| SALES OF PROPERTIES, PROPERTIES HELD-FOR-SALE AND IMPAIRMENT LOSSES |
NOTE 5 – SALES OF PROPERTIES, PROPERTIES HELD-FOR-SALE AND IMPAIRMENT LOSSES Sales of Properties The following table details the Company’s sales of real estate during the nine months ended September 30, 2026 and 2025 (amounts in thousands): | | | | | | | | | | | | | | | | | | Gross | | Gain (Loss) on Sale | | Description of Property | | City, State | | Date Sold | | Sales Price | | of Real Estate, Net | | Vacant retail property | | Cary, North Carolina | | March 13, 2026 | | $ | 6,000 | | $ | 2,518 | | Havertys retail property | | Newport News, Virginia | | March 31, 2026 | | | 4,200 | | | 1,358 | | Advance Auto Parts retail property | | South Euclid, Ohio | | April 16, 2026 | | | 1,483 | | | 118 | | Multi-tenant retail property | | Champaign, Illinois | | May 5, 2026 | | | 7,498 | | | 3,326 | | Multi-tenant retail property | | El Paso, Texas | | June 1, 2026 | | | 17,500 | | | 9,989 | | Men's Wearhouse retail property | | Monroeville, Pennsylvania | | July 28, 2026 | | | 2,050 | | | 887 | | TVI, Inc. retail property | | Chicago, Illinois | | September 30, 2026 | | | 5,700 | | | — | (a) | Totals for the nine months ended September 30, 2026 | $ | 44,431 | (b) | $ | 18,196 | (c) | | | | | | | | | | | | | Land and improvements (d) | | Lakewood, Colorado | | January 16, 2025 | | $ | 400 | | $ | (44) | (d) | Hooters restaurant property | | Concord, North Carolina | | January 21, 2025 | | | 3,253 | | | 1,154 | | Multi-tenant retail stores (d) | | Lakewood, Colorado | | June 23, 2025 | | | 17,900 | | | 3,276 | (d) | Total Wine retail property | | Greensboro, North Carolina | | June 25, 2025 | | | 4,709 | | | 2,232 | | La-Z-Boy retail property | | Gurnee, Illinois | | June 27, 2025 | | | 4,368 | | | 1,023 | | Land parcel (d) | | Lakewood, Colorado | | July 15, 2025 | | | 3,457 | | | 2,849 | (d) | Office Depot retail property | | Eugene, Oregon | | August 1, 2025 | | | 6,000 | | | 2,497 | | Blue Pearl Veterinary hospital | | Newark, Delaware | | September 8, 2025 | | | 6,774 | | | 3,236 | | Vacant retail property | | Bolingbrook, Illinois | | September 25, 2025 | | | 2,600 | | | 489 | | Totals for the nine months ended September 30, 2025 | $ | 49,461 | (e) | $ | 16,712 | (f) |
| (a) | See discussion below regarding impairment losses recognized in connection with the sale of this property. |
| (b) | In connection with these sales, the Company paid off mortgages in an aggregate of $9,066. |
| (c) | As a result of these sales, the Company wrote-off, as a reduction to Gain on sale of real estate, net, an aggregate of $643 of unbilled rent receivables, $172 of net unamortized intangible lease assets and liabilities and $532 of other assets and receivables. |
| (d) | These parcels were part of a property which was owned by a consolidated joint venture in which the Company held a 90% interest. The non-controlling interest’s share of the net gain on these sales was $1,609. |
| (e) | In connection with these sales, the Company paid off mortgages in an aggregate of $6,773. |
| (f) | As a result of these sales, the Company wrote-off, as a reduction to Gain on sale of real estate, net, an aggregate of $1,125 of unbilled rent receivables, $67 of net unamortized intangible lease assets and liabilities and $703 of other assets and receivables. |
NOTE 5 – SALES OF PROPERTIES, PROPERTIES HELD-FOR-SALE AND IMPAIRMENT LOSSES (CONT’D) Properties Held-for-Sale In July 2026, the Company entered into contracts to sell the following properties which were classified as Properties held-for-sale on the consolidated balance sheet as of September 30, 2026 (amounts in thousands): | | | | | | | | | | | | | | | | | | | | | Gross | | Estimated Gain | | | | | | | | | Sales | | on Sale of Real | Description of Property | | City, State | | Held-for-Sale (a) | | Date Sold | | Price | | Estate, net (b) | Office Depot retail property | | El Paso, Texas | | August 24, 2026 | | October 21, 2026 | | $ | 4,308 | | $ | 1,600 | HD Supply & Archway Roofing industrial properties | | Louisville, Kentucky | | September 11, 2026 | | October 20, 2026 | | | 9,163 | | | 4,280 |
| (a) | The Company has determined the held-for-sale criteria has been met as the buyers’ right to terminate the contracts without penalty expired on these dates. |
| (b) | Such estimated gains are anticipated to be recognized as Gain on sale of real estate, net, in the consolidated statement of income for the year ending December 31, 2026. |
At September 30, 2026, the Company classified the aggregate $7,419,000 net book values of the El Paso, Texas and Louisville, Kentucky properties’ lands, buildings, improvements and unamortized balances of unbilled rent receivables and other assets as Properties held-for-sale in the accompanying consolidated balance sheet. Sales subsequent to September 30, 2026 In August 2026 and October 2026, the Company entered into contracts to sell the following properties: | | | | | | | | | | | | | | | | | | | | | Gross | | Estimated Gain | | | | | | | | | Sales | | on Sale of Real | Description of Property | | City, State | | Held-for-Sale (a) | | Date Sold | | Price | | Estate, net (b) | Havertys retail property | | Austin, Texas | | October 2, 2026 | | November 2, 2026 | | $ | 6,550 | | $ | 1,008 | Havertys retail property | | Amarillo, Texas | | October 8, 2026 | | October 28, 2026 | | | 5,050 | | | 1,760 |
| (a) | The Company has determined the held-for-sale criteria has been met as the buyers’ right to terminate the contracts without penalty expired on these dates. |
| (b) | Such estimated gains are anticipated to be recognized as Gain on sale of real estate, net, in the consolidated statement of income for the year ending December 31, 2026. |
Impairment losses During the three and nine months ended September 30, 2026, the Company recognized impairment losses of $1,422,000 and $1,564,000, respectively, on the consolidated statements of income as it re-measured the net book value of a property located in Chicago, Illinois to its fair value. The Company determined the fair value based on the executed contract of sale and estimated net sales price which were determined to be Level 3 unobservable inputs in the fair value hierarchy (as discussed in Note 10). The property was sold on September 30, 2026. During the three and nine months ended September 30, 2025, the Company recognized an impairment loss on the consolidated statements of income of $1,300,000, as it re-measured the net book value of a property located in Beachwood, Ohio to its fair value. The Company determined the fair value based on the estimated net sales price for the property which was determined to be a Level 3 unobservable input in the fair value hierarchy (as discussed in Note 10). The property was subsequently sold in November 2025. Sale of Unconsolidated Joint Venture Properties In August 2025, the Company and its joint venture partners sold the last two remaining unconsolidated joint venture properties in Savannah, Georgia for an aggregate of $4,614,000, net of closing costs. The Company’s 50% share of the gain from these sales was $991,000, which is recorded as Equity in earnings from sale of unconsolidated joint venture properties on the consolidated statements of income for the three and nine months ended September 30, 2025.
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