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Leases
 3 Months Ended
Mar. 31, 2026
Leases [Abstract]  
Leases Leases
Lessor – Operating leases
The Company’s rental revenue primarily consists of rent earned from operating leases at the Company’s net lease properties which consists of fixed annual rent that escalates annually throughout the term of the applicable leases, and the tenant is generally responsible for all property-related expenses, including taxes, insurance, and maintenance. The Company’s net lease properties are each leased to a single tenant.
The following table details the components of operating lease income from leases in which the Company is the lessor.
Three Months Ended
March 31, 2026March 31, 2025
Base rent (1)
$68,960 $45,163 
Straight-line rental revenue, net (2)
7,917 5,125 
Variable lease payments (3)
5,815 5,369 
Amortization of above/below-market lease intangibles
(334)89 
Total Rental revenue$82,358 $55,746 
__________________
(1)Consists of fixed lease payments.
(2)Represents lease income related to the excess (deficit) of straight-line rental revenue over fixed lease payments and amortization of prepaid rent.
(3)Consists of reimbursement of common area maintenance (“CAM”) and real estate taxes, as well as amortization of tenant inducements.

The following table presents the undiscounted future minimum rents the Company expects to receive for its net lease properties classified as operating leases as of March 31, 2026.
Year
Future Minimum Rents (1)
2026 (remaining)$212,160 
2027287,215 
2028292,146 
2029295,608 
2030300,556 
2031304,650 
Thereafter2,710,804 
Total$4,403,139 
__________________
(1)    Excludes future minimum rents related to leases with build-to-suit arrangements and other leases where the rent commencement date is based on future events and therefore not fixed at March 31, 2026.

Lessor – Financing receivables
In accordance with ASC 842, certain of the Company’s sales-type lease contracts are accounted for as failed sale-leaseback transactions and were recorded as an Investments in leases - Financing receivables. During the three months ended March 31, 2026 and 2025, the Company recognized interest income of $14,567 and $10,307, respectively. Interest income is recognized on an effective interest basis at a constant rate of return over the term of the applicable leases. Cash received from the sales-type leasing agreements was $10,835 and $8,622 during the three months ended March 31, 2026 and 2025, respectively.
All of the lease payments are on a triple net basis to the tenant and the Company has rights in accordance with the individual lease agreements to protect the value of our leased properties. As of March 31, 2026, the future minimum
payments of sales-type lease receivables were as follows:
Year
Future Minimum Payments (1)
2026 (remaining)$31,865 
202754,636 
202856,101 
202957,554 
203059,099 
203160,632 
Thereafter11,191,205 
Total lease payment receivable11,511,092 
Less deferred interest income10,896,695 
Less allowance for credit losses22,616 
Total Investments in leases - Financing receivables$591,781 
The following table reflects the roll-forward of the allowance for credit losses on our real estate portfolio for the three months ended March 31, 2026 and 2025:
Three Months Ended
March 31, 2026March 31, 2025
Balance, beginning of period$22,515 $22,934 
Current period change in credit allowance101 2,728 
Reduction in allowance resulting from dispositions— (7,199)
Balance, end of period$22,616 $18,463 
We assess the credit quality of our investments through the credit ratings of the lessee. The credit quality indicators are reviewed by us on a quarterly basis as of quarter-end. In instances where the lessee does not have a public credit rating, we may use either a comparable proxy company or the overall corporate credit rating, as applicable. We also use this credit rating to determine the probability of default when estimating credit losses for each investment. Our current year change in credit allowance is primarily the result of acquisitions.
The following tables detail the amortized cost basis of our Investments in leases - Financing receivable by the credit quality indicator as of March 31, 2026 and December 31, 2025:
March 31, 2026
Ba2
B2
Caa2
Total
Investments in leases - Financing receivable
$22,760 $115,937 $475,700 $614,397 
December 31, 2025
Ba2
B2Caa2Total
Investments in leases - Financing receivable
$— $115,465 $409,623 $525,088 
Purchase Option Provisions
Certain of the Company’s leases include purchase option provisions. The provisions vary by agreement but generally allow the lessee to purchase the property during a specified period for the Company’s gross investment plus a specified proportion of appreciation. The Company expects that the purchase price will be greater than its net investment in the property at the time of potential exercise by the lessee.
Lessee - DST Program Master Lease
As of March 31, 2026, the Company has contributed or sold 59 assets to DSTs as part of its DST Offerings. The assets are leased back to wholly owned subsidiaries of the Company under the master lease agreements. The following table presents the undiscounted future minimum rent payment obligation of the wholly owned subsidiaries:
YearFuture Minimum Payments
2026 (remaining)$32,208 
202742,944 
202843,102 
202943,350 
203044,681 
203146,584 
Thereafter688,005 
Total $940,874 
Leases Leases
Lessor – Operating leases
The Company’s rental revenue primarily consists of rent earned from operating leases at the Company’s net lease properties which consists of fixed annual rent that escalates annually throughout the term of the applicable leases, and the tenant is generally responsible for all property-related expenses, including taxes, insurance, and maintenance. The Company’s net lease properties are each leased to a single tenant.
The following table details the components of operating lease income from leases in which the Company is the lessor.
Three Months Ended
March 31, 2026March 31, 2025
Base rent (1)
$68,960 $45,163 
Straight-line rental revenue, net (2)
7,917 5,125 
Variable lease payments (3)
5,815 5,369 
Amortization of above/below-market lease intangibles
(334)89 
Total Rental revenue$82,358 $55,746 
__________________
(1)Consists of fixed lease payments.
(2)Represents lease income related to the excess (deficit) of straight-line rental revenue over fixed lease payments and amortization of prepaid rent.
(3)Consists of reimbursement of common area maintenance (“CAM”) and real estate taxes, as well as amortization of tenant inducements.

The following table presents the undiscounted future minimum rents the Company expects to receive for its net lease properties classified as operating leases as of March 31, 2026.
Year
Future Minimum Rents (1)
2026 (remaining)$212,160 
2027287,215 
2028292,146 
2029295,608 
2030300,556 
2031304,650 
Thereafter2,710,804 
Total$4,403,139 
__________________
(1)    Excludes future minimum rents related to leases with build-to-suit arrangements and other leases where the rent commencement date is based on future events and therefore not fixed at March 31, 2026.

Lessor – Financing receivables
In accordance with ASC 842, certain of the Company’s sales-type lease contracts are accounted for as failed sale-leaseback transactions and were recorded as an Investments in leases - Financing receivables. During the three months ended March 31, 2026 and 2025, the Company recognized interest income of $14,567 and $10,307, respectively. Interest income is recognized on an effective interest basis at a constant rate of return over the term of the applicable leases. Cash received from the sales-type leasing agreements was $10,835 and $8,622 during the three months ended March 31, 2026 and 2025, respectively.
All of the lease payments are on a triple net basis to the tenant and the Company has rights in accordance with the individual lease agreements to protect the value of our leased properties. As of March 31, 2026, the future minimum
payments of sales-type lease receivables were as follows:
Year
Future Minimum Payments (1)
2026 (remaining)$31,865 
202754,636 
202856,101 
202957,554 
203059,099 
203160,632 
Thereafter11,191,205 
Total lease payment receivable11,511,092 
Less deferred interest income10,896,695 
Less allowance for credit losses22,616 
Total Investments in leases - Financing receivables$591,781 
The following table reflects the roll-forward of the allowance for credit losses on our real estate portfolio for the three months ended March 31, 2026 and 2025:
Three Months Ended
March 31, 2026March 31, 2025
Balance, beginning of period$22,515 $22,934 
Current period change in credit allowance101 2,728 
Reduction in allowance resulting from dispositions— (7,199)
Balance, end of period$22,616 $18,463 
We assess the credit quality of our investments through the credit ratings of the lessee. The credit quality indicators are reviewed by us on a quarterly basis as of quarter-end. In instances where the lessee does not have a public credit rating, we may use either a comparable proxy company or the overall corporate credit rating, as applicable. We also use this credit rating to determine the probability of default when estimating credit losses for each investment. Our current year change in credit allowance is primarily the result of acquisitions.
The following tables detail the amortized cost basis of our Investments in leases - Financing receivable by the credit quality indicator as of March 31, 2026 and December 31, 2025:
March 31, 2026
Ba2
B2
Caa2
Total
Investments in leases - Financing receivable
$22,760 $115,937 $475,700 $614,397 
December 31, 2025
Ba2
B2Caa2Total
Investments in leases - Financing receivable
$— $115,465 $409,623 $525,088 
Purchase Option Provisions
Certain of the Company’s leases include purchase option provisions. The provisions vary by agreement but generally allow the lessee to purchase the property during a specified period for the Company’s gross investment plus a specified proportion of appreciation. The Company expects that the purchase price will be greater than its net investment in the property at the time of potential exercise by the lessee.
Lessee - DST Program Master Lease
As of March 31, 2026, the Company has contributed or sold 59 assets to DSTs as part of its DST Offerings. The assets are leased back to wholly owned subsidiaries of the Company under the master lease agreements. The following table presents the undiscounted future minimum rent payment obligation of the wholly owned subsidiaries:
YearFuture Minimum Payments
2026 (remaining)$32,208 
202742,944 
202843,102 
202943,350 
203044,681 
203146,584 
Thereafter688,005 
Total $940,874