TERRENO REALTY CORP, 10-Q filed on 11/1/2023
Quarterly Report
v3.23.3
Cover - shares
 9 Months Ended
Sep. 30, 2023
Oct. 30, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2023  
Document Transition Report false  
Entity File Number 001-34603  
Entity Registrant Name Terreno Realty Corporation  
Entity Incorporation, State or Country Code MD  
Entity Tax Identification Number 27-1262675  
Entity Address, Street 10500 NE 8th Street  
Entity Address, Suite Suite 1910  
Entity Address, City Bellevue  
Entity Address, State WA  
Entity Address, Postal Zip Code 98004  
City Area Code 415  
Local Phone Number 655-4580  
Title of each class Common Stock, $0.01 par value per share  
Trading Symbol(s) TRNO  
Name of each exchange on which registered NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   85,385,905
Entity Central Index Key 0001476150  
Amendment Flag false  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q3  
Current Fiscal Year End Date --12-31  
v3.23.3
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Investments in real estate    
Land $ 1,933,179 $ 1,850,860
Buildings and improvements 1,519,178 1,372,473
Construction in progress 339,380 51,896
Intangible assets 138,554 123,545
Total investments in properties 3,930,291 3,398,774
Accumulated depreciation and amortization (370,237) (323,631)
Net investments in properties 3,560,054 3,075,143
Properties held for sale, net 7,266 0
Net investments in real estate 3,567,320 3,075,143
Cash and cash equivalents 96,196 26,393
Restricted cash 4,026 1,690
Other assets, net 71,923 61,215
Total assets 3,739,465 3,164,441
Liabilities    
Credit facility 0 0
Term loans payable, net 199,086 198,993
Senior unsecured notes, net 572,269 571,825
Security deposits 32,570 27,454
Intangible liabilities, net 87,181 55,873
Dividends payable 38,424 30,753
Accounts payable and other liabilities 72,965 49,692
Total liabilities 1,002,495 934,590
Commitments and contingencies (Note 11)
Stockholders’ equity    
Common stock: $0.01 par value, 400,000,000 shares authorized, and 84,871,366 and 76,463,482 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively. 850 765
Additional paid-in capital 2,691,181 2,167,276
Common stock held in deferred compensation plan, 514,539 and 417,665 shares at September 30, 2023 and December 31, 2022, respectively. (32,134) (26,462)
Retained earnings 77,073 88,272
Total stockholders’ equity 2,736,970 2,229,851
Total liabilities and equity $ 3,739,465 $ 3,164,441
v3.23.3
Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2023
Dec. 31, 2022
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 400,000,000 400,000,000
Common stock, shares issued (in shares) 84,871,366 76,463,482
Common stock, shares outstanding (in shares) 84,871,366 76,463,482
Common Shares Held in Deferred Compensation Plan    
Common stock held in deferred compensation plan (in shares) 514,539 417,665
v3.23.3
Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
REVENUES        
Rental revenues and tenant expense reimbursements $ 82,920 $ 70,801 $ 237,106 $ 200,205
Total revenues 82,920 70,801 237,106 200,205
COSTS AND EXPENSES        
Property operating expenses 20,469 17,140 57,436 49,820
Depreciation and amortization 18,245 16,957 54,636 47,227
General and administrative 9,119 8,139 28,205 22,999
Acquisition costs and other 51 36 126 1,091
Total costs and expenses 47,884 42,272 140,403 121,137
OTHER INCOME (EXPENSE)        
Interest and other income 1,093 175 4,029 411
Interest expense, including amortization (5,814) (6,265) (19,089) (16,393)
Gain on sales of real estate investments 0 0 12,257 76,048
Total other (expense) income (4,721) (6,090) (2,803) 60,066
Net income 30,315 22,439 93,900 139,134
Allocation to participating securities (150) (107) (437) (583)
Net income available to common stockholders - basic 30,165 22,332 93,463 138,551
Net income available to common stockholders - diluted $ 30,165 $ 22,332 $ 93,463 $ 138,551
EARNINGS PER COMMON SHARE - BASIC AND DILUTED:        
Net income available to common stockholders - basic (in dollars per share) $ 0.36 $ 0.30 $ 1.13 $ 1.84
Net income available to common stockholders - diluted (in dollars per share) $ 0.36 $ 0.30 $ 1.13 $ 1.84
BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in shares) 84,041,413 75,495,232 82,366,365 75,316,222
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in shares) 84,266,740 75,588,750 82,597,824 75,402,846
v3.23.3
Consolidated Statements of Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid- in Capital
Common Shares Held in Deferred Compensation Plan
Deferred Compensation Plan
 Retained (Deficit) Earnings
Beginning balance at Dec. 31, 2021 $ 2,057,963 $ 752 $ 2,069,604   $ (15,197) $ 2,804
Beginning balance (in shares) at Dec. 31, 2021   75,068,575        
Beginning balance (in shares) at Dec. 31, 2021       275,727    
Increase (Decrease) in Stockholders' Equity            
Net income 19,662         19,662
Issuance of common stock, net of issuance costs (in shares)   147,285        
Forfeiture of common stock related to employee awards (in shares)   (1,206)        
Common shares acquired related to employee awards (493)   (493)      
Common shares acquired related to employee awards (in shares)   (6,348)        
Issuance of restricted stock (in shares)   41,255        
Stock-based compensation 2,829   2,829      
Common stock dividends (25,680)         (25,680)
Deposits to deferred compensation plan     11,535   (11,535)  
Deposits to deferred compensation plan (in shares)   (147,285)   147,285    
Ending balance at Mar. 31, 2022 2,054,281 $ 752 2,083,475   (26,732) (3,214)
Ending Balance (in shares) at Mar. 31, 2022   75,102,276        
Ending balance (in shares) at Mar. 31, 2022       423,012    
Beginning balance at Dec. 31, 2021 2,057,963 $ 752 2,069,604   (15,197) 2,804
Beginning balance (in shares) at Dec. 31, 2021   75,068,575        
Beginning balance (in shares) at Dec. 31, 2021       275,727    
Increase (Decrease) in Stockholders' Equity            
Net income $ 139,134          
Issuance of common stock, net of issuance costs (in shares) 471,599          
Deposits to deferred compensation plan (in shares)       150,867    
Ending balance at Sep. 30, 2022 $ 2,152,093 $ 757 2,118,173   (26,982) 60,145
Ending Balance (in shares) at Sep. 30, 2022   75,640,135        
Ending balance (in shares) at Sep. 30, 2022       426,594    
Beginning balance at Mar. 31, 2022 2,054,281 $ 752 2,083,475   (26,732) (3,214)
Beginning balance (in shares) at Mar. 31, 2022   75,102,276        
Beginning balance (in shares) at Mar. 31, 2022       423,012    
Increase (Decrease) in Stockholders' Equity            
Net income 97,033         97,033
Issuance of common stock, net of issuance costs 1,947   1,947      
Issuance of common stock, net of issuance costs (in shares)   37,833        
Forfeiture of common stock related to employee awards (in shares)   (28,185)        
Issuance of restricted stock (in shares)   12,032        
Stock-based compensation 2,010   2,010      
Common stock dividends (25,686)         (25,686)
Deposits to deferred compensation plan     250   (250)  
Deposits to deferred compensation plan (in shares)   (3,582)   3,582    
Ending balance at Jun. 30, 2022 2,129,585 $ 752 2,087,682   (26,982) 68,133
Ending Balance (in shares) at Jun. 30, 2022   75,120,374        
Ending balance (in shares) at Jun. 30, 2022       426,594    
Increase (Decrease) in Stockholders' Equity            
Net income 22,439         22,439
Issuance of common stock, net of issuance costs $ 28,335 $ 5 28,330      
Issuance of common stock, net of issuance costs (in shares) 444,512 444,512        
Common shares acquired related to employee awards $ (518)   (518)      
Common shares acquired related to employee awards (in shares)   (8,367)        
Issuance of restricted stock (in shares)   83,616        
Stock-based compensation 2,679   2,679      
Common stock dividends (30,427)         (30,427)
Deposits to deferred compensation plan (in shares)       0    
Ending balance at Sep. 30, 2022 2,152,093 $ 757 2,118,173   (26,982) 60,145
Ending Balance (in shares) at Sep. 30, 2022   75,640,135        
Ending balance (in shares) at Sep. 30, 2022       426,594    
Beginning balance at Dec. 31, 2022 $ 2,229,851 $ 765 2,167,276   (26,462) 88,272
Beginning balance (in shares) at Dec. 31, 2022 76,463,482 76,463,482        
Beginning balance (in shares) at Dec. 31, 2022       417,665    
Increase (Decrease) in Stockholders' Equity            
Net income $ 23,331         23,331
Issuance of common stock, net of issuance costs 377,488 $ 62 377,426      
Issuance of common stock, net of issuance costs (in shares)   6,197,825        
Forfeiture of common stock related to employee awards (in shares)   (6,434)        
Common shares acquired related to employee awards (627)   (627)      
Common shares acquired related to employee awards (in shares)   (9,745)        
Issuance of restricted stock (in shares)   59,504        
Stock-based compensation 3,038   3,038      
Common stock dividends (33,209)         (33,209)
Deposits to deferred compensation plan     5,547   (5,547)  
Deposits to deferred compensation plan (in shares)   (94,794)   94,794    
Ending balance at Mar. 31, 2023 2,599,872 $ 827 2,552,660   (32,009) 78,394
Ending Balance (in shares) at Mar. 31, 2023   82,609,838        
Ending balance (in shares) at Mar. 31, 2023       512,459    
Beginning balance at Dec. 31, 2022 $ 2,229,851 $ 765 2,167,276   (26,462) 88,272
Beginning balance (in shares) at Dec. 31, 2022 76,463,482 76,463,482        
Beginning balance (in shares) at Dec. 31, 2022       417,665    
Increase (Decrease) in Stockholders' Equity            
Net income $ 93,900          
Deposits to deferred compensation plan (in shares)       96,874    
Ending balance at Sep. 30, 2023 $ 2,736,970 $ 850 2,691,181   (32,134) 77,073
Ending Balance (in shares) at Sep. 30, 2023 84,871,366 84,871,366        
Ending balance (in shares) at Sep. 30, 2023       514,539    
Beginning balance at Mar. 31, 2023 $ 2,599,872 $ 827 2,552,660   (32,009) 78,394
Beginning balance (in shares) at Mar. 31, 2023   82,609,838        
Beginning balance (in shares) at Mar. 31, 2023       512,459    
Increase (Decrease) in Stockholders' Equity            
Net income 40,254         40,254
Issuance of common stock, net of issuance costs 37,903 $ 6 37,897      
Issuance of common stock, net of issuance costs (in shares)   629,586        
Common shares acquired related to employee awards (105)   (105)      
Common shares acquired related to employee awards (in shares)   (1,167)        
Stock-based compensation 3,805   3,805      
Common stock dividends (33,465)         (33,465)
Deposits to deferred compensation plan     125   (125)  
Deposits to deferred compensation plan (in shares)   (2,080)   2,080    
Ending balance at Jun. 30, 2023 2,648,264 $ 833 2,594,382   (32,134) 85,183
Ending Balance (in shares) at Jun. 30, 2023   83,236,177        
Ending balance (in shares) at Jun. 30, 2023       514,539    
Increase (Decrease) in Stockholders' Equity            
Net income 30,315         30,315
Issuance of common stock, net of issuance costs 94,309 $ 17 94,292      
Issuance of common stock, net of issuance costs (in shares)   1,575,173        
Forfeiture of common stock related to employee awards (in shares)   (555)        
Common shares acquired related to employee awards (773)   (773)      
Common shares acquired related to employee awards (in shares)   (12,499)        
Issuance of restricted stock (in shares)   73,070        
Stock-based compensation 3,280   3,280      
Common stock dividends (38,425)         (38,425)
Deposits to deferred compensation plan (in shares)       0    
Ending balance at Sep. 30, 2023 $ 2,736,970 $ 850 $ 2,691,181   $ (32,134) $ 77,073
Ending Balance (in shares) at Sep. 30, 2023 84,871,366 84,871,366        
Ending balance (in shares) at Sep. 30, 2023       514,539    
v3.23.3
Consolidated Statements of Equity (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]            
Issuance costs $ 1,438 $ 822 $ 943 $ 548 $ 112 $ 0
Dividends per share, common stock (in dollars per share) $ 0.45 $ 0.40 $ 0.40 $ 0.40 $ 0.34 $ 0.34
v3.23.3
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 93,900 $ 139,134
Adjustments to reconcile net income to net cash provided by operating activities    
Straight-line rents (6,510) (7,326)
Amortization of lease intangibles (10,681) (10,807)
Depreciation and amortization 54,636 47,227
Gain on sales of real estate investments (12,257) (76,048)
Deferred financing cost amortization 1,157 988
Stock-based compensation 10,123 7,518
Changes in assets and liabilities    
Other assets (4,447) 543
Accounts payable and other liabilities 14,705 7,790
Net cash provided by operating activities 140,626 109,019
CASH FLOWS FROM INVESTING ACTIVITIES    
Cash paid for property acquisitions (392,503) (344,833)
Proceeds from sales of real estate investments, net 24,585 106,835
Additions to construction in progress (72,449) (24,978)
Additions to buildings, improvements and leasing costs (39,270) (50,827)
Net cash used in investing activities (479,637) (313,803)
CASH FLOWS FROM FINANCING ACTIVITIES    
Issuance of common stock 512,902 30,941
Issuance costs on issuance of common stock (2,740) (468)
Repurchase of common stock related to employee awards (1,505) (1,011)
Borrowings on credit facility 49,000 162,000
Payments on credit facility (49,000) (152,000)
Borrowings on term loans payable 0 100,000
Payments on senior unsecured notes 0 (50,000)
Payment of deferred financing costs (80) (1,498)
Dividends paid to common stockholders (97,427) (76,984)
Net cash provided by financing activities 411,150 10,980
Net increase (decrease) in cash and cash equivalents and restricted cash 72,139 (193,804)
Cash and cash equivalents and restricted cash at beginning of period 28,083 204,801
Cash and cash equivalents and restricted cash at end of period 100,222 10,997
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Cash paid for interest, net of capitalized interest 24,156 19,572
Supplemental disclosures of non-cash transactions    
Accounts payable related to capital improvements 29,441 22,861
Non-cash issuance of common stock to the deferred compensation plan (5,672) (11,785)
Reconciliation of cash paid for property acquisitions    
Acquisition of properties 436,980 360,818
Assumption of other assets and liabilities (44,477) (15,985)
Net cash paid for property acquisitions $ 392,503 $ 344,833
v3.23.3
Organization
 9 Months Ended
Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization Organization
Terreno Realty Corporation (“Terreno”, and together with its subsidiaries, the “Company”) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these condensed notes to the consolidated financial statements are unaudited. As of September 30, 2023, the Company owned 257 buildings aggregating approximately 15.8 million square feet, 46 improved land parcels (including one improved land parcel held for sale) consisting of approximately 165.8 acres, eight properties under development or redevelopment and approximately 62.7 acres of land entitled for future development.
The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2010.
v3.23.3
Significant Accounting Policies
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Significant Accounting Policies Significant Accounting Policies
Basis of Presentation. The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements. In management’s opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The interim consolidated financial statements include all of the Company’s accounts and its subsidiaries and all intercompany balances and transactions have been eliminated in consolidation. The financial statements should be read in conjunction with the financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and the notes thereto, which was filed with the Securities and Exchange Commission on February 8, 2023.
Use of Estimates. The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.
Capitalization of Costs. The Company capitalizes costs directly related to the redevelopment, renovation and expansion of its investment in real estate. Costs associated with such projects are capitalized as incurred. If the project is abandoned, these costs are expensed during the period in which the redevelopment, renovation or expansion project is abandoned. Costs considered for capitalization include, but are not limited to, construction costs, interest, real estate taxes and insurance, if appropriate. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress. In the event that the activities to ready the asset for its intended use are suspended, the capitalization period will cease until such activities are resumed. Costs incurred for maintaining and repairing properties, which do not extend their useful lives, are expensed as incurred.
Interest is capitalized based on actual capital expenditures from the period when redevelopment, renovation or expansion commences until the asset is ready for its intended use, at the weighted average borrowing rate during the period.
Investments in Real Estate. Investments in real estate, including tenant improvements, leasehold improvements and leasing costs, are stated at cost, less accumulated depreciation, unless circumstances indicate that the cost cannot be recovered, in which case, an adjustment to the carrying value of the property is made to reduce it to its estimated fair value. The Company also reviews the impact of above and below-market leases, in-place leases and lease origination costs for acquisitions and records an intangible asset or liability accordingly.
Impairment. Carrying values for financial reporting purposes are reviewed for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of a property may not be fully recoverable. Examples of such events or changes in circumstances may include classifying an asset to be held for sale, changing the intended hold period or when an asset remains vacant significantly longer than expected. The intended use of an asset either held for sale or held for use can significantly impact how impairment is measured. If an asset is intended to be held for the long-term, the recoverability is based on the undiscounted future cash flows. If the asset carrying value is not supported on an undiscounted
future cash flow basis, then the asset carrying value is measured against the lower of cost or the present value of expected cash flows over the expected hold period. An impairment charge to earnings is recognized for the excess of the asset’s carrying value over the lower of cost or the present values of expected cash flows over the expected hold period. If an asset is intended to be sold, impairment is determined using the estimated fair value less costs to sell. The estimation of expected future net cash flows is inherently uncertain and relies on assumptions, among other things, regarding current and future economic and market conditions and the availability of capital. The Company determines the estimated fair values based on its assumptions regarding rental rates, lease-up and holding periods, as well as sales prices. When available, current market information is used to determine capitalization and rental growth rates. If available, current comparative sales values may also be used to establish fair value. When market information is not readily available, the inputs are based on the Company’s understanding of market conditions and the experience of the Company’s management team. Actual results could differ significantly from the Company’s estimates. The discount rates used in the fair value estimates represent a rate commensurate with the indicated holding period with a premium layered on for risk. There were no impairment charges recorded to the carrying values of the Company’s properties during the three or nine months ended September 30, 2023 or 2022.
Property Acquisitions. In accordance with Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the integrated set of assets and activities is not considered a business. To be a business, the set of acquired activities and assets must include inputs and one or more substantive processes that together contribute to the ability to create outputs. The Company has determined that its real estate property acquisitions will generally be accounted for as asset acquisitions under the clarified definition. Upon acquisition of a property the Company estimates the fair value of acquired tangible assets (consisting generally of land, buildings and improvements) and intangible assets and liabilities (consisting generally of the above and below-market leases and the origination value of all in-place leases). The Company determines fair values using Level 3 inputs such as replacement cost, estimated cash flow projections and other valuation techniques and applying appropriate discount and capitalization rates based on available market information. Mortgage loans assumed in connection with acquisitions are recorded at their fair value using current market interest rates for similar debt at the date of acquisition. Acquisition-related costs associated with asset acquisitions are capitalized to individual tangible and intangible assets and liabilities assumed on a relative fair value basis and acquisition-related costs associated with business combinations are expensed as incurred.
The fair value of the tangible assets is determined by valuing the property as if it were vacant. Land values are derived from current comparative sales values, when available, or management’s estimates of the fair value based on market conditions and the experience of the Company’s management team. Building and improvement values are calculated as replacement cost less depreciation, or management’s estimates of the fair value of these assets using discounted cash flow analyses or similar methods. The fair value of the above and below-market leases is based on the present value of the difference between the contractual amounts to be received pursuant to the acquired leases (using a discount rate that reflects the risks associated with the acquired leases) and the Company’s estimate of the market lease rates measured over a period equal to the remaining term of the leases plus the term of any below-market fixed rate renewal options. The above and below-market lease values are amortized to rental revenues over the remaining initial term plus the term of any below-market fixed rate renewal options that are considered bargain renewal options of the respective leases. The total net impact to rental revenues due to the amortization of above and below-market leases was a net increase of approximately $3.5 million and $4.2 million for the three months ended September 30, 2023 and 2022, respectively, and approximately $10.7 million and $10.8 million for the nine months ended September 30, 2023 and 2022, respectively. The origination value of in-place leases is based on costs to execute similar leases, including commissions and other related costs. The origination value of in-place leases also includes real estate taxes, insurance and an estimate of lost rental revenue at market rates during the estimated time required to lease up the property from vacant to the occupancy level at the date of acquisition. The remaining weighted average lease term related to these intangible assets and liabilities as of September 30, 2023 was 6.8 years. As of September 30, 2023 and December 31, 2022, the Company’s intangible assets and liabilities, including properties held for sale (if any), consisted of the following (dollars in thousands):
 September 30, 2023December 31, 2022
 GrossAccumulated
Amortization		NetGrossAccumulated
Amortization		Net
In-place leases$135,912 $(91,827)$44,085 $119,959 $(83,222)$36,737 
Above-market leases3,586 (3,568)18 3,586 (3,558)28 
Below-market leases(136,238)49,057 (87,181)(95,638)39,765 (55,873)
Total$3,260 $(46,338)$(43,078)$27,907 $(47,015)$(19,108)
Depreciation and Useful Lives of Real Estate and Intangible Assets. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the related assets or liabilities. The following table reflects the standard depreciable lives typically used to compute depreciation and amortization. However, such depreciable lives may be different based on the estimated useful life of such assets or liabilities.
DescriptionStandard Depreciable Life
LandNot depreciated
Building40 years
Building Improvements
5-40 years
Tenant ImprovementsShorter of lease term or useful life
Leasing CostsLease term
In-place LeasesLease term
Above/Below-Market LeasesLease term
Held for Sale Assets. The Company considers a property to be held for sale when it meets the criteria established under Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment (See “Note 5 - Held for Sale/Disposed Assets”). Properties held for sale are reported at the lower of the carrying amount or fair value less estimated costs to sell and are not depreciated while they are held for sale.
Cash and Cash Equivalents. Cash and cash equivalents consists of cash held in a major banking institution and other highly liquid short-term investments with original maturities of three months or less. Cash equivalents are generally invested in U.S. government securities, government agency securities or money market accounts.
Restricted Cash. Restricted cash includes cash held in escrow in connection with property acquisitions and reserves for certain capital improvements, leasing, interest and real estate tax and insurance payments as required by certain mortgage loan obligations.
The following summarizes the reconciliation of cash and cash equivalents and restricted cash as presented in the accompanying consolidated statements of cash flows (dollars in thousands):
For the Nine Months Ended September 30,
20232022
Beginning
Cash and cash equivalents at beginning of period
$26,393 $204,404 
Restricted cash1,690 397 
Cash and cash equivalents and restricted cash28,083 204,801 
Ending
Cash and cash equivalents at end of period
96,196 10,153 
Restricted cash4,026 844 
Cash and cash equivalents and restricted cash100,222 10,997 
Net increase (decrease) in cash and cash equivalents and restricted cash$72,139 $(193,804)
Revenue Recognition. The Company records rental revenue from operating leases on a straight-line basis over the term of the leases and maintains an allowance for estimated losses that may result from the inability of its tenants to make required payments. If tenants fail to make contractual lease payments that are greater than the Company’s allowance for doubtful accounts, security deposits and letters of credit, then the Company may have to recognize additional doubtful account charges in future periods. The Company monitors the liquidity and creditworthiness of its tenants on an ongoing basis by reviewing their financial condition periodically as appropriate. Each period the Company reviews its outstanding accounts receivable, including straight-line rents, for doubtful accounts and provides allowances as needed. The Company also records lease termination fees when a tenant has executed a definitive termination agreement with the Company and the payment of the termination fee is not subject to any conditions that must be met or waived before the fee is due to the Company. If a tenant remains in the leased space following the execution of a definitive termination agreement, the applicable termination will be deferred and recognized over the term of such tenant’s occupancy. Tenant expense reimbursement income includes payments and amounts due from tenants pursuant to their leases for real estate taxes, insurance and other recoverable property operating expenses and is recognized as revenues during the same period the related expenses are incurred.
As of September 30, 2023 and December 31, 2022, approximately $53.6 million and $48.0 million, respectively, of straight-line rent and accounts receivable, net of allowances of approximately $0.9 million and $0.6 million as of September 30, 2023 and December 31, 2022, respectively, were included as a component of other assets in the accompanying consolidated balance sheets.
Deferred Financing Costs. Costs incurred in connection with financings are capitalized and amortized to interest expense using the effective interest method over the term of the related loan. Deferred financing costs associated with the Company’s revolving credit facility are classified as an asset, as a component of other assets in the accompanying consolidated balance sheets, and deferred financing costs associated with debt liabilities are reported as a direct deduction from the carrying amount of the debt liability in the accompanying consolidated balance sheets. Deferred financing costs related to the revolving credit facility and debt liabilities are carried at cost, net of accumulated amortization in the aggregate of approximately $13.1 million and $11.9 million as of September 30, 2023 and December 31, 2022, respectively.
Income Taxes. The Company elected to be taxed as a REIT under the Code and operates as such beginning with its taxable year ended December 31, 2010. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders. If it fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the IRS grants it relief under certain statutory provisions. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company believes it is organized and operates in such a manner as to qualify for treatment as a REIT.
ASC 740-10, Income Taxes (“ASC 740-10”), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740-10 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold are recorded as a tax expense in the current year. As of September 30, 2023 and December 31, 2022, the Company did not have any unrecognized tax benefits and does not believe that there will be any material changes in unrecognized tax positions over the next 12 months. The Company’s tax returns are subject to examination by federal, state and local tax jurisdictions, which as of September 30, 2023, include years 2019 to 2022 for federal purposes.
Stock-Based Compensation and Other Long-Term Incentive Compensation. The Company follows the provisions of ASC 718, Compensation-Stock Compensation, to account for its stock-based compensation plan, which requires that the compensation cost relating to stock-based payment transactions be recognized in the financial statements and that the cost be measured on the fair value of the equity or liability instruments issued. The Company’s 2019 Equity Incentive Plan (the “2019 Plan”) provides for the grant of restricted stock awards, performance share awards, unrestricted shares or any combination of the foregoing. Stock-based compensation is recognized as a general and administrative expense in the accompanying consolidated statements of operations and measured at the fair value of the award on the date of grant. The Company estimates the forfeiture rate based on historical experience as well as expected behavior. The amount of the expense may be subject to adjustment in future periods depending on the specific characteristics of the stock-based award.
In addition, the Company has awarded long-term incentive target awards (the “Performance Share awards”) under its Amended and Restated Long-Term Incentive Plan (as amended and restated, the “Amended LTIP”), which the Company amended and restated on January 8, 2019, to its executives that may be payable in shares of the Company’s common stock after the conclusion of each pre-established performance measurement period, which is generally three years. The amount that may be earned is variable depending on the relative total shareholder return of the Company’s common stock as compared to the total shareholder return of the MSCI U.S. REIT Index (RMS) and the FTSE Nareit Equity Industrial Index over the pre-established performance measurement period. Under the Amended LTIP, each participant’s Performance Share award granted will be expressed as a number of shares of common stock and settled in shares of common stock. The grant date fair value of the Performance Share awards will be determined using a Monte Carlo simulation model on the date of grant and recognized on a straight-line basis over the performance period.
Fair Value of Financial Instruments. ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) (See “Note 8 - Fair Value Measurements”), defines fair value 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. ASC 820 also provides guidance for using fair value to measure financial assets and liabilities. ASC 820 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).
Segment Disclosure. ASC 280, Segment Reporting, establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. The Company has determined that it has one reportable segment, with activities related to investing in real estate. The Company’s investments in real estate are geographically diversified and the chief operating decision makers evaluate operating performance on an individual asset level. As each of the Company’s assets has similar economic characteristics, the assets have been aggregated into one reportable segment.
v3.23.3
Concentration of Credit Risk
 9 Months Ended
Sep. 30, 2023
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk Concentration of Credit Risk
Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents. The Company may maintain deposits in federally insured financial institutions in excess of federally insured limits. However, the Company’s management believes the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held.
As of September 30, 2023, the Company owned 43 buildings aggregating approximately 2.6 million square feet and 13 improved land parcels consisting of approximately 68.0 acres located in Northern New Jersey/New York City, which accounted for a combined percentage of approximately 24.3% of its annualized base rent. Such annualized base rent is based on contractual monthly base rent per the leases, for all buildings and improved land parcels, excluding any partial or full rent abatements as of September 30, 2023, multiplied by 12.
Other real estate companies compete with the Company in its real estate markets. This results in competition for tenants to occupy space. The existence of competing properties could have a material impact on the Company’s ability to lease space and on the level of rent that can be achieved. The Company had no tenant that accounted for greater than 10% of the Company's annualized base rent as of September 30, 2023.
v3.23.3
Investments in Real Estate
 9 Months Ended
Sep. 30, 2023
Real Estate [Abstract]  
Investments in Real Estate Investments in Real Estate
During the three months ended September 30, 2023, the Company acquired one industrial property with a total initial investment, including acquisition costs, of approximately $16.5 million, of which $13.7 million was recorded to land and $2.8 million to intangible assets. Additionally, the Company assumed $2.1 million in liabilities. Upon acquisition, the property was placed into redevelopment with a total expected investment of approximately $40.6 million.
During the nine months ended September 30, 2023, the Company acquired five industrial properties with a total initial investment, including acquisition costs, of approximately $437.0 million, of which $267.4 million was recorded to land, $147.9 million to buildings and improvements, and $21.7 million to intangible assets. Additionally, the Company assumed $45.1 million in liabilities.
The Company recorded revenues and net income for the three months ended September 30, 2023 of approximately $4.4 million and $1.5 million, respectively, and recorded revenues and net income for the nine months ended September 30, 2023 of approximately $8.6 million and $2.7 million, respectively, related to the 2023 acquisitions.
During the three months ended September 30, 2022, the Company acquired four industrial properties with a total initial investment, including acquisition costs, of approximately $68.9 million, of which $62.1 million was recorded to land, $5.5 million to buildings and improvements, and $1.3 million to intangible assets. Additionally, the Company assumed $1.1 million in liabilities.
During the nine months ended September 30, 2022, the Company acquired 16 industrial properties with a total initial investment, including acquisition costs, of approximately $360.8 million, of which $261.6 million was recorded to land, $88.3 million to buildings and improvements, and $10.9 million to intangible assets. Additionally, the Company assumed $16.1 million in liabilities.
The Company recorded revenues and net income for the three months ended September 30, 2022 of approximately $4.1 million and $1.0 million, respectively, and recorded revenues and net income for the nine months ended September 30, 2022 of approximately $5.8 million and $1.7 million, respectively, related to the 2022 acquisitions.
The above assets and liabilities were recorded at fair value, which uses Level 3 inputs. The properties were acquired from unrelated third parties using existing cash on hand, proceeds from property sales, the issuance of common stock and borrowings on the revolving credit facility.
As of September 30, 2023, the Company had eight properties under development or redevelopment that, upon completion, will consist of seven buildings aggregating approximately 1.2 million square feet and one approximately 2.8 acre improved land parcel. Additionally, the Company owned approximately 62.7 acres of land entitled for future development that, upon completion, will consist of six buildings aggregating approximately 1.1 million square feet. The following table summarizes certain information with respect to the properties under development or redevelopment and the land entitled for future development as of September 30, 2023:
Property NameLocation
Total Expected
Investment
(in thousands) 1
Estimated Post-Development Square FeetEstimated Post-Development Acreage
Properties under development or redevelopment:
Countyline Phase IV
Countyline Building 38 2
Hialeah, FL$88,800 506,215— 
Countyline Building 39 2
Hialeah, FL42,632 178,201— 
Countyline Building 40 2
Hialeah, FL41,968 186,107— 
Countyline Building 41 2
Hialeah, FL41,400 190,907— 
Maple III
Rancho Dominguez, CA26,980 — 2.8 
147th Street
Hawthorne, CA18,095 31,378— 
East Garry Avenue
Santa Ana, CA40,553 91,500— 
Paterson Plank III
Carlstadt, NJ35,672 47,316— 
Total$336,100 1,231,6242.8 
Land entitled for future development:
Countyline Phase IV
Countyline Phase IV Land 2
Hialeah, FL295,700 1,137,121— 
Total$295,700 1,137,121— 
1Excludes below-market lease adjustments recorded at acquisition. Total expected investment for the properties includes the initial purchase price, buyer’s due diligence and closing costs, estimated near-term redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization.
2Collectively, “Countyline Phase IV”, a 121-acre project entitled for 2.2 million square feet of industrial distribution buildings located in Miami’s Countyline Corporate Park (“Countyline”), immediately adjacent to the Company’s seven buildings within Countyline. Countyline Phase IV, a landfill redevelopment adjacent to Florida’s Turnpike and the southern terminus of I-75, is expected to contain ten LEED-certified industrial distribution buildings at completion.
During the nine months ended September 30, 2023, the Company completed redevelopment of one improved land parcel consisting of approximately 6.3 acres. The following table summarizes certain information with respect to the completed redevelopment property as of September 30, 2023:
Property NameLocation
Total
Investment (in
thousands) 1
Post-Development Square FeetPost-Development AcreageCompletion Quarter
BerryessaSan Jose, CA$26,296 — 6.3 Q2 2023
1Total investment for the property includes the initial purchase price, buyer’s due diligence and closing costs, redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization.
The Company capitalized interest associated with development, redevelopment, renovation or expansion activities of approximately $2.6 million and $0.6 million during the three months ended September 30, 2023 and 2022, respectively, and approximately $5.5 million and $2.2 million during the nine months ended September 30, 2023 and 2022, respectively.
v3.23.3
Held for Sale/Disposed Assets
 9 Months Ended
Sep. 30, 2023
Held For Sale/Disposed Assets [Abstract]  
Held for Sale/Disposed Assets Held for Sale/Disposed Assets
As of September 30, 2023, the Company had entered into an agreement with a third-party purchaser to sell one property located in the Washington, D.C. market for a sales price of approximately $18.0 million (net book value of approximately $7.3 million). This property was sold on October 4, 2023.
During the nine months ended September 30, 2023, the Company sold one property located in the Northern New Jersey/New York City market for a sales price of approximately $25.5 million, resulting in a gain of approximately $12.3 million.
During the nine months ended September 30, 2022, the Company sold one property (consisting of 18 buildings) located in the Northern New Jersey/New York City market for a sales price of approximately $110.4 million, resulting in a gain of approximately $76.0 million.
v3.23.3
Debt
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Debt Debt
As of both September 30, 2023 and December 31, 2022, the Company had $775.0 million of unsecured debt and no secured debt. The following table summarizes the components of the Company’s indebtedness as of September 30, 2023 and December 31, 2022 (dollars in thousands):
September 30, 2023December 31, 2022Margin Above SOFR
Interest Rate 1
Contractual Maturity Date
Unsecured Debt:
Credit Facility$— $— 
1.1% 2
n/a8/20/2025
5-Year Term Loan
100,000 100,000 
1.3% 2
6.6 %1/15/2027
5-Year Term Loan
100,000 100,000 
1.3% 2
6.6 %1/15/2028
$100M 7-Year Unsecured 3
100,000 100,000 n/a3.8 %7/14/2024
$50M 10-Year Unsecured 3
50,000 50,000 n/a4.0 %7/7/2026
$50M 12-Year Unsecured 3
50,000 50,000 n/a4.7 %10/31/2027
$100M 7-Year Unsecured 3
100,000 100,000 n/a2.4 %7/15/2028
$100M 10-Year Unsecured 3
100,000 100,000 n/a3.1 %12/3/2029
$125M 9-Year Unsecured 3
125,000 125,000 n/a2.4 %8/17/2030
$50M 10-Year Unsecured 3
50,000 50,000 n/a2.8 %7/15/2031
Total Unsecured Debt775,000 775,000 
Less: Unamortized debt issuance costs(3,645)(4,182)
Total$771,355 $770,818 
1Reflects the contractual interest rate under the terms of each loan as of September 30, 2023. Excludes the effects of unamortized debt issuance costs.
2The interest rates on these loans are comprised of the Secured Overnight Financing Rate (“SOFR”) plus a SOFR margin. The SOFR margins will range from 1.10% to 1.55% (1.10% as of September 30, 2023) for the revolving credit facility and 1.25% to 1.75% (1.25% as of September 30, 2023) for the term loans, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value and includes a 10 basis points SOFR credit adjustment.
3Collectively, the “Senior Unsecured Notes”.

The Company’s Sixth Amended and Restated Senior Credit Agreement (as amended, the “Amended Facility”) consists of a $400.0 million revolving credit facility that matures in August 2025, a $100.0 million term loan that matures in January 2027 and a $100.0 million term loan that matures in January 2028. As of both September 30, 2023 and December 31, 2022, there were no borrowings outstanding on the revolving credit facility and $200.0 million of borrowings outstanding on the term loans.
The aggregate amount of the Amended Facility may be increased by up to an additional $500.0 million to a maximum amount not to exceed $1.1 billion, subject to the approval of the administrative agent and the identification of lenders willing to make available additional amounts. Outstanding borrowings under the Amended Facility are limited to the lesser of (i) the sum of the $400.0 million revolving credit facility, the $100.0 million term loan maturing in January 2027 and the $100.0 million term loan maturing in January 2028, or (ii) 60.0% of the value of the unencumbered properties. Interest on the Amended Facility, including the term loans, is generally to be paid based upon, at the Company’s option, either (i) SOFR plus the applicable SOFR margin or (ii) the applicable base rate, which is the greatest of the administrative agent’s prime rate, 0.50% above the federal funds effective rate, thirty-day SOFR plus the applicable SOFR margin for SOFR rate loans under the Amended Facility plus 1.25%, or 1.25% per annum. The applicable SOFR margin will range from 1.10% to 1.55% (1.10% as of September 30, 2023) for the revolving credit facility and 1.25% to 1.75% (1.25% as of September 30, 2023) for the term loans, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value and includes a 10 basis points SOFR credit adjustment. The Amended Facility requires quarterly payments of an annual facility fee in an amount ranging from 0.15% to 0.30%, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value.
The Amended Facility and the Senior Unsecured Notes are guaranteed by the Company and by substantially all of the current and to-be-formed subsidiaries of the Company that own an unencumbered property. The Amended Facility and the Senior Unsecured Notes are not secured by the Company’s properties or by interests in the subsidiaries that hold such properties. The Amended Facility and the Senior Unsecured Notes include a series of financial and other covenants with which the Company must comply. The Company was in compliance with the covenants under the Amended Facility and the Senior Unsecured Notes as of September 30, 2023 and December 31, 2022.
The scheduled principal payments of the Company’s debt as of September 30, 2023 were as follows (dollars in thousands):
Credit
Facility		Term LoanSenior
Unsecured
Notes		Total Debt
2023 (3 months)$—$—$—

$—
2024——100,000100,000
2025————
2026——50,00050,000
2027—100,00050,000150,000
Thereafter—100,000375,000475,000
Total debt—200,000575,000775,000
Deferred financing costs, net—(914)(2,731)(3,645)
Total debt, net$—$199,086$572,269$771,355
Weighted average interest raten/a6.6 %3.1 %4.0 %
v3.23.3
Leasing
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leasing LeasingThe following is a schedule of minimum future cash rentals on tenant operating leases in effect as of September 30, 2023. The schedule does not reflect future rental revenues from the renewal or replacement of existing leases and excludes property operating expense reimbursements (dollars in thousands):
2023 (3 months)$60,005 
2024241,049 
2025224,558 
2026190,944 
2027144,295 
Thereafter342,267 
Total$1,203,118 
v3.23.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
ASC 820 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).
Financial Instruments Disclosed at Fair Value
As of September 30, 2023 and December 31, 2022, the fair values of cash and cash equivalents, accounts receivable and accounts payable approximated their carrying values because of the short-term nature of these investments or liabilities based on Level 1 inputs. The fair values of the Company’s Senior Unsecured Notes were estimated by calculating the present value of principal and interest payments, based on borrowing rates available to the Company, which are Level 2 inputs, adjusted with a credit spread, as applicable, and assuming the loans are outstanding through maturity. The fair value of the Company’s Amended Facility approximated its carrying value because the variable interest rates approximate market borrowing rates available to the Company, which are Level 2 inputs.
The following table sets forth the carrying value and the estimated fair value of the Company’s debt as of September 30, 2023 and December 31, 2022 (dollars in thousands):
 Fair Value Measurement Using 
Total Fair ValueQuoted Price in
Active Markets
for Identical
Assets and
Liabilities
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Carrying Value
Liabilities
Debt at:
September 30, 2023$695,712 $— $695,712 $— $771,355 
December 31, 2022$700,926 $— $700,926 $— $770,818 
v3.23.3
Stockholders' Equity
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
The Company’s authorized capital stock consists of 400,000,000 shares of common stock, $0.01 par value per share, and 100,000,000 shares of preferred stock, $0.01 par value per share. The Company has an at-the-market equity offering program (the "$500 Million ATM Program") pursuant to which the Company may issue and sell shares of its common stock having an aggregate offering price of up to $500.0 million ($464.3 million remaining as of September 30, 2023) in amounts and at times to be determined by the Company from time to time. Prior to the implementation of the $500 Million ATM Program, the Company had a previous at-the-market equity offering program (the "$300 Million ATM Program"), which was substantially utilized as of September 5, 2023 and is no longer active. Actual sales under the $500 Million ATM Program, if any, will depend on a variety of factors to be determined by the Company from time to time, including, among others, market conditions, the trading price of the Company’s common stock, determinations by the Company of the appropriate sources of funding for the Company and potential uses of funding available to the Company. During the three and nine months ended September 30, 2023, the Company issued an aggregate of 1,575,173 and 2,542,279 shares, respectively, of common stock at a weighted average offering price of $60.78 and $61.61 per share, respectively, under the $300 Million ATM Program and the $500 Million ATM Program, resulting in net proceeds of approximately $94.4 million and $154.4 million, respectively, and paying total compensation to the applicable sales agents of approximately $1.4 million and $2.3 million, respectively. During the three and nine months ended September 30, 2022, the Company issued an aggregate of 444,512 and 471,599 shares, respectively, of common stock at a weighted average offering price of $64.97 and $65.61 per share, respectively, under the $300 Million ATM Program, resulting in net proceeds of approximately $28.5 million and $30.5 million, respectively, and paying total compensation to the applicable sales agents of approximately $0.4 million and $0.4 million, respectively.
On February 13, 2023, the Company completed a public offering of 5,750,000 shares of common stock at a price per share of $62.50, which included the underwriters’ full exercise of their option to purchase an additional 750,000 shares. The net proceeds of the offering were approximately $355.9 million after deducting the underwriting discount and offering costs of approximately $3.5 million. The Company used the net proceeds for acquisitions.
The Company has a share repurchase program authorizing the Company to repurchase up to 3,000,000 shares of its outstanding common stock from time to time through December 31, 2024. Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions as permitted by federal securities laws and other legal requirements. The
timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The program may be suspended or discontinued at any time. As of September 30, 2023, the Company had not repurchased any shares of common stock pursuant to its share repurchase program.
In connection with the Annual Meeting of Stockholders on May 2, 2023, the Company granted a total of 12,480 unrestricted shares of the Company's common stock to its independent directors under the 2019 Plan with a grant date fair value per share of $60.10. The grant date fair value of the common stock was determined using the closing price of the Company’s common stock on the date of the grant. The Company recognized approximately $0.8 million in compensation costs for both the three and nine months ended September 30, 2023 related to this issuance.
The Company has a Non-Qualified Deferred Compensation Plan (the “Deferred Compensation Plan”) maintained for the benefit of select employees and members of the Company’s Board of Directors, in which certain of their cash and equity-based compensation may be deposited. Deferred Compensation Plan assets are held in a rabbi trust, which is subject to the claims of the Company’s creditors in the event of bankruptcy or insolvency. The shares held in the Deferred Compensation Plan are classified within stockholders’ equity in a manner similar to the manner in which treasury stock is classified. Subsequent changes in the fair value of the shares are not recognized. During both the three months ended September 30, 2023 and 2022, no shares of common stock were deposited into the Deferred Compensation Plan and during the nine months ended September 30, 2023 and 2022, 96,874 and 150,867 shares of common stock, respectively, were deposited into the Deferred Compensation Plan. During each of the three and nine months ended September 30, 2023 and 2022, no shares of common stock were withdrawn from the Deferred Compensation Plan.
As of September 30, 2023, there were 1,898,961 shares of common stock authorized for issuance as restricted stock grants, unrestricted stock awards or Performance Share awards under the 2019 Plan, of which 500,490 were remaining and available for issuance. The grant date fair value per share of restricted stock awards issued during the period from February 16, 2010 (commencement of operations) to September 30, 2023 ranged from $14.20 to $78.33. The fair value of the restricted stock that was granted during the nine months ended September 30, 2023 was approximately $8.2 million and the vesting period for the restricted stock is typically between one and five years. As of September 30, 2023, the Company had approximately $16.3 million of total unrecognized compensation costs related to restricted stock issuances, which is expected to be recognized over a remaining weighted average period of approximately 3.2 years. The Company recognized compensation costs of approximately $1.6 million and $4.6 million for the three and nine months ended September 30, 2023, respectively, and approximately $1.4 million and $3.6 million for the three and nine months ended September 30, 2022, respectively, related to the restricted stock issuances.
The following is a summary of the total restricted shares granted to the Company’s executive officers and employees with the related weighted average grant date fair value share prices for the nine months ended September 30, 2023:
Restricted Stock Activity:
SharesWeighted Average Grant
Date Fair Value
Non-vested shares outstanding as of December 31, 2022356,632 $59.58 
Granted132,574 61.58 
Forfeited(6,989)66.95 
Vested(62,717)53.50 
Non-vested shares outstanding as of September 30, 2023419,500 $61.00 
The following is a vesting schedule of the total non-vested shares of restricted stock outstanding as of September 30, 2023:
Non-vested Shares Vesting ScheduleNumber of Shares
2023 (3 months)448 
2024116,167 
202584,052 
202662,146 
2027156,687 
Thereafter— 
Total Non-vested Shares419,500 
Long-Term Incentive Plan:
As of September 30, 2023, there were three open performance measurement periods for the Performance Share awards: January 1, 2021 to December 31, 2023, January 1, 2022 to December 31, 2024, and January 1, 2023 to December 31, 2025. During the nine months ended September 30, 2023, the Company issued 97,825 shares of common stock at a price of $58.56 per share related to the Performance Share awards for the performance period from January 1, 2020 to December 31, 2022.
The following table summarizes certain information with respect to the Performance Share awards granted on or after January 1, 2019 and includes the forfeiture of certain of the Performance Share awards during 2022 (dollars in thousands):
Performance Share Period
Fair Value on Date of Grant 1
Expense for the Three Months Ended September 30,
Expense for the Nine Months Ended September 30,
2023202220232022
January 1, 2020 - December 31, 2022$4,882 $— $407 $— $761 
January 1, 2021 - December 31, 20234,820 402 402 1,206 991 
January 1, 2022 - December 31, 20245,789 482 482 1,446 1,447 
January 1, 2023 - December 31, 20259,040 753 — 2,259 — 
Total$24,531 $1,637 $1,291 $4,911 $3,199 
1     Reflects the fair value on date of grant for all performance shares outstanding at September 30, 2023.
Dividends:
The following table sets forth the cash dividends paid or payable per share during the nine months ended September 30, 2023:
For the Three Months EndedSecurityDividend per ShareDeclaration DateRecord DateDate Paid
March 31, 2023Common stock$0.40 February 7, 2023March 31, 2023April 6, 2023
June 30, 2023Common Stock$0.40 May 2, 2023June 30, 2023July 14, 2023
September 30, 2023Common Stock$0.45 August 1, 2023September 29, 2023October 13, 2023
v3.23.3
Net Income (Loss) Per Share
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Net Income (Loss) Per Share
Pursuant to ASC 260-10-45, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities, unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The two-class method of computing earnings per share allocates earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. The Company’s non-vested shares of restricted stock are considered participating securities since these share-based awards contain non-forfeitable rights to dividends irrespective of whether the awards ultimately vest or expire. The Company had no antidilutive securities or dilutive restricted stock awards outstanding for the three and nine months ended September 30, 2023 and 2022.
In accordance with the Company’s policies of determining whether instruments granted in share-based payment transactions are participating securities and accounting for earnings per share, the net income (loss) per common share is adjusted for earnings distributed through declared dividends (if any) and allocated to all participating securities (weighted average common shares outstanding and unvested restricted shares outstanding) under the two-class method. Under this method, allocations were made to 404,010 and 335,038 of weighted average unvested restricted shares outstanding for the three months ended September 30, 2023 and 2022, respectively, and 384,239 and 311,432 of weighted average unvested restricted shares outstanding for the nine months ended September 30, 2023 and 2022, respectively.
Performance Share awards which may be payable in shares of the Company’s common stock after the conclusion of each pre-established performance measurement period are included as contingently issuable shares in the calculation of diluted weighted average common shares of stock outstanding assuming the reporting period is the end of the measurement period, and the effect is dilutive. Diluted shares related to the Performance Share awards were 225,327 and 93,518 for the three months ended September 30, 2023 and 2022, respectively, and 231,459 and 86,624 for the nine months ended September 30, 2023 and 2022, respectively.
v3.23.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and ContingenciesContractual Commitments. As of October 31, 2023, the Company had two outstanding contracts with third-party sellers to acquire two industrial properties for a total purchase price of approximately $9.6 million. There is no assurance that the Company will acquire the properties under contract because the proposed acquisitions are subject to due diligence and various closing conditions.
v3.23.3
Subsequent Events
 9 Months Ended
Sep. 30, 2023
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
On October 4, 2023, the Company sold one industrial property in Hanover, MD, for a total sales price of approximately $18.0 million (net book value of approximately $7.3 million). The property was held for sale as of September 30, 2023.
On October 10, 2023, the Company acquired one industrial property in Redondo Beach, CA, for a total purchase price of approximately $45.7 million. The property was acquired from an unrelated third party using existing cash on hand.
On October 11, 2023, the Company acquired one industrial property in Brooklyn, NY, for a total purchase price of approximately $27.5 million. The property was acquired from an unrelated third party using existing cash on hand and proceeds from dispositions.
On October 31, 2023, the Company’s board of directors declared a cash dividend in the amount of $0.45 per share of its common stock payable on January 5, 2024 to the stockholders of record as of the close of business on December 15, 2023.
v3.23.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Sep. 30, 2023
Sep. 30, 2022
Pay vs Performance Disclosure                
Net (loss) income $ 30,315 $ 40,254 $ 23,331 $ 22,439 $ 97,033 $ 19,662 $ 93,900 $ 139,134
v3.23.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.23.3
Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Basis of Presentation Basis of Presentation. The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements. In management’s opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The interim consolidated financial statements include all of the Company’s accounts and its subsidiaries and all intercompany balances and transactions have been eliminated in consolidation. The financial statements should be read in conjunction with the financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and the notes thereto, which was filed with the Securities and Exchange Commission on February 8, 2023.
Use of Estimates Use of Estimates. The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.
Capitalization of Costs
Capitalization of Costs. The Company capitalizes costs directly related to the redevelopment, renovation and expansion of its investment in real estate. Costs associated with such projects are capitalized as incurred. If the project is abandoned, these costs are expensed during the period in which the redevelopment, renovation or expansion project is abandoned. Costs considered for capitalization include, but are not limited to, construction costs, interest, real estate taxes and insurance, if appropriate. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress. In the event that the activities to ready the asset for its intended use are suspended, the capitalization period will cease until such activities are resumed. Costs incurred for maintaining and repairing properties, which do not extend their useful lives, are expensed as incurred.
Interest is capitalized based on actual capital expenditures from the period when redevelopment, renovation or expansion commences until the asset is ready for its intended use, at the weighted average borrowing rate during the period.
Investments in Real Estate Investments in Real Estate. Investments in real estate, including tenant improvements, leasehold improvements and leasing costs, are stated at cost, less accumulated depreciation, unless circumstances indicate that the cost cannot be recovered, in which case, an adjustment to the carrying value of the property is made to reduce it to its estimated fair value. The Company also reviews the impact of above and below-market leases, in-place leases and lease origination costs for acquisitions and records an intangible asset or liability accordingly.
Impairment Impairment. Carrying values for financial reporting purposes are reviewed for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of a property may not be fully recoverable. Examples of such events or changes in circumstances may include classifying an asset to be held for sale, changing the intended hold period or when an asset remains vacant significantly longer than expected. The intended use of an asset either held for sale or held for use can significantly impact how impairment is measured. If an asset is intended to be held for the long-term, the recoverability is based on the undiscounted future cash flows. If the asset carrying value is not supported on an undiscounted future cash flow basis, then the asset carrying value is measured against the lower of cost or the present value of expected cash flows over the expected hold period. An impairment charge to earnings is recognized for the excess of the asset’s carrying value over the lower of cost or the present values of expected cash flows over the expected hold period. If an asset is intended to be sold, impairment is determined using the estimated fair value less costs to sell. The estimation of expected future net cash flows is inherently uncertain and relies on assumptions, among other things, regarding current and future economic and market conditions and the availability of capital. The Company determines the estimated fair values based on its assumptions regarding rental rates, lease-up and holding periods, as well as sales prices. When available, current market information is used to determine capitalization and rental growth rates. If available, current comparative sales values may also be used to establish fair value. When market information is not readily available, the inputs are based on the Company’s understanding of market conditions and the experience of the Company’s management team. Actual results could differ significantly from the Company’s estimates. The discount rates used in the fair value estimates represent a rate commensurate with the indicated holding period with a premium layered on for risk.
Property Acquisitions Property Acquisitions. In accordance with Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the integrated set of assets and activities is not considered a business. To be a business, the set of acquired activities and assets must include inputs and one or more substantive processes that together contribute to the ability to create outputs. The Company has determined that its real estate property acquisitions will generally be accounted for as asset acquisitions under the clarified definition. Upon acquisition of a property the Company estimates the fair value of acquired tangible assets (consisting generally of land, buildings and improvements) and intangible assets and liabilities (consisting generally of the above and below-market leases and the origination value of all in-place leases). The Company determines fair values using Level 3 inputs such as replacement cost, estimated cash flow projections and other valuation techniques and applying appropriate discount and capitalization rates based on available market information. Mortgage loans assumed in connection with acquisitions are recorded at their fair value using current market interest rates for similar debt at the date of acquisition. Acquisition-related costs associated with asset acquisitions are capitalized to individual tangible and intangible assets and liabilities assumed on a relative fair value basis and acquisition-related costs associated with business combinations are expensed as incurred.The fair value of the tangible assets is determined by valuing the property as if it were vacant. Land values are derived from current comparative sales values, when available, or management’s estimates of the fair value based on market conditions and the experience of the Company’s management team. Building and improvement values are calculated as replacement cost less depreciation, or management’s estimates of the fair value of these assets using discounted cash flow analyses or similar methods. The fair value of the above and below-market leases is based on the present value of the difference between the contractual amounts to be received pursuant to the acquired leases (using a discount rate that reflects the risks associated with the acquired leases) and the Company’s estimate of the market lease rates measured over a period equal to the remaining term of the leases plus the term of any below-market fixed rate renewal options. The above and below-market lease values are amortized to rental revenues over the remaining initial term plus the term of any below-market fixed rate renewal options that are considered bargain renewal options of the respective leases.
Depreciation and Useful Lives of Real Estate and Intangible Assets Depreciation and Useful Lives of Real Estate and Intangible Assets. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the related assets or liabilities. The following table reflects the standard depreciable lives typically used to compute depreciation and amortization. However, such depreciable lives may be different based on the estimated useful life of such assets or liabilities.
DescriptionStandard Depreciable Life
LandNot depreciated
Building40 years
Building Improvements
5-40 years
Tenant ImprovementsShorter of lease term or useful life
Leasing CostsLease term
In-place LeasesLease term
Above/Below-Market LeasesLease term
Held for Sale Assets Held for Sale Assets. The Company considers a property to be held for sale when it meets the criteria established under Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment (See “Note 5 - Held for Sale/Disposed Assets”). Properties held for sale are reported at the lower of the carrying amount or fair value less estimated costs to sell and are not depreciated while they are held for sale.
Cash and Cash Equivalents Cash and Cash Equivalents. Cash and cash equivalents consists of cash held in a major banking institution and other highly liquid short-term investments with original maturities of three months or less. Cash equivalents are generally invested in U.S. government securities, government agency securities or money market accounts.
Restricted Cash Restricted Cash. Restricted cash includes cash held in escrow in connection with property acquisitions and reserves for certain capital improvements, leasing, interest and real estate tax and insurance payments as required by certain mortgage loan obligations.
Revenue Recognition Revenue Recognition. The Company records rental revenue from operating leases on a straight-line basis over the term of the leases and maintains an allowance for estimated losses that may result from the inability of its tenants to make required payments. If tenants fail to make contractual lease payments that are greater than the Company’s allowance for doubtful accounts, security deposits and letters of credit, then the Company may have to recognize additional doubtful account charges in future periods. The Company monitors the liquidity and creditworthiness of its tenants on an ongoing basis by reviewing their financial condition periodically as appropriate. Each period the Company reviews its outstanding accounts receivable, including straight-line rents, for doubtful accounts and provides allowances as needed. The Company also records lease termination fees when a tenant has executed a definitive termination agreement with the Company and the payment of the termination fee is not subject to any conditions that must be met or waived before the fee is due to the Company. If a tenant remains in the leased space following the execution of a definitive termination agreement, the applicable termination will be deferred and recognized over the term of such tenant’s occupancy. Tenant expense reimbursement income includes payments and amounts due from tenants pursuant to their leases for real estate taxes, insurance and other recoverable property operating expenses and is recognized as revenues during the same period the related expenses are incurred.
Deferred Financing Costs Deferred Financing Costs. Costs incurred in connection with financings are capitalized and amortized to interest expense using the effective interest method over the term of the related loan. Deferred financing costs associated with the Company’s revolving credit facility are classified as an asset, as a component of other assets in the accompanying consolidated balance sheets, and deferred financing costs associated with debt liabilities are reported as a direct deduction from the carrying amount of the debt liability in the accompanying consolidated balance sheets. Deferred financing costs related to the revolving credit facility and debt liabilities are carried at cost, net of accumulated amortization
Income Taxes Income Taxes. The Company elected to be taxed as a REIT under the Code and operates as such beginning with its taxable year ended December 31, 2010. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders. If it fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the IRS grants it relief under certain statutory provisions. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company believes it is organized and operates in such a manner as to qualify for treatment as a REIT.ASC 740-10, Income Taxes (“ASC 740-10”), provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740-10 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold are recorded as a tax expense in the current year. As of September 30, 2023 and December 31, 2022, the Company did not have any unrecognized tax benefits and does not believe that there will be any material changes in unrecognized tax positions over the next 12 months. The Company’s tax returns are subject to examination by federal, state and local tax jurisdictions, which as of September 30, 2023, include years 2019 to 2022 for federal purposes.
Stock-Based Compensation and Other Long-Term Incentive Compensation Stock-Based Compensation and Other Long-Term Incentive Compensation. The Company follows the provisions of ASC 718, Compensation-Stock Compensation, to account for its stock-based compensation plan, which requires that the compensation cost relating to stock-based payment transactions be recognized in the financial statements and that the cost be measured on the fair value of the equity or liability instruments issued. The Company’s 2019 Equity Incentive Plan (the “2019 Plan”) provides for the grant of restricted stock awards, performance share awards, unrestricted shares or any combination of the foregoing. Stock-based compensation is recognized as a general and administrative expense in the accompanying consolidated statements of operations and measured at the fair value of the award on the date of grant. The Company estimates the forfeiture rate based on historical experience as well as expected behavior. The amount of the expense may be subject to adjustment in future periods depending on the specific characteristics of the stock-based award.In addition, the Company has awarded long-term incentive target awards (the “Performance Share awards”) under its Amended and Restated Long-Term Incentive Plan (as amended and restated, the “Amended LTIP”), which the Company amended and restated on January 8, 2019, to its executives that may be payable in shares of the Company’s common stock after the conclusion of each pre-established performance measurement period, which is generally three years. The amount that may be earned is variable depending on the relative total shareholder return of the Company’s common stock as compared to the total shareholder return of the MSCI U.S. REIT Index (RMS) and the FTSE Nareit Equity Industrial Index over the pre-established performance measurement period. Under the Amended LTIP, each participant’s Performance Share award granted will be expressed as a number of shares of common stock and settled in shares of common stock. The grant date fair value of the Performance Share awards will be determined using a Monte Carlo simulation model on the date of grant and recognized on a straight-line basis over the performance period.
Fair Value of Financial Instruments Fair Value of Financial Instruments. ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) (See “Note 8 - Fair Value Measurements”), defines fair value 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. ASC 820 also provides guidance for using fair value to measure financial assets and liabilities. ASC 820 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).
Segment Disclosure Segment Disclosure. ASC 280, Segment Reporting, establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. The Company has determined that it has one reportable segment, with activities related to investing in real estate. The Company’s investments in real estate are geographically diversified and the chief operating decision makers evaluate operating performance on an individual asset level. As each of the Company’s assets has similar economic characteristics, the assets have been aggregated into one reportable segment.
v3.23.3
Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Schedule of intangible assets and liabilities As of September 30, 2023 and December 31, 2022, the Company’s intangible assets and liabilities, including properties held for sale (if any), consisted of the following (dollars in thousands):
 September 30, 2023December 31, 2022
 GrossAccumulated
Amortization		NetGrossAccumulated
Amortization		Net
In-place leases$135,912 $(91,827)$44,085 $119,959 $(83,222)$36,737 
Above-market leases3,586 (3,568)18 3,586 (3,558)28 
Below-market leases(136,238)49,057 (87,181)(95,638)39,765 (55,873)
Total$3,260 $(46,338)$(43,078)$27,907 $(47,015)$(19,108)
Schedule of depreciation and useful lives of real estate and intangible assets The following table reflects the standard depreciable lives typically used to compute depreciation and amortization. However, such depreciable lives may be different based on the estimated useful life of such assets or liabilities.
DescriptionStandard Depreciable Life
LandNot depreciated
Building40 years
Building Improvements
5-40 years
Tenant ImprovementsShorter of lease term or useful life
Leasing CostsLease term
In-place LeasesLease term
Above/Below-Market LeasesLease term
Schedule of cash and cash equivalents and restricted cash The following summarizes the reconciliation of cash and cash equivalents and restricted cash as presented in the accompanying consolidated statements of cash flows (dollars in thousands):
For the Nine Months Ended September 30,
20232022
Beginning
Cash and cash equivalents at beginning of period
$26,393 $204,404 
Restricted cash1,690 397 
Cash and cash equivalents and restricted cash28,083 204,801 
Ending
Cash and cash equivalents at end of period
96,196 10,153 
Restricted cash4,026 844 
Cash and cash equivalents and restricted cash100,222 10,997 
Net increase (decrease) in cash and cash equivalents and restricted cash$72,139 $(193,804)
Schedule of cash and cash equivalents and restricted cash The following summarizes the reconciliation of cash and cash equivalents and restricted cash as presented in the accompanying consolidated statements of cash flows (dollars in thousands):
For the Nine Months Ended September 30,
20232022
Beginning
Cash and cash equivalents at beginning of period
$26,393 $204,404 
Restricted cash1,690 397 
Cash and cash equivalents and restricted cash28,083 204,801 
Ending
Cash and cash equivalents at end of period
96,196 10,153 
Restricted cash4,026 844 
Cash and cash equivalents and restricted cash100,222 10,997 
Net increase (decrease) in cash and cash equivalents and restricted cash$72,139 $(193,804)
v3.23.3
Investments in Real Estate (Tables)
 9 Months Ended
Sep. 30, 2023
Real Estate [Abstract]  
Schedule of properties under and completed redevelopment The following table summarizes certain information with respect to the properties under development or redevelopment and the land entitled for future development as of September 30, 2023:
Property NameLocation
Total Expected
Investment
(in thousands) 1
Estimated Post-Development Square FeetEstimated Post-Development Acreage
Properties under development or redevelopment:
Countyline Phase IV
Countyline Building 38 2
Hialeah, FL$88,800 506,215— 
Countyline Building 39 2
Hialeah, FL42,632 178,201— 
Countyline Building 40 2
Hialeah, FL41,968 186,107— 
Countyline Building 41 2
Hialeah, FL41,400 190,907— 
Maple III
Rancho Dominguez, CA26,980 — 2.8 
147th Street
Hawthorne, CA18,095 31,378— 
East Garry Avenue
Santa Ana, CA40,553 91,500— 
Paterson Plank III
Carlstadt, NJ35,672 47,316— 
Total$336,100 1,231,6242.8 
Land entitled for future development:
Countyline Phase IV
Countyline Phase IV Land 2
Hialeah, FL295,700 1,137,121— 
Total$295,700 1,137,121— 
1Excludes below-market lease adjustments recorded at acquisition. Total expected investment for the properties includes the initial purchase price, buyer’s due diligence and closing costs, estimated near-term redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization.
2Collectively, “Countyline Phase IV”, a 121-acre project entitled for 2.2 million square feet of industrial distribution buildings located in Miami’s Countyline Corporate Park (“Countyline”), immediately adjacent to the Company’s seven buildings within Countyline. Countyline Phase IV, a landfill redevelopment adjacent to Florida’s Turnpike and the southern terminus of I-75, is expected to contain ten LEED-certified industrial distribution buildings at completion.
The following table summarizes certain information with respect to the completed redevelopment property as of September 30, 2023:
Property NameLocation
Total
Investment (in
thousands) 1
Post-Development Square FeetPost-Development AcreageCompletion Quarter
BerryessaSan Jose, CA$26,296 — 6.3 Q2 2023
1Total investment for the property includes the initial purchase price, buyer’s due diligence and closing costs, redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization.
v3.23.3
Debt (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Schedule of debt outstanding The following table summarizes the components of the Company’s indebtedness as of September 30, 2023 and December 31, 2022 (dollars in thousands):
September 30, 2023December 31, 2022Margin Above SOFR
Interest Rate 1
Contractual Maturity Date
Unsecured Debt:
Credit Facility$— $— 
1.1% 2
n/a8/20/2025
5-Year Term Loan
100,000 100,000 
1.3% 2
6.6 %1/15/2027
5-Year Term Loan
100,000 100,000 
1.3% 2
6.6 %1/15/2028
$100M 7-Year Unsecured 3
100,000 100,000 n/a3.8 %7/14/2024
$50M 10-Year Unsecured 3
50,000 50,000 n/a4.0 %7/7/2026
$50M 12-Year Unsecured 3
50,000 50,000 n/a4.7 %10/31/2027
$100M 7-Year Unsecured 3
100,000 100,000 n/a2.4 %7/15/2028
$100M 10-Year Unsecured 3
100,000 100,000 n/a3.1 %12/3/2029
$125M 9-Year Unsecured 3
125,000 125,000 n/a2.4 %8/17/2030
$50M 10-Year Unsecured 3
50,000 50,000 n/a2.8 %7/15/2031
Total Unsecured Debt775,000 775,000 
Less: Unamortized debt issuance costs(3,645)(4,182)
Total$771,355 $770,818 
1Reflects the contractual interest rate under the terms of each loan as of September 30, 2023. Excludes the effects of unamortized debt issuance costs.
2The interest rates on these loans are comprised of the Secured Overnight Financing Rate (“SOFR”) plus a SOFR margin. The SOFR margins will range from 1.10% to 1.55% (1.10% as of September 30, 2023) for the revolving credit facility and 1.25% to 1.75% (1.25% as of September 30, 2023) for the term loans, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value and includes a 10 basis points SOFR credit adjustment.
3Collectively, the “Senior Unsecured Notes”.
Schedule of principal payments The scheduled principal payments of the Company’s debt as of September 30, 2023 were as follows (dollars in thousands):
Credit
Facility		Term LoanSenior
Unsecured
Notes		Total Debt
2023 (3 months)$—$—$—

$—
2024——100,000100,000
2025————
2026——50,00050,000
2027—100,00050,000150,000
Thereafter—100,000375,000475,000
Total debt—200,000575,000775,000
Deferred financing costs, net—(914)(2,731)(3,645)
Total debt, net$—$199,086$572,269$771,355
Weighted average interest raten/a6.6 %3.1 %4.0 %
v3.23.3
Leasing (Tables)
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Schedule of minimum future cash rentals on tenant operating leases The following is a schedule of minimum future cash rentals on tenant operating leases in effect as of September 30, 2023. The schedule does not reflect future rental revenues from the renewal or replacement of existing leases and excludes property operating expense reimbursements (dollars in thousands):
2023 (3 months)$60,005 
2024241,049 
2025224,558 
2026190,944 
2027144,295 
Thereafter342,267 
Total$1,203,118 
v3.23.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of carrying value and fair value of senior secured loan and debt The following table sets forth the carrying value and the estimated fair value of the Company’s debt as of September 30, 2023 and December 31, 2022 (dollars in thousands):
 Fair Value Measurement Using 
Total Fair ValueQuoted Price in
Active Markets
for Identical
Assets and
Liabilities
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Carrying Value
Liabilities
Debt at:
September 30, 2023$695,712 $— $695,712 $— $771,355 
December 31, 2022$700,926 $— $700,926 $— $770,818 
v3.23.3
Stockholders' Equity (Tables)
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
Schedule of total restricted shares granted
The following is a summary of the total restricted shares granted to the Company’s executive officers and employees with the related weighted average grant date fair value share prices for the nine months ended September 30, 2023:
Restricted Stock Activity:
SharesWeighted Average Grant
Date Fair Value
Non-vested shares outstanding as of December 31, 2022356,632 $59.58 
Granted132,574 61.58 
Forfeited(6,989)66.95 
Vested(62,717)53.50 
Non-vested shares outstanding as of September 30, 2023419,500 $61.00 
Vesting schedule of the total non-vested shares of restricted stock outstanding The following is a vesting schedule of the total non-vested shares of restricted stock outstanding as of September 30, 2023:
Non-vested Shares Vesting ScheduleNumber of Shares
2023 (3 months)448 
2024116,167 
202584,052 
202662,146 
2027156,687 
Thereafter— 
Total Non-vested Shares419,500 
Schedule of certain information with respect to the Performance Share awards
The following table summarizes certain information with respect to the Performance Share awards granted on or after January 1, 2019 and includes the forfeiture of certain of the Performance Share awards during 2022 (dollars in thousands):
Performance Share Period
Fair Value on Date of Grant 1
Expense for the Three Months Ended September 30,
Expense for the Nine Months Ended September 30,
2023202220232022
January 1, 2020 - December 31, 2022$4,882 $— $407 $— $761 
January 1, 2021 - December 31, 20234,820 402 402 1,206 991 
January 1, 2022 - December 31, 20245,789 482 482 1,446 1,447 
January 1, 2023 - December 31, 20259,040 753 — 2,259 — 
Total$24,531 $1,637 $1,291 $4,911 $3,199 
1     Reflects the fair value on date of grant for all performance shares outstanding at September 30, 2023.
Schedule of cash dividends paid or payable per share The following table sets forth the cash dividends paid or payable per share during the nine months ended September 30, 2023:
For the Three Months EndedSecurityDividend per ShareDeclaration DateRecord DateDate Paid
March 31, 2023Common stock$0.40 February 7, 2023March 31, 2023April 6, 2023
June 30, 2023Common Stock$0.40 May 2, 2023June 30, 2023July 14, 2023
September 30, 2023Common Stock$0.45 August 1, 2023September 29, 2023October 13, 2023
v3.23.3
Organization (Details) - 9 months ended Sep. 30, 2023
property
segment
ft²
a
Real Estate      
Number of markets | segment 6    
Buildings      
Real Estate      
Number of properties (property) 257    
Buildings | Scenario, Plan      
Real Estate      
Number of properties (property) 7    
Area of real estate property | ft²   1,200,000  
Improved land parcels      
Real Estate      
Number of properties (property) 46    
Area of real estate property | ft²   15,800,000  
Area of land (acre) | a     165.8
Improved land parcels | Held for Sale      
Real Estate      
Number of properties (property) 1    
Improved land parcels | Scenario, Plan      
Real Estate      
Number of properties (property) 1    
Redevelopment property      
Real Estate      
Number of properties (property) 8    
Redevelopment property | Scenario, Plan      
Real Estate      
Area of land (acre)   1,231,624 2.8
Land Entitled For Future Development | Scenario, Plan      
Real Estate      
Area of land (acre) | a     62.7
v3.23.3
Significant Accounting Policies - Narrative (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
Sep. 30, 2023
USD ($)
segment
Sep. 30, 2022
USD ($)
Dec. 31, 2022
USD ($)
Significant Accounting Policies Statement          
Amortization of above and below-market leases $ 3,500,000 $ 4,200,000 $ 10,700,000 $ 10,800,000  
Remaining weighted average lease term related to these intangible assets and liabilities (years) 6 years 9 months 18 days   6 years 9 months 18 days    
Straight-line rent and accounts receivables, net of allowances $ 53,600,000   $ 53,600,000   $ 48,000,000
Straight-line rent and accounts receivable, allowances 900,000   900,000   600,000
Deferred financing cost accumulated amortization 13,100,000   $ 13,100,000   $ 11,900,000
Performance measurement period (years)     3 years    
Number of reportable segments | segment     1    
Real Estate Investment          
Significant Accounting Policies Statement          
Property impairment charges $ 0 $ 0 $ 0 $ 0  
v3.23.3
Significant Accounting Policies - Schedule of Intangible Assets and Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets    
Finite-lived intangible assets, gross $ 138,554 $ 123,545
Below-market leases, gross (136,238) (95,638)
Finite-lived intangible assets (liabilities), gross 3,260 27,907
Below-market lease, accumulated amortization 49,057 39,765
Finite-lived intangible assets (liabilities), accumulated amortization (46,338) (47,015)
Below-market leases, net (87,181) (55,873)
Total (43,078) (19,108)
In-place leases    
Finite-Lived Intangible Assets    
Finite-lived intangible assets, gross 135,912 119,959
Finite-lived intangible assets, accumulated amortization (91,827) (83,222)
Finite-lived intangible assets, net 44,085 36,737
Above-market leases    
Finite-Lived Intangible Assets    
Finite-lived intangible assets, gross 3,586 3,586
Finite-lived intangible assets, accumulated amortization (3,568) (3,558)
Finite-lived intangible assets, net $ 18 $ 28
v3.23.3
Significant Accounting Policies - Schedule of Depreciation and Useful Lives of Real Estate and Intangible Assets (Details)
Sep. 30, 2023
Buildings  
Finite-Lived Intangible Assets  
Standard depreciable life 40 years
Building Improvements | Minimum  
Finite-Lived Intangible Assets  
Standard depreciable life 5 years
Building Improvements | Maximum  
Finite-Lived Intangible Assets  
Standard depreciable life 40 years
v3.23.3
Significant Accounting Policies - Summary of the Reconciliation of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents        
Cash and cash equivalents $ 96,196 $ 10,153 $ 26,393 $ 204,404
Restricted cash 4,026 844 1,690 397
Cash and cash equivalents and restricted cash 100,222 10,997 $ 28,083 $ 204,801
Net increase (decrease) in cash and cash equivalents and restricted cash $ 72,139 $ (193,804)    
v3.23.3
Concentration of Credit Risk (Details) - Northern New Jersey/ New York City
ft² in Millions
 9 Months Ended
Sep. 30, 2023
a
ft²
property
Revenue Benchmark | Customer Concentration Risk  
Real Estate Properties  
Concentration risk (percentage) 24.30%
Office Building  
Real Estate Properties  
Number of properties (property) 43
Area of real estate property | ft² 2.6
Improved Land Parcels  
Real Estate Properties  
Number of properties (property) 13
Area of real estate property | a 68.0
v3.23.3
Investments in Real Estate - Narrative (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
USD ($)
property
Jun. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
Sep. 30, 2022
USD ($)
property
Jun. 30, 2022
USD ($)
Mar. 31, 2022
USD ($)
Sep. 30, 2023
USD ($)
property
Sep. 30, 2022
USD ($)
property
Sep. 30, 2023
ft²
Sep. 30, 2023
a
Finite-Lived Intangible Assets                    
Rental revenues and tenant expense reimbursements $ 82,920     $ 70,801     $ 237,106 $ 200,205    
Net income 30,315 $ 40,254 $ 23,331 22,439 $ 97,033 $ 19,662 93,900 139,134    
Capitalized interest associated with redevelopment activities $ 2,600     600     $ 5,500 2,200    
Redevelopment Property                    
Finite-Lived Intangible Assets                    
Number of properties (property) | property 8           8      
Buildings                    
Finite-Lived Intangible Assets                    
Number of properties (property) | property 257           257      
Improved Land Parcels                    
Finite-Lived Intangible Assets                    
Number of properties (property) | property 46           46      
Area of real estate property (square feet) | ft²                 15,800,000  
Area of land (acre) | a                   165.8
Completed Redevelopments                    
Finite-Lived Intangible Assets                    
Number of properties (property) | property 1           1      
Berryessa | Redevelopment Property                    
Finite-Lived Intangible Assets                    
Area of real estate property (square feet) | a                   6.3
Berryessa | Completed Redevelopments                    
Finite-Lived Intangible Assets                    
Asset acquisition, property additions             $ 26,296      
Scenario, Plan | Redevelopment Property                    
Finite-Lived Intangible Assets                    
Asset acquisition, consideration transferred             $ 336,100      
Area of land (acre)                 1,231,624 2.8
Scenario, Plan | Buildings                    
Finite-Lived Intangible Assets                    
Number of properties acquired (property) | property             6      
Number of properties (property) | property 7           7      
Area of real estate property (square feet) | ft²                 1,200,000  
Area of real estate property acquired (square feet) | ft²                 1,100,000  
Scenario, Plan | Improved Land Parcels                    
Finite-Lived Intangible Assets                    
Number of properties (property) | property 1           1      
Scenario, Plan | Land Entitled For Future Development                    
Finite-Lived Intangible Assets                    
Area of land (acre) | a                   62.7
Scenario, Plan | Maple III | Redevelopment Property                    
Finite-Lived Intangible Assets                    
Asset acquisition, consideration transferred             $ 26,980      
Area of land (acre) | a                   2.8
Asset Acquisitions 2023                    
Finite-Lived Intangible Assets                    
Rental revenues and tenant expense reimbursements $ 4,400           8,600      
Net income $ 1,500           $ 2,700      
Asset Acquisitions 2023 | Industrial Building                    
Finite-Lived Intangible Assets                    
Number of properties acquired (property) | property 1           5      
Asset acquisitions, assets acquired and liabilities assumed, net $ 16,500           $ 437,000      
Finite-lived intangible assets acquired 2,800           21,700      
Asset acquisition, liabilities 2,100           45,100      
Asset acquisition, consideration transferred 40,600                  
Asset Acquisitions 2023 | Land | Industrial Building                    
Finite-Lived Intangible Assets                    
Asset acquisition, property additions $ 13,700           267,400      
Asset Acquisitions 2023 | Buildings | Industrial Building                    
Finite-Lived Intangible Assets                    
Asset acquisition, property additions             $ 147,900      
Asset Acquisitions 2022                    
Finite-Lived Intangible Assets                    
Rental revenues and tenant expense reimbursements       4,100       5,800    
Net income       $ 1,000       $ 1,700    
Asset Acquisitions 2022 | Industrial Building                    
Finite-Lived Intangible Assets                    
Number of properties acquired (property) | property       4       16    
Asset acquisitions, assets acquired and liabilities assumed, net       $ 68,900       $ 360,800    
Finite-lived intangible assets acquired       1,300       10,900    
Asset acquisition, liabilities       1,100       16,100    
Asset Acquisitions 2022 | Land | Industrial Building                    
Finite-Lived Intangible Assets                    
Asset acquisition, property additions       62,100       261,600    
Asset Acquisitions 2022 | Buildings | Industrial Building                    
Finite-Lived Intangible Assets                    
Asset acquisition, property additions       $ 5,500       $ 88,300    
v3.23.3
Investments in Real Estate - Schedule of Under and Redevelopment Properties (Details) - 9 months ended Sep. 30, 2023
$ in Thousands
USD ($)
property
ft²
a
Redevelopment Property      
Real Estate Properties      
Number of properties (property) | property 8    
Redevelopment Property | Berryessa      
Real Estate Properties      
Area of real estate property (square feet) | a     6.3
Redevelopment Property | Scenario, Plan      
Real Estate Properties      
Asset acquisition, consideration transferred $ 336,100    
Area of land (acre)   1,231,624 2.8
Redevelopment Property | Scenario, Plan | Countyline Building 38      
Real Estate Properties      
Asset acquisition, consideration transferred 88,800    
Area of land (acre) | ft²   506,215  
Redevelopment Property | Scenario, Plan | Countyline Building 39      
Real Estate Properties      
Asset acquisition, consideration transferred 42,632    
Area of land (acre) | ft²   178,201  
Redevelopment Property | Scenario, Plan | Countyline Building 40      
Real Estate Properties      
Asset acquisition, consideration transferred 41,968    
Area of land (acre) | ft²   186,107  
Redevelopment Property | Scenario, Plan | Countyline Building 41      
Real Estate Properties      
Asset acquisition, consideration transferred 41,400    
Area of land (acre) | ft²   190,907  
Redevelopment Property | Scenario, Plan | Maple III      
Real Estate Properties      
Asset acquisition, consideration transferred 26,980    
Area of land (acre) | a     2.8
Redevelopment Property | Scenario, Plan | 147th Street      
Real Estate Properties      
Asset acquisition, consideration transferred 18,095    
Area of land (acre) | ft²   31,378  
Redevelopment Property | Scenario, Plan | East Garry Avenue      
Real Estate Properties      
Asset acquisition, consideration transferred 40,553    
Area of land (acre) | ft²   91,500  
Redevelopment Property | Scenario, Plan | Paterson Plank III      
Real Estate Properties      
Asset acquisition, consideration transferred 35,672    
Area of land (acre) | ft²   47,316  
Land | Scenario, Plan      
Real Estate Properties      
Asset acquisition, consideration transferred 295,700    
Area of land (acre) | ft²   1,137,121  
Land | Scenario, Plan | Countyline Phase IV Land      
Real Estate Properties      
Asset acquisition, consideration transferred $ 295,700    
Area of land (acre) | ft²   1,137,121  
Industrial Building | Industrial Distribution in Miami's Countyline      
Real Estate Properties      
Area of land (acre) | a     121
Area of real estate property (square feet) | ft²   2,200,000  
Industrial Building | Redevelopment Adjacent To Florida Turnpike And Southern I 75      
Real Estate Properties      
Number of properties (property) | property 7    
Industrial Building | Scenario, Plan | Redevelopment Adjacent To Florida Turnpike And Southern I 75      
Real Estate Properties      
Number of properties acquired (property) | property 10    
v3.23.3
Held for Sale/Disposed Assets (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
USD ($)
property
Sep. 30, 2022
USD ($)
property
Dec. 31, 2022
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Net investments in properties $ 3,560,054   $ 3,075,143
Buildings      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Number of properties (property) | property 257    
Held for Sale | Washington, D.C.      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Number of properties (property) | property 1    
Proceeds from sale of real estate $ 18,000    
Net investments in properties $ 7,300    
Disposed of by Sale | Northern New Jersey/New York      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Number of properties (property) | property 1 1  
Proceeds from sale of real estate $ 25,500 $ 110,400  
Gain on sale of real estate $ 12,300 $ 76,000  
Disposed of by Sale | Northern New Jersey/New York | Buildings      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Number of properties (property) | property   18  
v3.23.3
Debt - Narrative (Details) - USD ($)
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Debt Instrument    
Total unsecured debt $ 775,000,000 $ 775,000,000
Credit facility $ 0 0
Credit facility    
Debt Instrument    
Credit facility, maximum   1,100,000,000
Additional borrowing capacity   500,000,000
Line of Credit | SOFR    
Debt Instrument    
Debt instrument, basis spread on variable adjustment rate 0.10%  
Line of Credit | Minimum | SOFR    
Debt Instrument    
Basis spread on variable rate (percent) 1.10%  
Line of Credit | Maximum | SOFR    
Debt Instrument    
Basis spread on variable rate (percent) 1.55%  
Amended facility maturing August 2025 | Credit facility    
Debt Instrument    
Credit facility, maximum   400,000,000
Credit facility $ 0 $ 0
Unencumbered properties (percent)   60.00%
Amended facility maturing August 2025 | Credit facility | Federal Funds Rate    
Debt Instrument    
Variable rate threshold (percent)   0.50%
Amended facility maturing August 2025 | Credit facility | SOFR    
Debt Instrument    
Variable rate threshold (percent)   1.25%
Amended facility maturing August 2025 | Credit facility | Minimum    
Debt Instrument    
Credit facility, facility fee (percent) 0.15%  
Amended facility maturing August 2025 | Credit facility | Maximum    
Debt Instrument    
Credit facility, facility fee (percent) 0.30%  
Unsecured Debt | 5-Year Term Loan    
Debt Instrument    
Total unsecured debt $ 100,000,000 $ 100,000,000
Unsecured Debt | 5-Year Term Loan | SOFR    
Debt Instrument    
Basis spread on variable rate (percent) 1.25%  
Unsecured Debt | 5-Year Term Loan | Minimum | SOFR    
Debt Instrument    
Basis spread on variable rate (percent) 1.25%  
Unsecured Debt | 5-Year Term Loan | Maximum | SOFR    
Debt Instrument    
Basis spread on variable rate (percent) 1.75%  
Term loan    
Debt Instrument    
Total unsecured debt $ 200,000,000 $ 200,000,000
v3.23.3
Debt - Schedule of Debt (Details) - USD ($)
 9 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Debt Instrument    
Total Unsecured Debt $ 775,000,000 $ 775,000,000
Less: Unamortized debt issuance costs (3,645,000) (4,182,000)
Total debt, net $ 771,355,000 770,818,000
SOFR | Line of Credit    
Debt Instrument    
Debt instrument, basis spread on variable adjustment rate 0.10%  
SOFR | Minimum | Line of Credit    
Debt Instrument    
Basis spread on variable rate 1.10%  
SOFR | Maximum | Line of Credit    
Debt Instrument    
Basis spread on variable rate 1.55%  
Line of Credit    
Debt Instrument    
Total Unsecured Debt $ 0 0
Line of Credit | SOFR    
Debt Instrument    
Basis spread on variable rate 1.10%  
Unsecured Debt | 5-Year Term Loan    
Debt Instrument    
Debt term (years) 5 years  
Total Unsecured Debt $ 100,000,000 100,000,000
Interest rate 6.60%  
Unsecured Debt | 5-Year Term Loan | SOFR    
Debt Instrument    
Basis spread on variable rate 1.25%  
Unsecured Debt | 5-Year Term Loan | SOFR | Minimum    
Debt Instrument    
Basis spread on variable rate 1.25%  
Unsecured Debt | 5-Year Term Loan | SOFR | Maximum    
Debt Instrument    
Basis spread on variable rate 1.75%  
Unsecured Debt | 5-Year Term Loan    
Debt Instrument    
Debt term (years) 5 years  
Total Unsecured Debt $ 100,000,000 100,000,000
Interest rate 6.60%  
Unsecured Debt | 5-Year Term Loan | SOFR    
Debt Instrument    
Basis spread on variable rate 1.30%  
Unsecured Debt | $100M 7-Year Unsecured    
Debt Instrument    
Debt instrument, face amount $ 100,000,000  
Debt term (years) 7 years  
Total Unsecured Debt $ 100,000,000 100,000,000
Interest rate 3.80%  
Unsecured Debt | $50M 10-Year Unsecured    
Debt Instrument    
Debt instrument, face amount $ 50,000,000  
Debt term (years) 10 years  
Total Unsecured Debt $ 50,000,000 50,000,000
Interest rate 4.00%  
Unsecured Debt | $50M 12-Year Unsecured    
Debt Instrument    
Debt instrument, face amount $ 50,000,000  
Debt term (years) 12 years  
Total Unsecured Debt $ 50,000,000 50,000,000
Interest rate 4.70%  
Unsecured Debt | $100M 7-Year Unsecured    
Debt Instrument    
Debt instrument, face amount $ 100,000,000  
Debt term (years) 7 years  
Total Unsecured Debt $ 100,000,000 100,000,000
Interest rate 2.40%  
Unsecured Debt | $100M 10-Year Unsecured    
Debt Instrument    
Debt instrument, face amount $ 100,000,000  
Debt term (years) 10 years  
Total Unsecured Debt $ 100,000,000 100,000,000
Interest rate 3.10%  
Unsecured Debt | $125M 10-Year Unsecured    
Debt Instrument    
Debt instrument, face amount $ 125,000,000  
Debt term (years) 9 years  
Total Unsecured Debt $ 125,000,000 125,000,000
Interest rate 2.40%  
Unsecured Debt | $50M 9-Year Unsecured    
Debt Instrument    
Debt instrument, face amount $ 50,000,000  
Debt term (years) 10 years  
Total Unsecured Debt $ 50,000,000 $ 50,000,000
Interest rate 2.80%  
v3.23.3
Debt - Schedule of Principal Payments (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Maturities of Long-term Debt    
2023 (3 months) $ 0  
2024 100,000  
2025 0  
2026 50,000  
2027 150,000  
Thereafter 475,000  
Total debt 775,000  
Deferred financing costs, net (3,645)  
Total debt, net $ 771,355 $ 770,818
Weighted average interest rate 4.00%  
Credit Facility    
Maturities of Long-term Debt    
2023 (3 months) $ 0  
2024 0  
2025 0  
2026 0  
2027 0  
Thereafter 0  
Total debt 0  
Deferred financing costs, net 0  
Total debt, net 0  
Term Loan    
Maturities of Long-term Debt    
2023 (3 months) 0  
2024 0  
2025 0  
2026 0  
2027 100,000  
Thereafter 100,000  
Total debt 200,000  
Deferred financing costs, net (914)  
Total debt, net $ 199,086  
Weighted average interest rate 6.60%  
Senior Unsecured Notes    
Maturities of Long-term Debt    
2023 (3 months) $ 0  
2024 100,000  
2025 0  
2026 50,000  
2027 50,000  
Thereafter 375,000  
Total debt 575,000  
Deferred financing costs, net (2,731)  
Total debt, net $ 572,269  
Weighted average interest rate 3.10%  
v3.23.3
Leasing (Details)
$ in Thousands
Sep. 30, 2023
USD ($)
Lessor, Operating Lease, Payments, Fiscal Year Maturity  
2023 (3 months) $ 60,005
2024 241,049
2025 224,558
2026 190,944
2027 144,295
Thereafter 342,267
Total $ 1,203,118
v3.23.3
Fair Value Measurements - Carrying Value and Estimated Fair Value of Company Debt (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Liabilities    
Debt, fair value $ 695,712 $ 700,926
Debt, carrying value 771,355 770,818
Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1)    
Liabilities    
Debt, fair value 0 0
Significant Other Observable Inputs (Level 2)    
Liabilities    
Debt, fair value 695,712 700,926
Significant Unobservable Inputs (Level 3)    
Liabilities    
Debt, fair value $ 0 $ 0
v3.23.3
Stockholders' Equity - Narrative (Details)
 3 Months Ended 9 Months Ended 164 Months Ended
Sep. 04, 2023
USD ($)
May 02, 2023
$ / shares
shares
Feb. 13, 2023
USD ($)
$ / shares
shares
Sep. 30, 2023
USD ($)
period
$ / shares
shares
Jun. 30, 2023
USD ($)
shares
Mar. 31, 2023
USD ($)
shares
Sep. 30, 2022
USD ($)
$ / shares
shares
Jun. 30, 2022
USD ($)
shares
Mar. 31, 2022
USD ($)
shares
Sep. 30, 2023
USD ($)
period
$ / shares
shares
Sep. 30, 2022
USD ($)
$ / shares
shares
Sep. 30, 2023
USD ($)
period
$ / shares
shares
Dec. 31, 2022
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award                          
Common stock, shares authorized (in shares) | shares       400,000,000           400,000,000   400,000,000 400,000,000
Common stock, par value (in dollars per share) | $ / shares       $ 0.01           $ 0.01   $ 0.01 $ 0.01
Preferred stock, authorized (in shares) | shares       100,000,000           100,000,000   100,000,000  
Preferred stock, par value (in dollars per share) | $ / shares       $ 0.01           $ 0.01   $ 0.01  
Weighted average offering price (in dollars per share) | $ / shares       $ 60.78     $ 64.97     $ 61.61 $ 65.61    
Total compensation to the applicable sales agents | $       $ 1,400,000           $ 2,300,000      
Issuance of common stock (in shares) | shares             444,512       471,599    
Underwriting discount and offering costs | $       $ 1,438,000 $ 822,000 $ 943,000 $ 548,000 $ 112,000 $ 0        
Shares repurchase program, authorized repurchase amount (in shares) | shares       3,000,000           3,000,000   3,000,000  
Withdraw from deferred compensation plan (in shares) | shares       0     0     0 0    
Restricted Stock                          
Share-based Compensation Arrangement by Share-based Payment Award                          
Granted (in shares) | shares                   132,574      
Grant date fair value per share of restricted stock awards (in dollars per share) | $ / shares                   $ 61.58      
Expense | $       $ 1,600,000     $ 1,400,000     $ 4,600,000 $ 3,600,000    
Fair value of the restricted stock granted | $                   8,200,000      
Unrecognized compensation costs related to restricted stock issuances | $       $ 16,300,000           $ 16,300,000   $ 16,300,000  
Remaining weighted average period                   3 years 2 months 12 days      
Minimum | Restricted Stock                          
Share-based Compensation Arrangement by Share-based Payment Award                          
Grant date fair value per share of restricted stock awards (in dollars per share) | $ / shares                       $ 14.20  
Vesting period for the restricted stock                   1 year      
Maximum | Restricted Stock                          
Share-based Compensation Arrangement by Share-based Payment Award                          
Grant date fair value per share of restricted stock awards (in dollars per share) | $ / shares                       $ 78.33  
Vesting period for the restricted stock                   5 years      
Common Shares Held in Deferred Compensation Plan                          
Share-based Compensation Arrangement by Share-based Payment Award                          
Deposits to deferred compensation plan (in shares) | shares       0 2,080 94,794 0 3,582 147,285 96,874 150,867    
2019 Plan                          
Share-based Compensation Arrangement by Share-based Payment Award                          
Common stock, shares authorized (in shares) | shares       1,898,961           1,898,961   1,898,961  
Granted (in shares) | shares   12,480                      
Grant date fair value per share of restricted stock awards (in dollars per share) | $ / shares   $ 60.10                      
Expense | $       $ 800,000           $ 800,000      
Remaining balance of shares available (in shares) | shares       500,490           500,490   500,490  
Long Term Incentive Plan                          
Share-based Compensation Arrangement by Share-based Payment Award                          
Number of shares issued (in shares) | shares                   97,825      
Shares issued, price per share (in dollars per share) | $ / shares       $ 58.56           $ 58.56   $ 58.56  
Number of measurement periods | period       3           3   3  
$500 Million ATM Program                          
Share-based Compensation Arrangement by Share-based Payment Award                          
Common stock aggregate offering price | $                   $ 500,000,000      
Common stock aggregate offering price, remaining | $                   $ 464,300,000      
Number of shares issued (in shares) | shares       1,575,173           2,542,279      
Net proceeds form offerings | $       $ 94,400,000           $ 154,400,000      
$300 Million ATM Program                          
Share-based Compensation Arrangement by Share-based Payment Award                          
Common stock aggregate offering price | $ $ 300,000,000                        
Net proceeds form offerings | $             $ 28,500,000       $ 30,500,000    
Total compensation to the applicable sales agents | $             $ 400,000       $ 400,000    
IPO | Common Stock                          
Share-based Compensation Arrangement by Share-based Payment Award                          
Number of shares issued (in shares) | shares     5,750,000                    
Net proceeds form offerings | $     $ 355,900,000                    
Shares issued, price per share (in dollars per share) | $ / shares     $ 62.50                    
Underwriting discount and offering costs | $     $ 3,500,000                    
Over-Allotment Option | Common Stock                          
Share-based Compensation Arrangement by Share-based Payment Award                          
Number of shares issued (in shares) | shares     750,000                    
v3.23.3
Stockholders' Equity - Restricted Stock Activity (Details) - $ / shares
 9 Months Ended
May 02, 2023
Sep. 30, 2023
Shares    
Non-vested shares outstanding at end of period (in shares)   419,500
2019 Plan    
Shares    
Granted (in shares) 12,480  
Weighted Average Grant Date Fair Value    
Granted (in dollars per share) $ 60.10  
Restricted Stock    
Shares    
Non-vested shares outstanding at beginning of period (in shares)   356,632
Granted (in shares)   132,574
Forfeited (in shares)   (6,989)
Vested (in shares)   (62,717)
Non-vested shares outstanding at end of period (in shares)   419,500
Weighted Average Grant Date Fair Value    
Non-vested shares outstanding at beginning of period (in dollars per share)   $ 59.58
Granted (in dollars per share)   61.58
Forfeited (in dollars per share)   66.95
Vested (in dollars per share)   53.50
Non-vested shares outstanding at end of period (in dollars per share)   $ 61.00
v3.23.3
Stockholders' Equity - Vesting Schedule of the Total Non-Vested Shares of Restricted Stock Outstanding (Details)
Sep. 30, 2023
shares
Share-based Compensation Arrangement by Share-based Payment Award  
Total non-vested shares (in shares) 419,500
2023 (3 months)  
Share-based Compensation Arrangement by Share-based Payment Award  
Total non-vested shares (in shares) 448
2024  
Share-based Compensation Arrangement by Share-based Payment Award  
Total non-vested shares (in shares) 116,167
2025  
Share-based Compensation Arrangement by Share-based Payment Award  
Total non-vested shares (in shares) 84,052
2026  
Share-based Compensation Arrangement by Share-based Payment Award  
Total non-vested shares (in shares) 62,146
2027  
Share-based Compensation Arrangement by Share-based Payment Award  
Total non-vested shares (in shares) 156,687
Thereafter  
Share-based Compensation Arrangement by Share-based Payment Award  
Total non-vested shares (in shares) 0
v3.23.3
Stockholders' Equity - Summary of Certain Information With Respect to the Performance Share Awards (Details) - Amended Long Term Incentive Plan - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award        
Fair Value on Date of Grant     $ 24,531  
Expense $ 1,637 $ 1,291 4,911 $ 3,199
Performance Shares | January 1, 2020 - December 31, 2022        
Share-based Compensation Arrangement by Share-based Payment Award        
Fair Value on Date of Grant     4,882  
Expense 0 407 0 761
Performance Shares | January 1, 2021 - December 31, 2023        
Share-based Compensation Arrangement by Share-based Payment Award        
Fair Value on Date of Grant     4,820  
Expense 402 402 1,206 991
Performance Shares | January 1, 2022 - December 31, 2024        
Share-based Compensation Arrangement by Share-based Payment Award        
Fair Value on Date of Grant     5,789  
Expense 482 482 1,446 1,447
Performance Shares | January 1, 2023 - December 31, 2025        
Share-based Compensation Arrangement by Share-based Payment Award        
Fair Value on Date of Grant     9,040  
Expense $ 753 $ 0 $ 2,259 $ 0
v3.23.3
Stockholders' Equity - Cash Dividends Paid or Payable Per Share (Details) - $ / shares
 3 Months Ended
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Equity [Abstract]            
Dividend per share, common stock (in dollars per share) $ 0.45 $ 0.40 $ 0.40 $ 0.40 $ 0.34 $ 0.34
v3.23.3
Net Income (Loss) Per Share (Details) - shares
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share        
Weighted average unvested restricted shares outstanding (in shares) 404,010 335,038 384,239 311,432
Restricted stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share        
Dilutive restricted stock awards outstanding securities not participate in losses (in shares) 0 0 0 0
Performance shares        
Antidilutive Securities Excluded from Computation of Earnings Per Share        
Dilutive restricted stock awards outstanding securities not participate in losses (in shares) 225,327 93,518 231,459 86,624
v3.23.3
Commitments and Contingencies (Details) - Third-Party Seller - Subsequent Event
$ in Millions
Oct. 31, 2023
USD ($)
property
Other Commitments  
Number of properties (property) | property 2
Payments to acquire real estate | $ $ 9.6
v3.23.3
Subsequent Events (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Oct. 31, 2023
$ / shares
Oct. 11, 2023
USD ($)
property
Oct. 10, 2023
USD ($)
property
Oct. 04, 2023
USD ($)
property
Sep. 30, 2023
USD ($)
$ / shares
Jun. 30, 2023
$ / shares
Mar. 31, 2023
$ / shares
Sep. 30, 2022
$ / shares
Jun. 30, 2022
$ / shares
Mar. 31, 2022
$ / shares
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
Dec. 31, 2022
USD ($)
Subsequent Event                          
Net investments in properties         $ 3,560,054           $ 3,560,054   $ 3,075,143
Net cash paid for property acquisitions                     $ 392,503 $ 344,833  
Dividends per share, common stock (in dollars per share) | $ / shares         $ 0.45 $ 0.40 $ 0.40 $ 0.40 $ 0.34 $ 0.34      
Subsequent Event                          
Subsequent Event                          
Dividends per share, common stock (in dollars per share) | $ / shares $ 0.45                        
Subsequent Event | Industrial Property in Hanover, MD | Industrial Building                          
Subsequent Event                          
Number of properties (property) | property       1                  
Proceeds from sale of real estate       $ 18,000                  
Net investments in properties       $ 7,300                  
Subsequent Event | Industrial Property in Redondo Beach, CA | Industrial Building                          
Subsequent Event                          
Number of properties (property) | property     1                    
Net cash paid for property acquisitions     $ 45,700                    
Subsequent Event | Industrial Property in Brooklyn, NY | Industrial Building                          
Subsequent Event                          
Number of properties (property) | property   1                      
Net cash paid for property acquisitions   $ 27,500