v3.26.3
Investments
 9 Months Ended
Sep. 30, 2026
Investments [Abstract]  
Investments Investments
The following table presents information about the number of investments in the Company’s real estate investment portfolio as of each date presented:
September 30, 2026December 31, 2025
Owned properties (1)
2,4122,140
Properties securing investments in mortgage loans (2)
157150
Ground lease interests1110
Total number of investments2,5802,300
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(1)Includes 12 and eight properties which are subject to leases accounted for as direct financing leases or loans as of September 30, 2026 and December 31, 2025.
(2)Properties secure 34 and 28 mortgage loans receivable as of September 30, 2026 and December 31, 2025, respectively.
The following table presents information about the gross investment value of the Company’s real estate investment portfolio as of each date presented:
(in thousands)September 30, 2026December 31, 2025
Real estate investments, at cost$7,564,455 $6,763,040 
Loans and direct financing lease receivables, net495,209 401,323 
Real estate investments held for sale, net18,863 2,635 
Total gross investments$8,078,527 $7,166,998 
Investments in 2026 and 2025
The following table presents information about the Company’s investment activity during the nine months ended September 30, 2026 and 2025:
Nine months ended September 30,
(Dollar amounts in thousands)20262025
Ownership type
(1)
(2)
Number of properties 303199
Investment allocation:
Land and improvements$299,482 $257,775 
Building and improvements543,813 575,253 
Intangible lease assets29,519 10,218 
Intangible lease liabilities(4,455)(970)
Construction in progress (3)
64,764 84,830 
Total investments (including acquisition costs) (4)
$933,123 $927,106 
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(1)During the nine months ended September 30, 2026, the Company acquired fee interests in 302 properties and acquired one property subject to a ground lease.
(2)During the nine months ended September 30, 2025, the Company acquired fee interests in 197 properties and acquired two properties subject to a ground lease.
(3)Represents amounts incurred at and subsequent to initial investment and includes $1.4 million and $2.8 million of capitalized interest expense during the nine months ended September 30, 2026 and 2025, respectively.
(4)Includes real property contributed by a third-party to the Operating Partnership in exchange for $36.6 million of OP Units.
During the nine months ended September 30, 2026 and 2025, the Company did not make any new investments that individually represented more than 5% of the Company’s total real estate investment portfolio.
Gross Investment Activity
During the nine months ended September 30, 2026 and 2025, the Company had the following gross investment activity:
(Dollar amounts in thousands)Number of
Investment
Locations		Dollar
Amount of
Investments
Gross investments, January 1, 20252,104$6,029,433 
Acquisitions of and additions to real estate investments199948,084 
Sales of investments in real estate(41)(81,857)
Provision for impairment of real estate (1)
(7,934)
Investments in loans receivable1381,508 
Principal collections on and settlements of loans and direct financing lease receivables(9)(30,143)
Other(4,656)
Gross investments, September 30, 20256,934,435 
Less: Accumulated depreciation and amortization (2)
(577,367)
Net investments, September 30, 20252,266$6,357,068 
Gross investments, January 1, 20262,300$7,166,998 
Acquisitions of and additions to real estate investments303946,249 
Sales of investments in real estate(34)(83,118)
Provision for impairment of real estate (3)
(33,227)
Investments in loans and direct financing lease receivables26133,770 
Principal collections on and settlements of loans and direct financing lease receivables(15)(36,431)
Change in provision for credit losses(3,453)
Other(12,262)
Gross investments, September 30, 20268,078,527 
Less: Accumulated depreciation and amortization (2)
(730,526)
Net investments, September 30, 20262,580$7,348,001 
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(1)During the nine months ended September 30, 2025, the Company identified and recorded provisions for impairment at 11 tenanted properties and two vacant properties.
(2)Includes $672.2 million and $523.1 million of accumulated depreciation as of September 30, 2026 and 2025, respectively.
(3)During the nine months ended September 30, 2026, the Company identified and recorded provisions for impairment at 11 tenanted properties and seven vacant properties.
Loans and Direct Financing Lease Receivables
As of September 30, 2026 and December 31, 2025, the Company had 34 and 28 mortgage loans receivable outstanding, respectively, and seven and three leases accounted for as loans, respectively, with an aggregate carrying amount of $494.7 million and $398.0 million, respectively. The maximum amount of loss due to credit risk is the Company's current principal balance of $494.7 million as of September 30, 2026.
The Company’s loans receivable portfolio as of September 30, 2026 and December 31, 2025 is summarized below (dollars in thousands): 
Principal Balance Outstanding
Loan Type
Monthly
Payment (1)
Number of Secured PropertiesEffective Interest RateStated Interest RateMaturity DateSeptember 30, 2026December 31, 2025
Mortgage (2)(3)
I/O28.80%8.00%2039$12,000 $12,000 
Mortgage (2)
I/O18.53%7.75%20392,500 2,500 
Mortgage (2)(3)
I/O697.82%7.33%203451,000 51,000 
Mortgage (2)(3)
I/O18.54%8.50%20261,525 1,525 
Mortgage (2)(3)
I/O28.33%8.33%2026994 994 
Mortgage (2)
I/O26.87%6.40%20362,520 2,520 
Mortgage (2)
I/O28.33%8.33%20262,389 2,389 
Mortgage (2)
I/O18.99%8.09%205135,000 35,000 
Mortgage (2)
I/O77.39%6.80%203635,474 35,474 
Mortgage (2)
I/O17.73%7.20%20362,470 2,470 
Mortgage (2)(3)
I/O—8.00%8.00%2040— 1,754 
Mortgage (2)
I/O37.00%7.00%20271,783 6,275 
Mortgage (2)
I/O18.30%8.25%2026760 760 
Mortgage (2)(3)
I/O48.64%8.05%203712,250 12,250 
Mortgage (2)(3)
I/O98.85%8.25%203725,993 25,993 
Mortgage (2)
I/O18.84%8.25%203811,400 10,200 
Mortgage (2)
I/O—10.19%9.50%2039— 10,300 
Mortgage (2)
I/O1410.00%8.65%204457,454 57,454 
Mortgage (2)(3)
I/O110.22%9.75%203415,000 15,000 
Mortgage (2)(3)
I/O—10.20%9.50%2039— 5,900 
Mortgage (2)
I/O18.00%8.00%2027900 900 
Mortgage (2)
I/O69.58%8.25%204423,649 23,649 
Mortgage (2)(3)
P+l17.50%7.50%20281,550 1,550 
Mortgage (2)
I/O19.72%8.00%204519,950 19,950 
Mortgage (2)
I/O210.93%9.00%204513,000 13,000 
Mortgage (2)
I/O18.06%7.25%20408,276 8,276 
Mortgage (2)
I/O19.92%9.25%20401,976 13,650 
Mortgage (2)
I/O39.54%8.25%204518,727 3,692 
Mortgage (2)
I/O110.19%9.50%20413,634 — 
Mortgage (2)
I/O29.21%8.00%204120,200 — 
Mortgage (2)
I/O110.30%9.60%20414,007 — 
Mortgage (2)
I/O69.12%8.50%204122,062 — 
Mortgage (2)
I/O39.93%9.25%204110,634 — 
Mortgage (2)
I/O27.50%7.50%20282,375 — 
Mortgage (2)
I/O38.31%7.95%203616,800 — 
Mortgage (2)
I/O18.63%8.25%2036261 — 
Mortgage (2)
I/O110.00%10.00%20336,800 — 
Leasehold interestsP+I8(4)(4)(4)49,386 21,541 
Net investment$494,699 $397,966 
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(1)I/O: Interest Only; P+I: Principal and Interest
(2)Loan requires monthly payments of interest with a balloon payment due at maturity.
(3)Loan allows for prepayments in whole or in part without penalty.
(4)These leasehold interests are accounted for as loans receivable as the lease for each property fails the applicable sale-leaseback accounting criteria. Lease end dates range from 2034 to 2051.
Scheduled principal payments due to be received under the Company’s loans receivable as of September 30, 2026 were as follows:
(in thousands)Loans Receivable
October 1 - December 31, 2026$6,694 
20274,004 
20285,374 
20291,584 
20301,727 
Thereafter475,316 
Total$494,699 
As of September 30, 2026 and December 31, 2025, the Company had $4.6 million and $4.4 million, respectively, of net investments accounted for as direct financing lease receivables. The components of the investments accounted for as direct financing lease receivables were as follows:
(in thousands)September 30, 2026December 31, 2025
Minimum lease payments receivable$19,597 $18,652 
Estimated unguaranteed residual value of leased assets559 559 
Unearned income from leased assets(15,592)(14,850)
Net investment$4,564 $4,361 
Scheduled future minimum non-cancelable base rental payments due to be received under the direct financing lease receivables as of September 30, 2026 were as follows:
(in thousands)Future Minimum
Base Rental
Payments
October 1 - December 31, 2026$147 
2027596 
2028624 
2029638 
2030652 
Thereafter16,940 
Total$19,597 
Allowance for Credit Losses
The Company utilizes a real estate loss estimate model (i.e., a RELEM model), which estimates losses on loans and direct financing lease receivables for purposes of calculating an allowance for credit losses. As of September 30, 2026 and December 31, 2025, the Company recorded an allowance for credit losses of $4.1 million and $1.0 million, respectively, which is recorded within loans and direct financing lease receivables, net on the Company's consolidated balance sheets. Changes in the Company’s allowance for credit losses are presented within change in provision for credit losses in the Company’s consolidated statements of operations.
For the nine months ended September 30, 2026 and 2025, the changes to the Company's allowance for credit losses were as follows:
(in thousands)Allowance for Credit Losses
Balance at January 1, 2025$896 
Current period provision for expected credit losses(1)
83 
Write-offs charged— 
Recoveries— 
Balance at September 30, 2025$979 
Balance at January 1, 2026$1,004 
Current period provision for expected credit losses(1)
3,453 
Write-offs charged(404)
Recoveries— 
Balance at September 30, 2026$4,053 
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(1)Changes in the allowance for credit losses were primarily attributable to changes in global and asset-specific assumptions in our credit loss model, as well as changes in the size of the Company's loans and direct financing lease receivables portfolio.
The Company considers the ratio of loan to value ("LTV") to be a significant credit quality indicator for its loans and direct financing lease portfolio. The following table presents information about the LTV of the Company's loans and direct financing lease receivables measured at amortized cost as of September 30, 2026:
Amortized Cost Basis by Origination YearTotal Amortized Cost Basis
(in thousands)2026202520242023Prior to 2023
LTV <60%$— $285 $— $— $54,904 $55,189 
LTV 60%-70%9,800 — — — 30,072 39,872 
LTV >70%120,601 65,693 98,708 11,400 107,800 404,202 
$130,401 $65,978 $98,708 $11,400 $192,776 $499,263 
Real Estate Investments Held for Sale
The Company periodically evaluates its portfolio of real estate investments and may elect to dispose of investments considering criteria including, but not limited to, tenant concentration, tenant credit quality, tenant operation type (e.g., industry, sector or concept), unit-level financial performance, local market conditions and lease rates, associated indebtedness and asset location. Real estate investments held for sale are expected to be sold within twelve months.
The following table shows the activity in real estate investments held for sale and intangible lease liabilities held for sale during the nine months ended September 30, 2026 and 2025.
(Dollar amounts in thousands)Number of PropertiesReal Estate InvestmentsIntangible Lease LiabilitiesNet Carrying Value
Held for sale balance, January 1, 20255$10,018 $— $10,018 
Transfers to held for sale classification44,805 — 4,805 
Sales(4)(8,577)— (8,577)
Transfers to held and used classification(2)(4,887)— (4,887)
Held for sale balance, September 30, 20253$1,359 $— $1,359 
Held for sale balance, January 1, 20261$2,635 $— $2,635 
Transfers to held for sale classification1038,358 (76)38,282 
Sales(5)(19,495)76 (19,419)
Transfers to held and used classification(1)(2,635)— (2,635)
Held for sale balance, September 30, 20265$18,863 $— $18,863 
Significant Concentrations
The Company did not have any tenants (including for this purpose, all affiliates of such tenants) whose rental revenue for the nine months ended September 30, 2026 or 2025 represented 10% or more of total rental revenue in the Company’s consolidated statements of operations.
The following table lists the state where the rental revenue from the properties in that state during the periods presented represented 10% or more of total rental revenue in the Company’s consolidated statements of operations:
Three months ended September 30,Nine months ended September 30,
State2026202520262025
Texas13.3%11.7%13.2%12.4%
Intangible Assets and Liabilities
Intangible assets and liabilities consisted of the following as of the dates presented:
September 30, 2026December 31, 2025
(in thousands)Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Intangible assets:
In-place leases$109,060 $47,828 $61,232 $88,145 $44,489 $43,656 
Intangible market lease assets10,652 4,826 5,826 11,072 6,607 4,465 
Total intangible assets$119,712 $52,654 $67,058 $99,217 $51,096 $48,121 
Intangible market lease liabilities$18,757 $4,828 $13,929 $15,521 $4,755 $10,766 
The remaining weighted average amortization period for the Company’s intangible assets and liabilities as of September 30, 2026, by category and in total, were as follows:

Years Remaining
In-place leases9.1
Intangible market lease assets14.0
Total intangible assets9.6
Intangible market lease liabilities10.4
The following table discloses amounts recognized within the consolidated statements of operations related to amortization of in-place leases, amortization and accretion of above- and below-market lease assets and liabilities, net and the amortization and accretion of above- and below-market ground leases for the periods presented:
Three months ended September 30,Nine months ended September 30,
(in thousands)2026202520262025
Amortization of in-place leases (1)
$2,033 $1,392 $6,252 $4,119 
Accretion of market lease intangibles, net (2)
(355)(18)(92)(36)
Accretion of above- and below-market ground lease intangibles, net (3)
(34)(32)(93)(97)
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(1)Reflected within depreciation and amortization expense.
(2)Reflected within rental revenue.
(3)Reflected within property expenses.
The following table provides the estimated amortization of in-place lease assets to be recognized as a component of depreciation and amortization expense for the next five years and thereafter:
(in thousands)In-Place Lease Assets
October 1 - December 31, 2026$1,883 
20277,023 
20286,253 
20295,984 
20305,539 
Thereafter34,550 
Total$61,232 
The following table provides the estimated net amortization of above- and below-market lease intangibles to be recognized as a component of rental revenue for the next five years and thereafter:
(in thousands)Above Market Lease AssetBelow Market Lease LiabilitiesNet Adjustment to Rental Revenue
October 1 - December 31, 2026$(131)$283 $152 
2027(511)1,146 635 
2028(502)1,048 546 
2029(484)1,015 531 
2030(470)937 467 
Thereafter(3,728)9,500 5,772 
Total$(5,826)$13,929 $8,103