REAL ESTATE PROPERTIES (Tables)

12 Months Ended

Dec. 31, 2024

The Company’s Real estate properties and Development and value-add properties at December 31, 2024 and 2023 were as follows:


	December 31,
	2024		2023
	(In thousands)
Real estate properties:
Land	$	888,140	814,364
Buildings and building improvements	3,815,850		3,336,615
Tenant and other improvements	761,061		684,573
Right of use assets — Ground leases (operating) (1)	38,393		17,996
Development and value-add properties (2)	674,472		639,647
	6,177,916		5,493,195
Less accumulated depreciation	(1,415,576)		(1,273,723)
	$	4,762,340	4,219,472

(1)See Ground Leases discussion below for information regarding the Company’s right of use assets for ground leases.

(2)Value-add properties are defined in Note 1(e).

Real Estate Properties Acquired

A summary of real estate properties acquired for the years ended December 31, 2024, 2023 and 2022 follows:


		(Unaudited)
REAL ESTATE PROPERTIES ACQUIRED	Location	Size	Date Acquired	Cost (1)
		(Square feet)		(In thousands)
2024
OPERATING PROPERTIES ACQUIRED
Spanish Ridge Industrial Park	Las Vegas, NV	231,000	01/23/2024	$	54,859
147 Exchange	Raleigh, NC	274,000	05/03/2024	52,945
Hays Commerce Center 3 & 4	Austin, TX	179,000	08/19/2024	35,781
Riverpoint Industrial Park	Atlanta, GA	779,000	11/12/2024	87,576
DFW Global Logistics Centre 5-8 (2)	Dallas, TX	492,000	11/21/2024	75,852
Akimel Gateway (2)	Phoenix, AZ	519,000	12/26/2024	82,998
Total operating property acquisitions (3)		2,474,000		390,011
Total value-add property acquisitions (4)		—		—
Total acquired assets in 2024 (5)		2,474,000		$	390,011
2023
OPERATING PROPERTIES ACQUIRED
Craig Corporate Center	Las Vegas, NV	156,000	04/18/2023	$	34,365
Blue Diamond Business Park	Las Vegas, NV	254,000	09/05/2023	52,973
McKinney Logistics Center	Dallas, TX	193,000	10/02/2023	25,739
Park at Myatt	Nashville, TN	171,000	11/03/2023	30,793
Pelzer Point Commerce Center 1	Greenville, SC	213,000	12/21/2023	21,246
Total operating property acquisitions (3)		987,000		165,116
Total value-add property acquisitions (4)		—		—
Total acquired assets in 2023 (5)		987,000		$	165,116
2022
OPERATING PROPERTIES ACQUIRED
Cebrian Distribution Center and Reed Distribution Center (6)	Sacramento, CA	329,000	06/01/2022	$	49,726
6th Street Business Center, Benicia Distribution Center 1-5, Ettie Business Center, Laura Alice Business Center, Preston Distribution Center, Sinclair Distribution Center, Transit Distribution Center and Whipple Business Center (6)	San Francisco, CA	1,377,000	06/01/2022	309,404
Total operating property acquisitions (3)		1,706,000		359,130
VALUE-ADD PROPERTIES ACQUIRED
Cypress Preserve 1 & 2	Houston, TX	516,000	03/28/2022	54,462
Zephyr Distribution Center	San Francisco, CA	82,000	04/08/2022	29,017
Mesa Gateway Commerce Center	Phoenix, AZ	147,000	04/15/2022	18,315
Access Point 3	Greenville, SC	299,000	07/12/2022	21,127
Total value-add property acquisitions (4)		1,044,000		122,921
Total acquired assets in 2022 (5)		2,750,000		$	482,051

(1)Cost is calculated in accordance with FASB ASC 805, Business Combinations, and represents the sum of the purchase price, closing costs and capitalized acquisition costs.

(2)This operating property is located on land subject to a ground lease. See Ground Leases discussion below for information regarding the Company’s right of use assets for ground leases.

(3)Operating properties are defined as stabilized real estate properties (land including buildings and improvements) in the Company’s operating portfolio; included in Real estate properties on the Consolidated Balance Sheets.

(4)Value-add properties are defined in Note 1(e).

(5)Excludes acquired development land as detailed below.

(6)The Company acquired these operating properties along with two land parcels, also in Sacramento, CA and San Francisco, CA, in connection with its acquisition of Tulloch Corporation in June 2022. Size and cost are presented on an aggregate basis for the properties located in Sacramento, CA and San Francisco, CA, respectively. In consideration for this acquisition, the Company assumed a $60,000,000 loan and issued 1,868,809 shares of the Company’s common stock. The acquisition date fair value of the loan assumed was $60,000,000, and the acquisition date fair value of the common shares, which was based on the closing share price on the acquisition date, was $303,756,000.

Sales of real estate properties [Table]

A summary of operating properties sold during for the years ended December 31, 2024, 2023 and 2022 follows:


		(Unaudited)
REAL ESTATE PROPERTIES SOLD	Location	Size	Date Sold	Net Sales Price		Basis	Recognized Gain
		(Square feet)		(In thousands)
2024
Interchange Business Park and Metro Airport Commerce Center	Jackson, MS	159,000	03/05/2024	$	13,614	4,863	8,751
2023
World Houston 23	Houston, TX	125,000	03/31/2023	$	9,327	4,518	4,809
Ettie Business Center	San Francisco, CA	29,000	11/20/2023	11,638		8,845	2,793
Los Angeles Corporate Center	Los Angeles, CA	77,000	12/29/2023	16,006		5,643	10,363
Total for 2023		231,000		$	36,971	19,006	17,965
2022
Metro Business Park	Phoenix, AZ	189,000	01/06/2022	$	32,851	5,880	26,971
Cypress Creek Business Park (1)	Fort Lauderdale, FL	56,000	03/31/2022	5,282		1,901	3,381
World Houston 15 East	Houston, TX	42,000	05/11/2022	12,873		2,226	10,647
Total for 2022		287,000		$	51,006	10,007	40,999

(1)Cypress Creek Business Park is located on a ground lease. In conjunction with the sale of the property, the Company fully amortized the associated right-of-use asset and liability of $1,745,000.

Development and value-add properties summary

A summary of the Company’s Development and Value-Add Properties for the year ended December 31, 2024 follows:


	(Unaudited)			(Unaudited)
	Actual or Estimated Building Size	Cumulative Costs Incurred as of 12/31/2024		Projected Total Costs
	(Square feet)	(In thousands)
Lease-up	1,721,000	$	223,889	$	239,400
Under construction	2,422,000	200,179		369,300
Total lease-up and under construction	4,143,000	424,068		$	608,700
Prospective development (primarily land)	9,919,000	250,404
Total Development and value-add properties as of December 31, 2024	14,062,000	$	674,472

Total Development and value-add properties transferred to Real estate properties during the year ended December 31, 2024	1,519,000	$	199,971	(1)

(1) Represents cumulative costs at the date of transfer.

Future Minimum Ground Lease Payments

The following schedule indicates approximate future minimum ground lease payments, including renewal periods, for these properties by year as of December 31, 2024:


Years Ending December 31,	(In thousands)
2025	$	2,821
2026	2,951
2027	2,968
2028	3,040
2029	3,102
Thereafter	152,366
Total minimum payments	167,248
Imputed interest (1)	(127,861)
Total ground lease liabilities	$	39,387

(1)As the Company’s leases do not provide an implicit rate, in order to calculate the present value of the remaining ground lease payments, the Company used its incremental borrowing rate, adjusted for a number of factors, including the long-term nature of the ground leases and the Company’s estimated borrowing costs, to determine the imputed interest for its ground leases. The weighted-average discount rates for the Company's ground leases were 6.82% and 5.99% as of December 31, 2024 and 2023, respectively.