v3.26.3
Real Estate (Tables)
 9 Months Ended
Sep. 30, 2026
Real Estate [Abstract]  
Schedule of Asset Acquisition

During the nine months ended September 30, 2026, the Company acquired the following operating properties, through direct asset acquisitions (in thousands):

 

 

 

 

 

 

Purchase Price

 

 

 

 

Property Name

 

Location

 

Month Acquired

 

Cash

 

 

GLA*

 

Pompano Marketplace (1)

 

Pompano Beach, FL

 

Jul-26

 

$

53,078

 

 

 

239

 

Sunshine Plaza

 

Fort Lauderdale, FL

 

Jul-26

 

 

55,715

 

 

 

241

 

North Haven Leasehold Interest

 

North Haven, CT

 

Aug-26

 

 

8,539

 

 

 

-

 

 

 

 

 

 

$

117,332

 

 

 

480

 

* Gross leasable area (“GLA”)

 

(1)
The Company had a mortgage receivable of $35.0 million related to this property, which was repaid by the seller at closing.

 

During the nine months ended September 30, 2025, the Company acquired the following operating properties, through direct asset acquisitions or consolidation due to change in control resulting from the purchase of additional interests in certain operating properties previously held in an unconsolidated joint venture (in thousands):

 

 

 

 

 

 

 

 

 

Purchase Price

 

 

 

 

Property Name

 

Location

 

Month Acquired

 

Cash

 

 

Debt

 

 

Other

 

 

Total

 

 

GLA

 

Markets at Town Center (1)

 

Jacksonville, FL

 

Jan-25

 

$

108,238

 

 

$

-

 

 

$

-

 

 

$

108,238

 

 

 

254

 

College Park Land (2)

 

Las Vegas, NV

 

Jan-25

 

 

12,746

 

 

 

-

 

 

 

1,428

 

 

 

14,174

 

 

 

-

 

Francisco Center Land (2)

 

Las Vegas, NV

 

Jan-25

 

 

11,588

 

 

 

-

 

 

 

593

 

 

 

12,181

 

 

 

-

 

Tanasbourne Village (3) (4)

 

Hillsboro, OR

 

Aug-25

 

 

38,171

 

 

 

31,926

 

 

 

7,076

 

 

 

77,173

 

 

 

207

 

 

 

 

 

 

$

170,743

 

 

$

31,926

 

 

$

9,097

 

 

$

211,766

 

 

 

461

 

 

(1)
The Company had a mortgage receivable of $15.0 million related to this property, which was repaid by the seller at closing.
(2)
The Company acquired the fee interest in two properties under finance ground lease agreements through the exercise of a call option for an aggregate purchase price of $24.2 million. In addition, the Company had a mortgage receivable of $3.4 million, which was repaid by the seller at closing. This transaction also resulted in a decrease in Other assets of $26.2 million and a decrease in Other liabilities of $24.2 million on the Company’s Condensed Consolidated Balance Sheets related to the finance right-of-use assets and lease liabilities (included in Other). See Footnote 8 of the Notes to Condensed Consolidated Financial Statements for further details.
(3)
Other includes the Company’s previously held equity investment in the Prudential Investment Program and gain on change in control. The Company evaluated this transaction pursuant to ASC Topic 810 Consolidation. The Company recognized a gain on change in control of interest of $5.7 million resulting from the fair value adjustment associated with the Company’s previously held equity interest, which is included in Equity
in income of joint ventures, net on the Condensed Consolidated Statements of Income. The Company previously held an ownership interest of 15.0% in this property interest and acquired the remaining 85.0% interest in this operating property. See Footnote 4 of the Notes to the Condensed Consolidated Financial Statements.
(4)
The Company utilized an aggregate $37.8 million associated with Internal Revenue Code 26 U.S.C. §1031 sales proceeds.
Schedule of Purchase Price Allocation for Properties Acquired The purchase price allocation for properties acquired/consolidated during the nine months ended September 30, 2026 and 2025 were as follows (in thousands):

 

Allocation as of
September 30, 2026

 

 

Weighted Average Useful Life (in Years)

 

 

Allocation as of
September 30, 2025

 

 

Weighted Average Useful Life (in Years)

 

Land

$

31,995

 

 

n/a

 

 

$

58,526

 

 

n/a

 

Buildings

 

73,970

 

 

 

50.0

 

 

 

123,490

 

 

 

50.0

 

Building improvements

 

5,700

 

 

 

45.0

 

 

 

7,615

 

 

 

45.0

 

Tenant improvements

 

4,262

 

 

 

7.4

 

 

 

8,580

 

 

 

5.7

 

In-place leases

 

12,477

 

 

 

5.3

 

 

 

19,547

 

 

 

5.0

 

Above-market leases

 

1,355

 

 

 

9.3

 

 

 

1,063

 

 

 

5.5

 

Below-market leases

 

(12,427

)

 

 

23.7

 

 

 

(7,740

)

 

 

17.1

 

Mortgage fair value adjustment

 

-

 

 

 

-

 

 

 

500

 

 

0.8

 

Other assets

 

-

 

 

n/a

 

 

 

649

 

 

n/a

 

Other liabilities

 

-

 

 

n/a

 

 

 

(464

)

 

n/a

 

Net assets acquired

$

117,332

 

 

 

 

 

$

211,766

 

 

 

 
Summary of Disposition Activity

The table below summarizes the Company’s disposition activity relating to consolidated operating properties and parcels for the nine months ended September 30, 2026 and 2025 (dollars in millions):

 

 

Nine Months Ended September 30,

 

 

2026

 

 

2025

 

Aggregate sales price/gross fair value (1)

 

$

188.8

 

 

$

71.6

 

Gain on sale of properties (2)

 

$

106.5

 

 

$

43.5

 

Number of operating properties sold

 

 

3

 

 

 

2

 

Number of parcels sold

 

 

9

 

 

 

3

 

 

(1)
Includes $27.8 million and $10.9 million of Internal Revenue Code 26 U.S.C. §1031 proceeds held in escrow through sale of real estate interests as of September 30, 2026 and September 30, 2025, respectively.
(2)
Before noncontrolling interests of $1.0 million and $0.1 million for the nine months ended September 30, 2026 and 2025, respectively, and taxes of $0.4 million for the nine months ended September 30, 2025.

 

In addition, during 2026, the Company deconsolidated a joint venture that holds a development project and related entitlements, located in Daly City, CA, for which the Company is no longer the primary beneficiary after a reconsideration event due to outside partner capital contributions. This VIE is now accounted for as a preferred equity investment with a gross value of $48.7 million. The Company evaluated this transaction pursuant to the ASC Topic 810 Consolidation and as a result, no gain on change in control of interest was recognized as there was no fair value adjustment associated with the Company’s previously held controlling interest. See Footnotes 5 and 12 of the Notes to Condensed Consolidated Financial Statements for additional disclosure.