NOTE 4 – REAL ESTATE INVESTMENTS, NET AND INTANGIBLE ASSETS AND LIABILITIES, NET

Real estate investments, net, which consist of land, buildings and improvements leased to others subject to net operating leases and those utilized in the operations of Kerrow Restaurant Operating Business are summarized as follows:


(In thousands)	March 31, 2025			December 31, 2024
Land	$	1,398,659		$	1,360,772
Buildings and improvements		1,720,273			1,701,522
Equipment		135,748			136,350
Total gross real estate investments		3,254,680			3,198,644
Less: accumulated depreciation		(784,943	)		(775,505	)
Real estate investments, net		2,469,737			2,423,139
Intangible real estate assets, net		119,932			123,613
Total Real Estate Investments and Intangible Real Estate Assets, Net	$	2,589,669		$	2,546,752

During the three months ended March 31, 2025, the Company invested $57.8 million, including transaction costs, in 23 properties located in four states, and allocated the investment as follows: $37.9 million to land, $18.8 million to buildings and improvements, and $1.2 million to intangible assets. There was no contingent consideration associated with these acquisitions. These properties are 100% occupied under net leases, with a weighted average remaining lease term of 7.3 years as of March 31, 2025. During the three months ended March 31, 2025, no properties were sold.

During the three months ended March 31, 2024, the Company invested $16.7 million, including transaction costs, in four properties located in four states, and allocated the investment as follows: $3.8 million to land, $11.2 million to buildings and improvements and $1.7 million to intangible assets. There was no contingent consideration associated with these acquisitions. These properties were 100% occupied under net leases, with a weighted average remaining lease term of 9.9 years as of March 31, 2024. During the three months ended March 31, 2024, no properties were sold.

The following tables detail intangible real estate assets and liabilities.


(In thousands)	March 31, 2025			December 31, 2024
Acquired in-place lease intangibles	$	160,855		$	159,693
Finance lease - right of use assets		14,040			14,040
Above-market leases		13,821			13,821
Lease incentives		10,108			10,108
Tenant improvements intangible		3,605			3,605
Direct lease cost		702			702
Total		203,131			201,969
Less: accumulated amortization		(83,199	)		(78,356	)
Intangible Real Estate Assets, Net	$	119,932		$	123,613

The value of acquired in-place leases amortized and included in depreciation and amortization expense was $4.3 million and $4.4 million for the three months ended March 31, 2025 and 2024, respectively. The value of above-market and below-market leases amortized as an adjustment to revenue was $0.3 million and $0.3 million for the three months ended March 31, 2025 and 2024, respectively. For the three months ended March 31, 2025 and 2024, lease incentive amortization was $0.2 million and $0.2 million, respectively.

At March 31, 2025, the total weighted average amortization period remaining for our intangible real estate assets and liabilities was 8.7 years, and the individual weighted average amortization period remaining for acquired in-place lease intangibles, above-market leases, below-market leases, lease incentives, and tenant improvement intangible was 8.5 years, 6.1 years, 10.1 years, 11.0 years, and 13.9 years, respectively.

The following table presents the estimated net impact during the next five years and thereafter related to the amortization of in-place lease intangibles, and above-market and below-market lease intangibles for properties held for investment.


(In thousands)	March 31,
2025 (Nine Months)	$	12,862
2026		15,659
2027		13,277
2028		10,815
2029		8,736
Thereafter		35,900
Total Future Amortization	$	97,249