Real Estate

6 Months Ended

Jun. 30, 2026

3. Real Estate

Acquisitions

During the six months ended June 30, 2026, there were no operating property acquisitions. During the six months ended June 30, 2025, the Company acquired the following operating properties, through direct asset acquisitions (in thousands):


					Purchase Price
Property Name	Location	Month Acquired	Cash		Debt		Other		Total		GLA*
Markets at Town Center (1)	Jacksonville, FL	Jan-25	$	108,238	$	-	$	-	$	108,238		254
College Park Land (2)	Las Vegas, NV	Jan-25		12,746		-		1,428		14,174		-
Francisco Center Land (2)	Las Vegas, NV	Jan-25		11,588		-		593		12,181		-
			$	132,572	$	-	$	2,021	$	134,593		254

* Gross leasable area (“GLA”)

(1)

The Company had a mortgage receivable of $15.0 million related to this property, which was repaid by the seller at closing.

(2)

The Company acquired the fee interest in two properties under finance ground lease agreements through the exercise of a call option for an aggregate purchase price of $24.2 million. In addition, the Company had a mortgage receivable of $3.4 million, which was repaid by the seller at closing. This transaction also resulted in a decrease in Other assets of $26.2 million and a decrease in Other liabilities of $24.2 million on the Company’s Condensed Consolidated Balance Sheets related to the finance right-of-use assets and lease liabilities (included in Other). See Footnote 8 of the Notes to Condensed Consolidated Financial Statements for further details.

The purchase price for these acquisitions was allocated to real estate and related intangible assets acquired and liabilities assumed, as applicable, in accordance with our accounting policies for asset acquisitions. The purchase price allocation for properties acquired during the six months ended June 30, 2025 were as follows (in thousands):


	Allocation as of June 30, 2025			Weighted Average Useful Life (in Years)
Land	$	48,844		n/a
Buildings		68,659			50.0
Building improvements		4,700			45.0
Tenant improvements		5,390			6.2
In-place leases		12,859			4.9
Above-market leases		457			5.4
Below-market leases		(6,316	)		15.8
Net assets acquired	$	134,593

Dispositions

The table below summarizes the Company’s disposition activity relating to consolidated operating properties and parcels for the six months ended June 30, 2026 and 2025 (dollars in millions):


	Six Months Ended June 30,
	2026		2025
Aggregate sales price/gross fair value (1)	$	54.9	$	51.9
Gain on sale of properties (2)	$	17.1	$	39.8
Number of operating properties sold		1		1
Number of parcels sold		3		2

(1)

Includes $8.0 million and $48.7 million of Internal Revenue Code 26 U.S.C. §1031 proceeds held in escrow through sale of real estate interests as of June 30, 2026 and June 30, 2025, respectively.

(2)

Before noncontrolling interests of $0.1 million and taxes of $0.4 million for the six months ended June 30, 2025.

Impairments

During the six months ended June 30, 2026 and 2025, the Company recognized aggregate impairment charges related to adjustments to property carrying values of $1.1 million and $8.2 million, respectively, for which the Company’s estimated fair values were primarily based upon signed contracts or letters of intent from third-party offers. These adjustments to property carrying values were recognized in connection with the Company’s efforts to market certain properties and management’s assessment as to the likelihood and timing of such potential transactions. See Footnote 13 of the Notes to Condensed Consolidated Financial Statements for fair value measurements disclosure.

Assets Held-For-Sale

At June 30, 2026, the Company had a land parcel classified as held-for-sale at a net carrying amount of $3.4 million, which is included in Other assets on the Company’s Condensed Consolidated Balance Sheets.