Real Estate Activity |
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| Real Estate Activity | Real Estate Activity As of March 31, 2026 and December 31, 2025, we owned the following land and real estate (in thousands, except number of acres):
(1)Real estate assigned through the Declaration of Trust.
Land Sale
During the three months ended March 31, 2026, we entered into an arrangement with a developer of a power generation plant to support data center operations. In conjunction with this arrangement, we sold land for aggregate consideration of $42.5 million. The consideration consisted of a nominal cash payment received at closing and annual payments due to us through 2046.
This arrangement also provides for a put option held by the developer and a call option held by us regarding our repurchase of the land if certain development milestones are not achieved. Additionally, we entered into a separate agreement to supply water to the project.
We recognized land sale revenue of $20.9 million at closing and recorded a financing receivable for the deferred consideration. The financing receivable was recorded at its present value of $20.9 million, which represents the contractual payments of $42.4 million discounted at an effective interest rate of 7.5%.
As of March 31, 2026, the carrying value of the financing receivable was $21.0 million, of which $1.0 million is included in current assets on the condensed consolidated balance sheets. Interest income recognized on the financing receivable was $0.1 million for the three months ended March 31, 2026.
There were no land sales for the three months ended March 31, 2025.
Land Acquisitions
There were no land acquisitions for the three months ended March 31, 2026 or 2025.
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