v3.26.1
Real Estate
 6 Months Ended
Jun. 30, 2026
Real Estate [Abstract]  
Real Estate Real Estate
Real Estate Portfolio
As of June 30, 2026, the Company owned 34 properties, located in 12 states. The following table presents the Company's real estate portfolio as of June 30, 2026 (in thousands):
TenantMarketSite TypeLandBuilding and ImprovementsTotal Real EstateAccumulated DepreciationNet Real Estate
AcreageMassachusetts Cultivation$481 $9,310 $9,791 $(1,849)$7,942 
AcreagePennsylvaniaCultivation952 9,209 10,161 (1,765)8,396 
Bud'rConnecticutDispensary395 534 929 (120)809 
C3 IndustriesMissouriCultivation948 28,069 29,017 (2,509)26,508 
Calypso EnterprisesPennsylvaniaCultivation1,486 30,527 32,013 (4,044)27,969 
The Cannabist CompanyIllinoisDispensary162 1,053 1,215 (171)1,044 
The Cannabist CompanyIllinoisCultivation801 10,560 11,361 (1,740)9,621 
The Cannabist CompanyMassachusettsDispensary108 2,212 2,320 (393)1,927 
The Cannabist CompanyMassachusettsCultivation1,136 12,690 13,826 (2,831)10,995 
CODESArkansasDispensary238 1,919 2,157 (338)1,819 
CODESMissouriCultivation204 20,897 21,101 (4,888)16,213 
Cresco LabsIllinoisCultivation276 50,456 50,732 (9,348)41,384 
Cresco LabsOhioDispensary146 729 875 (13)862 
Cresco LabsOhioDispensary182 809 991 (17)974 
CuraleafConnecticutDispensary184 2,746 2,930 (485)2,445 
CuraleafFloridaCultivation388 75,595 75,983 (11,892)64,091 
CuraleafIllinoisDispensary69 525 594 (96)498 
CuraleafIllinoisDispensary574 2,788 3,362 (587)2,775 
CuraleafIllinoisDispensary606 1,128 1,734 (209)1,525 
CuraleafNorth DakotaDispensary779 1,395 2,174 (246)1,928 
CuraleafOhioDispensary281 3,072 3,353 (536)2,817 
CuraleafPennsylvaniaDispensary877 1,041 1,918 (245)1,673 
CuraleafPennsylvaniaDispensary216 2,010 2,226 (352)1,874 
CuraleafPennsylvaniaDispensary70 880 950 (37)913 
MintArizonaCultivation3,574 18,236 21,810 (891)20,919 
PharmaCannMassachusettsDispensary411 1,701 2,112 (545)1,567 
PharmaCannOhioDispensary281 1,269 1,550 (133)1,417 
PharmaCannPennsylvaniaDispensary44 1,271 1,315 (206)1,109 
TrulievePennsylvaniaCultivation1,061 43,209 44,270 (8,430)35,840 
WellgreensCaliforniaDispensary1,082 2,692 3,774 (456)3,318 
Available for LeaseNevadaCultivation1,002 12,577 13,579 (1,515)12,064 
Available for LeasePennsylvaniaCultivation2,963 12,315 15,278 (1,675)13,603 
Available for LeaseMassachusetts Cultivation926 41,934 42,860 (6,092)36,768 
Total Real Estate(1)(2)
$22,903 $405,358 $428,261 $(64,654)$363,607 
(1) This table does not include one property held for sale.
(2) At times, numbers in this table may differ due to rounding.
Real Estate Acquisitions
2025 Acquisitions
During the year ended December 31, 2025, the Company acquired three dispensaries and committed to fund approximately $1.1 million in improvements (refer to the 2025 Improvement Allowances table below for details). These properties were simultaneously leased to a related entity of an existing tenant.
The following table presents the real estate acquisitions for the year ended December 31, 2025 (in thousands):
TenantMarketSite TypeClosing DateReal Estate Acquisition Costs
Cresco LabsOhioDispensaryFebruary 19, 2025$285 
Cresco LabsOhioDispensaryApril 25, 2025500 
Curaleaf(1)PennsylvaniaDispensaryJune 12, 2025950 
Total$1,735 
(1) This dispensary was acquired through a like-kind exchange and was recorded at its fair value. For further details, refer to the "2025 Disposition" section below.
Disposal of Real Estate
2025 Disposition
On June 12, 2025, the Company completed a deed-for-deed like-kind exchange with Curaleaf, involving the transfer of its dispensary located in Mokena, IL for a dispensary located in Brookville, PA. The transaction was structured as a nonmonetary exchange with no cash consideration. Upon completion of the exchange, the Brookville property received by the Company was leased to an existing tenant under a new operating lease. The Brookville dispensary was recorded at its fair value of $950 thousand and the Company recognized a de minimis loss on the exchange. For additional details, refer to the acquisition summary in the table above.
Real Estate Held for Sale
On November 24, 2025, the Company entered into an agreement with a broker to market the Hartford, CT property for sale which is leased to C3 Industries (“C3”). The property has a carrying amount of approximately $4.8 million and is available for immediate sale in its present condition. Management has committed to a plan to sell the asset and expects the sale to be completed within one year. Accordingly, the property meets the criteria for held-for-sale classification and is presented as “Real Estate Held for Sale” in the accompanying consolidated balance sheet.
In accordance with ASC 360, long-lived assets classified as held for sale are measured at the lower of their carrying amount or fair value less costs to sell. In connection with the planned sale, the Company is entitled to receive make-whole protection under the terms of the tenant’s lease arrangement. If the ultimate sale proceeds are less than the Company’s investment basis, the tenant is required to reimburse the Company for the shortfall. Any such reimbursement, if realized, will be recognized when the sale is completed and the amount becomes determinable. Based on this make-whole protection and management’s current estimate of fair value less costs to sell, the Company is reporting the property at its carrying amount, and therefore no impairment loss has been recognized.
Real Estate Commitments
2026 Improvement Allowance
The following table presents the funded commitments and remaining unfunded commitments as of June 30, 2026 (in thousands):
TenantMarketSite TypeClosing DateFunded CommitmentsUnfunded Commitments
Cresco LabsOhioDispensaryApril 25, 2025375 — 
Total$375 $— 
2025 Improvement Allowances
The following table presents the funded commitments and the remaining unfunded commitments for the year ended December 31, 2025 (in thousands):
TenantMarketSite TypeClosing DateFunded CommitmentsUnfunded Commitments
Cresco LabsOhioDispensaryFebruary 19, 2025$705 $— 
Cresco LabsOhioDispensaryApril 25, 2025— 375 
Total $705 $375 
In-place Lease Intangible Assets
The following table presents the future amortization of the Company’s acquired in-place leases as of June 30, 2026 (in thousands):
YearAmortization Expense
2026 (six months ending December 31, 2026)$984 
20271,969 
20281,969 
20291,969 
20301,790 
Thereafter6,044 
Total$14,725 
Depreciation and Amortization
For both the three months ended June 30, 2026 and 2025, depreciation expense on the Company's real estate assets was approximately $3.4 million. Depreciation expense on the Company's real estate assets for the six months ended June 30, 2026 and 2025 was approximately $6.7 million and $6.8 million, respectively.
Amortization of the Company’s acquired in-place lease intangible assets was approximately $0.5 million for each of the three months ended June 30, 2026 and 2025. Amortization of the Company’s acquired in-place lease intangible assets was approximately $1.0 million for each of the six months ended June 30, 2026 and 2025. The
acquired in-place lease intangible assets have a weighted average remaining amortization period of approximately 7.81 years.
Real Estate Impairment
During the three months ended June 30, 2026, the Company identified indicators of impairment for certain properties available for lease and properties leased to tenants that had filed for foreign bankruptcy proceedings and evaluated those properties in accordance with ASC 360, Property, Plant and Equipment.
For each property assessed, the Company estimated the undiscounted future cash flows expected to be generated throughout the expected holding period and compared those amounts to the related carrying value. In each case, the estimated undiscounted cash flows exceeded the carrying value of the property. Accordingly, no impairment losses were recognized during the three and six months ended June 30, 2026.