SILA REALTY TRUST, INC., 10-Q filed on 11/8/2023
Quarterly Report
v3.23.3
Cover - shares
 9 Months Ended
Sep. 30, 2023
Nov. 01, 2023
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2023  
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 2023  
Document Fiscal Period Focus Q3  
Entity Central Index Key 0001567925  
No Trading Symbol Flag true  
Current Fiscal Year End Date --12-31  
Class A    
Entity Common Stock, Shares Outstanding (in shares)   169,054,000
Class I    
Entity Common Stock, Shares Outstanding (in shares)   16,942,000
Class T    
Entity Common Stock, Shares Outstanding (in shares)   41,693,000
Class T2    
Entity Common Stock, Shares Outstanding (in shares)   0
v3.23.3
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Real estate:    
Land $ 168,283 $ 163,419
Buildings and improvements, less accumulated depreciation of $246,257 and $209,118, respectively 1,716,978 1,716,663
Total real estate, net 1,885,261 1,880,082
Cash and cash equivalents 14,563 12,917
Intangible assets, less accumulated amortization of $104,869 and $90,239, respectively 159,178 167,483
Goodwill 20,128 21,710
Right-of-use assets 36,649 37,443
Other assets 103,346 100,167
Total assets 2,219,125 2,219,802
Liabilities:    
Credit facility, net of deferred financing costs of $1,948 and $2,412, respectively 603,052 580,588
Accounts payable and other liabilities 29,871 30,619
Intangible liabilities, less accumulated amortization of $7,043 and $5,923, respectively 10,826 11,946
Total lease liabilities 41,260 41,554
Total liabilities 685,009 664,707
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; 243,870,433 and 241,425,332 shares issued, respectively; 227,555,999 and 226,255,969 shares outstanding, respectively 2,276 2,263
Additional paid-in capital 2,037,177 2,024,176
Distributions in excess of accumulated earnings (534,760) (499,334)
Accumulated other comprehensive income 29,423 27,990
Total stockholders’ equity 1,534,116 1,555,095
Total liabilities and stockholders’ equity $ 2,219,125 $ 2,219,802
v3.23.3
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Buildings and improvements, accumulated depreciation $ 246,257 $ 209,118
Intangible assets, accumulated amortization 104,869 90,239
Credit facility, deferred financing costs 1,948 2,412
Intangible liabilities, accumulated amortization $ 7,043 $ 5,923
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 100,000,000 100,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 510,000,000 510,000,000
Common stock, shares issued (in shares) 243,870,433 241,425,332
Common stock, shares outstanding (in shares) 227,555,999 226,255,969
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenue:        
Rental revenue $ 48,542 $ 46,881 $ 143,151 $ 136,081
Expenses:        
Rental expenses 5,005 4,590 14,728 13,219
General and administrative expenses 4,828 4,760 16,478 16,766
Depreciation and amortization 18,097 18,641 55,452 54,443
Impairment losses 0 0 6,708 7,387
Total operating expenses 27,930 27,991 93,366 91,815
Gain on real estate dispositions 1 0 22 460
Interest and other expenses, net 5,630 5,498 16,769 17,942
Net income attributable to common stockholders 14,983 13,392 33,038 26,784
Other comprehensive income - unrealized gain on interest rate swaps, net 2,315 16,345 1,433 34,457
Comprehensive income attributable to common stockholders $ 17,298 $ 29,737 $ 34,471 $ 61,241
Weighted average number of common shares outstanding:        
Basic (in shares) 227,436,306 225,638,485 226,995,005 225,052,921
Diluted (in shares) 229,282,662 226,957,015 228,843,909 226,399,118
Net income per common share attributable to common stockholders:        
Basic (in dollars per share) $ 0.07 $ 0.06 $ 0.15 $ 0.12
Diluted (in dollars per share) 0.06 0.06 0.14 0.12
Distributions declared per common share (in dollars per share) $ 0.10 $ 0.10 $ 0.30 $ 0.30
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Total Stockholders’ Equity
Common Stock
Additional Paid-in Capital
Distributions in Excess of Accumulated Earnings
Accumulated Other Comprehensive Income
Balance, (in shares) at Dec. 31, 2021     224,179,939      
Balance, beginning at Dec. 31, 2021   $ 1,601,130 $ 2,242 $ 2,004,404 $ (400,669) $ (4,847)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under the distribution reinvestment plan (in shares)     2,265,628      
Issuance of common stock under the distribution reinvestment plan $ 18,594 18,594 $ 23 18,571    
Vesting of restricted stock (in shares)     174,825      
Stock-based compensation   3,034 $ 1 3,033    
Repurchase of common stock (in shares)     (786,861)      
Repurchase of common stock   (6,452) $ (8) (6,444)    
Distributions to common stockholders   (67,706)     (67,706)  
Other comprehensive income (loss)   34,457       34,457
Net income $ 26,784 26,784     26,784  
Balance, (in shares) at Sep. 30, 2022     225,833,531      
Balance, ending at Sep. 30, 2022   1,609,841 $ 2,258 2,019,564 (441,591) 29,610
Balance, (in shares) at Jun. 30, 2022     225,240,223      
Balance, beginning at Jun. 30, 2022   1,597,668 $ 2,252 2,014,252 (432,101) 13,265
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under the distribution reinvestment plan (in shares)     767,755      
Issuance of common stock under the distribution reinvestment plan   6,304 $ 8 6,296    
Vesting of restricted stock (in shares)     50,689      
Stock-based compensation   860   860    
Repurchase of common stock (in shares)     (225,136)      
Repurchase of common stock   (1,846) $ (2) (1,844)    
Distributions to common stockholders   (22,882)     (22,882)  
Other comprehensive income (loss)   16,345       16,345
Net income   13,392     13,392  
Balance, (in shares) at Sep. 30, 2022     225,833,531      
Balance, ending at Sep. 30, 2022   1,609,841 $ 2,258 2,019,564 (441,591) 29,610
Balance, (in shares) at Dec. 31, 2022 226,255,969   226,255,969      
Balance, beginning at Dec. 31, 2022   1,555,095 $ 2,263 2,024,176 (499,334) 27,990
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under the distribution reinvestment plan (in shares)     2,284,648      
Issuance of common stock under the distribution reinvestment plan $ 18,675 18,675 $ 23 18,652    
Vesting of restricted stock (in shares)     160,453      
Stock-based compensation   3,721 $ 1 3,720    
Other offering costs   (6)   (6)    
Repurchase of common stock (in shares)     (1,145,071)      
Repurchase of common stock   (9,376) $ (11) (9,365)    
Distributions to common stockholders   (68,464)     (68,464)  
Other comprehensive income (loss)   1,433       1,433
Net income $ 33,038 33,038     33,038  
Balance, (in shares) at Sep. 30, 2023 227,555,999   227,555,999      
Balance, ending at Sep. 30, 2023   1,534,116 $ 2,276 2,037,177 (534,760) 29,423
Balance, (in shares) at Jun. 30, 2023     227,143,142      
Balance, beginning at Jun. 30, 2023   1,535,863 $ 2,272 2,033,110 (526,627) 27,108
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under the distribution reinvestment plan (in shares)     767,734      
Issuance of common stock under the distribution reinvestment plan   6,225 $ 8 6,217    
Vesting of restricted stock (in shares)     61,002      
Stock-based compensation   1,228   1,228    
Repurchase of common stock (in shares)     (415,879)      
Repurchase of common stock   (3,382) $ (4) (3,378)    
Distributions to common stockholders   (23,116)     (23,116)  
Other comprehensive income (loss)   2,315       2,315
Net income   14,983     14,983  
Balance, (in shares) at Sep. 30, 2023 227,555,999   227,555,999      
Balance, ending at Sep. 30, 2023   $ 1,534,116 $ 2,276 $ 2,037,177 $ (534,760) $ 29,423
v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Cash flows from operating activities:    
Net income attributable to common stockholders $ 33,038 $ 26,784
Adjustments to reconcile net income attributable to common stockholders to net cash provided by operating activities:    
Depreciation and amortization 55,452 54,443
Amortization of deferred financing costs 1,240 1,267
Amortization of above- and below-market leases 619 362
Other amortization expenses 598 1,989
Gain on real estate dispositions (22) (460)
Loss on extinguishment of debt 0 3,367
Impairment losses 6,708 7,387
Straight-line rent adjustments, net of write-offs (2,490) (7,653)
Stock-based compensation 3,721 3,034
Changes in operating assets and liabilities:    
Accounts payable and other liabilities (1,063) (2,647)
Other assets 40 1,158
Net cash provided by operating activities 97,841 89,031
Cash flows from investing activities:    
Investments in real estate (69,821) (157,194)
Proceeds from real estate dispositions 12,388 22,822
Capital expenditures and other costs (1,590) (7,577)
Net cash used in investing activities (59,023) (141,949)
Cash flows from financing activities:    
Proceeds from credit facility 50,000 845,000
Payments on credit facility (28,000) (745,000)
Payments for extinguishment of debt 0 (4)
Payments of deferred financing costs (12) (6,936)
Repurchase of common stock (9,376) (6,452)
Offering costs on issuance of common stock (10) (193)
Distributions to common stockholders (49,774) (48,920)
Net cash (used in) provided by financing activities (37,172) 37,495
Net change in cash, cash equivalents and restricted cash 1,646 (15,423)
Cash, cash equivalents and restricted cash - Beginning of period 13,083 32,880
Cash, cash equivalents and restricted cash - End of period 14,729 17,457
Supplemental cash flow disclosure:    
Interest paid, net of interest capitalized 15,751 12,451
Supplemental disclosure of non-cash transactions:    
Common stock issued through distribution reinvestment plan 18,675 18,594
Change in accrued distributions to common stockholders 15 192
Change in accounts payable and other liabilities related to capital expenditures and investments in real estate 244 (3,295)
Right-of-use assets obtained in exchange for new lease liabilities $ 0 $ 15,305
v3.23.3
Organization and Business Operations
 9 Months Ended
Sep. 30, 2023
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 invests in high-quality properties leased to tenants. The Company is primarily focused on investing in healthcare assets across the continuum of care, with emphasis on lower cost patient settings, which the Company believes typically generate predictable, durable and growing income streams. The Company may also make other real estate-related investments, which may include equity or debt interests in other real estate entities.
Substantially all of the Company’s business is conducted through Sila Realty Operating Partnership, LP, a Delaware limited partnership, or the Operating Partnership. The Company is the sole general partner of the Operating Partnership and directly and indirectly owns 100% of the Operating Partnership.
Except as the context otherwise requires, the “Company” refers to Sila Realty Trust, Inc., the Operating Partnership and their wholly-owned subsidiaries.
v3.23.3
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2023
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, 2022, and related notes thereto set forth in the Company’s Annual Report on Form 10-K, filed with the SEC on March 16, 2023. In the opinion of management, all adjustments, consisting of a normal and recurring nature considered for a fair presentation, have been included. Operating results for the three and nine months ended September 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.
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.
Restricted Cash
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):
Nine Months Ended
September 30,
20232022
Beginning of period:
Cash and cash equivalents$12,917 $32,359 
Restricted cash166 521 
Cash, cash equivalents and restricted cash$13,083 $32,880 
End of period:
Cash and cash equivalents$14,563 $17,291 
Restricted cash166 

166 
Cash, cash equivalents and restricted cash$14,729 $17,457 
Reclassifications
The Company determined that certain expenses, previously presented within general and administrative expenses, are more closely related to the operations of its properties. As a result, these amounts have been reclassified to rental expenses for the prior period to conform to the current period presentation.
v3.23.3
Real Estate Investments
 9 Months Ended
Sep. 30, 2023
Real Estate [Abstract]  
Real Estate Investments Real Estate Investments
Real Estate Property Acquisitions
During the nine months ended September 30, 2023, the Company purchased two 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 and the purchase price allocation for acquisitions during the nine months ended September 30, 2023 (amounts in thousands):
Property Description Date AcquiredOwnership PercentageConsideration Transferred
(amount in thousands)
West Palm Beach Healthcare Facility06/15/2023100%$9,920 
Burr Ridge Healthcare Facility 09/27/2023100%59,902 
Total $69,822 
Total
Land$6,892 
Building and improvements51,337 
Tenant improvements1,826 
In-place leases9,767 
Total assets acquired$69,822 
The Company capitalized acquisition costs of approximately $158,000, which are included in the allocation of the real estate acquisitions presented above.
Real Estate Property Dispositions
On March 31, 2023, the Company sold one property for a sales price of $12,500,000, consisting of $5,000,000 in cash and $7,500,000 that was structured as a note receivable, which was collected in full on June 30, 2023. Interest income on the note receivable was $105,000 for the nine months ended September 30, 2023, and is recorded in interest and other expenses, net, on the accompanying condensed consolidated statement of comprehensive income.
On September 29, 2023, the Company sold one property for a sales price of $250,000.
Investment Risk Concentrations
As of September 30, 2023, the Company had one exposure to geographic concentration that accounted for at least 10.0% of rental revenue for the nine months ended September 30, 2023. Real estate properties located in the Houston-The Woodlands-Sugar Land, Texas metropolitan statistical area accounted for 10.4% of rental revenue for the nine months ended September 30, 2023.
As of September 30, 2023, the Company had one exposure to tenant concentration that accounted for at least 10.0% of rental revenue for the nine months ended September 30, 2023. The leases with tenants at properties under the common control of Post Acute Medical, LLC and its affiliates accounted for 14.3% of rental revenue for the nine months ended September 30, 2023.
Impairment Losses
The Company recorded impairment losses on real estate of $6,708,000 (including goodwill impairments of $1,582,000), for the nine months ended September 30, 2023, as a result of tenant related triggering events that occurred at certain properties. In addition, during the nine months ended September 30, 2023, the Company recorded an impairment of in-place lease and above-market lease intangible assets of $592,000 and $260,000, respectively. The fair values of these properties were determined based on the guidance in ASC 820, Fair Value Measurement. These impairments were allocated to the asset groups, for each respective property, on a pro-rata basis, which included land, buildings and improvements, and their related intangible assets.
During the nine months ended September 30, 2022, the Company recorded impairment losses on real estate of $7,387,000 (including goodwill impairments of $278,000). In addition, during the nine months ended September 30, 2022, the Company recorded an impairment of an in-place lease intangible asset of $380,000. The property related to the 2022 impairments was sold on March 31, 2023.
Impairment losses on real estate (including goodwill impairments) 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.
v3.23.3
Intangible Assets, Net
 9 Months Ended
Sep. 30, 2023
Finite-Lived Intangible Assets, Net [Abstract]  
Intangible Assets, Net Intangible Assets, Net
Intangible assets, net, consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands, except weighted average remaining life amounts):
 September 30, 2023December 31, 2022
In-place leases, net of accumulated amortization of $98,193 and $83,788, respectively (with a weighted average remaining life of 8.3 years and 8.9 years, respectively)
$148,800 $155,365 
Above-market leases, net of accumulated amortization of $6,676 and $6,451, respectively (with a weighted average remaining life of 7.0 years and 7.9 years, respectively)
10,378 12,118 
$159,178 $167,483 
The aggregate weighted average remaining life of the intangible assets was 8.2 years and 8.8 years as of September 30, 2023 and December 31, 2022, respectively.
Amortization of intangible assets was $5,424,000 and $5,839,000 for the three months ended September 30, 2023 and 2022, respectively, and $17,630,000 and $17,557,000 for the nine months ended September 30, 2023 and 2022, 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.
v3.23.3
Intangible Liabilities, Net
 9 Months Ended
Sep. 30, 2023
Intangible Lease Liabilities, Net [Abstract]  
Intangible Liabilities, Net Intangible Liabilities, Net
Intangible liabilities, net, consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands, except weighted average remaining life amounts):
September 30, 2023December 31, 2022
Below-market leases, net of accumulated amortization of $7,043 and $5,923, respectively (with a weighted average remaining life of 7.6 years and 8.4 years, respectively)
$10,826 $11,946 
Amortization of below-market leases was $373,000 and $373,000 for the three months ended September 30, 2023 and 2022, respectively, and $1,120,000 and $1,106,000 for the nine months ended September 30, 2023 and 2022, respectively. Amortization of below-market leases is recorded as an adjustment to rental revenue in the accompanying condensed consolidated statements of comprehensive income.
v3.23.3
Leases
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leases Leases
Lessor
Rental Revenue
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 September 30, 2023, for the period ending December 31, 2023, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands):

September 30, 2023
Period ending December 31, 2023$44,254 
2024178,522 
2025174,706 
2026169,052 
2027165,342 
Thereafter990,386 
Total$1,722,262 
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 36.7 years as of September 30, 2023.
The future rent payments, discounted by the Company's IBRs, under non-cancellable operating leases in effect as of September 30, 2023, for the period ending December 31, 2023, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
September 30, 2023
Period ending December 31, 2023$671 
20242,746 
20252,768 
20262,715 
20272,681 
Thereafter107,456 
Total undiscounted rental payments119,037 
Less imputed interest(77,777)
Total lease liabilities$41,260 
The following table provides details of the Company's total lease costs for the three and nine months ended September 30, 2023 and 2022 (amounts in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
Location in Condensed Consolidated Statements of Comprehensive Income2023202220232022
Operating lease costs:
Ground lease costs (1)
Rental expenses$682 $615 $2,045 $1,562 
Corporate operating lease costsGeneral and administrative expenses175 182 551 559 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$166 $135 $564 $354 
(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
Rental Revenue
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 September 30, 2023, for the period ending December 31, 2023, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands):

September 30, 2023
Period ending December 31, 2023$44,254 
2024178,522 
2025174,706 
2026169,052 
2027165,342 
Thereafter990,386 
Total$1,722,262 
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 36.7 years as of September 30, 2023.
The future rent payments, discounted by the Company's IBRs, under non-cancellable operating leases in effect as of September 30, 2023, for the period ending December 31, 2023, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
September 30, 2023
Period ending December 31, 2023$671 
20242,746 
20252,768 
20262,715 
20272,681 
Thereafter107,456 
Total undiscounted rental payments119,037 
Less imputed interest(77,777)
Total lease liabilities$41,260 
The following table provides details of the Company's total lease costs for the three and nine months ended September 30, 2023 and 2022 (amounts in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
Location in Condensed Consolidated Statements of Comprehensive Income2023202220232022
Operating lease costs:
Ground lease costs (1)
Rental expenses$682 $615 $2,045 $1,562 
Corporate operating lease costsGeneral and administrative expenses175 182 551 559 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$166 $135 $564 $354 
(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.
v3.23.3
Other Assets
 9 Months Ended
Sep. 30, 2023
Other Assets [Abstract]  
Other Assets Other Assets Other assets consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):
 September 30, 2023December 31, 2022
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $1,654 and $889, respectively
$2,470 $3,178 
Leasing commissions, net of accumulated amortization of $174 and $167, respectively
610 775 
Restricted cash166 166 
Tenant receivables1,966 1,736 
Straight-line rent receivable64,805 62,457 
Prepaid and other assets3,906 3,865 
Derivative assets29,423 27,990 
$103,346 $100,167 
v3.23.3
Accounts Payable and Other Liabilities
 9 Months Ended
Sep. 30, 2023
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 September 30, 2023 and December 31, 2022 (amounts in thousands):
 September 30, 2023December 31, 2022
Accounts payable and accrued expenses$4,236 $5,387 
Accrued interest expense1,903 1,941 
Accrued property taxes4,606 2,421 
Accrued personnel costs2,645 3,940 
Distributions payable to stockholders7,518 7,719 
Performance DSUs distributions payable789 573 
Tenant deposits877 877 
Deferred rental income7,297 7,761 
$29,871 $30,619 
v3.23.3
Credit Facility
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Credit Facility Credit Facility
The Company's outstanding credit facility as of September 30, 2023 and December 31, 2022 consisted of the following (amounts in thousands):
September 30, 2023December 31, 2022
Variable rate revolving line of credit$50,000 $8,000 
Variable rate term loans fixed through interest rate swaps525,000 485,000 
Variable rate term loans30,000 90,000 
Total credit facility, principal amount outstanding605,000 583,000 
Unamortized deferred financing costs related to credit facility term loans(1,948)(2,412)
Total credit facility, net of deferred financing costs$603,052 $580,588 
Significant activities regarding the credit facility during the nine months ended September 30, 2023 include:
•On February 17, 2023, the Company entered into an interest rate swap agreement to hedge $40,000,000 of its variable rate term loans with an effective date of March 1, 2023.
•On March 8, 2023, the Company repaid $8,000,000 on its revolving line of credit with cash flows from operations.
•On April 13, 2023, the Company repaid $10,000,000 on its 2024 term loan with proceeds from a disposition and cash flows from operations.
•On July 13, 2023, the Company repaid $10,000,000 on its 2024 term loan with proceeds from the collection of a note receivable related to a disposition and cash flows from operations.
•On September 26, 2023, the Company drew $50,000,000 on its revolving line of credit to fund an acquisition.
The principal payments due on the credit facility as of September 30, 2023, for the period ending December 31, 2023, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
September 30, 2023
Period ending December 31, 2023$— 
2024 (1)
280,000 
2025— 
202650,000 
2027— 
Thereafter275,000 
$605,000 
(1)The 2024 term loan has a maturity date of December 31, 2024, and, at the Company's election, may be extended for a period of six-months on no more than two occasions, subject to the satisfaction of certain conditions, including the payment of an extension fee.
v3.23.3
Fair Value
 9 Months Ended
Sep. 30, 2023
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 $605,000,000 and $583,000,000, which approximated its fair value due to the variable nature of the terms as of September 30, 2023 and December 31, 2022, respectively.
The fair value of the Company's credit facility is estimated based on the interest rates currently offered to the Company by its financial institutions.
Derivative instruments—The Company’s derivative instruments consist of interest rate swaps. These swaps are carried at fair value to comply with the provisions of ASC 820. The fair value of these instruments is determined using interest rate market pricing models. The Company incorporated credit valuation adjustments to appropriately reflect the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The Company determined that the 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 September 30, 2023, 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 that are required to be measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 (amounts in thousands):
 September 30, 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$— $29,423 $— $29,423 
Total assets at fair value$— $29,423 $— $29,423 
 December 31, 2022
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets$— $27,990 $— $27,990 
Total assets at fair value$— $27,990 $— $27,990 
Derivative assets are reported in the condensed consolidated balance sheets as other assets.
Real Estate Assets—Certain real estate assets (which include land, buildings and improvements and intangible assets) were adjusted to fair value as a result of impairments which occurred during the nine months ended September 30, 2023. The fair values of real estate assets were determined by using either third-party purchase offers or comparable sales information. The fair values of real estate assets based on third-party purchase offers are reflected in the Level 2 fair value hierarchy. The comparable sales technique uses estimates of properties similar to the subject property by comparing prices per square foot considering recent transaction activity. The estimates of comparable sales and prices per square foot have been adjusted, and are considered significant inputs and thus are classified within Level 3 of the fair value hierarchy.
The following table shows the fair value of the Company's real estate assets, including intangible assets, measured at fair value on a non-recurring basis as of the date on which the event took place, which was June 30, 2023 (amounts in thousands):
June 30, 2023
Fair Value Hierarchy
Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs (Level 3) (1)
Total Fair
Value
Total Losses (2)
Real estate assets$— $20,726 $1,552 $22,278 $5,978 
(1)The fair value of real estate assets was derived using the comparable sales technique. The comparable sales price per square foot of $98.04 used in determining the fair value is considered a significant unobservable input.
(2)Amount includes impairment of in-place lease and above-market lease intangible assets of $592,000 and $260,000, respectively.
v3.23.3
Derivative Instruments and Hedging Activities
 9 Months Ended
Sep. 30, 2023
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 and other expenses, net, as interest is incurred on the Company’s variable rate debt. During the next twelve months, the Company estimates that an additional $17,453,000 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		September 30, 2023December 31, 2022
Outstanding
Notional
Amount		Fair Value ofOutstanding
Notional
Amount		Fair Value of
AssetsAssets
Interest rate swaps(1)05/01/2022 to
05/01/2023		12/31/2024 to
01/31/2028		$525,000 $29,423 $485,000 $27,990 
(1)     Derivative assets are reported in the condensed consolidated balance sheets as other assets.
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 recognized on the interest rate derivatives designated as cash flow hedges for the three and nine months ended September 30, 2023 and 2022 (amounts in thousands):
Derivatives in Cash Flow
Hedging Relationships		Amount of Income Recognized
in Other Comprehensive Income on Derivatives		Location of Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Amount of Income (Loss)
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income
Three Months Ended September 30, 2023
Interest rate swaps$6,780 Interest and other expenses, net$4,465 $5,630 
Three Months Ended September 30, 2022
Interest rate swaps$16,724 Interest and other expenses, net$379 $5,498 
Nine Months Ended September 30, 2023
Interest rate swaps$13,550 Interest and other expenses, net$12,117 $16,769 
Nine Months Ended September 30, 2022
Interest rate swaps$31,545 Interest and other expenses, net$(2,912)$17,942 
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 September 30, 2023, the Company had no derivatives with fair value in a net liability position, inclusive of accrued interest but excluding any adjustment for nonperformance risk related to the agreement. As of September 30, 2023, there were no termination events or events of default related to the interest rate swaps.
Tabular Disclosure Offsetting Derivatives
The Company has elected not to offset derivative positions in its condensed consolidated financial statements. The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of September 30, 2023 and December 31, 2022 (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
September 30, 2023$29,423 $— $29,423 $— $— $29,423 
December 31, 2022$27,990 $— $27,990 $— $— $27,990 
v3.23.3
Stockholders' Equity
 9 Months Ended
Sep. 30, 2023
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders' Equity
Distributions Payable
As of September 30, 2023, the Company had distributions payable of approximately $7,518,000. Of these distributions payable, approximately $5,502,000 was paid in cash on October 6, 2023, and approximately $2,016,000 was reinvested in shares of common stock pursuant to our distribution reinvestment plan, or the DRIP, effective October 1, 2023.
Share Repurchase Program
The Company’s Amended and Restated Share Repurchase Program allows for repurchases of shares of the Company’s common stock upon meeting certain criteria. During the nine months ended September 30, 2023, the Company repurchased 1,145,071 Class A shares, Class I shares and Class T shares of common stock (879,861 Class A shares, 102,570 Class I shares and 162,640 Class T shares), for an aggregate purchase price of approximately $9,376,000 (an average of $8.19 per share). During the nine months ended September 30, 2022, the Company repurchased 786,861 Class A shares, Class I shares and Class T shares of common stock (690,494 Class A shares, 20,905 Class I shares and 75,462 Class T shares), for an aggregate purchase price of approximately $6,452,000 (an average of $8.20 per share).
Accumulated Other Comprehensive Income
The following table presents a rollforward of amounts recognized in accumulated other comprehensive income by component for the nine months ended September 30, 2023 and 2022 (amounts in thousands):
Unrealized Income
on Derivative
Instruments
Balance as of December 31, 2022$27,990 
Other comprehensive income before reclassification13,550 
Amount of income reclassified from accumulated other comprehensive income to net income(12,117)
Other comprehensive income1,433 
Balance as of September 30, 2023$29,423 

Unrealized Income
on Derivative
Instruments
Balance as of December 31, 2021$(4,847)
Other comprehensive income before reclassification31,545 
Amount of loss reclassified from accumulated other comprehensive loss to net income2,912 
Other comprehensive income34,457 
Balance as of September 30, 2022$29,610 
The following table presents reclassifications out of accumulated other comprehensive income for the nine months ended September 30, 2023 and 2022 (amounts in thousands):
Details about Accumulated Other
Comprehensive Income Components		(Income) Loss Amounts Reclassified from
Accumulated Other Comprehensive Income to Net Income		Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income
Nine Months Ended
September 30,
20232022
Interest rate swap contracts $(12,117)$2,912 Interest and other expense, net
v3.23.3
Earnings Per Share
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per ShareThe 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, give rise to potentially dilutive shares of common stock. For the three and nine months ended September 30, 2023, diluted earnings per share reflected the effect of approximately 1,846,000 and 1,849,000, respectively, of non-vested shares of restricted common stock and Performance DSUs that were outstanding. For the three and nine months ended September 30, 2022, diluted earnings per share reflected the effect of approximately 1,319,000 and 1,346,000, respectively, of non-vested shares of restricted common stock and Performance DSUs that were outstanding.
v3.23.3
Stock-based Compensation
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
On March 6, 2020, the Board approved the Amended and Restated 2014 Restricted Share Plan, or 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.
During the nine months ended September 30, 2023, the Company granted time-based awards to its executive officers and certain employees, consisting of 284,063 restricted shares of Class A common stock, or the Time-Based 2023 Awards. The Time-Based 2023 Awards will vest ratably over four years following the grant date, subject to each executive's and employee's employment through the applicable vesting dates, with certain exceptions.
In addition, during the nine months ended September 30, 2023, the Company's compensation committee approved Performance DSUs to be granted to its executive officers for performance-based awards, or the Performance-Based 2023 Awards. The Performance-Based 2023 Awards will be measured based on Company performance over a three-year performance period ending on December 31, 2025. Subject to each executive's continuous employment through the applicable vesting dates, with certain exceptions, the Performance-Based DSUs, if any, will be issued following the performance period end date. The actual value realized by each executive will depend on the market value of shares of stock or units on the date that the awards vest and the actual number of shares of stock or units that vest.
The Company recognized total stock-based compensation expense of $1,228,000 and $860,000, respectively, for the three months ended September 30, 2023 and 2022, and $3,721,000 and $3,034,000, respectively, for the nine months ended September 30, 2023, and 2022. 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.
v3.23.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2023
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 September 30, 2023, 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.
v3.23.3
Subsequent Events
 9 Months Ended
Sep. 30, 2023
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Distributions Paid to Stockholders
The following table summarizes the Company's distributions paid to stockholders on October 6, 2023, for the period from September 1, 2023 through September 30, 2023 (amounts in thousands):
Payment DateCommon Stock CashDRIPTotal Distribution
October 6, 2023Class A$4,419 $1,176 $5,595 
October 6, 2023Class I333 222 555 
October 6, 2023Class T750 618 1,368 
$5,502 $2,016 $7,518 
The following table summarizes the Company's distributions paid to stockholders on November 7, 2023, for the period from October 1, 2023 through October 31, 2023 (amounts in thousands):
Payment DateCommon Stock CashDRIPTotal Distribution
November 7, 2023Class A$4,581 $1,205 $5,786 
November 7, 2023Class I346 229 575 
November 7, 2023Class T779 637 1,416 
$5,706 $2,071 $7,777 
Distributions Authorized
The following tables summarize the daily distributions approved and authorized by the Board subsequent to September 30, 2023:
Authorization Date (1)
Common Stock
Daily Distribution Rate (1)
Annualized Distribution Per Share
October 17, 2023Class A$0.00109589 $0.40 
October 17, 2023Class I$0.00109589 $0.40 
October 17, 2023Class T$0.00109589 $0.40 
Authorization Date (2)
Common Stock
Daily Distribution Rate (2)
Annualized Distribution Per Share
November 7, 2023Class A$0.00109589 $0.40 
November 7, 2023Class I$0.00109589 $0.40 
November 7, 2023Class T$0.00109589 $0.40 
(1)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on November 1, 2023 and ending on November 30, 2023. The distributions are calculated based on 365 days in the calendar year. The distributions declared for each record date in November 2023 will be paid in December 2023. The distributions are payable to stockholders from legally available funds therefor.
(2)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on December 1, 2023 and ending on December 31, 2023. The distributions will be calculated based on 365 days in the calendar year. The distributions declared for each record date in December 2023 will be paid in January 2024. The distributions will be payable to stockholders from legally available funds therefor.
Repayment on Credit Facility
On November 1, 2023, the Company repaid $8,000,000 on its revolving line of credit with cash flows from operations and proceeds from a disposition.
v3.23.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Pay vs Performance Disclosure        
Net income (loss) attributable to common stockholders $ 14,983 $ 13,392 $ 33,038 $ 26,784
v3.23.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.23.3
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2023
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.
Restricted Cash Restricted CashRestricted 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.
Reclassifications
Reclassifications
The Company determined that certain expenses, previously presented within general and administrative expenses, are more closely related to the operations of its properties. As a result, these amounts have been reclassified to rental expenses for the prior period to conform to the current period presentation.
v3.23.3
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2023
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):
Nine Months Ended
September 30,
20232022
Beginning of period:
Cash and cash equivalents$12,917 $32,359 
Restricted cash166 521 
Cash, cash equivalents and restricted cash$13,083 $32,880 
End of period:
Cash and cash equivalents$14,563 $17,291 
Restricted cash166 

166 
Cash, cash equivalents and restricted cash$14,729 $17,457 
v3.23.3
Real Estate Investments (Tables)
 9 Months Ended
Sep. 30, 2023
Real Estate [Abstract]  
Schedule of Consideration Transferred for Properties Acquired The following table summarizes the consideration transferred and the purchase price allocation for acquisitions during the nine months ended September 30, 2023 (amounts in thousands):
Property Description Date AcquiredOwnership PercentageConsideration Transferred
(amount in thousands)
West Palm Beach Healthcare Facility06/15/2023100%$9,920 
Burr Ridge Healthcare Facility 09/27/2023100%59,902 
Total $69,822 
Schedule of Allocation of Acquisitions
Total
Land$6,892 
Building and improvements51,337 
Tenant improvements1,826 
In-place leases9,767 
Total assets acquired$69,822 
v3.23.3
Intangible Assets, Net (Tables)
 9 Months Ended
Sep. 30, 2023
Finite-Lived Intangible Assets, Net [Abstract]  
Schedule of Intangible Assets, Net Intangible assets, net, consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands, except weighted average remaining life amounts):
 September 30, 2023December 31, 2022
In-place leases, net of accumulated amortization of $98,193 and $83,788, respectively (with a weighted average remaining life of 8.3 years and 8.9 years, respectively)
$148,800 $155,365 
Above-market leases, net of accumulated amortization of $6,676 and $6,451, respectively (with a weighted average remaining life of 7.0 years and 7.9 years, respectively)
10,378 12,118 
$159,178 $167,483 
v3.23.3
Intangible Liabilities, Net (Tables)
 9 Months Ended
Sep. 30, 2023
Intangible Lease Liabilities, Net [Abstract]  
Schedule of Intangible Liabilities, Net
Intangible liabilities, net, consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands, except weighted average remaining life amounts):
September 30, 2023December 31, 2022
Below-market leases, net of accumulated amortization of $7,043 and $5,923, respectively (with a weighted average remaining life of 7.6 years and 8.4 years, respectively)
$10,826 $11,946 
v3.23.3
Leases (Tables)
 9 Months Ended
Sep. 30, 2023
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 September 30, 2023, for the period ending December 31, 2023, and for each of the next four years ending December 31, and thereafter, are as follows (amounts in thousands):

September 30, 2023
Period ending December 31, 2023$44,254 
2024178,522 
2025174,706 
2026169,052 
2027165,342 
Thereafter990,386 
Total$1,722,262 
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 September 30, 2023, for the period ending December 31, 2023, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
September 30, 2023
Period ending December 31, 2023$671 
20242,746 
20252,768 
20262,715 
20272,681 
Thereafter107,456 
Total undiscounted rental payments119,037 
Less imputed interest(77,777)
Total lease liabilities$41,260 
Schedule of Lease Cost
The following table provides details of the Company's total lease costs for the three and nine months ended September 30, 2023 and 2022 (amounts in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
Location in Condensed Consolidated Statements of Comprehensive Income2023202220232022
Operating lease costs:
Ground lease costs (1)
Rental expenses$682 $615 $2,045 $1,562 
Corporate operating lease costsGeneral and administrative expenses175 182 551 559 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$166 $135 $564 $354 
(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.
v3.23.3
Other Assets (Tables)
 9 Months Ended
Sep. 30, 2023
Other Assets [Abstract]  
Schedule of Other Assets Other assets consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):
 September 30, 2023December 31, 2022
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $1,654 and $889, respectively
$2,470 $3,178 
Leasing commissions, net of accumulated amortization of $174 and $167, respectively
610 775 
Restricted cash166 166 
Tenant receivables1,966 1,736 
Straight-line rent receivable64,805 62,457 
Prepaid and other assets3,906 3,865 
Derivative assets29,423 27,990 
$103,346 $100,167 
v3.23.3
Accounts Payable and Other Liabilities (Tables)
 9 Months Ended
Sep. 30, 2023
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Other Liabilities
Accounts payable and other liabilities consisted of the following as of September 30, 2023 and December 31, 2022 (amounts in thousands):
 September 30, 2023December 31, 2022
Accounts payable and accrued expenses$4,236 $5,387 
Accrued interest expense1,903 1,941 
Accrued property taxes4,606 2,421 
Accrued personnel costs2,645 3,940 
Distributions payable to stockholders7,518 7,719 
Performance DSUs distributions payable789 573 
Tenant deposits877 877 
Deferred rental income7,297 7,761 
$29,871 $30,619 
v3.23.3
Credit Facility (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Credit Facility
The Company's outstanding credit facility as of September 30, 2023 and December 31, 2022 consisted of the following (amounts in thousands):
September 30, 2023December 31, 2022
Variable rate revolving line of credit$50,000 $8,000 
Variable rate term loans fixed through interest rate swaps525,000 485,000 
Variable rate term loans30,000 90,000 
Total credit facility, principal amount outstanding605,000 583,000 
Unamortized deferred financing costs related to credit facility term loans(1,948)(2,412)
Total credit facility, net of deferred financing costs$603,052 $580,588 
Schedule of Future Principal Payments Due on Debt
The principal payments due on the credit facility as of September 30, 2023, for the period ending December 31, 2023, and for each of the next four years ending December 31 and thereafter, are as follows (amounts in thousands):
September 30, 2023
Period ending December 31, 2023$— 
2024 (1)
280,000 
2025— 
202650,000 
2027— 
Thereafter275,000 
$605,000 
(1)The 2024 term loan has a maturity date of December 31, 2024, and, at the Company's election, may be extended for a period of six-months on no more than two occasions, subject to the satisfaction of certain conditions, including the payment of an extension fee.
v3.23.3
Fair Value (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables show the fair value of the Company’s financial assets that are required to be measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 (amounts in thousands):
 September 30, 2023
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets$— $29,423 $— $29,423 
Total assets at fair value$— $29,423 $— $29,423 
 December 31, 2022
 Fair Value Hierarchy 
 Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs (Level 3)		Total Fair
Value
Assets:
Derivative assets$— $27,990 $— $27,990 
Total assets at fair value$— $27,990 $— $27,990 
Schedule of Fair Value, Real Estate Assets Measured on Non-Recurring Basis
The following table shows the fair value of the Company's real estate assets, including intangible assets, measured at fair value on a non-recurring basis as of the date on which the event took place, which was June 30, 2023 (amounts in thousands):
June 30, 2023
Fair Value Hierarchy
Quoted Prices in Active
Markets for Identical
Assets (Level 1)		Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs (Level 3) (1)
Total Fair
Value
Total Losses (2)
Real estate assets$— $20,726 $1,552 $22,278 $5,978 
(1)The fair value of real estate assets was derived using the comparable sales technique. The comparable sales price per square foot of $98.04 used in determining the fair value is considered a significant unobservable input.
(2)Amount includes impairment of in-place lease and above-market lease intangible assets of $592,000 and $260,000, respectively.
v3.23.3
Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2023
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		September 30, 2023December 31, 2022
Outstanding
Notional
Amount		Fair Value ofOutstanding
Notional
Amount		Fair Value of
AssetsAssets
Interest rate swaps(1)05/01/2022 to
05/01/2023		12/31/2024 to
01/31/2028		$525,000 $29,423 $485,000 $27,990 
(1)     Derivative assets are reported in the condensed consolidated balance sheets as other assets.
Schedule of Income and Losses Recognized on Derivative Instruments
The table below summarizes the amount of income recognized on the interest rate derivatives designated as cash flow hedges for the three and nine months ended September 30, 2023 and 2022 (amounts in thousands):
Derivatives in Cash Flow
Hedging Relationships		Amount of Income Recognized
in Other Comprehensive Income on Derivatives		Location of Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Amount of Income (Loss)
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income		Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income
Three Months Ended September 30, 2023
Interest rate swaps$6,780 Interest and other expenses, net$4,465 $5,630 
Three Months Ended September 30, 2022
Interest rate swaps$16,724 Interest and other expenses, net$379 $5,498 
Nine Months Ended September 30, 2023
Interest rate swaps$13,550 Interest and other expenses, net$12,117 $16,769 
Nine Months Ended September 30, 2022
Interest rate swaps$31,545 Interest and other expenses, net$(2,912)$17,942 
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 September 30, 2023 and December 31, 2022 (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
September 30, 2023$29,423 $— $29,423 $— $— $29,423 
December 31, 2022$27,990 $— $27,990 $— $— $27,990 
v3.23.3
Stockholders' Equity (Tables)
 9 Months Ended
Sep. 30, 2023
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 nine months ended September 30, 2023 and 2022 (amounts in thousands):
Unrealized Income
on Derivative
Instruments
Balance as of December 31, 2022$27,990 
Other comprehensive income before reclassification13,550 
Amount of income reclassified from accumulated other comprehensive income to net income(12,117)
Other comprehensive income1,433 
Balance as of September 30, 2023$29,423 

Unrealized Income
on Derivative
Instruments
Balance as of December 31, 2021$(4,847)
Other comprehensive income before reclassification31,545 
Amount of loss reclassified from accumulated other comprehensive loss to net income2,912 
Other comprehensive income34,457 
Balance as of September 30, 2022$29,610 
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
The following table presents reclassifications out of accumulated other comprehensive income for the nine months ended September 30, 2023 and 2022 (amounts in thousands):
Details about Accumulated Other
Comprehensive Income Components		(Income) Loss Amounts Reclassified from
Accumulated Other Comprehensive Income to Net Income		Affected Line Items in the Condensed Consolidated Statements of Comprehensive Income
Nine Months Ended
September 30,
20232022
Interest rate swap contracts $(12,117)$2,912 Interest and other expense, net
v3.23.3
Subsequent Events (Tables)
 9 Months Ended
Sep. 30, 2023
Subsequent Events [Abstract]  
Schedule of Subsequent Events
The following table summarizes the Company's distributions paid to stockholders on October 6, 2023, for the period from September 1, 2023 through September 30, 2023 (amounts in thousands):
Payment DateCommon Stock CashDRIPTotal Distribution
October 6, 2023Class A$4,419 $1,176 $5,595 
October 6, 2023Class I333 222 555 
October 6, 2023Class T750 618 1,368 
$5,502 $2,016 $7,518 
The following table summarizes the Company's distributions paid to stockholders on November 7, 2023, for the period from October 1, 2023 through October 31, 2023 (amounts in thousands):
Payment DateCommon Stock CashDRIPTotal Distribution
November 7, 2023Class A$4,581 $1,205 $5,786 
November 7, 2023Class I346 229 575 
November 7, 2023Class T779 637 1,416 
$5,706 $2,071 $7,777 
Distributions Authorized
The following tables summarize the daily distributions approved and authorized by the Board subsequent to September 30, 2023:
Authorization Date (1)
Common Stock
Daily Distribution Rate (1)
Annualized Distribution Per Share
October 17, 2023Class A$0.00109589 $0.40 
October 17, 2023Class I$0.00109589 $0.40 
October 17, 2023Class T$0.00109589 $0.40 
Authorization Date (2)
Common Stock
Daily Distribution Rate (2)
Annualized Distribution Per Share
November 7, 2023Class A$0.00109589 $0.40 
November 7, 2023Class I$0.00109589 $0.40 
November 7, 2023Class T$0.00109589 $0.40 
(1)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on November 1, 2023 and ending on November 30, 2023. The distributions are calculated based on 365 days in the calendar year. The distributions declared for each record date in November 2023 will be paid in December 2023. The distributions are payable to stockholders from legally available funds therefor.
(2)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on December 1, 2023 and ending on December 31, 2023. The distributions will be calculated based on 365 days in the calendar year. The distributions declared for each record date in December 2023 will be paid in January 2024. The distributions will be payable to stockholders from legally available funds therefor.
v3.23.3
Organization and Business Operations (Details)
 9 Months Ended
Sep. 30, 2023
Operating Partnership  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Ownership interest (as a percentage) 100.00%
v3.23.3
Summary of Significant Accounting Policies (Reconciliation of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Dec. 31, 2021
Accounting Policies [Abstract]        
Cash and cash equivalents $ 14,563 $ 12,917 $ 17,291 $ 32,359
Restricted cash 166 166 166 521
Cash, cash equivalents and restricted cash $ 14,729 $ 13,083 $ 17,457 $ 32,880
v3.23.3
Real Estate Investments (Narrative) (Details)
 3 Months Ended 6 Months Ended 9 Months Ended
Sep. 29, 2023
USD ($)
property
Mar. 31, 2023
USD ($)
property
Sep. 30, 2023
USD ($)
property
statisticalArea
tenant
Sep. 30, 2022
USD ($)
Jun. 30, 2023
USD ($)
Sep. 30, 2023
USD ($)
property
statisticalArea
tenant
Sep. 30, 2022
USD ($)
Jun. 29, 2023
USD ($)
Real Estate [Line Items]                
Number of real estate properties owned | property     2     2    
Capitalized acquisition costs           $ 158,000    
Proceeds from real estate dispositions           12,388,000 $ 22,822,000  
Gain on real estate dispositions     $ 1,000 $ 0   22,000 460,000  
Impairment loss     $ 0 $ 0   6,708,000 7,387,000  
Impairment loss on goodwill           1,582,000 278,000  
In-place leases                
Real Estate [Line Items]                
Impairment of intangible assets         $ 592,000 592,000 $ 380,000  
Above-market leases                
Real Estate [Line Items]                
Impairment of intangible assets         $ 260,000 $ 260,000    
Revenue | Geographic Concentration Risk | Houston-The Woodlands-Sugar Land, Texas MSA                
Real Estate [Line Items]                
Number of geographic concentration | statisticalArea     1     1    
Concentration risk, percentage           10.40%    
Revenue | Customer Concentration Risk | One Tenant                
Real Estate [Line Items]                
Number of major tenants | tenant     1     1    
Revenue | Customer Concentration Risk | Post Acute Medical LLC and affiliates                
Real Estate [Line Items]                
Concentration risk, percentage           14.30%    
2023 Real Estate Property Disposition, 1 | Disposal Group, Disposed of by Sale, Not Discontinued Operations                
Real Estate [Line Items]                
Number of real estate properties sold | property   1            
Sale price of real estate dispositions   $ 12,500,000            
Sales price of real estate disposition, cash   $ 5,000,000            
Note receivable               $ 7,500,000
Interest income on notes receivable           $ 105,000    
2023 Real Estate Property Disposition, 2 | Disposal Group, Disposed of by Sale, Not Discontinued Operations                
Real Estate [Line Items]                
Number of real estate properties sold | property 1              
Sale price of real estate dispositions $ 250,000              
v3.23.3
Real Estate Investments (Schedule of Consideration Transferred for Properties Acquired) (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 27, 2023
Jun. 15, 2023
Sep. 30, 2023
Business Acquisition [Line Items]      
Consideration transferred     $ 69,822
West Palm Beach Healthcare Facility      
Business Acquisition [Line Items]      
Ownership Percentage   100.00%  
Consideration transferred   $ 9,920  
Burr Ridge Healthcare Facility      
Business Acquisition [Line Items]      
Ownership Percentage 100.00%    
Consideration transferred $ 59,902    
v3.23.3
Real Estate Investments (Schedule of Allocation of Acquisitions) (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
USD ($)
Business Acquisition [Line Items]  
Total assets acquired $ 69,822
In-place leases  
Business Acquisition [Line Items]  
Leases 9,767
Land  
Business Acquisition [Line Items]  
Property, plant and equipment acquired 6,892
Building and improvements  
Business Acquisition [Line Items]  
Property, plant and equipment acquired 51,337
Tenant improvements  
Business Acquisition [Line Items]  
Property, plant and equipment acquired $ 1,826
v3.23.3
Intangible Assets, Net (Schedule of Intangible Assets, Net) (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 104,869 $ 90,239
Weighted average remaining useful life of intangible assets (in years) 8 years 2 months 12 days 8 years 9 months 18 days
Intangible assets, net of accumulated amortization $ 159,178 $ 167,483
In-place leases    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 98,193 $ 83,788
Weighted average remaining useful life of intangible assets (in years) 8 years 3 months 18 days 8 years 10 months 24 days
Intangible assets, net of accumulated amortization $ 148,800 $ 155,365
Above-market leases    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets, accumulated amortization $ 6,676 $ 6,451
Weighted average remaining useful life of intangible assets (in years) 7 years 7 years 10 months 24 days
Intangible assets, net of accumulated amortization $ 10,378 $ 12,118
v3.23.3
Intangible Assets, Net (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Finite-Lived Intangible Assets, Net [Abstract]          
Weighted average remaining useful life of intangible assets (in years)     8 years 2 months 12 days   8 years 9 months 18 days
Amortization of intangible assets $ 5,424 $ 5,839 $ 17,630 $ 17,557  
v3.23.3
Intangible Liabilities, Net (Schedule of Intangible Liabilities, Net) (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Intangible Lease Liabilities, Net [Abstract]    
Accumulated amortization of below-market leases $ 7,043 $ 5,923
Weighted average remaining life of below-market leases 7 years 7 months 6 days 8 years 4 months 24 days
Below-market leases, net of accumulated amortization $ 10,826 $ 11,946
v3.23.3
Intangible Liabilities, Net (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Intangible Lease Liabilities, Net [Abstract]        
Amortization of below-market leases $ 373 $ 373 $ 1,120 $ 1,106
v3.23.3
Leases (Schedule of Future Minimum Rent to Lessor from Operating Leases) (Details)
$ in Thousands
Sep. 30, 2023
USD ($)
Leases [Abstract]  
Period ending December 31, 2023 $ 44,254
2024 178,522
2025 174,706
2026 169,052
2027 165,342
Thereafter 990,386
Total $ 1,722,262
v3.23.3
Leases (Narrative) (Details)
Sep. 30, 2023
Leases [Abstract]  
Operating lease, weighted average remaining lease term (in years) 36 years 8 months 12 days
v3.23.3
Leases (Schedule of Rent Payments from Lessee) (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Leases [Abstract]    
Period ending December 31, 2023 $ 671  
2024 2,746  
2025 2,768  
2026 2,715  
2027 2,681  
Thereafter 107,456  
Total undiscounted rental payments 119,037  
Less imputed interest (77,777)  
Total lease liabilities $ 41,260 $ 41,554
v3.23.3
Leases (Schedule of Lease Cost) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash flows for operating leases $ 166 $ 135 $ 564 $ 354
Rental expenses        
Lessee, Lease, Description [Line Items]        
Operating lease costs 682 615 2,045 1,562
General and administrative expenses        
Lessee, Lease, Description [Line Items]        
Operating lease costs $ 175 $ 182 $ 551 $ 559
v3.23.3
Other Assets (Schedule of Other Assets) (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Other Assets [Abstract]    
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $1,654 and $889, respectively $ 2,470 $ 3,178
Leasing commissions, net of accumulated amortization of $174 and $167, respectively 610 775
Restricted cash 166 166
Tenant receivables 1,966 1,736
Straight-line rent receivable 64,805 62,457
Prepaid and other assets 3,906 3,865
Derivative assets 29,423 27,990
Total other assets 103,346 100,167
Deferred financing costs, related to the revolver portion of the credit facility, accumulated amortization 1,654 889
Leasing commissions, accumulated amortization $ 174 $ 167
v3.23.3
Accounts Payable and Other Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Payables and Accruals [Abstract]    
Accounts payable and accrued expenses $ 4,236 $ 5,387
Accrued interest expense 1,903 1,941
Accrued property taxes 4,606 2,421
Accrued personnel costs 2,645 3,940
Distributions payable to stockholders 7,518 7,719
Performance DSUs distributions payable 789 573
Tenant deposits 877 877
Deferred rental income 7,297 7,761
Total accounts payable and other liabilities $ 29,871 $ 30,619
v3.23.3
Credit Facility (Schedule of Credit Facility) (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Line of Credit Facility [Line Items]    
Total credit facility, principal amount outstanding $ 605,000 $ 583,000
Unamortized deferred financing costs related to credit facility term loans (1,948) (2,412)
Total credit facility, net of deferred financing costs 603,052 580,588
Revolving Line of Credit | Variable rate revolving line of credit    
Line of Credit Facility [Line Items]    
Total credit facility, principal amount outstanding 50,000 8,000
Term Loan | Variable rate term loans fixed through interest rate swaps    
Line of Credit Facility [Line Items]    
Total credit facility, principal amount outstanding 525,000 485,000
Term Loan | Variable rate term loans    
Line of Credit Facility [Line Items]    
Total credit facility, principal amount outstanding $ 30,000 $ 90,000
v3.23.3
Credit Facility (Narrative) (Details) - USD ($)
 9 Months Ended
Nov. 01, 2023
Sep. 26, 2023
Jul. 13, 2023
Apr. 13, 2023
Mar. 08, 2023
Sep. 30, 2023
Sep. 30, 2022
Feb. 17, 2023
Line of Credit Facility [Line Items]                
Payments on credit facility           $ 28,000,000 $ 745,000,000  
Proceeds from credit facility           $ 50,000,000 $ 845,000,000  
Subsequent Event                
Line of Credit Facility [Line Items]                
Payments on credit facility $ 8,000,000              
Revolving Line of Credit                
Line of Credit Facility [Line Items]                
Payments on credit facility         $ 8,000,000      
Proceeds from credit facility   $ 50,000,000            
Term Loan                
Line of Credit Facility [Line Items]                
Payments on credit facility     $ 10,000,000 $ 10,000,000        
Interest Rate Swap, Effective Date March 1, 2023                
Line of Credit Facility [Line Items]                
Notional amount               $ 40,000,000
v3.23.3
Credit Facility (Schedule of Principal Payments Due on Credit Facility) (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
USD ($)
Extension
Debt Disclosure [Abstract]  
Period ending December 31, 2023 $ 0
2024 280,000
2025 0
2026 50,000
2027 0
Thereafter 275,000
Total $ 605,000
2024 term loan, extension period 6 months
Number of extensions | Extension 2
v3.23.3
Fair Value (Narrative) (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Fair Value Disclosures [Abstract]    
Total credit facility, principal amount outstanding $ 605,000 $ 583,000
v3.23.3
Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Assets:    
Derivative assets $ 29,423 $ 27,990
Recurring basis    
Assets:    
Derivative assets 29,423 27,990
Total assets at fair value 29,423 27,990
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis    
Assets:    
Derivative assets 0 0
Total assets at fair value 0 0
Significant Other Observable Inputs (Level 2) | Recurring basis    
Assets:    
Derivative assets 29,423 27,990
Total assets at fair value 29,423 27,990
Significant Unobservable Inputs (Level 3) | Recurring basis    
Assets:    
Derivative assets 0 0
Total assets at fair value $ 0 $ 0
v3.23.3
Fair Value (Schedule of Fair Value, Real Estate Assets Measured on Non-Recurring Basis) (Details)
$ in Thousands
 6 Months Ended 9 Months Ended
Jun. 30, 2023
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
Dec. 31, 2022
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value   $ 1,885,261   $ 1,880,082
In-place leases        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Impairment of intangible assets $ 592 $ 592 $ 380  
Significant Unobservable Inputs (Level 3) | Comparable sale price per square foot        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Real estate assets, measurement input 98.04      
Nonrecurring        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value $ 22,278      
Impairment loss on real estate 5,978      
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1)        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value 0      
Nonrecurring | Significant Other Observable Inputs (Level 2)        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value 20,726      
Nonrecurring | Significant Unobservable Inputs (Level 3)        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Estimated fair value $ 1,552      
v3.23.3
Derivative Instruments and Hedging Activities (Narrative) (Details)
$ in Thousands
Sep. 30, 2023
USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Additional gain expected to be reclassified from AOCI into earnings during next twelve months $ 17,453
v3.23.3
Derivative Instruments and Hedging Activities (Schedule of the Notional Amount and Fair Value of Derivative Instruments) (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Derivatives, Fair Value [Line Items]    
Fair Value of Asset $ 29,423 $ 27,990
Interest rate swaps | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Outstanding Notional Amount 525,000 485,000
Interest rate swaps | Designated as Hedging Instrument | Other Assets    
Derivatives, Fair Value [Line Items]    
Fair Value of Asset $ 29,423 $ 27,990
v3.23.3
Derivative Instruments and Hedging Activities (Schedule of Income and Losses Recognized on Derivative Instruments) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Derivative Instruments, Gain (Loss) [Line Items]        
Interest and other expenses, net $ 5,630 $ 5,498 $ 16,769 $ 17,942
Interest rate swaps        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of Income Recognized in Other Comprehensive Income on Derivatives 6,780 16,724 13,550 31,545
Interest rate swaps | Interest and other expenses, net        
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of Income (Loss) Reclassified From Accumulated Other Comprehensive Income to Net Income $ 4,465 $ 379 $ 12,117 $ (2,912)
v3.23.3
Derivative Instruments and Hedging Activities (Schedule of Offsetting of Derivative Assets) (Details) - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Assets $ 29,423 $ 27,990
Gross Amounts Offset in the Balance Sheet 0 0
Net Amounts of Assets Presented in the Balance Sheet 29,423 27,990
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral 0 0
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral 0 0
Net Amount $ 29,423 $ 27,990
v3.23.3
Stockholders' Equity (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Nov. 07, 2023
Oct. 06, 2023
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Class of Stock [Line Items]            
Issuance of common stock under the distribution reinvestment plan         $ 18,675 $ 18,594
Common Stock            
Class of Stock [Line Items]            
Issuance of common stock under the distribution reinvestment plan     $ 8 $ 8 $ 23 $ 23
Repurchase of common stock (in shares)     415,879 225,136 1,145,071 786,861
Repurchase of common stock     $ 4 $ 2 $ 11 $ 8
Subsequent Event            
Class of Stock [Line Items]            
Distributions paid $ 7,777 $ 7,518        
Cash 5,706 5,502        
Issuance of common stock under the distribution reinvestment plan 2,071 2,016        
Class A, I and T Shares | Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)         1,145,071 786,861
Repurchase of common stock         $ 9,376 $ 6,452
Repurchase of common stock, average price per share (in dollars per share)         $ 8.19 $ 8.20
Class A | Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)         879,861 690,494
Class A | Subsequent Event            
Class of Stock [Line Items]            
Distributions paid 5,786 5,595        
Cash 4,581 4,419        
Issuance of common stock under the distribution reinvestment plan 1,205 1,176        
Class I | Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)         102,570 20,905
Class I | Subsequent Event            
Class of Stock [Line Items]            
Distributions paid 575 555        
Cash 346 333        
Issuance of common stock under the distribution reinvestment plan 229 222        
Class T | Common Stock            
Class of Stock [Line Items]            
Repurchase of common stock (in shares)         162,640 75,462
Class T | Subsequent Event            
Class of Stock [Line Items]            
Distributions paid 1,416 1,368        
Cash 779 750        
Issuance of common stock under the distribution reinvestment plan $ 637 $ 618        
v3.23.3
Stockholders' Equity (Amounts Recognized in AOCI) (Details) - Unrealized Income (Loss) on Derivative Instruments - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance, beginning $ 27,990 $ (4,847)
Other comprehensive income before reclassification 13,550 31,545
Amount of (income) loss reclassified from accumulated other comprehensive income (loss) to net income (12,117) 2,912
Other comprehensive (loss) income 1,433 34,457
Balance, ending $ 29,423 $ 29,610
v3.23.3
Stockholders' Equity (Reclassifications Out of AOCI) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Interest and other expenses, net $ 5,630 $ 5,498 $ 16,769 $ 17,942
Interest rate swaps | (Income) Loss 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 and other expenses, net     $ (12,117) $ 2,912
v3.23.3
Earnings Per Share (Details) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Earnings Per Share [Abstract]        
Diluted earnings per share outstanding adjustment (in shares) 1,846 1,319 1,849 1,346
v3.23.3
Stock-based Compensation (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation $ 1,228 $ 860 $ 3,721 $ 3,034
Time-Based Awards        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Awards granted (in shares)     284,063  
Award vesting period under plan     4 years  
Performance -Based Awards        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Performance period     3 years  
v3.23.3
Commitments and Contingencies (Details)
Sep. 30, 2023
legalProceeding
Commitments and Contingencies Disclosure [Abstract]  
Number of pending legal proceedings to which the company is a party 0
v3.23.3
Subsequent Events (Details) - USD ($)
 1 Months Ended 3 Months Ended 9 Months Ended
Nov. 07, 2023
Nov. 01, 2023
Oct. 17, 2023
Oct. 06, 2023
Dec. 31, 2023
Nov. 30, 2023
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Subsequent Event [Line Items]                    
Issuance of common stock under the distribution reinvestment plan                 $ 18,675,000 $ 18,594,000
Distributions declared per common share (in dollars per share)             $ 0.10 $ 0.10 $ 0.30 $ 0.30
Payments on credit facility                 $ 28,000,000 $ 745,000,000
Subsequent Event                    
Subsequent Event [Line Items]                    
Cash $ 5,706,000     $ 5,502,000            
Issuance of common stock under the distribution reinvestment plan 2,071,000     2,016,000            
Distributions paid 7,777,000     7,518,000            
Payments on credit facility   $ 8,000,000                
Class A | Subsequent Event                    
Subsequent Event [Line Items]                    
Cash 4,581,000     4,419,000            
Issuance of common stock under the distribution reinvestment plan 1,205,000     1,176,000            
Distributions paid $ 5,786,000     5,595,000            
Distributions declared per common share (in dollars per share) $ 0.00109589   $ 0.00109589              
Annualized distribution per share (in dollars per share) $ 0.40   0.40              
Class I | Subsequent Event                    
Subsequent Event [Line Items]                    
Cash $ 346,000     333,000            
Issuance of common stock under the distribution reinvestment plan 229,000     222,000            
Distributions paid $ 575,000     555,000            
Distributions declared per common share (in dollars per share) $ 0.00109589   0.00109589              
Annualized distribution per share (in dollars per share) $ 0.40   0.40              
Class T | Subsequent Event                    
Subsequent Event [Line Items]                    
Cash $ 779,000     750,000            
Issuance of common stock under the distribution reinvestment plan 637,000     618,000            
Distributions paid $ 1,416,000     $ 1,368,000            
Distributions declared per common share (in dollars per share) $ 0.00109589   0.00109589              
Annualized distribution per share (in dollars per share) $ 0.40   $ 0.40              
Class A, I and T shares | Subsequent Event                    
Subsequent Event [Line Items]                    
Number of days, distribution calculation         365 days 365 days