SALES OF PROPERTIES, PROPERTY HELD-FOR-SALE AND IMPAIRMENT LOSS

6 Months Ended

Jun. 30, 2026

SALES OF PROPERTIES, PROPERTY HELD-FOR-SALE AND IMPAIRMENT LOSS

SALES OF PROPERTIES, PROPERTY HELD-FOR-SALE AND IMPAIRMENT LOSS

NOTE 5 – SALES OF PROPERTIES, PROPERTY HELD-FOR-SALE AND IMPAIRMENT LOSS

Sales of Properties

The following table details the Company’s sales of real estate during the six months ended June 30, 2026 and 2025 (amounts in thousands):


						Gross			Gain on Sale of
Description of Property		City, State		Date Sold		Sales Price			Real Estate, Net
Vacant retail property		Cary, North Carolina		March 13, 2026		$	6,000		$	2,518
Havertys retail property		Newport News, Virginia		March 31, 2026			4,200			1,358
Advance Auto Parts retail property		South Euclid, Ohio		April 16, 2026			1,483			118
Multi-tenant retail property		Champaign, Illinois		May 5, 2026			7,498			3,326
Multi-tenant retail property		El Paso, Texas		June 1, 2026			17,500			9,989
Totals for the six months ended June 30, 2026						$	36,681	(a)	$	17,309	(b)


Land and improvements (c)		Lakewood, Colorado		January 16, 2025		$	400		$	(44)	(c)
Hooters restaurant property		Concord, North Carolina		January 21, 2025			3,253			1,154
Multi-tenant retail stores (c)		Lakewood, Colorado		June 23, 2025			17,900			3,276	(c)
Total Wine retail property		Greensboro, North Carolina		June 25, 2025			4,709			2,232
La-Z-Boy retail property		Gurnee, Illinois		June 27, 2025			4,368			1,023
Totals for the six months ended June 30, 2025						$	30,630	(d)	$	7,641	(e)

(a)	In connection with these sales, the Company paid off mortgages in an aggregate of $9,066.

(b)	As a result of these sales, the Company wrote-off, as a reduction to Gain on sale of real estate, net, an aggregate of $414 of unbilled rent receivables, $172 of net unamortized intangible lease assets and liabilities and $276 of other assets and receivables.

(c)	These parcels were part of a property which was owned by a consolidated joint venture in which the Company held a 90% interest. The non-controlling interest’s share of the net gain on these sales was $968.

(d)	In connection with these sales, the Company paid off a $5,808 mortgage.

(e)	As a result of these sales, the Company wrote-off, as a reduction to Gain on sale of real estate, net, an aggregate of $620 of unbilled rent receivables, $16 of net unamortized intangible lease assets and liabilities and $527 of other assets and receivables.

Property Held-for-Sale

On May 12, 2026, the Company entered into a contract to sell a retail property located in Monroeville, Pennsylvania for $2,050,000. The buyer’s right to terminate the contract without penalty expired on June 22, 2026. At June 30, 2026, the Company classified the $1,054,000 net book value of the property’s land, building, improvements and the unamortized unbilled rent receivable balance as Property held-for-sale in the accompanying consolidated balance sheet. The property was sold on July 28, 2026, and the sale resulted in a gain of approximately $887,000, which will be recognized as Gain on sale of real estate, net, in the consolidated statements of income for the three and nine months ending September 30, 2026.

Impairment loss

On June 26, 2026, the Company entered into a contract to sell a retail property located in Chicago, Illinois for $5,700,000. The buyer’s right to terminate the contract without penalty expired July 21, 2026. At June 30, 2026, the Company re-measured the property’s net book value to its fair value based on the executed contract of sale (which was determined to be a Level 3 unobservable input in the fair value hierarchy, as discussed in Note 10). As a result, the Company recognized a $142,000 impairment loss on the consolidated statements of income for the three and six months ended June 30, 2026. The Company anticipates the property will be sold in August 2026 and the sale will result in a loss of approximately $280,000 which will be recognized as part of Gain on sale of real estate, net, in the consolidated statements of income for the three and nine months ending September 30, 2026.