REAL ESTATE INVESTMENTS

6 Months Ended

Jun. 30, 2025

Real Estate [Abstract]

REAL ESTATE INVESTMENTS

3. REAL ESTATE INVESTMENTS

As of June 30, 2025 and December 31, 2024, the gross carrying value of the Properties, reflected in the line item “Operating properties” in the Company's consolidated balance sheets, was as follows (in thousands):

	June 30, 2025		December 31, 2024
Land	$	344,610	$	361,861
Building and improvements	2,436,533		2,551,089
Tenant improvements	479,354		461,830
Operating properties	$	3,260,497	$	3,374,780
Assets held for sale - real estate investments	53,886		—
Total	$	3,314,383	$	3,374,780

Dispositions

During the three months ended June 30, 2025, the Company sold a 120,559 square foot office property located in the Austin, Texas segment for a gross sales price of $17.6 million. Prior to the sale and during the three months ended June 30, 2025, the Company recognized a provision for impairment of $13.4 million on the property based upon the executed agreement of sale.

Held for Use Impairment

For the quarter ended June 30, 2025, the Company recognized impairment losses totaling $34.1 million on two properties located in the Austin, Texas segment. These impairments are due to a change in our anticipated hold period for the assets as a result of the Company's sale consideration or possible residential conversion of the properties. The Company determined that the carrying values exceeded the Company's estimated fair values of the properties. The estimated fair value is considered Level 3 in accordance with ASC 820 and was determined by estimating discounted cash flows using significant unobservable inputs, which were the discount rate of 12.50% and residual capitalization rate of 9.50%.

Held -for-sale

As of June 30, 2025, the Company was under an agreement to sell an office property located in the Austin, Texas segment to an unaffiliated third party for $55.1 million and has classified the property as held for sale on the consolidated balance sheets. As of June 30, 2025, the carrying value of the property was in excess of the estimated fair value less cost to sell. As a result, an impairment loss of $15.9 million was recognized. The estimated fair value is considered Level 3 in accordance with ASC 820 and was based upon the executed agreement of sale.

The following is a summary of the property classified as held for sale as of June 30, 2025 (in thousands):

	Held for Sale Property
	June 30, 2025
ASSETS HELD FOR SALE
Real estate investments:
Operating properties	$	58,801
Accumulated depreciation	(8,979)
Operating real estate investments, net	49,822
Construction-in-progress	82
Total real estate investments, net	49,904
Deferred costs, net	1,261
Intangible assets, net	328
Accrued Rent Receivable	2,393
Total assets held for sale, net	$	53,886
LIABILITIES HELD FOR SALE
Intangible liabilities, net	(182)
Total liabilities held for sale, net	$	(182)