INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2024

Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Abstract]

Schedule of Acquired Assets and Assumed Liabilities

The following table summarizes the book value of the Company’s acquired assets and assumed liabilities (in thousands, except amounts in the footnotes):

	June 30, 2024							December 31, 2023
	Cost Basis		Accumulated Depreciation & Amortization			Carrying Value		Cost Basis		Accumulated Depreciation & Amortization			Carrying Value
Assets acquired:
Investments in real estate, equity:
Investments in real estate (1)	$	188,808	$	(6,455	)	$	182,353	$	162,662	$	(5,041	)	$	157,621
Right of use assets (2)(3)		19,664		(614	)		19,050		19,664		(478	)		19,186
Intangible assets (4)		11,474		(4,079	)		7,395		11,474		(3,592	)		7,882
Subtotal		219,946		(11,148	)		208,798		193,800		(9,111	)		184,689
Investments in real estate from lending activities:
Properties held for sale (5)		63,341		—			63,341		62,605		—			62,605
Total		283,287		(11,148	)		272,139		256,405		(9,111	)		247,294
Liabilities assumed:
Investments in real estate, equity:
Mortgage payables		61,796		2,206			64,002		40,297		1,489			41,786
Other liabilities		247		(238	)		9		247		(220	)		27
Lease liabilities (3)(6)		43,889		—			43,889		43,538		—			43,538
Subtotal		105,932		1,968			107,900		84,082		1,269			85,351
Investments in real estate from lending activities:
Liabilities held for sale (7)		3,123		—			3,123		3,025		—			3,025
Total		109,055		1,968			111,023		87,107		1,269			88,376
Total net investments in real estate and properties held for sale (8)	$	174,232				$	161,116	$	169,298				$	158,918

(1)Includes $38.4 million of land, which is not depreciable, at both June 30, 2024 and December 31, 2023. Also includes $70.6 million and $44.9 million of construction in progress, which is also not depreciable until placed in service, at June 30, 2024 and December 31, 2023, respectively.

(2)Primarily comprised a $18.7 million and $19.2 million right of use asset, at June 30, 2024 and December 31, 2023, respectively, associated with the ground lease disclosed at footnote (6) below as an operating lease. Amortization is booked to real estate expenses on the consolidated statements of operations.

(3)Refer to Note 8 for additional information on the Company’s remaining operating leases.

(4)Primarily comprised a franchise intangible of $4.4 million and $4.7 million, a management contract intangible of $2.9 million and a customer list intangible of $134,000 and $223,000, at June 30, 2024 and December 31, 2023, respectively.

(5)At June 30, 2024 and December 31, 2023, properties held for sale included a hotel acquired via deed-in-lieu of foreclosure in November 2020, as well as an office property acquired via deed-in-lieu of foreclosure in June 2023.

(6)Primarily comprised a $43.6 million ground lease with a remaining term of 92 years at June 30, 2024. Lease expense was $1.4 million and $1.3 million for the six months ended June 30, 2024 and 2023, respectively.

(7)Comprised an operating lease liability.

(8)Excludes items of working capital, either acquired or assumed.