Annual report [Section 13 and 15(d), not S-K Item 405]

Receivables and Other Assets

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Receivables and Other Assets
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Receivables and Other Assets
Note 4 – Receivables and Other Assets
Accounts receivable, net consisted of the following as of the periods indicated below (in thousands):
December 31, 2024 December 31, 2023
Accounts receivable, net $ 5,852  $ 9,008 
Straight-line rent receivable, net 16,981  15,655 
Total $ 22,833  $ 24,663 
Other assets, net consisted of the following as of the periods indicated below (in thousands):
December 31, 2024 December 31, 2023
Restricted cash $ 41,570  $ 34,725 
Right-of-use assets, net (1)
 22,216  26,596 
Investment in unconsolidated joint venture 11,822  13,549 
Deferred costs, net (2)
4,596  7,693 
Notes receivable (3)
3,900  3,700 
Prepaid expenses 2,133  1,318 
Other assets, net 1,591  1,247 
Total $ 87,828  $ 88,828 
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(1)Includes right-of-use finance leases of $5.6 million, right-of-use operating leases of $10.2 million and a below-market right-of-use asset, net of $6.4 million as of December 31, 2024. Includes right-of-use finance leases of $9.0 million, right-of-use operating leases of $10.9 million and a below-market right-of-use asset, net of $6.6 million as of December 31, 2023. Amortization expense for below market right-of-use asset was $0.2 million for each of the years ended December 31, 2024, 2023 and 2022.
(2)Includes accumulated amortization for deferred costs related to the Revolving Facility of $7.0 million and $5.1 million as of December 31, 2024 and 2023, respectively. Amortization expense for deferred costs related to the Revolving Facility was $3.0 million, $2.6 million and $2.2 million for the years ended December 31, 2024, 2023 and 2022, respectively. During the year ended December 31, 2024, the Company capitalized additional deferred costs of $1.0 million in connection with the third amendment to the Credit Agreement, as defined below and discussed in Note 6 – Debt, Net. Also in connection with the third amendment to the Credit Agreement and resulting reduction in borrowing capacity, net deferred costs of $1.1 million were written off and recognized in loss on extinguishment of debt, net in the accompanying consolidated statements of operations during the year ended December 31, 2024. Deferred costs, net as of December 31, 2024 and 2023 also includes outstanding deferred equity offering costs of $0.6 million, which will be offset against additional paid in capital for future issuances of shares of the Company’s common stock.
(3)Notes receivable as of December 31, 2024 includes a $1.4 million member loan to the Arch Street Joint Venture funded in connection with the partial repayment of the Arch Street Joint Venture mortgage notes discussed in Note 3 – Real Estate Investments and Related Intangibles – Investment in Unconsolidated Joint Venture. Notes receivable as of December 31, 2024 also includes one $2.5 million long-term seller financed promissory note for one property sold during the year ended December 31, 2023. Notes receivable as of December 31, 2023 includes one long-term seller financed promissory note and one short-term seller financed promissory note for two properties sold during the year ended December 31, 2023. These loans were structured as first mortgage loans on the properties sold with an unsecured recourse guaranty from the buyer principal(s). The short-term seller financed promissory note was repaid in full during the year ended December 31, 2024.