,821
Lease incentives		10,253			10,205
Tenant improvements intangible		3,605			3,605
Direct lease costs		1,028			923
Total		236,410			227,102
Less: accumulated amortization		(108,018	)		(97,731	)
Intangible Real Estate Assets, Net	$	128,392		$	129,371


(In thousands)	June 30, 2026			December 31, 2025
Below-market leases	$	2,610		$	2,610
Less: Accumulated amortization		(1,915	)		(1,825	)
Intangible Real Estate Liabilities, Net	$	695		$	785

The following table details the value of in-place lease amortization included in depreciation and amortization expense, and above and below-market leases and lease incentives amortized as an adjustment to revenue.


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2026		2025		2026		2025
Acquired in-place lease intangibles	$	4,657	$	4,263	$	9,187	$	8,568
Above-market and below-market leases		240		256		469		523
Lease incentives		206		205		477		409
Total Lease Intangible Amortization	$	5,103	$	4,724	$	10,133	$	9,500

The following table presents the total weighted average amortization period remaining for our intangible real estate assets and liabilities at June 30, 2026.


(In years)
Acquired in-place leases			8.4
Above-market leases			5.9
Below-market leases			10.7
Lease incentives			10.0
Tenant improvement			12.7
Weighted Average Amortization Period of Intangible Real Estate Assets and Liabilities			8.5

The following table presents the estimated net impact during the next five years and thereafter related to the amortization of in-place lease intangibles, and above-market and below-market lease intangibles for properties held for investment.


(In thousands)	June 30,
2026 (Six months)	$	9,629
2027		17,240
2028		14,702
2029		12,422
2030		10,252
Thereafter		42,422
Total Future Amortization	$	106,667