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Real Estate Owned (Tables)
 6 Months Ended
Jun. 30, 2023
Real Estate Owned, Disclosure of Detailed Components [Abstract]  
Schedule of REO Assets and Liabilities
The Company allocated the fair value of the assumed assets and liabilities on the acquisition date as follows (dollars in thousands):
Fair Value Allocation
Building and building improvements$31,096 
Land and land improvements7,592 
In-place lease intangibles9,378 
Above-market lease intangibles576 
Below-market lease intangibles(2,642)
Total$46,000 
The following table presents the REO assets and liabilities (dollars in thousands):
June 30, 2023
Assets
Cash$712 
Real estate owned - Building and building improvements31,096 
Real estate owned - Land and land improvements7,592 
Real estate owned38,688 
Accumulated depreciation(237)
Real estate owned, net38,451 
In-place lease intangibles, net(1)
8,651 
Above-market lease intangibles, net(1)
556 
Other assets, net(1)
12,856 
Total assets$61,226 
Liabilities
Mortgage loan payable, net(2)
$30,475 
Below-market leases intangibles, net(3)
2,491 
Other liabilities(3)
248 
Total liabilities$33,214 
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(1)Included within Other assets within the Company's consolidated balance sheet. Other assets, net includes $12.1 million of cash proceeds from the Company's mortgage loan payable escrowed for tenant improvements and leasing costs, and other working capital balances as of June 30, 2023.
(2)During the three and six months ended June 30, 2023, the Company incurred interest expense of $0.1 million, which is included within Interest expense on the Company's consolidated statements of income and comprehensive income
(3)Included within Accrued expenses and other liabilities within the Company's consolidated balance sheet.
Schedule of Real Estate Owned, Revenue and Expenses
The following table presents the REO operations and related income (loss) (dollars in thousands):
Three Months EndedSix Months Ended
June 30, 2023June 30, 2023
Rental income
Minimum lease payments$825 $825 
Variable lease payments248 248 
Total rental income1,073 1,073 
Other operating income455 455 
Revenue from real estate owned operations1,528 1,528 
Rental property operating expenses(1)
884 884 
Depreciation and amortization(2)
964 964 
Expenses from real estate owned operations1,848 1,848 
Net loss from REO$(320)$(320)
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(1)Excludes $0.1 million of interest expense, which is included within Interest expense on the Company's consolidated statements of income and comprehensive income.
(2)During the three and six months ended June 30, 2023, the Company incurred $0.2 million of depreciation expense.
Schedule of Amortization of Lease Intangibles
The following table presents the gross carrying amount and accumulated amortization of lease intangibles (dollars in thousands):
June 30, 2023
Intangible assets:
In-place lease intangibles$9,378 
Above-market lease intangibles576 
Total intangible assets9,954 
Accumulated amortization:
In-place lease intangibles(727)
Above-market lease intangibles(20)
Total accumulated amortization(747)
Intangible assets, net$9,207 
Intangible liabilities:
Below-market lease intangibles$2,642 
Total intangible liabilities2,642 
Accumulated amortization:
Below-market lease intangibles(151)
Total accumulated amortization(151)
Intangible liabilities, net$2,491 
Schedule of Estimated Future Amortization
The following table presents the estimated future amortization of the Company's intangibles for each of the next five years (dollars in thousands):
YearIn-place lease intangiblesAbove-market lease intangiblesBelow-market lease intangibles
2023 (remaining)$2,181 $60 $(453)
20244,362 120 (842)
20252,108 84 (338)
2026— 69 (237)
2027— 38 (187)
2028— 33 (179)
Schedule of Estimated Future Amortization
The following table presents the estimated future amortization of the Company's intangibles for each of the next five years (dollars in thousands):
YearIn-place lease intangiblesAbove-market lease intangiblesBelow-market lease intangibles
2023 (remaining)$2,181 $60 $(453)
20244,362 120 (842)
20252,108 84 (338)
2026— 69 (237)
2027— 38 (187)
2028— 33 (179)
Schedule of Future Minimum Lease Payments The following table presents approximate future minimum rental income under noncancellable operating leases, excluding variable lease revenue of tenant reimbursements, to be received over the next five years and thereafter as of June 30, 2023 (dollars in thousands):
YearFuture Minimum Rents
2023 (remaining)$1,514 
20244,063 
20254,058 
20263,386 
20273,064 
20282,790 
Thereafter15,403 
Total$34,278