Acquired Intangible Assets and Liabilities (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Acquired Intangible Assets and Liabilities Disclosure [Abstract] |
|
| Schedule of Intangible Assets and Liabilities |
The following table summarizes the Company’s identified intangible assets and liabilities as of June 30, 2026 and December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Intangible assets: |
|
|
|
|
|
|
Acquired in-place lease value |
|
$ |
33,155 |
|
|
$ |
— |
|
Acquired above-market lease value |
|
|
7,228 |
|
|
|
— |
|
Accumulated amortization |
|
|
(1,984 |
) |
|
|
— |
|
Acquired lease intangible assets, net |
|
$ |
38,399 |
|
|
$ |
— |
|
Intangible liabilities: |
|
|
|
|
|
|
Acquired below-market lease value |
|
$ |
(13,219 |
) |
|
$ |
— |
|
Accumulated amortization |
|
|
93 |
|
|
|
— |
|
Acquired lease intangible liabilities, net |
|
$ |
(13,126 |
) |
|
$ |
— |
|
|
| Summary of Ground Lease Intangibles |
The following table summarizes the Company’s ground lease intangibles as of June 30, 2026 and December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
|
|
|
|
|
|
Acquired below-market ground lease intangibles, operating leases |
|
$ |
3,938 |
|
|
$ |
— |
|
Accumulated amortization |
|
|
(10 |
) |
|
|
— |
|
Acquired below-market ground lease intangibles, net |
|
$ |
3,928 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
Acquired above-market ground lease intangibles, finance lease |
|
$ |
66 |
|
|
$ |
— |
|
Accumulated amortization |
|
|
— |
|
|
|
— |
|
Acquired above-market ground lease intangibles, net |
|
$ |
66 |
|
|
$ |
— |
|
|
| Schedule of Amortization of Acquired In-place Lease Value, Above-/Below-market Ground Leases and Above-/Below-market Lease Values |
Amortization pertaining to acquired in-place lease value, above-/below-market ground leases and above-/below-market lease values is summarized below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30, |
|
|
Six Months
Ended June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Amortization recorded as amortization expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquired in-place lease value |
|
$ |
1,812 |
|
|
$ |
— |
|
|
$ |
1,812 |
|
|
$ |
— |
|
Amortization recorded as a (reduction) increase to property
operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Above-market ground lease, finance lease |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Below-market ground leases, operating leases |
|
|
10 |
|
|
|
— |
|
|
|
10 |
|
|
|
— |
|
Net property operating expense increase |
|
$ |
10 |
|
|
$ |
— |
|
|
$ |
10 |
|
|
$ |
— |
|
Amortization recorded as a (reduction) increase to rental
revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquired above-market leases |
|
$ |
(172 |
) |
|
$ |
— |
|
|
$ |
(172 |
) |
|
$ |
— |
|
Acquired below-market leases |
|
|
93 |
|
|
|
— |
|
|
|
93 |
|
|
|
— |
|
Net rental revenue reduction |
|
$ |
(79 |
) |
|
$ |
— |
|
|
$ |
(79 |
) |
|
$ |
— |
|
|
| Schedule of Estimated Amortization of Intangible Lease Assets and Liabilities |
Estimated amortization of the respective intangible lease assets and liabilities as of June 30, 2026 for each of the five succeeding years and thereafter is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired
In-Place
Leases |
|
|
Above-
Market
Leases |
|
|
Below-
Market
Leases |
|
|
Above-
Market Ground
Lease |
|
|
Below-
Market Ground
Leases |
|
2026 (remainder of the year) |
|
|
4,353 |
|
|
|
517 |
|
|
|
(280 |
) |
|
|
(1 |
) |
|
|
29 |
|
2027 |
|
|
4,381 |
|
|
|
1,033 |
|
|
|
(560 |
) |
|
|
(1 |
) |
|
|
57 |
|
2028 |
|
|
3,762 |
|
|
|
975 |
|
|
|
(552 |
) |
|
|
(1 |
) |
|
|
57 |
|
2029 |
|
|
3,341 |
|
|
|
955 |
|
|
|
(539 |
) |
|
|
(1 |
) |
|
|
57 |
|
2030 |
|
|
2,981 |
|
|
|
893 |
|
|
|
(539 |
) |
|
|
(1 |
) |
|
|
57 |
|
Thereafter |
|
|
12,525 |
|
|
|
2,683 |
|
|
|
(10,656 |
) |
|
|
(61 |
) |
|
|
3,671 |
|
Total |
|
$ |
31,343 |
|
|
$ |
7,056 |
|
|
$ |
(13,126 |
) |
|
$ |
(66 |
) |
|
$ |
3,928 |
|
|