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Investments
 12 Months Ended
Dec. 31, 2023
Investments [Abstract]  
Investments Investments
The following table presents information about the number of investments in the Company's real estate investment portfolio as of each date presented:
December 31,
20232022
Owned properties (1)
1,7261,489
Properties securing investments in mortgage loans (2)
136153
Ground lease interests1111
Total number of investments1,8731,653
_____________________________________
(1)Includes six and eight properties which are subject to leases accounted for as direct financing leases or loans as of December 31, 2023 and 2022, respectively.
(2)Properties secure 20 mortgage loans receivable as of December 31, 2023 and 2022.

The following table presents information about the gross investment value of the Company's real estate investment portfolio as of each date presented:
December 31,
(in thousands)20232022
Real estate investments, at cost$4,683,937 $3,810,570 
Loans and direct financing lease receivables, net223,854 240,035 
Real estate investments held for sale, net7,455 4,780 
Total gross investments$4,915,246 $4,055,385 
Investments in 2023 and 2022
The following table presents information about the Company’s investment activity during the years ended December 31, 2023 and 2022:
Year ended December 31,
(Dollars in thousands)20232022
Ownership type
(1)
(2)
Number of properties291224
Purchase price allocation:
Land and improvements$354,331 $270,049 
Building and improvements539,062 481,560 
Construction in progress (3)
105,075 51,870 
Intangible lease assets2,553 3,366 
Total purchase price1,001,021 806,845 
Intangible lease liabilities(181)— 
Purchase price (including acquisition costs)$1,000,840 $806,845 
_____________________________________
(1)During the year ended December 31, 2023, the Company acquired fee interests in 289 properties and acquired two properties subject to ground leases.
(2)During the year ended December 31, 2022, the Company acquired fee interests in 223 properties and acquired one property subject to a ground lease.
(3)Represents amounts incurred at and subsequent to initial investment and includes $2.4 million and $0.8 million, respectively, of capitalized interest expense during the years ended December 31, 2023 and 2022.
During the years ended December 31, 2023 and 2022, the Company did not make any new investments that individually represented more than 5% of the Company’s total real estate investment portfolio.
Gross Investment Activity
During the years ended December 31, 2023, 2022 and 2021, the Company had the following gross investment activity:
(Dollar amounts in thousands)Number of
Investment
Locations		Dollar
Amount of
Investments
Gross investments, December 31, 20201,181 $2,528,673 
Acquisitions of and additions to real estate investments297 853,798 
Sales of investments in real estate(38)(57,154)
Provisions for impairment of real estate (1)
— (6,120)
Investments in loans receivable49 137,351 
Principal collections on and settlements of loans and direct financing lease receivables(38)(100,488)
Other— (499)
Gross investments, December 31, 20211,451 3,355,561 
Acquisitions of and additions to real estate investments224 810,661 
Sales of investments in real estate(54)(138,515)
Provisions for impairment of real estate (2)
— (20,164)
Investments in loans receivable75 143,954 
Principal collections on and settlements of loans and direct financing lease receivables(43)(93,118)
Other— (2,994)
Gross investments, December 31, 20221,653 4,055,385 
Acquisitions of and additions to real estate investments291 1,004,075 
Sales of investments in real estate(51)(120,809)
Relinquishment of properties at end of ground lease term(2)(1,543)
Provisions for impairment of real estate (3)
— (3,548)
Investments in loans receivable2 13,091 
Principal collections on and settlements of loans and direct financing lease receivables(20)(27,908)
Other— (3,497)
Gross investments, December 31, 20231,873 4,915,246 
Less: Accumulated depreciation and amortization (4)
— (367,133)
Net investments, December 31, 20231,873 $4,548,113 
_____________________________________________ 
(1)During the year ended December 31, 2021, the Company identified and recorded provisions for impairment at two vacant and 16 tenanted properties.
(2)During the year ended December 31, 2022, the Company identified and recorded provisions for impairment at four vacant and nine tenanted properties.
(3)During the year ended December 31, 2023, the Company identified and recorded provisions for impairment at two vacant and six tenanted properties.
(4)Includes $321.9 million of accumulated depreciation as of December 31, 2023.
Real Estate Investments
The Company's investment properties are leased to tenants under long-term operating leases that typically include one or more renewal options. See Note 4—Leases for more information about the Company's leases.
Loans and Direct Financing Lease Receivables
As of December 31, 2023 and 2022, the Company had 20 and 23 mortgage loans receivable outstanding, respectively. As of December 31, 2023 and 2022, the Company had two and three leases accounted for as loans, respectively, with an aggregate carrying amount of $223.1 million and $238.7 million, respectively. The maximum amount of loss due to credit risk is the Company's current principal balance of $223.1 million as of December 31, 2023.
The Company's loans receivable portfolio as of December 31, 2023 and 2022 is summarized below (dollars in thousands): 
Loan Type
Monthly Payment (1)
Number of Secured PropertiesEffective Interest RateStated Interest RateMaturity DatePrincipal Balance Outstanding
December 31, 2023December 31, 2022
Mortgage (2)(3)
I/O28.80%8.00%2039$12,000 $12,000 
Mortgage (2)
I/O28.53%7.75%20397,300 7,300 
Mortgage (2)
I/O697.79%7.33%203451,000 51,000 
Mortgage (2)
I/O18.42%7.65%20405,300 5,300 
Mortgage (2)
I/O28.54%8.50%20241,785 2,324 
Mortgage (2)
I/O17.00%7.00%2024500 600 
Mortgage (2)
I/O28.30%8.25%2024994 3,146 
Mortgage (2)
I/O26.87%6.40%20362,520 2,520 
Mortgage (2)
I/O—7.51%7.00%2036— 2,673 
Mortgage (2)
I/O28.29%8.25%20242,389 2,389 
Mortgage (2)
I/O18.96%8.06%205124,100 24,100 
Mortgage (2)
I/O—7.44%7.10%2036— 9,808 
Mortgage (2)
I/O77.30%6.80%203635,474 35,474 
Mortgage (2)
I/O17.73%7.20%20362,470 2,470 
Mortgage (2)
I/O18.00%8.00%20241,754 1,754 
Mortgage (2)
I/O267.00%7.00%202717,494 26,307 
Mortgage (2)
I/O17.73%7.20%20373,600 3,600 
Mortgage (2)
I/O18.30%8.25%2024760 760 
Mortgage (2)
I/O48.64%8.05%203712,250 12,250 
Mortgage (2)
I/O98.85%8.25%203725,993 28,938 
Mortgage (2)
I/O18.83%8.25%203810,200 — 
Mortgage (2)
I/O18.10%8.10%20252,891 — 
Leasehold interestP+I12.25%
(4)
2034929 992 
Leasehold interestP+I12.41%
(4)
20341,382 1,473 
Leasehold interestP+I—4.97%
(4)
2038— 1,517 
Net investment    $223,085 $238,695 
________________________________________________
(1)I/O: Interest Only; P+I: Principal and Interest
(2)Loan requires monthly payments of interest only with a balloon payment due at maturity.
(3)Loan allows for prepayments in whole or in part without penalty.
(4)These leasehold interests are accounted for as loans receivable, as the lease for each property contains an option for the lessee to repurchase the leased property in the future.
Scheduled principal payments due to be received under the Company's loans receivable as of December 31, 2023 were as follows:
(in thousands)Loans Receivable
2024$8,346 
20253,063 
2026181 
202717,684 
2028199 
Thereafter193,612 
Total$223,085 
As of December 31, 2023 and 2022, the Company had $1.4 million and $2.1 million, respectively, of net investments accounted for as direct financing lease receivables. The components of the investments accounted for as direct financing lease receivables were as follows:
 December 31,
(in thousands)20232022
Minimum lease payments receivable$1,709 $2,812 
Estimated unguaranteed residual value of leased assets251 251 
Unearned income from leased assets(525)(957)
Net investment$1,435 $2,106 
Scheduled future minimum non-cancelable base rental payments due to be received under the direct financing lease receivables as of December 31, 2023 were as follows:
(in thousands)Future Minimum Base Rental Payments
2024$210 
2025178 
2026167 
2027143 
2028145 
Thereafter866 
Total$1,709 
Allowance for Credit Losses
The Company utilizes a real estate loss estimate model (i.e. a RELEM) which estimates losses on loans and direct financing lease receivables for purposes of calculating an allowance for credit losses. As of December 31, 2023 and 2022, the Company recorded an allowance for credit losses of $0.7 million and $0.8 million, respectively, which is recorded within loans and direct financing receivables on the Company's consolidated balance sheets. Changes in the Company’s allowance for credit losses are presented within change in provision for credit losses in the Company’s consolidated statements of operations.
For the years ended December 31, 2023, 2022 and 2021, the changes to the Company's allowance for credit losses were as follows:
(in thousands)Loans and Direct Financing Lease Receivables
Balance at December 31, 2020$1,018 
Current period provision for expected credit losses (1)
(204)
Write-offs charged— 
Recoveries— 
Balance at December 31, 2021814 
Current period provision for expected credit losses (2)
88 
Write-offs charged(137)
Recoveries— 
Balance at December 31, 2022765 
Current period provision for expected credit losses(2)
(99)
Write-offs charged—
Recoveries—
Balance at December 31, 2023$666 
_____________________________________
(1)The decrease in expected credit losses was due to assumptions regarding current macroeconomic factors returning to pre-pandemic values due to the reduction of the adverse impact of the COVID-19 pandemic.
(2)The change in expected credit loss was primarily due to an overall increase or decrease in the size of our loans and direct financing lease receivables portfolio.
The Company considers the ratio of loan to value ("LTV") to be a significant credit quality indicator for its loans and direct financing lease portfolio. The following table presents information about the LTV of the Company's loans and direct financing lease receivables measured at amortized cost as of as of December 31, 2023:
Amortized Cost Basis by Origination YearTotal Amortized Cost Basis
(in thousands)2023202220212020Prior to 2020
LTV <60%$— $23,000 $— $— $28,986 $51,986 
LTV 60%-70%— — 28,734 — — 28,734 
LTV >70%13,091 71,611 29,953 8,466 20,679 143,800 
$13,091 $94,611 $58,687 $8,466 $49,665 $224,520 
Real Estate Investments Held for Sale
The Company continually evaluates its portfolio of real estate investments and may elect to dispose of investments considering criteria including, but not limited to, tenant concentration, tenant credit quality, tenant operation type (e.g., industry, sector or concept), unit-level financial performance, local market conditions and lease rates, associated indebtedness and asset location. Real estate investments held for sale are expected to be sold within twelve months.
The following table shows the activity in real estate investments held for sale and intangible lease liabilities held for sale during the years ended December 31, 2023 and 2022: 
(Dollar amounts in thousands)Number of
Properties		Real Estate
Investments		Intangible Lease
Liabilities		Net Carrying
Value
Held for sale balance, December 31, 20219 $15,434 $— $15,434 
Transfers to held for sale classification11 28,393 — 28,393 
Sales(16)(39,047)— (39,047)
Transfers to held and used classification— — — — 
Held for sale balance, December 31, 20224 4,780 — 4,780 
Transfers to held for sale classification10 19,311 — 19,311 
Sales(9)(16,067)— (16,067)
Transfers to held and used classification(1)(569)— (569)
Held for sale balance, December 31, 20234 $7,455 $— $7,455 
Significant Concentrations
The Company did not have any tenants (including for this purpose, all affiliates of such tenants) whose rental revenue for the years ended December 31, 2023, 2022 or 2021 represented 10% or more of total rental revenue in the Company's consolidated statements of operations.
The following table lists the state where the rental revenue from the properties in that state during the periods presented represented 10% or more of total rental revenue in the Company's consolidated statements of operations:
 Year ended December 31,
State202320222021
Texas13.3%13.5%13.1%


Intangible Assets and Liabilities
Intangible assets and liabilities consisted of the following as of the dates presented:
 December 31, 2023December 31, 2022
(in thousands)Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Intangible assets:      
In-place leases$78,080 $35,896 $42,184 $77,096 $30,217 $46,879 
Intangible market lease assets11,129 5,456 5,673 11,268 4,917 6,351 
Total intangible assets$89,209 $41,352 $47,857 $88,364 $35,134 $53,230 
Intangible market lease liabilities$15,505 $4,299 $11,206 $15,325 $3,774 $11,551 
 The remaining weighted average amortization period for the Company's intangible assets and liabilities as of December 31, 2023, by category and in total, were as follows:
 Years Remaining
In-place leases8.5
Intangible market lease assets10.4
Total intangible assets8.7
 
Intangible market lease liabilities8.7
The following table discloses amounts recognized within the consolidated statements of operations related to amortization of in-place leases, amortization and accretion of above- and below-market lease assets and
liabilities, net and the amortization and accretion of above- and below-market ground leases for the periods presented:
 Year ended December 31,
(in thousands)202320222021
Amortization of in-place leases (1)
$6,408 $7,575 $7,544 
Amortization (accretion) of market lease intangibles, net (2)
11 (217)(47)
Amortization (accretion) of above- and below-market ground lease intangibles, net (3)
(286)(350)(353)
 ______________________________________________________
(1)Reflected within depreciation and amortization expense.
(2)Reflected within rental revenue.
(3)Reflected within property expenses.
The following table provides the estimated amortization of in-place lease assets to be recognized as a component of depreciation and amortization expense for the next five years and thereafter:
(in thousands)In-Place Lease Assets
2024$5,854 
20254,564 
20264,260 
20273,731 
20283,192 
Thereafter20,583 
Total$42,184 
The following table provides the estimated net amortization of above- and below-market lease intangibles to be recognized as a component of rental revenue for the next five years and thereafter:
(in thousands)Above Market Lease AssetBelow Market Lease LiabilitiesNet Adjustment to Rental Revenue
2024$(667)$699 $32 
2025(659)701 42 
2026(649)705 56 
2027(627)729 102 
2028(385)684 299 
Thereafter(2,686)7,688 5,002 
Total$(5,673)$11,206 $5,533