Investments in Real Estate

3 Months Ended

Mar. 31, 2026

A. Acquisitions of Real Estate

Below is a summary of our acquisitions for the three months ended March 31, 2026 (unaudited):


	Number of Properties	Investment ($ in millions)		Weighted Average Lease Term (Years)
Acquisitions
U.S. real estate	109	$	578.1	10.1
Europe real estate	43	1,001.9		7.6
Total real estate acquisitions	152	$	1,580.0	8.5

Real estate properties under development
U.S. real estate	20	$	31.0	17.5
Europe real estate	17	58.0		12.1
Total real estate properties under development	37	$	89.0	14.1

Total (1)	189	$	1,669.0	8.8

(1)Our clients occupying the new properties are 66.7% retail, 33.1% industrial, and 0.2% other property types based on net operating income. Approximately 45% of the net operating income generated from acquisitions during the three months ended March 31, 2026 was from investment grade rated clients, their subsidiaries, or affiliated companies at the date of acquisition.

The aggregate purchase price, including properties acquired through takeout financing and reported in properties under development in the table above, was allocated as follows (in millions):


	Acquisitions - USD		Acquisitions - Sterling		Acquisitions - Euro
Land	$	128.8	£	106.5	€	140.6
Buildings and improvements	373.5		191.7		313.0
Lease intangible assets (1)	83.8		47.0		62.3
Other assets (2)	2.4		—		—
Lease intangible liabilities (3)	(9.5)		(7.5)		(19.7)
Other liabilities (4)	(0.8)		—		—
Total	$	578.2	£	337.7	€	496.2

(1)The weighted average amortization period for acquired lease intangible assets is 9.8 years.

(2)USD-denominated other assets consists entirely of $2.4 million of financing receivables allocated to sales-leaseback transactions.

(3)The weighted average amortization period for acquired lease intangible liabilities is 13.8 years.

(4)USD-denominated other liabilities consists entirely of $0.8 million deferred rent on certain below-market leases.

The aggregate Sterling-denominated purchase price of the assets acquired during the three months ended March 31, 2026 included $15.2 million contingent consideration obligations related to leasing activities for four U.K. retail park properties acquired, all of which was deemed estimable and probable of payment and therefore was accrued as of March 31, 2026.

The properties acquired during the three months ended March 31, 2026 generated total revenue and net income of $5.4 million and $1.5 million, respectively.

B. Investments in Existing Properties

During the three months ended March 31, 2026, we capitalized costs of $22.7 million on existing properties in our portfolio, consisting of $19.8 million for building improvements, $2.8 million for re-leasing costs, and $0.1 million for recurring capital expenditures. In comparison, during the three months ended March 31, 2025, we capitalized costs of $30.7 million on existing properties in our portfolio, consisting of $29.8 million for building improvements, $0.9 million for re-leasing costs, and less than $0.1 million for recurring capital expenditures.

C. Properties with Existing Leases

The value of the in-place and above-market leases is recorded to 'Lease intangible assets, net' on our consolidated balance sheets, and the value of the below-market leases is recorded to 'Lease intangible liabilities, net' on our consolidated balance sheets.

The values of the in-place leases are amortized as depreciation and amortization expense. The amounts amortized to expense for all of our in-place leases for the three months ended March 31, 2026 and 2025 were $204.3 million and $213.2 million, respectively.

The values of the above-market and below-market leases are amortized over the term of the respective leases, including any bargain renewal options, as an adjustment to rental revenue in our consolidated statements of income and comprehensive income. The amounts amortized as a net decrease to rental revenue for capitalized above-market and below-market leases for the three months ended March 31, 2026 and 2025 were $6.1 million and $9.7 million, respectively.

The following table presents the estimated impact during the next five years and thereafter related to the amortization of the above-market and below-market lease intangibles and the amortization of the in-place lease intangibles as of March 31, 2026 (in thousands):


	Net increase (decrease) to rental revenue		Increase to amortization expense
2026	$	(31,831)	$	569,530
2027	(40,527)		657,519
2028	(31,297)		558,446
2029	(27,393)		481,356
2030	(15,224)		402,048
Thereafter	351,054		1,703,751
Total	$	204,782	$	4,372,650

D. Gain on Sales of Real Estate

The following table summarizes our properties sold during the periods indicated below (dollars in millions):


	Three months ended March 31,
		2026		2025
Number of properties		97		55
Net sales proceeds		$	188.0	$	92.6
Gain on sales of real estate		$	35.6	$	22.5