Real Estate Investments, Net

9 Months Ended

Sep. 30, 2025

Property Acquisitions

The Company did not acquire any properties during any of the three and nine month periods ended September 30, 2025 or 2024.

Acquired Intangible Lease Assets and Liabilities

The Company allocates a portion of the fair value of real estate acquired to identified intangible assets and liabilities, consisting of the value of origination costs (tenant improvements, leasing commissions, and legal and marketing costs), the value of above-market and below-market leases, and the value of tenant relationships, if applicable, based in each case on their relative fair values. The Company periodically assesses whether there are any indicators that the value of the intangible assets may be impaired by performing a net present value analysis of future cash flows, discounted for the inherent risk associated with each investment. The Company recorded $0.9 million and $10.5 million of impairment charges on its acquired intangible assets and liabilities during the three and nine months ended September 30, 2025, respectively, and did not record any impairment charges on its acquired intangible assets and liabilities during the three and nine months ended September 30, 2024.

Impairment Charges

The Company recorded aggregate impairment charges of approximately $55.4 million and $125.6 million during the three and nine months ended September 30, 2025, respectively, and recorded impairment charges of approximately $38.5 million and $70.2 million during the three and nine months ended September 30, 2024, respectively.

•During the three months ended September 30, 2025, the Company determined that 10 of its properties (9 of which were located in the U.S. and one located in the U.K.) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties, and as a result, the Company recorded an impairment charge of approximately $55.4 million.

•During the three months ended June 30, 2025, the Company determined that 21 of its properties (20 of which were located in the U.S. and one located in Europe) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties less selling costs, and as a result, the Company recorded an impairment charge of approximately $9.8 million.

•During the three months ended March 31, 2025, the Company determined that 69 of its properties (68 located in the U.S. and one located in the U.K.) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties less selling costs, and as a result, the Company recorded an impairment charge of approximately $60.3 million.

•During the three months ended September 30, 2024, the Company determined that 21 of its properties located in the U.S. (19 of which were acquired in the acquisition of the Necessity Retail REIT, Inc. (“RTL”) (the “REIT Merger”)) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties, and as a result, the Company recorded an impairment charge of approximately $38.6 million.

•During the three months ended June 30, 2024, the Company determined that six of its properties located in the U.S. (three of which were acquired in the REIT Merger) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties, and as a result, the Company recorded an impairment charge of approximately $27.4 million. The majority of the impairment charge was related to legacy GNL properties.

•During the three months ended March 31, 2024, the Company determined that six of its properties located in the U.S. had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties less selling costs, and as a result, the Company recorded an impairment charge of approximately $4.3 million.

Real Estate Assets and Liabilities Held for Sale

When assets and liabilities are identified by management as held for sale, the Company stops recognizing depreciation and amortization expense on the identified assets and estimates the sales price, net of costs to sell, of those assets. If the carrying amount of the assets and liabilities classified as held for sale exceeds the estimated net sales price, the Company records an impairment charge equal to the amount by which the carrying amount of the assets exceeds the Company’s estimate of the net sales price of the assets and liabilities.

As of September 30, 2025, the Company evaluated its real estate assets and liabilities for held for sale classification and determined that 22 properties qualified for held for sale treatment. Because these assets and liabilities are considered held for sale, the operating results remain classified within continuing operations for all periods presented.

The following table details the major classes of the real estate assets and liabilities associated with the properties that the Company determined to be classified as held for sale as of September 30, 2025 and December 31, 2024.


(In thousands)	September 30, 2025		December 31, 2024
Land	$	9,347	$	4,574
Buildings, fixtures and improvements	23,909		11,658
Acquired intangible lease assets	5,017		1,627
Above-market leases	432		—
Real estate assets held for sale, at cost	38,705		17,859
Less: accumulated depreciation and amortization	(5,069)		(453)
Real estate assets held for sale, net	$	33,636	$	17,406

Below-market leases	$	63	$	—
Less: accumulated amortization	(1)		—
Real estate liabilities held for sale, net	$	62	$	—

Real Estate Dispositions (Not Including the Multi-Tenant Retail Disposition)

During the three months ended September 30, 2025, the Company sold 58 properties (three Industrial and Distribution properties, 51 Retail properties and four Office properties) and during the nine months ended September 30, 2025, the Company sold 168 properties, (9 Industrial and Distribution properties, 152 Retail properties and seven Office properties), not including the properties sold as part of the Multi-Tenant Retail Disposition (see Note 3 — Multi-Tenant Retail Disposition for additional information). As a result, the Company recorded net losses from the sale of properties of $5.8 million and $5.9 million (not including the Multi-Tenant Retail Disposition), which is recorded in continuing operations, during the three and nine months ended September 30, 2025, respectively.

During the three and nine months ended September 30, 2024, the Company sold 20 and 75 properties, respectively. As a result, the Company recorded a net loss of $4.3 million during the three months ended September 30, 2024 and a net gain $35.7 million during the nine months ended September 30, 2024.

Significant Tenants

There were no tenants whose annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis for all properties as of September 30, 2025 and December 31, 2024. The termination, delinquency or non-renewal of leases by any major tenant may have a material adverse effect on revenues.

Geographic Concentration

The following table lists the countries and states where the Company has concentrations of properties where annualized rental income on a straight-line basis represented greater than 10.0% of consolidated annualized rental income on a straight-line basis as of September 30, 2025 or December 31, 2024, or both. Michigan is included in the United States concentration of 69.5%.


Country / U.S. State	September 30, 2025	December 31, 2024
United States	69.5%	80.1%
Michigan	12.1%	9.2%
United Kingdom	14.4%	10.4%