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Real Estate and Intangible Assets
 9 Months Ended
Sep. 30, 2026
Real Estate [Abstract]  
Real Estate and Intangible Assets Real Estate and Intangible Assets
Real Estate

The following table sets forth the components of our investments in real estate as of September 30, 2026 and December 31, 2025, respectively, excluding real estate held for sale (dollars in thousands):
September 30, 2026December 31, 2025
Real estate:
Land (1)$152,052 $150,873 
Building and improvements1,217,829 1,183,036 
Tenant improvements57,750 56,536 
Accumulated depreciation(393,032)(359,513)
Real estate, net$1,034,599 $1,030,932 
(1)This amount includes $2,711 of land value subject to land lease agreements which we may purchase at our option for a nominal fee.

Real estate depreciation expense on building and tenant improvements was $11.4 million and $33.5 million, respectively, for the three and nine months ended September 30, 2026. Real estate depreciation expense on building and tenant improvements was $10.8 million and $31.1 million, respectively, for the three and nine months ended September 30, 2025.

Acquisitions

We acquired two industrial properties during the nine months ended September 30, 2026, and we acquired 19 industrial properties during the nine months ended September 30, 2025. The acquisitions are summarized below (dollars in thousands):

Nine Months Ended September 30, 2026
LocationAggregate Number of Properties (unaudited)Acquisition DateAggregate Square Footage (unaudited)Weighted Average Remaining Lease Term at Time of AcquisitionAggregate Purchase PriceAggregate Capitalized Acquisition Expenses
Newport News, VA1May 20, 2026153,890 5.9 years$23,004 $254 
Red Bud, IL1July 28, 2026146,650 8.4 years6,690 140 
2300,540 6.6 years$29,694 $394 

Nine Months Ended September 30, 2025
LocationAggregate Number of Properties (unaudited)Acquisition DateAggregate Square Footage (unaudited)Weighted Average Remaining Lease Term at Time of AcquisitionAggregate Purchase PriceAggregate Capitalized Acquisition Expenses
Houston, TX5February 19, 2025215,474 10.0 years$29,457 $207 
Dallas-Fort Worth, TX1March 28, 2025140,304 11.3 years44,268 268 
Germantown, WI1May 9, 2025303,991 19.4 years62,851 151 
Harrison Township, MI3June 25, 2025215,102 10.0 years16,491 241 
Cartersville, GA1September 30, 2025117,430 20.0 years12,195 56 
Ossian, IN1September 30, 2025263,756 20.0 years19,531 56 
Ligonier, IN1September 30, 2025159,277 20.0 years10,641 56 
Caro, MI4September 30, 202586,751 20.0 years5,823 58 
Chesterfield, MI1September 30, 202539,701 20.0 years4,747 57 
Cass City, MI1September 30, 202526,321 20.0 years1,901 55 
191,568,107 15.9 years$207,905 $1,205 

We determined the fair value of assets acquired and liabilities assumed related to the properties acquired during the nine months ended September 30, 2026 and 2025 as follows (dollars in thousands):

Nine Months Ended September 30, 2026Nine Months Ended September 30, 2025
Acquired assets and liabilitiesPurchase pricePurchase price
Land$2,039 $13,107 (1)
Building21,344 160,301 
Tenant Improvements1,448 2,293 
In-place Leases1,910 14,739 
Leasing Costs853 14,416 
Customer Relationships2,144 5,636 
Above Market Leases72 905 (2)
Below Market Leases(116)(3,492)(3)
Total Purchase Price$29,694 $207,905 

(1)The Dallas-Fort Worth, Texas property that we acquired is subject to a ground lease, therefore there is no land asset included on the condensed consolidated balance sheets.
(2)This amount includes $838 of loans receivable included in Other assets on the condensed consolidated balance sheets related to sale-leaseback acquisitions.
(3)This amount includes $1,627 of prepaid rent included in Other liabilities on the condensed consolidated balance sheets related to sale-leaseback acquisitions.
Land Acquisition

On June 25, 2026, we acquired a parcel of unimproved land adjacent to our Clintonville, Wisconsin property for $0.7 million. The land will be used to construct an approximately 86,000 square foot expansion of the current facility.

Future Lease Payments

Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for the three months ending December 31, 2026 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):

YearTenant Lease Payments
Three Months Ending December 31, 2026$34,717 
2027130,293 
2028122,038 
2029116,085 
2030107,776 
203199,708 
Thereafter510,402 

In accordance with the lease terms, substantially all operating expenses are required to be paid by the tenant directly, or reimbursed to us by the tenant; however, we would be required to pay operating expenses on the respective properties in the event the tenants fail to pay them.

Lease Revenue Reconciliation

The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three and nine months ended September 30, 2026 and 2025, respectively (dollars in thousands):

For the three months ended September 30,
Lease revenue reconciliation20262025$ Change% Change
Fixed lease payments$36,813 $35,464 $1,349 3.8 %
Variable lease payments5,606 5,377 229 4.3 %
$42,419 $40,841 $1,578 3.9 %

For the nine months ended September 30,
Lease revenue reconciliation20262025$ Change% Change
Fixed lease payments$112,450 $102,240 $10,210 10.0 %
Variable lease payments15,867 15,635 232 1.5 %
$128,317 $117,875 $10,442 8.9 %

Sales-Type Leases

There was no sales-type lease activity in the three and nine months ended September 30, 2026. During the nine months ended September 30, 2025, we had one lease classified as a sales-type lease. We recorded a sales-type lease receivable of $18.5 million in the condensed consolidated balance sheets, net of $0.02 million in allowance for credit loss. For the nine months ended September 30, 2025, the interest income earned from the sales-type lease of $0.5 million was included in other income in the condensed consolidated statements of operations. There was no interest income earned from sales-type leases in the three months ended September 30, 2025. In developing the expected credit loss, we reviewed the tenant’s credit rating,
which was AA- stable, performed a collectability analysis, and confirmed they were current on payments as of September 30, 2025.

On April 1, 2025, the tenant exercised their purchase option provided in their lease agreement with us. The sale transaction was completed on April 30, 2025, resulting in the realization of the sales-type lease receivable from the condensed consolidated balance sheets. Refer to Note 4, “Real Estate Dispositions, Held for Sale, and Impairment Charges” for additional detail.

Intangible Assets

The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of September 30, 2026 and December 31, 2025, respectively, excluding real estate held for sale (dollars in thousands):

September 30, 2026December 31, 2025
Lease Intangibles Accumulated Amortization Lease IntangiblesAccumulated Amortization
In-place leases$111,538 $(74,202)$109,960 $(69,932)
Leasing costs109,348 (60,286)105,468 (55,214)
Customer relationships67,000 (42,158)65,190 (39,893)
$287,886 $(176,646)$280,618 $(165,039)
Deferred Rent Receivable/(Liability)Accumulated (Amortization)/Accretion Deferred Rent Receivable/(Liability)Accumulated (Amortization)/Accretion
Above market leases$11,915 $(10,480)$11,843 $(10,135)
Below market leases and deferred revenue(60,536)44,202 (57,930)40,739 

Total amortization expense related to in-place leases, leasing costs and customer relationship lease intangible assets was $4.0 million and $11.7 million, respectively, for the three and nine months ended September 30, 2026, and $4.5 million and $11.7 million, respectively, for the three and nine months ended September 30, 2025, and is included in depreciation and amortization expense in the condensed consolidated statements of operations and comprehensive income.

Total amortization related to above-market lease values was $0.1 million and $0.3 million for the three and nine months ended September 30, 2026, respectively, and $0.1 million and $0.4 million for the three and nine months ended September 30, 2025, respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income. Total amortization related to below-market lease values was $0.7 million and $3.5 million for the three and nine months ended September 30, 2026, respectively, and $1.7 million and $5.0 million for the three and nine months ended September 30, 2025, respectively, and is included in lease revenue in the condensed consolidated statements of operations and comprehensive income.

We acquired two industrial properties during the nine months ended September 30, 2026, and acquired 19 industrial properties during the nine months ended September 30, 2025. The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the nine months ended September 30, 2026 and 2025, were as follows:

Intangible Assets & LiabilitiesSeptember 30, 2026September 30, 2025
In-place leases7.418.2
Leasing costs7.418.2
Customer relationships11.122.9
Above market leases8.419.7
Below market leases5.918.4
All intangible assets & liabilities8.219.4