v3.26.1
Leases
6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases

14. Leases

There are no tenants that make up greater than 10% of net rental income during the six months ended June 30, 2026.

The following table lists the tenants where the rental revenue from the tenants represented 10% or more of total rental income in the Company’s Consolidated Statements of Operations and Comprehensive Income (in thousands) for the six months ended June 30, 2025:

 

 

 

For the Six Months Ended June 30, 2025

 

Tenant

 

Rental Income

 

Neiman Marcus Group, LLC

 

$

1,201

 

Ground Lease

The Company has a ground lease situated in Durham County, North Carolina, with a subsidiary of OSL, an entity that may be deemed an affiliate of the Adviser through common beneficial ownership. The lease has a remaining term of 3 years and a discount rate of 4.6% and contains five one-year extension options. As of June 30, 2026, the carrying amount of the right-of-use asset is $0.4 million, and the lease liability is $(0.5) million.

The future minimum lease payments under the operating lease as of June 30, 2026 are as follows:

Years Ending December 31,

 

Minimum Lease
Payment

 

2026

 

$

104

 

2027

 

 

212

 

2028

 

 

217

 

Total undiscounted lease payments

 

 

533

 

Less: Present value discount

 

 

(79

)

Total lease liability

 

$

454

 

 

For the six months ended June 30, 2026 and 2025, the Company recognized lease expense of $0.1 million and $0.1 million, respectively, recorded on a straight-line basis over the lease term.