SILA REALTY TRUST, INC., 10-Q filed on 8/7/2024
Quarterly Report
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Cover - shares
 6 Months Ended
Jun. 30, 2024
Aug. 02, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2024  
Document Transition Report false  
Entity File Number 001-42129  
Entity Registrant Name SILA REALTY TRUST, INC.  
Entity Incorporation, State or Country Code MD  
Entity Tax Identification Number 46-1854011  
Entity Address, Address Line One 1001 Water Street,  
Entity Address, Address Line Two Suite 800  
Entity Address, City or Town Tampa,  
Entity Address, State or Province FL  
Entity Address, Postal Zip Code 33602  
City Area Code (813)  
Local Phone Number 287-0101  
Title of 12(b) Security Common stock, $0.01 par value per share  
Trading Symbol SILA  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   55,018,168
Amendment Flag false  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0001567925  
Current Fiscal Year End Date --12-31  
v3.24.2.u1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Real estate:    
Land $ 166,130 $ 157,821
Buildings and improvements, less accumulated depreciation of $251,413 and $227,156, respectively 1,556,570 1,470,831
Total real estate, net 1,722,700 1,628,652
Cash and cash equivalents 86,971 202,019
Intangible assets, less accumulated amortization of $112,069 and $102,456, respectively 133,071 134,999
Goodwill 17,700 17,700
Right-of-use assets 36,027 36,384
Other assets 85,128 79,825
Total assets 2,081,597 2,099,579
Liabilities:    
Credit facility, net of deferred financing costs of $3,699 and $1,847, respectively 521,301 523,153
Accounts payable and other liabilities 38,742 30,381
Intangible liabilities, less accumulated amortization of $8,131 and $7,417, respectively 7,699 10,452
Lease liabilities 40,944 41,158
Total liabilities 608,686 605,144
Stockholders’ equity:    
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized; none issued and outstanding 0 0
Common stock, $0.01 par value per share, 510,000,000 shares authorized; 61,670,830 and 61,154,404(1) shares issued, respectively; 57,216,478 and 56,983,564(1) shares outstanding, respectively [1] 572 570
Additional paid-in capital 2,048,406 2,044,450
Distributions in excess of accumulated earnings (593,423) (567,188)
Accumulated other comprehensive income 17,356 16,603
Total stockholders’ equity 1,472,911 1,494,435
Total liabilities and stockholders’ equity $ 2,081,597 $ 2,099,579
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
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CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Buildings and improvements, accumulated depreciation $ 251,413 $ 227,156
Intangible assets, accumulated amortization 112,069 102,456
Credit facility, deferred financing costs 3,699 1,847
Intangible liabilities, accumulated amortization $ 8,131 $ 7,417
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 100,000,000 100,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 510,000,000 510,000,000
Common stock, shares issued (in shares) [1] 61,670,830 61,154,404
Common stock, shares outstanding (in shares) [1] 57,216,478 56,983,564
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.2.u1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Revenue:        
Rental revenue $ 43,554 $ 44,965 $ 94,193 $ 94,609
Expenses:        
Rental expenses 5,849 4,873 11,403 9,723
Listing-related expenses 2,924 0 2,980 0
General and administrative expenses 5,347 5,547 13,521 11,650
Depreciation and amortization 20,246 18,803 39,144 37,355
Impairment losses 418 6,364 418 6,708
Total operating expenses 34,784 35,587 67,466 65,436
Gain on real estate dispositions 0 0 76 21
Interest and other income 1,051 141 3,292 147
Interest expense 5,193 5,664 10,487 11,286
Net income attributable to common stockholders 4,628 3,855 19,608 18,055
Other comprehensive (loss) income - unrealized (loss) gain on interest rate swaps, net (2,115) 7,382 753 (882)
Comprehensive income attributable to common stockholders $ 2,513 $ 11,237 $ 20,361 $ 17,173
Weighted average number of common shares outstanding:        
Basic (in shares) [1] 57,230,472 56,744,341 57,171,756 56,692,674
Diluted (in shares) [1] 57,601,204 57,208,783 57,574,634 57,155,224
Net income per common share attributable to common stockholders:        
Basic (in dollars per share) [1] $ 0.08 $ 0.07 $ 0.34 $ 0.32
Diluted (in dollars per share) [1] 0.08 0.07 0.34 0.32
Distributions declared per common share (in dollars per share) [1] $ 0.40 $ 0.40 $ 0.80 $ 0.80
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Distributions in Excess of Accumulated Earnings
Accumulated Other Comprehensive Income (Loss)
Balance, (in shares) at Dec. 31, 2022 [1]   56,563,992      
Balance beginning at Dec. 31, 2022 $ 1,555,095 $ 566 [1] $ 2,025,873 [1] $ (499,334) $ 27,990
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock under the distribution reinvestment plan (in shares) [1]   379,229      
Issuance of common stock under the distribution reinvestment plan 12,450 $ 4 [1] 12,446 [1]    
Vesting of restricted stock (in shares) [1]   24,863      
Stock-based compensation [1]   $ 0 2,493    
Other offering costs (6)   (6) [1]    
Repurchase of common stock (in shares) [1]   (182,298)      
Repurchase of common stock (5,994) $ (2) [1] (5,992) [1]    
Distributions to common stockholders (45,348)     (45,348)  
Other comprehensive income (loss) (882)       (882)
Net income 18,055     18,055  
Balance, (in shares) at Jun. 30, 2023 [1]   56,785,786      
Balance ending at Jun. 30, 2023 1,535,863 $ 568 [1] 2,034,814 [1] (526,627) 27,108
Balance, (in shares) at Mar. 31, 2023 [1]   56,670,035      
Balance beginning at Mar. 31, 2023 1,542,411 $ 567 [1] 2,029,779 [1] (507,661) 19,726
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock under the distribution reinvestment plan (in shares) [1]   191,531      
Issuance of common stock under the distribution reinvestment plan 6,277 $ 2 [1] 6,275 [1]    
Stock-based compensation [1]     1,251    
Repurchase of common stock (in shares) [1]   (75,780)      
Repurchase of common stock (2,492) $ (1) [1] (2,491) [1]    
Distributions to common stockholders (22,821)     (22,821)  
Other comprehensive income (loss) 7,382       7,382
Net income 3,855     3,855  
Balance, (in shares) at Jun. 30, 2023 [1]   56,785,786      
Balance ending at Jun. 30, 2023 $ 1,535,863 $ 568 [1] 2,034,814 [1] (526,627) 27,108
Balance, (in shares) at Dec. 31, 2023 56,983,564 [2] 56,983,564 [3]      
Balance beginning at Dec. 31, 2023 $ 1,494,435 $ 570 [3] 2,044,450 [3] (567,188) 16,603
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock under the distribution reinvestment plan (in shares) [3]   333,402      
Issuance of common stock under the distribution reinvestment plan 9,979 $ 3 [3] 9,976 [3]    
Vesting of restricted stock (in shares) [3]   183,024      
Stock-based compensation 2,487 $ 2 [3] 2,485 [3]    
Other offering costs (26)   (26) [3]    
Repurchase of common stock (in shares) [3]   (283,512)      
Repurchase of common stock (8,482) $ (3) [3] (8,479) [3]    
Distributions to common stockholders (45,843)     (45,843)  
Other comprehensive income (loss) 753       753
Net income $ 19,608     19,608  
Balance, (in shares) at Jun. 30, 2024 57,216,478 [2] 57,216,478 [3]      
Balance ending at Jun. 30, 2024 $ 1,472,911 $ 572 [3] 2,048,406 [3] (593,423) 17,356
Balance, (in shares) at Mar. 31, 2024 [3]   57,223,648      
Balance beginning at Mar. 31, 2024 1,492,507 $ 572 [3] 2,047,457 [3] (574,993) 19,471
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock under the distribution reinvestment plan (in shares) [3]   133,059      
Issuance of common stock under the distribution reinvestment plan 3,982 $ 1 [3] 3,981 [3]    
Stock-based compensation [3]     1,163    
Repurchase of common stock (in shares) [3]   (140,229)      
Repurchase of common stock (4,196) $ (1) [3] (4,195) [3]    
Distributions to common stockholders (23,058)     (23,058)  
Other comprehensive income (loss) (2,115)       (2,115)
Net income $ 4,628     4,628  
Balance, (in shares) at Jun. 30, 2024 57,216,478 [2] 57,216,478 [3]      
Balance ending at Jun. 30, 2024 $ 1,472,911 $ 572 [3] $ 2,048,406 [3] $ (593,423) $ 17,356
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
[2] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
[3] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Cash flows from operating activities:    
Net income attributable to common stockholders $ 19,608 $ 18,055
Adjustments to reconcile net income attributable to common stockholders to net cash provided by operating activities:    
Depreciation and amortization 39,144 37,355
Amortization of deferred financing costs 1,029 825
Amortization of above- and below-market leases, net 947 504
Other amortization expenses 366 399
Gain on real estate dispositions (76) (21)
Loss on extinguishment of debt 228 0
Impairment losses 418 6,708
Straight-line rent adjustments, net of write-offs (2,473) (1,273)
Stock-based compensation 2,487 2,493
Changes in operating assets and liabilities:    
Accounts payable and other liabilities 9,406 (1,670)
Other assets (2,872) 831
Net cash provided by operating activities 68,212 64,206
Cash flows from investing activities:    
Investments in real estate (135,681) (9,920)
Proceeds from real estate dispositions 1,439 12,241
Capital expenditures and other costs (863) (962)
Payments of deposits for investments in real estate (250) 0
Net cash (used in) provided by investing activities (135,355) 1,359
Cash flows from financing activities:    
Proceeds from credit facility 250,000 0
Payments on credit facility (250,000) (18,000)
Payments of deferred financing costs (2,577) (12)
Repurchase of common stock (8,482) (5,994)
Offering costs on issuance of common stock (61) (10)
Distributions to common stockholders (36,785) (32,969)
Net cash used in financing activities (47,905) (56,985)
Net change in cash, cash equivalents and restricted cash (115,048) 8,580
Cash, cash equivalents and restricted cash - Beginning of period 202,185 13,083
Cash, cash equivalents and restricted cash - End of period 87,137 21,663
Supplemental cash flow disclosure:    
Interest paid 9,383 10,779
Supplemental disclosure of non-cash transactions:    
Common stock issued through distribution reinvestment plan 9,979 12,450
Change in accrued distributions to common stockholders (921) (71)
Change in accounts payable and other liabilities related to investing activities 466 87
Right-of-use assets obtained in exchange for new lease liabilities $ 28 $ 0
v3.24.2.u1
Organization and Business Operations
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Business Operations Organization and Business Operations
Sila Realty Trust, Inc., or the Company, is a Maryland corporation, headquartered in Tampa, Florida, that has elected, and currently qualifies, to be taxed as a real estate investment trust, or a REIT, under the Internal Revenue Code of 1986, as amended, or the Code, for federal income tax purposes. The Company is primarily focused on investing in high quality healthcare facilities across the continuum of care, which the Company believes typically generate predictable, durable and growing income streams. The Company may also make other real estate-related investments, which may include equity or debt interests in other real estate entities.
Substantially all of the Company’s business is conducted through Sila Realty Operating Partnership, LP, a Delaware limited partnership, or the Operating Partnership. The Company is the sole general partner of the Operating Partnership and directly and indirectly owns 100% of the Operating Partnership. Except as the context otherwise requires, the “Company” refers to Sila Realty Trust, Inc., the Operating Partnership and their wholly-owned subsidiaries.
New York Stock Exchange Listing and Reverse Stock Split
On June 13, 2024, the Company's common stock, par value $0.01 per share, or the Common Stock, was listed and began trading on the New York Stock Exchange, or the NYSE, under the ticker symbol "SILA", or the Listing. Upon the Listing, all outstanding shares of Class I Common Stock and Class T Common Stock were automatically converted into shares of Class A Common Stock on a one-for-one basis and authorized but unissued shares of Class I Common Stock, Class T Common Stock and Class T2 Common Stock were reclassified into additional shares of Class A Common Stock. Class A Common Stock was then immediately renamed “Common Stock” and is the sole class of stock traded on the NYSE.
On April 8, 2024, in anticipation of the Listing, the Company amended its charter to effect a one-for-four reverse stock split, or the Reverse Stock Split, of each issued and outstanding share of each class of Common Stock of the Company, effective May 1, 2024, and the Company also amended its charter to decrease the par value of each issued and outstanding share of the Company's Common Stock from $0.04 par value per share to $0.01 par value per share immediately after the Reverse Stock Split. In addition, equitable adjustments were made to the maximum number of shares of the Company's Common Stock that may be issued pursuant to the Company’s Amended and Restated 2014 Restricted Share Plan, or the A&R Incentive Plan, and the maximum number of shares of the Company's Common Stock that may be granted under incentive stock awards under the A&R Incentive Plan, in each case, to reflect the Reverse Stock Split. The number of shares of the Company's Common Stock subject to outstanding awards under the A&R Incentive Plan were also equitably adjusted to reflect the Reverse Stock Split. The Reverse Stock Split affected all record holders of the Company’s Common Stock uniformly and did not affect any record holder’s percentage ownership interest. The Reverse Stock Split did not affect the number of the Company’s authorized shares of Common Stock. All references made to share or per share amounts in the accompanying condensed consolidated financial statements and applicable disclosures have been retroactively adjusted as though the Reverse Stock Split had been effected prior to all periods presented.
"Dutch Auction" Tender Offer
On June 13, 2024, in conjunction with the Listing, the Company commenced a modified "Dutch Auction" tender offer, or the Tender Offer, to purchase shares of its Common Stock for cash at a price per share of not greater than $24.00 nor less than $22.60, net to the seller in cash, less any applicable withholding taxes and without interest, for a maximum aggregate purchase price of no more than $50,000,000. The Company incurred deferred costs of $1,863,000 related to the Tender Offer as of June 30, 2024, which are included in other assets on the accompanying condensed consolidated balance sheets, and will be applied as a component of additional paid-in capital upon the successful completion of the Tender Offer. The Tender Offer was successfully completed subsequent to June 30, 2024. See Note 16—"Subsequent Events" for additional information.
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Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2023, and related notes thereto set forth in the Company’s Annual Report on Form 10-K, filed with the SEC on March 6, 2024. In the opinion of
management, all adjustments, consisting of a normal and recurring nature considered for a fair presentation, have been included. Operating results for the three and six months ended June 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
Principles of Consolidation and Basis of Presentation
The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and their wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of the condensed consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates.
Cash, Cash Equivalents and Restricted Cash
Cash consists of demand deposits at commercial banks. Cash equivalents consist of highly liquid investments in money market funds with original maturities of three months or less at the time of purchase. Restricted cash consists of cash held in an escrow account in accordance with a tenant's lease agreement. Restricted cash is reported in other assets in the accompanying condensed consolidated balance sheets.
The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown in the condensed consolidated statements of cash flows (amounts in thousands):
Six Months Ended
June 30,
20242023
Beginning of period:
Cash and cash equivalents$202,019 $12,917 
Restricted cash166 166 
Cash, cash equivalents and restricted cash$202,185 $13,083 
End of period:
Cash and cash equivalents$86,971 $21,497 
Restricted cash166 

166 
Cash, cash equivalents and restricted cash$87,137 $21,663 
Recently Issued Accounting Pronouncements
Segment Reporting
In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, or ASU 2023-07, to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. Early adoption of ASU 2023-07 is permitted. The Company is evaluating the disclosure requirements of ASU 2023-07 and does not anticipate that this update will have a material impact on its condensed consolidated financial statements.
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Real Estate
 6 Months Ended
Jun. 30, 2024
Real Estate [Abstract]  
Real Estate Real Estate
Acquisitions
During the six months ended June 30, 2024, the Company purchased seven real estate properties in three separate transactions, which were determined to be asset acquisitions. The Company allocated the purchase price to tangible assets, consisting of land, building and improvements, tenant improvements; intangible assets, consisting of in-place leases and right-of-use assets; and lease liabilities, based on the relative fair value method of allocating all accumulated costs.
The following table summarizes the consideration transferred, including acquisition costs, and the purchase price allocation for acquisitions during the six months ended June 30, 2024 (amounts in thousands):
Property Description Date AcquiredOwnership PercentageConsideration Transferred
(amount in thousands)
Brownsburg Healthcare Facility 02/26/2024100%$39,115 
Cave Creek Healthcare Facility03/20/2024100%19,355 
Marana Healthcare Facility03/20/2024100%16,156 
Surprise Healthcare Facility03/20/2024100%18,602 
Tucson Healthcare Facility V03/20/2024100%15,994 
Weslaco Healthcare Facility03/20/2024100%15,713 
Reading Healthcare Facility05/21/2024100%10,754 
Total $135,689 
Total
Land$8,821 
Building and improvements91,987 
Tenant improvements18,441 
In-place leases16,291 
Right-of-use assets177 
Total assets acquired135,717 
Lease liabilities(28)
Total liabilities acquired(28)
Net assets acquired$135,689 
The Company capitalized acquisition costs of $603,000, which are included in the allocation of the real estate acquisitions presented above.
Dispositions
On January 31, 2024, the Company sold one property for a sales price of $1,500,000, generating net proceeds of $1,439,000. The property was leased to a tenant under the common control of Vibra Healthcare, LLC, or Vibra. The Company was recognizing revenue from Vibra on a cash basis due to payment uncertainty. As a result of the property sale and lease termination, rental revenue from Vibra for the six months ended June 30, 2024, included $4,098,000 of lease termination income received from the former tenant, in addition to deferred rent from prior periods.
Investment Risk Concentrations
As of June 30, 2024, the Company did not have exposure to geographic concentration that accounted for at least 10.0% of rental revenue for the six months ended June 30, 2024.
As of June 30, 2024, the Company had one exposure to tenant concentration that accounted for at least 10.0% of rental revenue for the six months ended June 30, 2024. The leases with tenants at properties under the common control of Post Acute Medical, LLC and its affiliates accounted for 14.5% of rental revenue for the six months ended June 30, 2024.
Impairment Losses
The Company recorded impairment losses on real estate of $418,000 for both the three and six months ended June 30, 2024, as a result of triggering events that occurred at certain properties. The fair values of these properties were determined based on the guidance in Accounting Standards Codification, or ASC, 820, Fair Value Measurement. These impairments were allocated to the asset groups, for each respective property, on a pro-rata basis, which included land and buildings and
improvements. During the three months ended June 30, 2024, the Company recorded accelerated amortization of in-place lease intangible assets, above-market lease intangible assets and below-market lease intangible liabilities of $2,564,000, $2,667,000, and $1,025,000, respectively, as a result of lease terminations and amendments. During the six months ended June 30, 2024, the Company recorded accelerated amortization of in-place lease intangible assets, above-market lease intangible assets and below-market lease intangible liabilities of $4,646,000, $2,825,000, and $2,038,000, respectively, as a result of lease terminations and amendments.
The Company recorded impairment losses on real estate of $6,364,000 and $6,708,000 (including goodwill impairments of $1,238,000 and $1,582,000), for the three and six months ended June 30, 2023, respectively, as a result of tenant related triggering events that occurred at certain properties. The fair values of these properties were determined based on the guidance in ASC 820, Fair Value Measurement. These impairments were allocated to the asset groups, for each respective property, on a pro-rata basis, which included land, buildings and improvements, and their related intangible assets. In addition, during both the three and six months ended June 30, 2023, the Company recorded an impairment of in-place lease and above-market lease intangible assets of $592,000 and $260,000, respectively.
Impairment losses on real estate and goodwill impairments, if any, are recorded as impairment losses in the accompanying condensed consolidated statements of comprehensive income. Impairments and accelerated amortization of in-place leases are included in depreciation and amortization in the accompanying condensed consolidated statements of comprehensive income. Impairments and accelerated amortization of above-market leases are recorded as a reduction to rental revenue in the accompanying condensed consolidated statements of comprehensive income. Impairments and accelerated amortization of below-market leases are recorded as an increase to rental revenue in the accompanying condensed consolidated statements of comprehensive income.
v3.24.2.u1
Intangible Assets, Net
 6 Months Ended
Jun. 30, 2024
Finite-Lived Intangible Assets, Net [Abstract]  
Intangible Assets, Net Intangible Assets, Net
Intangible assets, net, consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts):
 June 30, 2024December 31, 2023
In-place leases, net of accumulated amortization of $105,036 and $95,325, respectively (with a weighted average remaining life of 7.6 years and 7.8 years, respectively)
$126,960 $125,188 
Above-market leases, net of accumulated amortization of $7,033 and $7,131, respectively (with a weighted average remaining life of 6.2 years and 6.7 years, respectively)
6,111 9,811 
$133,071 $134,999 
The aggregate weighted average remaining life of the intangible assets was 7.6 years and 7.7 years as of June 30, 2024 and December 31, 2023, respectively.
Amortization of intangible assets was $10,594,000 and $6,466,000 for the three months ended June 30, 2024 and 2023, respectively, and $18,072,000 and $12,206,000 for the six months ended June 30, 2024 and 2023, respectively. Amortization of in-place leases is included in depreciation and amortization, and amortization of above-market leases is recorded as a reduction to rental revenue in the accompanying condensed consolidated statements of comprehensive income.
v3.24.2.u1
Intangible Liabilities, Net
 6 Months Ended
Jun. 30, 2024
Intangible Lease Liabilities, Net [Abstract]  
Intangible Liabilities, Net Intangible Liabilities, Net
Intangible liabilities, net, consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts):
June 30, 2024December 31, 2023
Below-market leases, net of accumulated amortization of $8,131 and $7,417, respectively (with a weighted average remaining life of 6.6 years and 7.4 years, respectively)
$7,699 $10,452 
Amortization of below-market leases was $1,366,000 and $373,000 for the three months ended June 30, 2024 and 2023, respectively, and $2,753,000 and $747,000 for the six months ended June 30, 2024 and 2023, respectively. Amortization of below-market leases is recorded as an increase to rental revenue in the accompanying condensed consolidated statements of comprehensive income.
v3.24.2.u1
Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases Leases
Lessor
The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants.
Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands):

June 30, 2024(1)
Period ending December 31, 2024$90,410 
2025178,582 
2026173,345 
2027170,250 
2028166,030 
Thereafter865,393 
Total$1,644,010 
(1)The table includes payments from tenants who have been moved to the cash basis of accounting for revenue recognition purposes that have continued to make rental payments as of June 30, 2024.
Lessee
The Company is subject to various non-cancellable operating lease agreements on which certain of its properties reside (ground leases) and for its corporate office.
The Company's operating leases do not provide implicit interest rates. In order to calculate the present value of the remaining operating lease payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, term of the underlying leases, and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating leases.
The effects of the Company's operating leases are recorded in right-of-use assets and lease liabilities on the condensed consolidated balance sheets.
As of June 30, 2024, the Company's weighted average IBR for its operating leases was 5.5%. The weighted average remaining lease term for the Company's operating leases was 35.9 years as of June 30, 2024.
The future rent payments, discounted by the Company's IBRs, under non-cancellable operating leases in effect as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
June 30, 2024
Period ending December 31, 2024$1,367 
20252,769 
20262,716 
20272,682 
20282,694 
Thereafter104,865 
Total undiscounted rental payments117,093 
Less imputed interest(76,149)
Total lease liabilities$40,944 
The following table provides details of the Company's total lease costs for the three and six months ended June 30, 2024 and 2023 (amounts in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
Location in Condensed Consolidated Statements of Comprehensive Income2024202320242023
Operating lease costs:
Ground lease costs (1)
Rental expenses$681 $681 $1,363 $1,363 
Corporate operating lease costsGeneral and administrative expenses187 189 376 376 
Supplemental disclosure of cash flows information:
Operating cash outflows for operating leases(2)
$176 $165 $419 $398 
Right-of-use assets obtained in exchange for new lease liabilities$28 $— $28 $— 
(1)The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying condensed consolidated statements of comprehensive income.
(2)Amounts are net of reimbursements the Company receives from tenants for certain operating ground leases.
Leases Leases
Lessor
The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants.
Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands):

June 30, 2024(1)
Period ending December 31, 2024$90,410 
2025178,582 
2026173,345 
2027170,250 
2028166,030 
Thereafter865,393 
Total$1,644,010 
(1)The table includes payments from tenants who have been moved to the cash basis of accounting for revenue recognition purposes that have continued to make rental payments as of June 30, 2024.
Lessee
The Company is subject to various non-cancellable operating lease agreements on which certain of its properties reside (ground leases) and for its corporate office.
The Company's operating leases do not provide implicit interest rates. In order to calculate the present value of the remaining operating lease payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, term of the underlying leases, and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating leases.
The effects of the Company's operating leases are recorded in right-of-use assets and lease liabilities on the condensed consolidated balance sheets.
As of June 30, 2024, the Company's weighted average IBR for its operating leases was 5.5%. The weighted average remaining lease term for the Company's operating leases was 35.9 years as of June 30, 2024.
The future rent payments, discounted by the Company's IBRs, under non-cancellable operating leases in effect as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
June 30, 2024
Period ending December 31, 2024$1,367 
20252,769 
20262,716 
20272,682 
20282,694 
Thereafter104,865 
Total undiscounted rental payments117,093 
Less imputed interest(76,149)
Total lease liabilities$40,944 
The following table provides details of the Company's total lease costs for the three and six months ended June 30, 2024 and 2023 (amounts in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
Location in Condensed Consolidated Statements of Comprehensive Income2024202320242023
Operating lease costs:
Ground lease costs (1)
Rental expenses$681 $681 $1,363 $1,363 
Corporate operating lease costsGeneral and administrative expenses187 189 376 376 
Supplemental disclosure of cash flows information:
Operating cash outflows for operating leases(2)
$176 $165 $419 $398 
Right-of-use assets obtained in exchange for new lease liabilities$28 $— $28 $— 
(1)The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying condensed consolidated statements of comprehensive income.
(2)Amounts are net of reimbursements the Company receives from tenants for certain operating ground leases.
v3.24.2.u1
Other Assets
 6 Months Ended
Jun. 30, 2024
Other Assets [Abstract]  
Other Assets Other Assets
Other assets consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands):
 June 30, 2024December 31, 2023
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $2,452 and $1,917, respectively
$1,738 $2,271 
Leasing commissions, net of accumulated amortization of $236 and $191, respectively
1,822 593 
Restricted cash166 166 
Tenant receivables2,655 2,398 
Straight-line rent receivable55,548 53,248 
Real estate deposits250 — 
Prepaid and other assets5,593 4,089 
Derivative assets17,356 17,060 
$85,128 $79,825 
v3.24.2.u1
Accounts Payable and Other Liabilities
 6 Months Ended
Jun. 30, 2024
Payables and Accruals [Abstract]  
Accounts Payable and Other Liabilities Accounts Payable and Other Liabilities
Accounts payable and other liabilities consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands):
 June 30, 2024December 31, 2023
Accounts payable and accrued expenses$8,274 $3,906 
Accrued interest expense1,590 1,714 
Accrued property taxes4,684 3,687 
Accrued personnel costs3,722 4,425 
Distributions payable to stockholders7,663 7,782 
Performance DSUs distributions payable338 1,140 
Tenant deposits1,789 877 
Deferred rental income10,682 6,393 
Derivative liabilities— 457 
$38,742 $30,381 
v3.24.2.u1
Credit Facility
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Credit Facility Credit Facility
The Company's outstanding credit facility as of June 30, 2024 and December 31, 2023 consisted of the following (amounts in thousands):
June 30, 2024December 31, 2023
2024 Variable rate term loan fixed through interest rate swaps$— $250,000 
2027 Variable rate term loan fixed through interest rate swaps250,000 — 
2028 Variable rate term loan fixed through interest rate swaps275,000 275,000 
Total credit facility, principal amount outstanding525,000 525,000 
Unamortized deferred financing costs related to credit facility term loans(3,699)(1,847)
Total credit facility, net of deferred financing costs$521,301 $523,153 
Significant activities regarding the credit facility during the six months ended June 30, 2024 include:
•On March 20, 2024 the Company, the Operating Partnership, and certain of the Company's subsidiaries, entered into a senior unsecured amended and restated term loan agreement, or the 2027 Term Loan Agreement, with Truist Bank, as Administrative Agent for the lenders, for aggregate commitments of $250,000,000, which may be increased, subject to lender approval, to an aggregate amount not to exceed $500,000,000. The maturity date for the 2027 Term Loan is March 20, 2027 and, at the Company's election, may be extended for a period of one year on no more than two occasions, subject to the satisfaction of certain conditions, including the payment of an extension fee. The 2027 Term Loan Agreement was entered into to replace the Company's prior term loan agreement, which was paid off in its entirety upon closing of the 2027 Term Loan Agreement.
•In connection with the pay-off of our prior term loan agreement and entering into the 2027 Term Loan Agreement, the Company recognized a loss on extinguishment of debt of $228,000 during the six months ended June 30, 2024. The loss on extinguishment of debt was recognized in interest expense in the accompanying condensed consolidated statements of comprehensive income.
The principal payments due on the credit facility as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Amount
Period ending December 31, 2024
$— 
2025— 
2026— 
2027250,000 
2028275,000 
Thereafter— 
$525,000 
v3.24.2.u1
Fair Value
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
Cash and cash equivalents, restricted cash, tenant receivables, prepaid and other assets, accounts payable and other liabilities—The Company considers the carrying values of these financial instruments, assets and liabilities, to approximate fair value because of the short period of time between origination of the instruments and their expected realization.
Credit facility—The outstanding principal of the credit facility was $525,000,000 and $525,000,000, which approximated its fair value due to the variable nature of the terms as of June 30, 2024 and December 31, 2023, respectively.
The fair value of the Company's credit facility is estimated based on the interest rates currently offered to the Company by its financial institutions.
Derivative instruments—The Company’s derivative instruments consist of interest rate swaps. These swaps are carried at fair value to comply with the provisions of ASC 820. The fair value of these instruments is determined using interest rate market pricing models. The Company incorporated credit valuation adjustments to appropriately reflect the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The Company determined that the inputs used to value its interest rate swaps, with the exception of the credit valuation adjustment, fall within Level 2 of the fair value hierarchy. The credit valuation adjustments associated with these instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and the respective
counterparty. However, as of June 30, 2024, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate swaps. As a result, the Company determined that its interest rate swaps valuation in its entirety is classified in Level 2 of the fair value hierarchy.
Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize or be liable for on disposition of the financial assets and liabilities.
The following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 (amounts in thousands):
 June 30, 2024
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets$— $17,356 $— $17,356 
Total assets at fair value$— $17,356 $— $17,356 
 December 31, 2023
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets$— $17,060 $— $17,060 
Total assets at fair value$— $17,060 $— $17,060 
Liabilities:
Derivative liabilities$— $457 $— $457 
Total liabilities at fair value$— $457 $— $457 
Derivative assets and liabilities are reported in the condensed consolidated balance sheets as other assets and accounts payable and other liabilities, respectively.
Real Estate Assets— As of June 30, 2024, two real estate assets were measured at an aggregate fair value of $15,500,000 and resulted in the recognition of an impairment loss of $418,000 for the six months ended June 30, 2024. The fair value was measured based on a third-party purchase offer for the assets, which resides within Level 2 of the fair value hierarchy.
As of December 31, 2023, six real estate assets were measured at an aggregate fair value of $37,600,000 and resulted in the recognition of an impairment loss of $20,758,000 for the year ended December 31, 2023. The fair value of three real estate assets of $21,400,000 were measured based on third-party purchase offers for the assets, which reside within Level 2 of the fair value hierarchy. One of the real estate assets was sold in 2024. The fair value of three real estate assets of $16,200,000 were measured using a direct capitalization method or comparable sales information, which reside within Level 3 of the fair value hierarchy.
The significant unobservable inputs for the Level 3 measurements include:
Significant Unobservable InputsDecember 31, 2023
Overall capitalization rate8.5%
Market rent per square foot$45.00
Range of comparable sale price per square foot$60.86 $98.04 
v3.24.2.u1
Derivative Instruments and Hedging Activities
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
Cash Flow Hedges of Interest Rate Risk
The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy.
For derivatives designated and qualifying as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest is incurred on the Company’s variable rate debt. During the next twelve months, the Company estimates that an additional $10,944,000 will be reclassified from accumulated other comprehensive income as a reduction to interest expense.
The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands):
Derivatives
Designated as
Hedging
Instruments		Balance
Sheet
Location		Effective
Dates		Maturity
Dates		June 30, 2024December 31, 2023
Outstanding
Notional
Amount		Fair Value ofOutstanding
Notional
Amount		Fair Value of
Assets(Liabilities)Assets(Liabilities)
Interest rate swaps(1)05/01/2022 to
05/01/2023		12/31/2024 to
01/31/2028		$525,000 $17,356 $— $525,000 $17,060 $(457)
(1)     Derivative assets and liabilities are reported in the condensed consolidated balance sheets as other assets and accounts payable and other liabilities, respectively.
The notional amount under the agreements is an indication of the extent of the Company’s involvement in each instrument at the time, but does not represent exposure to credit, interest rate or market risks.
The table below summarizes the amount of income and loss recognized on the interest rate derivatives designated as cash flow hedges for the three and six months ended June 30, 2024 and 2023 (amounts in thousands):
Derivatives in Cash Flow
Hedging Relationships		Amount of Income Recognized
in Other Comprehensive Income (Loss) on Derivatives		Location of Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Amount of Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income
Three Months Ended June 30, 2024
Interest rate swaps$2,393 Interest expense$4,508 $5,193 
Three Months Ended June 30, 2023
Interest rate swaps$11,464 Interest expense$4,082 $5,664 
Six Months Ended June 30, 2024
Interest rate swaps$9,786 Interest expense$9,033 $10,487 
Six Months Ended June 30, 2023
Interest rate swaps$6,770 Interest expense$7,652 $11,286 
Credit Risk-Related Contingent Features
The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. The Company records credit risk valuation adjustments on its interest rate swaps based on the respective credit quality of the Company and the counterparty. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. As of both June 30, 2024 and December 31, 2023, the Company had no derivatives with fair value in a net liability position, inclusive of accrued interest but excluding any adjustment for nonperformance risk related to the agreement. As of both June 30, 2024 and December 31, 2023, there were no termination events or events of default related to the interest rate swaps.
Tabular Disclosure Offsetting Derivatives
The Company has elected not to offset derivative positions in its condensed consolidated financial statements. The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of June 30, 2024 and December 31, 2023 (amounts in thousands):
Offsetting of Derivative Assets    
    Gross Amounts Not Offset in the Balance Sheet 
 Gross
Amounts of
Recognized
Assets		Gross Amounts
Offset in the
Balance Sheet		Net Amounts of
Assets Presented in
the Balance Sheet		Financial Instruments
Collateral		Cash CollateralNet
Amount
June 30, 2024$17,356 $— $17,356 $— $— $17,356 
December 31, 2023$17,060 $— $17,060 $(457)$— $16,603 
Offsetting of Derivative Liabilities
Gross Amounts Not Offset in the Balance Sheet
Gross
Amounts of
Recognized
Liabilities		Gross Amounts
Offset in the
Balance Sheet		Net Amounts of
Liabilities
Presented in the
Balance Sheet		Financial Instruments
Collateral		Cash CollateralNet
Amount
June 30, 2024$— $— $— $— $— $— 
December 31, 2023$457 $— $457 $(457)$— $— 
v3.24.2.u1
Stockholders' Equity
 6 Months Ended
Jun. 30, 2024
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders' Equity
On April 8, 2024, the Company amended its charter to effect a one-for-four reverse stock split, effective May 1, 2024. On June 13, 2024, authorized but unissued shares of Class I Common Stock, Class T Common Stock and Class T2 Common Stock were reclassified into additional shares of Class A Common Stock. Class A Common Stock was then immediately renamed “Common Stock” and is the sole class of stock traded on the NYSE. See Note 1—"Organization and Business Operations" for further details.
Distributions Payable
As of June 30, 2024, the Company had distributions payable of $7,663,000, which were paid in cash on July 15, 2024.
On April 5, 2024, the board of directors, or the Board, approved the termination of the distribution reinvestment plan, effective May 1, 2024.
Share Repurchases
The Company’s Amended and Restated Share Repurchase Program, or the SRP, allowed for repurchases of shares of the Company’s Common Stock upon meeting certain criteria. On April 5, 2024, the Board approved the suspension of the SRP, effective immediately, and the termination of the SRP, effective upon the Listing.
During the six months ended June 30, 2024, the Company repurchased 283,512 Class A shares, Class I shares and Class T shares of Common Stock, after giving effect to the Reverse Stock Split (246,024 Class A shares, 7,574 Class I shares and 29,914 Class T shares), for an aggregate purchase price of $8,482,000 (an average of $29.92 per share). During the six months ended June 30, 2023, the Company repurchased 182,298 Class A shares, Class I shares and Class T shares of Common Stock, after giving effect to the Reverse Stock Split (140,021 Class A shares, 10,986 Class I shares and 31,291 Class T shares), for an aggregate purchase price of $5,994,000 (an average of $32.88 per share).
Accumulated Other Comprehensive Income
The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the six months ended June 30, 2024 and 2023 (amounts in thousands):
Unrealized Income
on Derivative
Instruments
Balance as of December 31, 2023$16,603 
Other comprehensive income before reclassification9,786 
Amount of income reclassified from accumulated other comprehensive income to net income(9,033)
Other comprehensive income753 
Balance as of June 30, 2024$17,356 
Unrealized Loss
on Derivative
Instruments
Balance as of December 31, 2022$27,990 
Other comprehensive income before reclassification6,770 
Amount of income reclassified from accumulated other comprehensive income to net income(7,652)
Other comprehensive loss(882)
Balance as of June 30, 2023$27,108 
The following table presents reclassifications out of accumulated other comprehensive income for the six months ended June 30, 2024 and 2023 (amounts in thousands):
Details about Accumulated Other
Comprehensive Income Components		Income Amounts Reclassified from
Accumulated Other Comprehensive Income to Net Income		Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income
Six Months Ended
June 30,
20242023
Interest rate swap contracts$(9,033)

$(7,652)Interest expense
v3.24.2.u1
Earnings Per Share
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The Company calculates basic earnings per share by dividing net income attributable to common stockholders for the period by the weighted average shares of its Common Stock outstanding for that period. Diluted earnings per share is computed based on the weighted average number of shares outstanding and all potentially dilutive securities, which include non-vested shares of restricted Common Stock and performance-based deferred stock unit awards, or Performance DSUs. The non-vested shares of restricted Common Stock contain non-forfeitable dividend distribution rights. The Performance DSUs also have dividend distribution rights which are paid to the grantee only in the event that the applicable performance criteria is achieved and the Performance DSUs vest. For the three and six months ended June 30, 2024, diluted earnings per share reflected the effect of 371,000 and 403,000, respectively, of non-vested shares of restricted Common Stock and Performance DSUs that were outstanding after giving effect to the Reverse Stock Split. For the three and six months ended June 30, 2023, diluted earnings per share reflected the effect of 464,000 and 463,000, respectively, of non-vested shares of restricted Common Stock and Performance DSUs that were outstanding after giving effect to the Reverse Stock Split.
v3.24.2.u1
Stock-based Compensation
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
On March 6, 2020, the Board approved the A&R Incentive Plan pursuant to which the Company has the authority and power to grant awards of restricted shares of its Common Stock to its directors, executive officers, and employees.
The Company recognized no accelerated stock-based compensation expense for the three months ended June 30, 2024. The Company recognized accelerated stock-based compensation expense of $863,000 for the six months ended June 30, 2024, as a result of the acceleration of awards pursuant to severance agreements with two departed executive officers. The Company recognized total stock-based compensation expense of $1,163,000 and $1,251,000, respectively, for the three months ended June 30, 2024 and 2023, and $2,487,000 and $2,493,000, respectively, for the six months ended June 30, 2024 and 2023. Stock-based compensation expense is reported in general and administrative expenses in the accompanying condensed consolidated statements of comprehensive income, and forfeitures are recorded as they occur.
v3.24.2.u1
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Legal Proceedings
In the ordinary course of business, the Company may become subject to litigation or claims. As of June 30, 2024, there were, and currently there are, no material pending legal proceedings to which the Company is a party. While the resolution of a lawsuit or proceeding may have an impact to the Company's financial results for the period in which it is resolved, the Company believes that the final resolution of the lawsuits or proceedings in which it is currently involved, either individually or in the aggregate, will not have a material adverse effect on its financial position, results of operations or liquidity.
v3.24.2.u1
Subsequent Events
 6 Months Ended
Jun. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Distributions Paid to Stockholders
On July 15, 2024, the Company paid cash distributions of $7,663,000 to the Company's stockholders of record as of the close of business on July 1, 2024.
Distributions Authorized
On July 16, 2024, the Board approved and authorized a distribution payable on August 15, 2024, to the Company's stockholders of record as of the close of business on July 31, 2024. The distribution will be equal to $0.1333 per share of Common Stock, representing an annualized amount of $1.60 per share.
"Dutch Auction" Tender Offer
On June 13, 2024, in conjunction with the Listing, the Company commenced the Tender Offer to purchase shares of its Common Stock for cash at a price per share of not greater than $24.00 nor less than $22.60, net to the seller in cash, less any applicable withholding taxes and without interest, for a maximum aggregate purchase price of no more than $50,000,000. The Tender Offer expired on July 19, 2024. As a result of the Tender Offer, the Company accepted for purchase 2,212,389 shares of Common Stock (which represented approximately 3.9% of the total number of shares of Common Stock outstanding as of July 19, 2024) at a purchase price of $22.60 per share, for an aggregate purchase price of approximately $50,000,000, excluding related fees and expenses. The Company funded the Tender Offer, and will fund all related costs, with its available cash.
Acquisition of Fort Smith Healthcare Facility
On July 25, 2024, the Company purchased 100% of the ownership interests in a healthcare property in Fort Smith, Arkansas, or the Fort Smith Healthcare Facility, for a contract purchase price of $28,250,000.
Draw on Credit Facility
On July 24, 2024, the Company borrowed $20,000,000 on its revolving line of credit to fund the acquisition of the Fort Smith Healthcare Facility.
Time-Based Vesting Restricted Share Grant to Employees
On July 2, 2024, the Company granted its employees an aggregate of 87,269 time-based vesting restricted shares of Common Stock, which, subject to each employee's continuous employment through the applicable vesting dates, will vest 25% annually commencing on July 2, 2025. As of July 2, 2024, there was $1,802,000 of total unrecognized stock-based compensation expense related to these awards, which will be recognized over the vesting period. These awards were granted under and subject to the terms of the A&R Incentive Plan and an award agreement.
v3.24.2.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Pay vs Performance Disclosure        
Net Income (Loss) $ 4,628 $ 3,855 $ 19,608 $ 18,055
v3.24.2.u1
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2024
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
v3.24.2.u1
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Principles of Consolidation and Basis of Presentation
Principles of Consolidation and Basis of Presentation
The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership, and their wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
Use of Estimates
The preparation of the condensed consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates.
Cash, Cash Equivalents and Restricted Cash
Cash, Cash Equivalents and Restricted Cash
Cash consists of demand deposits at commercial banks. Cash equivalents consist of highly liquid investments in money market funds with original maturities of three months or less at the time of purchase. Restricted cash consists of cash held in an escrow account in accordance with a tenant's lease agreement. Restricted cash is reported in other assets in the accompanying condensed consolidated balance sheets.
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements
Segment Reporting
In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, or ASU 2023-07, to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. Early adoption of ASU 2023-07 is permitted. The Company is evaluating the disclosure requirements of ASU 2023-07 and does not anticipate that this update will have a material impact on its condensed consolidated financial statements.
v3.24.2.u1
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Reconciliation of Cash, Cash Equivalents and Restricted Cash
The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown in the condensed consolidated statements of cash flows (amounts in thousands):
Six Months Ended
June 30,
20242023
Beginning of period:
Cash and cash equivalents$202,019 $12,917 
Restricted cash166 166 
Cash, cash equivalents and restricted cash$202,185 $13,083 
End of period:
Cash and cash equivalents$86,971 $21,497 
Restricted cash166 

166 
Cash, cash equivalents and restricted cash$87,137 $21,663 
v3.24.2.u1
Real Estate (Tables)
 6 Months Ended
Jun. 30, 2024
Real Estate [Abstract]  
Schedule of Consideration Transferred for Properties Acquired
The following table summarizes the consideration transferred, including acquisition costs, and the purchase price allocation for acquisitions during the six months ended June 30, 2024 (amounts in thousands):
Property Description Date AcquiredOwnership PercentageConsideration Transferred
(amount in thousands)
Brownsburg Healthcare Facility 02/26/2024100%$39,115 
Cave Creek Healthcare Facility03/20/2024100%19,355 
Marana Healthcare Facility03/20/2024100%16,156 
Surprise Healthcare Facility03/20/2024100%18,602 
Tucson Healthcare Facility V03/20/2024100%15,994 
Weslaco Healthcare Facility03/20/2024100%15,713 
Reading Healthcare Facility05/21/2024100%10,754 
Total $135,689 
Schedule of Allocation of Acquisitions
Total
Land$8,821 
Building and improvements91,987 
Tenant improvements18,441 
In-place leases16,291 
Right-of-use assets177 
Total assets acquired135,717 
Lease liabilities(28)
Total liabilities acquired(28)
Net assets acquired$135,689 
v3.24.2.u1
Intangible Assets, Net (Tables)
 6 Months Ended
Jun. 30, 2024
Finite-Lived Intangible Assets, Net [Abstract]  
Schedule of Intangible Assets, Net
Intangible assets, net, consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts):
 June 30, 2024December 31, 2023
In-place leases, net of accumulated amortization of $105,036 and $95,325, respectively (with a weighted average remaining life of 7.6 years and 7.8 years, respectively)
$126,960 $125,188 
Above-market leases, net of accumulated amortization of $7,033 and $7,131, respectively (with a weighted average remaining life of 6.2 years and 6.7 years, respectively)
6,111 9,811 
$133,071 $134,999 
v3.24.2.u1
Intangible Liabilities, Net (Tables)
 6 Months Ended
Jun. 30, 2024
Intangible Lease Liabilities, Net [Abstract]  
Schedule of Intangible Liabilities, Net
Intangible liabilities, net, consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts):
June 30, 2024December 31, 2023
Below-market leases, net of accumulated amortization of $8,131 and $7,417, respectively (with a weighted average remaining life of 6.6 years and 7.4 years, respectively)
$7,699 $10,452 
v3.24.2.u1
Leases (Tables)
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Schedule of Future Minimum Rent to Lessor from Operating Leases
Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands):

June 30, 2024(1)
Period ending December 31, 2024$90,410 
2025178,582 
2026173,345 
2027170,250 
2028166,030 
Thereafter865,393 
Total$1,644,010 
(1)The table includes payments from tenants who have been moved to the cash basis of accounting for revenue recognition purposes that have continued to make rental payments as of June 30, 2024.
Schedule of Future Minimum Rent from Lessee for Operating Leases
The future rent payments, discounted by the Company's IBRs, under non-cancellable operating leases in effect as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
June 30, 2024
Period ending December 31, 2024$1,367 
20252,769 
20262,716 
20272,682 
20282,694 
Thereafter104,865 
Total undiscounted rental payments117,093 
Less imputed interest(76,149)
Total lease liabilities$40,944 
Schedule of Lease Cost
The following table provides details of the Company's total lease costs for the three and six months ended June 30, 2024 and 2023 (amounts in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
Location in Condensed Consolidated Statements of Comprehensive Income2024202320242023
Operating lease costs:
Ground lease costs (1)
Rental expenses$681 $681 $1,363 $1,363 
Corporate operating lease costsGeneral and administrative expenses187 189 376 376 
Supplemental disclosure of cash flows information:
Operating cash outflows for operating leases(2)
$176 $165 $419 $398 
Right-of-use assets obtained in exchange for new lease liabilities$28 $— $28 $— 
(1)The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying condensed consolidated statements of comprehensive income.
(2)Amounts are net of reimbursements the Company receives from tenants for certain operating ground leases.
v3.24.2.u1
Other Assets (Tables)
 6 Months Ended
Jun. 30, 2024
Other Assets [Abstract]  
Schedule of Other Assets
Other assets consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands):
 June 30, 2024December 31, 2023
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $2,452 and $1,917, respectively
$1,738 $2,271 
Leasing commissions, net of accumulated amortization of $236 and $191, respectively
1,822 593 
Restricted cash166 166 
Tenant receivables2,655 2,398 
Straight-line rent receivable55,548 53,248 
Real estate deposits250 — 
Prepaid and other assets5,593 4,089 
Derivative assets17,356 17,060 
$85,128 $79,825 
v3.24.2.u1
Accounts Payable and Other Liabilities (Tables)
 6 Months Ended
Jun. 30, 2024
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Other Liabilities
Accounts payable and other liabilities consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands):
 June 30, 2024December 31, 2023
Accounts payable and accrued expenses$8,274 $3,906 
Accrued interest expense1,590 1,714 
Accrued property taxes4,684 3,687 
Accrued personnel costs3,722 4,425 
Distributions payable to stockholders7,663 7,782 
Performance DSUs distributions payable338 1,140 
Tenant deposits1,789 877 
Deferred rental income10,682 6,393 
Derivative liabilities— 457 
$38,742 $30,381 
v3.24.2.u1
Credit Facility (Tables)
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Credit Facility
The Company's outstanding credit facility as of June 30, 2024 and December 31, 2023 consisted of the following (amounts in thousands):
June 30, 2024December 31, 2023
2024 Variable rate term loan fixed through interest rate swaps$— $250,000 
2027 Variable rate term loan fixed through interest rate swaps250,000 — 
2028 Variable rate term loan fixed through interest rate swaps275,000 275,000 
Total credit facility, principal amount outstanding525,000 525,000 
Unamortized deferred financing costs related to credit facility term loans(3,699)(1,847)
Total credit facility, net of deferred financing costs$521,301 $523,153 
Schedule of Future Principal Payments Due on Debt
The principal payments due on the credit facility as of June 30, 2024, for the period ending December 31, 2024, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
Amount
Period ending December 31, 2024
$— 
2025— 
2026— 
2027250,000 
2028275,000 
Thereafter— 
$525,000 
v3.24.2.u1
Fair Value (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 (amounts in thousands):
 June 30, 2024
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets$— $17,356 $— $17,356 
Total assets at fair value$— $17,356 $— $17,356 
 December 31, 2023
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets$— $17,060 $— $17,060 
Total assets at fair value$— $17,060 $— $17,060 
Liabilities:
Derivative liabilities$— $457 $— $457 
Total liabilities at fair value$— $457 $— $457 
Summary of Significant Unobservable Inputs
The significant unobservable inputs for the Level 3 measurements include:
Significant Unobservable InputsDecember 31, 2023
Overall capitalization rate8.5%
Market rent per square foot$45.00
Range of comparable sale price per square foot$60.86 $98.04 
v3.24.2.u1
Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of the Notional Amount and Fair Value of Derivative Instruments
The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands):
Derivatives
Designated as
Hedging
Instruments		Balance
Sheet
Location		Effective
Dates		Maturity
Dates		June 30, 2024December 31, 2023
Outstanding
Notional
Amount		Fair Value ofOutstanding
Notional
Amount		Fair Value of
Assets(Liabilities)Assets(Liabilities)
Interest rate swaps(1)05/01/2022 to
05/01/2023		12/31/2024 to
01/31/2028		$525,000 $17,356 $— $525,000 $17,060 $(457)
(1)     Derivative assets and liabilities are reported in the condensed consolidated balance sheets as other assets and accounts payable and other liabilities, respectively.
Schedule of Income and Losses Recognized on Derivative Instruments
The table below summarizes the amount of income and loss recognized on the interest rate derivatives designated as cash flow hedges for the three and six months ended June 30, 2024 and 2023 (amounts in thousands):
Derivatives in Cash Flow
Hedging Relationships		Amount of Income Recognized
in Other Comprehensive Income (Loss) on Derivatives		Location of Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Amount of Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income
Three Months Ended June 30, 2024
Interest rate swaps$2,393 Interest expense$4,508 $5,193 
Three Months Ended June 30, 2023
Interest rate swaps$11,464 Interest expense$4,082 $5,664 
Six Months Ended June 30, 2024
Interest rate swaps$9,786 Interest expense$9,033 $10,487 
Six Months Ended June 30, 2023
Interest rate swaps$6,770 Interest expense$7,652 $11,286 
Schedule of Offsetting of Derivative Assets The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of June 30, 2024 and December 31, 2023 (amounts in thousands):
Offsetting of Derivative Assets    
    Gross Amounts Not Offset in the Balance Sheet 
 Gross
Amounts of
Recognized
Assets		Gross Amounts
Offset in the
Balance Sheet		Net Amounts of
Assets Presented in
the Balance Sheet		Financial Instruments
Collateral		Cash CollateralNet
Amount
June 30, 2024$17,356 $— $17,356 $— $— $17,356 
December 31, 2023$17,060 $— $17,060 $(457)$— $16,603 
Schedule of Offsetting of Derivative Liabilities
Offsetting of Derivative Liabilities
Gross Amounts Not Offset in the Balance Sheet
Gross
Amounts of
Recognized
Liabilities		Gross Amounts
Offset in the
Balance Sheet		Net Amounts of
Liabilities
Presented in the
Balance Sheet		Financial Instruments
Collateral		Cash CollateralNet
Amount
June 30, 2024$— $— $— $— $— $— 
December 31, 2023$457 $— $457 $(457)$— $— 
v3.24.2.u1
Stockholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2024
Stockholders' Equity Note [Abstract]  
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the six months ended June 30, 2024 and 2023 (amounts in thousands):
Unrealized Income
on Derivative
Instruments
Balance as of December 31, 2023$16,603 
Other comprehensive income before reclassification9,786 
Amount of income reclassified from accumulated other comprehensive income to net income(9,033)
Other comprehensive income753 
Balance as of June 30, 2024$17,356 
Unrealized Loss
on Derivative
Instruments
Balance as of December 31, 2022$27,990 
Other comprehensive income before reclassification6,770 
Amount of income reclassified from accumulated other comprehensive income to net income(7,652)
Other comprehensive loss(882)
Balance as of June 30, 2023$27,108 
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
The following table presents reclassifications out of accumulated other comprehensive income for the six months ended June 30, 2024 and 2023 (amounts in thousands):
Details about Accumulated Other
Comprehensive Income Components		Income Amounts Reclassified from
Accumulated Other Comprehensive Income to Net Income		Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income
Six Months Ended
June 30,
20242023
Interest rate swap contracts$(9,033)

$(7,652)Interest expense
v3.24.2.u1
Organization and Business Operations (Details)
 3 Months Ended 6 Months Ended
Jun. 13, 2024
USD ($)
$ / shares
Apr. 08, 2024
Jun. 30, 2024
USD ($)
$ / shares
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
$ / shares
Jun. 30, 2023
USD ($)
May 01, 2024
$ / shares
Apr. 30, 2024
$ / shares
Dec. 31, 2023
$ / shares
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Common stock, par value (in dollars per share) | $ / shares $ 0.01   $ 0.01   $ 0.01   $ 0.01 $ 0.04 $ 0.01
Repurchase of common stock | $     $ 4,196,000 $ 2,492,000 $ 8,482,000 $ 5,994,000      
Reverse stock split, conversion ratio   0.25              
Dutch Auction                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Incurred deferred costs | $     $ 1,863,000   $ 1,863,000        
Maximum | Dutch Auction                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Repurchase of common stock | $ $ 50,000,000                
Repurchase of common stock, average price per share (in dollars per share) | $ / shares $ 24.00                
Minimum | Dutch Auction                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Repurchase of common stock, average price per share (in dollars per share) | $ / shares $ 22.60                
Operating Partnership                  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]                  
Ownership interest (as a percentage)         100.00%        
v3.24.2.u1
Summary of Significant Accounting Policies (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
Dec. 31, 2022
Accounting Policies [Abstract]        
Cash and cash equivalents $ 86,971 $ 202,019 $ 21,497 $ 12,917
Restricted cash 166 166 166 166
Cash, cash equivalents and restricted cash $ 87,137 $ 202,185 $ 21,663 $ 13,083
v3.24.2.u1
Real Estate - Narrative (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jan. 31, 2024
USD ($)
property
Jun. 30, 2024
USD ($)
tenant
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
acquisition
property
tenant
Jun. 30, 2023
USD ($)
Real Estate [Line Items]          
Number of real estate properties acquired | property       7  
Number of transactions | acquisition       3  
Capitalized acquisition costs       $ 603  
Proceeds from real estate dispositions       1,439 $ 12,241
Impairment loss   $ 418 $ 6,364 $ 418 $ 6,708
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]       Impairment loss Impairment loss
Impairment of lease liabilities   1,025   $ 2,038  
Impairment loss on goodwill     1,238   $ 1,582
In-place leases          
Real Estate [Line Items]          
Impairment of intangible assets   2,564 $ 592 4,646  
Above-market leases          
Real Estate [Line Items]          
Impairment of intangible assets   $ 2,667   $ 2,825 $ 260
Revenue | Customer Concentration Risk | One Tenant          
Real Estate [Line Items]          
Number of major tenants | tenant   1   1  
Revenue | Customer Concentration Risk | Post Acute Medical LLC and affiliates          
Real Estate [Line Items]          
Concentration risk, percentage       14.50%  
Disposal Group, Disposed of by Sale, Not Discontinued Operations          
Real Estate [Line Items]          
Number of real estate properties | property 1        
Aggregate sales price $ 1,500        
Proceeds from real estate dispositions $ 1,439        
Termination lease income       $ 4,098  
v3.24.2.u1
Real Estate - Schedule of Consideration Transferred for Properties Acquired (Details) - USD ($)
$ in Thousands
 6 Months Ended
May 21, 2024
Mar. 20, 2024
Feb. 26, 2024
Jun. 30, 2024
Business Acquisition [Line Items]        
Consideration transferred       $ 135,689
Brownsburg Healthcare Facility        
Business Acquisition [Line Items]        
Ownership Percentage     100.00%  
Consideration transferred     $ 39,115  
Cave Creek Healthcare Facility        
Business Acquisition [Line Items]        
Ownership Percentage   100.00%    
Consideration transferred   $ 19,355    
Marana Healthcare Facility        
Business Acquisition [Line Items]        
Ownership Percentage   100.00%    
Consideration transferred   $ 16,156    
Surprise Healthcare Facility        
Business Acquisition [Line Items]        
Ownership Percentage   100.00%    
Consideration transferred   $ 18,602    
Tucson Healthcare Facility V        
Business Acquisition [Line Items]        
Ownership Percentage   100.00%    
Consideration transferred   $ 15,994    
Weslaco Healthcare Facility        
Business Acquisition [Line Items]        
Ownership Percentage   100.00%    
Consideration transferred   $ 15,713    
Reading Healthcare Facility        
Business Acquisition [Line Items]        
Ownership Percentage 100.00%      
Consideration transferred $ 10,754      
v3.24.2.u1
Real Estate - Schedule of Allocation of Acquisitions (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
Real Estate [Abstract]  
Land $ 8,821
Building and improvements 91,987
Tenant improvements 18,441
In-place leases 16,291
Right-of-use assets 177
Total assets acquired 135,717
Lease liabilities (28)
Total liabilities acquired (28)
Net assets acquired $ 135,689
v3.24.2.u1
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 112,069 $ 102,456
Weighted average remaining useful life of intangible assets (in years) 7 years 7 months 6 days 7 years 8 months 12 days
Intangible assets, net of accumulated amortization $ 133,071 $ 134,999
In-place leases    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 105,036 $ 95,325
Weighted average remaining useful life of intangible assets (in years) 7 years 7 months 6 days 7 years 9 months 18 days
Intangible assets, net of accumulated amortization $ 126,960 $ 125,188
Above-market leases    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 7,033 $ 7,131
Weighted average remaining useful life of intangible assets (in years) 6 years 2 months 12 days 6 years 8 months 12 days
Intangible assets, net of accumulated amortization $ 6,111 $ 9,811
v3.24.2.u1
Intangible Assets, Net - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Finite-Lived Intangible Assets, Net [Abstract]          
Weighted average remaining useful life of intangible assets (in years)     7 years 7 months 6 days   7 years 8 months 12 days
Amortization of intangible assets $ 10,594 $ 6,466 $ 18,072 $ 12,206  
v3.24.2.u1
Intangible Liabilities, Net - Schedule of Intangible Liabilities, Net (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Intangible Lease Liabilities, Net [Abstract]    
Accumulated amortization of below-market leases $ 8,131 $ 7,417
Weighted average remaining life of below-market leases 6 years 7 months 6 days 7 years 4 months 24 days
Below-market leases, net of accumulated amortization $ 7,699 $ 10,452
v3.24.2.u1
Intangible Liabilities, Net - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Intangible Lease Liabilities, Net [Abstract]        
Amortization of below-market leases $ 1,366 $ 373 $ 2,753 $ 747
v3.24.2.u1
Leases - Schedule of Future Minimum Rent to Lessor from Operating Leases (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
Leases [Abstract]  
Period ending December 31, 2024 $ 90,410
2025 178,582
2026 173,345
2027 170,250
2028 166,030
Thereafter 865,393
Total $ 1,644,010
v3.24.2.u1
Leases - Schedule of Rent Payments from Lessee (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Leases [Abstract]    
Period ending December 31, 2024 $ 1,367  
2025 2,769  
2026 2,716  
2027 2,682  
2028 2,694  
Thereafter 104,865  
Total undiscounted rental payments 117,093  
Less imputed interest (76,149)  
Total lease liabilities $ 40,944 $ 41,158
Weighted average IBR 5.50%  
Weighted average remaining lease term 35 years 10 months 24 days  
v3.24.2.u1
Leases - Schedule of Lease Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Supplemental disclosure of cash flows information:        
Operating cash outflows for operating leases $ 176 $ 165 $ 419 $ 398
Right-of-use assets obtained in exchange for new lease liabilities 28 0 28 0
Rental expenses        
Lessee, Lease, Description [Line Items]        
Operating lease costs 681 681 1,363 1,363
General and administrative expenses        
Lessee, Lease, Description [Line Items]        
Operating lease costs $ 187 $ 189 $ 376 $ 376
v3.24.2.u1
Other Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Other Assets [Abstract]    
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $2,452 and $1,917, respectively $ 1,738 $ 2,271
Leasing commissions, net of accumulated amortization of $236 and $191, respectively 1,822 593
Restricted cash 166 166
Tenant receivables 2,655 2,398
Straight-line rent receivable 55,548 53,248
Real estate deposits 250 0
Prepaid and other assets 5,593 4,089
Derivative assets 17,356 17,060
Total other assets 85,128 79,825
Deferred financing costs, related to the revolver portion of the credit facility, accumulated amortization 2,452 1,917
Leasing commissions, accumulated amortization $ 236 $ 191
v3.24.2.u1
Accounts Payable and Other Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Accounts payable and accrued expenses $ 8,274 $ 3,906
Accrued interest expense 1,590 1,714
Accrued property taxes 4,684 3,687
Accrued personnel costs 3,722 4,425
Distributions payable to stockholders 7,663 7,782
Performance DSUs distributions payable 338 1,140
Tenant deposits 1,789 877
Deferred rental income 10,682 6,393
Derivative liabilities 0 457
Total accounts payable and other liabilities $ 38,742 $ 30,381
v3.24.2.u1
Credit Facility - Schedule of Credit Facility (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Line of Credit Facility [Line Items]    
Total credit facility, principal amount outstanding $ 525,000 $ 525,000
Unamortized deferred financing costs related to credit facility term loans (3,699) (1,847)
Total credit facility, net of deferred financing costs 521,301 523,153
Term Loan | 2024 Variable rate term loan fixed through interest rate swaps    
Line of Credit Facility [Line Items]    
Total credit facility, principal amount outstanding 0 250,000
Term Loan | 2027 Variable rate term loan fixed through interest rate swaps    
Line of Credit Facility [Line Items]    
Total credit facility, principal amount outstanding 250,000 0
Term Loan | 2028 Variable rate term loan fixed through interest rate swaps    
Line of Credit Facility [Line Items]    
Total credit facility, principal amount outstanding $ 275,000 $ 275,000
v3.24.2.u1
Credit Facility - Narrative (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
USD ($)
extension
Jun. 30, 2023
USD ($)
Mar. 20, 2024
USD ($)
Line of Credit Facility [Line Items]      
2027 term loan, extension period 1 year    
Number of extensions | extension 2    
Loss on extinguishment of debt $ 228 $ 0  
2027 Term Loan | Term Loan      
Line of Credit Facility [Line Items]      
Commitments available     $ 250,000
Maximum borrowing capacity     $ 500,000
v3.24.2.u1
Credit Facility - Schedule of Principal Payments Due on Credit Facility (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
Debt Disclosure [Abstract]  
Period ending December 31, 2024 $ 0
2025 0
2026 0
2027 250,000
2028 275,000
Thereafter 0
Total $ 525,000
v3.24.2.u1
Fair Value - Narrative (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total credit facility, principal amount outstanding $ 525,000 $ 525,000
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accounts payable and other liabilities Accounts payable and other liabilities
Real estate assets $ 1,722,700 $ 1,628,652
Impairment loss on real estate 418 20,758
Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Real estate assets   37,600
Significant Other Observable Inputs (Level 2) | Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Real estate assets $ 15,500 21,400
Significant Unobservable Inputs (Level 3) | Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Real estate assets   $ 16,200
v3.24.2.u1
Fair Value - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Assets:    
Derivative assets $ 17,356 $ 17,060
Liabilities:    
Derivative liabilities 0 457
Recurring basis    
Assets:    
Derivative assets 17,356 17,060
Total assets at fair value 17,356 17,060
Liabilities:    
Derivative liabilities   457
Total liabilities at fair value   457
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis    
Assets:    
Derivative assets 0 0
Total assets at fair value 0 0
Liabilities:    
Derivative liabilities   0
Total liabilities at fair value   0
Significant Other Observable Inputs (Level 2) | Recurring basis    
Assets:    
Derivative assets 17,356 17,060
Total assets at fair value 17,356 17,060
Liabilities:    
Derivative liabilities   457
Total liabilities at fair value   457
Significant Unobservable Inputs (Level 3) | Recurring basis    
Assets:    
Derivative assets 0 0
Total assets at fair value $ 0 0
Liabilities:    
Derivative liabilities   0
Total liabilities at fair value   $ 0
v3.24.2.u1
Fair Value - Schedule of Significant Unobservable Inputs (Details) - Significant Unobservable Inputs (Level 3)
Dec. 31, 2023
$ / sqft
Overall capitalization rate  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Real estate assets, measurement input 0.085
Market rent per square foot | Maximum  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Real estate assets, measurement input 45.00
Range of comparable sale price per square foot | Minimum  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Real estate assets, measurement input 60.86
Range of comparable sale price per square foot | Maximum  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Real estate assets, measurement input 98.04
v3.24.2.u1
Derivative Instruments and Hedging Activities - Narrative (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Additional gain expected to be reclassified from AOCI into earnings during next twelve months $ 10,944
v3.24.2.u1
Derivative Instruments and Hedging Activities - Schedule of the Notional Amount and Fair Value of Derivative Instruments (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Derivatives, Fair Value [Line Items]    
Fair Value of Asset $ 17,356 $ 17,060
Fair Value of Liability 0 (457)
Interest rate swaps | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Outstanding Notional Amount 525,000 525,000
Interest rate swaps | Designated as Hedging Instrument | Other Assets    
Derivatives, Fair Value [Line Items]    
Fair Value of Asset 17,356 17,060
Interest rate swaps | Designated as Hedging Instrument | Accounts Payable and Other Liabilities    
Derivatives, Fair Value [Line Items]    
Fair Value of Liability $ 0 $ (457)
v3.24.2.u1
Derivative Instruments and Hedging Activities - Schedule of Income and Losses Recognized on Derivative Instruments (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]        
Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income $ 5,193 $ 5,664 $ 10,487 $ 11,286
Interest rate swaps        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of Income Recognized in Other Comprehensive Income (Loss) on Derivatives 2,393 11,464 9,786 6,770
Interest rate swaps | Interest expense        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of Income Reclassified From Accumulated Other Comprehensive Income to Net Income $ 4,508 $ 4,082 $ 9,033 $ 7,652
v3.24.2.u1
Derivative Instruments and Hedging Activities - Schedule of Offsetting of Derivative Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Assets $ 17,356 $ 17,060
Gross Amounts Offset in the Balance Sheet 0 0
Net Amounts of Assets Presented in the Balance Sheet 17,356 17,060
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral 0 (457)
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral 0 0
Net Amount $ 17,356 $ 16,603
v3.24.2.u1
Derivative Instruments and Hedging Activities - Schedule of Offsetting of Derivative Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Liabilities $ 0 $ 457
Gross Amounts Offset in the Balance Sheet 0 0
Net Amounts of Liabilities Presented in the Balance Sheet 0 457
Financial Instruments Collateral 0 (457)
Cash Collateral 0 0
Net Amount $ 0 $ 0
v3.24.2.u1
Stockholders' Equity - Narrative (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Apr. 08, 2024
Jun. 30, 2024
USD ($)
shares
Jun. 30, 2023
USD ($)
shares
Jun. 30, 2024
USD ($)
$ / shares
shares
Jun. 30, 2023
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
Class of Stock [Line Items]            
Reverse stock split, conversion ratio 0.25          
Distributions payable to stockholders | $   $ 7,663   $ 7,663   $ 7,782
Repurchase of common stock | $   $ 4,196 $ 2,492 $ 8,482 $ 5,994  
Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)   140,229 [1] 75,780 [2] 283,512 [1] 182,298 [2]  
Repurchase of common stock | $   $ 1 [1] $ 1 [2] $ 3 [1] $ 2 [2]  
Class A, I and T Shares | Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)       283,512 182,298  
Repurchase of common stock | $       $ 8,482 $ 5,994  
Repurchase of common stock, average price per share (in dollars per share) | $ / shares       $ 29.92 $ 32.88  
Common Class A | Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)       246,024 140,021  
Common Class I | Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)       7,574 10,986  
Common Class T | Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)       29,914 31,291  
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
[2] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.2.u1
Stockholders' Equity - Amounts Recognized in AOCI (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance beginning $ 1,492,507 $ 1,542,411 $ 1,494,435 $ 1,555,095
Other comprehensive income (loss) (2,115) 7,382 753 (882)
Balance ending 1,472,911 1,535,863 1,472,911 1,535,863
Unrealized Income (Loss) on Derivative Instruments        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance beginning     16,603 27,990
Other comprehensive income before reclassification     9,786 6,770
Amount of income reclassified from accumulated other comprehensive income to net income     (9,033) (7,652)
Other comprehensive income (loss)     753 (882)
Balance ending $ 17,356 $ 27,108 $ 17,356 $ 27,108
v3.24.2.u1
Stockholders' Equity - Reclassifications Out of AOCI (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Interest rate swap contracts $ (4,628) $ (3,855) $ (19,608) $ (18,055)
Interest rate swaps | Income Amounts Reclassified from Accumulated Other Comprehensive Income to Net Income | Reclassification out of Accumulated Other Comprehensive Income (Loss)        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Interest rate swap contracts     $ (9,033) $ (7,652)
v3.24.2.u1
Earnings Per Share (Details) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Earnings Per Share [Abstract]        
Diluted earnings per share outstanding adjustment (in shares) 371 464 403 463
v3.24.2.u1
Stock-based Compensation (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]        
Accelerated stock-based compensation $ 0   $ 863,000  
Stock-based compensation $ 1,163,000 $ 1,251,000 $ 2,487,000 $ 2,493,000
v3.24.2.u1
Commitments and Contingencies (Details)
Jun. 30, 2024
legal_proceeding
Commitments and Contingencies Disclosure [Abstract]  
Number of pending legal proceedings to which the company is a party 0
v3.24.2.u1
Subsequent Events (Details)
 3 Months Ended 6 Months Ended
Jul. 25, 2024
USD ($)
Jul. 24, 2024
USD ($)
Jul. 19, 2024
USD ($)
$ / shares
shares
Jul. 16, 2024
$ / shares
Jul. 15, 2024
USD ($)
Jul. 02, 2024
USD ($)
shares
Jun. 13, 2024
$ / shares
Jun. 30, 2024
$ / shares
shares
Jun. 30, 2023
$ / shares
Jun. 30, 2024
USD ($)
$ / shares
shares
Jun. 30, 2023
USD ($)
$ / shares
Dec. 31, 2023
shares
Subsequent Event [Line Items]                        
Distributions declared per common share (in dollars per share) | $ / shares [1]               $ 0.40 $ 0.40 $ 0.80 $ 0.80  
Common stock, shares outstanding (in shares) | shares [2]               57,216,478   57,216,478   56,983,564
Repurchase of common stock                   $ 8,482,000 $ 5,994,000  
Proceeds from credit facility                   $ 250,000,000 $ 0  
Maximum | Dutch Auction                        
Subsequent Event [Line Items]                        
Repurchase of common stock, average price per share (in dollars per share) | $ / shares             $ 24.00          
Minimum | Dutch Auction                        
Subsequent Event [Line Items]                        
Repurchase of common stock, average price per share (in dollars per share) | $ / shares             $ 22.60          
Subsequent Event                        
Subsequent Event [Line Items]                        
Distributions paid         $ 7,663,000              
Distributions declared per common share (in dollars per share) | $ / shares       $ 0.1333                
Annualized distribution per share (in dollars per share) | $ / shares       $ 1.60                
Subsequent Event | Restricted Stock                        
Subsequent Event [Line Items]                        
Awards granted (in shares) | shares           87,269            
Award vesting under plan, percentage per annum           25.00%            
Unrecognized stock-based compensation expense           $ 1,802,000            
Subsequent Event | Dutch Auction                        
Subsequent Event [Line Items]                        
Stock redeemed or called during period, percentage of shares oustanding     0.039                  
Repurchase of common stock     $ 50,000,000                  
Repurchase of common stock (in shares) | shares     2,212,389                  
Subsequent Event | Fort Smith Healthcare Facility                        
Subsequent Event [Line Items]                        
Ownership interests (as a percentage) 100.00%                      
Cash paid in transaction $ 28,250,000                      
Proceeds from credit facility   $ 20,000,000                    
Subsequent Event | Dutch Auction                        
Subsequent Event [Line Items]                        
Repurchase of common stock, average price per share (in dollars per share) | $ / shares     $ 22.60                  
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
[2] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).