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Investments
 12 Months Ended
Dec. 31, 2022
Investments [Abstract]  
Investments Investments
The following table presents information about the number of investments in the Company's real estate investment portfolio as of each date presented:
December 31,
20222021
Owned properties (1)
1,4891,315
Properties securing investments in mortgage loans (2)
153126
Ground lease interests (3)
1110
Total number of investments1,6531,451
_____________________________________
(1)Includes 8 and 11 properties which are subject to leases accounted for as direct financing leases or loans as of December 31, 2022 and 2021, respectively.
(2)Properties secure 20 and 17 mortgage loans receivable as of December 31, 2022 and 2021, respectively.
(3)Includes one building which is subject to a lease accounted for as a direct financing lease as of December 31, 2021.
The following table presents information about the gross investment value of the Company's real estate investment portfolio as of each date presented:
December 31,
(in thousands)20222021
Real estate investments, at cost$3,810,570 $3,150,840 
Loans and direct financing lease receivables, net240,035 189,287 
Real estate investments held for sale, net4,780 15,434 
Total gross investments$4,055,385 $3,355,561 
Investments in 2022 and 2021
The following table presents information about the Company’s acquisition activity during the years ended December 31, 2022 and 2021:
Year ended December 31,
(Dollars in thousands)20222021
Ownership type
(1)
Fee Simple
Number of properties224297
Purchase price allocation:
Land and improvements$270,049 $279,501 
Building and improvements481,560544,604
Construction in progress (2)
51,8709,348
Intangible lease assets3,36611,010
Total purchase price806,845 844,463 
Intangible lease liabilities— (3,320)
Purchase price (including acquisition costs)$806,845 $841,143 
_____________________________________
(1)During the year ended December 31, 2022, the Company acquired the fee interest in 223 properties and acquired one property subject to a ground lease.
(2)Represents amounts incurred at and subsequent to acquisition and includes $0.8 million and $0.1 million, respectively, of capitalized interest expense during the years ended December 31, 2022 and 2021.
During the years ended December 31, 2022 and 2021, the Company did not have any investments that individually represented more than 5% of the Company’s total investment activity.
Gross Investment Activity
During the years ended December 31, 2022, 2021 and 2020, the Company had the following gross investment activity: 
(Dollar amounts in thousands)Number of
Investment
Locations		Dollar
Amount of
Investments
Gross investments, December 31, 20191,000 $2,002,314 
Acquisitions of and additions to real estate investments208 568,204 
Sales of investments in real estate(49)(81,312)
Relinquishment of properties at end of ground lease term(3)(1,931)
Provisions for impairment of real estate (1)
— (8,399)
Investments in loans receivable25 61,339 
Principal collections on and settlements of loans and direct financing lease receivables— (286)
Other— (11,256)
Gross investments, December 31, 20201,181 2,528,673 
Acquisitions of and additions to real estate investments297 853,798 
Sales of investments in real estate(38)(57,154)
Provisions for impairment of real estate (2)
— (6,120)
Investments in loans receivable49 137,351 
Principal collections on and settlements of loans and direct financing lease receivables(38)(100,488)
Other— (499)
Gross investments, December 31, 20211,451 3,355,561 
Acquisitions of and additions to real estate investments224 810,661 
Sales of investments in real estate(54)(138,515)
Provisions for impairment of real estate (3)
— (20,164)
Investments in loans receivable75 143,954 
Principal collections on and settlements of loans and direct financing lease receivables(43)(93,118)
Other— (2,994)
Gross investments, December 31, 20221,653 4,055,385 
Less: Accumulated depreciation and amortization (4)
— (276,307)
Net investments, December 31, 20221,653 $3,779,078 
_____________________________________________ 
(1)During the year ended December 31, 2020, the Company identified and recorded provisions for impairment at 7 vacant and 10 tenanted properties.
(2)During the year ended December 31, 2021, the Company identified and recorded provisions for impairment at 2 vacant and 16 tenanted properties.
(3)During the year ended December 31, 2022, the Company identified and recorded provisions for impairment at 4 vacant and 9 tenanted properties.
(4)Includes $238.2 million of accumulated depreciation as of December 31, 2022.
Real Estate Investments
The Company's investment properties are leased to tenants under long-term operating leases that typically include one or more renewal options. See Note 4—Leases for more information about the Company's leases.
Loans and Direct Financing Lease Receivables
As of December 31, 2022 and 2021, the Company had 23 and 22 loans receivable outstanding, with an aggregate carrying amount of $238.7 million and $187.8 million, respectively. The maximum amount of loss due to credit risk is the Company's current principal balance of $238.7 million as of December 31, 2022.  
The Company's loans receivable portfolio as of December 31, 2022 and 2021 is summarized below (dollars in thousands): 
Loan Type
Monthly Payment (1)
Number of Secured PropertiesEffective Interest RateStated Interest RateMaturity DateDecember 31,
20222021
Mortgage (2)(3)
I/O28.80%8.00%2039$12,000 $12,000 
Mortgage (2)
P+I8.10%8.10%2059— 6,096 
Mortgage (2)
I/O28.53%7.75%20397,300 7,300 
Mortgage (2)
I/O698.16%7.70%203451,000 28,000 
Mortgage (2)
I/O18.42%7.65%20405,300 5,300 
Mortgage (2)
I/O38.79%8.50%20222,324 2,324 
Mortgage (2)
I/O17.00%7.00%2023600 600 
Mortgage (2)
I/O6.89%6.75%2026— 14,165 
Mortgage (2)
I/O38.30%8.25%20233,146 3,146 
Mortgage (2)
I/O26.87%6.40%20362,520 2,520 
Mortgage (2)
I/O37.51%7.00%20362,673 30,806 
Mortgage (2)
I/O7.51%7.00%2036— 9,679 
Mortgage (2)
I/O7.85%7.50%2031— 13,000 
Mortgage (2)
I/O28.29%8.25%20232,389 2,389 
Mortgage (2)
I/O15.72%8.00%205124,100 6,864 
Mortgage (2)
I/O27.44%7.10%20369,808 9,808 
Mortgage (2)
I/O77.30%6.80%203635,474 25,714 
Mortgage (2)
I/O17.73%7.20%20362,470 2,470 
Mortgage (2)
I/O18.00%8.00%20231,754 — 
Mortgage (2)
I/O376.80%7.00%202726,307 — 
Mortgage (2)
I/O16.99%7.20%20373,600 — 
Mortgage (2)
I/O18.40%8.25%2024760 — 
Mortgage (2)
I/O48.64%8.05%203712,250 — 
Mortgage (2)
I/O108.93%8.25%203728,938 — 
Leasehold interestP+I10.69%
(4)
2039— 1,435 
Leasehold interestP+I12.25%
(5)
2034992 1,055 
Leasehold interestP+I12.41%
(5)
20341,473 1,560 
Leasehold interestP+I14.97%
(5)
20381,517 1,562 
Net investment    $238,695 $187,793 
________________________________________________
(1)I/O: Interest Only; P+I: Principal and Interest
(2)Loan requires monthly payments of interest only with a balloon payment due at maturity.
(3)Loan allows for prepayments in whole or in part without penalty.
(4)This leasehold interest was accounted for as a loan receivable, as the lease for two land parcels contained an option for the lessee to repurchase the leased parcels in 2024 or 2025.
(5)These leasehold interests are accounted for as loans receivable, as the leases for each property contain an option for the related lessee to repurchase the leased property in the future.
Scheduled principal payments due to be received under the Company's loans receivable as of December 31, 2022 were as follows:
(in thousands)Loans Receivable
2023$8,096 
2024981 
2025234 
2026248 
202726,570 
Thereafter202,566 
Total$238,695 
As of December 31, 2022 and 2021, the Company had $2.1 million and $2.3 million, respectively, of net investments accounted for as direct financing lease receivables. The components of the investments accounted for as direct financing lease receivables were as follows:
 December 31,
(in thousands)20222021
Minimum lease payments receivable$2,812 $3,189 
Estimated unguaranteed residual value of leased assets251 270 
Unearned income from leased assets(957)(1,150)
Net investment$2,106 $2,309 
Scheduled future minimum non-cancelable base rental payments due to be received under the direct financing lease receivables as of December 31, 2022 were as follows:
(in thousands)Future Minimum Base Rental Payments
2023$321 
2024283 
2025254 
2026243 
2027219 
Thereafter1,492 
Total$2,812 
Allowance for Credit Losses
The Company utilizes a real estate estimate model (i.e. a RELEM model) which estimates losses on loans and direct financing lease receivables for purposes of calculating an allowance for credit losses. As of December 31, 2022 and 2021, the Company recorded an allowance for credit losses of $0.8 million and $0.8 million, respectively. Changes in the Company’s allowance for credit losses are presented within provision for credit losses in the Company’s consolidated statements of operations.
For the years ended December 31, 2022, 2021 and 2020, the changes to the Company's allowance for credit losses were as follows:
(in thousands)Loans and Direct Financing Lease Receivables
Balance at December 31, 2019$— 
Cumulative-effect adjustment upon adoption of ASC 326188 
Current period provision for expected credit losses (1)
830 
Write-offs charged— 
Recoveries— 
Balance at December 31, 20201,018 
Current period provision for expected credit losses (1)
(204)
Write-offs charged— 
Recoveries— 
Balance at December 31, 2021814 
Current period provision for expected credit losses (2)
88
Write-offs charged(137)
Recoveries—
Balance at December 31, 2022$765 
_____________________________________
(1)The increase in expected credit losses was due to the changes in assumptions regarding then-current macroeconomic factors related to COVID-19.
(2)The decrease in expected credit losses is due to assumptions regarding current macroeconomic factors returning to pre-pandemic values due to the reduction of the adverse impact of the COVID-19 pandemic.
The Company considers the ratio of loan to value ("LTV") to be a significant credit quality indicator for its loans and direct financing lease portfolio. The following table presents information about the LTV of the Company's loans and direct financing lease receivables measured at amortized cost as of as of December 31, 2022:
Amortized Cost Basis by Origination YearTotal Amortized Costs Basis
(in thousands)2022202120202019Prior to 2019
LTV <60%$23,000 $— $— $28,000 $1,635 $52,635 
LTV 60%-70%— 28,234 — — — 28,234 
LTV >70%83,369 45,186 10,612 20,292 471 159,930 
$106,369 $73,420 $10,612 $48,292 $2,106 $240,799 
Real Estate Investments Held for Sale
The Company continually evaluates its portfolio of real estate investments and may elect to dispose of investments considering criteria including, but not limited to, tenant concentration, tenant credit quality, tenant operation type (e.g., industry, sector or concept), unit-level financial performance, local market conditions and lease rates, associated indebtedness and asset location. Real estate investments held for sale are expected to be sold within twelve months.
The following table shows the activity in real estate investments held for sale and intangible lease liabilities held for sale during the years ended December 31, 2022 and 2021: 
(Dollar amounts in thousands)Number of
Properties		Real Estate
Investments		Intangible Lease
Liabilities		Net Carrying
Value
Held for sale balance, December 31, 20208 $17,058 $— $17,058 
Transfers to held for sale classification20 25,767 — 25,767 
Sales(15)(13,501)— (13,501)
Transfers to held and used classification(4)(13,890)— (13,890)
Held for sale balance, December 31, 20219 15,434 — 15,434 
Transfers to held for sale classification11 28,393 — 28,393 
Sales(16)(39,047)— (39,047)
Transfers to held and used classification— — — — 
Held for sale balance, December 31, 20224 $4,780 $— $4,780 
Significant Concentrations
The Company did not have any tenants (including for this purpose, all affiliates of such tenants) whose rental revenue for the years ended December 31, 2022, 2021 or 2020 represented 10% or more of total rental revenue in the Company's consolidated statements of operations.
The following table lists the states where the rental revenue from the properties in that state during the periods presented represented 10% or more of total rental revenue in the Company's consolidated statements of operations:
 Year ended December 31,
State202220212020
Texas13.5%13.1%14.9%


Intangible Assets and Liabilities
Intangible assets and liabilities consisted of the following as of the dates presented:
 December 31, 2022December 31, 2021
(in thousands)Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Intangible assets:      
In-place leases$77,096 $30,217 $46,879 $76,255 $24,540 $51,715 
Intangible market lease assets11,268 4,917 6,351 11,704 4,409 7,295 
Total intangible assets$88,364 $35,134 $53,230 $87,959 $28,949 $59,010 
Intangible market lease liabilities$15,325 $3,774 $11,551 $15,948 $3,255 $12,693 
 The remaining weighted average amortization period for the Company's intangible assets and liabilities as of December 31, 2022, by category and in total, were as follows:
 Years Remaining
In-place leases8.8
Intangible market lease assets11.0
Total intangible assets9.1
 
Intangible market lease liabilities8.3
The following table discloses amounts recognized within the consolidated statements of operations related to amortization of in-place leases, amortization and accretion of above- and below-market lease assets and
liabilities, net and the amortization and accretion of above- and below-market ground leases for the periods presented:
 Year ended December 31,
(in thousands)202220212020
Amortization of in-place leases (1)
$7,575 $7,544 $7,067 
Amortization (accretion) of market lease intangibles, net (2)
(217)(47)9 
Amortization (accretion) of above- and below-market ground lease intangibles, net (3)
(350)(353)(395)
 ______________________________________________________
(1)Reflected within depreciation and amortization expense.
(2)Reflected within rental revenue.
(3)Reflected within property expenses.
The following table provides the estimated amortization of in-place lease assets to be recognized as a component of depreciation and amortization expense for the next five years and thereafter:
(in thousands)In-Place Lease Assets
2023$6,187 
20245,519 
20254,271 
20263,966 
20273,437 
Thereafter23,499 
Total$46,879 
The following table provides the estimated net amortization of above- and below-market lease intangibles to be recognized as a component of rental revenue for the next five years and thereafter:
(in thousands)Above Market Lease AssetBelow Market Lease LiabilitiesNet Adjustment to Rental Revenue
2023$(692)$701 $9 
2024(659)698 39 
2025(651)700 49 
2026(641)704 63 
2027(620)728 108 
Thereafter(3,088)8,020 4,932 
Total$(6,351)$11,551 $5,200