SILA REALTY TRUST, INC., 10-Q filed on 5/8/2024
Quarterly Report
v3.24.1.u1
Cover - shares
 3 Months Ended
Mar. 31, 2024
May 02, 2024
Document Type 10-Q  
Document Annual Report true  
Document Period End Date Mar. 31, 2024  
Current Fiscal Year End Date --12-31  
Document Transition Report false  
Entity File Number 000-55435  
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 None  
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  
Amendment Flag false  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0001567925  
No Trading Symbol Flag true  
Class A    
Entity Common Stock, Shares Outstanding (in shares)   42,430,000
Class I    
Entity Common Stock, Shares Outstanding (in shares)   4,272,000
Class T    
Entity Common Stock, Shares Outstanding (in shares)   10,515,000
Class T2    
Entity Common Stock, Shares Outstanding (in shares)   0
v3.24.1.u1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Real estate:    
Land $ 165,768 $ 157,821
Buildings and improvements, less accumulated depreciation of $239,098 and $227,156, respectively 1,558,951 1,470,831
Total real estate, net 1,724,719 1,628,652
Cash and cash equivalents 90,242 202,019
Intangible assets, less accumulated amortization of $106,706 and $102,456, respectively 142,907 134,999
Goodwill 17,700 17,700
Right-of-use assets 36,118 36,384
Other assets 82,628 79,825
Total assets 2,094,314 2,099,579
Liabilities:    
Credit facility, net of deferred financing costs of $3,991 and $1,847, respectively 521,009 523,153
Accounts payable and other liabilities 30,723 30,381
Intangible liabilities, less accumulated amortization of $7,790 and $7,417, respectively 9,065 10,452
Lease liabilities 41,010 41,158
Total liabilities 601,807 605,144
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; 61,537,771 and 61,154,404 shares issued(1), respectively; 57,223,648 and 56,983,564 shares outstanding(1), respectively [1] 572 570
Additional paid-in capital 2,047,457 2,044,450
Distributions in excess of accumulated earnings (574,993) (567,188)
Accumulated other comprehensive income 19,471 16,603
Total stockholders’ equity 1,492,507 1,494,435
Total liabilities and stockholders’ equity $ 2,094,314 $ 2,099,579
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.1.u1
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Buildings and improvements, accumulated depreciation $ 239,098 $ 227,156
Intangible assets, accumulated amortization 106,706 102,456
Credit facility, deferred financing costs 3,991 1,847
Intangible liabilities, accumulated amortization $ 7,790 $ 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) [1] $ 0.01 $ 0.01
Common stock, shares authorized (in shares) [1] 510,000,000 510,000,000
Common stock, shares issued (in shares) [1] 61,537,771 61,154,404
Common stock, shares outstanding (in shares) [1] 57,223,648 56,983,564
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.1.u1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Revenue:    
Rental revenue $ 50,639 $ 49,644
Expenses:    
Rental expenses 5,554 4,850
General and administrative expenses 8,230 6,103
Depreciation and amortization 18,898 18,552
Impairment losses 0 344
Total operating expenses 32,682 29,849
Gain on real estate dispositions 76 21
Interest and other income 2,241 6
Interest expense 5,294 5,622
Net income attributable to common stockholders 14,980 14,200
Other comprehensive income (loss) - unrealized gain (loss) on interest rate swaps, net 2,868 (8,264)
Comprehensive income attributable to common stockholders $ 17,848 $ 5,936
Weighted average number of common shares outstanding:    
Basic (in shares) [1] 57,113,041 56,640,434
Diluted (in shares) [1] 57,661,507 57,101,070
Net income per common share attributable to common stockholders:    
Basic (in dollars per share) [1] $ 0.26 $ 0.25
Diluted (in dollars per share) [1] 0.26 0.25
Distributions declared per common share (in dollars per share) [1] $ 0.40 $ 0.40
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.1.u1
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 $ (499,334) $ 27,990
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock under the distribution reinvestment plan (in shares) [1]   187,698      
Issuance of common stock under the distribution reinvestment plan 6,173 $ 2 [1] 6,171    
Vesting of restricted stock (in shares) [1]   24,863      
Stock-based compensation 1,242 $ 0 [1] 1,242    
Other offering costs (6)   (6)    
Repurchase of common stock (in shares) [1]   (106,518)      
Repurchase of common stock (3,502) $ (1) [1] (3,501)    
Distributions to common stockholders (22,527)     (22,527)  
Other comprehensive income (loss) (8,264)       (8,264)
Net income (loss) 14,200     14,200  
Balance, (in shares) at Mar. 31, 2023 [1]   56,670,035      
Balance ending at Mar. 31, 2023 $ 1,542,411 $ 567 [1] 2,029,779 (507,661) 19,726
Balance, (in shares) at Dec. 31, 2023 56,983,564 [2] 56,983,564 [1]      
Balance beginning at Dec. 31, 2023 $ 1,494,435 $ 570 [1] 2,044,450 (567,188) 16,603
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock under the distribution reinvestment plan (in shares) [1]   200,343      
Issuance of common stock under the distribution reinvestment plan 5,997 $ 2 [1] 5,995    
Vesting of restricted stock (in shares) [1]   183,024      
Stock-based compensation 1,324 $ 1 [1] 1,323    
Other offering costs (26)   (26)    
Repurchase of common stock (in shares) [1]   (143,283)      
Repurchase of common stock (4,286) $ (1) [1] (4,285)    
Distributions to common stockholders (22,785)     (22,785)  
Other comprehensive income (loss) 2,868       2,868
Net income (loss) $ 14,980     14,980  
Balance, (in shares) at Mar. 31, 2024 57,223,648 [2] 57,223,648 [1]      
Balance ending at Mar. 31, 2024 $ 1,492,507 $ 572 [1] $ 2,047,457 $ (574,993) $ 19,471
[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).
v3.24.1.u1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Cash flows from operating activities:    
Net income attributable to common stockholders $ 14,980 $ 14,200
Adjustments to reconcile net income attributable to common stockholders to net cash provided by operating activities:    
Depreciation and amortization 18,898 18,552
Amortization of deferred financing costs 452 413
Amortization of above- and below-market leases (780) 122
Other amortization expenses 184 200
Gain on real estate dispositions (76) (21)
Loss on extinguishment of debt 228 0
Impairment losses 0 344
Straight-line rent adjustments, net of write-offs (1,176) (1,298)
Stock-based compensation 1,324 1,242
Changes in operating assets and liabilities:    
Accounts payable and other liabilities 2,039 (2,388)
Other assets 499 1,382
Net cash provided by operating activities 36,572 32,748
Cash flows from investing activities:    
Investments in real estate (124,913) 0
Proceeds from real estate dispositions 1,439 4,741
Capital expenditures and other costs (446) (388)
Net cash (used in) provided by investing activities (123,920) 4,353
Cash flows from financing activities:    
Proceeds from credit facility 250,000 0
Payments on credit facility (250,000) (8,000)
Payments of deferred financing costs (2,460) (12)
Repurchase of common stock (4,286) (3,502)
Offering costs on issuance of common stock (61) (10)
Distributions to common stockholders (17,622) (16,264)
Net cash used in financing activities (24,429) (27,788)
Net change in cash, cash equivalents and restricted cash (111,777) 9,313
Cash, cash equivalents and restricted cash - Beginning of period 202,185 13,083
Cash, cash equivalents and restricted cash - End of period 90,408 22,396
Supplemental cash flow disclosure:    
Interest paid 5,524 5,286
Supplemental disclosure of non-cash transactions:    
Common stock issued through distribution reinvestment plan 5,997 6,173
Change in accrued distributions to common stockholders (834) 91
Change in accounts payable and other liabilities related to investing activities (479) (143)
Note receivable issued for disposition of real estate $ 0 $ 7,500
v3.24.1.u1
Organization and Business Operations
 3 Months Ended
Mar. 31, 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 assets 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.
On April 8, 2024, the Company announced that its board of directors, or the Board, intends to pursue a listing of a class of the Company’s common stock on the New York Stock Exchange, or the NYSE, under the ticker symbol "SILA" in the late second quarter or early third quarter of 2024, or the Listing.
In anticipation of the Listing, on April 8, 2024, 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, $0.01 par value per share, or the 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 connection with the Listing, the Company expects to arrange for the disposition of fractional shares upon the Listing, that were owned prior to, or are the result of, 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 to reflect the Reverse Stock Split.
Except as the context otherwise requires, the “Company” refers to Sila Realty Trust, Inc., the Operating Partnership and their wholly-owned subsidiaries.
v3.24.1.u1
Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 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 months ended March 31, 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):
Three Months Ended
March 31,
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$90,242 $22,230 
Restricted cash166 

166 
Cash, cash equivalents and restricted cash$90,408 $22,396 
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.
v3.24.1.u1
Real Estate
 3 Months Ended
Mar. 31, 2024
Real Estate [Abstract]  
Real Estate Real Estate
Acquisitions
During the three months ended March 31, 2024, the Company purchased six real estate properties in two separate transactions, which were determined to be asset acquisitions. The Company allocated the purchase price to tangible assets, consisting of land, building and improvements and tenant improvements, and intangible assets, consisting of in-place leases, 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 three months ended March 31, 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%19,352 
Marana Healthcare Facility03/20/2024100%16,153 
Surprise Healthcare Facility03/20/2024100%18,598 
Tucson Healthcare Facility V03/20/2024100%15,991 
Weslaco Healthcare Facility03/20/2024100%15,709 
Total $124,918 
Total
Land$8,321 
Building and improvements83,749 
Tenant improvements17,315 
In-place leases15,533 
Total assets acquired$124,918 
The Company capitalized acquisition costs of approximately $355,000, 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 three months ended March 31, 2024, included $4,000,000 of lease termination income, in addition to deferred rent from prior periods.
Investment Risk Concentrations
As of March 31, 2024, the Company had one exposure to geographic concentration that accounted for at least 10.0% of rental revenue for the three months ended March 31, 2024. Real estate properties located in the Providence-Warwick, Rhode Island-Massachusetts metropolitan statistical area accounted for 11.0% of rental revenue for the three months ended March 31, 2024.
As of March 31, 2024, the Company had two exposures to tenant concentration that accounted for at least 10.0% of rental revenue for the three months ended March 31, 2024. The leases with tenants at properties under the common control of Post Acute Medical, LLC and its affiliates accounted for 13.5% of rental revenue and the leases with tenants at properties under the common control of Vibra accounted for 11.9% of rental revenue for the three months ended March 31, 2024.
Impairment Losses
The Company did not record any impairment losses on real estate for the three months ended March 31, 2024. During the three months ended March 31, 2024, the Company recorded accelerated amortization of in-place lease intangible assets, above-market lease intangible assets and below-market lease intangible liabilities of $2,082,000, $158,000, and $1,013,000, respectively, in connection with lease terminations and amendments.
During the three months ended March 31, 2023, the Company recorded impairment losses on real estate of $344,000 (consisting of goodwill impairments of $344,000).
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 of in-place leases are included in depreciation and amortization in the accompanying condensed consolidated statements of comprehensive income. Impairments of above-market leases are recorded as a reduction to rental revenue in the accompanying condensed consolidated statements of comprehensive income. Impairments of below-market leases are recorded as an increase to rental revenue in the accompanying condensed consolidated statements of comprehensive income.
v3.24.1.u1
Intangible Assets, Net
 3 Months Ended
Mar. 31, 2024
Finite-Lived Intangible Assets, Net [Abstract]  
Intangible Assets, Net Intangible Assets, Net
Intangible assets, net, consisted of the following as of March 31, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts):
 March 31, 2024December 31, 2023
In-place leases, net of accumulated amortization of $100,100 and $95,325, respectively (with a weighted average remaining life of 7.9 years and 7.8 years, respectively)
$133,702 $125,188 
Above-market leases, net of accumulated amortization of $6,606 and $7,131, respectively (with a weighted average remaining life of 6.8 years and 6.7 years, respectively)
9,205 9,811 
$142,907 $134,999 
The aggregate weighted average remaining life of the intangible assets was 7.8 years and 7.7 years as of March 31, 2024 and December 31, 2023, respectively.
Amortization of intangible assets was $7,478,000 and $5,740,000 for the three months ended March 31, 2024 and 2023, respectively. Amortization of in-place leases is included in depreciation and amortization, and amortization of above-market leases is recorded as an adjustment to rental revenue in the accompanying condensed consolidated statements of comprehensive income.
v3.24.1.u1
Intangible Liabilities, Net
 3 Months Ended
Mar. 31, 2024
Intangible Lease Liabilities, Net [Abstract]  
Intangible Liabilities, Net Intangible Liabilities, Net
Intangible liabilities, net, consisted of the following as of March 31, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts):
March 31, 2024December 31, 2023
Below-market leases, net of accumulated amortization of $7,790 and $7,417, respectively (with a weighted average remaining life of 6.9 years and 7.4 years, respectively)
$9,065 $10,452 
Amortization of below-market leases was $1,387,000 and $374,000 for the three months ended March 31, 2024 and 2023, respectively. Amortization of below-market leases is recorded as an adjustment to rental revenue in the accompanying condensed consolidated statements of comprehensive income.
v3.24.1.u1
Leases
 3 Months Ended
Mar. 31, 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 March 31, 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):

March 31, 2024
Period ending December 31, 2024$135,897 
2025176,984 
2026171,868 
2027168,766 
2028164,578 
Thereafter856,880 
Total$1,674,973 
Lessee
The Company is subject to various non-cancellable operating lease agreements on which certain of its properties reside and for its corporate offices.
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 leases are recorded in right-of-use assets and lease liabilities on the condensed consolidated balance sheets.
The weighted average remaining lease term for the Company's leases was 36.1 years as of March 31, 2024.
The future rent payments, discounted by the Company's IBRs, under non-cancellable operating leases in effect as of March 31, 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):
March 31, 2024
Period ending December 31, 2024$2,029 
20252,768 
20262,715 
20272,681 
20282,692 
Thereafter104,764 
Total undiscounted rental payments117,649 
Less imputed interest(76,639)
Total lease liabilities$41,010 
The following table provides details of the Company's total lease costs for the three months ended March 31, 2024 and 2023 (amounts in thousands):
Three Months Ended
March 31,
Location in Condensed Consolidated Statements of Comprehensive Income20242023
Operating lease costs:
Ground lease costs (1)
Rental expenses$682 $682 
Corporate operating lease costsGeneral and administrative expenses189 187 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$176 $233 
(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.
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 March 31, 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):

March 31, 2024
Period ending December 31, 2024$135,897 
2025176,984 
2026171,868 
2027168,766 
2028164,578 
Thereafter856,880 
Total$1,674,973 
Lessee
The Company is subject to various non-cancellable operating lease agreements on which certain of its properties reside and for its corporate offices.
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 leases are recorded in right-of-use assets and lease liabilities on the condensed consolidated balance sheets.
The weighted average remaining lease term for the Company's leases was 36.1 years as of March 31, 2024.
The future rent payments, discounted by the Company's IBRs, under non-cancellable operating leases in effect as of March 31, 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):
March 31, 2024
Period ending December 31, 2024$2,029 
20252,768 
20262,715 
20272,681 
20282,692 
Thereafter104,764 
Total undiscounted rental payments117,649 
Less imputed interest(76,639)
Total lease liabilities$41,010 
The following table provides details of the Company's total lease costs for the three months ended March 31, 2024 and 2023 (amounts in thousands):
Three Months Ended
March 31,
Location in Condensed Consolidated Statements of Comprehensive Income20242023
Operating lease costs:
Ground lease costs (1)
Rental expenses$682 $682 
Corporate operating lease costsGeneral and administrative expenses189 187 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$176 $233 
(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.
v3.24.1.u1
Other Assets
 3 Months Ended
Mar. 31, 2024
Other Assets [Abstract]  
Other Assets Other Assets
Other assets consisted of the following as of March 31, 2024 and December 31, 2023 (amounts in thousands):
 March 31, 2024December 31, 2023
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $2,184 and $1,917, respectively
$2,006 $2,271 
Leasing commissions, net of accumulated amortization of $212 and $191, respectively
977 593 
Restricted cash166 166 
Tenant receivables2,494 2,398 
Straight-line rent receivable54,365 53,248 
Prepaid and other assets3,149 4,089 
Derivative assets19,471 17,060 
$82,628 $79,825 
v3.24.1.u1
Accounts Payable and Other Liabilities
 3 Months Ended
Mar. 31, 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 March 31, 2024 and December 31, 2023 (amounts in thousands):
 March 31, 2024December 31, 2023
Accounts payable and accrued expenses$4,161 $3,906 
Accrued interest expense850 1,714 
Accrued property taxes3,478 3,687 
Accrued personnel costs3,444 4,425 
Distributions payable to stockholders7,788 7,782 
Performance DSUs distributions payable300 1,140 
Tenant deposits877 877 
Deferred rental income9,825 6,393 
Derivative liabilities— 457 
$30,723 $30,381 
v3.24.1.u1
Credit Facility
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Credit Facility Credit Facility
The Company's outstanding credit facility as of March 31, 2024 and December 31, 2023 consisted of the following (amounts in thousands):
March 31, 2024December 31, 2023
2024 Variable rate term loan fixed through interest rate swaps$— $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(3,991)(1,847)
Total credit facility, net of deferred financing costs$521,009 $523,153 
Significant activities regarding the credit facility during the three months ended March 31, 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 credit facility and entering into the 2027 Term Loan Agreement, the Company recognized a loss on extinguishment of debt of $228,000 during the three months ended March 31, 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 March 31, 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 
v3.24.1.u1
Fair Value
 3 Months Ended
Mar. 31, 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 March 31, 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 Accounting Standards Codification, or ASC, 820, Fair Value Measurements and Disclosures. 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 majority of the inputs used to value its interest rate swaps 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 March 31, 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 March 31, 2024 and December 31, 2023 (amounts in thousands):
 March 31, 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$— $19,471 $— $19,471 
Total assets at fair value$— $19,471 $— $19,471 
 December 31, 2023
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets$— $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.
v3.24.1.u1
Derivative Instruments and Hedging Activities
 3 Months Ended
Mar. 31, 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 $13,309,000 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		March 31, 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 $19,471 $— $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 months ended March 31, 2024 and 2023 (amounts in thousands):
Derivatives in Cash Flow
Hedging Relationships		Amount of Income (Loss) Recognized
in Other Comprehensive Income (Loss) on Derivatives		Location of Income (Loss)
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 March 31, 2024
Interest rate swaps$7,393 Interest expense$4,525 $5,294 
Three Months Ended March 31, 2023
Interest rate swaps$(4,694)Interest expense$3,570 $5,622 
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 March 31, 2024, 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 March 31, 2024, 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 March 31, 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
March 31, 2024$19,471 $— $19,471 $— $— $19,471 
December 31, 2023$17,060 $— $17,060 $(457)$— $16,603 
Offsetting of Derivative Liabilities
Gross Amounts Not Offset in the Balance Sheet
Gross
Amounts of
Recognized
Liabilities		Gross Amounts
Offset in the
Balance Sheet		Net Amounts of
Liabilities
Presented in the
Balance Sheet		Financial Instruments
Collateral		Cash CollateralNet
Amount
March 31, 2024$— $— $— $— $— $— 
December 31, 2023$457 $— $457 $(457)$— $— 
v3.24.1.u1
Stockholders' Equity
 3 Months Ended
Mar. 31, 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. See Note 1—"Organization and Business Operations" for further details.
Distributions Payable
As of March 31, 2024, the Company had distributions payable of approximately $7,788,000. Of these distributions payable, approximately $5,766,000 was paid in cash on April 5, 2024, and approximately $2,022,000 was reinvested in shares of common stock pursuant to the Company's distribution reinvestment plan, or the DRIP, effective April 1, 2024.
On April 5, 2024, the Board voted to terminate the DRIP, effective May 1, 2024. See Note 16—"Subsequent Events" for further details.
Share Repurchases
During the three months ended March 31, 2024, the Company repurchased 143,283 Class A shares, Class I shares and Class T shares of common stock, after giving effect to the Reverse Stock Split (128,492 Class A shares, 3,104 Class I shares and 11,687 Class T shares), for an aggregate purchase price of approximately $4,286,000 (an average of $29.92 per share). During the three months ended March 31, 2023, the Company repurchased 106,518 Class A shares, Class I shares and Class T shares of common stock, after giving effect to the Reverse Stock Split (88,234 Class A shares, 11 Class I shares and 18,273 Class T shares), for an aggregate purchase price of approximately $3,502,000 (an average of $32.88 per share).
The Company’s Amended and Restated Share Repurchase Program, or the SRP, allows for repurchases of shares of the Company’s common stock upon meeting certain criteria. On April 8, 2024, the Board voted to suspend the SRP, effective immediately, and to terminate the SRP, effective upon the anticipated listing event. See Note 16—"Subsequent Events" for further details.
Accumulated Other Comprehensive Income
The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the three months ended March 31, 2024 and 2023 (amounts in thousands):
Unrealized Income
on Derivative
Instruments
Balance as of December 31, 2023$16,603 
Other comprehensive income before reclassification7,393 
Amount of income reclassified from accumulated other comprehensive income to net income(4,525)
Other comprehensive income2,868 
Balance as of March 31, 2024$19,471 
Unrealized Loss
on Derivative
Instruments
Balance as of December 31, 2022$27,990 
Other comprehensive loss before reclassification(4,694)
Amount of income reclassified from accumulated other comprehensive income to net income(3,570)
Other comprehensive loss(8,264)
Balance as of March 31, 2023$19,726 
The following table presents reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2024 and 2023 (amounts in thousands):
Details about Accumulated Other
Comprehensive Income Components		Income Amounts Reclassified from
Accumulated Other Comprehensive Income to Net Income		Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income
Three Months Ended
March 31,
20242023
Interest rate swap contracts$(4,525)

$(3,570)Interest expense
v3.24.1.u1
Earnings Per Share
 3 Months Ended
Mar. 31, 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. Shares of non-vested restricted common stock and performance-based deferred stock unit awards, or Performance DSUs, are considered to be participating securities because they contain non-forfeitable rights to distributions and give rise to potentially dilutive shares of common stock. For the three months ended March 31, 2024, diluted earnings per share reflected the effect of approximately 548,000 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 months ended March 31, 2023, diluted earnings per share reflected the effect of approximately 461,000 of non-vested shares of restricted common stock and Performance DSUs that were outstanding after giving effect to the Reverse Stock Split.
v3.24.1.u1
Stock-based Compensation
 3 Months Ended
Mar. 31, 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 Class A common stock to its directors, executive officers, and employees.
The Company recognized accelerated stock-based compensation expense of $863,000 for the three months ended March 31, 2024 as a result of accelerated awards due to severance. The Company recognized total stock-based compensation expense of $1,324,000 and $1,242,000, respectively, for the three months ended March 31, 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.
v3.24.1.u1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 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 March 31, 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.
v3.24.1.u1
Subsequent Events
 3 Months Ended
Mar. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Distributions Paid to Stockholders
The following table summarizes the Company's distributions paid to stockholders on April 5, 2024, for the period from March 1, 2024 through March 31, 2024 (amounts in thousands):
Payment DateCommon Stock CashDRIPTotal Distribution
April 5, 2024Class A$4,621 $1,168 $5,789 
April 5, 2024Class I349 228 577 
April 5, 2024Class T796 626 1,422 
$5,766 $2,022 $7,788 
The following table summarizes the Company's distributions paid to stockholders on May 1, 2024, for the period from April 1, 2024 through April 30, 2024 (amounts in thousands):
Payment DateCommon Stock CashDRIPTotal Distribution
May 1, 2024Class A$4,470 $1,134 $5,604 
May 1, 2024Class I338 222 560 
May 1, 2024Class T774 604 1,378 
$5,582 $1,960 $7,542 
Termination of the SRP and the DRIP
In light of the Company’s intention to pursue the Listing, on April 5, 2024, the Board voted to suspend the SRP, effective immediately, and to terminate the SRP, effective upon the Listing. On April 5, 2024, the Board also voted to terminate the DRIP, effective May 1, 2024.
Distributions Authorized
The following table summarizes the daily distributions approved and authorized by the Board subsequent to March 31, 2024:
Authorization Date (1)
Common Stock
Daily Distribution Rate (1)
Annualized Distribution Per Share
April 15, 2024Class A$0.00437158 $1.60 
April 15, 2024Class I$0.00437158 $1.60 
April 15, 2024Class T$0.00437158 $1.60 
(1)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on May 1, 2024 and ending on May 31, 2024. The distributions are calculated based on 366 days in the calendar year, accounting for the Reverse Stock Split, effective May 1. The distributions declared for each record date in May 2024 will be paid in June 2024. The distributions are payable to stockholders from legally available funds therefor.
On May 7, 2024, the Board approved and authorized a daily distribution to the Company’s stockholders of record holding common shares as of the close of business on each day of the period commencing on June 1, 2024 and ending on June 30, 2024. The distributions for June 2024 will be calculated based on 366 days in the calendar year and will be equal to $0.00437158 per share of common stock, which is equal to an annualized distribution of $1.60 per share of common stock. The distributions declared for each record date in June 2024 will be paid in July 2024. The distributions will be payable to stockholders from legally available funds therefor.
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net Income (Loss) $ 14,980 $ 14,200
v3.24.1.u1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 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
v3.24.1.u1
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 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.
v3.24.1.u1
Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 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):
Three Months Ended
March 31,
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$90,242 $22,230 
Restricted cash166 

166 
Cash, cash equivalents and restricted cash$90,408 $22,396 
v3.24.1.u1
Real Estate (Tables)
 3 Months Ended
Mar. 31, 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 three months ended March 31, 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%19,352 
Marana Healthcare Facility03/20/2024100%16,153 
Surprise Healthcare Facility03/20/2024100%18,598 
Tucson Healthcare Facility V03/20/2024100%15,991 
Weslaco Healthcare Facility03/20/2024100%15,709 
Total $124,918 
Schedule of Allocation of Acquisitions
Total
Land$8,321 
Building and improvements83,749 
Tenant improvements17,315 
In-place leases15,533 
Total assets acquired$124,918 
v3.24.1.u1
Intangible Assets, Net (Tables)
 3 Months Ended
Mar. 31, 2024
Finite-Lived Intangible Assets, Net [Abstract]  
Schedule of Intangible Assets, Net
Intangible assets, net, consisted of the following as of March 31, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts):
 March 31, 2024December 31, 2023
In-place leases, net of accumulated amortization of $100,100 and $95,325, respectively (with a weighted average remaining life of 7.9 years and 7.8 years, respectively)
$133,702 $125,188 
Above-market leases, net of accumulated amortization of $6,606 and $7,131, respectively (with a weighted average remaining life of 6.8 years and 6.7 years, respectively)
9,205 9,811 
$142,907 $134,999 
v3.24.1.u1
Intangible Liabilities, Net (Tables)
 3 Months Ended
Mar. 31, 2024
Intangible Lease Liabilities, Net [Abstract]  
Schedule of Intangible Liabilities, Net
Intangible liabilities, net, consisted of the following as of March 31, 2024 and December 31, 2023 (amounts in thousands, except weighted average remaining life amounts):
March 31, 2024December 31, 2023
Below-market leases, net of accumulated amortization of $7,790 and $7,417, respectively (with a weighted average remaining life of 6.9 years and 7.4 years, respectively)
$9,065 $10,452 
v3.24.1.u1
Leases (Tables)
 3 Months Ended
Mar. 31, 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 March 31, 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):

March 31, 2024
Period ending December 31, 2024$135,897 
2025176,984 
2026171,868 
2027168,766 
2028164,578 
Thereafter856,880 
Total$1,674,973 
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 March 31, 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):
March 31, 2024
Period ending December 31, 2024$2,029 
20252,768 
20262,715 
20272,681 
20282,692 
Thereafter104,764 
Total undiscounted rental payments117,649 
Less imputed interest(76,639)
Total lease liabilities$41,010 
Schedule of Lease Cost
The following table provides details of the Company's total lease costs for the three months ended March 31, 2024 and 2023 (amounts in thousands):
Three Months Ended
March 31,
Location in Condensed Consolidated Statements of Comprehensive Income20242023
Operating lease costs:
Ground lease costs (1)
Rental expenses$682 $682 
Corporate operating lease costsGeneral and administrative expenses189 187 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$176 $233 
(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.
v3.24.1.u1
Other Assets (Tables)
 3 Months Ended
Mar. 31, 2024
Other Assets [Abstract]  
Schedule of Other Assets
Other assets consisted of the following as of March 31, 2024 and December 31, 2023 (amounts in thousands):
 March 31, 2024December 31, 2023
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $2,184 and $1,917, respectively
$2,006 $2,271 
Leasing commissions, net of accumulated amortization of $212 and $191, respectively
977 593 
Restricted cash166 166 
Tenant receivables2,494 2,398 
Straight-line rent receivable54,365 53,248 
Prepaid and other assets3,149 4,089 
Derivative assets19,471 17,060 
$82,628 $79,825 
v3.24.1.u1
Accounts Payable and Other Liabilities (Tables)
 3 Months Ended
Mar. 31, 2024
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Other Liabilities
Accounts payable and other liabilities consisted of the following as of March 31, 2024 and December 31, 2023 (amounts in thousands):
 March 31, 2024December 31, 2023
Accounts payable and accrued expenses$4,161 $3,906 
Accrued interest expense850 1,714 
Accrued property taxes3,478 3,687 
Accrued personnel costs3,444 4,425 
Distributions payable to stockholders7,788 7,782 
Performance DSUs distributions payable300 1,140 
Tenant deposits877 877 
Deferred rental income9,825 6,393 
Derivative liabilities— 457 
$30,723 $30,381 
v3.24.1.u1
Credit Facility (Tables)
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Credit Facility
The Company's outstanding credit facility as of March 31, 2024 and December 31, 2023 consisted of the following (amounts in thousands):
March 31, 2024December 31, 2023
2024 Variable rate term loan fixed through interest rate swaps$— $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(3,991)(1,847)
Total credit facility, net of deferred financing costs$521,009 $523,153 
Schedule of Future Principal Payments Due on Debt
The principal payments due on the credit facility as of March 31, 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— 
$525,000 
v3.24.1.u1
Fair Value (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 (amounts in thousands):
 March 31, 2024
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets$— $19,471 $— $19,471 
Total assets at fair value$— $19,471 $— $19,471 
 December 31, 2023
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets$— $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 
v3.24.1.u1
Derivative Instruments and Hedging Activities (Tables)
 3 Months Ended
Mar. 31, 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		March 31, 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 $19,471 $— $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 months ended March 31, 2024 and 2023 (amounts in thousands):
Derivatives in Cash Flow
Hedging Relationships		Amount of Income (Loss) Recognized
in Other Comprehensive Income (Loss) on Derivatives		Location of Income (Loss)
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 March 31, 2024
Interest rate swaps$7,393 Interest expense$4,525 $5,294 
Three Months Ended March 31, 2023
Interest rate swaps$(4,694)Interest expense$3,570 $5,622 
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 March 31, 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
March 31, 2024$19,471 $— $19,471 $— $— $19,471 
December 31, 2023$17,060 $— $17,060 $(457)$— $16,603 
Schedule of Offsetting of Derivative Liabilities
Offsetting of Derivative Liabilities
Gross Amounts Not Offset in the Balance Sheet
Gross
Amounts of
Recognized
Liabilities		Gross Amounts
Offset in the
Balance Sheet		Net Amounts of
Liabilities
Presented in the
Balance Sheet		Financial Instruments
Collateral		Cash CollateralNet
Amount
March 31, 2024$— $— $— $— $— $— 
December 31, 2023$457 $— $457 $(457)$— $— 
v3.24.1.u1
Stockholders' Equity (Tables)
 3 Months Ended
Mar. 31, 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 three months ended March 31, 2024 and 2023 (amounts in thousands):
Unrealized Income
on Derivative
Instruments
Balance as of December 31, 2023$16,603 
Other comprehensive income before reclassification7,393 
Amount of income reclassified from accumulated other comprehensive income to net income(4,525)
Other comprehensive income2,868 
Balance as of March 31, 2024$19,471 
Unrealized Loss
on Derivative
Instruments
Balance as of December 31, 2022$27,990 
Other comprehensive loss before reclassification(4,694)
Amount of income reclassified from accumulated other comprehensive income to net income(3,570)
Other comprehensive loss(8,264)
Balance as of March 31, 2023$19,726 
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
The following table presents reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2024 and 2023 (amounts in thousands):
Details about Accumulated Other
Comprehensive Income Components		Income Amounts Reclassified from
Accumulated Other Comprehensive Income to Net Income		Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income
Three Months Ended
March 31,
20242023
Interest rate swap contracts$(4,525)

$(3,570)Interest expense
v3.24.1.u1
Subsequent Events (Tables)
 3 Months Ended
Mar. 31, 2024
Subsequent Events [Abstract]  
Schedule of Subsequent Events
The following table summarizes the Company's distributions paid to stockholders on April 5, 2024, for the period from March 1, 2024 through March 31, 2024 (amounts in thousands):
Payment DateCommon Stock CashDRIPTotal Distribution
April 5, 2024Class A$4,621 $1,168 $5,789 
April 5, 2024Class I349 228 577 
April 5, 2024Class T796 626 1,422 
$5,766 $2,022 $7,788 
The following table summarizes the Company's distributions paid to stockholders on May 1, 2024, for the period from April 1, 2024 through April 30, 2024 (amounts in thousands):
Payment DateCommon Stock CashDRIPTotal Distribution
May 1, 2024Class A$4,470 $1,134 $5,604 
May 1, 2024Class I338 222 560 
May 1, 2024Class T774 604 1,378 
$5,582 $1,960 $7,542 
The following table summarizes the daily distributions approved and authorized by the Board subsequent to March 31, 2024:
Authorization Date (1)
Common Stock
Daily Distribution Rate (1)
Annualized Distribution Per Share
April 15, 2024Class A$0.00437158 $1.60 
April 15, 2024Class I$0.00437158 $1.60 
April 15, 2024Class T$0.00437158 $1.60 
(1)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on May 1, 2024 and ending on May 31, 2024. The distributions are calculated based on 366 days in the calendar year, accounting for the Reverse Stock Split, effective May 1. The distributions declared for each record date in May 2024 will be paid in June 2024. The distributions are payable to stockholders from legally available funds therefor.
v3.24.1.u1
Organization and Business Operations (Details)
 3 Months Ended
Apr. 08, 2024
$ / shares
Mar. 31, 2024
$ / shares
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) [1]   $ 0.01     $ 0.01
Subsequent Event          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Common stock, par value (in dollars per share) $ 0.01   $ 0.01 $ 0.04  
Reverse stock split, conversion ratio 0.25        
Operating Partnership          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Ownership interest (as a percentage)   100.00%      
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.1.u1
Summary of Significant Accounting Policies (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]        
Cash and cash equivalents $ 90,242 $ 202,019 $ 22,230 $ 12,917
Restricted cash 166 166 166 166
Cash, cash equivalents and restricted cash $ 90,408 $ 202,185 $ 22,396 $ 13,083
v3.24.1.u1
Real Estate (Narrative) (Details)
 3 Months Ended
Jan. 31, 2024
USD ($)
property
Mar. 31, 2024
USD ($)
tenant
statisticalArea
acquistion
property
Mar. 31, 2023
USD ($)
Mar. 31, 2022
Real Estate [Line Items]        
Number of real estate properties acquired | property   6    
Number of asset acquisitions | acquistion   2    
Capitalized acquisition costs   $ 355,000    
Proceeds from real estate dispositions   1,439,000 $ 4,741,000  
Impairment loss   $ 0 344,000  
Impairment loss on goodwill     $ 344,000  
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]   Impairment loss Impairment loss Impairment loss
Impairment of lease liabilities   $ 1,013,000    
Disposal Group, Disposed of by Sale, Not Discontinued Operations        
Real Estate [Line Items]        
Number of real estate properties | property 1      
Aggregate sales price $ 1,500,000      
Proceeds from real estate dispositions $ 1,439,000      
Termination lease income   4,000,000    
In-place leases        
Real Estate [Line Items]        
Impairment of intangible assets   2,082,000    
Above-market leases        
Real Estate [Line Items]        
Impairment of intangible assets   $ 158,000    
Revenue | Geographic Concentration Risk | Providence-Warwick, Rhode Island-Massachusetts        
Real Estate [Line Items]        
Number of geographic concentration | statisticalArea   1    
Concentration risk, percentage   11.00%    
Revenue | Customer Concentration Risk | Two Tenants        
Real Estate [Line Items]        
Number of major tenants | tenant   2    
Revenue | Customer Concentration Risk | Post Acute Medical LLC and affiliates        
Real Estate [Line Items]        
Concentration risk, percentage   13.50%    
Revenue | Customer Concentration Risk | Vibra Healthcare LLC        
Real Estate [Line Items]        
Concentration risk, percentage   11.90%    
v3.24.1.u1
Real Estate (Schedule of Consideration Transferred for Properties Acquired) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 20, 2024
Feb. 26, 2024
Mar. 31, 2024
Business Acquisition [Line Items]      
Consideration transferred     $ 124,918
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 $ 19,352    
Marana Healthcare Facility      
Business Acquisition [Line Items]      
Ownership Percentage 100.00%    
Consideration transferred $ 16,153    
Surprise Healthcare Facility      
Business Acquisition [Line Items]      
Ownership Percentage 100.00%    
Consideration transferred $ 18,598    
Tucson Healthcare Facility V      
Business Acquisition [Line Items]      
Ownership Percentage 100.00%    
Consideration transferred $ 15,991    
Weslaco Healthcare Facility      
Business Acquisition [Line Items]      
Ownership Percentage 100.00%    
Consideration transferred $ 15,709    
v3.24.1.u1
Real Estate (Schedule of Allocation of Acquisitions) (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
Business Acquisition [Line Items]  
Total assets acquired $ 124,918
In-place leases  
Business Acquisition [Line Items]  
Leases 15,533
Land  
Business Acquisition [Line Items]  
Property, plant and equipment acquired 8,321
Building and improvements  
Business Acquisition [Line Items]  
Property, plant and equipment acquired 83,749
Tenant improvements  
Business Acquisition [Line Items]  
Property, plant and equipment acquired $ 17,315
v3.24.1.u1
Intangible Assets, Net (Schedule of Intangible Assets, Net) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 106,706 $ 102,456
Weighted average remaining useful life of intangible assets (in years) 7 years 9 months 18 days 7 years 8 months 12 days
Intangible assets, net of accumulated amortization $ 142,907 $ 134,999
In-place leases    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 100,100 $ 95,325
Weighted average remaining useful life of intangible assets (in years) 7 years 10 months 24 days 7 years 9 months 18 days
Intangible assets, net of accumulated amortization $ 133,702 $ 125,188
Above-market leases    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 6,606 $ 7,131
Weighted average remaining useful life of intangible assets (in years) 6 years 9 months 18 days 6 years 8 months 12 days
Intangible assets, net of accumulated amortization $ 9,205 $ 9,811
v3.24.1.u1
Intangible Assets, Net (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Finite-Lived Intangible Assets, Net [Abstract]      
Weighted average remaining useful life of intangible assets (in years) 7 years 9 months 18 days   7 years 8 months 12 days
Amortization of intangible assets $ 7,478 $ 5,740  
v3.24.1.u1
Intangible Liabilities, Net (Schedule of Intangible Liabilities, Net) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Intangible Lease Liabilities, Net [Abstract]    
Accumulated amortization of below-market leases $ 7,790 $ 7,417
Weighted average remaining life of below-market leases 6 years 10 months 24 days 7 years 4 months 24 days
Below-market leases, net of accumulated amortization $ 9,065 $ 10,452
v3.24.1.u1
Intangible Liabilities, Net (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Intangible Lease Liabilities, Net [Abstract]    
Amortization of below-market leases $ 1,387 $ 374
v3.24.1.u1
Leases (Schedule of Future Minimum Rent to Lessor from Operating Leases) (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Leases [Abstract]  
Period ending December 31, 2024 $ 135,897
2025 176,984
2026 171,868
2027 168,766
2028 164,578
Thereafter 856,880
Total $ 1,674,973
v3.24.1.u1
Leases (Schedule of Rent Payments from Lessee) (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Period ending December 31, 2024 $ 2,029  
2025 2,768  
2026 2,715  
2027 2,681  
2028 2,692  
Thereafter 104,764  
Total undiscounted rental payments 117,649  
Less imputed interest (76,639)  
Lease liabilities $ 41,010 $ 41,158
Weighted average remaining lease term 36 years 1 month 6 days  
v3.24.1.u1
Leases (Schedule of Lease Cost) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows for operating leases $ 176 $ 233
Rental expenses    
Lessee, Lease, Description [Line Items]    
Operating lease costs 682 682
General and administrative expenses    
Lessee, Lease, Description [Line Items]    
Operating lease costs $ 189 $ 187
v3.24.1.u1
Other Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Other Assets [Abstract]    
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $2,184 and $1,917, respectively $ 2,006 $ 2,271
Leasing commissions, net of accumulated amortization of $212 and $191, respectively 977 593
Restricted cash 166 166
Tenant receivables 2,494 2,398
Straight-line rent receivable 54,365 53,248
Prepaid and other assets 3,149 4,089
Derivative assets 19,471 17,060
Total other assets 82,628 79,825
Deferred financing costs, related to the revolver portion of the credit facility, accumulated amortization 2,184 1,917
Leasing commissions, accumulated amortization $ 212 $ 191
v3.24.1.u1
Accounts Payable and Other Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Accounts payable and accrued expenses $ 4,161 $ 3,906
Accrued interest expense 850 1,714
Accrued property taxes 3,478 3,687
Accrued personnel costs 3,444 4,425
Distributions payable to stockholders 7,788 7,782
Performance DSUs distributions payable 300 1,140
Tenant deposits 877 877
Deferred rental income 9,825 6,393
Derivative liabilities 0 457
Total accounts payable and other liabilities $ 30,723 $ 30,381
v3.24.1.u1
Credit Facility (Schedule of Credit Facility) (Details) - USD ($)
$ in Thousands
Mar. 31, 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 (3,991) (1,847)
Total credit facility, net of deferred financing costs 521,009 523,153
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
v3.24.1.u1
Credit Facility (Narrative) (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
extension
Mar. 31, 2023
USD ($)
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
v3.24.1.u1
Credit Facility (Schedule of Principal Payments Due on Credit Facility) (Details)
$ in Thousands
Mar. 31, 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
v3.24.1.u1
Fair Value (Narrative) (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Fair Value Disclosures [Abstract]    
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
v3.24.1.u1
Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Assets:    
Derivative assets $ 19,471 $ 17,060
Liabilities:    
Derivative liabilities 0 457
Recurring basis    
Assets:    
Derivative assets 19,471 17,060
Total assets at fair value 19,471 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 19,471 17,060
Total assets at fair value 19,471 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
v3.24.1.u1
Derivative Instruments and Hedging Activities (Narrative) (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Additional gain expected to be reclassified from AOCI into earnings during next twelve months $ 13,309
v3.24.1.u1
Derivative Instruments and Hedging Activities (Schedule of the Notional Amount and Fair Value of Derivative Instruments) (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Derivatives, Fair Value [Line Items]    
Fair Value of Asset $ 19,471 $ 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 19,471 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)
v3.24.1.u1
Derivative Instruments and Hedging Activities (Schedule of Income and Losses Recognized on Derivative Instruments) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]    
Interest expense $ 5,294 $ 5,622
Interest rate swaps    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Income (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives 7,393 (4,694)
Interest rate swaps | Interest expense    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Income Reclassified From Accumulated Other Comprehensive Income to Net Income $ 4,525 $ 3,570
v3.24.1.u1
Derivative Instruments and Hedging Activities (Schedule of Offsetting of Derivative Assets) (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Assets $ 19,471 $ 17,060
Gross Amounts Offset in the Balance Sheet 0 0
Net Amounts of Assets Presented in the Balance Sheet 19,471 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 $ 19,471 $ 16,603
v3.24.1.u1
Derivative Instruments and Hedging Activities (Schedule of Offsetting of Derivative Liabilities) (Details) - USD ($)
$ in Thousands
Mar. 31, 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
v3.24.1.u1
Stockholders' Equity (Narrative) (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended
May 01, 2024
USD ($)
Apr. 08, 2024
Apr. 05, 2024
USD ($)
Mar. 31, 2024
USD ($)
$ / shares
shares
Mar. 31, 2023
USD ($)
$ / shares
shares
Class of Stock [Line Items]          
Issuance of common stock under the distribution reinvestment plan       $ 5,997 $ 6,173
Repurchase of common stock       4,286 3,502
Subsequent Event          
Class of Stock [Line Items]          
Reverse stock split, conversion ratio   0.25      
Distributions paid $ 7,542   $ 7,788    
Cash 5,582   5,766    
Issuance of common stock under the distribution reinvestment plan 1,960   2,022    
Common Stock          
Class of Stock [Line Items]          
Issuance of common stock under the distribution reinvestment plan [1]       $ 2 $ 2
Repurchase of common stock (in shares) | shares [1]       143,283 106,518
Repurchase of common stock [1]       $ 1 $ 1
Class A, I and T Shares | Common Stock          
Class of Stock [Line Items]          
Repurchase of common stock (in shares) | shares       143,283 106,518
Repurchase of common stock       $ 4,286 $ 3,502
Repurchase of common stock, average price per share (in dollars per share) | $ / shares       $ 29.92 $ 32.88
Class A | Subsequent Event          
Class of Stock [Line Items]          
Distributions paid 5,604   5,789    
Cash 4,470   4,621    
Issuance of common stock under the distribution reinvestment plan 1,134   1,168    
Class A | Common Stock          
Class of Stock [Line Items]          
Repurchase of common stock (in shares) | shares       128,492 88,234
Class I | Subsequent Event          
Class of Stock [Line Items]          
Distributions paid 560   577    
Cash 338   349    
Issuance of common stock under the distribution reinvestment plan 222   228    
Class I | Common Stock          
Class of Stock [Line Items]          
Repurchase of common stock (in shares) | shares       3,104 11
Class T | Subsequent Event          
Class of Stock [Line Items]          
Distributions paid 1,378   1,422    
Cash 774   796    
Issuance of common stock under the distribution reinvestment plan $ 604   $ 626    
Class T | Common Stock          
Class of Stock [Line Items]          
Repurchase of common stock (in shares) | shares       11,687 18,273
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).
v3.24.1.u1
Stockholders' Equity (Amounts Recognized in AOCI) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance beginning $ 1,494,435 $ 1,555,095
Other comprehensive income (loss) 2,868 (8,264)
Balance ending 1,492,507 1,542,411
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 7,393 (4,694)
Amount of loss reclassified from accumulated other comprehensive loss to net income (loss) (4,525) (3,570)
Other comprehensive income (loss) 2,868 (8,264)
Balance ending $ 19,471 $ 19,726
v3.24.1.u1
Stockholders' Equity (Reclassifications Out of AOCI) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Interest rate swap contracts $ (14,980) $ (14,200)
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 $ (4,525) $ (3,570)
v3.24.1.u1
Earnings Per Share (Details) - shares
shares in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Earnings Per Share [Abstract]    
Diluted earnings per share outstanding adjustment (in shares) 548 461
v3.24.1.u1
Stock-based Compensation (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]    
Stock-based compensation $ 1,324 $ 1,242
Accelerated stock-based compensation $ 863  
v3.24.1.u1
Commitments and Contingencies (Details)
Mar. 31, 2024
legalProceeding
Commitments and Contingencies Disclosure [Abstract]  
Number of pending legal proceedings to which the company is a party 0
v3.24.1.u1
Subsequent Events (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended
May 07, 2024
May 01, 2024
Apr. 15, 2024
Apr. 05, 2024
May 31, 2024
Mar. 31, 2024
Mar. 31, 2023
Subsequent Event [Line Items]              
Common stock issued through distribution reinvestment plan           $ 5,997 $ 6,173
Distributions declared per common share (in dollars per share) [1]           $ 0.40 $ 0.40
Subsequent Event              
Subsequent Event [Line Items]              
Cash   $ 5,582   $ 5,766      
Common stock issued through distribution reinvestment plan   1,960   2,022      
Distributions paid   7,542   7,788      
Annualized distribution per share (in dollars per share) $ 1.60            
Distributions declared per common share daily (in dollars per share) $ 0.00437158            
Subsequent Event | Class A              
Subsequent Event [Line Items]              
Cash   4,470   4,621      
Common stock issued through distribution reinvestment plan   1,134   1,168      
Distributions paid   5,604   5,789      
Distributions declared per common share (in dollars per share)     $ 0.00437158        
Annualized distribution per share (in dollars per share)     1.60        
Subsequent Event | Class I              
Subsequent Event [Line Items]              
Cash   338   349      
Common stock issued through distribution reinvestment plan   222   228      
Distributions paid   560   577      
Distributions declared per common share (in dollars per share)     0.00437158        
Annualized distribution per share (in dollars per share)     1.60        
Subsequent Event | Class T              
Subsequent Event [Line Items]              
Cash   774   796      
Common stock issued through distribution reinvestment plan   604   626      
Distributions paid   $ 1,378   $ 1,422      
Distributions declared per common share (in dollars per share)     0.00437158        
Annualized distribution per share (in dollars per share)     $ 1.60        
Subsequent Event | Class A, I and T shares              
Subsequent Event [Line Items]              
Number of days, distribution calculation 366 days       366 days    
[1] Retroactively adjusted for the effects of the Reverse Stock Split (see Note 1—"Organization and Business Operations" for additional information).