Investment Property

6 Months Ended

Jun. 30, 2026

Investment property consisted of the following amounts as of June 30, 2026 and December 31, 2025 (in thousands):


	June 30, 2026		December 31, 2025
Buildings and improvements (1)	$	4,287,550	$	4,250,871
Less: accumulated depreciation	(398,713)		(356,308)
Buildings and improvements, net	3,888,837		3,894,563
Land	1,080,049		1,033,885
Investment property, net	$	4,968,886	$	4,928,448

(1)Included in buildings and improvements was approximately $63.1 million and $86.5 million of construction-in-progress as of June 30, 2026 and December 31, 2025, respectively, primarily related to the Company’s development projects at several of the Company’s properties.

Recent Acquisitions of Investment Property

During the six months ended June 30, 2026, the Company acquired three assets for an aggregate net purchase price of $195.0 million exclusive of transaction costs and working capital reserves. The net purchase price for these acquisitions were allocated as follows (in thousands):


Property Name	Acquisition Date	Building and Improvements		Land		In-place Lease Intangibles		Out-of-Market Lease Intangibles, Net		Total
Tortona Logistics - Asset 3	3/17/2026	$	49,183	$	6,830	$	5,075	$	—	$	61,088
Junction One Retail Park	5/15/2026	$	38,921	$	25,054	$	6,585	$	432	$	70,992
Wicker Park	6/23/2026	$	22,156	$	40,834	$	12,473	$	(4,662)	$	70,801

Recent Dispositions of Investment Property

In February 2026, the Company sold the Promenade Shops at Briargate for a contract price of $150.7 million, exclusive of transaction costs and closing prorations. The Company acquired the Promenade Shops at Briargate in September 2019 for a contract purchase price of $93.2 million. The purchaser is not affiliated with the Company or its affiliates.

As of June 30, 2026, the cost basis and accumulated amortization related to lease intangibles are as follows (in thousands):


	Lease Intangibles
	In-Place Leases		Out-of-Market Lease Assets		Out-of-Market Lease Liabilities

Cost	$	575,302	$	28,828	$	(108,586)
Less: accumulated amortization	(210,228)		(12,501)		25,828
Net	$	365,074	$	16,327	$	(82,758)

As of December 31, 2025, the cost basis and accumulated amortization related to lease intangibles were as follows (in thousands):


	Lease Intangibles
	In-Place Leases		Out-of-Market Lease Assets		Out-of-Market Lease Liabilities

Cost	$	584,204	$	28,474	$	(107,964)
Less: accumulated amortization	(192,540)		(11,609)		25,407
Net	$	391,664	$	16,865	$	(82,557)

Amortization expense of in-place leases was $21.8 million and $13.6 million for the three months ended June 30, 2026 and 2025, respectively, which was recorded to depreciation and amortization on the condensed consolidated statements of operations and comprehensive income (loss). Net amortization of out-of-market leases resulted in an increase to rental revenue of $1.5 million and $1.1 million for the three months ended June 30, 2026 and 2025, respectively.

Amortization expense of in-place leases was $47.2 million and $27.1 million for the six months ended June 30, 2026 and 2025, respectively, which was recorded to depreciation and amortization on the condensed consolidated statements of operations and comprehensive income (loss). Net amortization of out-of-market leases resulted in an increase to rental revenue of $3.0 million and $2.2 million for the six months ended June 30, 2026 and 2025, respectively.

Anticipated amortization of the Company’s in-place leases and out-of-market leases, net for the period from July 1, 2026 through December 31, 2026 and for each of the years ending December 31, 2027 through December 31, 2031 are as follows (in thousands):


	In-Place Lease		Out-of-Market Leases, Net
July 1, 2026 through December 31, 2026	$	31,786	$	(2,821)
2027	$	57,454	$	(4,907)
2028	$	51,046	$	(4,278)
2029	$	38,582	$	(3,742)
2030	$	31,199	$	(3,634)
2031	$	25,642	$	(3,576)

Commercial Leases

The Company’s commercial leases are generally for terms of 15 years or less and may include multiple options to extend the lease term upon tenant election. The Company’s leases typically do not include an option to purchase. Generally, the Company does not expect the value of its real estate assets to be impacted materially at the end of any individual lease term, as the Company is typically able to re-lease the space and real estate assets tend to hold their value over a long period of time. Tenant terminations prior to the lease end date occasionally result in a one-time termination fee based on the remaining unpaid lease payments including variable payments and could be material to the tenant. Many of the Company’s leases have increasing minimum rental rates during the terms of the leases through escalation provisions. In addition, the majority of the Company’s leases provide for separate billings for variable rent, such as, reimbursements of real estate taxes, maintenance and insurance and may include an amount based on a percentage of the tenants’ sales. Total billings related to expense reimbursements from tenants for the three and six months ended June 30, 2026 were $16.6 million and $34.2 million, respectively, and for the three and six months ended June 30, 2025 were $12.3 million and $24.7 million, respectively, which are included in rental revenue on the condensed consolidated statements of operations and comprehensive income (loss).

The Company has entered into non-cancelable lease agreements with tenants for space. As of June 30, 2026, the approximate fixed future minimum rentals for the period from July 1, 2026 through December 31, 2026, for each of the years ending December 31, 2027 through 2031 and thereafter related to the Company’s commercial properties are as follows (in thousands):


	Fixed Future Minimum Rentals
July 1, 2026 through December 31, 2026	$	138,503
2027	274,320
2028	260,452
2029	228,088
2030	198,008
2031	169,374
Thereafter	768,618
Total	$	2,037,363

During the six months ended June 30, 2026 and 2025, the Company did not earn more than 10% of its revenue from any individual tenant.

The Company also enters into leases with tenants at its student housing properties, multifamily properties and self-storage properties. These leases generally have terms less than one year and do not contain options to extend, terminate or purchase, escalation clauses, or other such terms, which are common in the Company’s commercial leases.