Real Estate Transactions

9 Months Ended

Sep. 30, 2025

Real Estate [Abstract]

Real Estate Transactions

Real Estate Transactions

In September 2025, a tenant ("Buyer") exercised its purchase option for subdivided units of Kaka'ako Commerce Center, a six-story industrial property within the Commercial Real Estate segment. In conjunction with the transaction, the Company subdivided the building into six units, with each of the six floors representing a separate unit. The transaction is structured to qualify as a like-kind exchange under section §1031 of the Internal Revenue Code and is expected to close in the first quarter of 2026.

At the time of exercise, the Buyer was leasing two of the three subdivided units it committed to purchase. Upon the Buyer's exercise of the purchase option, the lease for the two subdivided units was modified and classified as a sales-type lease. Accordingly, $10.3 million of real estate property, net and $1.2 million of real estate intangible assets, net were derecognized and the present value of the future lease payments and the initial unguaranteed residual value of $14.1 million was established as Investments in sales-type leases, net in the Company's condensed consolidated balance sheets. Additionally, the Company recognized $2.6 million in selling profit from sales-type leases within Gain (loss) on commercial real estate transactions in the Company's condensed consolidated statements of operations during the three and nine months ended September 30, 2025. Refer to Note 10 – Leases - The Company as a Lessor for additional discussion of the components of the Company's investments in sales-type leases.

The Buyer's exercise of the purchase option for the one subdivided unit not leased by the Buyer at the time of exercise, met the criteria for classification as held for sale and accordingly, was measured at its fair value less costs to sell. The fair value was in excess of the carrying value and accordingly, no fair value adjustment related to assets and liabilities held for sale was required. Refer to Note 5 – Fair Value Measurements for additional discussion of the Company's classification of the fair value measurement in the fair value hierarchy and inputs used in determining the fair value. Refer to Note 17 – Held for Sale for additional discussion of the information related to the major classes of assets and liabilities that were classified as held for sale as of the balance sheet date.