The Company acquires, owns, and manages net-leased properties with frontage. The leases are generally net leases, where the tenants are generally responsible for the payment of real estate taxes, insurance premiums and maintenance costs related to the leased property. The leases have been classified as operating leases and generally provide for limited increases in rent as a result of fixed increases, increases in CPI, or increases in tenant’s sales volume.

As of June 30, 2026 and December 31, 2025, the Company had a portfolio of 316 and 303 real estate properties, respectively. The average remaining lease term, excluding renewal options, for real estate properties owned by the Company as of June 30, 2026 and December 31, 2025 was approximately 6.9 years.

During the six months ended June 30, 2026, the Company acquired 27 properties for an aggregate purchase price (including acquisition costs) of $93.2 million. All of the properties acquired during the six months ended June 30, 2026, were leased at acquisition with an average remaining lease term of approximately 8.3 years. In addition, one property was replatted into two distinct properties.

During the year ended December 31, 2025, the Company acquired 32 properties for an aggregate purchase price of $125.4 million. All of the properties acquired during the year ended December 31, 2025, were leased at acquisition with an average remaining lease term of approximately 11.5 years.

The acquisitions were all accounted for as asset acquisitions. The Company allocated the purchase price of these properties to the fair values of the assets and liabilities assumed, which is summarized in the following table:


(in thousands)	June 30, 2026			December 31, 2025
Land	$	25,725		$	33,644
Buildings		51,933			71,455
Site improvements		5,014			7,178
Other assets		58			122
Intangible assets:
Above-market leases		3,248			2,560
In-place leases and origination costs		8,606			14,350
		94,584			129,309
Liabilities assumed:
Below-market leases intangible liabilities		(1,377	)		(3,745	)
Accounts payable and accrued liabilities		(33	)		(145	)
Purchase price (including acquisition costs)	$	93,174		$	125,419

During the six months ended June 30, 2026, the Company sold 15 real estate properties for $32.5 million. The Company received net proceeds of $31.1 million from the property sales, after paying closing costs of $1.4 million and recorded a gain on sale of $3.3 million. The aggregate cost and associated accumulated depreciation and amortization of the properties sold, at the date of sale, was $28.7 million and $0.9 million, respectively.

During the year ended December 31, 2025, the Company sold 36 real estate properties for $78.1 million. The Company received net proceeds of $73.8 million from the property sales, including $9.0 million of mortgage loans receivable, after paying closing costs of $4.3 million and recorded a gain on sale of $7.0 million. The aggregate cost and associated accumulated depreciation and amortization of the properties sold, at the date of sale, was $78.4 million and $11.6 million, respectively.

During the year ended December 31, 2025, the Company received proceeds for the expropriation from the state for a portion of real estate from two properties for $5.4 million. The Company received net proceeds of $5.0 million from the expropriation from the state, after paying closing costs of $0.4 million and recorded a gain on sale of $4.7 million. The aggregate cost of the portion of properties that was expropriated was $0.3 million.

During the year ended December 31, 2025, the Company sold a partial interest in one real estate property for $2.8 million. The company received net proceeds of $2.6 million from the sale, including $2.2 million of mortgage loan receivable, after paying closing costs of $0.2 million and recorded a gain on sale of $0.2 million. The aggregate cost of the partial interest, at the date of the sale was $2.4 million.

The depreciation expense on real estate held for investment was as follows:


	For the three months ended June 30,				For the six months ended June 30,
(in thousands)	2026		2025		2026		2025
Depreciation	$	4,125	$	3,692	$	7,865	$	7,350

The following table summarizes amounts reported as rental revenues on the accompanying condensed consolidated statements of operations and comprehensive income (loss):


	For the three months ended June 30,						For the six months ended June 30,
(in thousands)	2026			2025			2026			2025
Rental revenues:
Contractual rental amounts billed	$	15,970		$	15,518		$	31,740		$	30,538
Reimbursable income		2,042			2,441			4,109			4,100
Percentage rent		29			146			63			180
Other operating income		203			97			495			216
Adjustment to recognize contractual rental amounts on a straight-line basis		22			286			456			408
Above/below market lease amortization, net		(457	)		(941	)		(1,078	)		(1,652	)
Total rental revenues	$	17,809		$	17,547		$	35,785		$	33,790

Total estimated future minimum rents to be received under non-cancelable leases in effect as of June 30, 2026, are as follows:


(in thousands)	June 30, 2026
Remainder of 2026	$	33,398
2027		64,035
2028		59,145
2029		54,523
2030		49,456
Thereafter		271,985
	$	532,542

Since lease renewal periods are exercisable at the option of the tenant, the above amounts only include future lease payments due during the initial lease terms. Such amounts exclude any potential variable rent increases that are based on changes in the CPI or future variable rents which may be received under the leases based on a percentage of the tenant’s gross sales.