Land, Buildings and Improvements and Assets Held for Sale |
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| Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Land, Buildings and Improvements and Assets Held for Sale | Land, Buildings and Improvements and Assets Held for Sale Land, Buildings and Improvements Land and buildings leased to others, which are subject to operating leases, are summarized as follows (in thousands):
During the six months ended June 30, 2026, we reclassified a property classified as a net investment in sales-type lease within Net investments in finance leases to Land, buildings and improvements since an agreement to sell the property to its tenant was terminated. As a result, the carrying value of our Land, buildings and improvements increased by $16.2 million from December 31, 2025 to June 30, 2026 (Note 5). During the six months ended June 30, 2026, we recognized an impairment charge on one property, which reduced the carrying value of (i) Land, buildings and improvements by $6.3 million, (ii) In-place lease intangible assets and other by $1.4 million, and (iii) Below-market rent intangible liabilities, net by $0.6 million (Note 7). Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements subject to operating leases was $1.5 million and $4.3 million for the three months ended June 30, 2026 and 2025, respectively, and $2.9 million and $8.6 million for the six months ended June 30, 2026 and 2025, respectively. Dispositions of Properties During the six months ended June 30, 2026, we disposed of one property, which was classified as Land, buildings and improvements. As a result, the carrying value of our Land, buildings and improvements decreased by $8.2 million from December 31, 2025 to June 30, 2026 (Note 12). See the Assets Held for Sale, Net section below for a discussion of additional properties disposed of during the six months ended June 30, 2026. Leases Operating Lease Income Lease income related to operating leases recognized and included in the consolidated statements of operations is as follows (in thousands):
__________ (a)Includes (i) rent increases based on changes in the U.S. Consumer Price Index (CPI) and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services. Other Lease-Related Income Other lease-related income on our consolidated statements of operations included lease termination income of $0.9 million for the three months ended June 30, 2025, and $1.0 million and $1.7 million for the six months ended June 30, 2026 and 2025, respectively. In addition, other lease-related income on our consolidated statements of operations included income from a parking garage attached to one of our net-leased properties totaling $0.5 million and $1.0 million for the three and six months ended June 30, 2025, respectively. We sold this property in January 2026. We did not record Other lease-related income for the three months ended June 30, 2026. Assets Held for Sale, Net Below is a summary of our properties held for sale (in thousands):
As of December 31, 2025, we had four properties classified as held for sale. These properties were sold during the first quarter of 2026 (Note 12).
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