Quarterly report pursuant to Section 13 or 15(d)

Real Estate and Intangible Assets (Tables)

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Real Estate and Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2024
Real Estate [Abstract]  
Schedule of Components of Investments in Real Estate
The following table sets forth the components of our investments in real estate as of June 30, 2024 and December 31, 2023, respectively, excluding real estate held for sale (dollars in thousands):
June 30, 2024 December 31, 2023
Real estate:
Land (1) $ 142,501  $ 143,442 
Building and improvements 1,031,562  1,020,661 
Tenant improvements 56,143  57,261 
Accumulated depreciation (311,433) (299,662)
Real estate, net $ 918,773  $ 921,702 
(1)This amount includes $4,436 of land value subject to land lease agreements which we may purchase at our option for a nominal fee.
Schedule of Acquisitions
We acquired five industrial properties during the six months ended June 30, 2024, and acquired one industrial property during the six months ended June 30, 2023. The acquisitions are summarized below (dollars in thousands):

Six Months Ended Square Footage Lease Term Purchase Price Capitalized Acquisition Expenses
June 30, 2024 (1) 142,125  25.1 years $ 11,954  $ 267 
June 30, 2023 (2) 76,089  20.0 years $ 5,363  $ 98 
(1)On May 7, 2024, we acquired a five-property, 142,125 square foot portfolio in Warfordsburg, Pennsylvania for $12.0 million. The property is fully leased to one tenant and had 25.1 years of remaining lease term at the time we acquired the property.
(2)On April 14, 2023, we acquired a 76,089 square foot property in Riverdale, Illinois for $5.4 million. The property is fully leased to one tenant and had 20.0 years of remaining lease term at the time we acquired the property.
Schedule of Fair Value of Assets Acquired and Liabilities Assumed
We determined the fair value of assets acquired and liabilities assumed related to the properties acquired during the six months ended June 30, 2024 and 2023 as follows (dollars in thousands):

Six Months Ended June 30, 2024 Six Months Ended June 30, 2023
Acquired assets and liabilities Purchase price Purchase price
Land $ 1,169  $ 675 
Building 7,990  3,678 
Tenant Improvements 277  184 
In-place Leases 917  307 
Leasing Costs 1,386  405 
Customer Relationships 125  114 
Above Market Leases 90  (1) — 
Total Purchase Price $ 11,954  $ 5,363 
(1)This amount includes $90 of loans receivable included in Other assets on the condensed consolidated balance sheets.
Schedule of Future Lease Payments From Tenants
Future operating lease payments from tenants under non-cancelable leases, excluding tenant reimbursement of expenses, for the six months ending December 31, 2024 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):

Year Tenant Lease Payments
Six Months Ending December 31, 2024 $ 58,568 
2025 120,366 
2026 113,941 
2027 98,860 
2028 86,308 
2029 78,182 
Thereafter 372,072 
Schedule of Lease Revenue
The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three and six months ended June 30, 2024 and 2023, respectively (dollars in thousands):

For the three months ended June 30,
Lease revenue reconciliation 2024 2023 $ Change % Change
Fixed lease payments $ 33,084  $ 34,380  $ (1,296) (3.8) %
Variable lease payments 3,973  4,278  (305) (7.1) %
$ 37,057  $ 38,658  $ (1,601) (4.1) %

For the six months ended June 30,
Lease revenue reconciliation 2024 2023 $ Change % Change
Fixed lease payments $ 64,874  $ 66,521  $ (1,647) (2.5) %
Variable lease payments 7,905  8,691  (786) (9.0) %
$ 72,779  $ 75,212  $ (2,433) (3.2) %
Schedule of Carrying Value of Intangible Assets and Accumulated Amortization
The following table summarizes the carrying value of intangible assets, liabilities and the accumulated amortization for each intangible asset and liability class as of June 30, 2024 and December 31, 2023, respectively, excluding real estate held for sale (dollars in thousands):

June 30, 2024 December 31, 2023
Lease Intangibles Accumulated Amortization Lease Intangibles Accumulated Amortization
In-place leases $ 97,508  $ (64,208) $ 98,615  $ (63,269)
Leasing costs 86,415  (48,347) 84,844  (46,096)
Customer relationships 62,048  (37,481) 63,185  (36,231)
$ 245,971  $ (150,036) $ 246,644  $ (145,596)
Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion Deferred Rent Receivable/(Liability) Accumulated (Amortization)/Accretion
Above market leases $ 12,747  $ (10,362) $ 13,431  $ (10,675)
Below market leases and deferred revenue (58,132) 32,648  (59,411) 30,087 
Schedule of Weighted Average Amortization Periods
The weighted average amortization periods in years for the intangible assets acquired and liabilities assumed during the six months ended June 30, 2024 and 2023, were as follows:

Intangible Assets & Liabilities June 30, 2024 June 30, 2023
In-place leases 25.1 20.1
Leasing costs 25.1 20.1
Customer relationships 25.1 25.1
Above market leases 25.1 0.0
All intangible assets & liabilities 25.1 21.7