v3.26.1
Real Estate
12 Months Ended
Jun. 30, 2026
Real Estate [Abstract]  
Real Estate

10. Real Estate

As part of its build-to-suit development initiatives, MBTS purchases certain land parcels. Contemporaneously with the land purchases, MBTS enters into commercial lease agreements, as a lessor, in respect to the land parcels and build-to-suit improvements to be constructed thereon. The leases commence upon substantial completion of the build-to-suit developments. The Company intends to sell the land and improvements with the attached leases at, or subsequent to, the respective lease commencement date.

On June 18, 2024, MBTS sold one of its developments for consideration totaling $7.8 million. At closing in 2024, real estate development was not complete for this project. There were two performance obligations identified for this transaction. The first performance obligation related to real estate development activities completed at the closing of the property sale where the transfer of title occurred for which the Company recognized $6.6 million of revenue in 2024. The second performance obligation related to the remaining construction activities to be completed over time after title transferred. At closing, MBTS funded two escrow accounts for construction completion. During the year-ended June 30, 2025, the performance obligation was satisfied, the related escrow accounts were released, and the remaining revenue associated with this sale of $1.2 million was recognized.

In December 2024, a development was completed and the lease commenced. In September 2025, the Company completed the sale of this property for consideration totaling $7.0 million. In March 2026, another development was completed and the lease commenced. In June 2026, the Company completed the sale of this property for consideration totaling $7.3 million. This property sale was to Monomoy Properties REIT, LLC a related party. Upon completion of each of the developments, the Company began to depreciate the assets over the expected useful life of 39 years. During the years ended June 30, 2026 and 2025, the Company recognized depreciation expense totaling approximately $0.1 million and $0.1 million, respectively, in connection with the assets. There was $0.2 million of lease income relating to lease payments on the assets for the year ended June 30, 2026. There was $0.3 million of lease income relating to lease payments for the year ended June 30, 2025.

During the years ended June 30, 2026 and 2025, the Company capitalized costs of $6.5 million and $3.4 million, respectively, within real estate assets, net on its consolidated balance sheet, representing the development and construction costs directly identifiable with the real estate projects.