| Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale |
Note 5—Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale The Company’s real estate assets consist of the following ($ in thousands): | | | | | | | | | As of | | | September 30, 2026 | | December 31, 2025 | Land and land improvements, at cost | | $ | 547,739 | | $ | 547,739 | Buildings and improvements, at cost | | | 196,101 | | | 193,232 | Less: accumulated depreciation | | | (56,872) | | | (52,222) | Total real estate, net | | $ | 686,968 | | $ | 688,749 | Real estate-related intangible assets, net | | | 201,363 | | | 204,016 | Real estate available and held for sale | | | — | | | 2,028 | Total real estate, net and real estate-related intangible assets, net and real estate available and held for sale | | $ | 888,331 | | $ | 894,793 |
Real estate-related intangible assets, net consist of the following items ($ in thousands): | | | | | | | | | | | | As of September 30, 2026 | | | Gross | | Accumulated | | Carrying | | | Intangible | | Amortization | | Value | Above-market lease assets, net(1) | | $ | 186,002 | | $ | (26,667) | | $ | 159,335 | In-place lease assets, net(2) | | | 70,445 | | | (29,101) | | | 41,344 | Other intangible assets, net | | | 750 | | | (66) | | | 684 | Total | | $ | 257,197 | | $ | (55,834) | | $ | 201,363 |
| | | | | | | | | | | | As of December 31, 2025 | | | Gross | | Accumulated | | Carrying | | | Intangible | | Amortization | | Value | Above-market lease assets, net(1) | | $ | 186,002 | | $ | (24,658) | | $ | 161,344 | In-place lease assets, net(2) | | | 70,445 | | | (28,463) | | | 41,982 | Other intangible assets, net | | | 750 | | | (60) | | | 690 | Total | | $ | 257,197 | | $ | (53,181) | | $ | 204,016 |
| (1) | Above-market lease assets are recognized during asset acquisitions when the present value of market rate rental cash flows over the term of a lease is less than the present value of the contractual in-place rental cash flows. Above-market lease assets are amortized over the non-cancelable term of the leases. |
| (2) | In-place lease assets are recognized during asset acquisitions and are estimated based on the value associated with the costs avoided in originating leases comparable to the acquired in-place leases as well as the value associated with lost rental revenue during the assumed lease-up period. In-place lease assets are amortized over the non-cancelable term of the leases. |
Real estate-related intangible liabilities, net consist of the following items ($ in thousands): | | | | | | | | | | | | As of September 30, 2026 | | | Gross | | Accumulated | | Carrying | | | Intangible | | Amortization | | Value | Below-market lease liabilities(1) | | $ | 68,618 | | $ | (7,154) | | $ | 61,464 |
| | | | | | | | | | | | As of December 31, 2025 | | | Gross | | Accumulated | | Carrying | | | Intangible | | Amortization | | Value | Below-market lease liabilities(1) | | $ | 68,618 | | $ | (6,529) | | $ | 62,089 |
| (1) | Below-market lease liabilities are recognized during asset acquisitions when the present value of market rate rental cash flows over the term of a lease exceeds the present value of the contractual in-place rental cash flows. Below-market lease liabilities are amortized over the non-cancelable term of the leases. |
The amortization of real estate-related intangible assets had the following impact on the Company’s consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025 ($ in thousands): | | | | | | | | | | | Income Statement | | For the Three Months Ended September 30, | Intangible asset | | Location | | 2026 | | 2025 | Above-market lease assets (decrease to income) | | Operating lease income | | $ | 670 | | $ | 784 | In-place lease assets (decrease to income) | | Depreciation and amortization | | | 212 | | | 597 | Other intangible assets (decrease to income) | | Operating lease income | | | 2 | | | 2 |
| | | | | | | | | | | Income Statement | | For the Nine Months Ended September 30, | Intangible asset | | Location | | 2026 | | 2025 | Above-market lease assets (decrease to income) | | Operating lease income | | $ | 2,010 | | $ | 2,351 | In-place lease assets (decrease to income) | | Depreciation and amortization | | | 638 | | | 1,789 | Other intangible assets (decrease to income) | | Operating lease income | | | 6 | | | 6 |
The estimated amortization of real estate-related intangible assets for each of the five succeeding fiscal years is as follows ($ in thousands):(1) | | | | Year | | Amount | 2026 (remaining three months) | | $ | 884 | 2027 | | | 3,538 | 2028 | | | 3,530 | 2029 | | | 3,523 | 2030 | | | 3,523 |
| (1) | As of September 30, 2026, the weighted average amortization period for the Company’s real estate-related intangible assets was approximately 81.2 years. |
The amortization of real estate-related intangible liabilities had the following impact on the Company’s consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025 ($ in thousands): | | | | | | | | | | | Income Statement | | For the Three Months Ended September 30, | Intangible liability | | Location | | 2026 | | 2025 | Below-market lease liabilities (increase to income) | | Operating lease income | | $ | 208 | | $ | 208 |
| | | | | | | | | | | Income Statement | | For the Nine Months Ended September 30, | Intangible liability | | Location | | 2026 | | 2025 | Below-market lease liabilities (increase to income) | | Operating lease income | | $ | 625 | | $ | 625 |
Future Minimum Operating Lease Payments—Future minimum lease payments to be collected under non-cancelable operating leases, excluding lease payments that are not fixed and determinable, in effect as of September 30, 2026, are as follows by year ($ in thousands): | | | | | | | | | | | | | | | | | | | | | | | | Fixed Bumps | | | | | | | | Fixed | | | | | | | | | with | | | | | | | | Bumps with | | | | | | Inflation- | | Inflation | | Fixed | | Percentage | | Percentage | | | | Year | | Linked | | Adjustments | | Bumps | | Rent(1) | | Rent | | Total | 2026 (remaining three months) | | $ | 1,957 | | $ | 4,659 | | $ | 594 | | $ | 1,452 | | $ | 105 | | $ | 8,767 | 2027 | | | 7,829 | | | 18,876 | | | 2,388 | | | 5,807 | | | 421 | | | 35,321 | 2028 | | | 7,829 | | | 19,224 | | | 2,421 | | | 5,807 | | | 304 | | | 35,585 | 2029 | | | 7,829 | | | 19,578 | | | 2,453 | | | 5,807 | | | — | | | 35,667 | 2030 | | | 7,829 | | | 19,939 | | | 2,490 | | | 5,807 | | | — | | | 36,065 | Thereafter | | | 442,143 | | | 4,270,824 | | | 425,745 | | | 13,643 | | | — | | | 5,152,355 |
| (1) | During the three months ended September 30, 2026 and 2025, the Company recognized $36 thousand and $0.1 million, respectively, of percentage rent in “Operating lease income” in the Company’s consolidated statements of operations. During the nine months ended September 30, 2026 and 2025, the Company recognized $4.6 million and $5.3 million, respectively, of percentage rent in “Operating lease income” in the Company’s consolidated statements of operations. The tenant under the Park Hotels master lease elected to extend the leases underlying three of the five hotels originally covered by the master lease past the initial lease maturity of December 2025. On October 22, 2025, the Company sent the tenant under the Park Hotels master lease a termination notice for all five hotels and commenced litigation against its tenant and Park Intermediate Holdings LLC, guarantor under the master lease, for certain breaches, among other things, related to the maintenance and operations of the hotels. There are no assurances that the Company will be able to terminate the master lease or prevail in its litigation (refer to Note 11). The Company became responsible for operating the two hotel properties that reverted to it on January 1, 2026. |
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