v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
As Lessor
The Company's properties are leased to single tenants on a long-term, triple-net basis, which obligates the tenant to be responsible for the ongoing expenses of a property, in addition to its rent obligations. Under certain circumstances the Company will pay for certain expenses on behalf of the tenant and the tenant is required to reimburse the Company. The presentation in the statements of operations for these expenses are gross where the Company records revenue and a corresponding reimbursable expense. Expenses paid directly by a tenant are not reimbursable and therefore are not reflected in the statements of operations. The expense and reimbursable amounts may differ due to timing, since the revenue is recorded on a cash basis. The revenues associated with the reimbursable expenses were classified in "Fees and Reimbursables" in the accompanying consolidated statements of operations. For the three months ended June 30, 2026 and 2025, the reimbursable revenues were $108.2 thousand and $179.6 thousand, respectively. For the six months ended June 30, 2026 and 2025 the reimbursable revenues were $472.3 thousand and $623.1 thousand, respectively. Reimbursable expenses are classified as "Reimbursable Property Expenses" in the accompanying consolidated statements of operations.
The Company's tenants operate in the cannabis industry. All of the Company's leases generally contain annual increases in rent over the expiring rental rate at the time of expiration. As of June 30, 2026, the Company's portfolio has a weighted average remaining lease term of 11.6 years with weighted average annual rent escalator was 2.6%. Certain leases of the Company also contain an improvement allowance, which is generally available to be funded between 12 and 18 months. In some leases, the tenant becomes liable to pay rent as if all the improvement allowance has been funded, even if there are still unfunded commitments. Improvement allowances also contain annual increases which generally increase at the same rate as base rent, per the lease agreement.
Certain of the Company's leases provide the lessee with one, two or three term extension options, which generally contain annual increases in rent, as explained above. Certain of the Company's leases provide the lessee with a right of first refusal or right of first offer in the event the Company markets the leased property for sale. As of June 30, 2026, the Company had two leases that granted the lessee an option to purchase the leased property at its fair market value at the end of the initial lease term in December 2029 and the end of the amended lease term in December 2034, respectively, subject to the satisfaction of certain conditions. As of June 30, 2026, the Company's gross investment in these two properties was approximately $6.3 million.
Lease Income
The following table presents the future contractual minimum rent under the Company’s operating leases as of June 30, 2026 (in thousands):
Year
Contractual Minimum Rent(1)
2026 (six months ending December 31, 2026)$23,887 
202748,761 
202850,011 
202951,295 
203052,208 
Thereafter363,575 
Total$589,737 
(1) Contractual minimum rent includes rent from one property classified as held for sale as June 30, 2026.
Credit Risk and Geographic Concentration
The ability of any of the Company’s tenants to honor the terms of its lease are dependent upon the economic, regulatory, competitive, natural and social factors affecting the community in which that tenant operates. As of June 30, 2026 and 2025, the Company owned 34 properties, leased to 12 and 13 tenants, respectively, across 12 states including Arizona, Arkansas, California, Connecticut, Florida, Illinois, Massachusetts, Missouri, Nevada, North Dakota, Ohio, and Pennsylvania.
The following table presents the tenants in the Company's portfolio that represented the largest percentage of the Company's total rental income and fees, excluding revenue reimbursables, for each of the periods presented:
Three Months Ended June 30,
20262025
TenantNumber of LeasesPercentage of Rental IncomeTenantNumber of LeasesPercentage of Rental Income
Curaleaf1026%Curaleaf1023%
Cresco Labs315%Cresco Labs314%
Trulieve 112%Trulieve 111%
C3 Industries28%The Cannabist Company59%
The Cannabist Company48%C3 Industries28%
Six Months Ended June 30,
20262025
TenantNumber of LeasesPercentage of Rental IncomeTenantNumber of LeasesPercentage of Rental Income
Curaleaf1026%Curaleaf1023%
Cresco Labs315%Cresco Labs314%
Trulieve 112%Trulieve 111%
C3 Industries28%The Cannabist Company59%
The Cannabist Company48%C3 Industries28%
The following table presents the states in the Company’s portfolio that represented the largest percentage of the Company’s total rental income and fees, excluding revenue reimbursable, for each of the periods presented:
Three Months Ended June 30,
20262025
StateNumber of Properties
Percentage of Rental Income
StateNumber of Properties
Percentage of Rental Income
Pennsylvania825%Pennsylvania826%
Florida121%Florida119%
Illinois620%Illinois618%
Missouri212%Missouri211%
Massachusetts 59%Massachusetts 511%
Six Months Ended June 30,
20262025
StateNumber of PropertiesPercentage of Rental IncomeStateNumber of PropertiesPercentage of Rental Income
Pennsylvania825%Pennsylvania826%
Florida121%Florida119%
Illinois620%Illinois618%
Missouri212%Missouri211%
Massachusetts 59%Massachusetts 511%
Condition of Our Tenants
The Cannabist Company
On March 24, 2026, The Cannabist Company ("Cannabist"), which operates at four of the Company's properties, including two properties located in Illinois and two properties located in Massachusetts, publicly announced that it had entered into definitive agreements to sell certain assets and entered into a non-binding memorandum of understanding for the sale of certain production, manufacturing, distribution and sale operations (through the sale of equity or assets) in six states, including Illinois and Massachusetts, where we lease properties to Cannabist, and commenced restructuring proceedings under the Companies Creditors Arrangement Act ("CCAA") in Canada. On May 9, 2026, the U.S. Bankruptcy Court for the District of Delaware granted recognition of the Canadian restructuring proceedings under Chapter 15 of the U.S. Bankruptcy Code. The Company continues to monitor developments related to this tenant and its restructuring proceedings.
During the six months ended June 30, 2026, the Company collected full rent for each of the four properties leased to Cannabist and the tenant remains current on its contractual lease obligations to the Company. The Company holds aggregate security deposits totaling approximately $481.6 thousand across these four properties.
As Lessee
The Company leases office space under an operating lease that expires on August 31, 2027. On November 20, 2025, the Company amended the lease agreement to extend the lease term by one year and recorded a ROU asset and Lease Liability remeasurement of approximately $85.3 thousand using a discount rate of 7.75%. As of
June 30, 2026 and December 31, 2025, the Right of Use ("ROU") asset was approximately $83.9 thousand and $117.9 thousand, respectively. As of June 30, 2026, the remaining lease term was approximately 1.17 years.

The following table presents the future contractual rent obligations as lessee as of June 30, 2026 (in thousands):

YearContractual Base Rent
2026 (six months ending December 31, 2026)$39 
202752(1)
Total Future Contractual Lease Payments$91 
Less: Amount Discounted Using Incremental Borrowing Rate$(10)
Total Lease Liability$81 
(1) The lease is scheduled to expire on August 31, 2027. The lease allows for one renewal option of 3 years commencing immediately upon the expiration of the amended term.
Leases Leases
As Lessor
The Company's properties are leased to single tenants on a long-term, triple-net basis, which obligates the tenant to be responsible for the ongoing expenses of a property, in addition to its rent obligations. Under certain circumstances the Company will pay for certain expenses on behalf of the tenant and the tenant is required to reimburse the Company. The presentation in the statements of operations for these expenses are gross where the Company records revenue and a corresponding reimbursable expense. Expenses paid directly by a tenant are not reimbursable and therefore are not reflected in the statements of operations. The expense and reimbursable amounts may differ due to timing, since the revenue is recorded on a cash basis. The revenues associated with the reimbursable expenses were classified in "Fees and Reimbursables" in the accompanying consolidated statements of operations. For the three months ended June 30, 2026 and 2025, the reimbursable revenues were $108.2 thousand and $179.6 thousand, respectively. For the six months ended June 30, 2026 and 2025 the reimbursable revenues were $472.3 thousand and $623.1 thousand, respectively. Reimbursable expenses are classified as "Reimbursable Property Expenses" in the accompanying consolidated statements of operations.
The Company's tenants operate in the cannabis industry. All of the Company's leases generally contain annual increases in rent over the expiring rental rate at the time of expiration. As of June 30, 2026, the Company's portfolio has a weighted average remaining lease term of 11.6 years with weighted average annual rent escalator was 2.6%. Certain leases of the Company also contain an improvement allowance, which is generally available to be funded between 12 and 18 months. In some leases, the tenant becomes liable to pay rent as if all the improvement allowance has been funded, even if there are still unfunded commitments. Improvement allowances also contain annual increases which generally increase at the same rate as base rent, per the lease agreement.
Certain of the Company's leases provide the lessee with one, two or three term extension options, which generally contain annual increases in rent, as explained above. Certain of the Company's leases provide the lessee with a right of first refusal or right of first offer in the event the Company markets the leased property for sale. As of June 30, 2026, the Company had two leases that granted the lessee an option to purchase the leased property at its fair market value at the end of the initial lease term in December 2029 and the end of the amended lease term in December 2034, respectively, subject to the satisfaction of certain conditions. As of June 30, 2026, the Company's gross investment in these two properties was approximately $6.3 million.
Lease Income
The following table presents the future contractual minimum rent under the Company’s operating leases as of June 30, 2026 (in thousands):
Year
Contractual Minimum Rent(1)
2026 (six months ending December 31, 2026)$23,887 
202748,761 
202850,011 
202951,295 
203052,208 
Thereafter363,575 
Total$589,737 
(1) Contractual minimum rent includes rent from one property classified as held for sale as June 30, 2026.
Credit Risk and Geographic Concentration
The ability of any of the Company’s tenants to honor the terms of its lease are dependent upon the economic, regulatory, competitive, natural and social factors affecting the community in which that tenant operates. As of June 30, 2026 and 2025, the Company owned 34 properties, leased to 12 and 13 tenants, respectively, across 12 states including Arizona, Arkansas, California, Connecticut, Florida, Illinois, Massachusetts, Missouri, Nevada, North Dakota, Ohio, and Pennsylvania.
The following table presents the tenants in the Company's portfolio that represented the largest percentage of the Company's total rental income and fees, excluding revenue reimbursables, for each of the periods presented:
Three Months Ended June 30,
20262025
TenantNumber of LeasesPercentage of Rental IncomeTenantNumber of LeasesPercentage of Rental Income
Curaleaf1026%Curaleaf1023%
Cresco Labs315%Cresco Labs314%
Trulieve 112%Trulieve 111%
C3 Industries28%The Cannabist Company59%
The Cannabist Company48%C3 Industries28%
Six Months Ended June 30,
20262025
TenantNumber of LeasesPercentage of Rental IncomeTenantNumber of LeasesPercentage of Rental Income
Curaleaf1026%Curaleaf1023%
Cresco Labs315%Cresco Labs314%
Trulieve 112%Trulieve 111%
C3 Industries28%The Cannabist Company59%
The Cannabist Company48%C3 Industries28%
The following table presents the states in the Company’s portfolio that represented the largest percentage of the Company’s total rental income and fees, excluding revenue reimbursable, for each of the periods presented:
Three Months Ended June 30,
20262025
StateNumber of Properties
Percentage of Rental Income
StateNumber of Properties
Percentage of Rental Income
Pennsylvania825%Pennsylvania826%
Florida121%Florida119%
Illinois620%Illinois618%
Missouri212%Missouri211%
Massachusetts 59%Massachusetts 511%
Six Months Ended June 30,
20262025
StateNumber of PropertiesPercentage of Rental IncomeStateNumber of PropertiesPercentage of Rental Income
Pennsylvania825%Pennsylvania826%
Florida121%Florida119%
Illinois620%Illinois618%
Missouri212%Missouri211%
Massachusetts 59%Massachusetts 511%
Condition of Our Tenants
The Cannabist Company
On March 24, 2026, The Cannabist Company ("Cannabist"), which operates at four of the Company's properties, including two properties located in Illinois and two properties located in Massachusetts, publicly announced that it had entered into definitive agreements to sell certain assets and entered into a non-binding memorandum of understanding for the sale of certain production, manufacturing, distribution and sale operations (through the sale of equity or assets) in six states, including Illinois and Massachusetts, where we lease properties to Cannabist, and commenced restructuring proceedings under the Companies Creditors Arrangement Act ("CCAA") in Canada. On May 9, 2026, the U.S. Bankruptcy Court for the District of Delaware granted recognition of the Canadian restructuring proceedings under Chapter 15 of the U.S. Bankruptcy Code. The Company continues to monitor developments related to this tenant and its restructuring proceedings.
During the six months ended June 30, 2026, the Company collected full rent for each of the four properties leased to Cannabist and the tenant remains current on its contractual lease obligations to the Company. The Company holds aggregate security deposits totaling approximately $481.6 thousand across these four properties.
As Lessee
The Company leases office space under an operating lease that expires on August 31, 2027. On November 20, 2025, the Company amended the lease agreement to extend the lease term by one year and recorded a ROU asset and Lease Liability remeasurement of approximately $85.3 thousand using a discount rate of 7.75%. As of
June 30, 2026 and December 31, 2025, the Right of Use ("ROU") asset was approximately $83.9 thousand and $117.9 thousand, respectively. As of June 30, 2026, the remaining lease term was approximately 1.17 years.

The following table presents the future contractual rent obligations as lessee as of June 30, 2026 (in thousands):

YearContractual Base Rent
2026 (six months ending December 31, 2026)$39 
202752(1)
Total Future Contractual Lease Payments$91 
Less: Amount Discounted Using Incremental Borrowing Rate$(10)
Total Lease Liability$81 
(1) The lease is scheduled to expire on August 31, 2027. The lease allows for one renewal option of 3 years commencing immediately upon the expiration of the amended term.