Real Estate Owned (Tables)

6 Months Ended

Jun. 30, 2024

Real Estate Owned, Disclosure of Detailed Components [Abstract]

Summary of Additional Detail Related to the Company's Hotel Portfolio and Mixed-use Real Estate Owned, Net

The following table presents detail related to our hotel portfolio and mixed-use real estate owned, net as of June 30, 2024 and December 31, 2023 ($ in thousands):

	June 30, 2024			December 31, 2023
Land	$	235,998		$	235,998
Building		295,651			295,651
Capital improvements		5,017			4,436
Tenant improvements		4,414			4,414
Furniture, fixtures and equipment		6,500			6,500
Real estate owned		547,580			546,999
Less: accumulated depreciation		(28,861	)		(24,040	)
Real estate owned, net	$	518,719		$	522,959

Schedule of Revenues and Operating Expenses of Real Estate Owned Properties

The following table presents additional detail related to the revenues and operating expenses of our real estate owned properties ($ in thousands):

	Three Months Ended					Six Months Ended
	June 30, 2024			June 30, 2023		June 30, 2024			June 30, 2023
Revenue
Hotel portfolio	$	20,728		$	19,866	$	32,745		$	30,829
Mixed-Use property fixed rents		2,094			-		4,172			-
Mixed-Use property straight-line rent adjustment		32			-		63			-
Mixed-Use property variable rents		81			-		220			-
Mixed-Use property amortization of above and below market leases, net		(354	)		-		(708	)		-
Total revenue from real estate owned	$	22,581		$	19,866	$	36,492		$	30,829
Operating expenses
Hotel portfolio	$	12,647		$	11,269	$	24,269		$	21,268
Mixed-Use property		1,212			-		2,470			-
Total operating expenses from real estate owned	$	13,859		$	11,269	$	26,739		$	21,268

Schedule of Future Minimum Fixed Rents under Non-Cancellable Leases

the future minimum fixed rents under our non-cancellable leases for each of the next five years and thereafter are as follows ($ in thousands):

Year	Amount
2024 (1)	$	4,156
2025		8,383
2026		8,415
2027		8,432
2028		8,323
Thereafter		27,462
Total	$	65,171

(1)Contractual lease payments due for the remaining six months of 2024.

Schedule of Lease Intangibles

As of June 30, 2024 and December 31, 2023, our lease intangibles are comprised of the following ($ in thousands):

Intangible	June 30, 2024			December 31, 2023
In-place, above market, and other lease values	$	24,289		$	24,289
Less: accumulated amortization		(2,592	)		(1,296	)
In-place, above market, and other lease values, net	$	21,697		$	22,993
Below market lease values	$	(4,209	)	$	(4,209	)
Less: accumulated amortization		377			188
Below market lease values, net	$	(3,832	)	$	(4,021	)

Estimated Amortization of Intangibles for Next Five Years

As of June 30, 2024, the estimated amortization of these intangibles for the next five years is approximately as follows ($ in thousands):

	In-place and Other Lease Values (1)		Above Market Lease Values (2)			Below Market Lease Values (2)
2024 (3)	$	401	$	(895	)	$	188
2025		802		(1,791	)		377
2026		802		(1,791	)		377
2027		802		(1,791	)		377
2028		769		(1,771	)		377
Thereafter		2,025		(8,057	)		2,136
Total	$	5,601	$	(16,096	)	$	3,832

(1)Amortization of in-place and other lease values is recognized in depreciation and amortization expense on our consolidated statements of operations.

(2)Amortization of above and below market lease values, net is recognized in revenue from real estate owned on our consolidated statements of operations.

(3)Represents amortization for the remaining six months of 2024.