Item 2. Properties
Item 2. Properties
At December 31, 2025, we owned 760 service-focused retail net lease properties and 94 hotels. The following tables summarize certain information about our properties as of December 31, 2025 (dollars in thousands):
Net Lease Hotels All Properties
Location of
Properties Number of
Properties Undepreciated Carrying Value Depreciated Carrying Value Number of
Properties Undepreciated Carrying Value Depreciated Carrying Value Total Number of Properties Total Undepreciated Carrying Value Total Depreciated Carrying Value
Held and Used:
United States:
Alabama 33 $ 103,595 $ 74,208 — $ — $ — 33 $ 103,595 $ 74,208
Alaska 1 4,209 2,124 — — — 1 4,209 2,124
Arizona 25 178,282 124,943 4 78,836 54,741 29 257,118 179,684
Arkansas 21 89,090 62,327 — — — 21 89,090 62,327
California 22 206,531 163,450 19 783,908 524,851 41 990,439 688,301
Colorado 9 89,154 69,604 2 113,626 81,193 11 202,780 150,797
Connecticut 3 16,774 8,645 — — — 3 16,774 8,645
Delaware — — — — — — — — —
Florida 48 196,608 148,510 7 404,134 324,265 55 600,742 472,775
Georgia 70 201,010 146,591 6 249,492 173,735 76 450,502 320,326
Hawaii — — — 1 126,098 62,589 1 126,098 62,589
Idaho 2 16,585 12,442 — — — 2 16,585 12,442
Illinois 54 216,082 159,878 4 303,173 222,983 58 519,255 382,861
Indiana 40 177,162 125,089 1 16,825 11,053 41 193,987 136,142
Iowa 7 21,388 16,352 — — — 7 21,388 16,352
Kansas 5 34,301 26,943 1 16,547 10,435 6 50,848 37,378
Kentucky 13 54,193 36,208 — — — 13 54,193 36,208
Louisiana 12 88,160 59,155 1 194,484 136,690 13 282,644 195,845
Maryland 8 49,447 31,857 1 57,763 35,697 9 107,210 67,554
Massachusetts — — — 2 179,411 132,315 2 179,411 132,315
Michigan 51 95,372 61,569 1 15,473 10,101 52 110,845 71,670
Minnesota 10 62,990 46,361 1 77,486 63,248 11 140,476 109,609
Mississippi 9 29,072 21,065 — — — 9 29,072 21,065
Missouri 24 87,088 57,432 1 117,240 89,153 25 204,328 146,585
Nebraska 5 23,277 12,428 — — — 5 23,277 12,428
Nevada 6 137,591 94,274 1 30,495 19,707 7 168,086 113,981
New Hampshire 1 4,772 2,725 — — — 1 4,772 2,725
New Jersey 3 72,074 47,758 2 52,690 31,454 5 124,764 79,212
New Mexico 17 94,610 57,968 — — — 17 94,610 57,968
New York 8 42,095 24,880 1 91,768 62,612 9 133,863 87,492
North Carolina 15 49,948 35,811 2 64,792 48,736 17 114,740 84,547
North Dakota 1 3,476 2,487 — — — 1 3,476 2,487
Ohio 38 228,158 155,737 2 92,113 66,698 40 320,271 222,435
Oklahoma 12 65,001 49,596 — — — 12 65,001 49,596
Oregon 7 71,052 56,746 1 110,850 84,625 8 181,902 141,371
Pennsylvania 27 138,938 94,553 1 68,783 38,825 28 207,721 133,378
Rhode Island — — — 1 15,918 5,687 1 15,918 5,687
South Carolina 16 82,156 56,935 1 77,335 54,807 17 159,491 111,742
Tennessee 35 104,786 74,664 3 98,019 37,902 38 202,805 112,566
Texas 57 354,396 245,600 5 144,178 83,297 62 498,574 328,897
Utah 3 12,122 7,116 1 68,346 32,025 4 80,468 39,141
Virginia 18 67,416 46,823 4 74,784 40,067 22 142,200 86,890
Washington 4 19,740 15,446 3 132,508 91,748 7 152,248 107,194
West Virginia 5 12,778 8,734 — — — 5 12,778 8,734
Wisconsin 8 15,960 11,906 — — — 8 15,960 11,906
Wyoming 6 53,183 31,033 — — — 6 53,183 31,033
759 3,670,622 2,587,973 80 3,857,075 2,631,239 839 7,527,697 5,219,212
Washington, DC — — — 1 152,617 130,488 1 152,617 130,488
Ontario, Canada — — — 2 57,867 30,707 2 57,867 30,707
Puerto Rico — — — 1 210,851 125,659 1 210,851 125,659
— — — 4 421,335 286,854 4 421,335 286,854
Total 759 $ 3,670,622 $ 2,587,973 84 $ 4,278,410 $ 2,918,093 843 $ 7,949,032 $ 5,506,066
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Table of Contents
Net Lease Hotels All Properties
Location of
Properties Number of
Properties Undepreciated Carrying Value Depreciated Carrying Value Number of
Properties Undepreciated Carrying Value Depreciated Carrying Value Total Number of Properties Total Undepreciated Carrying Value Total Depreciated Carrying Value
Held For Sale:
Arizona — — — 1 13,322 3,677 1 13,322 3,677
Delaware — — — 1 15,064 11,660 1 15,064 11,660
Georgia — — — 1 8,256 4,906 1 8,256 4,906
Massachusetts — — — 2 39,104 22,896 2 39,104 22,896
Michigan — — — 1 14,383 7,607 1 14,383 7,607
New Jersey — — — 2 34,935 16,771 2 34,935 16,771
Ohio — — — 1 16,906 14,076 1 16,906 14,076
Tennessee 1 1,067 573 — — — 1 1,067 573
West Virginia — — — 1 10,714 5,026 1 10,714 5,026
Total 1 $ 1,067 $ 573 10 $ 152,684 $ 86,619 11 $ 153,751 $ 87,192
760 $ 3,671,689 $ 2,588,546 94 $ 4,431,094 $ 3,004,712 854 $ 8,102,783 $ 5,593,258
As of December 31, 2025, 314 of our net lease properties with an aggregate undepreciated carrying value of $751.5 million were encumbered by mortgage notes with an aggregate principal balance of $649.7 million, 70 of our net lease travel center properties with an aggregate undepreciated carrying value of $739.2 million secured our $1.0 billion senior secured notes, and 36 of our travel center properties with an aggregate undepreciated carrying value of $413.9 million secured our $580.2 million in aggregate principal amount at maturity of zero coupon senior secured notes. In addition, 55 properties, including 38 net lease properties and 17 hotels, with an aggregate undepreciated carrying value of $890.4 million secured our revolving credit facility. For further information regarding our mortgage notes, senior secured notes, and revolving credit facility, see Note 6 to our consolidated financial statements included in Part IV, Item 15 of this Annual Report on Form 10-K.
At December 31, 2025, 13 of our net lease properties and eight of our hotels were on land we leased partially or entirely from unrelated third parties. The average remaining term of the ground leases (including renewal options) for these net lease and hotel properties is approximately 18 years (range of six years to 39 years) and 37 years (range of nine years to 62 years), respectively. Ground rent payable under the ground leases for our net lease properties is generally a fixed amount, averaging $519 thousand per year. Ground rent payable under three of the hotel ground leases is generally calculated as a percentage of hotel revenues. Seven of the eight hotel ground leases require annual minimum rents averaging $365 thousand per year; future rent under one ground lease has been prepaid. Pursuant to the terms of our leases and management agreements, payments of ground lease obligations are generally made by our tenants and hotel managers. However, if a tenant or a hotel manager does not perform obligations under a ground lease or elects not to renew any ground lease, we might have to perform obligations under the ground lease or renew the ground lease in order to protect our investment in the affected property. Any pledge, sale or transfer of our interests in a ground lease may require the consent of the applicable ground lessor and its lenders.
At December 31, 2025, the aggregate depreciated carrying value of our properties subject to ground leases was as follows (dollars in thousands):
13 net lease (1)
$ 43,522
Eight hotels (2)
143,565
Total $ 187,087
(1) Three of these net lease properties with a depreciated carrying value totaling $21,247 are partially on land we lease from unrelated third parties. The leased land is generally used for additional parking or storm water runoff; however, certain building structures for one of these three net lease properties are located on leased land. We believe these three net lease properties would be operable without the leased land, although we would have to remove the part of the building structure that is located on the leased land and might replace that structure with a new building on land we own.
(2) Two of these hotels with a depreciated carrying value totaling $54,056 are partially on land we lease from unrelated third parties. The leased land is generally used for parking. We believe these two hotels would be operable without the leased land.