Real Estate |
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| Acquisition And Disposition Of Properties And Discontinued Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate | 2. Real Estate The Company’s consolidated real estate is comprised of the following for the periods presented (in thousands):
Acquisitions
During the nine months ended September 30, 2026, the Company acquired the following consolidated REIT Portfolio retail properties (dollars in thousands):
(a) Cumulative purchase price includes capitalized transaction costs of $5.7 million. (b) Development land parcel acquired as part of the overall Henderson Avenue development project in Dallas, TX for $3.2 million, inclusive of transaction costs. (c) In connection with an acquisition in the third quarter, the Company recorded, as part of the purchase price allocation, a $5.3 million liability for certain pre-acquisition leasing matters affecting a portion of the property. This estimate is based on currently available information and is subject to change. The Company does not currently expect amounts in excess of this liability to be material.
For acquisitions completed during the period, the Company recorded identifiable intangible assets and intangible liabilities in the aggregate of approximately $31.9 million and $20.6 million, respectively. These intangibles are amortized over the remaining lease terms of the related leases, which ranged from approximately 1 to 50 years as of the respective acquisition dates. Refer to Note 6 for additional detail on the Company’s amortization of intangible assets and liabilities.
The Company determines the fair value of the individual components of real estate asset acquisitions primarily through calculating the “as-if vacant” value of a building, using an income approach, which relies significantly upon internally determined assumptions. The Company has determined that these estimates primarily rely on Level 3 inputs, which are unobservable inputs based on our own assumptions. The most significant assumptions used in calculating the “as-if vacant” value for acquisition activity during 2026 are as follows:
Dispositions
During the three and nine months ended September 30, 2026, the Company recognized gains on disposition and deconsolidation of properties of $0.8 million and $146.9 million, respectively.
The gain recognized during the nine months ended September 30, 2026 was primarily attributable to the February 2026 recapitalization of a seven-property open-air retail portfolio into two newly formed unconsolidated joint ventures. In connection with the transaction, the Company retained a 20% ownership interest in the joint ventures, which was measured at fair value upon deconsolidation and had an aggregate fair value of $87.1 million. The transaction resulted in the recognition of a gain on disposition and deconsolidation of $112.3 million at the transaction level, of which the Company's proportionate share was $22.1 million. In addition, the Company repaid $210.5 million of consolidated Investment Management property mortgage loans using proceeds from the transaction (Note 7).
Other significant dispositions during the nine months ended September 30, 2026 included: • the recapitalization of the Pinewood Square property, an open-air retail center located in Lake Worth, Florida, into a newly formed unconsolidated joint venture for $68.4 million and retained a 20% ownership interest, which was fair-valued at $13.6 million, resulting in the recognition of a $4.1 million gain on deconsolidation (Note 4); • the disposition of Landstown Commons for $102.0 million, 1964 Union Street for $2.6 million, New Towne Center for $23.5 million, and the parking garage condominium unit at 1035 Third Avenue for $8.3 million, which were consolidated Investment Management properties. These dispositions resulted in aggregate gains of $30.3 million during the nine months ended September 30, 2026; and • the disposition of 1525 W. Belmont Avenue, a REIT Portfolio property located in Chicago, Illinois for $4.2 million which generated a gain of $0.2 million during the three months ended September 30, 2026.
Properties Held for Sale
No properties were classified as held for sale as of September 30, 2026 and December 31, 2025.
Real Estate Under Development Real estate under development represents the Company’s consolidated properties that have not yet been placed into service and are undergoing substantial development or construction. Development activity for these properties during the periods presented is summarized below (dollars in thousands):
(a) Includes construction in progress at operating properties that remain in service during the construction period. (b) Transfers in for the period relate to the acquisition of development property 2310 N. Henderson Avenue (Note 2).
The number of properties in the table above refers to full-property development projects; however, certain projects represent only a portion of a property, and the capitalized costs and carrying value of these projects are included in the table above. As of September 30, 2026, consolidated REIT Portfolio development projects included 14 properties in the Henderson Avenue development project. |
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