The Company is subject, from time to time, to various types of third-party legal claims or litigation that arise in the ordinary course of business, including, but not limited to, property loss claims, personal injury or other damages resulting from contact with the Company's properties. These claims and lawsuits and any resulting damages are generally covered by the Company's insurance policies. The Company accrues for legal costs associated with loss contingencies when these costs are probable and reasonably estimable. While the resolution of these matters cannot be predicted with certainty, based on currently available information, management does not expect that the final outcome of any pending claims or legal proceedings will have a material adverse effect on the financial condition, results of operations or cash flows of the Company.

In April 2023, the Company formed a wholly-owned captive insurance company (the "Captive"), which provides insurance coverage for all losses below the deductibles of the Company's third-party liability insurance policies relating to wind, flood, named windstorm, earthquake, fire, and other property-related perils. The Company formed the Captive as part of its overall risk management program and to stabilize insurance costs, manage exposures, and recoup expenses through the function of the captive program. In January 2025, the Captive began underwriting the first layer of general liability insurance. An actuarial analysis is performed to estimate future projected claims, related deductibles, and projected expenses necessary to fund associated risk management programs. The Captive generally establishes annual premiums based on projections derived from the past loss experience. The Captive is capitalized in accordance with the applicable regulatory requirements.


	Six months ended June 30
		2026		2025
Balance at the beginning of the period		$	300	$	820
Incurred related to:
Current year		122		334
Prior years		—		22
Total incurred		122		356
Paid related to:
Current year		(1)		(90)
Prior years		(29)		(426)
Total paid		(30)		(516)
Balance at the end of the period		$	392	$	660

The land underlying West Ashley Station is subject to a long-term ground lease whereby the Company, as lessee, is required to pay fixed and variable rent. On June 10, 2025, the Company recognized a finance lease ROU asset of $8,965, inclusive of an initial fair value adjustment of $2,008, and related finance lease liability of $10,973. The ground lease expires in January 2092.

For operating and finance leases, the discount rate applied to initially measure each ROU asset and lease liability is based on the Company's incremental borrowing rate ("IBR"), as the rates implicit in the lease are not readily determinable. The Company utilizes a market-based approach to estimate an IBR for each lease, which generally considers market-based interest rates and publicly available data for instruments with similar characteristics. The Company also considers adjustments, as needed, related to tenor, credit spreads, and credit ratings, if not fully incorporated by the aforementioned data sets.


		As of
	Balance Sheet Caption	June 30, 2026			December 31, 2025
Operating lease ROU assets	Deferred costs and other assets, net	$	2,683		$	2,683
Operating lease ROU accumulated amortization	Deferred costs and other assets, net	$	(1,302)		$	(1,144)
Operating lease liabilities	Other liabilities	$	(1,921)		$	(2,129)

Finance lease ROU asset	Building and other improvements	$	8,965		$	8,965
Finance lease ROU accumulated amortization	Accumulated depreciation	$	(142)		$	(75)
Finance lease liability	Debt, net	$	(11,184)		$	(11,082)

Weighted-average remaining lease term - Operating leases		4.0 years			4.5 years
Weighted-average remaining lease term - Finance lease		65.6 years			66.1 years
Weighted-average discount rate - Operating leases		4.48		%	4.48		%
Weighted-average discount rate - Finance lease		6.80		%	6.80		%


	Statement of Operations Expense Caption	Three months ended June 30				Six months ended June 30
		2026		2025		2026		2025
Operating lease costs:
Minimum lease cost	General and administrative	$	108	$	108	$	216	$	216
Variable lease cost	General and administrative	$	98	$	68	$	169	$	157


Finance lease costs:
Amortization of ROU asset	Depreciation and amortization	$	33	$	8	$	67	$	8
Interest on lease liability	Interest expense, net	$	189	$	43	$	377	$	43
Variable lease cost	Property operating	$	36	$	8	$	74	$	8


	Future Minimum Lease Payments
Scheduled minimum payments by year:	Operating Leases		Finance Lease
Remaining 2026	$	262	$	275
2027	529		578
2028	522		605
2029	493		605
2030	293		605
Thereafter	—		71,211
Total expected minimum lease obligation	2,099		73,879
Less: Amount representing interest (a)	(178)		(62,695)
Present value of net minimum lease payments	$	1,921	$	11,184