Real Estate, net and Real Estate Held for Sale (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Operating Real Estate Properties

The following table presents the Company’s net lease portfolio, net, as of December 31, 2023 and December 31, 2022 (dollars in thousands):


	December 31, 2023		December 31, 2022
Land and improvements	$	127,003	$	128,608
Buildings, building leaseholds, and improvements	498,291		505,297
Tenant improvements	19,145		17,851

Subtotal	$	644,439	$	651,756
Less: Accumulated depreciation	(103,468)		(87,109)

Net lease portfolio, net	$	540,971	$	564,647

The following table presents the Company’s portfolio of other real estate, net as of December 31, 2023 and December 31, 2022 (dollars in thousands):


	December 31, 2023		December 31, 2022
Land and improvements	$	68,433	$	29,582
Buildings, building leaseholds, and improvements	217,554		152,186
Tenant improvements	27,668		18,757
Furniture, fixtures and equipment	1,204		135
Construction-in-progress	3,142		3,011
Subtotal	$	318,001	$	203,671
Less: Accumulated depreciation	(43,397)		(35,850)
Less: Impairment(1)	(7,590)		—
Other portfolio, net	$	267,014	$	167,821

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(1) See Note 13, “Fair Value,” for discussion of impairment of real estate.

The following table summarizes the Company’s assets held for sale related to real estate (dollars in thousands):


	December 31, 2023
Assets
Real estate, net	$	19,600

Total assets held for sale	$	19,600

Schedule of Property Operating Income

For the years ended December 31, 2023, 2022 and 2021 the components of property operating income were as follows (dollars in thousands):


	Year Ended December 31,
		2023		2022		2021
Lease revenues
Minimum lease revenue		$	81,127	$	77,270	$	83,498
Variable lease revenue		12,149		10,992		9,815
		$	93,276	$	88,262	$	93,313
Hotel operating income		—		1,566		9,200
Total property operating income(1)		$	93,276	$	89,828	$	102,513

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(1)Excludes amortization expense related to above and below-market leases of $1.3 million and income of $1.4 million for the year ended December 31, 2023, respectively. Excludes amortization expense related to above and below-market leases of $1.0 million and income of $1.4 million for the year ended December 31, 2022, respectively. Excludes amortization expense related to above and below-market leases of $1.3 million and income of $1.4 million for the year ended December 31, 2021, respectively.

Schedule of Future Minimum Rental Income under Non-cancellable Operating Leases

The following table presents approximate future minimum rental income under noncancellable operating leases, excluding variable lease revenue of tenant reimbursements, to be received over the next five years and thereafter as of December 31, 2023 (dollars in thousands):


2024	$	84,560
2025	78,836
2026	71,758
2027	66,870
2028	57,927
2029 and thereafter	297,516
Total	$	657,467

Schedule of Asset Acquisition

The following table summarizes the Company’s real estate acquisitions for the year ended December 31, 2023 (dollars in thousands):


					Purchase Price Allocation
Acquisition Date	Property Type and Location	Number of Buildings/Units(1)	Purchase Price(2)		Land and Improvements(2)		Building and Improvements(2)		Furniture and Fixtures(2)		Lease Intangible Assets(2)		Other Assets		Lease Intangible Liabilities(2)		Other Liabilities
Year Ended December 31, 2023
July	Office - California(3)	1	$	13,933	$	5,718	$	3,262	$	—	$	4,404	$	922	$	(2)	$	(371)
June	Office - New York(3)	1	36,177		10,380		24,484		—		1,898		432		(528)		(489)
June	Office - New York(3)	1	36,922		14,786		15,958		—		6,867		876		(193)		(1,372)
November	Office - Washington D.C.(4)	1	19,600		—		—		—		—		—		—		—
December	Multifamily - Arizona(3)	236	35,213		7,590		25,745		832		1,271		325		—		(550)
			$	141,845	$	38,474	$	69,449	$	832	$	14,440	$	2,555	$	(723)	$	(2,782)

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(1) For office properties, represents number of buildings. For multifamily properties, represents number of units.

(2) Useful life of real estate acquired is 45 years for buildings, four to nine years for tenant improvements, four to nine years for furniture and fixtures, and three to 12 years for lease intangibles.

(3) Represents assets acquired by the Company through deeds-in-lieu of foreclosure.

(4) Represents an asset acquired through foreclosure and subsequently classified as held for sale. As such, no purchase price allocation was completed and purchase price represents the fair value of the property.