10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission file number: 333-136110

GTJ REIT, INC.

(Exact name of registrant as specified in its charter)

Maryland	20-5188065
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1399 Franklin Avenue

Suite 100

Garden City, New York

11530

(Address of principal executive offices)

(Zip Code)

(516) 693-5500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	None	None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 13,345,980 shares of common stock as of August 6, 2024.

GTJ REIT, INC. AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2024

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	2
	Condensed Consolidated Balance Sheets at June 30, 2024 (Unaudited) and December 31, 2023	2
	Condensed Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended June 30, 2024 and 2023	3
	Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) for the Three and Six Months Ended June 30, 2024 and 2023	4
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2024 and 2023	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	32
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3.	Defaults Upon Senior Securities	33
Item 4.	Mine Safety Disclosures	33
Item 5.	Other Information	33
Item 6.	Exhibits	34
Signatures		35

1

Part I – Financial Information

Item 1. Financial Statements

GTJ REIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

	June 30,			December 31,
	2024			2023
	(Unaudited)
ASSETS
Real estate, at cost:
Land	$	223,308		$	223,308
Buildings and improvements		312,845			312,275
Total real estate, at cost		536,153			535,583
Less: accumulated depreciation and amortization		(109,349	)		(104,163	)
Net real estate held for investment		426,804			431,420
Cash and cash equivalents		49,581			27,913
Restricted cash		973			1,400
Rental income in excess of amount billed		16,121			16,123
Acquired lease intangible assets, net		5,197			5,836
Investment in unconsolidated affiliate		3,788			3,753
Right-of-use asset - operating lease, net		2,422			2,555
Other assets		17,667			18,237
Total assets	$	522,553		$	507,237
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	490,369		$	369,423
Secured revolving credit facility		—			40,000
Term loan payable, net		—			49,783
Accounts payable and accrued expenses		4,327			5,234
Dividends payable		1,602			1,333
Acquired lease intangible liabilities, net		717			1,079
Right-of-use liability - operating lease		2,614			2,739
Other liabilities		5,503			6,032
Total liabilities		505,132			475,623
Commitments and contingencies (Note 9)		—			—
Equity:
Series A, Preferred stock, $.0001 par value; 500,000 shares authorized; none    issued and outstanding		—			—
Series B, Preferred stock, $.0001 par value; non-voting; 6,500,000 shares authorized;    none issued and outstanding		—			—
Common stock, $.0001 par value; 100,000,000 shares authorized; 13,345,980 and 13,326,965     shares issued and outstanding at June 30, 2024 and December 31, 2023		1			1
Additional paid-in capital		131,171			132,217
Distributions in excess of net income		(118,080	)		(107,330	)
Total stockholders’ equity		13,092			24,888
Noncontrolling interest		4,329			6,726
Total equity		17,421			31,614
Total liabilities and equity	$	522,553		$	507,237

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

GTJ REIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three and Six Months Ended June 30, 2024 and 2023

(Unaudited, amounts in thousands, except share and per share data)

	Three Months Ended,						Six Months Ended,
	June 30,						June 30,
	2024			2023			2024			2023
Revenues:
Rental income	$	19,346		$	18,579		$	39,318		$	37,138
Total revenues		19,346			18,579			39,318			37,138
Operating Expenses:
Property operating expenses		3,732			3,611			7,626			7,227
General and administrative		8,341			4,143			11,120			6,640
Depreciation and amortization		3,477			3,459			6,966			6,808
Total operating expenses		15,550			11,213			25,712			20,675
Operating income		3,796			7,366			13,606			16,463
Interest expense		(6,665	)		(5,981	)		(13,338	)		(11,848	)
Equity in earnings of unconsolidated affiliate		55			34			110			73
Other income		700			210			1,051			643
Net (loss) income		(2,114	)		1,629			1,429			5,331
Less: Net (loss) income attributable to noncontrolling interest		(381	)		466			182			1,568
Net (loss) income attributable to common stockholders	$	(1,733	)	$	1,163		$	1,247		$	3,763
Net (loss) income per common share attributable to common    stockholders - basic earnings per share	$	(0.13	)	$	0.09		$	0.09		$	0.28
Net (loss) income per common share attributable to common    stockholders - diluted earnings per share	$	(0.13	)	$	0.09		$	0.09		$	0.28
Weighted average common shares outstanding – basic		13,328,389			13,327,529			13,327,677			13,330,626
Weighted average common shares outstanding – diluted		13,328,389			13,363,179			13,512,566			13,366,275

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

GTJ REIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Three and Six Months Ended June 30, 2024 and 2023

(Unaudited, amounts in thousands, except share data)

			Common Stock								Distributions			Total
	Preferred		Outstanding			Par		Additional-			in Excess of			Stockholders’			Noncontrolling			Total
	Stock		Shares			Value		Paid-In-Capital			Net Income			Equity			Interest			Equity
Balance at January 1, 2024	$	—		13,326,965		$	1	$	132,217		$	(107,330	)	$	24,888		$	6,726		$	31,614
Common stock dividends		—		—			—		—			(10,395	)		(10,395	)		—			(10,395	)
Stock-based compensation		—		—			—		313			—			313			—			313
Distributions to noncontrolling interest		—		—			—		—			—			—			(2,082	)		(2,082	)
Net income		—		—			—		—			2,980			2,980			563			3,543
Reallocation of equity		—		—			—		(52	)		—			(52	)		52			—
Balance at March 31, 2024	$	—		13,326,965		$	1	$	132,478		$	(114,745	)	$	17,734		$	5,259		$	22,993
Common stock dividends		—		—			—		—			(1,602	)		(1,602	)		—			(1,602	)
Repurchases - common stock		—		(107,425	)		—		(2,693	)		—			(2,693	)		—			(2,693	)
Stock-based compensation		—		126,440			—		1,160			—			1,160			—			1,160
Distributions to noncontrolling interest		—		—			—		—			—			—			(323	)		(323	)
Net (loss)		—		—			—		—			(1,733	)		(1,733	)		(381	)		(2,114	)
Reallocation of equity		—		—			—		226			—			226			(226	)		—
Balance at June 30, 2024	$	—		13,345,980		$	1	$	131,171		$	(118,080	)	$	13,092		$	4,329		$	17,421
			Common Stock								Distributions			Total
	Preferred		Outstanding			Par		Additional-			in Excess of			Stockholders’			Noncontrolling			Total
	Stock		Shares			Value		Paid-In-Capital			Net Income			Equity			Interest			Equity
Balance at January 1, 2023	$	—		13,333,757		$	1	$	141,812		$	(107,082	)	$	34,731		$	31,420		$	66,151
Common stock dividends		—		—			—		—			(5,734	)		(5,734	)		—			(5,734	)
Stock-based compensation		—		—			—		311			—			311			—			311
Distributions to noncontrolling interest		—		—			—		—			—			—			(2,565	)		(2,565	)
Net income		—		—			—		—			2,600			2,600			1,102			3,702
Balance at March 31, 2023	$	—		13,333,757		$	1	$	142,123		$	(110,216	)	$	31,908		$	29,957		$	61,865
Common stock dividends		—		—			—		—			(1,333	)		(1,333	)		—			(1,333	)
Repurchases - common stock		—		(95,011	)		—		(2,000	)		—			(2,000	)		—			(2,000	)
Stock-based compensation		—		95,163			—		966			—			966			—			966
Distributions to noncontrolling interest		—		—			—		—			—			—			(601	)		(601	)
Net income		—		—			—		—			1,163			1,163			466			1,629
Reallocation of equity		—		—			—		(148	)		—			(148	)		148			—
Balance at June 30, 2023	$	—		13,333,909		$	1	$	140,941		$	(110,386	)	$	30,556		$	29,970		$	60,526

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

GTJ REIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended June 30, 2024 and 2023

(Unaudited, amounts in thousands)

	Six Months Ended
	June 30,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,429		$	5,331
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		5,227			5,194
Amortization of intangibles and deferred charges		2,754			2,272
Stock-based compensation		1,473			1,277
Non-cash lease expense		8			14
Rental income (in excess of) amount billed		(6	)		(382	)
Distributions from unconsolidated affiliate		75			100
Income from equity investment in unconsolidated affiliate		(110	)		(73	)
Changes in operating assets and liabilities:
Other assets		(401	)		25
Accounts payable and accrued expenses		(895	)		(2,866	)
Other liabilities		(532	)		2,792
Net cash provided by operating activities		9,022			13,684
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for improvements to real estate		(582	)		(1,002	)
Deposit for property acquisition		(500	)		—
Expenditures for property acquisitions		—			(29,007	)
Net cash used in investing activities		(1,082	)		(30,009	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of mortgage principal		(1,260	)		(797	)
Repurchase of common stock		(2,693	)		(2,000	)
Financing deposits and costs		—			(280	)
Financing costs from mortgage notes payable		(3,624	)		(54	)
Proceeds from mortgage notes payable		125,000			—
Payment of revolving credit facility		(40,000	)		—
Payment of term loan payable		(50,000	)		—
Cash distributions to noncontrolling interest		(2,394	)		(3,287	)
Cash dividends paid		(11,728	)		(7,067	)
Net cash provided by (used in) financing activities		13,301			(13,485	)
Net increase (decrease) in cash and cash equivalents, including restricted cash		21,241			(29,810	)
Cash and cash equivalents including restricted cash of $1,400 and $986, respectively, at the    beginning of period		29,313			60,490
Cash and cash equivalents including restricted cash of $973 and $1,283, respectively, at the    end of period	$	50,554		$	30,680
SUPPLEMENTAL DISCLOSURE CASH FLOW INFORMATION:
Cash paid for interest	$	11,971		$	11,144
Non-cash expenditures for real estate	$	51		$	565
Right-of-use asset and liability	$	2,614		$	2,857

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

GTJ REIT, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. ORGANIZATION AND DESCRIPTION OF BUSINESS:

GTJ REIT, Inc. (the “Company” or “GTJ REIT”) was incorporated on June 26, 2006, under the Maryland General Corporation Law. The Company is focused primarily on the acquisition, ownership, management, and operation of commercial real estate located in New York, New Jersey, Connecticut, Delaware and North Carolina. Any references to square footage, property count, or occupancy percentages, and any amounts derived from these values in these notes to the condensed consolidated financial statements, are outside the scope of our independent registered public accounting firm’s review.

The Company has elected to be treated as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended (the “Code”). The Company elected December 31 as its fiscal year end. Under the REIT operating structure, the Company is permitted to deduct the dividends paid to its stockholders when determining its taxable income. Assuming dividends equal or exceed the Company’s taxable income, the Company generally will not be required to pay federal corporate income taxes on such income.

On January 17, 2013, the Company closed on a business combination with Wu/Lighthouse Portfolio, LLC, in which a limited partnership (the “Operating Partnership”) owned and controlled by the Company, acquired all outstanding ownership interests of a portfolio consisting of 25 commercial properties (the “Acquired Properties”) located in New York, New Jersey and Connecticut, in exchange for 33.29% of the outstanding limited partnership interest in the Operating Partnership. The outstanding limited partnership interest in the Operating Partnership exchanged for the Acquired Properties was increased to 33.78% due to post-closing adjustments. The subsequent redemptions of certain shares of GTJ REIT common stock and purchases of a portion of the outstanding limited partnership interest have resulted in a net decrease to the outstanding limited partnership interest in the Operating Partnership to 16.80% as of June 30, 2024. As a result of this transaction, the Company’s then existing 7 properties and the subsequent acquisition of 19 properties and the sale of 2 properties from 2014 through June 30, 2024, the Company currently owns a 83.20% interest in a total of 49 properties consisting of approximately 6.3 million square feet (unaudited) of primarily industrial properties on approximately 399 acres (unaudited) of land in New York, New Jersey, Connecticut, Delaware and North Carolina. The Operating Partnership also owns, through a joint venture, a 50% interest in a state-of-the-art industrial building in Piscataway, New Jersey. At June 30, 2024, subject to certain anti-dilutive and other provisions contained in the governing agreements, the limited partnership interest in the Operating Partnership may be converted in the aggregate, into approximately 1.5 million shares of the Company’s common stock or approximately 1.2 million shares of the Company’s Series B preferred stock based upon the class of units owned.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Basis of Presentation:

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the financial statements of the Company, its wholly owned subsidiaries, and the Operating Partnership, as the Company makes all operating and financial decisions for (i.e., exercises control over) the Operating Partnership. All material intercompany transactions have been eliminated. The ownership interests of the other investors in the Operating Partnership are presented as noncontrolling interests.

The accompanying unaudited condensed consolidated interim financial information has been prepared according to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations. The Company’s management believes that the disclosures presented in these unaudited condensed consolidated financial statements are adequate to make the information presented not misleading. In management’s opinion, all adjustments and eliminations, consisting only of normal recurring adjustments, necessary to present fairly the financial position and results of operations for the reported periods have been included. The results of operations for such interim periods are not necessarily indicative of the results for the full year. The accompanying unaudited condensed consolidated interim financial information should be read in conjunction with the Company’s December 31, 2023, audited consolidated financial statements, as previously filed with the SEC on Form 10-K on March 21, 2024.

6

Use of Estimates:

The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, and related disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. All of these estimates reflect management’s best judgment about current economic and market conditions and their effects based on information available as of the date of these condensed consolidated financial statements. If such conditions persist longer or deteriorate further than expected, it is reasonably possible that the judgments and estimates could change, which may result in impairments of certain assets. Significant estimates include the useful lives of long-lived assets including property, equipment and intangible assets, impairment of assets, collectability of receivables, contingencies, stock-based compensation, and fair value of assets and liabilities acquired in business combinations and asset acquisitions.

Reclassification:

None of the prior year amounts have been reclassified for consistency with the current year presentation.

Real Estate:

Real estate assets are stated at cost, less accumulated depreciation and amortization. All costs related to the improvement or replacement of real estate properties, including interest expense on development properties, are capitalized. Acquisition related costs are capitalized for asset acquisitions. Additions, renovations, and improvements that improve the value and/or extend the useful life of a property are also capitalized. Expenditures for ordinary maintenance, repairs, and improvements that do not materially prolong the normal useful life of an asset are charged to operations as incurred.

The Company capitalizes all direct costs of real estate under development until the end of the development period. In addition, the Company capitalizes the indirect cost of insurance and real estate taxes allocable to real estate under development during the development period. The Company also capitalizes interest using the avoided cost method for real estate under development during the development period. The Company will cease the capitalization of these costs when development activities are substantially completed and the property is available for occupancy by tenants, but no later than one year from the completion of major construction activity at which time the property is placed in service and depreciation commences. If the Company suspends substantially all activities related to development of a qualifying asset, the Company will cease capitalization of these costs until activities are resumed. The Company had no real estate under development as of June 30, 2024 and December 31, 2023.

Upon the acquisition of real estate properties, the accumulated cost of the real estate purchased is allocated to the acquired tangible assets (generally consisting of land, buildings and building improvements, and tenant improvements) and identified intangible assets and liabilities (generally consisting of above-market and below-market leases and the origination value of in-place leases) on a relative fair value basis in accordance with GAAP. The Company utilizes methods similar to those used by independent appraisers in estimating the fair value of acquired assets and liabilities. The fair value of the tangible assets of an acquired property considers the value of the property “as-if-vacant.” In allocating the purchase price to identified intangible assets and liabilities of an acquired property, the value of above-market and below-market leases is estimated based on the differences between contractual rentals and estimated market rents over the applicable lease term discounted back to the date of acquisition utilizing a discount rate adjusted for the credit risk associated with the respective tenants. Fixed-rate renewal options have been included in the calculation of the fair value of acquired leases where applicable. The value of in-place leases is based on the Company’s evaluation of the specific characteristics of each tenant’s lease. The aggregate value of in-place leases is measured based upon factors which include the avoided costs associated with lack of revenue over a market-oriented lease-up period, current market conditions, avoided leasing commissions, and other avoided costs common in similar leasing transactions.

Mortgage notes payable assumed in connection with acquisitions are recorded at their fair value using current market interest rates for similar debt at the time of acquisitions.

7

The capitalized above-market lease values are amortized as a reduction of rental revenue over the remaining term of the respective leases and the capitalized below-market lease values are amortized as an increase to rental revenue over the remaining term of the respective leases. The values of in-place leases are amortized over the remaining term of the respective leases and are included in depreciation and amortization in the accompanying condensed consolidated statements of operations. If a tenant terminates its lease prior to its contractual expiration date, any unamortized balance of the related intangible assets or liabilities is recorded as income or expense in the period. The total net impact to rental revenues due to the amortization of above and below-market leases was a net increase of approximately $0.3 million for both the six months ended June 30, 2024 and June 30, 2023. The total amortization of in-place leases was $0.6 million and $0.7 million for the six months ended June 30, 2024 and June 30, 2023, respectively.

As of June 30, 2024, above-market and in-place leases of $0.8 million and $4.4 million (net of accumulated amortization), respectively, are included in acquired lease intangible assets, net in the accompanying condensed consolidated balance sheets. As of December 31, 2023, above-market and in-place leases of approximately $0.8 million and $5.0 million (net of accumulated amortization), respectively, are included in acquired lease intangible assets, net in the accompanying condensed consolidated balance sheets. As of June 30, 2024, and December 31, 2023, approximately $0.7 million and $1.1 million (net of accumulated amortization), respectively, relating to below-market leases are included in acquired lease intangible liabilities, net in the accompanying condensed consolidated balance sheets.

The following table presents the projected impact for the remainder of 2024, the next five years and thereafter related to the net increase to rental revenue from the amortization of the acquired above-market and below-market lease intangibles and the increase to amortization expense of the in-place lease intangibles for properties owned at June 30, 2024 (in thousands):

	Net increase (decrease) to rental revenues			Increase to amortization expense
Remainder of 2024	$	120		$	517
2025		64			928
2026		(13	)		798
2027		4			564
2028		4			440
2029		(46	)		372
Thereafter		(171	)		823
	$	(38	)	$	4,442

Investment in Unconsolidated Affiliate:

The Company has an investment in an entity that is accounted for under the equity method of accounting. The equity method of accounting is used when an investor has influence, but not control, over the investee. The Company records its share of the profits and losses of the investee in the period when these profits and losses are also reflected in the accounts of the investee.

On February 28, 2018, the Company purchased a 50% interest in Two CPS Developers LLC (the “Investee”) for $5.25 million. The Company has the ability to exercise significant influence over the Investee, does not have a controlling interest in the Investee, and the Investee is not a variable interest entity. Therefore, the Company accounts for this investment under the equity method of accounting. The Company recorded income from this investment of $0.1 million for the six months ended June 30, 2024 and less than $0.1 million for the six months ended June 30, 2023.

The total assets and liabilities of the Company’s investment in unconsolidated affiliate as of June 30, 2024 were $16.3 million and $8.8 million, respectively. Total revenues and expenses of the Company’s investment in unconsolidated affiliate for the six months ended June 30, 2024 were approximately $0.9 million and $0.7 million, respectively. The total assets and liabilities of the Company’s investment in unconsolidated affiliate as of December 31, 2023 were $16.5 million and $9.0 million, respectively. Total revenues and expenses of the Company’s investment in unconsolidated affiliate for the six months ended June 30, 2023 were $0.8 million and $0.7 million, respectively.

Depreciation and Amortization:

The Company uses the straight-line method for depreciation and amortization. Properties and property improvements are depreciated over their estimated useful lives, which range from 5 to 40 years. Furniture, fixtures, and equipment are depreciated over estimated useful lives that range from 5 to 10 years. Tenant improvements are amortized over the shorter of the remaining non-cancellable term of the related leases or their useful lives.

8

Real Estate Impairment:

Management reviews each real estate investment for impairment whenever events or circumstances indicate that the carrying value of a real estate investment may not be recoverable. Significant management judgment is involved in determining if impairment indicators exist, assessing investments for recoverability, and, if required, measuring the fair value of the real estate investments. The review of recoverability is based on an estimate of the undiscounted future cash flows that are expected to result from the real estate investment’s use and eventual disposition. Such cash flow analyses consider assumptions such as expected future market rents, future revenue, market capitalization rates and holding periods, as well as the effects of leasing demand, competition and other factors. If an impairment event exists due to the projected inability to recover the carrying value of a real estate investment, an impairment loss is recorded to the extent that the carrying value exceeds estimated fair value. Management is required to make subjective assessments as to whether there are impairments in the value of the Company’s real estate holdings. These assessments could have a direct impact on net income, because an impairment loss is recognized in the period that the assessment is made. Management has determined that there was no impairment relating to its long-lived assets at June 30, 2024 or December 31, 2023.

Deferred Charges:

Deferred charges consist principally of leasing commissions, which are amortized over the life of the related tenant leases, and financing costs, relating to the Company’s secured revolving credit facility, which are amortized over the terms of the respective debt agreements. These deferred charges are included in other assets on the condensed consolidated balance sheets. If leases or loans are terminated, the unamortized charges are expensed.

Debt Issuance Costs:

Debt issuance costs relate to the Company’s mortgage notes payable, which are amortized over the term of the respective debt agreements. These debt issuance costs are included in mortgage notes payable, net on the condensed consolidated balance sheets. If mortgage notes payable are extinguished, the unamortized charges are expensed.

Reportable Segments:

As of June 30, 2024, the Company operates in one reportable segment, commercial real estate.

Revenue Recognition:

Rental income includes the base rent that each tenant is required to pay in accordance with the terms of their respective leases reported on a straight-line basis over the term of the lease. In order for management to determine, in its judgment, that the unbilled rent receivable applicable to each specific property is collectible, management reviews billed and unbilled rent receivables and takes into consideration the tenant’s payment history and financial condition. If the Company determines that the collectability of a tenant’s lease payments is not probable, then the write-off of the entire tenant receivable, including straight-line rent receivable, is presented as a reduction of revenue rather than an operating expense on the condensed consolidated statements of operations. Rental income related to tenants where the collectability of lease payments is not deemed probable will be recorded on a cash basis. Some of the leases provide for additional contingent rental revenue in the form of percentage rents and increases based upon the consumer price index, subject to certain maximums and minimums. For the six months ended June 30, 2024, the Company determined that collectability of one former tenant's outstanding lease payments was not probable and, therefore, the Company recorded a write-off of the entire tenant receivable in the amount of $0.1 million and placed the tenant on the cash basis as of March 31, 2024. In addition, the Company received $0.6 million in February 2024 in full settlement of amounts due from a previous tenant that was placed on the cash basis during 2023.

Substantially all of the Company’s properties are subject to long-term net leases under which the tenant is typically responsible to pay for its pro rata share of real estate taxes, insurance, and ordinary maintenance and repairs for the property.

Property operating expense recoveries from tenants of common area maintenance, real estate taxes, and other recoverable costs are included in revenues in the period that the related expenses are incurred.

Tenant receivables at June 30, 2024 and December 31, 2023 were $1.1 million and $0.5 million, respectively, and are included in other assets in the accompanying condensed consolidated balance sheets.

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Future minimum contractual lease payments to be received by the Company (without taking into account straight-line rent, amortization of intangibles and tenant reimbursements) as of June 30, 2024, under operating leases for the remainder of 2024, the next five years, and thereafter are as follows (in thousands):

Remainder of 2024	$	31,384
2025		62,829
2026		62,010
2027		45,222
2028		37,743
2029		29,130
Thereafter		69,706
Total	$	338,024

Lease Accounting:

As lessor, the Company elected to utilize the practical expedient provided by Accounting Standards Update (“ASU”) 2018-11 related to the separation of lease and non-lease components and as a result, revenues related to leases are reported on one line within the condensed consolidated statements of operations.

The Company elected not to evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. Instead, these costs will be accounted for as if they are lessee costs. Consequently, the Company excludes from the consideration in the contract and from variable payments not included in the consideration in the contract all collections from lessees of taxes within the scope of the election and provides certain disclosures. The accounting policy election includes sales, use, value added, and some excise taxes but excludes real estate taxes.

The following table presents additional disclosures regarding the Company’s rental income for the six months ended June 30, 2024 and 2023 (in thousands):

	2024		2023
Fixed lease revenue	$	32,434	$	30,822
Variable lease revenue		6,884		6,316
Total lease revenue	$	39,318	$	37,138

As lessee, the Company elected to utilize the practical expedient in the implementation of ASU 2016-02 related to not separating non-lease components from the associated lease component. As lessee, the Company is a party to an office lease, effective October 1, 2021, having a term of ten years, with future lease obligations aggregating $3.0 million and $3.2 million as of June 30, 2024 and December 31, 2023, respectively (see Note 9). The Company has recorded a right-of-use asset and corresponding right-of-use liability at the present value of the remaining future minimum lease payments, based upon an incremental borrowing rate of 3.86%, of approximately $3.1 million as of October 1, 2021.

The following table presents the future lease obligations of the Company’s office lease for the remainder of 2024, the next five years, and thereafter (in thousands):

Remainder of 2024	$	177
2025		363
2026		374
2027		385
2028		397
2029		409
Thereafter		890
Total future minimum lease payments		2,995
Less imputed interest		381
Total right-of-use liability - operating lease	$	2,614

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The following table presents additional disclosures regarding the Company’s office leases for the six months ended June 30, 2024 and 2023 (in thousands):

	2024		2023
Operating lease costs	$	176	$	169
Variable lease costs		6		15
Total lease costs	$	182	$	184

Earnings Per Share Information:

The Company presents both basic and diluted earnings per share. Basic earnings per share excludes dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower per share amount. Restricted stock and stock options were included in the computation of diluted earnings per share.

Cash and Cash Equivalents:

The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents.

Restricted Cash:

Restricted cash reserves are required under certain loan agreements and include reserves used to pay real estate taxes, leasing costs and capital improvements.

Fair Value Measurement:

The Company determines fair value in accordance with Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurement.” This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity.

Assets and liabilities disclosed at fair values are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are defined by ASC 820-10-35, are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. Determining which category an asset or liability falls within the hierarchy requires significant judgment, and the Company evaluates its hierarchy disclosures each quarter. The three-tier fair value hierarchy is as follows:

Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Valuations based on unobservable inputs reflecting management’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

Income Taxes:

The Company is organized and conducts its operations to qualify as a REIT for federal income tax purposes. Accordingly, the Company is generally not subject to federal income taxation on the portion of its distributable income that qualifies as REIT taxable income, to the extent that it distributes at least 90% of its REIT taxable income to its stockholders and complies with certain other requirements as defined in the Code.

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The Company also participates in certain activities conducted by entities which elected to be treated as taxable subsidiaries under the Code. As such, the Company is subject to federal, state, and local taxes on the income from these activities.

The Company accounts for income taxes under the asset and liability method as required by the provisions of ASC 740-10-30. Under this method, deferred tax assets and liabilities are established based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.

ASC 740-10-65 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10-65, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740-10-65 also provides guidance on de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods and requires increased disclosures. As of June 30, 2024, and December 31, 2023, the Company had determined that no liabilities are required in connection with uncertain tax positions. As of June 30, 2024, the Company’s tax returns for the prior three years are subject to review by the Internal Revenue Service. Any interest and penalties would be expensed as incurred.

Concentrations of Credit Risk:

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, which from time-to-time exceed the federal depository insurance coverage. Beginning January 1, 2013, all interest and noninterest bearing transaction accounts deposited at an insured depository institution are insured by the Federal Deposit Insurance Corporation up to the standard maximum deposit amount of $250,000. Management believes that the Company is not exposed to any significant credit risk due to the credit worthiness of these financial institutions.

For the six months ended June 30, 2024, rental income of $4.8 million derived from five leases with the City of New York represented 12% of the Company’s rental income. For the six months ended June 30, 2023, rental income of $4.8 million derived from five leases with the City of New York represented 13% of the Company’s rental income.

For the six months ended June 30, 2024, rental income of $5.8 million derived from six leases with Federal Express represented 15% of the Company’s rental income. For the six months ended June 30, 2023, rental income of $5.3 million derived from five leases with Federal Express represented 14% of the Company’s rental income.

For the six months ended June 30, 2024, rental income of $3.9 million derived from one lease with Avis Rent-A-Car Systems, Inc. ("Avis") represented 10% of the Company’s rental income. For the six months ended June 30, 2023, rental income of $3.9 million derived from one lease with Avis represented 10% of the Company’s rental income.

Stock-Based Compensation:

The Company has a stock-based compensation plan which is described below in Note 6. The Company accounts for stock-based compensation in accordance with ASC Topic 718, “Compensation – Stock Compensation,” which establishes accounting for stock-based awards exchanged for employee services. Under the provisions of ASC Topic 718, share-based compensation cost is measured at the grant date or service-inception date (if it precedes the grant date), based on the fair value of the award. Share-based compensation is expensed at the grant date (for awards or portion of awards that vested immediately), or ratably over the respective vesting periods, determined from the start of the grant date or service-inception date through the date of vesting.

Recently Issued Accounting Pronouncements:

In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures.” The guidance requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on the income taxes paid. The guidance is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. ASU 2023-09 applies to all entities subject to income taxes. For public business entities, the new requirements will be effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the requirements will be effective for annual periods beginning after December 15, 2025. The guidance will be applied on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements.

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In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures,” which amends disclosure requirements about a public company’s reportable segments and addresses requests from investors for additionally detailed information about a reportable segment’s expenses. A public entity should apply the amendments provided by ASU 2023-07 retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements.

3. REAL ESTATE:

On January 18, 2023, the Company (through its Operating Partnership) acquired for cash a 435,600 square-foot parcel of land and land improvements located in Charlotte, NC for $28.7 million, exclusive of closing costs, which is subject to a 10-year lease to FedEx Ground expiring on July 31, 2032. There were no real estate acquisitions during the six months ended June 30, 2024.

The following table summarizes the Company’s allocation of the purchase price, including closing costs, of assets acquired during the six months ended June 30, 2023:

	Purchase Price
	Allocation
Land	$	17,383
Land improvements		8,029
Acquired lease intangible assets (1)		2,655
Other assets		940
Total consideration	$	29,007

(1)Acquired lease intangible assets include both in-place and above-market lease allocations.

4. MORTGAGE NOTES PAYABLE:

The following table sets forth a summary of the Company’s mortgage notes payable (in thousands):

				Principal			Principal
				Outstanding as of			Outstanding as of
Loan	Interest Rate			June 30, 2024			December 31, 2023			Maturity
People’s United Bank		4.18	%		14,518			14,710		10/15/2024
Allstate Life Insurance Company		4.00	%		34,381			34,808		4/1/2025
United States Life Insurance Company		3.82	%		39,000			39,000		1/1/2028
United States Life Insurance Company		4.25	%		32,348			32,632		4/1/2028
Transamerica Life Insurance Company		3.45	%		7,924			8,037		4/1/2030
American General Life Insurance Company		6.12	%		124,756			—		4/1/2031
American International Group 2022		4.63	%		225,000			225,000		9/1/2032
Transamerica Life Insurance Company 2023		5.40	%		25,000			25,000		8/1/2033
	Subtotal				502,927			379,187
	Unamortized loan costs				(12,558	)		(9,764	)
	Total			$	490,369		$	369,423

People’s United Bank Loan Agreement:

In connection with the acquisition in 2014 of an 84,000 square foot parking lot in Long Island City, Queens, NY, a wholly owned subsidiary of the Operating Partnership entered into a mortgage loan agreement with People’s United Bank in the aggregate amount of $15.5 million. The loan has a ten-year term and bears interest at 4.18%. Payments for the first seven years were interest only. Payments over the remaining three years of the term are based on a 25-year amortization schedule, with a balloon payment of $14.4 million due at maturity.

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Allstate Loan Agreement:

On March 13, 2015, in connection with the acquisition of six properties in Piscataway, NJ, the Operating Partnership closed on a $39.1 million cross-collateralized mortgage (the “Allstate Loan”) from Allstate Life Insurance Company, Allstate Life Insurance Company of New York and American Heritage Life Insurance Company. The Allstate Loan Agreement provided a secured facility with a 10-year term loan. During the first three years of the term of the loan, it required interest-only payments at the rate of 4% per annum. Following this period until the loan matures on April 1, 2025, payments will be based on a 30-year amortization schedule, with a balloon payment of $33.7 million due at maturity.

United States Life Insurance Company Loan Agreement:

On December 20, 2017 (the “Closing Date”), four wholly owned subsidiaries of the Operating Partnership (collectively, the “U.S. Life Borrowers”) entered in a loan agreement (the “U.S. Life Loan Agreement”) with the United States Life Insurance Company in the City of New York (the “Lender”).

The U.S. Life Loan Agreement provides for a secured loan facility in the principal amount of $39.0 million (the “Loan Facility”). The Loan Facility is a 10-year term loan that requires interest-only payments at the rate of 3.82% per annum. During the period from February 1, 2018 to December 1, 2027, payments of interest only on the principal balance of the U.S. Life Note (as defined below) will be payable in arrears, with the entire principal balance due and payable on January 1, 2028, the loan maturity date. Subject to certain conditions, the U.S. Life Borrowers may prepay the outstanding loan amount in whole on or after January 1, 2023, by providing advance notice of the prepayment to the Lender and remitting a prepayment premium equal to the greater of 1% of the then outstanding principal amount of the Loan Facility or the then present value of the U.S. Life Note (as defined below). The U.S. Life Borrowers paid the Lender a one-time application fee of $50,000 in connection with the Loan Facility. The U.S. Life Borrowers’ obligation to pay the principal, interest and other amounts under the Loan Facility is evidenced by the secured promissory note executed by the U.S. Life Borrowers as of the Closing Date (the “U.S. Life Note”). The U.S. Life Note is secured by certain mortgages encumbering the U.S. Life Borrowers’ properties (a total of four properties) located in New York, New Jersey and Delaware. In the event of default, the initial rate of interest on the U.S. Life Note will increase to the greatest of (i) 18% per annum, (ii) a per annum rate equal to 4% over the prime established rate, or (iii) a per annum rate equal to 5% over the original interest rate, all subject to the applicable state or federal laws. The U.S. Life Note contains other terms and provisions that are customary for instruments of this nature.

United States Life Insurance Company Loan Agreement:

On March 21, 2018, four wholly owned subsidiaries of the Operating Partnership refinanced the current outstanding debt on certain properties by entering into a loan agreement with the United States Life Insurance Company in the City of New York. The loan agreement provides for a secured loan facility in the principal amount of $33.0 million. The loan facility is a ten-year term loan that requires interest-only payments at the rate of 4.25% per annum on the principal balance for the first five years of the term and principal and interest payments (amortized over a 30-year period) during the second five years of the term. The entire principal balance is due and payable on April 1, 2028, the loan maturity date.

Transamerica Life Insurance Company Loan Agreement:

On March 24, 2020, two wholly owned subsidiaries of the Operating Partnership entered into a loan agreement with Transamerica Life Insurance Company. The loan agreement provides for a cross-defaulted, cross-collateralized portfolio of commercial mortgage loans in the aggregate principal amount of $8.4 million. The loan is evidenced by secured promissory notes. Each note is made by one of the borrowers and the combined principal amounts of the notes are equal to the amount of the loan.

The term of each note is ten years and requires (i) interest-only payments at the rate of 3.45% per annum on the principal balance of the note until April 1, 2022 and (ii) principal and interest payments (amortized over a 25-year period commencing at the end of the interest-only period) from May 1, 2022 through March 1, 2030. The entire principal balance of each note is due and payable on April 1, 2030, the loan maturity date. Subject to the terms of the loan agreement, each note may be prepaid in whole upon not less than 30 days’ prior written notice to the lender. Subject to certain exceptions, upon prepayment, the borrowers must remit a prepayment premium equal to the greater of (i) 1% of the prepayment amount and (ii) a yield protection amount calculated in accordance with the terms of the notes. If a default exists, the outstanding principal balance of the notes shall, at the option of the lender, bear interest at a rate equal to the lesser of (i) 10% per annum over the note rate and (ii) the highest rate of interest permitted to be paid or collected by applicable law with respect to the loan. The notes contain other terms and provisions that are customary for instruments of this nature.

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American General Life Insurance Company:

On March 15, 2024, three wholly owned subsidiaries of the Operating Partnership refinanced the current outstanding debt on certain properties by entering into a loan agreement with American General Life Insurance Company. The loan agreement provides for a cross-defaulted, cross-collateralized portfolio of commercial mortgage loans in the aggregate principal amount of $125.0 million.

The loan is a seven-year term loan that requires payments based on a 30-year amortization schedule at the rate of 6.12% per annum with the entire principal balance plus any accrued and unpaid interest due and payable on April 1, 2031. Subject to certain conditions, the outstanding loan amounts can be prepaid in whole on or before October 1, 2030, by providing advance notice of prepayment to the lender and remitting a prepayment premium equal to the greater of (i) 1.0% of the then outstanding principal amount of the loan or (ii) the then present value of the monthly payments of interest only which would be due from the prepayment date through October 1, 2030 based on the principal amount of the loan being prepaid on the prepayment date and assuming an interest rate per annum in the amount, if any, by which the interest rate exceeds the Yield Maintenance Treasury Rate (as defined in the Loan Agreement).

The Company used a portion of the proceeds from the refinancing to pay off $90 million of indebtedness that was outstanding under its senior secured credit facility with Keybank National Association, consisting of $40 million under the revolving credit facility and $50 million under the term loan.

American International Group 2022 Loan Agreement:

On August 5, 2022, certain subsidiaries of the Operating Partnership (collectively, the “Borrowers”) refinanced the current outstanding debt on certain properties (the "prior AIG Loan Agreements") by entering into new loan agreements (collectively the “American International Group 2022 Loan Agreement”) with AIG Asset Management (U.S.), LLC, as administrative agent, and the other lenders, American General Life Insurance Company, the Variable Annuity Life Insurance Company and the United States Life Insurance Company in the City of New York in a transaction that was accounted for as a loan modification. In connection with the modification, the Company incurred loan related costs of approximately $7.9 million, inclusive of a prepayment fee of $5.1 million under the prior AIG Loan Agreements.

The American International Group 2022 Loan Agreement provides for secured loans in the aggregate principal amount of $225.0 million (collectively, the “2022 AIG Loans”), consisting of a loan secured by certain properties in New York in the principal amount of $144.3 million and a loan secured by certain properties in Connecticut and New Jersey in the principal amount of $80.7 million. The 2022 AIG Loans require the Borrowers to make monthly interest-only payments at the rate of 4.63% per annum with the entire principal balance plus any accrued and unpaid interest due and payable on September 1, 2032. The 2022 AIG Loans are secured by certain mortgages encumbering 25 properties in New York, New Jersey and Connecticut.

Transamerica Life Insurance Company 2023 Loan Agreement:

On July 31, 2023, three wholly owned subsidiaries of the Operating Partnership entered into a loan agreement with Transamerica Life Insurance Company. The loan agreement provides for a cross-defaulted, cross-collateralized portfolio of commercial mortgage loans in the aggregate principal amount of $25.0 million. The loan is evidenced by secured promissory notes. Each note is made by one of the borrowers and the combined principal amounts of the notes are equal to the amount of the loan.

The term of each note is ten years and requires (i) interest-only payments at the rate of 5.4% per annum on the principal balance of the note until August 1, 2026 and (ii) principal and interest payments (amortized over a 30-year period commencing at the end of the interest-only period) from September 1, 2026 through July 1, 2033. The entire principal balance of each note is due and payable on August 1, 2033, the loan maturity date. Subject to the terms of the loan agreement, each note may be prepaid in whole upon not less than 30 days’ prior written notice to the lender. Subject to certain exceptions, upon prepayment, the borrowers must remit a prepayment premium equal to the greater of (i) 1% of the prepayment amount and (ii) a yield protection amount calculated in accordance with the terms of the notes. If a default exists, the outstanding principal balance of the notes shall, at the option of the lender, bear interest at a rate equal to the lesser of (i) 10% per annum over the note rate and (ii) the highest rate of interest permitted to be paid or collected by applicable law with respect to the loan. The notes contain other terms and provisions that are customary for instruments of this nature.

In connection with all loan agreements, the Company is required to comply with certain covenants. As of June 30, 2024, the Company was in compliance with all covenants.

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Principal Repayments:

Scheduled principal repayments for the remainder of 2024, the next five years and thereafter are as follows (in thousands):

Remainder of 2024	$	16,105
2025		36,341
2026		2,641
2027		3,019
2028		71,697
2029		2,656
Thereafter		370,468
Total	$	502,927

5. SECURED REVOLVING CREDIT FACILITY & TERM LOAN PAYABLE:

Key Bank Loan Agreement:

On December 2, 2015, the Operating Partnership entered into a Credit Agreement (the “Key Bank Credit Agreement”) with Keybank National Association and Keybanc Capital Markets Inc., as lead arranger (collectively, “Key Bank”). The Key Bank Credit Agreement contemplated a $50.0 million revolving line of credit facility, with an initial term of two years, with a one-year extension option, subject to certain other customary conditions. Through the exercise of additional extension options, the Operating Partnership extended the maturity date of the secured revolving credit facility through June 30, 2022.

On October 22, 2021, the Operating Partnership entered into a First Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) with Key Bank and the other lenders parties thereto (collectively, the “Lenders”). The maturity date of the secured revolving credit facility was extended from June 30, 2022 under the Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement provided for a $60 million senior secured credit facility (the “Credit Facility”), consisting of (i) a $10 million revolving line of credit facility, with an initial term of three years and two one-year extension options, subject to certain other customary conditions (the “Revolver”) and (ii) a $50 million term loan facility, with an initial term of four years and a one-year extension option and subject to certain other customary conditions, which was funded in a single advance on October 22, 2021 (the “Term Loan”). Up to $10 million of the total commitments under the Credit Facility will be available for the issuance of letters of credit and swing line loans. Loan costs paid in connection with the Credit Facility were $0.5 million.

So long as no default or event of default has occurred and is continuing, the Operating Partnership shall have the right, from time to time, to request an increase in the size of the Term Loan, request an additional incremental term loan facility, or increase commitments under the Revolver, collectively in an aggregate amount that would not cause the Credit Facility to exceed $125 million (the “Accordion”). Accordion commitments can be committed at closing or any time thereafter and the Accordion commitments will be syndicated on a best-efforts basis.

Prior to the First Amendment (defined below), loans drawn down by the Operating Partnership under the Credit Facility were required to specify, at the Operating Partnership’s option, whether they were base rate loans or LIBOR rate loans. Borrowings under the Credit Facility bore interest at a rate equal to, at the Operating Partnership’s option, either (1) the applicable average LIBOR rate as shown in Reuters Screen LIBOR01 Page (or any successor service, or commercially available source providing such quotations); provided if the rate shown on Reuters Screen LIBOR01 Page (or any successor service) was less than zero, such rate was deemed to be zero, or (2) a base rate determined by reference to the greatest of (a) the fluctuating annual rate of interest announced from time to time by Key Bank as its “prime rate,” (b) 0.50% above the federal funds effective rate, or (c) then applicable LIBOR for an interest period of one (1) month plus 1.00% per annum; provided that in no event would the Base Rate be less than zero, and in each case of clauses (1) and (2), plus an applicable margin, depending upon the overall leverage of the properties and whether the loan was under the Revolver or Term Loan facilities. Base Rate loans and LIBOR rate loans could be converted to loans of the other type, subject to certain conversion conditions. Each Revolver loan will be evidenced by a separate promissory note.

The Operating Partnership agreed to pay to the Lenders an unused fee under the Revolver in the amount calculated as 0.20% for usage less than 50% and 0.15% for usage 50% or greater, calculated as a per diem rate, multiplied by the excess of the total commitment over the outstanding principal amount of the loans under the total Revolver commitment at the time of the calculation. The Operating Partnership has the right to reduce the amount of loan commitments under the Revolver or terminate the Revolver in accordance with the terms and conditions of the Amended and Restated Credit Agreement.

Due to the revolving nature of the Revolver, amounts prepaid under the Revolver may be borrowed again, provided availability under the Amended and Restated Credit Agreement permits. Amounts repaid under the Term Loan may not be

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re-borrowed. The Amended and Restated Credit Agreement contemplates (i) mandatory prepayments by the Operating Partnership of any borrowings under the Credit Facility in excess of the total allowable commitment, among other events, and (ii) optional prepayments, at any time without any fees or penalty, in whole or in part, subject to payments of any amounts due associated with the prepayment of LIBOR rate contracts.

The Operating Partnership’s obligations under the Credit Facility are secured by (i) perfected first priority lien and security interest to be held by Key Bank for the benefit of the Lenders in certain of the property, rights and interests of the Operating Partnership, the guarantors and their subsidiaries now existing and as may be acquired, and (ii) any new real estate or any interest therein or to refinance indebtedness secured thereby, financed by the Credit Facility, in whole or in part, which shall be subject to approval by Key Bank in its reasonable discretion, which will serve as additional collateral for the Credit Facility. Any subsidiaries that are not prohibited from being guarantors shall be guarantors. The parties to the Amended and Restated Credit Agreement also entered into several side agreements, including, the Joinder Agreements, the Assignment of Interests, the Acknowledgments, the Mortgages, the Guaranty, and other agreements and instruments to facilitate the transactions contemplated under the Amended and Restated Credit Agreement. Such agreements contain terms and provisions that are customary for instruments of this nature.

The Operating Partnership’s continuing ability to borrow under the Credit Facility will be subject to its ongoing compliance with various affirmative and negative covenants, including, among others, with respect to maximum consolidated leverage ratio, minimum consolidated fixed charge coverage ratio, minimum liquidity, minimum consolidated tangible net worth, minimum debt yield, maximum distributions, minimum occupancy, permitted investments and restrictions on indebtedness. The Amended and Restated Credit Agreement contains events of default and remedies customary for loan transactions of this sort including, among others, those related to a default in the payment of principal or interest, an inaccuracy of a representation or warranty, and a default with regard to performance of certain covenants. The Amended and Restated Credit Agreement includes customary representations and warranties of the Operating Partnership, which must continue to be true and correct in all material respects as a condition to future draws. In addition, the Amended and Restated Credit Agreement also includes customary events of default (in certain cases subject to customary cure), in the event of which, amounts outstanding under the Credit Facility may be accelerated.

The contemplated uses of proceeds under the Amended and Restated Credit Agreement include the (i) payment of closing costs in connection with the Amended and Restated Credit Agreement, (ii) repayment of indebtedness, (iii) acquisitions, development and capital improvements, (iv) general corporate and working capital purposes, and (v) purchase contract deposits and, subject to the terms and conditions of the Amended and Restated Credit Agreement, stock repurchases.

On August 5, 2022 (the “Closing Date”), the Operating Partnership entered into a First Amendment (the “First Amendment”) to the First Amended and Restated Credit Agreement with Key Bank, as agent and lender, First Financial Bank, as lender, and the Company and certain direct and indirect subsidiaries of the Company as guarantors. The First Amendment amended the First Amended and Restated Credit Agreement to, among other things, (i) increase the amount available under the Revolver from $10 million to $40 million, (ii) extend the maturity date of the Revolver from October 22, 2024 to August 5, 2025, (iii) extend the maturity date of the Term Loan from October 22, 2025 to August 5, 2026, (iv) replace the interest rate option based on LIBOR with interest rate options based on the Secured Overnight Financing Rate (“SOFR”), including term SOFR and daily simple SOFR, and (v) add certain subsidiaries of the Operating Partnership as guarantors, and mortgages encumbering properties owned by such subsidiaries as collateral. In connection with the First Amendment, the Company incurred loan related costs of $0.5 million, which are included as a component of other assets in the accompanying condensed consolidated balance sheet.

As amended by the First Amendment, the Amended and Restated Credit Agreement provides for a $90 million Credit Facility, consisting of (i) a $40 million Revolver, with an initial term of three years from the Closing Date and two one-year extension options, subject to certain other customary conditions and (ii) a $50 million Term Loan, with an initial term of four years from the Closing Date and a one-year extension option and subject to certain other customary conditions, which was funded in a single advance on October 22, 2021. In connection with the release of certain encumbered properties as collateral upon disposition, the net disposition proceeds must be used to pay down the Credit Facility and any amounts applied to reduce the outstanding amount of the Revolver will result in a pro rata reduction in the amount available under the Revolver (subject to certain conditions).

As amended by the First Amendment, loans drawn down by the Operating Partnership under the Credit Facility must specify, at the Operating Partnership’s option, whether they are base rate loans, daily simple SOFR rate loans or term SOFR rate loans. Borrowings under the Credit Facility bear interest at a rate equal to, at the Operating Partnership’s option, either (1) daily simple SOFR plus 0.1% (but in no case shall the rate be less than zero), (2) term SOFR plus 0.1% (but in no case shall the rate be less than zero) (“Adjusted Term SOFR”), or (3) a base rate determined by reference to the greatest of (a) the fluctuating annual rate of interest announced from time to time by Key Bank as its “prime rate,” (b) 0.50% above the federal funds effective rate, (c) Adjusted Term SOFR for a one month tenor plus 1.0% and (d) 1.0%, and in each case of clauses (1), (2) and (3), plus an applicable margin, depending upon the overall leverage of the properties and whether the loan is under the Revolver or Term Loan facilities. Base rate loans and SOFR rate loans may be converted to loans of the other type, subject to certain conversion conditions.

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On March 15, 2024, the outstanding balances of $50.0 million under the Term Loan and $40.0 million under the Revolver were both paid in full.

There were no outstanding borrowings under the Term Loan as of June 30, 2024. There were outstanding borrowings under the Term Loan of $50.0 million as of December 31, 2023, which were SOFR rate borrowings. There are no unamortized loan costs for the Term Loan as of June 30, 2024. Unamortized loan costs for the Term Loan as of December 31, 2023 were $0.2 million and are included in term loan payable, net in the accompanying condensed consolidated balance sheet.

There were no outstanding borrowings under the Revolver with Key Bank as of June 30, 2024. There were outstanding borrowings under the Revolver with Key Bank of $40.0 million as of December 31, 2023, which were SOFR rate borrowings. Unamortized loan costs for the Revolver were $0.2 million and $0.3 million as of June 30, 2024 and December 31, 2023, respectively, and are included in other assets in the accompanying condensed consolidated balance sheets.

Amortization of loan costs with Key Bank were $0.1 million for both the three months ended June 30, 2024 and June 30, 2023. Amortization of loan costs with Key Bank were $0.3 million and $0.1 million for the six months ended June 30, 2024 and June 30, 2023, respectively. Amortization of loan costs is included in interest expense in the accompanying condensed consolidated statements of operations.

As of June 30, 2024, the Operating Partnership was in compliance with all covenants required in connection with the Amended and Restated Credit Agreement.

6. STOCKHOLDERS’ EQUITY:

Preferred Stock:

The Company is authorized to issue 10,000,000 shares of preferred stock, $.0001 par value per share. Voting and other rights and preferences may be determined from time to time by the Board of Directors (the “Board”) of the Company. The Company has designated 500,000 shares of preferred stock as Series A preferred stock, $.0001 par value per share. In addition, the Company has designated 6,500,000 shares of preferred stock as Series B preferred stock, $.0001 par value per share. There are no voting rights associated with the Series B preferred stock. There was no Series A preferred stock or Series B preferred stock outstanding as of June 30, 2024, or December 31, 2023.

Common Stock:

The Company is authorized to issue 100,000,000 shares of common stock, $.0001 par value per share. As of June 30, 2024, and December 31, 2023, the Company had a total of 13,345,980 and 13,326,965 shares of common stock issued and outstanding, respectively.

On June 26, 2024, the Company withheld 30,797 shares of common stock pursuant to its 2017 Incentive Award Plan (the "2017 Plan") from certain officers of the Company and a member of the Board at a price of $22.50 per share for a total consideration of approximately $0.7 million to satisfy tax withholding obligations payable upon the vesting of restricted stock.

On June 5, 2024, the Company purchased 76,628 shares of common stock pursuant to its share redemption program at a purchase price of $26.10 per share for a total consideration of approximately $2.0 million.

On November 9, 2023, the Company purchased 6,944 shares of common stock pursuant to a certain Order dated September 19, 2023 of the United States Bankruptcy Court for the Eastern District of New York at a purchase price of $9.65 per share for a total consideration of approximately $67,010 from the Chapter 7 estate of a stockholder.

On June 2, 2023, the Company purchased 95,011 shares of common stock pursuant to its share redemption program at a purchase price of $21.05 per share for a total consideration of approximately $2.0 million.

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Dividend Distributions:

The following table presents dividends declared by the Company on its common stock during the six months ended June 30, 2024:

Declaration	Record	Payment	Dividend
Date	Date	Date	Per Share
March 12, 2024	March 31, 2024	April 12, 2024	$	0.66	(1)
March 12, 2024	March 31, 2024	April 15, 2024	$	0.12
June 13, 2024	June 30, 2024	July 12, 2024	$	0.12

(1)This represents a 2023 supplemental dividend.

Noncontrolling Interest:

On September 19, 2023, the Operating Partnership, pursuant to a certain Order dated September 19, 2023 of the United States Bankruptcy Court for the Eastern District of New York, purchased 15,202 Common and Class B limited partner units of the Operating Partnership for cash consideration of $32,214,363 from the Chapter 7 estate of a limited partner.

Stock Based Compensation:

The Company had a 2007 Incentive Award Plan (the “2007 Plan”) that had the intended purpose of furthering the growth, development, and financial success of the Company and obtaining and retaining the services of those individuals considered essential to the long-term success of the Company. The 2007 Plan provided for awards in the form of restricted shares, incentive stock options, non-qualified stock options and stock appreciation rights. The aggregate number of shares of common stock which may have been awarded under the 2007 Plan was 1,000,000 shares. The 2007 Plan expired by its terms on June 11, 2017.

The 2017 Plan was adopted by the Board and became effective on April 24, 2017, subject to the approval of the Company’s stockholders, which was obtained on June 8, 2017. The 2017 Plan has the intended purpose of furthering the growth, development, and financial success of the Company and obtaining and retaining the services of those individuals considered essential to the long-term success of the Company. The 2017 Plan provides for awards in the form of stock, stock units, incentive stock options, non-qualified stock options and stock appreciation rights. The aggregate number of shares of common stock which may be awarded under the 2017 Plan is 2,000,000 shares. On July 25, 2020, the Board approved an amendment to the 2017 Plan to permit the transfer of awards that have been exercised, or the shares of common stock underlying such awards which have been issued, and all restrictions applicable to such shares of common stock have lapsed. As of June 30, 2024, the Company had 904,451 shares available for future issuance under the 2017 Plan. Dividends paid on restricted shares are recorded as dividends on shares of the Company’s common stock whether or not they are vested. In accordance with ASC 718-10-35, the Company measures the compensation costs for these shares as of the date of the grant and the expense is recognized in earnings at the grant date (for the portion that vests immediately) and then ratably over the respective vesting periods.

On November 8, 2016, 200,000 non-qualified stock options were granted to key officers of the Company and had a three-year vesting period. For this grant, the exercise price was $10.40 per share and was equal to the value per share based upon a valuation of the shares conducted by an independent third party for the purpose of valuing shares of the Company’s common stock. The fair value of these stock options was based upon the Black-Scholes option pricing model, calculated at the grant date.

On July 1, 2022, 400,000 non-qualified stock options were granted to key officers of the Company and had a three-year vesting period. For this grant, the exercise price was $18.15 per share and was equal to the value per share based upon a valuation of the shares conducted by an independent third party for the purpose of valuing shares of the Company’s common stock. The fair value of these stock options was based upon the Black-Scholes option pricing model, calculated at the grant date.

All options expire ten years from the date of grant. For both the six months ended June 30, 2024 and June 30, 2023 there was $0.2 million of stock compensation expense relating to these options.

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The following table presents shares issued by the Company under the 2007 Plan and the 2017 Plan:

Shares Issued Under the 2007 Plan
Grant	Total		Value		Approximate
Date	Shares Issued		Per Share		Value of Shares		Vesting Period
April 30, 2012		55,149	$	6.80	$	375,000	3 Years	(2)
June 7, 2012		5,884	$	6.80	$	40,000	Immediately	(1)
March 21, 2013		46,876	$	6.40	$	300,000	3 Years	(2)
March 21, 2013		3,126	$	6.40	$	20,000	Immediately	(1)
June 6, 2013		9,378	$	6.40	$	60,000	Immediately	(1)
June 4, 2014		44,704	$	6.80	$	304,000	5 years	(2)
June 19, 2014		8,820	$	6.80	$	60,000	Immediately	(1)
March 26, 2015		43,010	$	9.30	$	400,000	5 years	(2)
June 19, 2015		16,436	$	10.65	$	175,000	Immediately	(1)
March 24, 2016		47,043	$	10.40	$	489,000	5 years	(2)
June 9, 2016		14,424	$	10.40	$	150,000	Immediately	(1)
May 22, 2017		34,482	$	11.60	$	400,000	9 years	(2)
May 31, 2017		7,929	$	11.60	$	92,000	Immediately	(3)
June 8, 2017		15,516	$	11.60	$	180,000	Immediately	(1)
Shares Issued Under the 2017 Plan
Grant	Total		Value		Approximate
Date	Shares Issued		Per Share		Value of Shares		Vesting Period
June 7, 2018		42,918	$	11.65	$	500,000	9 Years	(2)
June 7, 2018		15,020	$	11.65	$	175,000	Immediately	(1)
June 5, 2019		64,654	$	11.60	$	750,000	9 Years	(2)
June 5, 2019		15,085	$	11.60	$	175,000	Immediately	(1)
June 4, 2020		72,834	$	12.70	$	925,000	9 Years	(2)
June 4, 2020		16,530	$	12.70	$	210,000	Immediately	(1)
June 10, 2021		123,947	$	11.90	$	1,475,000	9 Years	(2)
June 10, 2021		22,686	$	11.90	$	270,000	Immediately	(1)
June 9, 2022		85,398	$	18.15	$	1,550,000	9 Years	(2)
June 9, 2022		14,874	$	18.15	$	270,000	Immediately	(1)
June 8, 2023		78,548	$	16.55	$	1,300,000	9 Years	(2)
June 8, 2023		16,615	$	16.55	$	275,000	Immediately	(1)
June 13, 2024		111,776	$	22.50	$	2,515,000	9 Years	(2)
June 13, 2024		14,664	$	22.50	$	330,000	Immediately	(1)

(1)Shares issued to non-management members of the Board of Directors.

(2)Shares issued to certain executives of the Company.

(3)Shares issued to current and former executives of the Company in connection with the exercise of previously issued options.

The Board of Directors has determined the value of a share of common stock at December 31, 2023 to be $22.50 based on a valuation completed with the assistance of an independent third party for purposes of valuing shares of the Company’s stock pursuant to the 2017 Plan.

For the six months ended June 30, 2024 and 2023, the Company’s total stock-based compensation in the statement of equity was approximately $1.5 million and $1.3 million, respectively. As of June 30, 2024, there was approximately $3,980,000 of unamortized stock compensation related to restricted stock. That cost is expected to be recognized over a weighted average period of 2.4 years.

At June 30, 2024, 600,000 stock options were outstanding, of which 200,000 were vested and 400,000 were non-vested, and 1,107,539 shares of restricted stock were outstanding, 886,011 of which are vested.

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The following is a summary of restricted stock activity:

				Weighted Average
				Grant Date Fair
	Shares			Value
Non-vested shares outstanding as of December 31, 2023		161,945		$	14.91
New shares issued through June 30, 2024		126,440		$	22.50
Vested		(66,857	)	$	20.09
Non-vested shares outstanding as of June 30, 2024		221,528		$	17.96

The following is a vesting schedule of the non-vested shares of restricted stock outstanding as of June 30, 2024:

	Number of Shares
Remainder of 2024		35,561
2025		59,429
2026		42,995
2027		31,100
2028		21,875
2029		14,461
Thereafter		16,107
Total Non-vested Shares		221,528

7. EARNINGS PER SHARE:

In accordance with ASC Topic 260 “Earnings Per Share,” basic earnings per common share (“Basic EPS”) is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per common share (“Diluted EPS”) is computed by dividing net income attributable to common stockholders by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. There were 184,889 and 35,650 common share equivalents related to stock options in the six months ended June 30, 2024 and 2023, respectively, presented in Diluted EPS. For the three months ended June 30, 2024, common share equivalents are not included in Diluted EPS since they would have been anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share information for the three and six months ended June 30, 2024 and 2023 (in thousands, except share and per share data):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2024			2023		2024		2023
Numerator:
Net (loss) income attributable to common stockholders	$	(1,733	)	$	1,163	$	1,247	$	3,763
Denominator:
Weighted average common shares outstanding – basic		13,328,389			13,327,529		13,327,677		13,330,626
Weighted average common shares outstanding – diluted		13,328,389			13,363,179		13,512,566		13,366,275
Basic and Diluted Per Share Information:
Net income per share – basic	$	(0.13	)	$	0.09	$	0.09	$	0.28
Net income per share – diluted	$	(0.13	)	$	0.09	$	0.09	$	0.28

8. RELATED PARTY TRANSACTIONS:

Green Holland Management LLC:

Paul Cooper, the Chairman and Chief Executive Officer of the Company, and Louis Sheinker, the President, Secretary and Chief Operating Officer of the Company, each hold a 50% interest in a real estate brokerage firm, Green Holland Management LLC ("GHM"). In October 2022, the Company sold a property to a buyer that was introduced to the property by a broker working for GHM. GHM received a brokerage commission of $600,000. In January 2023, the Company purchased a property and was introduced to the property by a broker working for GHM, resulting in $574,000 of brokerage commissions.

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The Rochlin Organization:

Paul Cooper and Louis Sheinker each held minority ownership interests in a real estate brokerage firm, The Rochlin Organization ("Rochlin") through their ownership of GHM. Paul Cooper and Louis Sheinker did not engage in management activities for Rochlin. In November 2023, GHM sold its interest in The Rochlin Organization to Adam Rochlin and The Rochlin Organization.

612 Wortman Avenue:

Rochlin acted as the exclusive broker for one of the Company’s properties. In 2013, Rochlin introduced a new tenant to the property, resulting in the execution of a lease agreement and a subsequent lease modification and Rochlin earning brokerage commissions. In subsequent years, the tenant expanded square footage and exercised renewal options, resulting in Rochlin earning additional brokerage commissions. In July 2020, Rochlin introduced an additional tenant to the property, resulting in the execution of a lease agreement and Rochlin earning a brokerage commission of approximately $406,000 on the aggregate contractual rents of approximately $21,000,000. In June 2023, a successor of the original tenant concluded negotiations to extend their current lease and also expand the premises which resulted in approximately $1,500,000 of brokerage commissions for Rochlin on the aggregate contractual rents of approximately $32,300,000.

23-85 87th Street:

In October 2022, Rochlin acted as the exclusive broker for this property. The tenant signed an extension agreement which resulted in approximately $2,900,000 of brokerage commissions on the aggregate contractual rents of approximately $82,500,000.

9. COMMITMENTS AND CONTINGENCIES:

Legal Matters:

The Company is involved in lawsuits and other disputes which arise in the ordinary course of business. However, management believes that these matters will not have a material adverse effect, individually or in the aggregate, on the Company’s financial position or results of operations.

Environmental Matters:

As of June 30, 2024, three of the Company’s six former bus depot sites have received final regulatory closure, satisfying outstanding clean-up obligations related to legacy site contamination issues. Three sites continue with on-going cleanup, monitoring and reporting activities. The Company believes each of the six sites remain in compliance with existing local, state and federal obligations.

Real Property Used By the Company in Its Business

On December 11, 2020, the Company signed a ten-year four-month lease, with one five-year option to extend the lease, as tenant with Steel Garden LLC, as landlord, for the premises located at 1399 Franklin Avenue, Suite 100, Garden City, New York. The lease commencement date was October 1, 2021 (see Note 2). The monthly minimum rent for the first year of the lease term was $27,755.21 with 3% annual rental increases, and the Company was entitled to four months of free minimum rent.

10. FAIR VALUE:

Fair Value of Financial Instruments:

The fair value of the Company’s financial instruments is determined based upon applicable accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance requires disclosure of the level within the fair value hierarchy in which the fair value measurements fall, including measurements using quoted prices in active markets for identical assets or liabilities (Level 1), quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active (Level 2), and significant valuation assumptions that are not readily observable in the market (Level 3).

The fair values of cash and cash equivalents, restricted cash, rent and other receivables, dividends payable, accounts payable and accrued expenses approximated their carrying value because of the short-term nature based on Level 1 inputs. The fair values of mortgage notes payable are based on the discounted cash flow method using current treasury rates and commercial loan spreads, which are Level 2 inputs. The fair values of secured revolving credit facility and term loan payable are based on borrowing rates available to the Company, which are Level 2 inputs. The carrying values of term loan payable and mortgage notes payable are stated at their principal balances below.

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The following table summarizes the carrying values and the estimated fair values of the financial instruments (in thousands):

	June 30, 2024				December 31, 2023
	Carrying		Estimated		Carrying		Estimated
	Value		Value		Value		Value
Financial assets:
Cash and cash equivalents	$	49,581	$	49,581	$	27,913	$	27,913
Restricted cash		973		973		1,400		1,400
Rent and other receivables		1,103		1,103		569		569
Financial liabilities:
Dividends payable		1,602		1,602		1,333		1,333
Accounts payable and accrued expenses		4,327		4,327		5,234		5,234
Secured revolving credit facility		—		—		40,000		40,000
Term loan payable		—		—		50,000		50,000
Mortgage notes payable		502,927		464,358		379,187		345,009

11. SUBSEQUENT EVENTS:

On August 6, 2024, our Board of Directors declared a quarterly cash dividend of $0.12 per share of common stock, payable with respect to the third quarter ended September 30, 2024, to common stockholders of record as of the close of business on September 30, 2024, payable on October 11, 2024.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This report contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give our current expectations or forecasts of future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “project,” “seek,” or “continue,” or similar words or the negative thereof. From time to time, we also may provide oral or written forward-looking statements in other materials we release to the public. Any or all of our forward-looking statements in this report and in any public statements we make could be materially different from actual results. They can be affected by assumptions we might make or by known or unknown risks or uncertainties. Consequently, we cannot provide any assurance with respect to these or any other forward-looking statements. Investors are cautioned not to place undue reliance on any forward-looking statements. See the risk factors identified in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on March 21, 2024, for a discussion of some, although not all, of the risks and uncertainties that could cause actual results to differ materially from those presented in our forward-looking statements. Investors should understand that it is not possible to predict or identify all such factors and should not consider the potential risks and uncertainties set forth herein and in our Annual Report on Form 10-K for the year ended December 31, 2023 (and our subsequently filed public reports) as being exhaustive, and new factors may emerge that could affect our business. We assume no obligation, and disclaim any duty, to update the forward-looking statements in this report, unless otherwise required by law. You should read the following discussion in conjunction with the condensed consolidated financial statements and notes appearing elsewhere in this filing and our previously filed annual audited financial statements.

Executive Summary:

GTJ REIT, Inc. (the “Company,” “we,” “us,” or “our”) is a self-administered and self-managed real estate investment trust (“REIT”) which, as of June 30, 2024, owned and operated, through our Operating Partnership, a total of 49 properties consisting of approximately 6.3 million square feet of primarily industrial space on approximately 399 acres of land in New York, New Jersey, Connecticut, Delaware and North Carolina. As of June 30, 2024, our properties were 96% leased to 59 tenants, with certain tenants having lease agreements in place at multiple locations. The Operating Partnership also owns, through a joint venture, a 50% interest in a 150,325 square foot state-of-the-art industrial building in Piscataway, New Jersey.

We focus primarily on the acquisition, ownership, management and operation of commercial real estate located in New York, New Jersey, Connecticut, Delaware and North Carolina. To the extent it is in the best interests of our stockholders, we will seek to invest in a diversified portfolio of properties that will satisfy our primary investment objectives of providing our stockholders with stable cash flow, preservation of capital, income growth, and enhancing stockholder value without taking undue risk. We anticipate that the majority of properties we acquire will have both the potential for growth in value and the ability to provide cash distributions to stockholders. In addition, we may continue to look for attractive opportunities to divest certain of our properties, potentially redeploying that capital in our focus markets.

Critical Accounting Policies:

Management’s Discussion and Analysis of Financial Condition and Results of Operations is based upon our condensed consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that could affect the reported amounts in our condensed consolidated financial statements. Actual results could differ from these estimates. Please refer to the section of our Annual Report on Form 10-K for the year ended December 31, 2023, entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies” for a discussion of our critical accounting policies. During the six months ended June 30, 2024, there were no material changes to these policies.

Recent Developments:

Acquisition of Real Estate:

On January 18, 2023, the Company (through its Operating Partnership) acquired for cash a 435,600 square-foot parcel of land and land improvements located in Charlotte, North Carolina for $28.7 million, exclusive of closing costs, which is subject to a 10-year lease to FedEx Ground expiring on July 31, 2032.

Proceeds of Mortgage Note Payable:

On March 15, 2024, three wholly owned subsidiaries of the Operating Partnership entered into a loan agreement with American General Life Insurance Company. The loan agreement provides for a cross-defaulted, cross-collateralized portfolio of commercial mortgage loans in the aggregate principal amount of $125.0 million.

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On July 31, 2023, three wholly owned subsidiaries of the Operating Partnership entered into a loan agreement with Transamerica Life Insurance Company. The loan agreement provides for a cross-defaulted, cross-collateralized portfolio of commercial mortgage loans in the aggregate principal amount of $25.0 million. The loan is evidenced by secured promissory notes. Each note is made by one of the borrowers and the combined principal amounts of the notes are equal to the amount of the loan.

Purchase of Limited Partnership Interest:

On September 19, 2023, the Operating Partnership, pursuant to a certain Order dated September 11, 2023 of the United States Bankruptcy Court for the Eastern District of New York, purchased 15,202 Common and Class B limited partner units of the Operating Partnership for cash consideration of $32,214,363 from the Chapter 7 estate of a limited partner.

Share Redemption Program:

Our common stock is currently not registered under Section 12 of the Exchange Act and there is no established public market for shares of our common stock. In order to provide our stockholders with interim liquidity, on November 8, 2016, the Board of Directors approved a share redemption program authorizing redemption of the Company’s shares of common stock (the “Shares”), subject to certain conditions and limitations. On June 30, 2022, the Board of Directors amended and restated the share redemption program, effective as of August 8, 2022 (the “Program”), in order to increase the limit on the amount of redemptions permitted each year from $1 million to $2 million, and starting in 2023, to limit the number of redemptions receiving priority for death or disability to $1 million each year. The following is a summary of terms and provisions of the Program:

•the Company will redeem the Shares on a semi-annual basis (each redemption period ending on May 31st and November 30th of each year), at a specified price per share (which price will be equal to 90% of its net asset value per share for the most recently completed calendar year, subject to adjustment), subject to sufficient funds being available.

•the Program will be open to all stockholders (other than current directors, officers and employees, subject to certain exceptions), indefinitely with no specific end date (although the Board may choose to amend, suspend or terminate the Program at any time by providing 30 days’ advance notice to stockholders).

•stockholders can tender their Shares for redemption at any time during the period in which the Program is open; stockholders can also withdraw tendered Shares at any time prior to 10 days before the end of the applicable semi-annual period.

•if the annual volume limitation is reached in any given semi-annual period or the Company determines to redeem fewer Shares than have been submitted for redemption in any particular semi-annual period due to the insufficiency of funds, the Company will redeem Shares on a pro rata basis in accordance with the policy on priority of redemptions set forth in the Program.

•the number of redemptions receiving priority for death or disability will be limited to $1 million in shares per calendar year such that any stockholders requesting redemption upon death or disability will receive up to $1 million for shares per calendar year, and the remaining $1 million per calendar year will be available to redeem shares for the remainder of the Company’s stockholders in the following order of priority: (1) any redemptions that have been carried over from one or more previous semi-annual periods where the redemption amount remaining is less than $2,500; and (2) pro rata as to all other redemption requests (excluding redemptions upon death or disability); provided, however, that if the redemption requests upon death or disability are less than $1 million in shares in a calendar year, then the amount under $1 million would also be available for the remainder of the Company’s stockholders in accordance with the order of priority set forth in this sentence.

•the redemption price for the Shares will be paid in cash no later than 3 business days following the last calendar day of the applicable semi-annual period.

•the Program will be terminated if the Shares are listed on a national securities exchange or included for quotation in a national securities market, or in the event a secondary market for the Shares develops or if the Company merges with a listed company.

•the Company’s transfer agent, Equiniti Trust Company, LLC, will act as the redemption agent in connection with the Program.

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Under the Program, the redemption price per Share is equal to 90% of the net asset value (“NAV”) per Share as of the end of the most recently completed calendar year. The NAV is approved annually by the Company’s Board of Directors. The following table presents the results of the Program:

	Valuation Date									Aggregate
	December 31,	NAV		Redemption Price		Shares Redeemed		Redemption Date		Consideration
	2016	$	13.94	$	12.55		79,681	November 30, 2017		$	999,997
	2017	$	14.36	$	12.92		77,399	May 31, 2018		$	999,995
	2018	$	15.09	$	13.58		73,637	May 31, 2019		$	999,990
(1)	2019	$	15.54	$	13.99		-		-	$	-
	2020	$	17.52	$	15.77		63,411	November 30, 2021		$	999,991
	2021	$	22.25	$	20.03		49,925	June 3, 2022		$	999,998
	2021	$	22.25	$	20.03		49,925	December 1, 2022		$	999,998
	2022	$	23.39	$	21.05		95,011	June 2, 2023		$	1,999,982
	2023	$	29.00	$	26.10		76,628	June 5, 2024		$	1,999,991

(1)On March 27, 2020, the Company’s Board unanimously approved suspending repurchases under the Program effective as of May 1, 2020 in order to preserve financial flexibility in light of uncertainty resulting from the COVID-19 pandemic. On March 16, 2021, the Board unanimously approved lifting the suspension and recommencing the Program, effective as of June 1, 2021.

On July 6, 2021, the Program was temporarily suspended during the Company’s self-tender offer and remained suspended for ten (10) business days following the expiration of the offer. The first redemption date following the recommencement of the Program was November 30, 2021.

Since the Program became effective in 2017, the Company received redemption requests during each year exceeding the Program’s annual limit (other than in 2020 when the Program was suspended). As a result, the Company was unable to purchase all Shares presented for redemption. The Company honored the requests it received on a pro rata basis in accordance with the policy on priority of redemptions set forth in the Program, subject to giving certain priorities in accordance with the Program. The Company treats any unsatisfied portions of redemption requests as requests for redemption in the next semi-annual period.

On March 19, 2024, the Company received its annual valuation as of December 31, 2023. The annual valuation resulted in an adjustment to the redemption price under the Program from $21.05 to $26.10 per share. The Company has filed a Current Report on Form 8-K with the SEC on March 20, 2024, and mailed to its stockholders an announcement of the redemption price adjustment. The redemption price of $26.10 per share was effective for the semi-annual period running from December 1, 2023 to May 31, 2024 and will remain effective until such time as the Board determines a new estimated per share NAV. The Company’s stockholders are permitted to withdraw any redemption requests upon written notice to the Company at any time prior to ten (10) days before the end of the applicable semi-annual period.

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Financial Condition and Results of Operations:

Three Months Ended June 30, 2024 vs. Three Months Ended June 30, 2023

The following table sets forth our results of operations for the periods indicated (in thousands):

	Three Months Ended
	June 30,						Increase/(Decrease)
	2024			2023			Amount			Percent
	(Unaudited)
Revenues:
Rental income	$	19,346		$	18,579		$	767			4	%
Total revenues		19,346			18,579			767			4	%
Operating Expenses:
Property operating expenses		3,732			3,611			121			3	%
General and administrative		8,341			4,143			4,198			101	%
Depreciation and amortization		3,477			3,459			18			1	%
Total operating expenses		15,550			11,213			4,337			39	%
Operating income		3,796			7,366			(3,570	)		(48	%)
Interest expense		(6,665	)		(5,981	)		684			11	%
Equity in earnings of unconsolidated affiliate		55			34			21			62	%
Other income		700			210			490			233	%
Net (loss) income		(2,114	)		1,629			(3,743	)	NM
Less: Net (loss) income attributable to noncontrolling interest		(381	)		466			(847	)	NM
Net (loss) income attributable to common stockholders	$	(1,733	)	$	1,163		$	(2,896	)	NM

Revenues

Total revenues increased $0.8 million, or 4%, to approximately $19.4 million for the three months ended June 30, 2024 from $18.6 million for the three months ended June 30, 2023. The increase is primarily due to increased rental income attributable to higher rental rates in the second quarter of 2024 compared to the second quarter of 2023.

Operating Expenses

Operating expenses of approximately $15.5 million for the three months ended June 30, 2024 increased $4.3 million, or 39%, from $11.2 million for the three months ended June 30, 2023 primarily due to increased general and administrative expenses in the second quarter of 2024 compared to the second quarter of 2023. The increase in general and administrative expenses is primarily attributable to higher executive compensation due the the achievement of certain Company financial goals and higher stock compensation in the second quarter of 2024 compared to the second quarter of 2023.

Interest Expense

Interest expense of $6.7 million for the three months ended June 30, 2024 increased $0.7 million, or 11%, from $6.0 million for the three months ended June 30, 2023. The increase is primarily due to a higher average mortgage principal balance in the second quarter of 2024 compared to the second quarter of 2023.

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Six Months Ended June 30, 2024 vs. Six Months Ended June 30, 2023

The following table sets forth our results of operations for the periods indicated (in thousands):

	Six Months Ended
	June 30,						Increase/(Decrease)
	2024			2023			Amount			Percent
	(Unaudited)
Revenues:
Rental income	$	39,318		$	37,138		$	2,180			6	%
Total revenues		39,318			37,138			2,180			6	%
Operating Expenses:
Property operating expenses		7,626			7,227			399			6	%
General and administrative		11,120			6,640			4,480			67	%
Depreciation and amortization		6,966			6,808			158			2	%
Total operating expenses		25,712			20,675			5,037			24	%
Operating income		13,606			16,463			(2,857	)		(17	%)
Interest expense		(13,338	)		(11,848	)		1,490			13	%
Equity in earnings of unconsolidated affiliate		110			73			37			51	%
Other income		1,051			643			408			63	%
Net income		1,429			5,331			(3,902	)		(73	%)
Less: Net income attributable to noncontrolling interest		182			1,568			(1,386	)		(88	%)
Net income attributable to common stockholders	$	1,247		$	3,763		$	(2,516	)		(67	%)

Revenues

Total revenues increased $2.2 million, or 6%, to $39.3 million for the six months ended June 30, 2024 from $37.1 million for the six months ended June 30, 2023. The increase is primarily due to increased rental income attributable to higher rental rates in 2024 compared to 2023.

Operating Expenses

Operating expenses of $25.7 million for the six months ended June 30, 2024 increased $5.0 million, or 24%, from $20.7 million for the six months ended June 30, 2023 primarily due to increased general and administrative expenses and property operating expenses. The increase in general and administrative expenses is primarily attributable to higher executive compensation due to the achievement of certain Company financial goals, stock compensation and professional fees in 2024 compared to 2023. The increase in property operating expenses is primarily attributable to higher snow removal expenses in 2024 compared to 2023.

Interest Expense

Interest expense of $13.3 million for the six months ended June 30, 2024 increased $1.5 million, or 13%, from $11.8 million for the six months ended June 30, 2023. The increase is primarily due to a higher average mortgage principal balance in 2024 compared to 2023.

Other Income

Other income of $1.1 million for the six months ended June 30, 2024 was primarily attributable to interest income.

Other income of $0.6 million for the six months ended June 30, 2023 was primarily attributable to a legal settlement with a former tenant and interest income.

Liquidity and Capital Resources

We derive substantially all of our revenues from rents received from tenants under existing leases on each of our properties. These revenues include fixed base rents and recoveries of certain property operating expenses that we have incurred and that we pass through to the individual tenants.

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Our primary cash disbursements consist of property operating expenses (which include real estate taxes, repairs and maintenance, insurance, and utilities), general and administrative expenses (which include compensation costs, office expenses, professional fees and other administrative expenses), leasing and acquisition costs (which include third-party costs paid to brokers and consultants), and principal payments and interest expense on our mortgage loans.

Our sources of liquidity and capital include cash flow from operations, cash and cash equivalents, borrowings under our revolving credit facility, refinancing existing mortgage loans, obtaining loans secured by our unencumbered properties, and property sales.

On December 2, 2015, the Company (through its Operating Partnership) entered into the Key Bank Credit Agreement with Key Bank for a $50.0 million revolving credit facility with an initial term of two years, with a one-year extension option, subject to certain other customary conditions. The Company, through the extension option and various amendments to the Key Bank Credit Agreement, extended the maturity date of the revolving credit facility to June 30, 2022.

On October 22, 2021, the Operating Partnership entered into a First Amended and Restated Credit Agreement with Key Bank and the other lenders parties thereto. The Amended and Restated Credit Agreement provided for a $60.0 million senior secured credit facility consisting of (i) a $10.0 million revolving line of credit facility, with an initial term of three years and two one-year extension options and (ii) a $50.0 million term loan facility, with an initial term of four years and a one-year extension option, which was funded in a single advance on October 22, 2021. Up to $10.0 million of the total commitments under the credit facility will be available for the issuance of letters of credit and swing line loans.

So long as no default or event of default has occurred and is continuing, the Operating Partnership shall have the right, from time to time, to request an increase in the size of the term loan, request an additional incremental term loan facility, or increase commitments under the revolving line of credit facility, collectively in an aggregate amount that would not cause the Credit Facility to exceed $125 million.

On August 5, 2022, the Operating Partnership entered into a First Amendment (the “First Amendment”) to the First Amended and Restated Credit Agreement with Key Bank, as agent and lender, First Financial Bank, as lender, and the Company and certain direct and indirect subsidiaries of the Company as guarantors. The First Amendment amended the First Amended and Restated Credit Agreement to, among other things, (i) increase the amount available under the revolving line of credit facility from $10.0 million to $40.0 million, (ii) extend the maturity date of the revolving line of credit facility from October 22, 2024 to August 5, 2025, (iii) extend the maturity date of the term loan facility from October 22, 2025 to August 5, 2026, (iv) replace the interest rate option based on LIBOR with interest rate options based on the Secured Overnight Financing Rate (“SOFR”), including term SOFR and daily simple SOFR, and (v) add certain subsidiaries of the Operating Partnership as guarantors, and mortgages encumbering properties owned by such subsidiaries as collateral. As of August 5, 2022, outstanding borrowings under the revolving line of credit facility were $40.0 million.

On August 5, 2022, certain subsidiaries of the Operating Partnership refinanced the AIG Loan on certain properties by entering into new loan agreements (collectively the “New AIG Loan Agreements”) with AIG Asset Management (U.S.), LLC, as administrative agent, and the other lenders from time to time party thereto. The New AIG Loan Agreements provide for secured loans in the aggregate principal amount of $225.0 million.

In addition, on March 15, 2024, certain subsidiaries of the Operating Partnership refinanced the outstanding debt of certain properties by entering into a new loan agreement (the "Loan Agreement") with American General Life Insurance Company. The Loan Agreement provides for a secured loan in the aggregate principal amount of $125.0 million. The Company used a portion of the proceeds to pay off $90.0 million of indebtedness that was outstanding under its senior secured credit facility with Key Bank, consisting of $40.0 million under the revolving line of credit facility and $50.0 million under the term loan facility.

Our available liquidity at June 30, 2024 was approximately $89.6 million, consisting of cash and cash equivalents and our available borrowing capacity under our revolving line of credit facility. As of June 30, 2024, the Company had no outstanding borrowings under the revolving line of credit facility.

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Net Cash Flows:

Six Months Ended June 30, 2024 vs. Six Months Ended June 30, 2023

Operating Activities

Net cash provided by operating activities was $9.0 million for the six months ended June 30, 2024. Cash provided by operating activities included (i) income before depreciation, amortization, stock compensation, rental income in excess of amounts billed, non-cash lease expense and income from equity investment in unconsolidated affiliate of approximately $10.7 million, (ii) distributions from unconsolidated affiliate of $0.1 million, partially offset by (iii) an increase in other assets of $0.4 million, (iv) a decrease in accounts payable and accrued expenses of $0.9 million and (v) a decrease in other liabilities of $0.5 million.

Net cash provided by operating activities was $13.7 million for the six months ended June 30, 2023. Cash provided by operating activities included (i) income before depreciation, amortization, stock compensation, rental income in excess of amounts billed, non-cash lease expense and income from equity investment in unconsolidated affiliate of $13.6 million, (ii) an increase in other liabilities of $2.8 million primarily due to unpaid leasing commissions and (iii) distributions from unconsolidated affiliate of $0.1 million, partially offset by (iv) a decrease in accounts payable and accrued expenses of approximately $2.8 million.

Investing Activities

Net cash used in investing activities was $1.1 million for the six months ended June 30, 2024. Cash used in investing activities resulted from (i) property improvements of $0.6 million and (ii) deposit for property acquisition of $0.5 million.

Net cash used in investing activities was $30.0 million for the six months ended June 30, 2023. Cash used in investing activities resulted from (i) the acquisition of one property for $29.0 million and (ii) property improvements of $1.0 million.

Financing Activities

Net cash provided by financing activities was $13.3 million for the six months ended June 30, 2024. Cash provided by financing activities resulted from (i) proceeds of mortgage loan payable of $125.0 million with American General Life Insurance Company, partially offset by (ii) the repayment of the Company's outstanding term loan payable of $50.0 million with Key Bank, (iii) the repayment of the Company's revolving line of credit facility with Key Bank of $40.0 million, (iv) the payment of mortgage principal of $1.3 million, (v) the payment of the Company’s fourth quarter 2023 dividend, 2023 supplemental dividend and 2024 first quarter dividend totaling $11.7 million, (vi) distributions to noncontrolling interests of $2.4 million, (vii) financing costs of $3.6 million for mortgage note payable with American General Life Insurance Company and (viii) repurchases of the Company's common stock of $2.7 million.

Net cash used in financing activities was $13.5 million for the six months ended June 30, 2023. Cash used in financing activities resulted from (i) the payment of mortgage principal of $0.8 million, (ii) the payment of the Company’s fourth quarter 2022 dividend, 2022 supplemental dividend and 2023 first quarter dividend totaling $7.1 million, (iii) distributions to noncontrolling interests of $3.3 million, (iv) repurchases of the Company's common stock of $2.0 million and (v) financing deposits of $0.3 million.

Non-GAAP Financial Measures

Funds from Operations and Adjusted Funds from Operations

We consider Funds from Operations (“FFO”) and Adjusted Funds from Operations (“AFFO”), each of which are non-GAAP measures, to be additional measures of an equity REIT’s operating performance. We report FFO in addition to our net income and net cash provided by operating activities. Management has adopted the definition suggested by the National Association of Real Estate Investment Trusts (“NAREIT”) and defines FFO to equal net income computed in accordance with GAAP, excluding gains or losses from sales of property, excluding impairment write-downs of depreciated property, plus real estate-related depreciation and amortization. We believe these measurements provide a more complete understanding of our performance when compared year over year and better reflect the impact on our operations from trends in occupancy rates, rental rates, operating costs and general and administrative expense which may not be immediately apparent from net income.

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Management considers FFO a meaningful additional measure of operating performance because it primarily excludes the assumption that the value of our real estate assets diminishes predictably over time and industry analysts have accepted it as a performance measure. FFO is presented to assist investors in analyzing our performance. It is helpful because it excludes various items included in net income that are not indicative of operating performance, such as gains or losses from sales of property, impairment write-downs and depreciation and amortization. Management believes AFFO to be a meaningful, additional measure of operating performance because it provides information consistent with the Company’s analysis of its operating performance by excluding non-cash and certain other income and expense items such as straight-lined rent, amortization of other intangible assets, mark to market debt adjustments, financing costs, our realized gain from an investment in a limited partnership, insurance recoveries related to casualty loss, gain or loss on extinguishment of debt, and stock compensation expense, which are not indicative of the results of our operating portfolio.

However, FFO and AFFO:

•do not represent cash flows from operating activities in accordance with GAAP, which unlike FFO and AFFO, generally reflect all cash effects of transactions and other events in the determination of net income;

•are non-GAAP financial measures and do not represent net income as defined by GAAP; and

•should not be considered alternatives to net income as indications of our performance.

FFO and AFFO as defined by us may not be comparable to similarly titled items reported by other real estate investment trusts due to possible differences in the application of the NAREIT definition used by such REITs.

The reconciliation of net income attributable to our common stockholders in accordance with GAAP to FFO and AFFO for the three and six months ended June 30, 2024 and 2023 is as follows (in thousands). All amounts are net of noncontrolling interest.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Net (loss) income attributable to common stockholders	$	(1,733	)	$	1,163		$	1,247		$	3,763
Add NAREIT defined adjustments
Real estate depreciation		2,196			1,837			4,401			3,624
Amortization of in-place leases and deferred leasing costs		725			569			1,458			1,123
Funds From Operations (“FFO”) attributable to common    stockholders, as defined by NAREIT:		1,188			3,569			7,106			8,510
Adjustments to arrive at Adjusted FFO (“AFFO”):
Straight-lined rents		(30	)		(138	)		(10	)		(290	)
Amortization of other intangible assets		(52	)		(31	)		(105	)		(76	)
Amortization of financing costs		422			265			952			531
Stock compensation expense		756			519			1,122			794
AFFO attributable to common stockholders, as defined by GTJ    REIT, Inc.	$	2,284		$	4,184		$	9,065		$	9,469

The Company believes FFO and AFFO to be the most appropriate supplemental disclosure of operating performance for a REIT due to its widespread acceptance and use within the REIT and analyst communities. FFO and AFFO provide a uniform supplemental basis for evaluating the earnings performance of REITs considering the unique capital structure of each REIT.

Cash Payments for Financing

Payments of interest under our mortgage notes payable will consume a portion of our cash flow, reducing net income and consequently, the distributions to be made to our stockholders.

Trend in Financial Resources

We expect to receive additional rent payments over time due to scheduled increases in rent set forth in the leases on our properties. It should be noted, however, that the additional rent payments are expected to result in an approximately equal obligation to make additional distributions to stockholders, and will therefore not result in a material increase in working capital.

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Inflation

Inflation has recently increased substantially in the United States. In response, the Federal Reserve increased interest rates throughout 2022 and 2023, and, although the Federal Reserve has indicated that interest rates may be decreased in 2024, further interest rate increases by the Federal Reserve are possible. Higher interest rates imposed by the Federal Reserve to address inflation may increase our interest expense on our variable rate borrowings. The Company did not have any variable rate borrowings outstanding as of June 30, 2024. In addition, increased inflation could have a negative impact on the Company’s property operating expenses, as these costs could increase at a rate higher than the Company’s rents. Our properties have tenants whose leases include expense reimbursements and other provisions to minimize the effect of inflation. However, rising costs could adversely affect our tenants’ businesses, and there is no guarantee our tenants would be able to absorb these expense increases and continue to pay us their portion of property operating expenses and rent.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risks that arise from changes in interest rates, foreign currency exchange rates and other market changes affect market sensitive instruments. In pursuing our business strategies, the primary market risk which we are exposed to is interest rate risk. On August 5, 2022, the Operating Partnership entered into a First Amendment to the First Amended and Restated Credit Agreement, dated October 22, 2021, with Key Bank and the other lenders parties thereto which provided for a $90 million senior secured credit facility (the “Credit Facility”), consisting of (i) a $40 million revolving line of credit facility and (ii) a $50 million term loan facility. Loans drawn down by the Operating Partnership under the Credit Facility must specify, at the Operating Partnership’s option, whether they are base rate loans, daily simple SOFR rate loans or term SOFR loans. Borrowings under the Credit Facility bear interest at a rate equal to, at the Operating Partnership’s option, either (1) daily simple SOFR plus 0.1% (but in no case shall the rate be less than zero), (2) term SOFR plus 0.1% (but in no case shall the rate be less than zero) (“Adjusted Term SOFR”), or (3) a base rate determined by reference to the greatest of (a) the fluctuating annual rate of interest announced from time to time by Key Bank as its “prime rate”, (b) 0.50% above the federal funds effective rate, (c) Adjusted Term SOFR for a one month tenor plus 1.0% and (d) 1.0%, and in each case of clauses (1), (2) and (3), plus an applicable margin, depending upon the overall leverage of the properties and whether the loan is under the Revolver or Term Loan facilities. The Term Loan facility of $50 million and the outstanding balance of the Revolver of $40 million were both paid in full on March 15, 2024. Therefore, as of June 30, 2024, the Company's interest expense would not be affected by any changes in the SOFR interest rates.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain a system of disclosure controls and procedures (as defined in Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). As required by Rule 15d-15(b) under the Exchange Act, management, under the direction of our Company’s Chief Executive Officer and Chief Financial Officer, reviewed and performed an evaluation of the effectiveness of design and operation of our disclosure controls and procedures (as defined in Rule 15d-15(e) under the Exchange Act) as of June 30, 2024, the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective to provide reasonable assurance that (i) information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (ii) information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II – Other Information

Item 1. Legal Proceedings

From time to time, the Company is involved in lawsuits and other disputes that arise in the ordinary course of business. Our management is currently not aware of any legal matters or pending litigation that would have a significant effect, individually or in the aggregate, on the Company’s financial position or results of operations.

Item 1A. Risk Factors

There have been no material changes to the risk factors that were disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Except for the Company's purchase of 76,628 shares for $1,999,991 pursuant to its Share Redemption Program and the Company's purchase of 30,797 shares for $692,933 pursuant to its 2017 Incentive Award Plan, the Company did not engage in any unregistered sales of equity securities or repurchases of its common stock during the fiscal quarter ended June 30, 2024. Our common stock is currently not registered under Section 12 of the Exchange Act.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

Exhibit	Description
3.1	Composite Amended and Restated Articles of Incorporation, Inclusive of All Amendments Through June 8, 2018 (Incorporated by reference to Exhibit 3.1 to Registrant’s Quarterly Report on Form 10-Q filed with the SEC on August 9, 2018).
3.2	Composite Bylaws, Inclusive of All Amendments Through September 3, 2015 (Incorporated by reference to Exhibit 3.2 to Registrant’s Quarterly Report on Form 10-Q filed with the SEC on August 9, 2018).
10.1	First Amendment to the GTJ REIT, Inc. Long-Term Equity Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Form 8-K filed with the SEC on June 13, 2024).
31.1	Certification of Chief Executive Officer Pursuant to Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.2	Certification of Chief Financial Officer Pursuant to Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32.1	Certification of Chief Executive Officer Pursuant to Rule 15d-14(b) and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
32.2	Certification of Chief Financial Officer Pursuant to Rule 15d-14(b) and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (furnished herewith).
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

34

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	GTJ REIT, INC.
Dated: August 9, 2024	/s/ Paul Cooper
	Paul Cooper
	Chief Executive Officer (Principal Executive Officer)
Dated: August 9, 2024	/s/ Stuart Blau
	Stuart Blau Chief Financial Officer (Principal Financial and Accounting Officer)

35

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Paul Cooper, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of GTJ REIT, Inc. for the quarter ended June 30, 2024;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2024	/s/ Paul Cooper
	Paul Cooper
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Stuart Blau, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of GTJ REIT, Inc. for the quarter ended June 30, 2024;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2024	/s/ Stuart Blau
	Stuart Blau Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of GTJ REIT, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2024 as filed with the Securities and Exchange Commission (the “Periodic Report”), I, Paul Cooper, Chief Executive Officer of the Company, certify to the best of my knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.the Periodic Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.the information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 9, 2024	/s/ Paul Cooper
	Paul Cooper
	Chief Executive Officer

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATIONS OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of GTJ REIT, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2024 as filed with the Securities and Exchange Commission (the “Periodic Report”), I, Stuart Blau, Chief Financial Officer of the Company, certify to the best of my knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.the Periodic Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.the information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 9, 2024	/s/ Stuart Blau
	Stuart Blau
	Chief Financial Officer

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Aug. 06, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Registrant Name	GTJ REIT, INC.
Entity Central Index Key	0001368757
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		13,345,980
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Tax Identification Number	20-5188065
Entity File Number	333-136110
Entity Incorporation, State or Country Code	MD
Entity Address, Address Line One	1399 Franklin Avenue
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Garden City
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11530
City Area Code	516
Local Phone Number	693-5500

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Real estate, at cost:
Land	$ 223,308	$ 223,308
Buildings and improvements	312,845	312,275
Total real estate, at cost	536,153	535,583
Less: accumulated depreciation and amortization	(109,349)	(104,163)
Net real estate held for investment	426,804	431,420
Cash and cash equivalents	49,581	27,913
Restricted cash	973	1,400
Rental income in excess of amount billed	16,121	16,123
Acquired lease intangible assets, net	5,197	5,836
Investment in unconsolidated affiliate	3,788	3,753
Right-of-use asset - operating lease, net	2,422	2,555
Other assets	17,667	18,237
Total assets	522,553	507,237
Liabilities:
Mortgage notes payable, net	490,369	369,423
Secured revolving credit facility	0	40,000
Term loan payable, net	0	49,783
Accounts payable and accrued expenses	4,327	5,234
Dividends payable	1,602	1,333
Acquired lease intangible liabilities, net	717	1,079
Right-of-use liability - operating lease	2,614	2,739
Other liabilities	5,503	6,032
Total liabilities	505,132	475,623
Commitments and contingencies (Note 9)
Equity:
Common stock, $.0001 par value; 100,000,000 shares authorized; 13,345,980 and 13,326,965 shares issued and outstanding at and June 30, 2024 and December 31, 2023	1	1
Additional paid-in capital	131,171	132,217
Distributions in excess of net income	(118,080)	(107,330)
Total stockholders’ equity	13,092	24,888
Noncontrolling interest	4,329	6,726
Total equity	17,421	31,614
Total liabilities and equity	522,553	507,237
Series A Preferred Stock [Member]
Equity:
Preferred stock, value
Series B Preferred Stock, Non-Voting [Member]
Equity:
Preferred stock, value

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	13,345,980	13,326,965
Common stock, shares outstanding	13,345,980	13,326,965
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B Preferred Stock, Non-Voting [Member]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	6,500,000	6,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues:
Rental income	$ 19,346	$ 18,579	$ 39,318	$ 37,138
Total revenues	19,346	18,579	39,318	37,138
Operating Expenses:
Property operating expenses	3,732	3,611	7,626	7,227
General and administrative	8,341	4,143	11,120	6,640
Depreciation and amortization	3,477	3,459	6,966	6,808
Total operating expenses	15,550	11,213	25,712	20,675
Operating income	3,796	7,366	13,606	16,463
Interest expense	(6,665)	(5,981)	(13,338)	(11,848)
Equity in earnings of unconsolidated affiliate	55	34	110	73
Other income	700	210	1,051	643
Net (loss) income	(2,114)	1,629	1,429	5,331
Less: Net (loss) income attributable to noncontrolling interest	(381)	466	182	1,568
Net (loss) income attributable to common stockholders	$ (1,733)	$ 1,163	$ 1,247	$ 3,763
Net (loss) income per common share attributable to common stockholders - basic earnings per share	$ (0.13)	$ 0.09	$ 0.09	$ 0.28
Net (loss) income per common share attributable to common stockholders - diluted earnings per share	$ (0.13)	$ 0.09	$ 0.09	$ 0.28
Weighted average common shares outstanding – basic	13,328,389	13,327,529	13,327,677	13,330,626
Weighted average common shares outstanding – diluted	13,328,389	13,363,179	13,512,566	13,366,275

XML

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional-Paid-In-Capital [Member]	Distributions in Excess of Net Income [Member]	Total Stockholders' Equity [Member]	Noncontrolling Interest [Member]
Beginning Balance at Dec. 31, 2022	$ 66,151	$ 1	$ 141,812	$ (107,082)	$ 34,731	$ 31,420
Beginning Balance (in shares) at Dec. 31, 2022		13,333,757
Common stock dividends	(5,734)			(5,734)	(5,734)
Stock-based compensation	311		311		311
Distributions to noncontrolling interest	(2,565)					(2,565)
Net income (loss)	3,702			2,600	2,600	1,102
Ending Balance at Mar. 31, 2023	61,865	$ 1	142,123	(110,216)	31,908	29,957
Ending Balance (in shares) at Mar. 31, 2023		13,333,757
Beginning Balance at Dec. 31, 2022	66,151	$ 1	141,812	(107,082)	34,731	31,420
Beginning Balance (in shares) at Dec. 31, 2022		13,333,757
Net income (loss)	5,331
Ending Balance at Jun. 30, 2023	60,526	$ 1	140,941	(110,386)	30,556	29,970
Ending Balance (in shares) at Jun. 30, 2023		13,333,909
Beginning Balance at Mar. 31, 2023	61,865	$ 1	142,123	(110,216)	31,908	29,957
Beginning Balance (in shares) at Mar. 31, 2023		13,333,757
Common stock dividends	(1,333)			(1,333)	(1,333)
Repurchases - common stock	(2,000)		(2,000)		(2,000)
Repurchases - common stock (in shares)		(95,011)
Stock-based compensation	966		966		966
Stock-based compensation (in shares)		95,163
Distributions to noncontrolling interest	(601)					(601)
Net income (loss)	1,629			1,163	1,163	466
Reallocation of equity			(148)		(148)	148
Ending Balance at Jun. 30, 2023	60,526	$ 1	140,941	(110,386)	30,556	29,970
Ending Balance (in shares) at Jun. 30, 2023		13,333,909
Beginning Balance at Dec. 31, 2023	31,614	$ 1	132,217	(107,330)	24,888	6,726
Beginning Balance (in shares) at Dec. 31, 2023		13,326,965
Common stock dividends	(10,395)			(10,395)	(10,395)
Stock-based compensation	313		313		313
Distributions to noncontrolling interest	(2,082)					(2,082)
Net income (loss)	3,543			2,980	2,980	563
Reallocation of equity			(52)		(52)	52
Ending Balance at Mar. 31, 2024	22,993	$ 1	132,478	(114,745)	17,734	5,259
Ending Balance (in shares) at Mar. 31, 2024		13,326,965
Beginning Balance at Dec. 31, 2023	31,614	$ 1	132,217	(107,330)	24,888	6,726
Beginning Balance (in shares) at Dec. 31, 2023		13,326,965
Net income (loss)	1,429
Ending Balance at Jun. 30, 2024	17,421	$ 1	131,171	(118,080)	13,092	4,329
Ending Balance (in shares) at Jun. 30, 2024		13,345,980
Beginning Balance at Mar. 31, 2024	22,993	$ 1	132,478	(114,745)	17,734	5,259
Beginning Balance (in shares) at Mar. 31, 2024		13,326,965
Common stock dividends	(1,602)			(1,602)	(1,602)
Repurchases - common stock	(2,693)		(2,693)		(2,693)
Repurchases - common stock (in shares)		(107,425)
Stock-based compensation	1,160		1,160		1,160
Stock-based compensation (in shares)		126,440
Distributions to noncontrolling interest	(323)					(323)
Net income (loss)	(2,114)			(1,733)	(1,733)	(381)
Reallocation of equity			226		226	(226)
Ending Balance at Jun. 30, 2024	$ 17,421	$ 1	$ 131,171	$ (118,080)	$ 13,092	$ 4,329
Ending Balance (in shares) at Jun. 30, 2024		13,345,980

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,429	$ 5,331
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	5,227	5,194
Amortization of intangibles and deferred charges	2,754	2,272
Stock-based compensation	1,473	1,277
Non-cash lease expense	8	14
Rental income (in excess of) amount billed	(6)	(382)
Distributions from unconsolidated affiliate	75	100
Income from equity investment in unconsolidated affiliate	(110)	(73)
Changes in operating assets and liabilities:
Other assets	(401)	25
Accounts payable and accrued expenses	(895)	(2,866)
Other liabilities	(532)	2,792
Net cash provided by operating activities	9,022	13,684
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for improvements to real estate	(582)	(1,002)
Deposit for property acquisition	(500)
Expenditures for property acquisitions		(29,007)
Net cash used in investing activities	(1,082)	(30,009)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of mortgage principal	(1,260)	(797)
Repurchase of common stock	(2,693)	(2,000)
Financing deposits and costs		(280)
Financing costs from mortgage notes payable	(3,624)	(54)
Proceeds from mortgage notes payable	125,000
Payment of revolving credit facility	(40,000)
Payment of term loan payable	(50,000)
Cash distributions to noncontrolling interest	(2,394)	(3,287)
Cash dividends paid	(11,728)	(7,067)
Net cash provided by (used in) financing activities	13,301	(13,485)
Net increase (decrease) in cash and cash equivalents, including restricted cash	21,241	(29,810)
Cash and cash equivalents including restricted cash of $1,400 and $986, respectively, at the beginning of period	29,313	60,490
Cash and cash equivalents including restricted cash of $973 and $1,283, respectively, at the end of period	50,554	30,680
SUPPLEMENTAL DISCLOSURE CASH FLOW INFORMATION:
Cash paid for interest	11,971	11,144
Non-cash expenditures for real estate	51	565
Right-of-use asset and liability	$ 2,614	$ 2,857

XML

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Statement of Cash Flows [Abstract]
Restricted cash, at the beginning of period	$ 1,400	$ 1,283	$ 986
Restricted cash, at the end of period	$ 973	$ 1,400	$ 1,283

XML

Organization and Description of Business

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

1. ORGANIZATION AND DESCRIPTION OF BUSINESS:

GTJ REIT, Inc. (the “Company” or “GTJ REIT”) was incorporated on June 26, 2006, under the Maryland General Corporation Law. The Company is focused primarily on the acquisition, ownership, management, and operation of commercial real estate located in New York, New Jersey, Connecticut, Delaware and North Carolina. Any references to square footage, property count, or occupancy percentages, and any amounts derived from these values in these notes to the condensed consolidated financial statements, are outside the scope of our independent registered public accounting firm’s review.

The Company has elected to be treated as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended (the “Code”). The Company elected December 31 as its fiscal year end. Under the REIT operating structure, the Company is permitted to deduct the dividends paid to its stockholders when determining its taxable income. Assuming dividends equal or exceed the Company’s taxable income, the Company generally will not be required to pay federal corporate income taxes on such income.

On January 17, 2013, the Company closed on a business combination with Wu/Lighthouse Portfolio, LLC, in which a limited partnership (the “Operating Partnership”) owned and controlled by the Company, acquired all outstanding ownership interests of a portfolio consisting of 25 commercial properties (the “Acquired Properties”) located in New York, New Jersey and Connecticut, in exchange for 33.29% of the outstanding limited partnership interest in the Operating Partnership. The outstanding limited partnership interest in the Operating Partnership exchanged for the Acquired Properties was increased to 33.78% due to post-closing adjustments. The subsequent redemptions of certain shares of GTJ REIT common stock and purchases of a portion of the outstanding limited partnership interest have resulted in a net decrease to the outstanding limited partnership interest in the Operating Partnership to 16.80% as of June 30, 2024. As a result of this transaction, the Company’s then existing 7 properties and the subsequent acquisition of 19 properties and the sale of 2 properties from 2014 through June 30, 2024, the Company currently owns a 83.20% interest in a total of 49 properties consisting of approximately 6.3 million square feet (unaudited) of primarily industrial properties on approximately 399 acres (unaudited) of land in New York, New Jersey, Connecticut, Delaware and North Carolina. The Operating Partnership also owns, through a joint venture, a 50% interest in a state-of-the-art industrial building in Piscataway, New Jersey. At June 30, 2024, subject to certain anti-dilutive and other provisions contained in the governing agreements, the limited partnership interest in the Operating Partnership may be converted in the aggregate, into approximately 1.5 million shares of the Company’s common stock or approximately 1.2 million shares of the Company’s Series B preferred stock based upon the class of units owned.

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Basis of Presentation:

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the financial statements of the Company, its wholly owned subsidiaries, and the Operating Partnership, as the Company makes all operating and financial decisions for (i.e., exercises control over) the Operating Partnership. All material intercompany transactions have been eliminated. The ownership interests of the other investors in the Operating Partnership are presented as noncontrolling interests.

The accompanying unaudited condensed consolidated interim financial information has been prepared according to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations. The Company’s management believes that the disclosures presented in these unaudited condensed consolidated financial statements are adequate to make the information presented not misleading. In management’s opinion, all adjustments and eliminations, consisting only of normal recurring adjustments, necessary to present fairly the financial position and results of operations for the reported periods have been included. The results of operations for such interim periods are not necessarily indicative of the results for the full year. The accompanying unaudited condensed consolidated interim financial information should be read in conjunction with the Company’s December 31, 2023, audited consolidated financial statements, as previously filed with the SEC on Form 10-K on March 21, 2024.

Use of Estimates:

The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, and related disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. All of these estimates reflect management’s best judgment about current economic and market conditions and their effects based on information available as of the date of these condensed consolidated financial statements. If such conditions persist longer or deteriorate further than expected, it is reasonably possible that the judgments and estimates could change, which may result in impairments of certain assets. Significant estimates include the useful lives of long-lived assets including property, equipment and intangible assets, impairment of assets, collectability of receivables, contingencies, stock-based compensation, and fair value of assets and liabilities acquired in business combinations and asset acquisitions.

Reclassification:

None of the prior year amounts have been reclassified for consistency with the current year presentation.

Real Estate:

Real estate assets are stated at cost, less accumulated depreciation and amortization. All costs related to the improvement or replacement of real estate properties, including interest expense on development properties, are capitalized. Acquisition related costs are capitalized for asset acquisitions. Additions, renovations, and improvements that improve the value and/or extend the useful life of a property are also capitalized. Expenditures for ordinary maintenance, repairs, and improvements that do not materially prolong the normal useful life of an asset are charged to operations as incurred.

The Company capitalizes all direct costs of real estate under development until the end of the development period. In addition, the Company capitalizes the indirect cost of insurance and real estate taxes allocable to real estate under development during the development period. The Company also capitalizes interest using the avoided cost method for real estate under development during the development period. The Company will cease the capitalization of these costs when development activities are substantially completed and the property is available for occupancy by tenants, but no later than one year from the completion of major construction activity at which time the property is placed in service and depreciation commences. If the Company suspends substantially all activities related to development of a qualifying asset, the Company will cease capitalization of these costs until activities are resumed. The Company had no real estate under development as of June 30, 2024 and December 31, 2023.

Upon the acquisition of real estate properties, the accumulated cost of the real estate purchased is allocated to the acquired tangible assets (generally consisting of land, buildings and building improvements, and tenant improvements) and identified intangible assets and liabilities (generally consisting of above-market and below-market leases and the origination value of in-place leases) on a relative fair value basis in accordance with GAAP. The Company utilizes methods similar to those used by independent appraisers in estimating the fair value of acquired assets and liabilities. The fair value of the tangible assets of an acquired property considers the value of the property “as-if-vacant.” In allocating the purchase price to identified intangible assets and liabilities of an acquired property, the value of above-market and below-market leases is estimated based on the differences between contractual rentals and estimated market rents over the applicable lease term discounted back to the date of acquisition utilizing a discount rate adjusted for the credit risk associated with the respective tenants. Fixed-rate renewal options have been included in the calculation of the fair value of acquired leases where applicable. The value of in-place leases is based on the Company’s evaluation of the specific characteristics of each tenant’s lease. The aggregate value of in-place leases is measured based upon factors which include the avoided costs associated with lack of revenue over a market-oriented lease-up period, current market conditions, avoided leasing commissions, and other avoided costs common in similar leasing transactions.

Mortgage notes payable assumed in connection with acquisitions are recorded at their fair value using current market interest rates for similar debt at the time of acquisitions.

The capitalized above-market lease values are amortized as a reduction of rental revenue over the remaining term of the respective leases and the capitalized below-market lease values are amortized as an increase to rental revenue over the remaining term of the respective leases. The values of in-place leases are amortized over the remaining term of the respective leases and are included in depreciation and amortization in the accompanying condensed consolidated statements of operations. If a tenant terminates its lease prior to its contractual expiration date, any unamortized balance of the related intangible assets or liabilities is recorded as income or expense in the period. The total net impact to rental revenues due to the amortization of above and below-market leases was a net increase of approximately $0.3 million for both the six months ended June 30, 2024 and June 30, 2023. The total amortization of in-place leases was $0.6 million and $0.7 million for the six months ended June 30, 2024 and June 30, 2023, respectively.

As of June 30, 2024, above-market and in-place leases of $0.8 million and $4.4 million (net of accumulated amortization), respectively, are included in acquired lease intangible assets, net in the accompanying condensed consolidated balance sheets. As of December 31, 2023, above-market and in-place leases of approximately $0.8 million and $5.0 million (net of accumulated amortization), respectively, are included in acquired lease intangible assets, net in the accompanying condensed consolidated balance sheets. As of June 30, 2024, and December 31, 2023, approximately $0.7 million and $1.1 million (net of accumulated amortization), respectively, relating to below-market leases are included in acquired lease intangible liabilities, net in the accompanying condensed consolidated balance sheets.

The following table presents the projected impact for the remainder of 2024, the next five years and thereafter related to the net increase to rental revenue from the amortization of the acquired above-market and below-market lease intangibles and the increase to amortization expense of the in-place lease intangibles for properties owned at June 30, 2024 (in thousands):

	Net increase (decrease) to rental revenues			Increase to amortization expense
Remainder of 2024	$	120		$	517
2025		64			928
2026		(13	)		798
2027		4			564
2028		4			440
2029		(46	)		372
Thereafter		(171	)		823
	$	(38	)	$	4,442

Investment in Unconsolidated Affiliate:

The Company has an investment in an entity that is accounted for under the equity method of accounting. The equity method of accounting is used when an investor has influence, but not control, over the investee. The Company records its share of the profits and losses of the investee in the period when these profits and losses are also reflected in the accounts of the investee.

On February 28, 2018, the Company purchased a 50% interest in Two CPS Developers LLC (the “Investee”) for $5.25 million. The Company has the ability to exercise significant influence over the Investee, does not have a controlling interest in the Investee, and the Investee is not a variable interest entity. Therefore, the Company accounts for this investment under the equity method of accounting. The Company recorded income from this investment of $0.1 million for the six months ended June 30, 2024 and less than $0.1 million for the six months ended June 30, 2023.

The total assets and liabilities of the Company’s investment in unconsolidated affiliate as of June 30, 2024 were $16.3 million and $8.8 million, respectively. Total revenues and expenses of the Company’s investment in unconsolidated affiliate for the six months ended June 30, 2024 were approximately $0.9 million and $0.7 million, respectively. The total assets and liabilities of the Company’s investment in unconsolidated affiliate as of December 31, 2023 were $16.5 million and $9.0 million, respectively. Total revenues and expenses of the Company’s investment in unconsolidated affiliate for the six months ended June 30, 2023 were $0.8 million and $0.7 million, respectively.

Depreciation and Amortization:

The Company uses the straight-line method for depreciation and amortization. Properties and property improvements are depreciated over their estimated useful lives, which range from 5 to 40 years. Furniture, fixtures, and equipment are depreciated over estimated useful lives that range from 5 to 10 years. Tenant improvements are amortized over the shorter of the remaining non-cancellable term of the related leases or their useful lives.

Real Estate Impairment:

Management reviews each real estate investment for impairment whenever events or circumstances indicate that the carrying value of a real estate investment may not be recoverable. Significant management judgment is involved in determining if impairment indicators exist, assessing investments for recoverability, and, if required, measuring the fair value of the real estate investments. The review of recoverability is based on an estimate of the undiscounted future cash flows that are expected to result from the real estate investment’s use and eventual disposition. Such cash flow analyses consider assumptions such as expected future market rents, future revenue, market capitalization rates and holding periods, as well as the effects of leasing demand, competition and other factors. If an impairment event exists due to the projected inability to recover the carrying value of a real estate investment, an impairment loss is recorded to the extent that the carrying value exceeds estimated fair value. Management is required to make subjective assessments as to whether there are impairments in the value of the Company’s real estate holdings. These assessments could have a direct impact on net income, because an impairment loss is recognized in the period that the assessment is made. Management has determined that there was no impairment relating to its long-lived assets at June 30, 2024 or December 31, 2023.

Deferred Charges:

Deferred charges consist principally of leasing commissions, which are amortized over the life of the related tenant leases, and financing costs, relating to the Company’s secured revolving credit facility, which are amortized over the terms of the respective debt agreements. These deferred charges are included in other assets on the condensed consolidated balance sheets. If leases or loans are terminated, the unamortized charges are expensed.

Debt Issuance Costs:

Debt issuance costs relate to the Company’s mortgage notes payable, which are amortized over the term of the respective debt agreements. These debt issuance costs are included in mortgage notes payable, net on the condensed consolidated balance sheets. If mortgage notes payable are extinguished, the unamortized charges are expensed.

Reportable Segments:

As of June 30, 2024, the Company operates in one reportable segment, commercial real estate.

Revenue Recognition:

Rental income includes the base rent that each tenant is required to pay in accordance with the terms of their respective leases reported on a straight-line basis over the term of the lease. In order for management to determine, in its judgment, that the unbilled rent receivable applicable to each specific property is collectible, management reviews billed and unbilled rent receivables and takes into consideration the tenant’s payment history and financial condition. If the Company determines that the collectability of a tenant’s lease payments is not probable, then the write-off of the entire tenant receivable, including straight-line rent receivable, is presented as a reduction of revenue rather than an operating expense on the condensed consolidated statements of operations. Rental income related to tenants where the collectability of lease payments is not deemed probable will be recorded on a cash basis. Some of the leases provide for additional contingent rental revenue in the form of percentage rents and increases based upon the consumer price index, subject to certain maximums and minimums. For the six months ended June 30, 2024, the Company determined that collectability of one former tenant's outstanding lease payments was not probable and, therefore, the Company recorded a write-off of the entire tenant receivable in the amount of $0.1 million and placed the tenant on the cash basis as of March 31, 2024. In addition, the Company received $0.6 million in February 2024 in full settlement of amounts due from a previous tenant that was placed on the cash basis during 2023.

Substantially all of the Company’s properties are subject to long-term net leases under which the tenant is typically responsible to pay for its pro rata share of real estate taxes, insurance, and ordinary maintenance and repairs for the property.

Property operating expense recoveries from tenants of common area maintenance, real estate taxes, and other recoverable costs are included in revenues in the period that the related expenses are incurred.

Tenant receivables at June 30, 2024 and December 31, 2023 were $1.1 million and $0.5 million, respectively, and are included in other assets in the accompanying condensed consolidated balance sheets.

Future minimum contractual lease payments to be received by the Company (without taking into account straight-line rent, amortization of intangibles and tenant reimbursements) as of June 30, 2024, under operating leases for the remainder of 2024, the next five years, and thereafter are as follows (in thousands):

Remainder of 2024	$	31,384
2025		62,829
2026		62,010
2027		45,222
2028		37,743
2029		29,130
Thereafter		69,706
Total	$	338,024

Lease Accounting:

As lessor, the Company elected to utilize the practical expedient provided by Accounting Standards Update (“ASU”) 2018-11 related to the separation of lease and non-lease components and as a result, revenues related to leases are reported on one line within the condensed consolidated statements of operations.

The Company elected not to evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. Instead, these costs will be accounted for as if they are lessee costs. Consequently, the Company excludes from the consideration in the contract and from variable payments not included in the consideration in the contract all collections from lessees of taxes within the scope of the election and provides certain disclosures. The accounting policy election includes sales, use, value added, and some excise taxes but excludes real estate taxes.

The following table presents additional disclosures regarding the Company’s rental income for the six months ended June 30, 2024 and 2023 (in thousands):

	2024		2023
Fixed lease revenue	$	32,434	$	30,822
Variable lease revenue		6,884		6,316
Total lease revenue	$	39,318	$	37,138

As lessee, the Company elected to utilize the practical expedient in the implementation of ASU 2016-02 related to not separating non-lease components from the associated lease component. As lessee, the Company is a party to an office lease, effective October 1, 2021, having a term of ten years, with future lease obligations aggregating $3.0 million and $3.2 million as of June 30, 2024 and December 31, 2023, respectively (see Note 9). The Company has recorded a right-of-use asset and corresponding right-of-use liability at the present value of the remaining future minimum lease payments, based upon an incremental borrowing rate of 3.86%, of approximately $3.1 million as of October 1, 2021.

The following table presents the future lease obligations of the Company’s office lease for the remainder of 2024, the next five years, and thereafter (in thousands):

Remainder of 2024	$	177
2025		363
2026		374
2027		385
2028		397
2029		409
Thereafter		890
Total future minimum lease payments		2,995
Less imputed interest		381
Total right-of-use liability - operating lease	$	2,614

The following table presents additional disclosures regarding the Company’s office leases for the six months ended June 30, 2024 and 2023 (in thousands):

	2024		2023
Operating lease costs	$	176	$	169
Variable lease costs		6		15
Total lease costs	$	182	$	184

Earnings Per Share Information:

The Company presents both basic and diluted earnings per share. Basic earnings per share excludes dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower per share amount. Restricted stock and stock options were included in the computation of diluted earnings per share.

Cash and Cash Equivalents:

The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents.

Restricted Cash:

Restricted cash reserves are required under certain loan agreements and include reserves used to pay real estate taxes, leasing costs and capital improvements.

Fair Value Measurement:

The Company determines fair value in accordance with Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurement.” This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity.

Assets and liabilities disclosed at fair values are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are defined by ASC 820-10-35, are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. Determining which category an asset or liability falls within the hierarchy requires significant judgment, and the Company evaluates its hierarchy disclosures each quarter. The three-tier fair value hierarchy is as follows:

Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Valuations based on unobservable inputs reflecting management’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

Income Taxes:

The Company is organized and conducts its operations to qualify as a REIT for federal income tax purposes. Accordingly, the Company is generally not subject to federal income taxation on the portion of its distributable income that qualifies as REIT taxable income, to the extent that it distributes at least 90% of its REIT taxable income to its stockholders and complies with certain other requirements as defined in the Code.

The Company also participates in certain activities conducted by entities which elected to be treated as taxable subsidiaries under the Code. As such, the Company is subject to federal, state, and local taxes on the income from these activities.

The Company accounts for income taxes under the asset and liability method as required by the provisions of ASC 740-10-30. Under this method, deferred tax assets and liabilities are established based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.

ASC 740-10-65 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10-65, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740-10-65 also provides guidance on de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods and requires increased disclosures. As of June 30, 2024, and December 31, 2023, the Company had determined that no liabilities are required in connection with uncertain tax positions. As of June 30, 2024, the Company’s tax returns for the prior three years are subject to review by the Internal Revenue Service. Any interest and penalties would be expensed as incurred.

Concentrations of Credit Risk:

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, which from time-to-time exceed the federal depository insurance coverage. Beginning January 1, 2013, all interest and noninterest bearing transaction accounts deposited at an insured depository institution are insured by the Federal Deposit Insurance Corporation up to the standard maximum deposit amount of $250,000. Management believes that the Company is not exposed to any significant credit risk due to the credit worthiness of these financial institutions.

For the six months ended June 30, 2024, rental income of $4.8 million derived from five leases with the City of New York represented 12% of the Company’s rental income. For the six months ended June 30, 2023, rental income of $4.8 million derived from five leases with the City of New York represented 13% of the Company’s rental income.

For the six months ended June 30, 2024, rental income of $5.8 million derived from six leases with Federal Express represented 15% of the Company’s rental income. For the six months ended June 30, 2023, rental income of $5.3 million derived from five leases with Federal Express represented 14% of the Company’s rental income.

For the six months ended June 30, 2024, rental income of $3.9 million derived from one lease with Avis Rent-A-Car Systems, Inc. ("Avis") represented 10% of the Company’s rental income. For the six months ended June 30, 2023, rental income of $3.9 million derived from one lease with Avis represented 10% of the Company’s rental income.

Stock-Based Compensation:

The Company has a stock-based compensation plan which is described below in Note 6. The Company accounts for stock-based compensation in accordance with ASC Topic 718, “Compensation – Stock Compensation,” which establishes accounting for stock-based awards exchanged for employee services. Under the provisions of ASC Topic 718, share-based compensation cost is measured at the grant date or service-inception date (if it precedes the grant date), based on the fair value of the award. Share-based compensation is expensed at the grant date (for awards or portion of awards that vested immediately), or ratably over the respective vesting periods, determined from the start of the grant date or service-inception date through the date of vesting.

Recently Issued Accounting Pronouncements:

In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures.” The guidance requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on the income taxes paid. The guidance is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. ASU 2023-09 applies to all entities subject to income taxes. For public business entities, the new requirements will be effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the requirements will be effective for annual periods beginning after December 15, 2025. The guidance will be applied on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures,” which amends disclosure requirements about a public company’s reportable segments and addresses requests from investors for additionally detailed information about a reportable segment’s expenses. A public entity should apply the amendments provided by ASU 2023-07 retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements.

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Real Estate

6 Months Ended

Jun. 30, 2024

Real Estate [Abstract]

Real Estate

3. REAL ESTATE:

On January 18, 2023, the Company (through its Operating Partnership) acquired for cash a 435,600 square-foot parcel of land and land improvements located in Charlotte, NC for $28.7 million, exclusive of closing costs, which is subject to a 10-year lease to FedEx Ground expiring on July 31, 2032. There were no real estate acquisitions during the six months ended June 30, 2024.

The following table summarizes the Company’s allocation of the purchase price, including closing costs, of assets acquired during the six months ended June 30, 2023:

	Purchase Price
	Allocation
Land	$	17,383
Land improvements		8,029
Acquired lease intangible assets (1)		2,655
Other assets		940
Total consideration	$	29,007

(1)Acquired lease intangible assets include both in-place and above-market lease allocations.

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Mortgage Notes Payable

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Mortgage Notes Payable

4. MORTGAGE NOTES PAYABLE:

The following table sets forth a summary of the Company’s mortgage notes payable (in thousands):

				Principal			Principal
				Outstanding as of			Outstanding as of
Loan	Interest Rate			June 30, 2024			December 31, 2023			Maturity
People’s United Bank		4.18	%		14,518			14,710		10/15/2024
Allstate Life Insurance Company		4.00	%		34,381			34,808		4/1/2025
United States Life Insurance Company		3.82	%		39,000			39,000		1/1/2028
United States Life Insurance Company		4.25	%		32,348			32,632		4/1/2028
Transamerica Life Insurance Company		3.45	%		7,924			8,037		4/1/2030
American General Life Insurance Company		6.12	%		124,756			—		4/1/2031
American International Group 2022		4.63	%		225,000			225,000		9/1/2032
Transamerica Life Insurance Company 2023		5.40	%		25,000			25,000		8/1/2033
	Subtotal				502,927			379,187
	Unamortized loan costs				(12,558	)		(9,764	)
	Total			$	490,369		$	369,423

People’s United Bank Loan Agreement:

In connection with the acquisition in 2014 of an 84,000 square foot parking lot in Long Island City, Queens, NY, a wholly owned subsidiary of the Operating Partnership entered into a mortgage loan agreement with People’s United Bank in the aggregate amount of $15.5 million. The loan has a ten-year term and bears interest at 4.18%. Payments for the first seven years were interest only. Payments over the remaining three years of the term are based on a 25-year amortization schedule, with a balloon payment of $14.4 million due at maturity.

Allstate Loan Agreement:

On March 13, 2015, in connection with the acquisition of six properties in Piscataway, NJ, the Operating Partnership closed on a $39.1 million cross-collateralized mortgage (the “Allstate Loan”) from Allstate Life Insurance Company, Allstate Life Insurance Company of New York and American Heritage Life Insurance Company. The Allstate Loan Agreement provided a secured facility with a 10-year term loan. During the first three years of the term of the loan, it required interest-only payments at the rate of 4% per annum. Following this period until the loan matures on April 1, 2025, payments will be based on a 30-year amortization schedule, with a balloon payment of $33.7 million due at maturity.

United States Life Insurance Company Loan Agreement:

On December 20, 2017 (the “Closing Date”), four wholly owned subsidiaries of the Operating Partnership (collectively, the “U.S. Life Borrowers”) entered in a loan agreement (the “U.S. Life Loan Agreement”) with the United States Life Insurance Company in the City of New York (the “Lender”).

The U.S. Life Loan Agreement provides for a secured loan facility in the principal amount of $39.0 million (the “Loan Facility”). The Loan Facility is a 10-year term loan that requires interest-only payments at the rate of 3.82% per annum. During the period from February 1, 2018 to December 1, 2027, payments of interest only on the principal balance of the U.S. Life Note (as defined below) will be payable in arrears, with the entire principal balance due and payable on January 1, 2028, the loan maturity date. Subject to certain conditions, the U.S. Life Borrowers may prepay the outstanding loan amount in whole on or after January 1, 2023, by providing advance notice of the prepayment to the Lender and remitting a prepayment premium equal to the greater of 1% of the then outstanding principal amount of the Loan Facility or the then present value of the U.S. Life Note (as defined below). The U.S. Life Borrowers paid the Lender a one-time application fee of $50,000 in connection with the Loan Facility. The U.S. Life Borrowers’ obligation to pay the principal, interest and other amounts under the Loan Facility is evidenced by the secured promissory note executed by the U.S. Life Borrowers as of the Closing Date (the “U.S. Life Note”). The U.S. Life Note is secured by certain mortgages encumbering the U.S. Life Borrowers’ properties (a total of four properties) located in New York, New Jersey and Delaware. In the event of default, the initial rate of interest on the U.S. Life Note will increase to the greatest of (i) 18% per annum, (ii) a per annum rate equal to 4% over the prime established rate, or (iii) a per annum rate equal to 5% over the original interest rate, all subject to the applicable state or federal laws. The U.S. Life Note contains other terms and provisions that are customary for instruments of this nature.

United States Life Insurance Company Loan Agreement:

On March 21, 2018, four wholly owned subsidiaries of the Operating Partnership refinanced the current outstanding debt on certain properties by entering into a loan agreement with the United States Life Insurance Company in the City of New York. The loan agreement provides for a secured loan facility in the principal amount of $33.0 million. The loan facility is a ten-year term loan that requires interest-only payments at the rate of 4.25% per annum on the principal balance for the first five years of the term and principal and interest payments (amortized over a 30-year period) during the second five years of the term. The entire principal balance is due and payable on April 1, 2028, the loan maturity date.

Transamerica Life Insurance Company Loan Agreement:

On March 24, 2020, two wholly owned subsidiaries of the Operating Partnership entered into a loan agreement with Transamerica Life Insurance Company. The loan agreement provides for a cross-defaulted, cross-collateralized portfolio of commercial mortgage loans in the aggregate principal amount of $8.4 million. The loan is evidenced by secured promissory notes. Each note is made by one of the borrowers and the combined principal amounts of the notes are equal to the amount of the loan.

The term of each note is ten years and requires (i) interest-only payments at the rate of 3.45% per annum on the principal balance of the note until April 1, 2022 and (ii) principal and interest payments (amortized over a 25-year period commencing at the end of the interest-only period) from May 1, 2022 through March 1, 2030. The entire principal balance of each note is due and payable on April 1, 2030, the loan maturity date. Subject to the terms of the loan agreement, each note may be prepaid in whole upon not less than 30 days’ prior written notice to the lender. Subject to certain exceptions, upon prepayment, the borrowers must remit a prepayment premium equal to the greater of (i) 1% of the prepayment amount and (ii) a yield protection amount calculated in accordance with the terms of the notes. If a default exists, the outstanding principal balance of the notes shall, at the option of the lender, bear interest at a rate equal to the lesser of (i) 10% per annum over the note rate and (ii) the highest rate of interest permitted to be paid or collected by applicable law with respect to the loan. The notes contain other terms and provisions that are customary for instruments of this nature.

American General Life Insurance Company:

On March 15, 2024, three wholly owned subsidiaries of the Operating Partnership refinanced the current outstanding debt on certain properties by entering into a loan agreement with American General Life Insurance Company. The loan agreement provides for a cross-defaulted, cross-collateralized portfolio of commercial mortgage loans in the aggregate principal amount of $125.0 million.

The loan is a seven-year term loan that requires payments based on a 30-year amortization schedule at the rate of 6.12% per annum with the entire principal balance plus any accrued and unpaid interest due and payable on April 1, 2031. Subject to certain conditions, the outstanding loan amounts can be prepaid in whole on or before October 1, 2030, by providing advance notice of prepayment to the lender and remitting a prepayment premium equal to the greater of (i) 1.0% of the then outstanding principal amount of the loan or (ii) the then present value of the monthly payments of interest only which would be due from the prepayment date through October 1, 2030 based on the principal amount of the loan being prepaid on the prepayment date and assuming an interest rate per annum in the amount, if any, by which the interest rate exceeds the Yield Maintenance Treasury Rate (as defined in the Loan Agreement).

The Company used a portion of the proceeds from the refinancing to pay off $90 million of indebtedness that was outstanding under its senior secured credit facility with Keybank National Association, consisting of $40 million under the revolving credit facility and $50 million under the term loan.

American International Group 2022 Loan Agreement:

On August 5, 2022, certain subsidiaries of the Operating Partnership (collectively, the “Borrowers”) refinanced the current outstanding debt on certain properties (the "prior AIG Loan Agreements") by entering into new loan agreements (collectively the “American International Group 2022 Loan Agreement”) with AIG Asset Management (U.S.), LLC, as administrative agent, and the other lenders, American General Life Insurance Company, the Variable Annuity Life Insurance Company and the United States Life Insurance Company in the City of New York in a transaction that was accounted for as a loan modification. In connection with the modification, the Company incurred loan related costs of approximately $7.9 million, inclusive of a prepayment fee of $5.1 million under the prior AIG Loan Agreements.

The American International Group 2022 Loan Agreement provides for secured loans in the aggregate principal amount of $225.0 million (collectively, the “2022 AIG Loans”), consisting of a loan secured by certain properties in New York in the principal amount of $144.3 million and a loan secured by certain properties in Connecticut and New Jersey in the principal amount of $80.7 million. The 2022 AIG Loans require the Borrowers to make monthly interest-only payments at the rate of 4.63% per annum with the entire principal balance plus any accrued and unpaid interest due and payable on September 1, 2032. The 2022 AIG Loans are secured by certain mortgages encumbering 25 properties in New York, New Jersey and Connecticut.

Transamerica Life Insurance Company 2023 Loan Agreement:

On July 31, 2023, three wholly owned subsidiaries of the Operating Partnership entered into a loan agreement with Transamerica Life Insurance Company. The loan agreement provides for a cross-defaulted, cross-collateralized portfolio of commercial mortgage loans in the aggregate principal amount of $25.0 million. The loan is evidenced by secured promissory notes. Each note is made by one of the borrowers and the combined principal amounts of the notes are equal to the amount of the loan.

The term of each note is ten years and requires (i) interest-only payments at the rate of 5.4% per annum on the principal balance of the note until August 1, 2026 and (ii) principal and interest payments (amortized over a 30-year period commencing at the end of the interest-only period) from September 1, 2026 through July 1, 2033. The entire principal balance of each note is due and payable on August 1, 2033, the loan maturity date. Subject to the terms of the loan agreement, each note may be prepaid in whole upon not less than 30 days’ prior written notice to the lender. Subject to certain exceptions, upon prepayment, the borrowers must remit a prepayment premium equal to the greater of (i) 1% of the prepayment amount and (ii) a yield protection amount calculated in accordance with the terms of the notes. If a default exists, the outstanding principal balance of the notes shall, at the option of the lender, bear interest at a rate equal to the lesser of (i) 10% per annum over the note rate and (ii) the highest rate of interest permitted to be paid or collected by applicable law with respect to the loan. The notes contain other terms and provisions that are customary for instruments of this nature.

In connection with all loan agreements, the Company is required to comply with certain covenants. As of June 30, 2024, the Company was in compliance with all covenants.

Principal Repayments:

Scheduled principal repayments for the remainder of 2024, the next five years and thereafter are as follows (in thousands):

Remainder of 2024	$	16,105
2025		36,341
2026		2,641
2027		3,019
2028		71,697
2029		2,656
Thereafter		370,468
Total	$	502,927

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Secured Revolving Credit Facility & Term Loan Payable

6 Months Ended

Jun. 30, 2024

Line of Credit Facility [Abstract]

Secured Revolving Credit Facility & Term Loan Payable

5. SECURED REVOLVING CREDIT FACILITY & TERM LOAN PAYABLE:

Key Bank Loan Agreement:

On December 2, 2015, the Operating Partnership entered into a Credit Agreement (the “Key Bank Credit Agreement”) with Keybank National Association and Keybanc Capital Markets Inc., as lead arranger (collectively, “Key Bank”). The Key Bank Credit Agreement contemplated a $50.0 million revolving line of credit facility, with an initial term of two years, with a one-year extension option, subject to certain other customary conditions. Through the exercise of additional extension options, the Operating Partnership extended the maturity date of the secured revolving credit facility through June 30, 2022.

On October 22, 2021, the Operating Partnership entered into a First Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) with Key Bank and the other lenders parties thereto (collectively, the “Lenders”). The maturity date of the secured revolving credit facility was extended from June 30, 2022 under the Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement provided for a $60 million senior secured credit facility (the “Credit Facility”), consisting of (i) a $10 million revolving line of credit facility, with an initial term of three years and two one-year extension options, subject to certain other customary conditions (the “Revolver”) and (ii) a $50 million term loan facility, with an initial term of four years and a one-year extension option and subject to certain other customary conditions, which was funded in a single advance on October 22, 2021 (the “Term Loan”). Up to $10 million of the total commitments under the Credit Facility will be available for the issuance of letters of credit and swing line loans. Loan costs paid in connection with the Credit Facility were $0.5 million.

So long as no default or event of default has occurred and is continuing, the Operating Partnership shall have the right, from time to time, to request an increase in the size of the Term Loan, request an additional incremental term loan facility, or increase commitments under the Revolver, collectively in an aggregate amount that would not cause the Credit Facility to exceed $125 million (the “Accordion”). Accordion commitments can be committed at closing or any time thereafter and the Accordion commitments will be syndicated on a best-efforts basis.

Prior to the First Amendment (defined below), loans drawn down by the Operating Partnership under the Credit Facility were required to specify, at the Operating Partnership’s option, whether they were base rate loans or LIBOR rate loans. Borrowings under the Credit Facility bore interest at a rate equal to, at the Operating Partnership’s option, either (1) the applicable average LIBOR rate as shown in Reuters Screen LIBOR01 Page (or any successor service, or commercially available source providing such quotations); provided if the rate shown on Reuters Screen LIBOR01 Page (or any successor service) was less than zero, such rate was deemed to be zero, or (2) a base rate determined by reference to the greatest of (a) the fluctuating annual rate of interest announced from time to time by Key Bank as its “prime rate,” (b) 0.50% above the federal funds effective rate, or (c) then applicable LIBOR for an interest period of one (1) month plus 1.00% per annum; provided that in no event would the Base Rate be less than zero, and in each case of clauses (1) and (2), plus an applicable margin, depending upon the overall leverage of the properties and whether the loan was under the Revolver or Term Loan facilities. Base Rate loans and LIBOR rate loans could be converted to loans of the other type, subject to certain conversion conditions. Each Revolver loan will be evidenced by a separate promissory note.

The Operating Partnership agreed to pay to the Lenders an unused fee under the Revolver in the amount calculated as 0.20% for usage less than 50% and 0.15% for usage 50% or greater, calculated as a per diem rate, multiplied by the excess of the total commitment over the outstanding principal amount of the loans under the total Revolver commitment at the time of the calculation. The Operating Partnership has the right to reduce the amount of loan commitments under the Revolver or terminate the Revolver in accordance with the terms and conditions of the Amended and Restated Credit Agreement.

Due to the revolving nature of the Revolver, amounts prepaid under the Revolver may be borrowed again, provided availability under the Amended and Restated Credit Agreement permits. Amounts repaid under the Term Loan may not be

re-borrowed. The Amended and Restated Credit Agreement contemplates (i) mandatory prepayments by the Operating Partnership of any borrowings under the Credit Facility in excess of the total allowable commitment, among other events, and (ii) optional prepayments, at any time without any fees or penalty, in whole or in part, subject to payments of any amounts due associated with the prepayment of LIBOR rate contracts.

The Operating Partnership’s obligations under the Credit Facility are secured by (i) perfected first priority lien and security interest to be held by Key Bank for the benefit of the Lenders in certain of the property, rights and interests of the Operating Partnership, the guarantors and their subsidiaries now existing and as may be acquired, and (ii) any new real estate or any interest therein or to refinance indebtedness secured thereby, financed by the Credit Facility, in whole or in part, which shall be subject to approval by Key Bank in its reasonable discretion, which will serve as additional collateral for the Credit Facility. Any subsidiaries that are not prohibited from being guarantors shall be guarantors. The parties to the Amended and Restated Credit Agreement also entered into several side agreements, including, the Joinder Agreements, the Assignment of Interests, the Acknowledgments, the Mortgages, the Guaranty, and other agreements and instruments to facilitate the transactions contemplated under the Amended and Restated Credit Agreement. Such agreements contain terms and provisions that are customary for instruments of this nature.

The Operating Partnership’s continuing ability to borrow under the Credit Facility will be subject to its ongoing compliance with various affirmative and negative covenants, including, among others, with respect to maximum consolidated leverage ratio, minimum consolidated fixed charge coverage ratio, minimum liquidity, minimum consolidated tangible net worth, minimum debt yield, maximum distributions, minimum occupancy, permitted investments and restrictions on indebtedness. The Amended and Restated Credit Agreement contains events of default and remedies customary for loan transactions of this sort including, among others, those related to a default in the payment of principal or interest, an inaccuracy of a representation or warranty, and a default with regard to performance of certain covenants. The Amended and Restated Credit Agreement includes customary representations and warranties of the Operating Partnership, which must continue to be true and correct in all material respects as a condition to future draws. In addition, the Amended and Restated Credit Agreement also includes customary events of default (in certain cases subject to customary cure), in the event of which, amounts outstanding under the Credit Facility may be accelerated.

The contemplated uses of proceeds under the Amended and Restated Credit Agreement include the (i) payment of closing costs in connection with the Amended and Restated Credit Agreement, (ii) repayment of indebtedness, (iii) acquisitions, development and capital improvements, (iv) general corporate and working capital purposes, and (v) purchase contract deposits and, subject to the terms and conditions of the Amended and Restated Credit Agreement, stock repurchases.

On August 5, 2022 (the “Closing Date”), the Operating Partnership entered into a First Amendment (the “First Amendment”) to the First Amended and Restated Credit Agreement with Key Bank, as agent and lender, First Financial Bank, as lender, and the Company and certain direct and indirect subsidiaries of the Company as guarantors. The First Amendment amended the First Amended and Restated Credit Agreement to, among other things, (i) increase the amount available under the Revolver from $10 million to $40 million, (ii) extend the maturity date of the Revolver from October 22, 2024 to August 5, 2025, (iii) extend the maturity date of the Term Loan from October 22, 2025 to August 5, 2026, (iv) replace the interest rate option based on LIBOR with interest rate options based on the Secured Overnight Financing Rate (“SOFR”), including term SOFR and daily simple SOFR, and (v) add certain subsidiaries of the Operating Partnership as guarantors, and mortgages encumbering properties owned by such subsidiaries as collateral. In connection with the First Amendment, the Company incurred loan related costs of $0.5 million, which are included as a component of other assets in the accompanying condensed consolidated balance sheet.

As amended by the First Amendment, the Amended and Restated Credit Agreement provides for a $90 million Credit Facility, consisting of (i) a $40 million Revolver, with an initial term of three years from the Closing Date and two one-year extension options, subject to certain other customary conditions and (ii) a $50 million Term Loan, with an initial term of four years from the Closing Date and a one-year extension option and subject to certain other customary conditions, which was funded in a single advance on October 22, 2021. In connection with the release of certain encumbered properties as collateral upon disposition, the net disposition proceeds must be used to pay down the Credit Facility and any amounts applied to reduce the outstanding amount of the Revolver will result in a pro rata reduction in the amount available under the Revolver (subject to certain conditions).

As amended by the First Amendment, loans drawn down by the Operating Partnership under the Credit Facility must specify, at the Operating Partnership’s option, whether they are base rate loans, daily simple SOFR rate loans or term SOFR rate loans. Borrowings under the Credit Facility bear interest at a rate equal to, at the Operating Partnership’s option, either (1) daily simple SOFR plus 0.1% (but in no case shall the rate be less than zero), (2) term SOFR plus 0.1% (but in no case shall the rate be less than zero) (“Adjusted Term SOFR”), or (3) a base rate determined by reference to the greatest of (a) the fluctuating annual rate of interest announced from time to time by Key Bank as its “prime rate,” (b) 0.50% above the federal funds effective rate, (c) Adjusted Term SOFR for a one month tenor plus 1.0% and (d) 1.0%, and in each case of clauses (1), (2) and (3), plus an applicable margin, depending upon the overall leverage of the properties and whether the loan is under the Revolver or Term Loan facilities. Base rate loans and SOFR rate loans may be converted to loans of the other type, subject to certain conversion conditions.

On March 15, 2024, the outstanding balances of $50.0 million under the Term Loan and $40.0 million under the Revolver were both paid in full.

There were no outstanding borrowings under the Term Loan as of June 30, 2024. There were outstanding borrowings under the Term Loan of $50.0 million as of December 31, 2023, which were SOFR rate borrowings. There are no unamortized loan costs for the Term Loan as of June 30, 2024. Unamortized loan costs for the Term Loan as of December 31, 2023 were $0.2 million and are included in term loan payable, net in the accompanying condensed consolidated balance sheet.

There were no outstanding borrowings under the Revolver with Key Bank as of June 30, 2024. There were outstanding borrowings under the Revolver with Key Bank of $40.0 million as of December 31, 2023, which were SOFR rate borrowings. Unamortized loan costs for the Revolver were $0.2 million and $0.3 million as of June 30, 2024 and December 31, 2023, respectively, and are included in other assets in the accompanying condensed consolidated balance sheets.

Amortization of loan costs with Key Bank were $0.1 million for both the three months ended June 30, 2024 and June 30, 2023. Amortization of loan costs with Key Bank were $0.3 million and $0.1 million for the six months ended June 30, 2024 and June 30, 2023, respectively. Amortization of loan costs is included in interest expense in the accompanying condensed consolidated statements of operations.

As of June 30, 2024, the Operating Partnership was in compliance with all covenants required in connection with the Amended and Restated Credit Agreement.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Stockholders' Equity

6. STOCKHOLDERS’ EQUITY:

Preferred Stock:

The Company is authorized to issue 10,000,000 shares of preferred stock, $.0001 par value per share. Voting and other rights and preferences may be determined from time to time by the Board of Directors (the “Board”) of the Company. The Company has designated 500,000 shares of preferred stock as Series A preferred stock, $.0001 par value per share. In addition, the Company has designated 6,500,000 shares of preferred stock as Series B preferred stock, $.0001 par value per share. There are no voting rights associated with the Series B preferred stock. There was no Series A preferred stock or Series B preferred stock outstanding as of June 30, 2024, or December 31, 2023.

Common Stock:

The Company is authorized to issue 100,000,000 shares of common stock, $.0001 par value per share. As of June 30, 2024, and December 31, 2023, the Company had a total of 13,345,980 and 13,326,965 shares of common stock issued and outstanding, respectively.

On June 26, 2024, the Company withheld 30,797 shares of common stock pursuant to its 2017 Incentive Award Plan (the "2017 Plan") from certain officers of the Company and a member of the Board at a price of $22.50 per share for a total consideration of approximately $0.7 million to satisfy tax withholding obligations payable upon the vesting of restricted stock.

On June 5, 2024, the Company purchased 76,628 shares of common stock pursuant to its share redemption program at a purchase price of $26.10 per share for a total consideration of approximately $2.0 million.

On November 9, 2023, the Company purchased 6,944 shares of common stock pursuant to a certain Order dated September 19, 2023 of the United States Bankruptcy Court for the Eastern District of New York at a purchase price of $9.65 per share for a total consideration of approximately $67,010 from the Chapter 7 estate of a stockholder.

On June 2, 2023, the Company purchased 95,011 shares of common stock pursuant to its share redemption program at a purchase price of $21.05 per share for a total consideration of approximately $2.0 million.

Dividend Distributions:

The following table presents dividends declared by the Company on its common stock during the six months ended June 30, 2024:

Declaration	Record	Payment	Dividend
Date	Date	Date	Per Share
March 12, 2024	March 31, 2024	April 12, 2024	$	0.66	(1)
March 12, 2024	March 31, 2024	April 15, 2024	$	0.12
June 13, 2024	June 30, 2024	July 12, 2024	$	0.12

(1)This represents a 2023 supplemental dividend.

Noncontrolling Interest:

On September 19, 2023, the Operating Partnership, pursuant to a certain Order dated September 19, 2023 of the United States Bankruptcy Court for the Eastern District of New York, purchased 15,202 Common and Class B limited partner units of the Operating Partnership for cash consideration of $32,214,363 from the Chapter 7 estate of a limited partner.

Stock Based Compensation:

The Company had a 2007 Incentive Award Plan (the “2007 Plan”) that had the intended purpose of furthering the growth, development, and financial success of the Company and obtaining and retaining the services of those individuals considered essential to the long-term success of the Company. The 2007 Plan provided for awards in the form of restricted shares, incentive stock options, non-qualified stock options and stock appreciation rights. The aggregate number of shares of common stock which may have been awarded under the 2007 Plan was 1,000,000 shares. The 2007 Plan expired by its terms on June 11, 2017.

The 2017 Plan was adopted by the Board and became effective on April 24, 2017, subject to the approval of the Company’s stockholders, which was obtained on June 8, 2017. The 2017 Plan has the intended purpose of furthering the growth, development, and financial success of the Company and obtaining and retaining the services of those individuals considered essential to the long-term success of the Company. The 2017 Plan provides for awards in the form of stock, stock units, incentive stock options, non-qualified stock options and stock appreciation rights. The aggregate number of shares of common stock which may be awarded under the 2017 Plan is 2,000,000 shares. On July 25, 2020, the Board approved an amendment to the 2017 Plan to permit the transfer of awards that have been exercised, or the shares of common stock underlying such awards which have been issued, and all restrictions applicable to such shares of common stock have lapsed. As of June 30, 2024, the Company had 904,451 shares available for future issuance under the 2017 Plan. Dividends paid on restricted shares are recorded as dividends on shares of the Company’s common stock whether or not they are vested. In accordance with ASC 718-10-35, the Company measures the compensation costs for these shares as of the date of the grant and the expense is recognized in earnings at the grant date (for the portion that vests immediately) and then ratably over the respective vesting periods.

On November 8, 2016, 200,000 non-qualified stock options were granted to key officers of the Company and had a three-year vesting period. For this grant, the exercise price was $10.40 per share and was equal to the value per share based upon a valuation of the shares conducted by an independent third party for the purpose of valuing shares of the Company’s common stock. The fair value of these stock options was based upon the Black-Scholes option pricing model, calculated at the grant date.

On July 1, 2022, 400,000 non-qualified stock options were granted to key officers of the Company and had a three-year vesting period. For this grant, the exercise price was $18.15 per share and was equal to the value per share based upon a valuation of the shares conducted by an independent third party for the purpose of valuing shares of the Company’s common stock. The fair value of these stock options was based upon the Black-Scholes option pricing model, calculated at the grant date.

All options expire ten years from the date of grant. For both the six months ended June 30, 2024 and June 30, 2023 there was $0.2 million of stock compensation expense relating to these options.

The following table presents shares issued by the Company under the 2007 Plan and the 2017 Plan:

Shares Issued Under the 2007 Plan
Grant	Total		Value		Approximate
Date	Shares Issued		Per Share		Value of Shares		Vesting Period
April 30, 2012		55,149	$	6.80	$	375,000	3 Years	(2)
June 7, 2012		5,884	$	6.80	$	40,000	Immediately	(1)
March 21, 2013		46,876	$	6.40	$	300,000	3 Years	(2)
March 21, 2013		3,126	$	6.40	$	20,000	Immediately	(1)
June 6, 2013		9,378	$	6.40	$	60,000	Immediately	(1)
June 4, 2014		44,704	$	6.80	$	304,000	5 years	(2)
June 19, 2014		8,820	$	6.80	$	60,000	Immediately	(1)
March 26, 2015		43,010	$	9.30	$	400,000	5 years	(2)
June 19, 2015		16,436	$	10.65	$	175,000	Immediately	(1)
March 24, 2016		47,043	$	10.40	$	489,000	5 years	(2)
June 9, 2016		14,424	$	10.40	$	150,000	Immediately	(1)
May 22, 2017		34,482	$	11.60	$	400,000	9 years	(2)
May 31, 2017		7,929	$	11.60	$	92,000	Immediately	(3)
June 8, 2017		15,516	$	11.60	$	180,000	Immediately	(1)
Shares Issued Under the 2017 Plan
Grant	Total		Value		Approximate
Date	Shares Issued		Per Share		Value of Shares		Vesting Period
June 7, 2018		42,918	$	11.65	$	500,000	9 Years	(2)
June 7, 2018		15,020	$	11.65	$	175,000	Immediately	(1)
June 5, 2019		64,654	$	11.60	$	750,000	9 Years	(2)
June 5, 2019		15,085	$	11.60	$	175,000	Immediately	(1)
June 4, 2020		72,834	$	12.70	$	925,000	9 Years	(2)
June 4, 2020		16,530	$	12.70	$	210,000	Immediately	(1)
June 10, 2021		123,947	$	11.90	$	1,475,000	9 Years	(2)
June 10, 2021		22,686	$	11.90	$	270,000	Immediately	(1)
June 9, 2022		85,398	$	18.15	$	1,550,000	9 Years	(2)
June 9, 2022		14,874	$	18.15	$	270,000	Immediately	(1)
June 8, 2023		78,548	$	16.55	$	1,300,000	9 Years	(2)
June 8, 2023		16,615	$	16.55	$	275,000	Immediately	(1)
June 13, 2024		111,776	$	22.50	$	2,515,000	9 Years	(2)
June 13, 2024		14,664	$	22.50	$	330,000	Immediately	(1)

(1)Shares issued to non-management members of the Board of Directors.

(2)Shares issued to certain executives of the Company.

(3)Shares issued to current and former executives of the Company in connection with the exercise of previously issued options.

The Board of Directors has determined the value of a share of common stock at December 31, 2023 to be $22.50 based on a valuation completed with the assistance of an independent third party for purposes of valuing shares of the Company’s stock pursuant to the 2017 Plan.

For the six months ended June 30, 2024 and 2023, the Company’s total stock-based compensation in the statement of equity was approximately $1.5 million and $1.3 million, respectively. As of June 30, 2024, there was approximately $3,980,000 of unamortized stock compensation related to restricted stock. That cost is expected to be recognized over a weighted average period of 2.4 years.

At June 30, 2024, 600,000 stock options were outstanding, of which 200,000 were vested and 400,000 were non-vested, and 1,107,539 shares of restricted stock were outstanding, 886,011 of which are vested.

The following is a summary of restricted stock activity:

				Weighted Average
				Grant Date Fair
	Shares			Value
Non-vested shares outstanding as of December 31, 2023		161,945		$	14.91
New shares issued through June 30, 2024		126,440		$	22.50
Vested		(66,857	)	$	20.09
Non-vested shares outstanding as of June 30, 2024		221,528		$	17.96

The following is a vesting schedule of the non-vested shares of restricted stock outstanding as of June 30, 2024:

	Number of Shares
Remainder of 2024		35,561
2025		59,429
2026		42,995
2027		31,100
2028		21,875
2029		14,461
Thereafter		16,107
Total Non-vested Shares		221,528

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Earnings per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings per Share

7. EARNINGS PER SHARE:

In accordance with ASC Topic 260 “Earnings Per Share,” basic earnings per common share (“Basic EPS”) is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per common share (“Diluted EPS”) is computed by dividing net income attributable to common stockholders by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. There were 184,889 and 35,650 common share equivalents related to stock options in the six months ended June 30, 2024 and 2023, respectively, presented in Diluted EPS. For the three months ended June 30, 2024, common share equivalents are not included in Diluted EPS since they would have been anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share information for the three and six months ended June 30, 2024 and 2023 (in thousands, except share and per share data):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2024			2023		2024		2023
Numerator:
Net (loss) income attributable to common stockholders	$	(1,733	)	$	1,163	$	1,247	$	3,763
Denominator:
Weighted average common shares outstanding – basic		13,328,389			13,327,529		13,327,677		13,330,626
Weighted average common shares outstanding – diluted		13,328,389			13,363,179		13,512,566		13,366,275
Basic and Diluted Per Share Information:
Net income per share – basic	$	(0.13	)	$	0.09	$	0.09	$	0.28
Net income per share – diluted	$	(0.13	)	$	0.09	$	0.09	$	0.28

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Related Party Transactions

6 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

Related Party Transactions

8. RELATED PARTY TRANSACTIONS:

Green Holland Management LLC:

Paul Cooper, the Chairman and Chief Executive Officer of the Company, and Louis Sheinker, the President, Secretary and Chief Operating Officer of the Company, each hold a 50% interest in a real estate brokerage firm, Green Holland Management LLC ("GHM"). In October 2022, the Company sold a property to a buyer that was introduced to the property by a broker working for GHM. GHM received a brokerage commission of $600,000. In January 2023, the Company purchased a property and was introduced to the property by a broker working for GHM, resulting in $574,000 of brokerage commissions.

The Rochlin Organization:

Paul Cooper and Louis Sheinker each held minority ownership interests in a real estate brokerage firm, The Rochlin Organization ("Rochlin") through their ownership of GHM. Paul Cooper and Louis Sheinker did not engage in management activities for Rochlin. In November 2023, GHM sold its interest in The Rochlin Organization to Adam Rochlin and The Rochlin Organization.

612 Wortman Avenue:

Rochlin acted as the exclusive broker for one of the Company’s properties. In 2013, Rochlin introduced a new tenant to the property, resulting in the execution of a lease agreement and a subsequent lease modification and Rochlin earning brokerage commissions. In subsequent years, the tenant expanded square footage and exercised renewal options, resulting in Rochlin earning additional brokerage commissions. In July 2020, Rochlin introduced an additional tenant to the property, resulting in the execution of a lease agreement and Rochlin earning a brokerage commission of approximately $406,000 on the aggregate contractual rents of approximately $21,000,000. In June 2023, a successor of the original tenant concluded negotiations to extend their current lease and also expand the premises which resulted in approximately $1,500,000 of brokerage commissions for Rochlin on the aggregate contractual rents of approximately $32,300,000.

23-85 87th Street:

In October 2022, Rochlin acted as the exclusive broker for this property. The tenant signed an extension agreement which resulted in approximately $2,900,000 of brokerage commissions on the aggregate contractual rents of approximately $82,500,000.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. COMMITMENTS AND CONTINGENCIES:

Legal Matters:

The Company is involved in lawsuits and other disputes which arise in the ordinary course of business. However, management believes that these matters will not have a material adverse effect, individually or in the aggregate, on the Company’s financial position or results of operations.

Environmental Matters:

As of June 30, 2024, three of the Company’s six former bus depot sites have received final regulatory closure, satisfying outstanding clean-up obligations related to legacy site contamination issues. Three sites continue with on-going cleanup, monitoring and reporting activities. The Company believes each of the six sites remain in compliance with existing local, state and federal obligations.

Real Property Used By the Company in Its Business

On December 11, 2020, the Company signed a ten-year four-month lease, with one five-year option to extend the lease, as tenant with Steel Garden LLC, as landlord, for the premises located at 1399 Franklin Avenue, Suite 100, Garden City, New York. The lease commencement date was October 1, 2021 (see Note 2). The monthly minimum rent for the first year of the lease term was $27,755.21 with 3% annual rental increases, and the Company was entitled to four months of free minimum rent.

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Fair Value

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value

10. FAIR VALUE:

Fair Value of Financial Instruments:

The fair value of the Company’s financial instruments is determined based upon applicable accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance requires disclosure of the level within the fair value hierarchy in which the fair value measurements fall, including measurements using quoted prices in active markets for identical assets or liabilities (Level 1), quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active (Level 2), and significant valuation assumptions that are not readily observable in the market (Level 3).

The fair values of cash and cash equivalents, restricted cash, rent and other receivables, dividends payable, accounts payable and accrued expenses approximated their carrying value because of the short-term nature based on Level 1 inputs. The fair values of mortgage notes payable are based on the discounted cash flow method using current treasury rates and commercial loan spreads, which are Level 2 inputs. The fair values of secured revolving credit facility and term loan payable are based on borrowing rates available to the Company, which are Level 2 inputs. The carrying values of term loan payable and mortgage notes payable are stated at their principal balances below.

The following table summarizes the carrying values and the estimated fair values of the financial instruments (in thousands):

	June 30, 2024				December 31, 2023
	Carrying		Estimated		Carrying		Estimated
	Value		Value		Value		Value
Financial assets:
Cash and cash equivalents	$	49,581	$	49,581	$	27,913	$	27,913
Restricted cash		973		973		1,400		1,400
Rent and other receivables		1,103		1,103		569		569
Financial liabilities:
Dividends payable		1,602		1,602		1,333		1,333
Accounts payable and accrued expenses		4,327		4,327		5,234		5,234
Secured revolving credit facility		—		—		40,000		40,000
Term loan payable		—		—		50,000		50,000
Mortgage notes payable		502,927		464,358		379,187		345,009

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Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

11. SUBSEQUENT EVENTS:

On August 6, 2024, our Board of Directors declared a quarterly cash dividend of $0.12 per share of common stock, payable with respect to the third quarter ended September 30, 2024, to common stockholders of record as of the close of business on September 30, 2024, payable on October 11, 2024.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation:

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the financial statements of the Company, its wholly owned subsidiaries, and the Operating Partnership, as the Company makes all operating and financial decisions for (i.e., exercises control over) the Operating Partnership. All material intercompany transactions have been eliminated. The ownership interests of the other investors in the Operating Partnership are presented as noncontrolling interests.

The accompanying unaudited condensed consolidated interim financial information has been prepared according to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations. The Company’s management believes that the disclosures presented in these unaudited condensed consolidated financial statements are adequate to make the information presented not misleading. In management’s opinion, all adjustments and eliminations, consisting only of normal recurring adjustments, necessary to present fairly the financial position and results of operations for the reported periods have been included. The results of operations for such interim periods are not necessarily indicative of the results for the full year. The accompanying unaudited condensed consolidated interim financial information should be read in conjunction with the Company’s December 31, 2023, audited consolidated financial statements, as previously filed with the SEC on Form 10-K on March 21, 2024.

Use of Estimates

Use of Estimates:

The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, and related disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. All of these estimates reflect management’s best judgment about current economic and market conditions and their effects based on information available as of the date of these condensed consolidated financial statements. If such conditions persist longer or deteriorate further than expected, it is reasonably possible that the judgments and estimates could change, which may result in impairments of certain assets. Significant estimates include the useful lives of long-lived assets including property, equipment and intangible assets, impairment of assets, collectability of receivables, contingencies, stock-based compensation, and fair value of assets and liabilities acquired in business combinations and asset acquisitions.

Reclassification

Reclassification:

None of the prior year amounts have been reclassified for consistency with the current year presentation.

Real Estate

Real Estate:

Real estate assets are stated at cost, less accumulated depreciation and amortization. All costs related to the improvement or replacement of real estate properties, including interest expense on development properties, are capitalized. Acquisition related costs are capitalized for asset acquisitions. Additions, renovations, and improvements that improve the value and/or extend the useful life of a property are also capitalized. Expenditures for ordinary maintenance, repairs, and improvements that do not materially prolong the normal useful life of an asset are charged to operations as incurred.

The Company capitalizes all direct costs of real estate under development until the end of the development period. In addition, the Company capitalizes the indirect cost of insurance and real estate taxes allocable to real estate under development during the development period. The Company also capitalizes interest using the avoided cost method for real estate under development during the development period. The Company will cease the capitalization of these costs when development activities are substantially completed and the property is available for occupancy by tenants, but no later than one year from the completion of major construction activity at which time the property is placed in service and depreciation commences. If the Company suspends substantially all activities related to development of a qualifying asset, the Company will cease capitalization of these costs until activities are resumed. The Company had no real estate under development as of June 30, 2024 and December 31, 2023.

Upon the acquisition of real estate properties, the accumulated cost of the real estate purchased is allocated to the acquired tangible assets (generally consisting of land, buildings and building improvements, and tenant improvements) and identified intangible assets and liabilities (generally consisting of above-market and below-market leases and the origination value of in-place leases) on a relative fair value basis in accordance with GAAP. The Company utilizes methods similar to those used by independent appraisers in estimating the fair value of acquired assets and liabilities. The fair value of the tangible assets of an acquired property considers the value of the property “as-if-vacant.” In allocating the purchase price to identified intangible assets and liabilities of an acquired property, the value of above-market and below-market leases is estimated based on the differences between contractual rentals and estimated market rents over the applicable lease term discounted back to the date of acquisition utilizing a discount rate adjusted for the credit risk associated with the respective tenants. Fixed-rate renewal options have been included in the calculation of the fair value of acquired leases where applicable. The value of in-place leases is based on the Company’s evaluation of the specific characteristics of each tenant’s lease. The aggregate value of in-place leases is measured based upon factors which include the avoided costs associated with lack of revenue over a market-oriented lease-up period, current market conditions, avoided leasing commissions, and other avoided costs common in similar leasing transactions.

Mortgage notes payable assumed in connection with acquisitions are recorded at their fair value using current market interest rates for similar debt at the time of acquisitions.

The capitalized above-market lease values are amortized as a reduction of rental revenue over the remaining term of the respective leases and the capitalized below-market lease values are amortized as an increase to rental revenue over the remaining term of the respective leases. The values of in-place leases are amortized over the remaining term of the respective leases and are included in depreciation and amortization in the accompanying condensed consolidated statements of operations. If a tenant terminates its lease prior to its contractual expiration date, any unamortized balance of the related intangible assets or liabilities is recorded as income or expense in the period. The total net impact to rental revenues due to the amortization of above and below-market leases was a net increase of approximately $0.3 million for both the six months ended June 30, 2024 and June 30, 2023. The total amortization of in-place leases was $0.6 million and $0.7 million for the six months ended June 30, 2024 and June 30, 2023, respectively.

As of June 30, 2024, above-market and in-place leases of $0.8 million and $4.4 million (net of accumulated amortization), respectively, are included in acquired lease intangible assets, net in the accompanying condensed consolidated balance sheets. As of December 31, 2023, above-market and in-place leases of approximately $0.8 million and $5.0 million (net of accumulated amortization), respectively, are included in acquired lease intangible assets, net in the accompanying condensed consolidated balance sheets. As of June 30, 2024, and December 31, 2023, approximately $0.7 million and $1.1 million (net of accumulated amortization), respectively, relating to below-market leases are included in acquired lease intangible liabilities, net in the accompanying condensed consolidated balance sheets.

The following table presents the projected impact for the remainder of 2024, the next five years and thereafter related to the net increase to rental revenue from the amortization of the acquired above-market and below-market lease intangibles and the increase to amortization expense of the in-place lease intangibles for properties owned at June 30, 2024 (in thousands):

	Net increase (decrease) to rental revenues			Increase to amortization expense
Remainder of 2024	$	120		$	517
2025		64			928
2026		(13	)		798
2027		4			564
2028		4			440
2029		(46	)		372
Thereafter		(171	)		823
	$	(38	)	$	4,442

Investment in Unconsolidated Affiliate

Investment in Unconsolidated Affiliate:

The Company has an investment in an entity that is accounted for under the equity method of accounting. The equity method of accounting is used when an investor has influence, but not control, over the investee. The Company records its share of the profits and losses of the investee in the period when these profits and losses are also reflected in the accounts of the investee.

On February 28, 2018, the Company purchased a 50% interest in Two CPS Developers LLC (the “Investee”) for $5.25 million. The Company has the ability to exercise significant influence over the Investee, does not have a controlling interest in the Investee, and the Investee is not a variable interest entity. Therefore, the Company accounts for this investment under the equity method of accounting. The Company recorded income from this investment of $0.1 million for the six months ended June 30, 2024 and less than $0.1 million for the six months ended June 30, 2023.

The total assets and liabilities of the Company’s investment in unconsolidated affiliate as of June 30, 2024 were $16.3 million and $8.8 million, respectively. Total revenues and expenses of the Company’s investment in unconsolidated affiliate for the six months ended June 30, 2024 were approximately $0.9 million and $0.7 million, respectively. The total assets and liabilities of the Company’s investment in unconsolidated affiliate as of December 31, 2023 were $16.5 million and $9.0 million, respectively. Total revenues and expenses of the Company’s investment in unconsolidated affiliate for the six months ended June 30, 2023 were $0.8 million and $0.7 million, respectively.

Depreciation and Amortization

Depreciation and Amortization:

The Company uses the straight-line method for depreciation and amortization. Properties and property improvements are depreciated over their estimated useful lives, which range from 5 to 40 years. Furniture, fixtures, and equipment are depreciated over estimated useful lives that range from 5 to 10 years. Tenant improvements are amortized over the shorter of the remaining non-cancellable term of the related leases or their useful lives.

Real Estate Impairment

Real Estate Impairment:

Management reviews each real estate investment for impairment whenever events or circumstances indicate that the carrying value of a real estate investment may not be recoverable. Significant management judgment is involved in determining if impairment indicators exist, assessing investments for recoverability, and, if required, measuring the fair value of the real estate investments. The review of recoverability is based on an estimate of the undiscounted future cash flows that are expected to result from the real estate investment’s use and eventual disposition. Such cash flow analyses consider assumptions such as expected future market rents, future revenue, market capitalization rates and holding periods, as well as the effects of leasing demand, competition and other factors. If an impairment event exists due to the projected inability to recover the carrying value of a real estate investment, an impairment loss is recorded to the extent that the carrying value exceeds estimated fair value. Management is required to make subjective assessments as to whether there are impairments in the value of the Company’s real estate holdings. These assessments could have a direct impact on net income, because an impairment loss is recognized in the period that the assessment is made. Management has determined that there was no impairment relating to its long-lived assets at June 30, 2024 or December 31, 2023.

Deferred Charges

Deferred Charges:

Deferred charges consist principally of leasing commissions, which are amortized over the life of the related tenant leases, and financing costs, relating to the Company’s secured revolving credit facility, which are amortized over the terms of the respective debt agreements. These deferred charges are included in other assets on the condensed consolidated balance sheets. If leases or loans are terminated, the unamortized charges are expensed.

Debt Issuance Costs

Debt Issuance Costs:

Debt issuance costs relate to the Company’s mortgage notes payable, which are amortized over the term of the respective debt agreements. These debt issuance costs are included in mortgage notes payable, net on the condensed consolidated balance sheets. If mortgage notes payable are extinguished, the unamortized charges are expensed.

Reportable Segments

Reportable Segments:

As of June 30, 2024, the Company operates in one reportable segment, commercial real estate.

Revenue Recognition

Revenue Recognition:

Rental income includes the base rent that each tenant is required to pay in accordance with the terms of their respective leases reported on a straight-line basis over the term of the lease. In order for management to determine, in its judgment, that the unbilled rent receivable applicable to each specific property is collectible, management reviews billed and unbilled rent receivables and takes into consideration the tenant’s payment history and financial condition. If the Company determines that the collectability of a tenant’s lease payments is not probable, then the write-off of the entire tenant receivable, including straight-line rent receivable, is presented as a reduction of revenue rather than an operating expense on the condensed consolidated statements of operations. Rental income related to tenants where the collectability of lease payments is not deemed probable will be recorded on a cash basis. Some of the leases provide for additional contingent rental revenue in the form of percentage rents and increases based upon the consumer price index, subject to certain maximums and minimums. For the six months ended June 30, 2024, the Company determined that collectability of one former tenant's outstanding lease payments was not probable and, therefore, the Company recorded a write-off of the entire tenant receivable in the amount of $0.1 million and placed the tenant on the cash basis as of March 31, 2024. In addition, the Company received $0.6 million in February 2024 in full settlement of amounts due from a previous tenant that was placed on the cash basis during 2023.

Substantially all of the Company’s properties are subject to long-term net leases under which the tenant is typically responsible to pay for its pro rata share of real estate taxes, insurance, and ordinary maintenance and repairs for the property.

Property operating expense recoveries from tenants of common area maintenance, real estate taxes, and other recoverable costs are included in revenues in the period that the related expenses are incurred.

Tenant receivables at June 30, 2024 and December 31, 2023 were $1.1 million and $0.5 million, respectively, and are included in other assets in the accompanying condensed consolidated balance sheets.

Future minimum contractual lease payments to be received by the Company (without taking into account straight-line rent, amortization of intangibles and tenant reimbursements) as of June 30, 2024, under operating leases for the remainder of 2024, the next five years, and thereafter are as follows (in thousands):

Remainder of 2024	$	31,384
2025		62,829
2026		62,010
2027		45,222
2028		37,743
2029		29,130
Thereafter		69,706
Total	$	338,024

Lease Accounting

Lease Accounting:

As lessor, the Company elected to utilize the practical expedient provided by Accounting Standards Update (“ASU”) 2018-11 related to the separation of lease and non-lease components and as a result, revenues related to leases are reported on one line within the condensed consolidated statements of operations.

The Company elected not to evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. Instead, these costs will be accounted for as if they are lessee costs. Consequently, the Company excludes from the consideration in the contract and from variable payments not included in the consideration in the contract all collections from lessees of taxes within the scope of the election and provides certain disclosures. The accounting policy election includes sales, use, value added, and some excise taxes but excludes real estate taxes.

The following table presents additional disclosures regarding the Company’s rental income for the six months ended June 30, 2024 and 2023 (in thousands):

	2024		2023
Fixed lease revenue	$	32,434	$	30,822
Variable lease revenue		6,884		6,316
Total lease revenue	$	39,318	$	37,138

As lessee, the Company elected to utilize the practical expedient in the implementation of ASU 2016-02 related to not separating non-lease components from the associated lease component. As lessee, the Company is a party to an office lease, effective October 1, 2021, having a term of ten years, with future lease obligations aggregating $3.0 million and $3.2 million as of June 30, 2024 and December 31, 2023, respectively (see Note 9). The Company has recorded a right-of-use asset and corresponding right-of-use liability at the present value of the remaining future minimum lease payments, based upon an incremental borrowing rate of 3.86%, of approximately $3.1 million as of October 1, 2021.

The following table presents the future lease obligations of the Company’s office lease for the remainder of 2024, the next five years, and thereafter (in thousands):

Remainder of 2024	$	177
2025		363
2026		374
2027		385
2028		397
2029		409
Thereafter		890
Total future minimum lease payments		2,995
Less imputed interest		381
Total right-of-use liability - operating lease	$	2,614

The following table presents additional disclosures regarding the Company’s office leases for the six months ended June 30, 2024 and 2023 (in thousands):

	2024		2023
Operating lease costs	$	176	$	169
Variable lease costs		6		15
Total lease costs	$	182	$	184

Earnings Per Share Information

Earnings Per Share Information:

The Company presents both basic and diluted earnings per share. Basic earnings per share excludes dilution and is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower per share amount. Restricted stock and stock options were included in the computation of diluted earnings per share.

Cash and Cash Equivalents

Cash and Cash Equivalents:

The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents.

Restricted Cash

Restricted Cash:

Restricted cash reserves are required under certain loan agreements and include reserves used to pay real estate taxes, leasing costs and capital improvements.

Fair Value Measurement

Fair Value Measurement:

The Company determines fair value in accordance with Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurement.” This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity.

Assets and liabilities disclosed at fair values are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, which are defined by ASC 820-10-35, are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. Determining which category an asset or liability falls within the hierarchy requires significant judgment, and the Company evaluates its hierarchy disclosures each quarter. The three-tier fair value hierarchy is as follows:

Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Valuations based on unobservable inputs reflecting management’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

Income Taxes

Income Taxes:

The Company is organized and conducts its operations to qualify as a REIT for federal income tax purposes. Accordingly, the Company is generally not subject to federal income taxation on the portion of its distributable income that qualifies as REIT taxable income, to the extent that it distributes at least 90% of its REIT taxable income to its stockholders and complies with certain other requirements as defined in the Code.

The Company also participates in certain activities conducted by entities which elected to be treated as taxable subsidiaries under the Code. As such, the Company is subject to federal, state, and local taxes on the income from these activities.

The Company accounts for income taxes under the asset and liability method as required by the provisions of ASC 740-10-30. Under this method, deferred tax assets and liabilities are established based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.

ASC 740-10-65 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10-65, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740-10-65 also provides guidance on de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods and requires increased disclosures. As of June 30, 2024, and December 31, 2023, the Company had determined that no liabilities are required in connection with uncertain tax positions. As of June 30, 2024, the Company’s tax returns for the prior three years are subject to review by the Internal Revenue Service. Any interest and penalties would be expensed as incurred.

Concentrations of Credit Risk

Concentrations of Credit Risk:

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, which from time-to-time exceed the federal depository insurance coverage. Beginning January 1, 2013, all interest and noninterest bearing transaction accounts deposited at an insured depository institution are insured by the Federal Deposit Insurance Corporation up to the standard maximum deposit amount of $250,000. Management believes that the Company is not exposed to any significant credit risk due to the credit worthiness of these financial institutions.

For the six months ended June 30, 2024, rental income of $4.8 million derived from five leases with the City of New York represented 12% of the Company’s rental income. For the six months ended June 30, 2023, rental income of $4.8 million derived from five leases with the City of New York represented 13% of the Company’s rental income.

For the six months ended June 30, 2024, rental income of $5.8 million derived from six leases with Federal Express represented 15% of the Company’s rental income. For the six months ended June 30, 2023, rental income of $5.3 million derived from five leases with Federal Express represented 14% of the Company’s rental income.

For the six months ended June 30, 2024, rental income of $3.9 million derived from one lease with Avis Rent-A-Car Systems, Inc. ("Avis") represented 10% of the Company’s rental income. For the six months ended June 30, 2023, rental income of $3.9 million derived from one lease with Avis represented 10% of the Company’s rental income.

Stock-Based Compensation

Stock-Based Compensation:

The Company has a stock-based compensation plan which is described below in Note 6. The Company accounts for stock-based compensation in accordance with ASC Topic 718, “Compensation – Stock Compensation,” which establishes accounting for stock-based awards exchanged for employee services. Under the provisions of ASC Topic 718, share-based compensation cost is measured at the grant date or service-inception date (if it precedes the grant date), based on the fair value of the award. Share-based compensation is expensed at the grant date (for awards or portion of awards that vested immediately), or ratably over the respective vesting periods, determined from the start of the grant date or service-inception date through the date of vesting.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements:

In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures.” The guidance requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on the income taxes paid. The guidance is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. ASU 2023-09 applies to all entities subject to income taxes. For public business entities, the new requirements will be effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the requirements will be effective for annual periods beginning after December 15, 2025. The guidance will be applied on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures,” which amends disclosure requirements about a public company’s reportable segments and addresses requests from investors for additionally detailed information about a reportable segment’s expenses. A public entity should apply the amendments provided by ASU 2023-07 retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Schedule of Projected Impact of Above Market Below Market and In-Place Lease Intangibles

The following table presents the projected impact for the remainder of 2024, the next five years and thereafter related to the net increase to rental revenue from the amortization of the acquired above-market and below-market lease intangibles and the increase to amortization expense of the in-place lease intangibles for properties owned at June 30, 2024 (in thousands):

	Net increase (decrease) to rental revenues			Increase to amortization expense
Remainder of 2024	$	120		$	517
2025		64			928
2026		(13	)		798
2027		4			564
2028		4			440
2029		(46	)		372
Thereafter		(171	)		823
	$	(38	)	$	4,442

Summary of Future Minimum Contractual Lease Payments to be Received

Future minimum contractual lease payments to be received by the Company (without taking into account straight-line rent, amortization of intangibles and tenant reimbursements) as of June 30, 2024, under operating leases for the remainder of 2024, the next five years, and thereafter are as follows (in thousands):

Remainder of 2024	$	31,384
2025		62,829
2026		62,010
2027		45,222
2028		37,743
2029		29,130
Thereafter		69,706
Total	$	338,024

Schedule Of Additional Disclosures Regarding Rental Income

The following table presents additional disclosures regarding the Company’s rental income for the six months ended June 30, 2024 and 2023 (in thousands):

	2024		2023
Fixed lease revenue	$	32,434	$	30,822
Variable lease revenue		6,884		6,316
Total lease revenue	$	39,318	$	37,138

Schedule of Future Lease Obligations of Office Lease

The following table presents the future lease obligations of the Company’s office lease for the remainder of 2024, the next five years, and thereafter (in thousands):

Remainder of 2024	$	177
2025		363
2026		374
2027		385
2028		397
2029		409
Thereafter		890
Total future minimum lease payments		2,995
Less imputed interest		381
Total right-of-use liability - operating lease	$	2,614

Schedule of Additional Disclosures Regarding Office Leases

The following table presents additional disclosures regarding the Company’s office leases for the six months ended June 30, 2024 and 2023 (in thousands):

	2024		2023
Operating lease costs	$	176	$	169
Variable lease costs		6		15
Total lease costs	$	182	$	184

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Real Estate (Tables)

6 Months Ended

Jun. 30, 2024

Real Estate [Abstract]

Schedule of Allocation of Purchase Price Including Closing Cost of Assets

The following table summarizes the Company’s allocation of the purchase price, including closing costs, of assets acquired during the six months ended June 30, 2023:

	Purchase Price
	Allocation
Land	$	17,383
Land improvements		8,029
Acquired lease intangible assets (1)		2,655
Other assets		940
Total consideration	$	29,007

(1)Acquired lease intangible assets include both in-place and above-market lease allocations.

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Mortgage Notes Payable (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Summary of Company's Mortgage Notes Payable

The following table sets forth a summary of the Company’s mortgage notes payable (in thousands):

				Principal			Principal
				Outstanding as of			Outstanding as of
Loan	Interest Rate			June 30, 2024			December 31, 2023			Maturity
People’s United Bank		4.18	%		14,518			14,710		10/15/2024
Allstate Life Insurance Company		4.00	%		34,381			34,808		4/1/2025
United States Life Insurance Company		3.82	%		39,000			39,000		1/1/2028
United States Life Insurance Company		4.25	%		32,348			32,632		4/1/2028
Transamerica Life Insurance Company		3.45	%		7,924			8,037		4/1/2030
American General Life Insurance Company		6.12	%		124,756			—		4/1/2031
American International Group 2022		4.63	%		225,000			225,000		9/1/2032
Transamerica Life Insurance Company 2023		5.40	%		25,000			25,000		8/1/2033
	Subtotal				502,927			379,187
	Unamortized loan costs				(12,558	)		(9,764	)
	Total			$	490,369		$	369,423

Scheduled of Principal Repayments

Scheduled principal repayments for the remainder of 2024, the next five years and thereafter are as follows (in thousands):

Remainder of 2024	$	16,105
2025		36,341
2026		2,641
2027		3,019
2028		71,697
2029		2,656
Thereafter		370,468
Total	$	502,927

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of Dividends Declared on Common Stock

The following table presents dividends declared by the Company on its common stock during the six months ended June 30, 2024:

Declaration	Record	Payment	Dividend
Date	Date	Date	Per Share
March 12, 2024	March 31, 2024	April 12, 2024	$	0.66	(1)
March 12, 2024	March 31, 2024	April 15, 2024	$	0.12
June 13, 2024	June 30, 2024	July 12, 2024	$	0.12

(1)This represents a 2023 supplemental dividend.

Schedule of Shares Issued Under the 2007 Plan and 2017 Plan

The following table presents shares issued by the Company under the 2007 Plan and the 2017 Plan:

Shares Issued Under the 2007 Plan
Grant	Total		Value		Approximate
Date	Shares Issued		Per Share		Value of Shares		Vesting Period
April 30, 2012		55,149	$	6.80	$	375,000	3 Years	(2)
June 7, 2012		5,884	$	6.80	$	40,000	Immediately	(1)
March 21, 2013		46,876	$	6.40	$	300,000	3 Years	(2)
March 21, 2013		3,126	$	6.40	$	20,000	Immediately	(1)
June 6, 2013		9,378	$	6.40	$	60,000	Immediately	(1)
June 4, 2014		44,704	$	6.80	$	304,000	5 years	(2)
June 19, 2014		8,820	$	6.80	$	60,000	Immediately	(1)
March 26, 2015		43,010	$	9.30	$	400,000	5 years	(2)
June 19, 2015		16,436	$	10.65	$	175,000	Immediately	(1)
March 24, 2016		47,043	$	10.40	$	489,000	5 years	(2)
June 9, 2016		14,424	$	10.40	$	150,000	Immediately	(1)
May 22, 2017		34,482	$	11.60	$	400,000	9 years	(2)
May 31, 2017		7,929	$	11.60	$	92,000	Immediately	(3)
June 8, 2017		15,516	$	11.60	$	180,000	Immediately	(1)
Shares Issued Under the 2017 Plan
Grant	Total		Value		Approximate
Date	Shares Issued		Per Share		Value of Shares		Vesting Period
June 7, 2018		42,918	$	11.65	$	500,000	9 Years	(2)
June 7, 2018		15,020	$	11.65	$	175,000	Immediately	(1)
June 5, 2019		64,654	$	11.60	$	750,000	9 Years	(2)
June 5, 2019		15,085	$	11.60	$	175,000	Immediately	(1)
June 4, 2020		72,834	$	12.70	$	925,000	9 Years	(2)
June 4, 2020		16,530	$	12.70	$	210,000	Immediately	(1)
June 10, 2021		123,947	$	11.90	$	1,475,000	9 Years	(2)
June 10, 2021		22,686	$	11.90	$	270,000	Immediately	(1)
June 9, 2022		85,398	$	18.15	$	1,550,000	9 Years	(2)
June 9, 2022		14,874	$	18.15	$	270,000	Immediately	(1)
June 8, 2023		78,548	$	16.55	$	1,300,000	9 Years	(2)
June 8, 2023		16,615	$	16.55	$	275,000	Immediately	(1)
June 13, 2024		111,776	$	22.50	$	2,515,000	9 Years	(2)
June 13, 2024		14,664	$	22.50	$	330,000	Immediately	(1)

(1)Shares issued to non-management members of the Board of Directors.

(2)Shares issued to certain executives of the Company.

(3)Shares issued to current and former executives of the Company in connection with the exercise of previously issued options.

Summary of Restricted Stock Activity

The following is a summary of restricted stock activity:

				Weighted Average
				Grant Date Fair
	Shares			Value
Non-vested shares outstanding as of December 31, 2023		161,945		$	14.91
New shares issued through June 30, 2024		126,440		$	22.50
Vested		(66,857	)	$	20.09
Non-vested shares outstanding as of June 30, 2024		221,528		$	17.96

Summary of Vesting Schedule of Non-vested Shares of Restricted Stock Outstanding

The following is a vesting schedule of the non-vested shares of restricted stock outstanding as of June 30, 2024:

	Number of Shares
Remainder of 2024		35,561
2025		59,429
2026		42,995
2027		31,100
2028		21,875
2029		14,461
Thereafter		16,107
Total Non-vested Shares		221,528

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Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings per Share Information

The following table sets forth the computation of basic and diluted earnings per share information for the three and six months ended June 30, 2024 and 2023 (in thousands, except share and per share data):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2024			2023		2024		2023
Numerator:
Net (loss) income attributable to common stockholders	$	(1,733	)	$	1,163	$	1,247	$	3,763
Denominator:
Weighted average common shares outstanding – basic		13,328,389			13,327,529		13,327,677		13,330,626
Weighted average common shares outstanding – diluted		13,328,389			13,363,179		13,512,566		13,366,275
Basic and Diluted Per Share Information:
Net income per share – basic	$	(0.13	)	$	0.09	$	0.09	$	0.28
Net income per share – diluted	$	(0.13	)	$	0.09	$	0.09	$	0.28

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Fair Value (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Assets and Liabilities

The following table summarizes the carrying values and the estimated fair values of the financial instruments (in thousands):

	June 30, 2024				December 31, 2023
	Carrying		Estimated		Carrying		Estimated
	Value		Value		Value		Value
Financial assets:
Cash and cash equivalents	$	49,581	$	49,581	$	27,913	$	27,913
Restricted cash		973		973		1,400		1,400
Rent and other receivables		1,103		1,103		569		569
Financial liabilities:
Dividends payable		1,602		1,602		1,333		1,333
Accounts payable and accrued expenses		4,327		4,327		5,234		5,234
Secured revolving credit facility		—		—		40,000		40,000
Term loan payable		—		—		50,000		50,000
Mortgage notes payable		502,927		464,358		379,187		345,009

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Organization and Description of Business - Additional Information (Detail) - Operating Partnership [Member] - Wu/Lighthouse Portfolio, LLC [Member] shares in Millions, ft² in Millions		6 Months Ended	12 Months Ended
	Jan. 17, 2013 Property	Jun. 30, 2024 a ft² Property shares	Dec. 31, 2013
Organization And Description Of Business [Line Items]
Number of commercial properties acquired	25	19
Ownership interest in partnership units (as a percent)	33.29%	83.20%	33.78%
Number of existing properties		7
Number of real estate properties sold		2
Number of properties owned		49
Leasable area owned by the company | ft²		6.3
Area of land in New York, New Jersey, Connecticut, Delaware and North Carolina | a		399
Number of shares of common stock that can be issued on conversion of interest in limited partnership | shares		1.5
Percentage of ownership owned in joint venture		50.00%
Series B Preferred Stock, Non-Voting [Member]
Organization And Description Of Business [Line Items]
Number of shares of preferred stock that can be issued on conversion of interest in limited partnership | shares		1.2
Subsequent redemptions of certain shares [Member]
Organization And Description Of Business [Line Items]
Ownership interest in partnership units (as a percent)		16.80%

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Summary of Significant Accounting Policies - Additional Information (Detail)		1 Months Ended	3 Months Ended			6 Months Ended		12 Months Ended
	Feb. 28, 2018 USD ($)	Feb. 29, 2024 USD ($)	Jun. 30, 2024 USD ($) Lease	Mar. 31, 2024 USD ($)	Jun. 30, 2023 USD ($) Lease	Jun. 30, 2024 USD ($) Lease Segment	Jun. 30, 2023 USD ($) Lease	Dec. 31, 2023 USD ($)	Oct. 01, 2021 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Net impact to rental revenues due to the amortization of above market and below market leases						$ 300,000	$ 300,000
Amortization of in-place leases						600,000	700,000
Amortization to below market leases			$ 717,000			717,000		$ 1,079,000
Income (loss) from investment			55,000		$ 34,000	110,000	73,000
Assets			522,553,000			522,553,000		507,237,000
Assets of investments in unconsolidated affiliates			16,300,000			16,300,000		16,500,000
Liabilities			505,132,000			505,132,000		475,623,000
Liabilities of investments in unconsolidated affiliates			8,800,000			8,800,000		9,000,000
Revenues			19,346,000		18,579,000	39,318,000	37,138,000
Expenses			15,550,000		11,213,000	25,712,000	20,675,000
Impairment related to long-lived assets						$ 0		0
Number of reportable segments | Segment						1
Write off of tenant receivable				$ 100,000
Settlement agreement with tenant and received		$ 600,000
Aggregate future lease obligations			2,995,000			$ 2,995,000
Incremental borrowing rate									3.86%
Right-of-use asset - operating lease, net			2,422,000			2,422,000		2,555,000	$ 3,100,000
Right-of-use liability - operating lease			2,614,000			$ 2,614,000		2,739,000	$ 3,100,000
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]									us-gaap:OtherLiabilitiesMember
Income Tax Holiday, Description						The Company is organized and conducts its operations to qualify as a REIT for federal income tax purposes. Accordingly, the Company is generally not subject to federal income taxation on the portion of its distributable income that qualifies as REIT taxable income, to the extent that it distributes at least 90% of its REIT taxable income to its stockholders and complies with certain other requirements as defined in the Code.
Uncertain tax positions			0			$ 0		0
Standard maximum deposit insurance amount			250,000			250,000
Annual rental lease rent			19,346,000		$ 18,579,000	39,318,000	$ 37,138,000
Accounting Standards Update 2016-02 [Member]
Summary Of Significant Accounting Policies [Line Items]
Lease term of contract									10 years
Aggregate future lease obligations			$ 3,000,000			$ 3,000,000		$ 3,200,000
Avis Rent A Car Systems, Inc. [Member] | Customer Concentration Risk [Member] | Sales Revenue Net [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of operating leases | Lease			1		1	1	1
Annual rental lease rent						$ 3,900,000	$ 3,900,000
Percentage of rental income						10.00%	10.00%
New York [Member] | Customer Concentration Risk [Member] | Sales Revenue Net [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of operating leases | Lease			5		5	5	5
Annual rental lease rent						$ 4,800,000	$ 4,800,000
Percentage of rental income						12.00%	13.00%
Federal Express [Member] | Customer Concentration Risk [Member] | Sales Revenue Net [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of operating leases | Lease			6		5	6	5
Annual rental lease rent						$ 5,800,000	$ 5,300,000
Percentage of rental income						15.00%	14.00%
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Proportion of taxable income distributed to stockholders						90.00%		90.00%
Minimum [Member] | Properties and Property Improvements [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life			5 years			5 years
Minimum [Member] | Furniture, Fixtures and Equipment [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life			5 years			5 years
Maximum [Member] | Properties and Property Improvements [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life			40 years			40 years
Maximum [Member] | Furniture, Fixtures and Equipment [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful life			10 years			10 years
Two CPS Developers LLC [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of interest purchased	50.00%
Business combination, consideration transferred	$ 5,250,000
Income (loss) from investment						$ 100,000
Two CPS Developers LLC [Member] | Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Income (loss) from investment							$ 100,000
Above Market Lease [Member]
Summary Of Significant Accounting Policies [Line Items]
Acquired lease intangible assets, net			$ 800,000			800,000		$ 800,000
In-place Lease [Member]
Summary Of Significant Accounting Policies [Line Items]
Acquired lease intangible assets, net			4,442,000			4,442,000		5,000,000
Buildings and Improvements [Member]
Summary Of Significant Accounting Policies [Line Items]
Real estate under development			0			0		0
Investments in Unconsolidated Affiliates [Member]
Summary Of Significant Accounting Policies [Line Items]
Revenues						900,000	800,000
Expenses						700,000	$ 700,000
Other Assets [Member]
Summary Of Significant Accounting Policies [Line Items]
Tenant receivables			$ 1,100,000			$ 1,100,000		$ 500,000

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Summary of Significant Accounting Policies - Schedule of Projected Impact of Above Market Below Market and In-Place Lease Intangibles (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Net increase to rental revenues:
Remainder of 2024	$ 120
2025	64
2026	(13)
2027	4
2028	4
2029	(46)
Thereafter	(171)
Net increase to rental revenues	(38)
In-place Lease [Member]
Increase to amortization expense:
Remainder of 2024	517
2025	928
2026	798
2027	564
2028	440
2029	372
Thereafter	823
Increase to amortization expense	$ 4,442	$ 5,000

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Summary of Significant Accounting Policies - Summary of Future Minimum Contractual Lease Payments to be Received (Detail) $ in Thousands	Jun. 30, 2024 USD ($)
Accounting Policies [Abstract]
Remainder of 2024	$ 31,384
2025	62,829
2026	62,010
2027	45,222
2028	37,743
2029	29,130
Thereafter	69,706
Total	$ 338,024

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Summary Of Significant Accounting Policies - Schedule Of Additional Disclosures Regarding Rental Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Fixed lease revenue			$ 32,434	$ 30,822
Variable lease revenue			6,884	6,316
Total lease revenue	$ 19,346	$ 18,579	$ 39,318	$ 37,138

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Summary of Significant Accounting Policies - Schedule of Future Lease Obligations of Office Lease (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Oct. 01, 2021
Accounting Policies [Abstract]
Remainder of 2024	$ 177
2025	363
2026	374
2027	385
2028	397
2029	409
Thereafter	890
Total future minimum lease payments	2,995
Less imputed interest	381
Right-of-use liability - operating lease	$ 2,614	$ 2,739	$ 3,100

XML

Summary of Significant Accounting Policies - Schedule of Additional Disclosures Regarding Office Leases (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Operating lease costs	$ 176	$ 169
Variable lease costs	6	15
Total lease costs	$ 182	$ 184

XML

Real Estate - Schedule of Allocation of Purchase Price Including Closing Cost of Assets (Detail) $ in Thousands	Jun. 30, 2023 USD ($)
Real Estate [Abstract]
Land	$ 17,383
Land improvements	8,029
Acquired lease intangible assets	2,655
Other assets	940
Total consideration	$ 29,007

XML

Real Estate - Additional Information (Detail) $ in Thousands	Jan. 18, 2023 USD ($) ft²	Jun. 30, 2023 USD ($)
Real Estate [Line Items]
Total Consideration		$ 29,007
Land and Land Improvements [Member] | North Carolina [Member]
Real Estate [Line Items]
Leasable area owned by the company | ft²	435,600
Total Consideration	$ 28,700
Lease term of contract	10 years
Lease expiration date	Jul. 31, 2032

XML

Mortgage Notes Payable - Summary of Company's Mortgage Notes Payable (Detail) - USD ($) $ in Thousands		6 Months Ended
	Dec. 20, 2017	Jun. 30, 2024	Dec. 31, 2023	Jul. 31, 2023	Mar. 24, 2020	Mar. 21, 2018
Debt Instrument [Line Items]
Mortgage notes payable		$ 502,927	$ 379,187
Unamortized loan costs		(12,558)	(9,764)
Mortgage notes payable, net		490,369	369,423
4.18% People's United Bank, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable		$ 14,518	14,710
Interest Rate		4.18%
Maturity		Oct. 15, 2024
Allstate Life Insurance Company, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable		$ 34,381	34,808
Interest Rate		4.00%
Maturity		Apr. 01, 2025
3.82 % United States Life Insurance Company, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable	$ 39,000	$ 39,000	39,000
Interest Rate	3.82%	3.82%
Maturity	Jan. 01, 2028	Jan. 01, 2028
4.25 % United States Life Insurance Company, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable		$ 32,348	32,632			$ 33,000
Interest Rate		4.25%
Maturity		Apr. 01, 2028
3.45% Transamerica Life Insurance Company, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable		$ 7,924	8,037		$ 8,400
Interest Rate		3.45%
Maturity		Apr. 01, 2030
6.12% American General Life Insurance Company [Member]
Debt Instrument [Line Items]
Mortgage notes payable		$ 124,756	0
Interest Rate		6.12%
Maturity		Apr. 01, 2031
American International Group 2022, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable		$ 225,000	225,000
Interest Rate		4.63%
Maturity		Sep. 01, 2032
Transamerica Life Insurance Company 2023, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable		$ 25,000	$ 25,000	$ 25,000
Interest Rate		5.40%
Maturity		Aug. 01, 2033

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Mortgage Notes Payable - Additional Information (Detail)								6 Months Ended	12 Months Ended
	Mar. 15, 2024 USD ($) Item	Jul. 31, 2023 USD ($) Item	Aug. 05, 2022 USD ($) Property	Mar. 24, 2020 USD ($) Item	Mar. 21, 2018 USD ($) Item	Dec. 20, 2017 USD ($) Property Item	Mar. 13, 2015 USD ($)	Jun. 30, 2024 USD ($) Property	Dec. 31, 2014 USD ($) ft²	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Mortgage notes payable								$ 502,927,000		$ 379,187,000
Number of wholly-owned subsidiaries of the UPREIT | Item	3	3		2	4	4
Allstate Life Insurance Company, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable								$ 34,381,000		34,808,000
Maturity								Apr. 01, 2025
Interest Rate								4.00%
3.82 % United States Life Insurance Company, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable						$ 39,000,000.0		$ 39,000,000		39,000,000
Permanent financing period						10 years
Debt instrument, payment terms								During the period from February 1, 2018 to December 1, 2027, payments of interest only on the principal balance of the U.S. Life Note (as defined below) will be payable in arrears, with the entire principal balance due and payable on January 1, 2028, the loan maturity date.
Number of collateralized properties | Property						4
Maturity						Jan. 01, 2028		Jan. 01, 2028
Interest Rate						3.82%		3.82%
Application fee to lender						$ 50,000
Event of default, description								In the event of default, the initial rate of interest on the U.S. Life Note will increase to the greatest of (i) 18% per annum, (ii) a per annum rate equal to 4% over the prime established rate, or (iii) a per annum rate equal to 5% over the original interest rate, all subject to the applicable state or federal laws.
3.82 % United States Life Insurance Company, Loan [Member] | Minimum [Member]
Debt Instrument [Line Items]
Loan Prepayment Premium Percentage,upon providing advance notice of prepayment						1.00%
3.82 % United States Life Insurance Company, Loan [Member] | Minimum [Member] | Event of Default [Member]
Debt Instrument [Line Items]
Increase in debt instrument interest rate upon default						18.00%
3.82 % United States Life Insurance Company, Loan [Member] | Prime Rate [Member] | Event of Default [Member]
Debt Instrument [Line Items]
Debt instrument Interest rate upon default						4.00%
3.82 % United States Life Insurance Company, Loan [Member] | Original Interest Rate [Member] | Event of Default [Member]
Debt Instrument [Line Items]
Debt instrument interest rate over original interest rate upon default						5.00%
4.25 % United States Life Insurance Company, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable					$ 33,000,000.0			$ 32,348,000		32,632,000
Permanent financing interest rate					4.25%
Permanent financing period					10 years
Debt instrument, payment terms								the principal balance for the first five years of the term and principal and interest payments (amortized over a 30-year period) during the second five years of the term. The entire principal balance is due and payable on April 1, 2028, the loan maturity date.
Maturity								Apr. 01, 2028
Interest Rate								4.25%
3.45% Transamerica Life Insurance Company, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable				$ 8,400,000				$ 7,924,000		8,037,000
Permanent financing interest rate				3.45%
Permanent financing period				10 years
Debt instrument, payment terms								principal balance of the note until April 1, 2022 and (ii) principal and interest payments (amortized over a 25-year period commencing at the end of the interest-only period) from May 1, 2022 through March 1, 2030. The entire principal balance of each note is due and payable on April 1, 2030, the loan maturity date
Maturity								Apr. 01, 2030
Interest Rate								3.45%
3.45% Transamerica Life Insurance Company, Loan [Member] | Event of Default [Member]
Debt Instrument [Line Items]
Event of default, description								If a default exists, the outstanding principal balance of the notes shall, at the option of the lender, bear interest at a rate equal to the lesser of (i) 10% per annum over the note rate and (ii) the highest rate of interest permitted to be paid or collected by applicable law with respect to the loan.
3.45% Transamerica Life Insurance Company, Loan [Member] | Minimum [Member]
Debt Instrument [Line Items]
Loan Prepayment Premium Percentage,upon providing advance notice of prepayment				1.00%
3.45% Transamerica Life Insurance Company, Loan [Member] | Note Rate [Member] | Event of Default [Member]
Debt Instrument [Line Items]
Debt instrument Interest rate upon default				10.00%
Transamerica Life Insurance Company 2023, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable		$ 25,000,000						$ 25,000,000		25,000,000
Permanent financing interest rate		5.40%
Permanent financing period		10 years
Debt instrument, payment terms								principal balance of the note until August 1, 2026 and (ii) principal and interest payments (amortized over a 30-year period commencing at the end of the interest-only period) from September 1, 2026 through July 1, 2033. The entire principal balance of each note is due and payable on August 1, 2033, the loan maturity date
Maturity								Aug. 01, 2033
Interest Rate								5.40%
Transamerica Life Insurance Company 2023, Loan [Member] | Event of Default [Member]
Debt Instrument [Line Items]
Event of default, description								If a default exists, the outstanding principal balance of the notes shall, at the option of the lender, bear interest at a rate equal to the lesser of (i) 10% per annum over the note rate and (ii) the highest rate of interest permitted to be paid or collected by applicable law with respect to the loan
Transamerica Life Insurance Company 2023, Loan [Member] | Minimum [Member]
Debt Instrument [Line Items]
Loan Prepayment Premium Percentage,upon providing advance notice of prepayment		1.00%
Transamerica Life Insurance Company 2023, Loan [Member] | Note Rate [Member] | Event of Default [Member]
Debt Instrument [Line Items]
Debt instrument Interest rate upon default		10.00%
American International Group 2022, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable								$ 225,000,000		$ 225,000,000
Maturity								Sep. 01, 2032
Interest Rate								4.63%
American International Group 2022, Loan [Member] | A I G Loans
Debt Instrument [Line Items]
Maturity			Sep. 01, 2032
Interest Rate			4.63%
Loan related costs			$ 7,900,000
Prepayment fee			5,100,000
Debt instrument, principal amount			$ 225,000,000.0
Debt instrument, interest rate terms								monthly interest-only payments
Number of properties secured | Property			25
American General Life Insurance Company [Member]
Debt Instrument [Line Items]
Mortgage notes payable	$ 125,000,000
Permanent financing period	7 years
Payment term based on amortization schedule	30 years
Debt instrument, payment terms								The loan is a seven-year term loan that requires payments based on a 30-year amortization schedule at the rate of 6.12% per annum with the entire principal balance plus any accrued and unpaid interest due and payable on April 1, 2031.
Interest Rate	6.12%
Debt instrument, principal amount	$ 90,000,000
American General Life Insurance Company [Member] | Minimum [Member]
Debt Instrument [Line Items]
Loan Prepayment Premium Percentage,upon providing advance notice of prepayment	1.00%
Revolving Line of Credit Facility [Member] | American General Life Insurance Company [Member]
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 40,000,000
Term Loan [Member] | American General Life Insurance Company [Member]
Debt Instrument [Line Items]
Debt instrument, principal amount	$ 50,000,000
Piscataway, NJ [Member]
Debt Instrument [Line Items]
Number of properties acquired | Property								6
Piscataway, NJ [Member] | Allstate Life Insurance Company, Loan [Member]
Debt Instrument [Line Items]
Mortgage notes payable								$ 39,100,000
Permanent financing period							10 years
Payment term based on amortization schedule							30 years
Debt Instrument, balloon payment due upon maturity							$ 33,700,000
Maturity							Apr. 01, 2025
Interest Rate							4.00%
New York [Member] | American International Group 2022, Loan [Member] | A I G Loans
Debt Instrument [Line Items]
Debt instrument, principal amount			$ 144,300,000
Connecticut And New Jersey | American International Group 2022, Loan [Member] | A I G Loans
Debt Instrument [Line Items]
Debt instrument, principal amount			$ 80,700,000
People's United Bank Loan Agreement [Member]
Debt Instrument [Line Items]
Leasable area owned by the company | ft²									84,000
Mortgage notes payable									$ 15,500,000
Permanent financing interest rate									4.18%
Permanent financing period									10 years
Payment term based on amortization schedule									25 years
Debt instrument, payment terms								Payments for the first seven years were interest only. Payments over the remaining three years of the term are based on a 25-year amortization schedule, with a balloon payment of $14.4 million due at maturity
Debt Instrument, balloon payment due upon maturity									$ 14,400,000

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Mortgage Notes Payable - Schedule of Principal Repayments (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Remainder of 2024	$ 16,105
2025	36,341
2026	2,641
2027	3,019
2028	71,697
2029	2,656
Thereafter	370,468
Total	$ 502,927	$ 379,187

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Secured Revolving Credit Facility & Term Loan Payable - Additional Information (Detail) - USD ($)					3 Months Ended		6 Months Ended
	Mar. 15, 2024	Aug. 05, 2022	Oct. 22, 2021	Dec. 02, 2015	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Mar. 31, 2023
Line Of Credit Facility [Line Items]
Unamortized loan costs					$ 12,558,000		$ 12,558,000		$ 9,764,000
Credit facility, outstanding					0		0		40,000,000
First Amendment [Member]
Line Of Credit Facility [Line Items]
Line of Credit facility, maximum borrowing capacity		$ 10,000,000
Revolving Line of Credit Facility [Member]
Line Of Credit Facility [Line Items]
Payment of outstanding	$ 40,000,000
Revolving Line of Credit Facility [Member] | Other Assets [Member]
Line Of Credit Facility [Line Items]
Unamortized loan costs					200,000		200,000		300,000
Revolving Line of Credit Facility [Member] | First Amendment [Member]
Line Of Credit Facility [Line Items]
Extension of maturity date		Oct. 22, 2024
Term Loan [Member] | First Amendment [Member]
Line Of Credit Facility [Line Items]
Extension of maturity date		Oct. 22, 2025
Operating Partnership [Member] | Amended and Restated Credit Agreement [Member] | LIBOR [Member]
Line Of Credit Facility [Line Items]
Applicable margin range on credit facility			1.00%
Key Bank [Member]
Line Of Credit Facility [Line Items]
Credit facility, outstanding					0		$ 0			$ 40,000,000
Key Bank [Member] | First Amendment [Member]
Line Of Credit Facility [Line Items]
Line of Credit facility, maximum borrowing capacity		$ 40,000,000
Key Bank [Member] | First Amendment [Member] | Other Assets [Member]
Line Of Credit Facility [Line Items]
Loan related costs		$ 500,000
Key Bank [Member] | Revolving Line of Credit Facility [Member] | First Amendment [Member]
Line Of Credit Facility [Line Items]
Extension of maturity date		Aug. 05, 2025
Key Bank [Member] | Term Loan [Member] | First Amendment [Member]
Line Of Credit Facility [Line Items]
Extension of maturity date		Aug. 05, 2026
Key Bank [Member] | Operating Partnership [Member]
Line Of Credit Facility [Line Items]
Line of Credit facility, maximum borrowing capacity				$ 50,000,000
Line of Credit facility term				2 years
Line of Credit facility extended maturity period				1 year
Line of Credit facility description							line of credit facility, with an initial term of two years, with a one-year extension option, subject to certain other customary conditions.
Key Bank [Member] | Operating Partnership [Member] | Interest Expense [Member]
Line Of Credit Facility [Line Items]
Unamortized loan costs					100,000	$ 100,000	$ 300,000	$ 100,000
Key Bank [Member] | Operating Partnership [Member] | Amended and Restated Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Line of Credit facility, maximum borrowing capacity			$ 60,000,000		90,000,000		$ 90,000,000
Line of Credit facility description			The maturity date of the secured revolving credit facility was extended from June 30, 2022 under the Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement provided for a $60 million senior secured credit facility (the “Credit Facility”), consisting of (i) a $10 million revolving line of credit facility, with an initial term of three years and two one-year extension options, subject to certain other customary conditions (the “Revolver”) and (ii) a $50 million term loan facility, with an initial term of four years and a one-year extension option and subject to certain other customary conditions, which was funded in a single advance on October 22, 2021 (the “Term Loan”).				the Amended and Restated Credit Agreement provides for a $90 million Credit Facility, consisting of (i) a $40 million Revolver, with an initial term of three years from the Closing Date and two one-year extension options, subject to certain other customary conditions and (ii) a $50 million Term Loan, with an initial term of four years from the Closing Date and a one-year extension option and subject to certain other customary conditions, which was funded in a single advance on October 22, 2021.
Credit facility capacity available for issuance of letters of credit and swing line loans			$ 10,000,000
Loan costs paid with Credit facility			500,000
Key Bank [Member] | Operating Partnership [Member] | Amended and Restated Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Maximum borrowing capacity under incremental credit facility			$ 125,000,000
Line of credit facility, interest rate description							Borrowings under the Credit Facility bore interest at a rate equal to, at the Operating Partnership’s option, either (1) the applicable average LIBOR rate as shown in Reuters Screen LIBOR01 Page (or any successor service, or commercially available source providing such quotations); provided if the rate shown on Reuters Screen LIBOR01 Page (or any successor service) was less than zero, such rate was deemed to be zero, or (2) a base rate determined by reference to the greatest of (a) the fluctuating annual rate of interest announced from time to time by Key Bank as its “prime rate,” (b) 0.50% above the federal funds effective rate, or (c) then applicable LIBOR for an interest period of one (1) month plus 1.00% per annum; provided that in no event would the Base Rate be less than zero, and in each case of clauses (1) and (2), plus an applicable margin, depending upon the overall leverage of the properties and whether the loan was under the Revolver or Term Loan facilities.
Key Bank [Member] | Operating Partnership [Member] | Amended and Restated Credit Agreement [Member] | Usage Less Than 50% [Member]
Line Of Credit Facility [Line Items]
Line of Credit facility, commitment fee percentage			0.20%
Key Bank [Member] | Operating Partnership [Member] | Amended and Restated Credit Agreement [Member] | Usage 50% or Greater [Member]
Line Of Credit Facility [Line Items]
Line of Credit facility, commitment fee percentage			0.15%
Key Bank [Member] | Operating Partnership [Member] | Amended and Restated Credit Agreement [Member] | Federal Reserve Bank Of Cleveland [Member]
Line Of Credit Facility [Line Items]
Applicable margin range on credit facility			0.50%
Key Bank [Member] | Operating Partnership [Member] | First Amendment [Member]
Line Of Credit Facility [Line Items]
Line of credit facility, interest rate description							Borrowings under the Credit Facility bear interest at a rate equal to, at the Operating Partnership’s option, either (1) daily simple SOFR plus 0.1% (but in no case shall the rate be less than zero), (2) term SOFR plus 0.1% (but in no case shall the rate be less than zero) (“Adjusted Term SOFR”), or (3) a base rate determined by reference to the greatest of (a) the fluctuating annual rate of interest announced from time to time by Key Bank as its “prime rate,” (b) 0.50% above the federal funds effective rate, (c) Adjusted Term SOFR for a one month tenor plus 1.0% and (d) 1.0%, and in each case of clauses (1), (2) and (3), plus an applicable margin, depending upon the overall leverage of the properties and whether the loan is under the Revolver or Term Loan facilities.
Applicable margin range on credit facility							1.00%
Key Bank [Member] | Operating Partnership [Member] | First Amendment [Member] | Federal Reserve Bank Of Cleveland [Member]
Line Of Credit Facility [Line Items]
Applicable margin range on credit facility							0.50%
Key Bank [Member] | Operating Partnership [Member] | Revolving Line of Credit Facility [Member] | Amended and Restated Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Line of Credit facility, maximum borrowing capacity			$ 10,000,000		40,000,000		$ 40,000,000
Line of Credit facility term			4 years				4 years
Line of Credit facility extended maturity period			1 year				1 year
Key Bank [Member] | Operating Partnership [Member] | Term Loan [Member] | Amended and Restated Credit Agreement [Member]
Line Of Credit Facility [Line Items]
Line of Credit facility, maximum borrowing capacity			$ 50,000,000		50,000,000		$ 50,000,000
Line of Credit facility term			4 years
Line of Credit facility extended maturity period			1 year				1 year
Key Bank [Member] | Operating Partnership [Member] | Daily Simple SOFR [Member] | First Amendment [Member]
Line Of Credit Facility [Line Items]
Applicable margin range on credit facility							0.10%
Key Bank [Member] | Operating Partnership [Member] | Term SOFR [Member] | First Amendment [Member]
Line Of Credit Facility [Line Items]
Applicable margin range on credit facility							0.10%
Key Bank [Member] | Operating Partnership [Member] | Adjusted Term SOFR [Member] | First Amendment [Member]
Line Of Credit Facility [Line Items]
Applicable margin range on credit facility							1.00%
Term Loan [Member]
Line Of Credit Facility [Line Items]
Payment of outstanding	$ 50,000,000
Term Loan [Member] | SOFR [Member]
Line Of Credit Facility [Line Items]
Outstanding borrowings					0		$ 0		50,000,000
Term Loan [Member] | Term Loan Payable [Member]
Line Of Credit Facility [Line Items]
Unamortized loan costs					$ 0		$ 0		$ 200,000

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Stockholders' Equity - Additional Information (Detail) - USD ($)								3 Months Ended		6 Months Ended
	Jun. 26, 2024	Jun. 05, 2024	Nov. 09, 2023	Sep. 19, 2023	Jun. 02, 2023	Jul. 01, 2022	Nov. 08, 2016	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Stockholders' Equity Note [Line Items]
Shares of preferred stock authorized								10,000,000		10,000,000		10,000,000
Par value per share (in dollars per share)								$ 0.0001		$ 0.0001		$ 0.0001
Shares of common stock authorized for issuance								100,000,000		100,000,000		100,000,000
Common stock, par value (in dollars per share)								$ 0.0001		$ 0.0001		$ 0.0001
Shares of common stock issued								13,345,980		13,345,980		13,326,965
Shares of common stock outstanding								13,345,980		13,345,980		13,326,965
Repurchases - common stock								$ 2,693,000	$ 2,000,000
Options expiration period										10 years
Stock compensation expense										$ 1,500,000	$ 1,300,000
Common stock value per share												$ 22.5
Unamortized stock compensation								$ 3,980,000		$ 3,980,000
Restricted stock, issued										1,107,539
Vested (in shares)										886,011
Stock Options [Member]
Stockholders' Equity Note [Line Items]
Stock options outstanding								600,000		600,000
Vested (in shares)										200,000
Non-vested (in shares)								400,000		400,000
Restricted Stock [Member]
Stockholders' Equity Note [Line Items]
Weighted average period for recognition										2 years 4 months 24 days
Vested (in shares)										66,857
Non-vested (in shares)								221,528		221,528		161,945
Key Officers [Member] | Non-qualified Stock Options [Member]
Stockholders' Equity Note [Line Items]
Stock options granted						400,000	200,000
Vesting period						3 years	3 years
Stock options granted exercise price						$ 18.15	$ 10.40
Non-employee Directors and Key Officers [Member]
Stockholders' Equity Note [Line Items]
Stock compensation expense										$ 200,000	$ 200,000
2007 Incentive Award Plan [Member]
Stockholders' Equity Note [Line Items]
Number of shares of common stock which may be awarded								1,000,000		1,000,000
Share-based compensation award plan , expiration date										Jun. 11, 2017
2017 Incentive Award Plan [Member]
Stockholders' Equity Note [Line Items]
Number of shares purchased	30,797
Share price	$ 22.5
Repurchases - common stock	$ 700,000
Number of shares of common stock which may be awarded								2,000,000		2,000,000
Plan effective date										Apr. 24, 2017
Number of shares available for future issuance								904,451		904,451
Share Redemption Program [Member]
Stockholders' Equity Note [Line Items]
Number of shares purchased		76,628			95,011
Share price		$ 26.1			$ 21.05
Repurchases - common stock		$ 2,000,000			$ 2,000,000
Certain Order dated September 19, 2023 of the United States Bankruptcy Court [Member]
Stockholders' Equity Note [Line Items]
Number of shares purchased			6,944
Share price			$ 9.65
Repurchases - common stock			$ 67,010
Series A Preferred Stock [Member]
Stockholders' Equity Note [Line Items]
Shares of preferred stock authorized								500,000		500,000		500,000
Par value per share (in dollars per share)								$ 0.0001		$ 0.0001		$ 0.0001
Preferred stock, shares outstanding								0		0		0
Series B Preferred Stock, Non-Voting [Member]
Stockholders' Equity Note [Line Items]
Shares of preferred stock authorized								6,500,000		6,500,000		6,500,000
Par value per share (in dollars per share)								$ 0.0001		$ 0.0001		$ 0.0001
Preferred stock, voting rights										There are no voting rights associated with the Series B preferred stock.
Preferred stock, shares outstanding								0		0		0
Class B Limited Partner Units
Stockholders' Equity Note [Line Items]
Number of shares purchased				15,202
Repurchases - common stock				$ 32,214,363

XML

Stockholders' Equity - Schedule of Dividends Declared on Common Stock (Detail) - $ / shares	Jun. 13, 2024	Mar. 12, 2024
12 Months Ended 12/31/22 [Member]
Stockholders' Equity Note [Line Items]
Declaration Date		Mar. 12, 2024
Record Date		Mar. 31, 2024
Payment Date		Apr. 12, 2024
Dividend Per Share		$ 0.66
3 Months Ended 3/31/23 [Member]
Stockholders' Equity Note [Line Items]
Declaration Date		Mar. 12, 2024
Record Date		Mar. 31, 2024
Payment Date		Apr. 15, 2024
Dividend Per Share		$ 0.12
6 Months Ended 6/30/2024 [Member]
Stockholders' Equity Note [Line Items]
Declaration Date	Jun. 13, 2024
Record Date	Jun. 30, 2024
Payment Date	Jul. 12, 2024
Dividend Per Share	$ 0.12

XML

Stockholders' Equity - Schedule of Shares Issued under 2007 and 2017 Plan (Detail)	6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares
2007 Plan | Award Granted on April 30, 2012 [Member] | Certain Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Apr. 30, 2012
Total Shares Issued | shares	55,149
Value Per Share | $ / shares	$ 6.80
Approximate Value of Shares | $	$ 375,000
Vesting period	3 years
2007 Plan | Award Granted on June 7, 2012 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 07, 2012
Total Shares Issued | shares	5,884
Value Per Share | $ / shares	$ 6.8
Approximate Value of Shares | $	$ 40,000
Vesting Period	Immediately
2007 Plan | Award Granted on March 21, 2013 [Member] | Certain Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Mar. 21, 2013
Total Shares Issued | shares	46,876
Value Per Share | $ / shares	$ 6.40
Approximate Value of Shares | $	$ 300,000
Vesting period	3 years
2007 Plan | Award Granted on March 21, 2013 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Mar. 21, 2013
Total Shares Issued | shares	3,126
Value Per Share | $ / shares	$ 6.40
Approximate Value of Shares | $	$ 20,000
Vesting Period	Immediately
2007 Plan | Award Granted on June 6, 2013 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 06, 2013
Total Shares Issued | shares	9,378
Value Per Share | $ / shares	$ 6.40
Approximate Value of Shares | $	$ 60,000
Vesting Period	Immediately
2007 Plan | Award Granted on June 4, 2014 [Member] | Certain Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 04, 2014
Total Shares Issued | shares	44,704
Value Per Share | $ / shares	$ 6.80
Approximate Value of Shares | $	$ 304,000
Vesting period	5 years
2007 Plan | Award Granted on June 19, 2014 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 19, 2014
Total Shares Issued | shares	8,820
Value Per Share | $ / shares	$ 6.8
Approximate Value of Shares | $	$ 60,000
Vesting Period	Immediately
2007 Plan | Award Granted on March 26, 2015 [Member] | Certain Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Mar. 26, 2015
Total Shares Issued | shares	43,010
Value Per Share | $ / shares	$ 9.30
Approximate Value of Shares | $	$ 400,000
Vesting period	5 years
2007 Plan | Award Granted on June 19, 2015 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 19, 2015
Total Shares Issued | shares	16,436
Value Per Share | $ / shares	$ 10.65
Approximate Value of Shares | $	$ 175,000
Vesting Period	Immediately
2007 Plan | Award Granted on March 24, 2016 [Member] | Certain Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Mar. 24, 2016
Total Shares Issued | shares	47,043
Value Per Share | $ / shares	$ 10.40
Approximate Value of Shares | $	$ 489,000
Vesting period	5 years
2007 Plan | Award Granted on June 9, 2016 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 09, 2016
Total Shares Issued | shares	14,424
Value Per Share | $ / shares	$ 10.4
Approximate Value of Shares | $	$ 150,000
Vesting Period	Immediately
2007 Plan | Award Granted on May 22, 2017 [Member] | Certain Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	May 22, 2017
Total Shares Issued | shares	34,482
Value Per Share | $ / shares	$ 11.60
Approximate Value of Shares | $	$ 400,000
Vesting period	9 years
2007 Plan | Award Granted on May 31, 2017 [Member] | Current and Former Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	May 31, 2017
Total Shares Issued | shares	7,929
Value Per Share | $ / shares	$ 11.60
Approximate Value of Shares | $	$ 92,000
Vesting Period	Immediately
2007 Plan | Award Granted on June 8, 2017 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 08, 2017
Total Shares Issued | shares	15,516
Value Per Share | $ / shares	$ 11.60
Approximate Value of Shares | $	$ 180,000
Vesting Period	Immediately
2017 Plan | Award Granted on June 7, 2018 [Member] | Certain Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 07, 2018
Total Shares Issued | shares	42,918
Value Per Share | $ / shares	$ 11.65
Approximate Value of Shares | $	$ 500,000
Vesting period	9 years
2017 Plan | Award Granted on June 7, 2018 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 07, 2018
Total Shares Issued | shares	15,020
Value Per Share | $ / shares	$ 11.65
Approximate Value of Shares | $	$ 175,000
Vesting Period	Immediately
2017 Plan | Award Granted on June 5, 2019 [Member] | Certain Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 05, 2019
Total Shares Issued | shares	64,654
Value Per Share | $ / shares	$ 11.60
Approximate Value of Shares | $	$ 750,000
Vesting period	9 years
2017 Plan | Award Granted on June 5, 2019 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 05, 2019
Total Shares Issued | shares	15,085
Value Per Share | $ / shares	$ 11.6
Approximate Value of Shares | $	$ 175,000
Vesting Period	Immediately
2017 Plan | Award Granted on June 4, 2020 [Member] | Certain Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 04, 2020
Total Shares Issued | shares	72,834
Value Per Share | $ / shares	$ 12.7
Approximate Value of Shares | $	$ 925,000
Vesting period	9 years
2017 Plan | Award Granted on June 4, 2020 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 04, 2020
Total Shares Issued | shares	16,530
Value Per Share | $ / shares	$ 12.70
Approximate Value of Shares | $	$ 210,000
Vesting Period	Immediately
2017 Plan | Award Granted on June 10, 2021 [Member] | Certain Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 10, 2021
Total Shares Issued | shares	123,947
Value Per Share | $ / shares	$ 11.90
Approximate Value of Shares | $	$ 1,475,000
Vesting period	9 years
2017 Plan | Award Granted on June 10, 2021 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 10, 2021
Total Shares Issued | shares	22,686
Value Per Share | $ / shares	$ 11.90
Approximate Value of Shares | $	$ 270,000
Vesting Period	Immediately
2017 Plan | Award Granted on June 9, 2022 [Member] | Certain Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 09, 2022
Total Shares Issued | shares	85,398
Value Per Share | $ / shares	$ 18.15
Approximate Value of Shares | $	$ 1,550,000
Vesting period	9 years
2017 Plan | Award Granted on June 9, 2022 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 09, 2022
Total Shares Issued | shares	14,874
Value Per Share | $ / shares	$ 18.15
Approximate Value of Shares | $	$ 270,000
Vesting Period	Immediately
2017 Plan | Award Granted on June 8, 2023 [Member] | Certain Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 08, 2023
Total Shares Issued | shares	78,548
Value Per Share | $ / shares	$ 16.55
Approximate Value of Shares | $	$ 1,300,000
Vesting period	9 years
2017 Plan | Award Granted on June 8, 2023 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 08, 2023
Total Shares Issued | shares	16,615
Value Per Share | $ / shares	$ 16.55
Approximate Value of Shares | $	$ 275,000
Vesting Period	Immediately
2017 Plan | Award Granted on June 13, 2024 [Member] | Certain Executives [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 13, 2024
Total Shares Issued | shares	111,776
Value Per Share | $ / shares	$ 22.50
Approximate Value of Shares | $	$ 2,515,000
Vesting period	9 years
2017 Plan | Award Granted on June 13, 2024 [Member] | Non-management Members of Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Issued, Grant Date	Jun. 13, 2024
Total Shares Issued | shares	14,664
Value Per Share | $ / shares	$ 22.50
Approximate Value of Shares | $	$ 330,000
Vesting Period	Immediately

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Stockholders' Equity - Summary of Restricted Stock Activity (Detail)	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vested, Shares	(886,011)
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested at beginning of period, Shares	161,945
Non-vested, new shares issued, Shares	126,440
Vested, Shares	(66,857)
Non-vested at end of period, Shares	221,528
Non-vested at beginning of period, Weighted Average Grant Date Fair Value | $ / shares	$ 14.91
Non-vested, new shares issued, Weighted Average Grant Date Fair Value | $ / shares	22.50
Vested, Weighted Average Grant Date Fair Value | $ / shares	20.09
Non-vested at end of period, Weighted Average Grant Date Fair Value | $ / shares	$ 17.96

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Stockholders' Equity - Summary of Vesting Schedule of Non-vested Shares of Restricted Stock Outstanding (Detail) - Restricted Stock [Member] - shares	Jun. 30, 2024	Dec. 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Remainder of 2024	35,561
2025	59,429
2026	42,995
2027	31,100
2028	21,875
2029	14,461
Thereafter	16,107
Total Non-vested Shares	221,528	161,945

XML

Earnings per Share - Additional Information (Detail) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Number of common share equivalents	0	184,889	35,650

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Earnings per Share - Schedule of Computation of Basic and Diluted Earnings per Share Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator:
Net (loss) income attributable to common stockholders	$ (1,733)	$ 1,163	$ 1,247	$ 3,763
Denominator:
Weighted average common shares outstanding – basic	13,328,389	13,327,529	13,327,677	13,330,626
Weighted average common shares outstanding – diluted	13,328,389	13,363,179	13,512,566	13,366,275
Basic and Diluted Per Share Information:
Net income per share – basic	$ (0.13)	$ 0.09	$ 0.09	$ 0.28
Net income per share – diluted	$ (0.13)	$ 0.09	$ 0.09	$ 0.28

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Related Party Transactions - Additional Information (Detail) - USD ($)	1 Months Ended				3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jan. 31, 2023	Oct. 31, 2022	Jul. 31, 2020	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Related Party Transactions [Line Items]
Brokerage commissions					$ 19,346,000	$ 18,579,000	$ 39,318,000	$ 37,138,000
Aggregate contractual rents					2,995,000		2,995,000
Operating lease costs							176,000	$ 169,000
Green Holland Management LLC [Member]
Related Party Transactions [Line Items]
Brokerage commissions on purchase of property		$ 574,000
Brokerage commissions on sale of property			$ 600,000
Rochlin Organization ("TRO") [Member]
Related Party Transactions [Line Items]
Brokerage commissions	$ 1,500,000		2,900,000	$ 406,000
Aggregate contractual rents			$ 82,500,000	$ 21,000,000	$ 32,300,000		$ 32,300,000
Louis Sheinker [Member] | Green Holland Management LLC [Member]
Related Party Transactions [Line Items]
Partnership percentage in limited liability real estate brokerage firm			50.00%

XML

Commitments and Contingencies - Additional Information (Detail)		6 Months Ended
	Dec. 11, 2020 USD ($)	Jun. 30, 2024 Bus_Depot
Commitments and Contingencies [Line Items]
Number of bus depot sites received final regulatory closure		3
Number of former bus depot sites		6
Number of bus depot sites continuing monitoring and reporting activities associated with environmental cleanup efforts		3
Number of bus depot sites compliance with environmental cleanup efforts		6
Steel Garden LLC [Member]
Commitments and Contingencies [Line Items]
Lease term of contract	10 years 4 months
Lease option to extend description	one five-year option to extend the lease
Lease option to extend term	5 years
Lease commencement date	Oct. 01, 2021
Monthly minimum rent | $	$ 27,755.21
Annual rental increase percentage	3.00%
Free minimum rental period	4 months

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Fair Value - Schedule of Fair Value of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Financial assets:
Cash and cash equivalents	$ 49,581	$ 27,913
Restricted cash	973	1,400	$ 1,283	$ 986
Rent and other receivables	1,103	569
Financial liabilities:
Dividends payable	1,602	1,333
Accounts payable and accrued expenses	4,327	5,234
Secured revolving credit facility	0	40,000
Term loan payable		50,000
Mortgage notes payable	502,927	379,187
Estimate of Fair Value Measurement [Member]
Financial assets:
Cash and cash equivalents	49,581	27,913
Restricted cash	973	1,400
Rent and other receivables	1,103	569
Financial liabilities:
Dividends payable	1,602	1,333
Accounts payable and accrued expenses	4,327	5,234
Secured revolving credit facility		40,000
Term loan payable		50,000
Mortgages [Member]
Financial liabilities:
Mortgage notes payable	502,927	379,187
Mortgages [Member] | Estimate of Fair Value Measurement [Member]
Financial liabilities:
Mortgage notes payable	$ 464,358	$ 345,009

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Subsequent Events - Additional Information (Detail) - Subsequent Event - Quarterly Cash Dividend [Member]	Aug. 06, 2024 $ / shares
Subsequent Event [Line Items]
Dividend declared date	Aug. 06, 2024
Cash dividend declared per share	$ 0.12
Dividend record date	Sep. 30, 2024
Dividends Payable, Date to be Paid	Oct. 11, 2024