The following table sets forth the components of our investments in real estate as of June 30, 2026 and December 31, 2025, respectively, excluding real estate held for sale (dollars in thousands):


	June 30, 2026		December 31, 2025
Real estate:
Land (1)	$	153,385	$	150,873
Building and improvements	1,207,539		1,183,036
Tenant improvements	57,798		56,536
Accumulated depreciation	(381,606)		(359,513)
Real estate, net	$	1,037,116	$	1,030,932

Real estate depreciation expense on building and tenant improvements was $11.1 million and $22.1 million, respectively, for the three and six months ended June 30, 2026. Real estate depreciation expense on building and tenant improvements was $10.5 million and $20.3 million, respectively, for the three and six months ended June 30, 2025.

We acquired one industrial property during the six months ended June 30, 2026, and we acquired ten industrial properties during the six months ended June 30, 2025. The acquisitions are summarized below (dollars in thousands):


Six Months Ended June 30, 2026
Location	Aggregate Number of Properties (unaudited)	Acquisition Date	Aggregate Square Footage (unaudited)	Weighted Average Remaining Lease Term at Time of Acquisition	Aggregate Purchase Price		Aggregate Capitalized Acquisition Expenses
Newport News, VA	1	May 20, 2026	153,890	5.9 years	$	23,004	$	254
	1		153,890	5.9 years	$	23,004	$	254


Six Months Ended June 30, 2025
Location	Aggregate Number of Properties (unaudited)	Acquisition Date	Aggregate Square Footage (unaudited)	Weighted Average Remaining Lease Term at Time of Acquisition	Aggregate Purchase Price		Aggregate Capitalized Acquisition Expenses
Houston, TX	5	February 19, 2025	215,474	10.0 years	$	29,457	$	207
Dallas, TX	1	March 28, 2025	140,304	11.3 years	44,268		268
Germantown, WI	1	May 9, 2025	303,991	19.4 years	62,851		151
Harrison Township, MI	3	June 25, 2025	215,102	10.0 years	16,491		241
	10		874,871	14.3 years	$	153,067	$	867

We determined the fair value of assets acquired and liabilities assumed related to the properties acquired during the six months ended June 30, 2026 and 2025 as follows (dollars in thousands):


	Six Months Ended June 30, 2026		Six Months Ended June 30, 2025
Acquired assets and liabilities	Purchase price		Purchase price
Land	$	1,819	$	10,640	(1)
Building	16,500		117,074
Tenant Improvements	1,262		1,145
In-place Leases	1,254		10,376
Leasing Costs	544		11,595
Customer Relationships	1,741		4,285
Above Market Leases	—		67
Below Market Leases	(116)		(2,115)		(2)


Total Purchase Price	$	23,004	$	153,067

(1)The Dallas-Fort Worth, Texas property that we acquired is subject to a ground lease, therefore there is no land asset included on the condensed consolidated balance sheets.

(2)This amount includes $250 of prepaid rent included in Other liabilities on the condensed consolidated balance sheets related to sale-leaseback acquisitions.

On June 25, 2026, we acquired a parcel of unimproved land adjacent to our Clintonville, Wisconsin property for $0.7 million. The land will be used to construct an approximately 86,000 square foot expansion of the current facility.

Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for the six months ending December 31, 2026 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):

In accordance with the lease terms, substantially all operating expenses are required to be paid by the tenant directly, or reimbursed to us by the tenant; however, we would be required to pay operating expenses on the respective properties in the event the tenants fail to pay them.

The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three and six months ended June 30, 2026 and 2025, respectively (dollars in thousands):


	For the three months ended June 30,
Lease revenue reconciliation	2026		2025		$ Change		% Change
Fixed lease payments	$	38,911	$	34,328	$	4,583	13.4	%
Variable lease payments	5,078		5,205		(127)		(2.4)	%
	$	43,989	$	39,533	$	4,456	11.3	%


	For the six months ended June 30,
Lease revenue reconciliation	2026		2025		$ Change		% Change
Fixed lease payments	$	75,637	$	66,775	$	8,862	13.3	%
Variable lease payments	10,261		10,259		2		—	%
	$	85,898	$	77,034	$	8,864	11.5	%

There was no sales-type lease activity in the three and six months ended June 30, 2026. During the six months ended June 30, 2025, we had one lease classified as a sales-type lease. We recorded a sales-type lease receivable of $18.5 million in the condensed consolidated balance sheets, net of $0.02 million in allowance for credit loss. For the three and six months ended June 30, 2025, the interest income earned from sales-type leases of $0.1 million and $0.5 million, respectively, was included in other income in the condensed consolidated statements of operations. In developing the expected credit loss, we reviewed the tenant’s credit rating, which is AA- stable, performed a collectability analysis, and confirmed they were current on payments as of June 30, 2025.

On April 1, 2025, the tenant exercised their purchase option provided in their lease agreement with us. The sale transaction was completed on April 30, 2025, resulting in the realization of the sales-type lease receivable from the condensed consolidated balance sheets. Refer to see Note 4, “Real Estate Dispositions, Held for Sale, and Impairment Charges” for additional detail.

The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of June 30, 2026 and December 31, 2025, respectively, excluding real estate held for sale (dollars in thousands):


	June 30, 2026				December 31, 2025
	Lease Intangibles		Accumulated Amortization		Lease Intangibles		Accumulated Amortization
In-place leases	$	111,214	$	(72,768)	$	109,960	$	(69,932)
Leasing costs	107,670		(58,534)		105,468		(55,214)
Customer relationships	66,931		(41,356)		65,190		(39,893)
	$	285,815	$	(172,658)	$	280,618	$	(165,039)

	Deferred Rent Receivable/(Liability)		Accumulated (Amortization)/Accretion		Deferred Rent Receivable/(Liability)		Accumulated (Amortization)/Accretion
Above market leases	$	11,843	$	(10,364)	$	11,843	$	(10,135)
Below market leases and deferred revenue	(60,362)		43,477		(57,930)		40,739

Total amortization expense related to in-place leases, leasing costs and customer relationship lease intangible assets was $3.8 million and $7.7 million, respectively, for the three and six months ended June 30, 2026 and $3.8 million and $7.2 million, respectively, for the three and six months ended June 30, 2025, and is included in depreciation and amortization expense in the condensed consolidated statements of operations and comprehensive income.

Total amortization related to above-market lease values was $0.1 million and $0.2 million for the three and six months ended June 30, 2026, respectively, and $0.1 million and $0.2 million for the three and six months ended June 30, 2025, respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income. Total amortization related to below-market lease values was $1.2 million and $2.7 million for the three and six months ended June 30, 2026, respectively, and $1.6 million and $3.2 million for the three and six months ended June 30, 2025, respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income.

We acquired one industrial property during the six months ended June 30, 2026, and acquired ten industrial properties during the six months ended June 30, 2025. The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the six months ended June 30, 2026 and 2025, were as follows:


Intangible Assets & Liabilities	June 30, 2026	June 30, 2025
In-place leases	5.9	13.9
Leasing costs	5.9	13.9
Customer relationships	5.9	18.6
Above market leases	0.0	19.4
Below market leases	5.9	10.7
All intangible assets & liabilities	5.9	15.1