The Company leases industrial real estate to tenants under operating leases with a weighted-average remaining lease term of 3.6 years as of June 30, 2026. The leases typically provide for base rent and other charges to cover certain operating expenses. Some of our operating leases include options to extend the lease term. For purposes of determining the lease term and lease classification, we exclude these extension periods unless it is reasonably certain at lease commencement that the option will be exercised.

As of June 30, 2026, future base rent under non-cancelable leases were as follows, assuming no exercise of lease renewal options, if any:


($s in thousands)
2026 (1)	$	13,999
2027 (1)		25,930
2028 (1)		20,522
2029		17,694
2030		9,074
Thereafter		20,189
Total	$	107,408

(1) Excludes base rent of $876, $1,804, and $332, respectively, for 2026, 2027, and 2028, from a tenant that is not probable to collect.

As of June 30, 2026 and December 31, 2025, security deposit liabilities of $744,000 and $895,000, respectively, were included in accounts payable and accrued expenses on our consolidated balance sheets.

We are a lessee to a ground lease associated with an industrial property acquired in 2025. The lease terminates on March 31, 2059 with one ten-year renewal option. As of June 30, 2026, the ground lease had a remaining lease term of 32.8 years. The ROU asset and lease liability associated with the ground lease was calculated by discounting future ground lease payments at the Company's incremental borrowing rate at 6.74% as of the acquisition date.

The following table details the future lease payments due under the ground lease as of June 30, 2026:


($s in thousands)
2026	$	83
2027		166
2028		166
2029		170
2030		172
Thereafter		5,322
Total lease payment		6,079
Difference between undiscounted cash flows and discounted cash flow		(3,735	)
Total lease liability	$	2,344