Real Estate Dispositions, Held for Sale and Impairment Charges |
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| Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate Dispositions, Held for Sale and Impairment Charges | Real Estate Dispositions, Held for Sale, and Impairment Charges Real Estate Dispositions During the nine months ended September 30, 2026, we continued to execute our capital recycling program, under which we sell properties and redeploy proceeds to either fund property acquisitions in our target secondary growth markets, or repay outstanding debt. We expect to continue to execute our capital recycling plan and sell properties as reasonable disposition opportunities become available. We sold one property, located in Charlotte, North Carolina, and a portion of a land parcel, located in Ocala, Florida, during the nine months ended September 30, 2026, which are summarized in the table below (dollars in thousands):
Our property disposition during the nine months ended September 30, 2026 was not classified as discontinued operations because it did not represent a strategic shift in operations, nor will it have a major effect on our operations and financial results. Accordingly, the operating results of this property are included within continuing operations for all periods reported. The table below summarizes the components of operating income from the property disposed of during the three and nine months ended September 30, 2026 and 2025 (dollars in thousands):
(1)Includes a $1.9 million gain on sale of real estate, net, from one property sale. We sold two properties and completed the sale transaction related to one property during the nine months ended September 30, 2025. Real Estate Held for Sale At September 30, 2026, we did not have any properties classified as held for sale. At December 31, 2025, we had one property classified as held for sale, located in Charlotte, North Carolina, and a portion of a land parcel held for sale, located in Ocala, Florida, each of which have been subsequently sold as described above. The table below summarizes the components of the assets and liabilities held for sale at December 31, 2025, reflected on the accompanying condensed consolidated balance sheets (dollars in thousands):
Impairment Charges We evaluated our portfolio for triggering events to determine if any of our held and used assets were impaired during the nine months ended September 30, 2026 and identified one held and used asset, located in Lake Mary, Florida, which was impaired by $6.5 million. We reassessed the holding period of the asset, as circumstances surrounding future leasing assumptions when the asset becomes partially vacant in July 2027 changed due to slower leasing velocity in the market. In performing our impairment testing, as the undiscounted cash flows for this asset were below the carrying value, we evaluated the fair value of the asset using an internal discounted cash flow analysis, which resulted in us recognizing an impairment charge. We did not recognize any impairment charges on our held and used assets during the nine months ended September 30, 2025. We recognized an impairment charge of $0.01 million on one held for sale asset, located in Oklahoma City, Oklahoma, during the nine months ended September 30, 2025. In performing our held for sale assessment, the carrying value of this asset was above the fair value, less costs of sale. As a result, we impaired this property to equal the fair market value less costs of sale.
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