v3.26.1
Real Estate, Net
 6 Months Ended
Jun. 30, 2026
Real Estate [Abstract]  
Real Estate, Net

Note 5 – Real Estate, Net

 

Real Estate Under Construction

 

The following table provides the activity of our Real estate under construction (amounts in thousands):

  

   June 30, 2026   December 31, 2025 
   (unaudited)     
Beginning balance  $57,838   $191,308 
Capitalized costs (1) (2)   1,186    50,628 
Placed in service (3)   (1,148)   (188,716)
Capitalized interest   —    4,618 
Ending balance  $57,876   $57,838 

 

 

(1)Includes development fees and employee reimbursement expenditures. See Note 4 – Related Party Arrangements for additional details regarding our transactions with related parties.

 

(2)Includes direct and indirect project costs to the construction and development of real estate projects, including but not limited to loan fees, property taxes, and insurance, incurred of less than $0.1 million and $2.3 million for the six months ended June 30, 2026 and the year ended December 31, 2025, respectively.

 

(3)During the six months ended June 30, 2026, we reclassified $1.1 million from Real estate under construction to Building and improvements ($1.0 million) and Furniture, fixtures and equipment ($0.1 million), in connection with certain phases of our 1000 First Avenue North, St Petersburg, Florida (“VIV”) and 1991 Main Street, Sarasota, Florida (“Aster & Links”) development projects, which reached substantial completion during 2025 and 2024, respectively.

 

  

Non-cash Disclosures

 

For the six months ended June 30, 2026, non-cash investing activity relating to the development of real estate totaled $0.7 million and is included in Building and improvements in our consolidated balance sheets. For the six months ended June 30, 2025, non-cash investing activity relating to the development of real estate totaled $11.6 million, of which $10.6 million was included in Real estate under construction in our consolidated balance sheets, (inclusive of unpaid development fees of $1.7 million and unpaid employee cost sharing and reimbursements of less than $0.1 million), and $1.0 million was included in Building and improvements in our consolidated balance sheets.

 

Depreciation Expense

 

Depreciation expense was $3.0 million and $1.8 million for the three months ended June 30, 2026 and 2025, respectively, and $6.1 million and $3.6 million for the six months ended June 30, 2026 and 2025, respectively, and is included in Depreciation and amortization on the consolidated statements of operations.