Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 07, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-56327 | |
Entity Registrant Name | NewLake Capital Partners, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 83-4400045 | |
Entity Address, Address Line One | 50 Locust Avenue, First Floor | |
Entity Address, City or Town | New Canaan | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06840 | |
City Area Code | 203 | |
Local Phone Number | 594-1402 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,510,566 | |
Entity Central Index Key | 0001854964 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Real Estate | ||
Land | $ 21,717 | $ 21,397 |
Building and Improvements | 405,955 | 390,911 |
Total Real Estate | 427,672 | 412,308 |
Less Accumulated Depreciation | (38,191) | (31,999) |
Net Real Estate | 389,481 | 380,309 |
Cash and Cash Equivalents | 20,687 | 25,843 |
In-Place Lease Intangible Assets, net | 18,786 | 19,779 |
Loan Receivable, net (Current Expected Credit Loss of $141 and $167, respectively) | 4,859 | 4,833 |
Other Assets | 2,385 | 2,528 |
Total Assets | 436,198 | 433,292 |
Liabilities: | ||
Accounts Payable and Accrued Expenses | 921 | 1,117 |
Revolving Credit Facility | 7,600 | 1,000 |
Loan Payable, net | 0 | 1,000 |
Dividends and Distributions Payable | 9,009 | 8,385 |
Security Deposits | 8,789 | 8,616 |
Rent Received in Advance | 784 | 990 |
Other Liabilities | 149 | 227 |
Total Liabilities | 27,252 | 21,335 |
Commitments and Contingencies | ||
Equity: | ||
Preferred Stock, $0.01 Par Value, 100,000,000 Shares Authorized, 0 Shares Issued and Outstanding, respectively | 0 | 0 |
Common Stock, $0.01 Par Value, 400,000,000 Shares Authorized, 20,509,883 and 20,503,520 Shares Issued and Outstanding, respectively | 205 | 205 |
Additional Paid-In Capital | 446,006 | 445,289 |
Accumulated Deficit | (44,581) | (40,909) |
Total Stockholders' Equity | 401,630 | 404,585 |
Noncontrolling Interests | 7,316 | 7,372 |
Total Equity | 408,946 | 411,957 |
Total Liabilities and Equity | $ 436,198 | $ 433,292 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Current expected credit loss | $ 140,600 | $ 166,700 |
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) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 20,509,883 | 20,503,520 |
Common stock, shares outstanding (in shares) | 20,509,883 | 20,503,520 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue: | ||||
Rental Income | $ 12,253 | $ 11,183 | $ 24,380 | $ 22,340 |
Interest Income from Loans | 134 | 131 | 265 | 259 |
Fees and Reimbursables | 68 | 62 | 418 | 193 |
Total Revenue | 12,455 | 11,376 | 25,063 | 22,792 |
Expenses: | ||||
Property Expenses | 28 | 56 | 50 | 150 |
Depreciation and Amortization Expense | 3,626 | 3,568 | 7,194 | 7,130 |
General and Administrative Expenses: | ||||
Compensation Expense | 1,150 | 1,150 | 2,385 | 2,277 |
Professional Fees | 243 | 364 | 645 | 686 |
Other General and Administrative Expenses | 455 | 451 | 873 | 920 |
Total General and Administrative Expenses | 1,848 | 1,965 | 3,903 | 3,883 |
Total Expenses | 5,502 | 5,589 | 11,147 | 11,163 |
Provision for Current Expected Credit Loss | 12 | 0 | 26 | 0 |
Income From Operations | 6,965 | 5,787 | 13,942 | 11,629 |
Other Income (Expense): | ||||
Other Income | 81 | 208 | 181 | 428 |
Interest Expense | (128) | (97) | (211) | (189) |
Total Other Income (Expense) | (47) | 111 | (30) | 239 |
Net Income | 6,918 | 5,898 | 13,912 | 11,868 |
Net Income Attributable to Noncontrolling Interests | (122) | (101) | (247) | (203) |
Net Income Attributable to Common Stockholders | $ 6,796 | $ 5,797 | $ 13,665 | $ 11,665 |
Net Income Attributable to Common Stockholders Per Share - Basic (in dollars per share) | $ 0.33 | $ 0.27 | $ 0.66 | $ 0.55 |
Net Income Attributable to Common Stockholders Per Share - Diluted (in dollars per share) | $ 0.33 | $ 0.27 | $ 0.66 | $ 0.55 |
Weighted Average Shares of Common Stock Outstanding - Basic (in shares) | 20,555,362 | 21,369,489 | 20,548,601 | 21,396,330 |
Weighted Average Shares of Common Stock Outstanding - Diluted (in shares) | 20,951,379 | 21,743,071 | 20,946,805 | 21,769,912 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2022 | 21,408,194 | ||||
Beginning balance at Dec. 31, 2022 | $ 430,938 | $ 214 | $ 455,822 | $ (32,487) | $ 7,389 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Repurchase of Common Stock (in shares) | (105,679) | (105,679) | |||
Repurchase of Common Stock | $ (1,334) | $ (1) | (1,333) | ||
Stock-Based Compensation | 681 | 681 | |||
Dividends to Common Stock | (16,638) | (16,638) | |||
Dividends on Restricted Stock Units | (48) | (48) | |||
Distributions to OP Unitholders | (291) | (291) | |||
Adjustment for Noncontrolling Interest Ownership in Operating Partnership | 0 | (27) | 27 | ||
Net Income | 11,868 | 11,665 | 203 | ||
Ending balance (in shares) at Jun. 30, 2023 | 21,302,515 | ||||
Ending balance at Jun. 30, 2023 | 425,176 | $ 213 | 455,143 | (37,508) | 7,328 |
Beginning balance (in shares) at Mar. 31, 2023 | 21,358,887 | ||||
Beginning balance at Mar. 31, 2023 | 428,111 | $ 214 | 455,470 | (34,956) | 7,383 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Repurchase of Common Stock (in shares) | (56,372) | ||||
Repurchase of Common Stock | (712) | $ (1) | (711) | ||
Stock-Based Compensation | 373 | 373 | |||
Dividends to Common Stock | (8,308) | (8,308) | |||
Dividends on Restricted Stock Units | (41) | (41) | |||
Distributions to OP Unitholders | (145) | (145) | |||
Adjustment for Noncontrolling Interest Ownership in Operating Partnership | 0 | 11 | (11) | ||
Net Income | 5,898 | 5,797 | 101 | ||
Ending balance (in shares) at Jun. 30, 2023 | 21,302,515 | ||||
Ending balance at Jun. 30, 2023 | 425,176 | $ 213 | 455,143 | (37,508) | 7,328 |
Beginning balance (in shares) at Dec. 31, 2023 | 20,503,520 | ||||
Beginning balance at Dec. 31, 2023 | 411,957 | $ 205 | 445,289 | (40,909) | 7,372 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Conversion of Vested RSUs to Common Stock (in shares) | 6,363 | ||||
Conversion of Vested RSUs to Common Stock | 0 | ||||
Cash Paid for Taxes in Lieu of Issuance of Common Stock | $ (46) | (46) | |||
Repurchase of Common Stock (in shares) | 0 | ||||
Stock-Based Compensation | $ 774 | 774 | |||
Dividends to Common Stock | (17,228) | (17,228) | |||
Dividends on Restricted Stock Units | (109) | (109) | |||
Distributions to OP Unitholders | (314) | (314) | |||
Adjustment for Noncontrolling Interest Ownership in Operating Partnership | 0 | (11) | 11 | ||
Net Income | 13,912 | 13,665 | 247 | ||
Ending balance (in shares) at Jun. 30, 2024 | 20,509,883 | ||||
Ending balance at Jun. 30, 2024 | 408,946 | $ 205 | 446,006 | (44,581) | 7,316 |
Beginning balance (in shares) at Mar. 31, 2024 | 20,509,883 | ||||
Beginning balance at Mar. 31, 2024 | 410,663 | $ 205 | 445,590 | (42,479) | 7,347 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-Based Compensation | 424 | 424 | |||
Dividends to Common Stock | (8,819) | (8,819) | |||
Dividends on Restricted Stock Units | (79) | (79) | |||
Distributions to OP Unitholders | (161) | (161) | |||
Adjustment for Noncontrolling Interest Ownership in Operating Partnership | 0 | (8) | 8 | ||
Net Income | 6,918 | 6,796 | 122 | ||
Ending balance (in shares) at Jun. 30, 2024 | 20,509,883 | ||||
Ending balance at Jun. 30, 2024 | $ 408,946 | $ 205 | $ 446,006 | $ (44,581) | $ 7,316 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Cash Flows from Operating Activities: | |||||
Net Income | $ 6,918 | $ 5,898 | $ 13,912 | $ 11,868 | |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||
Stock-Based Compensation | 774 | 681 | |||
Depreciation and Amortization Expense | 7,194 | 7,130 | |||
Amortization of Debt Issuance Costs | 134 | 137 | |||
Amortization of Debt Discount | 0 | 7 | |||
Provision for Credit Loss | (12) | 0 | (26) | 0 | |
Non-Cash Lease Expense | (1) | 0 | |||
Non-Cash Application of Rent Escrow | (274) | 0 | |||
Non-Cash Application of Security Deposit | 0 | (630) | |||
Changes in Assets and Liabilities | |||||
Other Assets | 221 | 373 | |||
Accounts Payable and Accrued Expenses | (339) | (234) | |||
Security Deposits | 447 | 317 | |||
Rent Received in Advance | (206) | (677) | |||
Other Liabilities | (77) | (758) | |||
Net Cash Provided by Operating Activities | 21,759 | 18,214 | |||
Cash Flows from Investing Activities: | |||||
Funding of Building and Tenant Improvements | (11,371) | (2,996) | $ (14,434) | ||
Acquisition of Real Estate | (3,993) | (350) | |||
Net Cash Used in Investing Activities | (15,364) | (3,346) | |||
Cash Flows from Financing Activities: | |||||
Repurchase of Common Stock | 0 | (1,334) | |||
Cash Paid for Taxes in Lieu of Issuance of Common Stock | (46) | 0 | |||
Common Stock Dividends Paid | (16,610) | (16,679) | |||
Restricted Stock Unit Dividends Paid | (114) | (51) | |||
Distributions to OP Unitholders | (303) | (291) | |||
Borrowings from Revolving Credit Facility | 6,600 | 0 | |||
Principal Repayment on Loan Payable | (1,000) | (1,000) | |||
Deferred Financing Costs | 0 | (31) | |||
Deferred Offering Costs | (78) | 0 | |||
Net Cash Used in Financing Activities | (11,551) | (19,386) | |||
Net (Decrease) in Cash and Cash Equivalents | (5,156) | (4,518) | |||
Cash and Cash Equivalents - Beginning of Period | 25,843 | 45,192 | 45,192 | ||
Cash and Cash Equivalents - End of Period | 20,687 | 40,674 | 20,687 | 40,674 | 25,843 |
Supplemental Disclosure of Cash Flow Information: | |||||
Interest Paid | 99 | 109 | |||
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | |||||
Dividends and Distributions Declared, Not Paid | 9,009 | 8,468 | 9,009 | 8,468 | $ 8,385 |
Accrual for Deferred Offering Costs | $ 143 | $ 0 | $ 143 | $ 0 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization NewLake Capital Partners, Inc. (the “Company”), a Maryland corporation, was formed on April 9, 2019, originally as GreenAcreage Real Estate Corp. (“GARE”). The Company is an internally managed Real Estate Investment Trust (“REIT”) focused on providing long-term, single-tenant, triple-net sale-leaseback and build-to-suit transactions for the cannabis industry. The Company conducts its operations through its subsidiary, NLCP Operating Partnership LP, a Delaware limited partnership (the “Operating Partnership” or “OP”). The Company is the sole managing general partner of the Operating Partnership. The Company's common stock trades on the OTCQX® Best Market (the "OTCQX") operated by the OTC Markets Group, Inc., under the symbol “NLCP”. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. The consolidated financial statements include the accounts of the Company, the Operating Partnership, as well as any wholly owned subsidiaries of the Operating Partnership and variable interest entities (“VIEs”) in which the Company is considered the primary beneficiary. All significant intercompany balances and transactions have been eliminated in the consolidated financial statements. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the operating results for the full year or any future period. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and filed with the Securities and Exchange Commission (“SEC”) on March 11, 2024. In management's opinion, all adjustments (which include normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been made. Variable Interest Entities The Company consolidates a VIE in which it is considered the primary beneficiary. The primary beneficiary is the entity that has: (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. NLCP Operating Partnership LP The Operating Partnership is a VIE because the holders of limited partnership interests do not have substantive kick-out rights or participating rights. Furthermore, the Company is the primary beneficiary of the Operating Partnership because it has the obligation to absorb losses and the right to receive benefits from the Operating Partnership and the exclusive power to direct the activities of the Operating Partnership. As of June 30, 2024 and December 31, 2023, the assets and liabilities of the Company and the Operating Partnership were substantially the same, as the Company does not have any significant assets other than its investment in the Operating Partnership. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management will adjust such estimates when facts and circumstances dictate. Such estimates include, but are not limited to, useful lives for depreciation of property and corporate assets, the fair value of acquired real estate and in-place lease intangibles acquired, and the valuation of stock-based compensation. Actual results could differ from those estimates. Reclassification Certain prior year balances have been reclassified to conform to the Company's current year presentation. Significant Accounting Policies There have been no changes to the Company's accounting policies included in Note 2 to the Consolidated Financial Statements of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Recently Issued Accounting Pronouncements Description Effective Date Effect on Financial Statements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The update also requires disclosure regarding the chief operating decision maker and expands the interim segment disclosure requirements. For fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires entities to disclose additional information with respect to the effective tax rate reconciliation and to disclose the disaggregation by jurisdiction of income tax expense and income taxes paid. For fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements. |
Real Estate
Real Estate | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Real Estate | Real Estate As of June 30, 2024, the Company owned 32 properties, located in 12 states. The following table presents the Company's real estate portfolio as of June 30, 2024 (dollars in thousands): Tenant Market Site Type Land Building and Improvements (1) Total Real Estate Accumulated Depreciation Net Real Estate Acreage Connecticut Dispensary $ 395 $ 534 $ 929 $ (84) $ 845 Acreage Massachusetts Cultivation 481 9,310 9,791 (1,298) 8,493 Acreage Pennsylvania Cultivation 952 9,209 10,161 (1,239) 8,922 Ayr Wellness, Inc. Nevada Cultivation 1,002 12,577 13,579 (765) 12,814 Ayr Wellness, Inc. Pennsylvania Cultivation 2,963 11,565 14,528 (809) 13,719 C3 Industries Missouri Cultivation 948 27,308 28,256 (739) (2) 27,517 C3 Industries Connecticut Cultivation 321 3,672 3,993 (17) 3,976 Calypso Enterprises Pennsylvania Cultivation 1,486 30,527 32,013 (1,919) (3) 30,094 Cannabist (4) California Dispensary 1,082 2,692 3,774 (284) 3,490 Cannabist (4) Illinois Dispensary 162 1,053 1,215 (107) 1,108 Cannabist (4) Illinois Cultivation 801 10,560 11,361 (1,085) 10,276 Cannabist (4) Massachusetts Dispensary 108 2,212 2,320 (251) 2,069 Cannabist (4) Massachusetts Cultivation 1,136 12,690 13,826 (1,753) 12,073 Cresco Labs Illinois Cultivation 276 50,456 50,732 (6,453) 44,279 Curaleaf Connecticut Dispensary 184 2,748 2,932 (301) 2,631 Curaleaf Florida Cultivation 388 75,595 75,983 (7,435) 68,548 Curaleaf Illinois Dispensary 69 525 594 (60) 534 Curaleaf Illinois Dispensary 65 959 1,024 (113) 911 Curaleaf Illinois Dispensary 606 1,128 1,734 (130) 1,604 Curaleaf Illinois Dispensary 281 3,072 3,353 (345) 3,008 Curaleaf North Dakota Dispensary 779 1,395 2,174 (157) 2,017 Curaleaf Ohio Dispensary 574 2,788 3,362 (365) 2,997 Curaleaf Pennsylvania Dispensary 877 1,041 1,918 (152) 1,766 Curaleaf Pennsylvania Dispensary 216 2,011 2,227 (225) 2,002 Greenlight (5) Arkansas Dispensary 238 1,919 2,157 (216) 1,941 Mint Arizona Cultivation 2,400 18,128 20,528 — (6) 20,528 Organic Remedies Missouri Cultivation 204 20,897 21,101 (2,722) 18,379 PharmaCann Massachusetts Dispensary 411 1,701 2,112 (339) 1,773 PharmaCann Ohio Dispensary 281 1,269 1,550 (60) 1,490 PharmaCann Pennsylvania Dispensary 44 1,271 1,315 (130) 1,185 Revolutionary Clinics Massachusetts Cultivation 926 41,934 42,860 (3,675) 39,185 Trulieve Pennsylvania Cultivation 1,061 43,209 44,270 (4,963) 39,307 Total Real Estate (7) $ 21,717 $ 405,955 $ 427,672 $ (38,191) $ 389,481 (1) Includes construction in progress in the amount of $20.1 million that had been funded as of June 30, 2024. (2) Building and improvements related to the Missouri cultivation facility (leased to C3 Industries) expansion project that was placed into service. The Company started depreciation on the related assets in June 2024. (3) A portion of this investment is currently undergoing tenant improvements. Once the tenant improvements are completed for their intended use, the Company will place the tenant improvements in service and begin depreciating the applicable part of the property. (4) This tenant was formerly known as Columbia Care. (5) GL Partners, Inc. (Greenlight) acquired the tenant and was added as a guarantor, however Curaleaf remains an additional guarantor subject to certain conditions in the lease agreement. (6) A portion of this investment is currently under development or undergoing building improvements. Once the development or improvements are completed and placed-in service, the Company will begin depreciating the applicable part of the property. (7) At times, numbers in this table may differ due to rounding. Real Estate Acquisitions 2024 Acquisitions In May 2024, the Company purchased a cultivation facility in Connecticut for approximately $4.0 million and committed to fund approximately $12.0 million in building and tenant improvements (refer to the Building and Tenant Improvements table below for details). The property was simultaneously leased to a related entity of an existing tenant. The following table presents the real estate acquisition for the six months ended June 30, 2024 (in thousands): Tenant Market Site Type Closing Date Real Estate Acquisition Costs C3 Industries Connecticut Cultivation May 7, 2024 $ 3,993 Total $ 3,993 2023 Acquisitions In March 2023, the Company exercised its option to acquire an adjacent parcel of land to expand its cultivation facility in Missouri and invested $350 thousand and committed to fund approximately $16.2 million to expand the facility (refer to the Building and Tenant Improvements table below for details). The following table presents the real estate acquisition for the year ended December 31, 2023 (in thousands): Tenant Market Site Type Closing Date Real Estate Acquisition Costs C3 Industries Missouri Cultivation March 3, 2023 $ 350 Total $ 350 Real Estate Commitments 2024 Building and Tenant Improvements During the six months ended June 30, 2024, the Company funded approximately $11.4 million of building and tenant improvements. The following table presents the funded commitments and the remaining unfunded commitments for the six months ended June 30, 2024 (in thousands): Tenant Market Site Type Closing Date Funded Commitments Unfunded Commitments Ayr Wellness, Inc. Pennsylvania Cultivation June 30, 2022 $ — $ 750 C3 Industries Connecticut Cultivation May 7, 2024 — 12,024 C3 Industries Missouri Cultivation March 3, 2023 8,065 761 Calypso Pennsylvania Cultivation August 5, 2022 — 987 Mint Arizona Cultivation June 24, 2021 3,306 1,282 (1) Total $ 11,371 $ 15,804 (1) Effective June 6, 2024, the lease agreement was amended to include an additional commitment of approximately $800 thousand. 2023 Building and Tenant Improvements During the year ended December 31, 2023, the Company funded approximately $14.4 million of building and tenant improvements. The following table presents the funded commitments and the remaining unfunded commitments for the year ended December 31, 2023 (in thousands): Tenant Market Site Type Closing Date Funded Commitments Unfunded Commitments Ayr Wellness, Inc. Pennsylvania Cultivation June 30, 2022 $ — $ 750 C3 Industries Missouri Cultivation April 1, 2022 7,858 8,826 Calypso Pennsylvania Cultivation August 5, 2022 2,013 987 Mint Arizona Cultivation June 24, 2021 4,281 3,788 (1) Organic Remedies Missouri Cultivation December 20, 2021 282 — Total $ 14,434 $ 14,351 (1) Effective June 1, 2023, the lease agreement was amended to include an additional commitment of approximately $6.5 million. Construction in Progress As of June 30, 2024 and December 31, 2023, funded commitments recorded in construction in progress was $20.1 million and $24.2 million, respectively, and is classified in "Buildings and Improvements" in the accompanying consolidated balance sheets. 2024 Construction in Progress The below tables presents construction in progress fundings and assets placed in service as of June 30, 2024. Refer below to the Depreciation and Amortization section of Note 3 - Real Estate for details around assets placed in service. Tenant Site Type Beginning Balance (1) Fundings Placed-in-Service Ending Balance (2) C3 Industries Cultivation $ 7,324 $ 8,065 $ (15,389) $ — Calypso Cultivation 2,013 — — 2,013 Mint Cultivation 14,822 3,306 — 18,128 Total $ 24,159 $ 11,371 $ (15,389) $ 20,141 (1) Beginning balance as of January 1, 2024. (2) These properties were under development or improvement as of June 30, 2024. Once the development is completed or the improvement is completed for its intended use, the assets will be placed-in-service and the Company will begin depreciation. 2023 Construction in Progress The below tables presents construction in progress fundings and assets placed in service as of December 31, 2023. Refer below to the Depreciation and Amortization section of Note 3 - Real Estate for details around assets placed in service. Tenant Site Type Beginning Balance (1) Fundings Placed-in-Service Ending Balance (2) C3 Industries Cultivation $ — $ 7,324 $ — $ 7,324 Calypso Cultivation — 2,013 — 2,013 Mint Cultivation 10,541 4,281 — 14,822 Total $ 10,541 $ 13,618 $ — $ 24,159 (1) Beginning balance as of January 1, 2023. The table does not include approximately $1.6 million of tenant improvements that had been funded as of January 1, 2023 for the development of a cultivation facility in Massachusetts. These tenant improvements were never placed-in-service and the property was sold on October 27, 2023. (2) These properties were under development or improvement as of December 31, 2023. Once the development is completed or the improvement is completed for its intended use, the assets will be placed-in-service and the Company will begin depreciation. Disposal of Real Estate 2024 Dispositions There were no sales of real estate property investments during the six months ended June 30, 2024. 2023 Dispositions During the year ended December 31, 2023, there was one real estate property sold. On October 27, 2023, the Company closed on the sale of its property in Palmer, Massachusetts, for $2.0 million, which was leased to Mint. The Company's investment in the property was $1.9 million. Upon closing, Mint's lease agreement was terminated and they paid a portion of the closing costs, resulting in a break-even sale of the property. Therefore, the Company did not recognize a gain or loss on sale of the property. In-place Leases The following table presents the future amortization of the Company’s acquired in-place leases as of June 30, 2024 (in thousands): Year Amortization Expense 2024 (six months ending December 31, 2024) $ 993 2025 1,985 2026 1,985 2027 1,985 2028 1,985 Thereafter 9,853 Total $ 18,786 Depreciation and Amortization For both the three months ended June 30, 2024 and 2023, depreciation expense on the Company's real estate assets was approximately $3.1 million. Depreciation expense on the Company's real estate assets for the six months ended June 30, 2024 and 2023, was approximately $6.2 million and $6.1 million, respectively. Amortization of the Company’s acquired in-place lease intangible assets was approximately $0.5 million for both the three months ended June 30, 2024 and 2023. Amortization of the Company’s acquired in-place lease intangible assets was approximately $1.0 million for both the six months ended June 30, 2024 and 2023. The acquired in-place lease intangible assets have a weighted average remaining amortization period of approximately 9.72 years. Impairment The Company did not identify any situations in its review of tenant activities and changes in the business condition of all of its properties that would require the recognition of an impairment loss. Accordingly, the Company did not record an impairment loss for the three months ended June 30, 2024 and June 30, 2023, respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 and 2023, the reimbursable revenues were $18.4 thousand and $14.3 thousand, respectively. For the six months ended June 30, 2024, and 2023 the reimbursable revenues were $318.2 thousand, and $97.4 thousand, respectively. Reimbursable expenses are classified as "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 (typically between 2% and 3%) over the expiring rental rate at the time of expiration. Certain leases of the Company also contain an Improvement Allowance (“IA”). IA is generally available to be funded between 12 and 18 months. In some leases, the tenant becomes liable to pay rent as if the full IA has been funded, even if there are still unfunded commitments. IA also contains 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 a right of first refusal or right of first offer in the event the Company markets the leased property for sale. During the fourth quarter of 2023, the Company granted Calypso a purchase option to purchase the leased property and during the first quarter of 2024, the tenant was out of compliance with certain provisions of the lease and as a result the purchase option was terminated. As of June 30, 2024, the Company had two leases that provided the lessee with a purchase option to purchase the leased property at the end of the initial lease term in December 2029, subject to the satisfaction of certain conditions. The purchase option provision allows the lessee to purchase the leased property for an amount based on the fair market value of the Company's investment. As of June 30, 2024, 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, 2024 (in thousands): Year Contractual Minimum Rent 2024 (six months ending December 31, 2024) $ 25,448 2025 52,587 2026 55,042 2027 56,473 2028 57,942 Thereafter 577,019 Total $ 824,511 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, 2024 and December 31, 2023, the Company owned 32 and 31 properties, respectively, leased to 13 tenants 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 reimbursable revenues, for each of the periods presented: For the Three Months Ended June 30, 2024 2023 Tenant Number of Leases Percentage of Rental Income (1) Tenant Number of Leases Percentage of Rental Income (1)(2) Curaleaf 10 23% Curaleaf 10 25% Cresco Labs 1 14% Cresco Labs 1 14% Trulieve 1 11% Trulieve 1 12% Cannabist (3) 5 9% Cannabist (3) 5 9% Calypso 1 7% Calypso 1 8% (1) Calculated based on rental income received during the period. This amount includes fees and excludes revenue reimbursables. (2) Prior year presentation has been recalculated to exclude revenue reimburseables to conform to current year presentation. (3) This tenant was formerly known as Columbia Care. For the Six Months Ended June 30, 2024 2023 Tenant Number of Leases Percentage of Rental Income (1) Tenant Number of Leases Percentage of Rental Income (1)(2) Curaleaf 10 23% Curaleaf 10 25% Cresco Labs 1 14% Cresco Labs 1 15% Trulieve 1 11% Trulieve 1 12% Cannabist (3) 5 9% Cannabist (3) 5 9% Calypso 1 7% Calypso 1 9% (1) Calculated based on rental income received during the period. This amount includes fees and excludes revenue reimbursements. (2) Prior year presentation has been recalculated to exclude revenue reimburseables to conform to current year presentation. (3) This tenant was formerly know as Columbia Care. 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 reimbursable revenues, for each of the periods presented: For the Three Months Ended June 30, 2024 2023 State Number of Properties Percentage of Rental Income (1) State Number of Properties Percentage of Rental Income (1) Pennsylvania 7 26% Pennsylvania 7 29% Florida 1 19% Florida 1 20% Illinois 7 18% Illinois 7 19% Massachusetts 5 13% Massachusetts 6 (2) 12% Missouri 2 11% Missouri 2 8% (1) Calculated based on rental income received during the period. This amount includes fees and excludes revenue reimbursables. (2) Included in the number of properties and revenue is one Massachusetts property sold in October 2023. For the Six Months Ended June 30, 2024 2023 State Number of Properties Percentage of Rental Income (1) State Number of Properties Percentage of Rental Income (1) Pennsylvania 7 26% Pennsylvania 7 29% Florida 1 19% Florida 1 20% Illinois 7 18% Illinois 7 20% Massachusetts 5 13% Massachusetts 6 (2) 12% Missouri 2 10% Missouri 2 8% (1) Calculated based on rental income received during the period. This amount includes fees and excludes revenue reimbursables. (2) Included in the number of properties and revenue is one Massachusetts property sold in October 2023. As Lessee As of June 30, 2024, the Company was the lessee under one office lease for a term of four years, subject to annual escalations. The annual rent payments range from approximately $72.0 thousand in year one to approximately $85.0 thousand in year four. The office lease qualifies under the right-of-use ("ROU") model. Upon entering into the lease in June 2022, the Company recorded a ROU asset of $273 thousand which was classified in “ Other Assets Other Liabilities" The following table presents the future contractual rent obligations as lessee as of June 30, 2024 (in thousands): Year Contractual Base Rent 2024 (six months ended December 31, 2024) $ 38 2025 77 2026 52 Total Minimum Lease Payments $ 167 Less: Amount Discounted Using Incremental Borrowing Rate $ (14) Total Lease Liability $ 153 As of June 30, 2024, the weighted-average discount rate used to calculate the lease liability was 5.65% and the remaining lease term was 2.17 years. |
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, 2024 and 2023, the reimbursable revenues were $18.4 thousand and $14.3 thousand, respectively. For the six months ended June 30, 2024, and 2023 the reimbursable revenues were $318.2 thousand, and $97.4 thousand, respectively. Reimbursable expenses are classified as "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 (typically between 2% and 3%) over the expiring rental rate at the time of expiration. Certain leases of the Company also contain an Improvement Allowance (“IA”). IA is generally available to be funded between 12 and 18 months. In some leases, the tenant becomes liable to pay rent as if the full IA has been funded, even if there are still unfunded commitments. IA also contains 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 a right of first refusal or right of first offer in the event the Company markets the leased property for sale. During the fourth quarter of 2023, the Company granted Calypso a purchase option to purchase the leased property and during the first quarter of 2024, the tenant was out of compliance with certain provisions of the lease and as a result the purchase option was terminated. As of June 30, 2024, the Company had two leases that provided the lessee with a purchase option to purchase the leased property at the end of the initial lease term in December 2029, subject to the satisfaction of certain conditions. The purchase option provision allows the lessee to purchase the leased property for an amount based on the fair market value of the Company's investment. As of June 30, 2024, 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, 2024 (in thousands): Year Contractual Minimum Rent 2024 (six months ending December 31, 2024) $ 25,448 2025 52,587 2026 55,042 2027 56,473 2028 57,942 Thereafter 577,019 Total $ 824,511 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, 2024 and December 31, 2023, the Company owned 32 and 31 properties, respectively, leased to 13 tenants 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 reimbursable revenues, for each of the periods presented: For the Three Months Ended June 30, 2024 2023 Tenant Number of Leases Percentage of Rental Income (1) Tenant Number of Leases Percentage of Rental Income (1)(2) Curaleaf 10 23% Curaleaf 10 25% Cresco Labs 1 14% Cresco Labs 1 14% Trulieve 1 11% Trulieve 1 12% Cannabist (3) 5 9% Cannabist (3) 5 9% Calypso 1 7% Calypso 1 8% (1) Calculated based on rental income received during the period. This amount includes fees and excludes revenue reimbursables. (2) Prior year presentation has been recalculated to exclude revenue reimburseables to conform to current year presentation. (3) This tenant was formerly known as Columbia Care. For the Six Months Ended June 30, 2024 2023 Tenant Number of Leases Percentage of Rental Income (1) Tenant Number of Leases Percentage of Rental Income (1)(2) Curaleaf 10 23% Curaleaf 10 25% Cresco Labs 1 14% Cresco Labs 1 15% Trulieve 1 11% Trulieve 1 12% Cannabist (3) 5 9% Cannabist (3) 5 9% Calypso 1 7% Calypso 1 9% (1) Calculated based on rental income received during the period. This amount includes fees and excludes revenue reimbursements. (2) Prior year presentation has been recalculated to exclude revenue reimburseables to conform to current year presentation. (3) This tenant was formerly know as Columbia Care. 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 reimbursable revenues, for each of the periods presented: For the Three Months Ended June 30, 2024 2023 State Number of Properties Percentage of Rental Income (1) State Number of Properties Percentage of Rental Income (1) Pennsylvania 7 26% Pennsylvania 7 29% Florida 1 19% Florida 1 20% Illinois 7 18% Illinois 7 19% Massachusetts 5 13% Massachusetts 6 (2) 12% Missouri 2 11% Missouri 2 8% (1) Calculated based on rental income received during the period. This amount includes fees and excludes revenue reimbursables. (2) Included in the number of properties and revenue is one Massachusetts property sold in October 2023. For the Six Months Ended June 30, 2024 2023 State Number of Properties Percentage of Rental Income (1) State Number of Properties Percentage of Rental Income (1) Pennsylvania 7 26% Pennsylvania 7 29% Florida 1 19% Florida 1 20% Illinois 7 18% Illinois 7 20% Massachusetts 5 13% Massachusetts 6 (2) 12% Missouri 2 10% Missouri 2 8% (1) Calculated based on rental income received during the period. This amount includes fees and excludes revenue reimbursables. (2) Included in the number of properties and revenue is one Massachusetts property sold in October 2023. As Lessee As of June 30, 2024, the Company was the lessee under one office lease for a term of four years, subject to annual escalations. The annual rent payments range from approximately $72.0 thousand in year one to approximately $85.0 thousand in year four. The office lease qualifies under the right-of-use ("ROU") model. Upon entering into the lease in June 2022, the Company recorded a ROU asset of $273 thousand which was classified in “ Other Assets Other Liabilities" The following table presents the future contractual rent obligations as lessee as of June 30, 2024 (in thousands): Year Contractual Base Rent 2024 (six months ended December 31, 2024) $ 38 2025 77 2026 52 Total Minimum Lease Payments $ 167 Less: Amount Discounted Using Incremental Borrowing Rate $ (14) Total Lease Liability $ 153 As of June 30, 2024, the weighted-average discount rate used to calculate the lease liability was 5.65% and the remaining lease term was 2.17 years. |
Loan Receivable, net
Loan Receivable, net | 6 Months Ended |
Jun. 30, 2024 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loan Receivable, net | Loan Receivable, net Loan Receivable The Company funded a $5.0 million unsecured loan to C3 Industries on June 10, 2022. The loan initially bore interest at a rate of 10.25% and is structured to increase annually in April by the product of 1.0225 times the interest rate in effect immediately prior to the anniversary date. The loan is interest only for the first four years and can be prepaid at any time without penalty. If full principal payment on the loan is not made on June 30, 2026, the loan will begin amortizing principal and interest over the next five years, with a final maturity of June 30, 2031. The loan is cross defaulted with their lease agreement with the Company. As of June 30, 2024 and December 31, 2023, the loan earned interest at a rate of 10.72% and 10.48%, respectively, and the aggregate principal amount outstanding on the unsecured loan receivable as of June 30, 2024 and December 31, 2023, was $5.0 million. CECL Reserve The Company recorded a provision for current expected credit loss on the $5.0 million unsecured loan (discussed above). Estimating the CECL allowance for credit loss requires significant judgement. The Company used a discounted cash flow analysis to determine the expected credit loss. The following table presents the CECL reserve for the six months ended June 30, 2024 (in thousands): Period Expected Credit Loss CECL reserve as of December 31, 2023 $ 166.7 Adjustment to expected credit loss (14.3) CECL reserve as of March 31, 2024 152.4 Adjustment to expected credit loss (11.8) CECL reserve as of June 30, 2024 (1) $ 140.6 (1) Included in "Loan Receivable, net" on the consolidated balance sheets. |
Financings
Financings | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Financings | Financings Loan Payable In connection with the purchase and leaseback of a cultivation facility in Chaffee, Missouri on December 20, 2021, the Company entered into a $3.8 million loan payable to the seller, which was an independent third party from the tenant. The loan bore interest at a rate of 4.0% per annum. Principal on the loan was payable in annual installments of which $1.8 million and $1.0 million were paid in January 2022 and January 2023, respectively. On January 3, 2024, the Company made its final annual principal and interest payment of approximately $1.0 million on its loan payable. Revolving Credit Facility On May 6, 2022, the Operating Partnership entered into a loan and security agreement (the “Loan and Security Agreement”) with a commercial federally regulated bank, as a lender and as agent for lenders that become party thereto from time to time. The Loan and Security Agreement matures on May 6, 2027. The Loan and Security Agreement provides, subject to the accordion feature described below, $30.0 million in aggregate commitments for secured revolving loans (“Revolving Credit Facility”), the availability of which is based on a borrowing base consisting of fee simple owned real properties that satisfy eligibility criteria specified in the Loan and Security Agreement and the lease income thereunder which are owned by certain subsidiaries of the Operating Partnership. On July 29, 2022, the Operating Partnership, entered into an amendment to the Revolving Credit Facility, amending the Loan and Security Agreement, to increase the aggregate commitment under the Revolving Credit Facility from $30.0 million to $90.0 million and added two additional lenders. The Loan and Security Agreement also allows the Company, subject to certain conditions, to request additional revolving incremental loan commitments such that the Revolving Credit Facility may be increased to a total aggregate principal amount of up to $100.0 million. Borrowings under the Revolving Credit Facility may be voluntarily prepaid and re-borrowed, subject to certain fees. The Revolving Credit Facility bears a fixed rate of 5.65% for the first three years and thereafter a variable rate based upon the greater of (a) the Prime Rate quoted in the Wall Street Journal (Western Edition) plus an applicable margin of 1.0% or (b) 4.75%. As of June 30, 2024 and December 31, 2023, the Company had approximately $7.6 million and $1.0 million, respectively, outstanding under the Revolving Credit Facility. As of June 30, 2024, there was $82.4 million in funds available to be drawn, subject to sufficient collateral in the borrowing base. The facility is subject to certain liquidity and operating covenants and includes customary representations and warranties, affirmative and negative covenants, and events of default. As of June 30, 2024, the Company was in compliance with the terms of such covenants under the agreement. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Investor Rights Agreement Pursuant to our Investor Rights Agreement (the "Investor Rights Agreement"), HG Vora Capital Management, LLC (“HG Vora”), West Investment Holdings, LLC, West CRT Heavy, LLC, Gary and Mary West Foundation, Gary and Mary West Charitable Trust, Gary and Mary West 2012 Gift Trust and WFI Co-Investments, acting unanimously, collectively referred to as the “West Stockholders" and NL Ventures LLC ("Pangea") hold certain nomination rights with respect to members of our board of directors so long as they individually own in the aggregate certain percentages of the Company’s issued and outstanding common stock for 60 days consecutively. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests The Company's noncontrolling interests represent limited partnership interests in the Operating Partnership not held by the Company. Noncontrolling interests represented approximately 1.8% ownership interest in the Operating Partnership at June 30, 2024 and December 31, 2023. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation The Company's board of directors adopted our 2021 Equity Incentive Plan (the “Plan”), to provide employees of the Company and its subsidiaries, certain consultants and advisors who perform services for the Company or its subsidiaries, and non-employee members of the board of directors of the Company with the opportunity to receive grants of incentive stock options, nonqualified stock options, stock appreciation rights, stock awards, stock units, other stock-based awards, and cash awards to enable the Company to motivate, attract and retain the services of directors, officers and employees considered essential to the long term success of the Company. Under the terms of the Plan, the aggregate number of shares of awards will be no more than 2,275,727 shares. If and to the extent shares of awards granted under the Plan, expire or are canceled, forfeited, exchanged or surrendered without having been exercised, or if any stock awards, stock units or other stock-based awards are forfeited, terminated or otherwise not paid in full, the shares subject to such grants shall again be available for issuance or transfer under the Plan. The Plan has a term of ten years until August 12, 2031. As of June 30, 2024, there were approximately 1,788,933 shares available for issuance under the Plan, which assumes maximum performance is achieved with respect to Performance Stock Units (“PSUs”) . Restricted Stock Units Restricted Stock Units ("RSUs") are granted to certain directors, officers and employees of the Company. Per the terms of the agreements, certain director RSUs that vest cannot be converted until the director separates from the Company. Total outstanding RSUs as of June 30, 2024 and 2023 were 139,499 and 106,820, respectively. Unvested Restricted Stock Units The following table sets forth the Company's unvested RSU activity for the six months ended June 30,: 2024 2023 Number of Unvested Shares of RSUs Weighted Average Grant Date Fair Value Per Share Number of Unvested Shares of RSUs Weighted Average Grant Date Fair Value Per Share Balance at January 1, 63,582 $ 13.92 29,255 $ 22.89 Granted 49,014 $ 17.40 59,031 $ 12.87 Forfeited (740) $ 15.19 — $ — Vested (40,610) (1) $ 12.64 (18,318) $ 20.14 Balance at June 30, 71,246 $ 17.03 69,968 $ 15.15 (1) Vested shares are reported gross and include 2,846 shares withheld to satisfy tax and other compensation related withholdings associated with the vested RSUs issued under the 2021 Equity Incentive Plan. Vested Restricted Stock Units The following table sets forth the Company's vested RSU activity for the six months ended June 30,: 2024 2023 Number of Vested Shares of RSUs Weighted Average Grant Date Fair Value Per Share Number of Vested Shares of RSUs Weighted Average Grant Date Fair Value Per Share Balance at January 1, 36,852 $ 22.05 18,534 $ 23.93 Vested 40,610 (1) $ 12.64 18,318 $ 20.14 Converted (6,363) $ 13.38 — $ — Shares Withheld (2) (2,846) $ 13.38 — $ — Balance at June 30, 68,253 $ 17.62 36,852 $ 22.05 (1) Represents the gross number of RSUs vested, which includes 2,846 shares withheld for taxes and not converted to common stock. (2) Represents shares withheld to satisfy tax and other compensation related withholdings associated with the vested RSUs issued under the 2021 Equity Incentive Plan. Each restricted stock unit represents the right to receive one share of common stock upon vesting. The vested RSUs are also entitled to receive an accumulated dividend payment equal to the dividend paid on each share of common stock during the vesting period. During the six months ended June 30, 2024 and 2023, the Company paid $83.0 thousand and $35.3 thousand respectively, of accumulated dividends that became earned upon vesting of RSUs. Accrued unearned dividends on unvested RSUs as of June 30, 2024 and 2023, were $95,181 and $61,468, respectively. The amortization of compensation costs for the RSU awards are classified in "Compensation Expense" in the accompanying consolidated statements of operations and amounted to approximately $0.2 million for both the three months ended June 30, 2024 and 2023, respectively. The amortization of compensation costs for the RSU awards amounted to approximately $0.4 million and $0.3 million for the six months ended June 30, 2024 and 2023, respectively. The remaining unrecognized compensation cost of approximately $1.0 million for RSU awards is expected to be recognized over a weighted average amortization period of 1.3 years as of June 30, 2024. Performance Stock Units PSUs are granted to officers and certain employees of the Company. Total outstanding PSUs as of June 30, 2024 and 2023, were 159,522 and 121,858, respectively. The following table sets forth the Company's unvested PSU activity for the six months ended June 30,: 2024 2023 Number of Unvested Shares of PSUs Weighted Average Grant Date Fair Value Per Share Number of Unvested Shares of PSUs Weighted Average Grant Date Fair Value Per Share Balance at January 1, 103,000 $ 17.18 66,841 $ 24.04 Granted 56,522 $ 17.30 55,017 $ 11.23 Balance at June 30, 159,522 $ 17.22 121,858 $ 18.26 PSUs vest subject to the achievement of relative total shareholder return as measured against a peer group of companies and absolute compounded annual growth in stock price during each performance period. The actual number of shares of common stock issued will range from 0 to 319,044 depending upon performance. The performance periods are January 1, 2022 through December 31, 2024, January 1, 2023 through December 31, 2025 and January 1, 2024 through December 31, 2026 and 47,983, 55,017 and 56,522 PSUs are scheduled to vest at the end of each performance period, respectively. The fair value of PSUs is determined using a Monte Carlo simulation for our future stock price and the future stock price of a corresponding peer group. The grant date fair value is an equally weight value comprised of (i) total shareholder return of the Company and a peer group of companies (“rTSR”); and (ii) the Company’s absolute compound annual growth rate (“CAGR”). To derive the value of rTSR, the Company uses a stochastic stock price simulation model using Geometric Brownian Motion (“GBM”) to model the future stock prices of the Company and the peer group companies. The key inputs to the GBM model include the standard deviation of the movement of the share price, also expressed as stock price volatility. Historical volatility is analyzed for the Company and peer group companies based on publicly traded shares of common stock. The model also assists in deriving a value of the Company’s CAGR which is then subjected to the vesting percentages according to the terms of the PSU agreements. The key inputs to calculate CAGR are the ending stock price, initial stock price and vesting period. The GBM simulates the ending stock price that is used in the CAGR model to determine the grant date fair value. Using the above methodology, grant date fair values of $24.00, $11.23 and $17.30 were used for PSUs with performance periods ending December 31, 2024, 2025 and 2026, respectively. PSUs are subject to restrictions on transfer and may be subject to a risk of forfeiture if the award recipient ceases to be an employee of the Company prior to vesting of the award. Each PSU represents the right to receive one share of common stock upon vesting. Upon vesting, each PSU is also entitled to receive an accumulated dividend payment equal to the dividend paid on each share of common stock during the performance period. If PSUs do not meet the performance hurdles and are cancelled, no dividends are paid on the cancelled units. During the six months ended June 30, 2024 and 2023, no PSUs vested and therefore the Company did not pay any dividends. Unearned dividends on unvested PSUs as of June 30, 2024 and 2023, were $379,679 and $212,021, respectively. The amortization of compensation costs for the PSU awards are included in "Compensation Expense" in the accompanying consolidated statements of operations and amounted to approximately $0.2 million for both the three months ended June 30, 2024 and 2023. The amortization of compensation costs for the PSU awards amounted to approximately $0.4 million for both the six months ended June 30, 2024 and 2023. The remaining unrecognized compensation cost of approximately $1.4 million for PSU awards is expected to be recognized over a weighted average amortization period of 2.0 years as of June 30, 2024. Stock Options Prior to the completion of the initial public offering ("IPO"), the Company issued 791,790 nonqualified stock options (the “Options”) to purchase shares of the Company’s common stock, subject to the terms and conditions of the applicable option grant agreements, with an exercise price per share of common stock equal to $24.00 and in such amounts as set forth in the option grant agreements. The Options vested on August 31, 2020. As of June 30, 2024 and 2023, the Options were fully exercisable and expire on July 15, 2027. |
Warrants
Warrants | 6 Months Ended |
Jun. 30, 2024 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | Warrants Warrants Issued On March 17, 2021, the Company entered into a warrant agreement which granted the holder the right to purchase 602,392 shares of common stock of the Company at a purchase price of $24.00 per share. Warrants were immediately exercisable and expire on July 15, 2027. As of June 30, 2024 and 2023, 602,392 warrants were fully exercisable. Investment in Warrants On October 27, 2023, the Company entered into a lease amendment and forbearance agreement for its existing lease agreement with Revolutionary Clinics on its cultivation facility in Massachusetts. Under the forbearance agreement, the Company provided forbearance of delinquent rent and received warrants. The warrants are accounted for under ASC 321. The Company elected to use the measurement alternative to value its investment in warrants, since the fair value was not readily determinable. The investment in warrants is classified in “Other Assets” in the consolidated balance sheets at its initial cost value of $522 thousand. The cost value was determined based upon the implied recapitalized equity value of Revolutionary Clinics. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock As of June 30, 2024 and December 31, 2023, the Company had 100,000,000 shares of preferred stock authorized and 0 shares of preferred stock outstanding. Common Stock As of June 30, 2024 and December 31, 2023, the Company had 400,000,000 shares of common stock authorized and 20,509,883 and 20,503,520 shares, respectively, of common stock issued and outstanding. Common stock is issued at a par value of $0.01 per share. Stock Repurchase Program On November 7, 2022, the board of directors of the Company authorized a stock repurchase program of its common stock up to $10.0 million through December 31, 2023. Purchases made pursuant to the stock repurchase program will be made in the open market, in privately negotiated transactions, or pursuant to any trading plan that may be adopted in accordance with Rule 10b-18 of the Securities and Exchange Act of 1934, as amended. The authorization of the stock repurchase program does not obligate the Company to acquire any particular amount of common stock. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. On September 15, 2023, the board of directors of the Company authorized an amendment to the stock repurchase program for the repurchase of up to an additional $10.0 million of outstanding common stock and extended the stock repurchase program through December 31, 2024. The stock repurchase program may be suspended or discontinued by us at any time and without prior notice. The Company did not acquire any shares of common stock pursuant to the stock repurchase plan during the six months ended June 30, 2024. During the six months ended June 30, 2023, pursuant to the stock repurchase plan, the Company acquired 105,679 shares of common stock with an average purchase price, including commissions, of $12.62, totaling approximately $1.3 million. The remaining availability under the stock repurchase program as of June 30, 2024, was approximately $8.2 million. At the Market Equity Program On June 10, 2024, the Company entered into an Equity Distribution Agreement ("Equity Distribution Agreement"), relating to shares of its common stock, $0.01 par value per share, pursuant to an “at the market” offering program. In accordance with the terms of the Equity Distribution Agreement, the Company may offer and sell shares of its common stock having an aggregate offering amount of up to $50.0 million from time to time through a sales agent. Sales of the shares of the Company's common stock, if any, may be made in negotiated transactions or by means of ordinary brokers’ transactions on the OTCQX at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices or through a market maker other than on an exchange, directly on or through any other existing trading market or by any other method permitted by law, including but not limited to in privately negotiated transactions and in block trades. Total compensation payable to the sales agent for its services acting as an agent, principal and/or advisor, as applicable, will not exceed 2.0% of the gross sales price per share for any shares of common stock sold from time to time under the Equity Distribution Agreement. Under the terms of the Equity Distribution Agreement, the Company may also sell its common stock to the sales agent as principal for its own account at a price agreed upon at the time of sale. As of June 30, 2024, no shares of common stock had been issued under the At-the-Market Equity Program ("ATM Program"). Dividends The following tables describe the cash dividends declared on the Company's common stock and vested RSUs and in the Company's capacity as general partner of the operating partnership, authorized distributions on our OP Units declared by the Company during the six months ended June 30, 2024 and 2023: Declaration Date Record Date Period Covered Distributions Paid Date Amount per Share/Unit March 8, 2024 March 29, 2024 January 1, 2024 to March 31, 2024 April 15, 2024 $ 0.41 June 12, 2024 June 28, 2024 April 1, 2024 to June 30, 2024 July 15, 2024 $ 0.43 Total $ 0.84 Declaration Date Record Date Period Covered Distributions Paid Date Amount per March 7, 2023 March 31, 2023 January 1, 2023 to March 31, 2023 April 14, 2023 $ 0.39 June 15, 2023 June 30, 2023 April 1, 2023 to June 30, 2023 July 14, 2023 $ 0.39 Total $ 0.78 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted earnings per share (in thousands, except share and per share data): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net Income Attributable to Common Stockholders $ 6,796 $ 5,797 $ 13,665 $ 11,665 Add: Net Income Attributable to Noncontrolling Interest 122 101 247 203 Net Income $ 6,918 $ 5,898 $ 13,912 $ 11,868 Denominator: Weighted Average Shares of Common Stock Outstanding - Basic 20,555,362 21,369,489 20,548,601 21,396,330 Dilutive Effect of OP Units 373,582 373,582 373,582 373,582 Dilutive Effect of Unvested Restricted Stock Units 22,435 — 24,622 — Weighted Average Shares of Common Stock - Diluted 20,951,379 21,743,071 20,946,805 21,769,912 Earnings Per Share - Basic Net Income Attributable to Common Stockholders $ 0.33 $ 0.27 $ 0.66 $ 0.55 Earnings Per Share - Diluted Net Income Attributable to Common Stockholders $ 0.33 $ 0.27 $ 0.66 $ 0.55 During the three and six months ended June 30, 2024, the effect of including OP Units and unvested RSUs were included in the Company's calculation of weighted average shares of common stock outstanding - dilutive. During the three and six months ended June 30, 2023, the effect of including OP Units was included in the Company's calculation of weighted average shares of common stock outstanding - dilutive and the effect of unvested RSUs was excluded in the Company's weighted average shares of common stock outstanding - dilutive as their inclusion would have been anti-dilutive. During the three and six months ended June 30, 2024 and 2023, the effect of 791,790 and 615,838 outstanding stock options and warrants, respectively, were excluded in the Company's calculation of weighted average shares of common stock outstanding – diluted as their inclusion would have been anti-dilutive. During the three and six months ended June 30, 2024 and 2023, the Company did not include the effect of 159,522 and 121,858 outstanding PSUs, respectively, in the calculation of earnings per share. The effect of the outstanding PSUs were not included in the calculation of diluted earnings per share as the market condition for the PSUs had not been met as of June 30, 2024 and June 30, 2023. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standards describe three levels of inputs that may be used to measure fair value: Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – Includes other inputs that are directly or indirectly observable in the marketplace. Level 3 – Unobservable inputs that are supported by little or no market activities, therefore requiring an entity to develop its own assumptions. The following table presents the carrying value and estimated fair value of financial instruments at June 30, 2024 and December 31, 2023 (in thousands): June 30, 2024 December 31, 2023 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Note Receivable (1) $ 4,859 $ 4,741 $ 4,833 $ 4,748 Revolving Credit Facility (2) $ 7,600 $ 7,338 $ 1,000 $ 968 Loan Payable (2)(3) $ — $ — $ 1,000 $ 992 (1) The fair value measurement of the $5.0 million Note Receivable is based on unobservable inputs, and as such, is classified as Level 3. The carrying value as of June 30, 2024 and December 31, 2023, reflects the provision for current expected credit loss of $140.6 thousand and $166.7 thousand, respectively. (2) The fair value of the Company's Revolving Credit Facility and Loan Payable are based on observable inputs, and as such, are classified as Level 2. (3) The Company made its final installment payment on its loan payable on January 3, 2024. As of June 30, 2024 and December 31, 2023, the Company’s investment in warrants was valued based on the initial investment, less impairment. The Company determined the investment was not impaired as of June 30, 2024 and December 31, 2023. Since these securities are not actively traded, the Company will apply valuation adjustments if and when such indicators become available. As such, these securities are carried at cost and are classified as Level 3 of the fair value hierarchy. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As a REIT, the Company is not subject to federal income tax to the extent that it makes qualifying distributions to its stockholders, and provided it satisfies on a continuing basis, through actual investment and operating results, the REIT requirements including certain asset, income, distribution, and stock ownership tests. The state and local tax jurisdictions for which the Company is subject to tax-filing obligations recognize the Company’s status as a REIT, and therefore, the Company generally does not pay income tax in such jurisdictions. The Company may, however, be subject to certain minimum state and local tax filing fees as well as certain excise, franchise, or business taxes. Taxable REIT Subsidiaries In October 2023, the Company elected to treat a domestic subsidiary as a TRS. The TRS is subject to U.S. federal, state and local corporate income taxes at the current federal statutory rate of 21%. The Company’s effective tax rate differs from its combined U.S. federal, state and local corporate statutory tax rate primarily due to income earned at the REIT, which is not subject to tax, due to the deduction for qualifying distributions made by the Company. For the three and six months ended June 30, 2024, the TRS had limited activity and did not generate taxable income. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of June 30, 2024, the Company had aggregate unfunded commitments to invest approximately $15.8 million to develop and improve our existing cultivation facilities in Arizona, Connecticut, Missouri, and Pennsylvania. Refer to Note 3 - "Real Estate" for further details on the Company's commitments. Refer to Note 16 - “Subsequent Events” for details on commitments the Company funded after June 30, 2024. As of June 30, 2024 the Company is the lessee under one office lease. Refer to Note 4 - "Leases" for further information. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Funded Commitments |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 6,796 | $ 5,797 | $ 13,665 | $ 11,665 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. The consolidated financial statements include the accounts of the Company, the Operating Partnership, as well as any wholly owned subsidiaries of the Operating Partnership and variable interest entities (“VIEs”) in which the Company is considered the primary beneficiary. All significant intercompany balances and transactions have been eliminated in the consolidated financial statements. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the operating results for the full year or any future period. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and filed with the Securities and Exchange Commission (“SEC”) on March 11, 2024. In management's opinion, all adjustments (which include normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been made. |
Variable Interest Entities | Variable Interest Entities The Company consolidates a VIE in which it is considered the primary beneficiary. The primary beneficiary is the entity that has: (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management will adjust such estimates when facts and circumstances dictate. Such estimates include, but are not limited to, useful lives for depreciation of property and corporate assets, the fair value of acquired real estate and in-place lease intangibles acquired, and the valuation of stock-based compensation. Actual results could differ from those estimates. |
Reclassification | Reclassification Certain prior year balances have been reclassified to conform to the Company's current year presentation. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Description Effective Date Effect on Financial Statements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The update also requires disclosure regarding the chief operating decision maker and expands the interim segment disclosure requirements. For fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires entities to disclose additional information with respect to the effective tax rate reconciliation and to disclose the disaggregation by jurisdiction of income tax expense and income taxes paid. For fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements. |
Real Estate (Tables)
Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Properties Acquired and Current Properties | The following table presents the Company's real estate portfolio as of June 30, 2024 (dollars in thousands): Tenant Market Site Type Land Building and Improvements (1) Total Real Estate Accumulated Depreciation Net Real Estate Acreage Connecticut Dispensary $ 395 $ 534 $ 929 $ (84) $ 845 Acreage Massachusetts Cultivation 481 9,310 9,791 (1,298) 8,493 Acreage Pennsylvania Cultivation 952 9,209 10,161 (1,239) 8,922 Ayr Wellness, Inc. Nevada Cultivation 1,002 12,577 13,579 (765) 12,814 Ayr Wellness, Inc. Pennsylvania Cultivation 2,963 11,565 14,528 (809) 13,719 C3 Industries Missouri Cultivation 948 27,308 28,256 (739) (2) 27,517 C3 Industries Connecticut Cultivation 321 3,672 3,993 (17) 3,976 Calypso Enterprises Pennsylvania Cultivation 1,486 30,527 32,013 (1,919) (3) 30,094 Cannabist (4) California Dispensary 1,082 2,692 3,774 (284) 3,490 Cannabist (4) Illinois Dispensary 162 1,053 1,215 (107) 1,108 Cannabist (4) Illinois Cultivation 801 10,560 11,361 (1,085) 10,276 Cannabist (4) Massachusetts Dispensary 108 2,212 2,320 (251) 2,069 Cannabist (4) Massachusetts Cultivation 1,136 12,690 13,826 (1,753) 12,073 Cresco Labs Illinois Cultivation 276 50,456 50,732 (6,453) 44,279 Curaleaf Connecticut Dispensary 184 2,748 2,932 (301) 2,631 Curaleaf Florida Cultivation 388 75,595 75,983 (7,435) 68,548 Curaleaf Illinois Dispensary 69 525 594 (60) 534 Curaleaf Illinois Dispensary 65 959 1,024 (113) 911 Curaleaf Illinois Dispensary 606 1,128 1,734 (130) 1,604 Curaleaf Illinois Dispensary 281 3,072 3,353 (345) 3,008 Curaleaf North Dakota Dispensary 779 1,395 2,174 (157) 2,017 Curaleaf Ohio Dispensary 574 2,788 3,362 (365) 2,997 Curaleaf Pennsylvania Dispensary 877 1,041 1,918 (152) 1,766 Curaleaf Pennsylvania Dispensary 216 2,011 2,227 (225) 2,002 Greenlight (5) Arkansas Dispensary 238 1,919 2,157 (216) 1,941 Mint Arizona Cultivation 2,400 18,128 20,528 — (6) 20,528 Organic Remedies Missouri Cultivation 204 20,897 21,101 (2,722) 18,379 PharmaCann Massachusetts Dispensary 411 1,701 2,112 (339) 1,773 PharmaCann Ohio Dispensary 281 1,269 1,550 (60) 1,490 PharmaCann Pennsylvania Dispensary 44 1,271 1,315 (130) 1,185 Revolutionary Clinics Massachusetts Cultivation 926 41,934 42,860 (3,675) 39,185 Trulieve Pennsylvania Cultivation 1,061 43,209 44,270 (4,963) 39,307 Total Real Estate (7) $ 21,717 $ 405,955 $ 427,672 $ (38,191) $ 389,481 (1) Includes construction in progress in the amount of $20.1 million that had been funded as of June 30, 2024. (2) Building and improvements related to the Missouri cultivation facility (leased to C3 Industries) expansion project that was placed into service. The Company started depreciation on the related assets in June 2024. (3) A portion of this investment is currently undergoing tenant improvements. Once the tenant improvements are completed for their intended use, the Company will place the tenant improvements in service and begin depreciating the applicable part of the property. (4) This tenant was formerly known as Columbia Care. (5) GL Partners, Inc. (Greenlight) acquired the tenant and was added as a guarantor, however Curaleaf remains an additional guarantor subject to certain conditions in the lease agreement. (6) A portion of this investment is currently under development or undergoing building improvements. Once the development or improvements are completed and placed-in service, the Company will begin depreciating the applicable part of the property. (7) At times, numbers in this table may differ due to rounding. The following table presents the real estate acquisition for the six months ended June 30, 2024 (in thousands): Tenant Market Site Type Closing Date Real Estate Acquisition Costs C3 Industries Connecticut Cultivation May 7, 2024 $ 3,993 Total $ 3,993 Tenant Market Site Type Closing Date Real Estate Acquisition Costs C3 Industries Missouri Cultivation March 3, 2023 $ 350 Total $ 350 |
Tenant Improvements Funded | The following table presents the funded commitments and the remaining unfunded commitments for the six months ended June 30, 2024 (in thousands): Tenant Market Site Type Closing Date Funded Commitments Unfunded Commitments Ayr Wellness, Inc. Pennsylvania Cultivation June 30, 2022 $ — $ 750 C3 Industries Connecticut Cultivation May 7, 2024 — 12,024 C3 Industries Missouri Cultivation March 3, 2023 8,065 761 Calypso Pennsylvania Cultivation August 5, 2022 — 987 Mint Arizona Cultivation June 24, 2021 3,306 1,282 (1) Total $ 11,371 $ 15,804 (1) Effective June 6, 2024, the lease agreement was amended to include an additional commitment of approximately $800 thousand. Tenant Market Site Type Closing Date Funded Commitments Unfunded Commitments Ayr Wellness, Inc. Pennsylvania Cultivation June 30, 2022 $ — $ 750 C3 Industries Missouri Cultivation April 1, 2022 7,858 8,826 Calypso Pennsylvania Cultivation August 5, 2022 2,013 987 Mint Arizona Cultivation June 24, 2021 4,281 3,788 (1) Organic Remedies Missouri Cultivation December 20, 2021 282 — Total $ 14,434 $ 14,351 (1) Effective June 1, 2023, the lease agreement was amended to include an additional commitment of approximately $6.5 million. |
Construction in Progress | The below tables presents construction in progress fundings and assets placed in service as of June 30, 2024. Refer below to the Depreciation and Amortization section of Note 3 - Real Estate for details around assets placed in service. Tenant Site Type Beginning Balance (1) Fundings Placed-in-Service Ending Balance (2) C3 Industries Cultivation $ 7,324 $ 8,065 $ (15,389) $ — Calypso Cultivation 2,013 — — 2,013 Mint Cultivation 14,822 3,306 — 18,128 Total $ 24,159 $ 11,371 $ (15,389) $ 20,141 (1) Beginning balance as of January 1, 2024. (2) These properties were under development or improvement as of June 30, 2024. Once the development is completed or the improvement is completed for its intended use, the assets will be placed-in-service and the Company will begin depreciation. The below tables presents construction in progress fundings and assets placed in service as of December 31, 2023. Refer below to the Depreciation and Amortization section of Note 3 - Real Estate for details around assets placed in service. Tenant Site Type Beginning Balance (1) Fundings Placed-in-Service Ending Balance (2) C3 Industries Cultivation $ — $ 7,324 $ — $ 7,324 Calypso Cultivation — 2,013 — 2,013 Mint Cultivation 10,541 4,281 — 14,822 Total $ 10,541 $ 13,618 $ — $ 24,159 (1) Beginning balance as of January 1, 2023. The table does not include approximately $1.6 million of tenant improvements that had been funded as of January 1, 2023 for the development of a cultivation facility in Massachusetts. These tenant improvements were never placed-in-service and the property was sold on October 27, 2023. |
Future Amortization Expense | The following table presents the future amortization of the Company’s acquired in-place leases as of June 30, 2024 (in thousands): Year Amortization Expense 2024 (six months ending December 31, 2024) $ 993 2025 1,985 2026 1,985 2027 1,985 2028 1,985 Thereafter 9,853 Total $ 18,786 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Future Contractual Minimum Rent | The following table presents the future contractual minimum rent under the Company’s operating leases as of June 30, 2024 (in thousands): Year Contractual Minimum Rent 2024 (six months ending December 31, 2024) $ 25,448 2025 52,587 2026 55,042 2027 56,473 2028 57,942 Thereafter 577,019 Total $ 824,511 |
Tenants in Portfolio that Represents the Largest Percentage of Total Revenue | 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 reimbursable revenues, for each of the periods presented: For the Three Months Ended June 30, 2024 2023 Tenant Number of Leases Percentage of Rental Income (1) Tenant Number of Leases Percentage of Rental Income (1)(2) Curaleaf 10 23% Curaleaf 10 25% Cresco Labs 1 14% Cresco Labs 1 14% Trulieve 1 11% Trulieve 1 12% Cannabist (3) 5 9% Cannabist (3) 5 9% Calypso 1 7% Calypso 1 8% (1) Calculated based on rental income received during the period. This amount includes fees and excludes revenue reimbursables. (2) Prior year presentation has been recalculated to exclude revenue reimburseables to conform to current year presentation. (3) This tenant was formerly known as Columbia Care. For the Six Months Ended June 30, 2024 2023 Tenant Number of Leases Percentage of Rental Income (1) Tenant Number of Leases Percentage of Rental Income (1)(2) Curaleaf 10 23% Curaleaf 10 25% Cresco Labs 1 14% Cresco Labs 1 15% Trulieve 1 11% Trulieve 1 12% Cannabist (3) 5 9% Cannabist (3) 5 9% Calypso 1 7% Calypso 1 9% (1) Calculated based on rental income received during the period. This amount includes fees and excludes revenue reimbursements. (2) Prior year presentation has been recalculated to exclude revenue reimburseables to conform to current year presentation. (3) This tenant was formerly know as Columbia Care. 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 reimbursable revenues, for each of the periods presented: For the Three Months Ended June 30, 2024 2023 State Number of Properties Percentage of Rental Income (1) State Number of Properties Percentage of Rental Income (1) Pennsylvania 7 26% Pennsylvania 7 29% Florida 1 19% Florida 1 20% Illinois 7 18% Illinois 7 19% Massachusetts 5 13% Massachusetts 6 (2) 12% Missouri 2 11% Missouri 2 8% (1) Calculated based on rental income received during the period. This amount includes fees and excludes revenue reimbursables. (2) Included in the number of properties and revenue is one Massachusetts property sold in October 2023. For the Six Months Ended June 30, 2024 2023 State Number of Properties Percentage of Rental Income (1) State Number of Properties Percentage of Rental Income (1) Pennsylvania 7 26% Pennsylvania 7 29% Florida 1 19% Florida 1 20% Illinois 7 18% Illinois 7 20% Massachusetts 5 13% Massachusetts 6 (2) 12% Missouri 2 10% Missouri 2 8% (1) Calculated based on rental income received during the period. This amount includes fees and excludes revenue reimbursables. (2) Included in the number of properties and revenue is one Massachusetts property sold in October 2023. |
Future Contractual Rent Obligations | The following table presents the future contractual rent obligations as lessee as of June 30, 2024 (in thousands): Year Contractual Base Rent 2024 (six months ended December 31, 2024) $ 38 2025 77 2026 52 Total Minimum Lease Payments $ 167 Less: Amount Discounted Using Incremental Borrowing Rate $ (14) Total Lease Liability $ 153 |
Loan Receivable, net (Tables)
Loan Receivable, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Loans and Leases Receivable Disclosure [Abstract] | |
CECL Reserve | The following table presents the CECL reserve for the six months ended June 30, 2024 (in thousands): Period Expected Credit Loss CECL reserve as of December 31, 2023 $ 166.7 Adjustment to expected credit loss (14.3) CECL reserve as of March 31, 2024 152.4 Adjustment to expected credit loss (11.8) CECL reserve as of June 30, 2024 (1) $ 140.6 (1) Included in "Loan Receivable, net" on the consolidated balance sheets. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Unvested Restricted Stock Activity | The following table sets forth the Company's unvested RSU activity for the six months ended June 30,: 2024 2023 Number of Unvested Shares of RSUs Weighted Average Grant Date Fair Value Per Share Number of Unvested Shares of RSUs Weighted Average Grant Date Fair Value Per Share Balance at January 1, 63,582 $ 13.92 29,255 $ 22.89 Granted 49,014 $ 17.40 59,031 $ 12.87 Forfeited (740) $ 15.19 — $ — Vested (40,610) (1) $ 12.64 (18,318) $ 20.14 Balance at June 30, 71,246 $ 17.03 69,968 $ 15.15 (1) Vested shares are reported gross and include 2,846 shares withheld to satisfy tax and other compensation related withholdings associated with the vested RSUs issued under the 2021 Equity Incentive Plan. |
Vested Restricted Stock Activity | The following table sets forth the Company's vested RSU activity for the six months ended June 30,: 2024 2023 Number of Vested Shares of RSUs Weighted Average Grant Date Fair Value Per Share Number of Vested Shares of RSUs Weighted Average Grant Date Fair Value Per Share Balance at January 1, 36,852 $ 22.05 18,534 $ 23.93 Vested 40,610 (1) $ 12.64 18,318 $ 20.14 Converted (6,363) $ 13.38 — $ — Shares Withheld (2) (2,846) $ 13.38 — $ — Balance at June 30, 68,253 $ 17.62 36,852 $ 22.05 (1) Represents the gross number of RSUs vested, which includes 2,846 shares withheld for taxes and not converted to common stock. (2) Represents shares withheld to satisfy tax and other compensation related withholdings associated with the vested RSUs issued under the 2021 Equity Incentive Plan. |
Unvested Performance Stock Activity | The following table sets forth the Company's unvested PSU activity for the six months ended June 30,: 2024 2023 Number of Unvested Shares of PSUs Weighted Average Grant Date Fair Value Per Share Number of Unvested Shares of PSUs Weighted Average Grant Date Fair Value Per Share Balance at January 1, 103,000 $ 17.18 66,841 $ 24.04 Granted 56,522 $ 17.30 55,017 $ 11.23 Balance at June 30, 159,522 $ 17.22 121,858 $ 18.26 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Common Dividends, Dividend Equivalents and Distributions Declared | The following tables describe the cash dividends declared on the Company's common stock and vested RSUs and in the Company's capacity as general partner of the operating partnership, authorized distributions on our OP Units declared by the Company during the six months ended June 30, 2024 and 2023: Declaration Date Record Date Period Covered Distributions Paid Date Amount per Share/Unit March 8, 2024 March 29, 2024 January 1, 2024 to March 31, 2024 April 15, 2024 $ 0.41 June 12, 2024 June 28, 2024 April 1, 2024 to June 30, 2024 July 15, 2024 $ 0.43 Total $ 0.84 Declaration Date Record Date Period Covered Distributions Paid Date Amount per March 7, 2023 March 31, 2023 January 1, 2023 to March 31, 2023 April 14, 2023 $ 0.39 June 15, 2023 June 30, 2023 April 1, 2023 to June 30, 2023 July 14, 2023 $ 0.39 Total $ 0.78 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table presents the computation of basic and diluted earnings per share (in thousands, except share and per share data): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Numerator: Net Income Attributable to Common Stockholders $ 6,796 $ 5,797 $ 13,665 $ 11,665 Add: Net Income Attributable to Noncontrolling Interest 122 101 247 203 Net Income $ 6,918 $ 5,898 $ 13,912 $ 11,868 Denominator: Weighted Average Shares of Common Stock Outstanding - Basic 20,555,362 21,369,489 20,548,601 21,396,330 Dilutive Effect of OP Units 373,582 373,582 373,582 373,582 Dilutive Effect of Unvested Restricted Stock Units 22,435 — 24,622 — Weighted Average Shares of Common Stock - Diluted 20,951,379 21,743,071 20,946,805 21,769,912 Earnings Per Share - Basic Net Income Attributable to Common Stockholders $ 0.33 $ 0.27 $ 0.66 $ 0.55 Earnings Per Share - Diluted Net Income Attributable to Common Stockholders $ 0.33 $ 0.27 $ 0.66 $ 0.55 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Financial Instruments | The following table presents the carrying value and estimated fair value of financial instruments at June 30, 2024 and December 31, 2023 (in thousands): June 30, 2024 December 31, 2023 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Note Receivable (1) $ 4,859 $ 4,741 $ 4,833 $ 4,748 Revolving Credit Facility (2) $ 7,600 $ 7,338 $ 1,000 $ 968 Loan Payable (2)(3) $ — $ — $ 1,000 $ 992 (1) The fair value measurement of the $5.0 million Note Receivable is based on unobservable inputs, and as such, is classified as Level 3. The carrying value as of June 30, 2024 and December 31, 2023, reflects the provision for current expected credit loss of $140.6 thousand and $166.7 thousand, respectively. (2) The fair value of the Company's Revolving Credit Facility and Loan Payable are based on observable inputs, and as such, are classified as Level 2. |
Real Estate - Narrative (Detail
Real Estate - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Oct. 27, 2023 USD ($) | May 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) property state | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) property state | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) state property | Dec. 31, 2022 USD ($) | |
Real Estate [Line Items] | |||||||||
Number of properties | property | 32 | 32 | 31 | ||||||
Number of states where real estate property is owned | state | 12 | 12 | 12 | ||||||
Real estate acquisition costs | $ 3,993 | $ 350 | |||||||
Unfunded commitments | $ 15,804 | 15,804 | $ 14,351 | ||||||
Funded Commitments | 11,371 | 2,996 | 14,434 | ||||||
Construction in progress | 20,141 | 20,141 | $ 24,159 | $ 10,541 | |||||
Proceeds from sale | 0 | ||||||||
Number of properties sold | property | 1 | ||||||||
Net Real Estate | 389,481 | 389,481 | $ 380,309 | ||||||
Depreciation expense | 3,100 | $ 3,100 | 6,200 | 6,100 | |||||
Amortization of in-place lease intangible assets | 500 | 500 | $ 1,000 | $ 1,000 | |||||
Impairment loss | $ 0 | $ 0 | |||||||
Leases, Acquired-in-Place | |||||||||
Real Estate [Line Items] | |||||||||
Acquired in-place lease intangible asset weighted average remaining amortization period (in years) | 9 years 8 months 19 days | ||||||||
Mint Massachusetts Property | |||||||||
Real Estate [Line Items] | |||||||||
Proceeds from sale | $ 2,000 | ||||||||
Net Real Estate | $ 1,900 | ||||||||
Cultivation Facility In Connecticut | |||||||||
Real Estate [Line Items] | |||||||||
Unfunded commitments | $ 12,000 | ||||||||
Cultivation Facility In Missouri | |||||||||
Real Estate [Line Items] | |||||||||
Unfunded commitments | $ 16,200 | ||||||||
Wholly Owned Properties | |||||||||
Real Estate [Line Items] | |||||||||
Real estate acquisition costs | $ 4,000 | $ 350 | $ 3,993 | $ 350 |
Real Estate - Properties Acquir
Real Estate - Properties Acquired and Current Properties (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
May 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) state | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) state | Dec. 31, 2022 USD ($) | |
Real Estate [Line Items] | ||||||
Land | $ 21,717 | $ 21,397 | ||||
Building and Improvements | 405,955 | 390,911 | ||||
Total Real Estate | 427,672 | 412,308 | ||||
Accumulated Depreciation | (38,191) | (31,999) | ||||
Net Real Estate | 389,481 | 380,309 | ||||
Construction in progress | 20,141 | $ 24,159 | $ 10,541 | |||
Real Estate Acquisition Costs | $ 3,993 | $ 350 | ||||
Number of states where real estate property is owned | state | 12 | 12 | ||||
Wholly Owned Properties | ||||||
Real Estate [Line Items] | ||||||
Real Estate Acquisition Costs | $ 4,000 | $ 350 | $ 3,993 | $ 350 | ||
Acreage | Connecticut | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 395 | |||||
Building and Improvements | 534 | |||||
Total Real Estate | 929 | |||||
Accumulated Depreciation | (84) | |||||
Net Real Estate | 845 | |||||
Acreage | Massachusetts | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 481 | |||||
Building and Improvements | 9,310 | |||||
Total Real Estate | 9,791 | |||||
Accumulated Depreciation | (1,298) | |||||
Net Real Estate | 8,493 | |||||
Acreage | Pennsylvania | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 952 | |||||
Building and Improvements | 9,209 | |||||
Total Real Estate | 10,161 | |||||
Accumulated Depreciation | (1,239) | |||||
Net Real Estate | 8,922 | |||||
Ayr Wellness, Inc. | Nevada | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 1,002 | |||||
Building and Improvements | 12,577 | |||||
Total Real Estate | 13,579 | |||||
Accumulated Depreciation | (765) | |||||
Net Real Estate | 12,814 | |||||
Ayr Wellness, Inc. | Pennsylvania | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 2,963 | |||||
Building and Improvements | 11,565 | |||||
Total Real Estate | 14,528 | |||||
Accumulated Depreciation | (809) | |||||
Net Real Estate | 13,719 | |||||
C3 Industries | Missouri | Wholly Owned Properties | ||||||
Real Estate [Line Items] | ||||||
Real Estate Acquisition Costs | 350 | |||||
C3 Industries | Missouri | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 948 | |||||
Building and Improvements | 27,308 | |||||
Total Real Estate | 28,256 | |||||
Accumulated Depreciation | (739) | |||||
Net Real Estate | 27,517 | |||||
C3 Industries | Connecticut | Wholly Owned Properties | ||||||
Real Estate [Line Items] | ||||||
Real Estate Acquisition Costs | 3,993 | |||||
C3 Industries | Connecticut | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 321 | |||||
Building and Improvements | 3,672 | |||||
Total Real Estate | 3,993 | |||||
Accumulated Depreciation | (17) | |||||
Net Real Estate | 3,976 | |||||
Calypso Enterprises | Pennsylvania | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 1,486 | |||||
Building and Improvements | 30,527 | |||||
Total Real Estate | 32,013 | |||||
Accumulated Depreciation | (1,919) | |||||
Net Real Estate | 30,094 | |||||
Cannabist | California | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 1,082 | |||||
Building and Improvements | 2,692 | |||||
Total Real Estate | 3,774 | |||||
Accumulated Depreciation | (284) | |||||
Net Real Estate | 3,490 | |||||
Cannabist | Illinois | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 162 | |||||
Building and Improvements | 1,053 | |||||
Total Real Estate | 1,215 | |||||
Accumulated Depreciation | (107) | |||||
Net Real Estate | 1,108 | |||||
Cannabist | Illinois | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 801 | |||||
Building and Improvements | 10,560 | |||||
Total Real Estate | 11,361 | |||||
Accumulated Depreciation | (1,085) | |||||
Net Real Estate | 10,276 | |||||
Cannabist | Massachusetts | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 108 | |||||
Building and Improvements | 2,212 | |||||
Total Real Estate | 2,320 | |||||
Accumulated Depreciation | (251) | |||||
Net Real Estate | 2,069 | |||||
Cannabist | Massachusetts | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 1,136 | |||||
Building and Improvements | 12,690 | |||||
Total Real Estate | 13,826 | |||||
Accumulated Depreciation | (1,753) | |||||
Net Real Estate | 12,073 | |||||
Cresco Labs | Illinois | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 276 | |||||
Building and Improvements | 50,456 | |||||
Total Real Estate | 50,732 | |||||
Accumulated Depreciation | (6,453) | |||||
Net Real Estate | 44,279 | |||||
Curaleaf | Connecticut | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 184 | |||||
Building and Improvements | 2,748 | |||||
Total Real Estate | 2,932 | |||||
Accumulated Depreciation | (301) | |||||
Net Real Estate | 2,631 | |||||
Curaleaf | Florida | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 388 | |||||
Building and Improvements | 75,595 | |||||
Total Real Estate | 75,983 | |||||
Accumulated Depreciation | (7,435) | |||||
Net Real Estate | 68,548 | |||||
Curaleaf | Illinois | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 69 | |||||
Building and Improvements | 525 | |||||
Total Real Estate | 594 | |||||
Accumulated Depreciation | (60) | |||||
Net Real Estate | 534 | |||||
Curaleaf | Illinois | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 65 | |||||
Building and Improvements | 959 | |||||
Total Real Estate | 1,024 | |||||
Accumulated Depreciation | (113) | |||||
Net Real Estate | 911 | |||||
Curaleaf | Illinois | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 606 | |||||
Building and Improvements | 1,128 | |||||
Total Real Estate | 1,734 | |||||
Accumulated Depreciation | (130) | |||||
Net Real Estate | 1,604 | |||||
Curaleaf | Illinois | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 281 | |||||
Building and Improvements | 3,072 | |||||
Total Real Estate | 3,353 | |||||
Accumulated Depreciation | (345) | |||||
Net Real Estate | 3,008 | |||||
Curaleaf | North Dakota | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 779 | |||||
Building and Improvements | 1,395 | |||||
Total Real Estate | 2,174 | |||||
Accumulated Depreciation | (157) | |||||
Net Real Estate | 2,017 | |||||
Curaleaf | Ohio | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 574 | |||||
Building and Improvements | 2,788 | |||||
Total Real Estate | 3,362 | |||||
Accumulated Depreciation | (365) | |||||
Net Real Estate | 2,997 | |||||
Curaleaf | Pennsylvania | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 877 | |||||
Building and Improvements | 1,041 | |||||
Total Real Estate | 1,918 | |||||
Accumulated Depreciation | (152) | |||||
Net Real Estate | 1,766 | |||||
Curaleaf | Pennsylvania | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 216 | |||||
Building and Improvements | 2,011 | |||||
Total Real Estate | 2,227 | |||||
Accumulated Depreciation | (225) | |||||
Net Real Estate | 2,002 | |||||
Greenlight | Arkansas | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 238 | |||||
Building and Improvements | 1,919 | |||||
Total Real Estate | 2,157 | |||||
Accumulated Depreciation | (216) | |||||
Net Real Estate | 1,941 | |||||
Mint | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Construction in progress | 18,128 | $ 14,822 | $ 10,541 | |||
Mint | Arizona | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 2,400 | |||||
Building and Improvements | 18,128 | |||||
Total Real Estate | 20,528 | |||||
Accumulated Depreciation | 0 | |||||
Net Real Estate | 20,528 | |||||
Organic Remedies | Missouri | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 204 | |||||
Building and Improvements | 20,897 | |||||
Total Real Estate | 21,101 | |||||
Accumulated Depreciation | (2,722) | |||||
Net Real Estate | 18,379 | |||||
PharmaCann | Massachusetts | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 411 | |||||
Building and Improvements | 1,701 | |||||
Total Real Estate | 2,112 | |||||
Accumulated Depreciation | (339) | |||||
Net Real Estate | 1,773 | |||||
PharmaCann | Ohio | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 281 | |||||
Building and Improvements | 1,269 | |||||
Total Real Estate | 1,550 | |||||
Accumulated Depreciation | (60) | |||||
Net Real Estate | 1,490 | |||||
PharmaCann | Pennsylvania | Wholly Owned Properties | Dispensary | ||||||
Real Estate [Line Items] | ||||||
Land | 44 | |||||
Building and Improvements | 1,271 | |||||
Total Real Estate | 1,315 | |||||
Accumulated Depreciation | (130) | |||||
Net Real Estate | 1,185 | |||||
Revolutionary Clinics | Massachusetts | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 926 | |||||
Building and Improvements | 41,934 | |||||
Total Real Estate | 42,860 | |||||
Accumulated Depreciation | (3,675) | |||||
Net Real Estate | 39,185 | |||||
Trulieve | Pennsylvania | Wholly Owned Properties | Cultivation | ||||||
Real Estate [Line Items] | ||||||
Land | 1,061 | |||||
Building and Improvements | 43,209 | |||||
Total Real Estate | 44,270 | |||||
Accumulated Depreciation | (4,963) | |||||
Net Real Estate | $ 39,307 |
Real Estate - Tenant Improvemen
Real Estate - Tenant Improvements Funded (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Jun. 06, 2024 | Jun. 01, 2023 | |
Real Estate [Line Items] | |||||
Funded Commitments | $ 11,371 | $ 2,996 | $ 14,434 | ||
Unfunded Commitments | 15,804 | 14,351 | |||
Pennsylvania | Ayr Wellness, Inc. | |||||
Real Estate [Line Items] | |||||
Funded Commitments | 0 | 0 | |||
Unfunded Commitments | 750 | 750 | |||
Pennsylvania | Calypso | |||||
Real Estate [Line Items] | |||||
Funded Commitments | 0 | 2,013 | |||
Unfunded Commitments | 987 | 987 | |||
Connecticut | C3 Industries | |||||
Real Estate [Line Items] | |||||
Funded Commitments | 0 | ||||
Unfunded Commitments | 12,024 | ||||
Arizona | Mint | |||||
Real Estate [Line Items] | |||||
Funded Commitments | 3,306 | 4,281 | |||
Unfunded Commitments | 1,282 | 3,788 | $ 800 | $ 6,500 | |
Missouri | C3 Industries | |||||
Real Estate [Line Items] | |||||
Funded Commitments | 8,065 | 7,858 | |||
Unfunded Commitments | $ 761 | 8,826 | |||
Missouri | Organic Remedies | |||||
Real Estate [Line Items] | |||||
Funded Commitments | 282 | ||||
Unfunded Commitments | $ 0 |
Real Estate - Construction in P
Real Estate - Construction in Progress (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jan. 01, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Construction In Progress [Roll Forward] | |||
Beginning Balance | $ 10,541 | $ 24,159 | $ 10,541 |
Fundings | 11,371 | 13,618 | |
Placed-in-Service | (15,389) | 0 | |
Ending Balance | 20,141 | 24,159 | |
Cultivation | Massachusetts | |||
Construction In Progress [Roll Forward] | |||
Fundings | 1,600 | ||
Cultivation | C3 Industries | |||
Construction In Progress [Roll Forward] | |||
Beginning Balance | 0 | 7,324 | 0 |
Fundings | 8,065 | 7,324 | |
Placed-in-Service | (15,389) | 0 | |
Ending Balance | 0 | 7,324 | |
Cultivation | Calypso | |||
Construction In Progress [Roll Forward] | |||
Beginning Balance | 0 | 2,013 | 0 |
Fundings | 0 | 2,013 | |
Placed-in-Service | 0 | 0 | |
Ending Balance | 2,013 | 2,013 | |
Cultivation | Mint | |||
Construction In Progress [Roll Forward] | |||
Beginning Balance | $ 10,541 | 14,822 | 10,541 |
Fundings | 3,306 | 4,281 | |
Placed-in-Service | 0 | 0 | |
Ending Balance | $ 18,128 | $ 14,822 |
Real Estate - Future Amortizati
Real Estate - Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Real Estate [Abstract] | ||
2024 (six months ending December 31, 2024) | $ 993 | |
2025 | 1,985 | |
2026 | 1,985 | |
2027 | 1,985 | |
2028 | 1,985 | |
Thereafter | 9,853 | |
Total | $ 18,786 | $ 19,779 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 USD ($) property state tenant lease | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) property state tenant lease | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) tenant state property | Jun. 30, 2022 USD ($) | |
Lessor, Lease, Description [Line Items] | ||||||
Reimbursable revenue | $ 18,400 | $ 14,300 | $ 318,200 | $ 97,400 | ||
Number of leases with purchase option | lease | 2 | 2 | ||||
Total Real Estate | $ 427,672,000 | $ 427,672,000 | $ 412,308,000 | |||
Number of properties | property | 32 | 32 | 31 | |||
Number of tenants | tenant | 13 | 13 | 13 | |||
Number of states where real estate property is owned | state | 12 | 12 | 12 | |||
Number of leases | lease | 1 | 1 | ||||
ROU asset | $ 144,800 | $ 144,800 | $ 177,400 | $ 273,000 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | |||||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | |||||
Weighted-average discount rate | 5.65% | 5.65% | ||||
Remaining lease term (in years) | 2 years 2 months 1 day | 2 years 2 months 1 day | ||||
One Office Lease | ||||||
Lessor, Lease, Description [Line Items] | ||||||
Lease term (in years) | 4 years | 4 years | ||||
Operating lease payments, year one | $ 72,000 | |||||
Operating lease payments, year four | 85,000 | |||||
Real Estate Investment, Leased Assets with Option to Purchase | ||||||
Lessor, Lease, Description [Line Items] | ||||||
Total Real Estate | $ 6,300,000 | $ 6,300,000 | ||||
Minimum | ||||||
Lessor, Lease, Description [Line Items] | ||||||
Percentage of rent increase | 2% | |||||
Term of tenant improvement funding (in months) | 12 months | |||||
Maximum | ||||||
Lessor, Lease, Description [Line Items] | ||||||
Percentage of rent increase | 3% | |||||
Term of tenant improvement funding (in months) | 18 months |
Leases - Future Contractual Min
Leases - Future Contractual Minimum Rent (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
2024 (six months ending December 31, 2024) | $ 25,448 |
2025 | 52,587 |
2026 | 55,042 |
2027 | 56,473 |
2028 | 57,942 |
Thereafter | 577,019 |
Total | $ 824,511 |
Leases - Tenants in Portfolio t
Leases - Tenants in Portfolio that Represents the Largest Percentage of Total Revenue (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 lease property | Jun. 30, 2023 lease property | Jun. 30, 2024 lease property | Jun. 30, 2023 property lease | |
Pennsylvania | ||||
Real Estate [Line Items] | ||||
Percentage of Rental Income | 26% | 29% | 26% | 29% |
Number of Properties | property | 7 | 7 | 7 | 7 |
Florida | ||||
Real Estate [Line Items] | ||||
Percentage of Rental Income | 19% | 20% | 19% | 20% |
Number of Properties | property | 1 | 1 | 1 | 1 |
Illinois | ||||
Real Estate [Line Items] | ||||
Percentage of Rental Income | 18% | 19% | 18% | 20% |
Number of Properties | property | 7 | 7 | 7 | 7 |
Massachusetts | ||||
Real Estate [Line Items] | ||||
Percentage of Rental Income | 13% | 12% | 13% | 12% |
Number of Properties | property | 5 | 6 | 5 | 6 |
Missouri | ||||
Real Estate [Line Items] | ||||
Percentage of Rental Income | 11% | 8% | 10% | 8% |
Number of Properties | property | 2 | 2 | 2 | 2 |
Curaleaf | ||||
Real Estate [Line Items] | ||||
Number of Leases | lease | 10 | 10 | 10 | 10 |
Percentage of Rental Income | 23% | 25% | 23% | 25% |
Cresco Labs | ||||
Real Estate [Line Items] | ||||
Number of Leases | lease | 1 | 1 | 1 | 1 |
Percentage of Rental Income | 14% | 14% | 14% | 15% |
Trulieve | ||||
Real Estate [Line Items] | ||||
Number of Leases | lease | 1 | 1 | 1 | 1 |
Percentage of Rental Income | 11% | 12% | 11% | 12% |
Cannabist | ||||
Real Estate [Line Items] | ||||
Number of Leases | lease | 5 | 5 | 5 | 5 |
Percentage of Rental Income | 9% | 9% | 9% | 9% |
Calypso | ||||
Real Estate [Line Items] | ||||
Number of Leases | lease | 1 | 1 | 1 | 1 |
Percentage of Rental Income | 7% | 8% | 7% | 9% |
Leases - Future Contractual Ren
Leases - Future Contractual Rent Obligations (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
2024 (six months ended December 31, 2024) | $ 38 |
2025 | 77 |
2026 | 52 |
Total Minimum Lease Payments | 167 |
Less: Amount Discounted Using Incremental Borrowing Rate | (14) |
Total Lease Liability | $ 153 |
Loan Receivable, net - Narrativ
Loan Receivable, net - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 10, 2022 | Jun. 30, 2024 | Dec. 31, 2023 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans receivable | $ 4,859 | $ 4,833 | |
Financing receivable, before allowance for credit loss | 5,000 | 5,000 | |
Unsecured Loan Receivable | C3 Industries | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans receivable | $ 5,000 | $ 5,000 | $ 5,000 |
Loan interest rate | 10.25% | 10.72% | 10.48% |
Loan interest rate increase | 102.25% | ||
Term that loan is interest only (in years) | 4 years | ||
Amortization term of principal and interest (in years) | 5 years | ||
Financing receivable, before allowance for credit loss | $ 5,000 |
Loan Receivable, net - CECL Res
Loan Receivable, net - CECL Reserve (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
CECL reserve, beginning balance | $ 152,400 | $ 166,700 |
Adjustment to expected credit loss | (11,800) | (14,300) |
CECL reserve, ending balance | $ 140,600 | $ 152,400 |
Financings (Details)
Financings (Details) $ in Thousands | Jul. 29, 2022 USD ($) lender | Jun. 30, 2024 USD ($) | Jan. 03, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jan. 31, 2023 USD ($) | May 06, 2022 USD ($) | Jan. 31, 2022 USD ($) | Dec. 20, 2021 USD ($) |
Debt Instrument [Line Items] | ||||||||
Revolving Credit Facility | $ 7,600 | $ 1,000 | ||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 90,000 | $ 30,000 | ||||||
Number of additional lenders | lender | 2 | |||||||
Applicable margin | 1% | |||||||
Minimum variable rate | 4.75% | |||||||
Revolving Credit Facility | 7,600 | $ 1,000 | ||||||
Amount available to be drawn | $ 82,400 | |||||||
Revolving Credit Facility | Fixed Interest Rate For First Three Years | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5.65% | |||||||
Potential Expansion of Borrowing Capacity for Additional Lenders | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 100,000 | |||||||
Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 3,800 | |||||||
Interest rate | 4% | |||||||
Annual principal payment | $ 1,000 | $ 1,000 | $ 1,800 |
Related Party Transactions (Det
Related Party Transactions (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Related Party | HG Vora | Related Party, Terms Of Nomination Of Members Of Board Of Directors, Term One | |
Related Party Transaction [Line Items] | |
Number of consecutive days (in days) | 60 days |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) | Jun. 30, 2024 Rate | Dec. 31, 2023 Rate |
Noncontrolling Interest [Abstract] | ||
Noncontrolling interest percentage | 1.80% | 1.80% |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 36 Months Ended | |||||
Aug. 12, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2026 | Dec. 31, 2025 | Dec. 31, 2024 | |
The 2021 Equity Incentive Plan | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Shares authorized (in shares) | 2,275,727 | 2,275,727 | ||||||
Term of plan (in years) | 10 years | |||||||
Shares available for issuance (in shares) | 1,788,933 | 1,788,933 | ||||||
Number of shares of common stock upon vesting for each RSU (in shares) | 1 | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Shares outstanding (in shares) | 139,499 | 106,820 | 139,499 | 106,820 | ||||
Payment of dividend equivalent | $ 83,000 | $ 35,300 | ||||||
Unearned dividend equivalents | $ 95,181 | $ 61,468 | 95,181 | 61,468 | ||||
Amortization of compensation costs | 200,000 | $ 200,000 | 400,000 | $ 300,000 | ||||
Unrecognized compensation cost | $ 1,000,000 | $ 1,000,000 | ||||||
Weighted average amortization period (in years) | 1 year 3 months 18 days | |||||||
Shares vested in period (in shares) | 40,610 | 18,318 | ||||||
Performance Stock Units (PSU) | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Shares vested in period (in shares) | 0 | 0 | ||||||
Performance Stock Units (PSU) | The 2021 Equity Incentive Plan | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Shares outstanding (in shares) | 159,522 | 121,858 | 159,522 | 121,858 | ||||
Unearned dividend equivalents | $ 379,679 | $ 212,021 | $ 379,679 | $ 212,021 | ||||
Amortization of compensation costs | 200,000 | $ 200,000 | 400,000 | $ 400,000 | ||||
Unrecognized compensation cost | $ 1,400,000 | $ 1,400,000 | ||||||
Weighted average amortization period (in years) | 2 years | |||||||
Performance Stock Units (PSU) | The 2021 Equity Incentive Plan | Forecast | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Shares vested in period (in shares) | 56,522 | 55,017 | 47,983 | |||||
Fair value (in dollars per share) | $ 17.30 | $ 11.23 | $ 24 | |||||
Performance Stock Units (PSU) | The 2021 Equity Incentive Plan | Minimum | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Shares issued (in shares) | 0 | 0 | ||||||
Performance Stock Units (PSU) | The 2021 Equity Incentive Plan | Maximum | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Shares issued (in shares) | 319,044 | 319,044 | ||||||
Nonqualified Stock Options | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Shares issued (in shares) | 791,790 | |||||||
Exercise price (in dollars per share) | $ 24 |
Stock Based Compensation - Unve
Stock Based Compensation - Unvested Restricted Stock Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Number of Unvested Shares of RSUs | ||
Beginning balance (in shares) | 63,582 | 29,255 |
Granted (in shares) | 49,014 | 59,031 |
Forfeited (in shares) | (740) | 0 |
Vested (in shares) | (40,610) | (18,318) |
Ending balance (in shares) | 71,246 | 69,968 |
Weighted Average Grant Date Fair Value Per Share | ||
Beginning balance (in dollars per share) | $ 13.92 | $ 22.89 |
Granted (in dollars per share) | 17.40 | 12.87 |
Forfeited (in dollars per share) | 15.19 | 0 |
Vested (in dollars per share) | 12.64 | 20.14 |
Ending balance (in dollars per share) | $ 17.03 | $ 15.15 |
Shares withheld (in shares) | 2,846 |
Stock Based Compensation - Vest
Stock Based Compensation - Vested Restricted Stock Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Number of Vested Shares of RSUs | ||
Beginning balance (in shares) | 36,852 | 18,534 |
Vested (in shares) | 40,610 | 18,318 |
Converted (in shares) | (6,363) | 0 |
Shares Withheld (in shares) | (2,846) | 0 |
Ending balance (in shares) | 68,253 | 36,852 |
Weighted Average Grant Date Fair Value Per Share | ||
Beginning balance (in dollars per share) | $ 22.05 | $ 23.93 |
Vested (in dollars per share) | 12.64 | 20.14 |
Converted (in dollars per share) | 13.38 | 0 |
Shares Withheld (in dollars per share) | 13.38 | 0 |
Ending balance (in dollars per share) | $ 17.62 | $ 22.05 |
Shares withheld (in shares) | 2,846 |
Stock Based Compensation - Un_2
Stock Based Compensation - Unvested Performance Stock Activity (Details) - Performance Stock Units (PSU) - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Number of Unvested Shares of PSUs | ||
Beginning balance (in shares) | 103,000 | 66,841 |
Granted (in shares) | 56,522 | 55,017 |
Ending balance (in shares) | 159,522 | 121,858 |
Weighted Average Grant Date Fair Value Per Share | ||
Beginning balance (in dollars per share) | $ 17.18 | $ 24.04 |
Granted (in dollars per share) | 17.30 | 11.23 |
Ending balance (in dollars per share) | $ 17.22 | $ 18.26 |
Warrants (Details)
Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2024 | Oct. 27, 2023 | Jun. 30, 2023 | Mar. 17, 2021 |
Revolutionary Clinics | ||||
Class of Warrant or Right [Line Items] | ||||
Investment in warrants | $ 522 | |||
Merger with Target | Warrants Issued in Connection with the Merger | ||||
Class of Warrant or Right [Line Items] | ||||
Number of warrants to purchase (in shares) | 602,392 | |||
Purchase price of warrant (in dollars per share) | $ 24 | |||
Class of warrant or right, outstanding (in shares) | 602,392 | 602,392 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 10, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Sep. 15, 2023 | Nov. 07, 2022 | |
Preferred Units [Line Items] | ||||||||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Preferred stock outstanding (in shares) | 0 | 0 | 0 | |||||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 | |||||
Common stock, shares issued (in shares) | 20,509,883 | 20,509,883 | 20,503,520 | |||||
Common stock, shares outstanding (in shares) | 20,509,883 | 20,509,883 | 20,503,520 | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Stock repurchase program authorized amount | $ 10,000 | $ 10,000 | ||||||
Shares repurchased (in shares) | 0 | 105,679 | ||||||
Average cost per share (in dollars per share) | $ 12.62 | |||||||
Repurchase of common stock | $ 712 | $ 1,334 | ||||||
Remaining availability under the program | $ 8,200 | $ 8,200 | ||||||
At The Market Offering | ||||||||
Preferred Units [Line Items] | ||||||||
Sale of stock, price per share (in dollars per share) | $ 0.01 | |||||||
Maximum consideration to be received on sale | $ 50,000 | |||||||
Commission rate (as percent) | 2% | |||||||
Number of shares issued in transaction (in shares) | 0 |
Stockholders' Equity - Common D
Stockholders' Equity - Common Dividends, Dividend Equivalents and Distributions Declared (Details) - $ / shares | 6 Months Ended | |||||
Jun. 12, 2024 | Mar. 08, 2024 | Jun. 15, 2023 | Mar. 07, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | ||||||
Amount per Share/Unit | $ 0.43 | $ 0.41 | $ 0.39 | $ 0.39 | $ 0.84 | $ 0.78 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Net Income Attributable to Noncontrolling Interests | $ 6,796 | $ 5,797 | $ 13,665 | $ 11,665 |
Add: Net Income Attributable to Noncontrolling Interest | 122 | 101 | 247 | 203 |
Net Income | $ 6,918 | $ 5,898 | $ 13,912 | $ 11,868 |
Denominator: | ||||
Weighted Average Shares of Common Stock Outstanding - Basic (in shares) | 20,555,362 | 21,369,489 | 20,548,601 | 21,396,330 |
Weighted Average Shares of Common Stock - Diluted (in shares) | 20,951,379 | 21,743,071 | 20,946,805 | 21,769,912 |
Earnings Per Share - Basic | ||||
Net Income Attributable to Common Stockholders, Basic (in dollars per share) | $ 0.33 | $ 0.27 | $ 0.66 | $ 0.55 |
Earnings Per Share - Diluted | ||||
Net Income Attributable to Common Stockholder, Diluted (in dollars per share) | $ 0.33 | $ 0.27 | $ 0.66 | $ 0.55 |
Employee Stock Option | ||||
Earnings Per Share - Diluted | ||||
Antidilutive shares (in shares) | 791,790 | 791,790 | ||
Warrant | ||||
Earnings Per Share - Diluted | ||||
Antidilutive shares (in shares) | 615,838 | 615,838 | ||
Performance Stock Units (PSU) | ||||
Earnings Per Share - Diluted | ||||
Antidilutive shares (in shares) | 159,522 | 121,858 | 159,522 | 121,858 |
Restricted Stock Units (RSUs) | ||||
Denominator: | ||||
Dilutive Effect of Unvested Restricted Stock Units (in shares) | 22,435 | 0 | 24,622 | 0 |
OP Units | ||||
Denominator: | ||||
Dilutive Effect of OP Units (in shares) | 373,582 | 373,582 | 373,582 | 373,582 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 |
Carrying Value | |||
Note Receivable | $ 4,859,000 | $ 4,833,000 | |
Revolving Credit Facility | 7,600,000 | 1,000,000 | |
Loan Payable | 0 | 1,000,000 | |
Estimated Fair Value | |||
Financing receivable, before allowance for credit loss | 5,000,000 | 5,000,000 | |
Allowance for credit loss | 140,600 | $ 152,400 | 166,700 |
Fair Value, Inputs, Level 3 | |||
Estimated Fair Value | |||
Note Receivable | 4,741,000 | 4,748,000 | |
Fair Value, Inputs, Level 2 | |||
Estimated Fair Value | |||
Revolving Credit Facility | 7,338,000 | 968,000 | |
Loan Payable | $ 0 | $ 992,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2024 USD ($) lease |
Commitments and Contingencies Disclosure [Abstract] | |
Unfunded commitments | $ | $ 15.8 |
Number of leases | lease | 1 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Aug. 08, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Subsequent Event [Line Items] | ||||
Funded commitments | $ 11,371 | $ 2,996 | $ 14,434 | |
Cultivation Facility In Arizona And Pennsylvania | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Funded commitments | $ 1,200 |