What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2021-11-01 compared with 2021-08-09 · 137 added, 132 removed, 422 unchanged (39% of the section changed)

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All references to annualized generally accepted accounting principles (“GAAP”) rent are rents that each tenant pays in accordance with the terms of its respective lease reported evenly over the non-cancelable term of the lease.

As of August 9, 2021:

As of November 1, 2021:

• we owned 127 properties totaling 15.7 million square feet of rentable space, located in 27 states;

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Business Environment

In March 2020, the World Health Organization characterized COVID-19 as a pandemic, and widespread infection continues in the United States and many parts of the world.

In March 2020, the World Health Organization characterized COVID-19 as a pandemic, and infection continues in the United States and many parts of the world.

The rapid spread of the coronavirus identified as COVID-19 resulted in authorities throughout the United States and the world implementing widespread measures attempting to contain the spread and impact of COVID-19, such as travel bans and restrictions, quarantines, shelter in place orders, the promotion of social distancing and limitations on business activity, including business closures.

These measures and the pandemic have caused a significant national and global economic downturn, disrupted business operations, including those of certain of our tenants, significantly increased unemployment and underemployment levels, and are expected to have an adverse effect on office demand for space in the short term, at a minimum.

These measures and the pandemic have caused a significant national and global economic downturn, disrupted business operations, including those of certain of our tenants, increased unemployment and underemployment levels, and are expected to have an adverse effect on office demand for space in the short term, at a minimum.

The demand for industrial space has continued due to the continuing growth of e-commerce and appears to be partially counterbalancing the adverse effects of COVID-19 on the commercial real estate industry.

Industrial absorption increased on a nominal basis in 2020, compared to 2019, according to research reports and continues to be strong through the second quarter of 2021.

Construction activity for the industrial sector remains strong as at year end 2020 there was 327 million square feet under construction with 38% of the space pre-leased.

However, the rising cost of construction materials and product delivery delays caused by supply chain disruption, and the apparent labor shortage we are facing nationally, have resulting in inflation and higher costs for both office and industrial construction projects.

Industrial absorption increased on a nominal basis in 2020, compared to 2019, according to research reports and continues to be strong through the third quarter of 2021.

Construction activity for the industrial sector remains strong as third quarter 2021 estimates have approximately $500.0 million of properties under construction with over 30% of that space pre-leased.

Investment sales volume across all product types, but especially office and retail, in recent months is lower year over year, as compared to 2020, as a direct result of COVID-19.

Research reports also report that the office sector experienced over 100 million square feet of negative absorption during 2020, and an additional approximately 35 million square feet of negative absorption during the first quarter of 2021.

Research reports also report that the office sector experienced negative absorption for each of the first three quarters of 2021 and office space available for sublease has placed downward pressure on office rental rates.

Interest rates remain volatile in response to competing concerns about inflationary pressures and the spread and effect of COVID-19 variants.

However, they remain low by historical standards.

Since increasing by 91% during the first quarter of the year, the yield on the 10 year U.S.

Treasury has declined to 1.30%, representing a smaller year-to-date increase of 37%.

After completing the 11th year of the current cycle, some national research firms had been estimating that both pricing and investment sales volume would be peaking and the national economy would be slowing in the near term, prior to the rapid spread of COVID-19.

Year-end 2020 research reports reflect the investment sales volume is lower than 2020, but sales prices for most product types have increased.

The yield on the 10 year US Treasury Note has increased by 77% since the beginning of the year to its current 1.65%.

Since the beginning of the second quarter, it has ranged from 1.19% July and August to 1.73% at the beginning of April, a 54 basis point, 45% swing.

It has increased 39% since the beginning of August alone.

Despite this volatility, interest rates remain low by historical standards.

Global recessionary conditions may occur over the next 12-24 months as a direct result of the COVID-19 pandemic, although the actual impact and duration are unknown.

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Any of these events could materially adversely impact our business, financial condition, liquidity, results of operations, funds from operations or prospects.

As of August 9, 2021 , we have collected 100% of all outstanding June 2021 cash base rent obligations and approxima tely 99% of July 2021 cash base rent obligations.

As of November 1, 2021, we have collected 100% of all outstanding September 2021 cash base rent obligations and approxima tely 100% of October 2021 cash base rent obligations.

We have received and may receive additional rent modification requests in future periods from our tenants.

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We amended our Credit Facility in 2019 to increase our borrowing capacity and extend its maturity date.

In addition, on February 11, 2021, we added a new $65.0 million term loan component, inclusive of a $15.0 million delayed funding component.

In addition, on February 11, 2021, we added a new $65.0 million term loan component.

We have had numerous conversations with lenders and credit continues to be available for well capitalized borrowers.

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We continue to focus on re-leasing vacant space, renewing upcoming lease expirations, re-financing upcoming loan maturities, and acquiring additional properties with associated long-term leases.

Currently, we have five partially vacant buildings and three fully vacant buildings.

Our available vacant space at June 30, 2021 represents 3.5% of our total square footage and the annual carrying costs on the vacant space, including real estate taxes and property operating expenses, are approximately $4.2 million.

Currently, we have six partially vacant buildings and two fully vacant buildings.

Our available vacant space at September 30, 2021 represents 2.3% of our total square footage and the annual carrying costs on the vacant space, including real estate taxes and property operating expenses, are approximately $2.6 million.

We continue to actively seek new tenants for these properties.

Our ability to make new investments is highly dependent upon our ability to procure financing.

Our principal sources of financing generally include the issuance of equity securities, long-term mortgage loans secured by properties, borrowings under our $100.0 million senior unsecured revolving credit facility (“Revolver”), with KeyBank National Association (serving as a revolving lender, a letter of credit issuer and an administrative agent), which matures in July 2023, our $160.0 million term loan facility (“Term Loan A”), which matures in July 2024 and our $65.0 million term loan facility (“Term Loan B”), with a $15.0 million delayed draw component, which matures in February 2026.

We refer to the Revolver, Term Loan A and Term Loan B collectively herein as the Credit Facility.

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Sale Activity

During the six months ended June 30, 2021, we continued to execute our capital recycling program, whereby we sold properties outside of our core markets and redeployed proceeds to either fund property acquisitions located in our target secondary growth markets or repaid outstanding debt.

During the nine months ended September 30, 2021, we continued to execute our capital recycling program, whereby we sold properties outside of our core markets and redeployed proceeds to either fund property acquisitions located in our target secondary growth markets or repaid outstanding debt.

We expect to continue to execute our capital recycling plan and sell non-core properties as reasonable disposition opportunities become available.

During the six months ended June 30, 2021, we sold two non-core properties, located in Rancho Cordova, California and Champaign, Illinois, which are summarized in the table below (dollars in thousands):

During the nine months ended September 30, 2021, we sold two non-core properties, located in Rancho Cordova, California and Champaign, Illinois, which are summarized in the table below (dollars in thousands):

Aggregate Square Footage Sold Aggregate Sales Price Aggregate Sales Costs Aggregate loss on Sale of Real Estate, net

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Acquisition Activity

During the six months ended June 30, 2021, we acquired two industrial properties located in Findlay, Ohio and Baytown, Texas, which are summarized below (dollars in thousands):

Aggregate Square Footage Weighted Average Remaining Lease Term Aggregate Purchase Price Aggregate Capitalized Acquisition Expenses Aggregate Annualized GAAP Fixed Lease Payments Aggregate Debt Issued

During the nine months ended September 30, 2021, we acquired eight industrial properties located in Findlay, Ohio, Baytown, Texas, Pacific, Missouri, and Peru, Illinois, which are summarized below (dollars in thousands):

Aggregate Square Footage Weighted Average Remaining Lease Term at Time of Acquisition Aggregate Purchase Price Aggregate Capitalized Acquisition Expenses Aggregate Annualized GAAP Fixed Lease Payments Aggregate Debt Issued

367,716 15.5 years $ 46,225 $ 370 $ 3,513 $ 5,500

On July 21, 2021, we purchased a four property, 80,604 square foot industrial portfolio in Pacific, Missouri, for $22.1 million.

These properties are fully leased to one tenant on a triple net basis with a remaining lease term of 17.4 years.

Leasing Activity

During and subsequent to the six months ended June 30, 2021, we executed twelve leases, which are summarized below (dollars in thousands):

During and subsequent to the nine months ended September 30, 2021, we executed 14 leases, which are summarized below (dollars in thousands):

Aggregate Square Footage Weighted Average Remaining Lease Term Aggregate Annualized GAAP Fixed Lease Payments Aggregate Tenant Improvement Aggregate Leasing Commissions

1,486,870 7.5 years $ 13,081 $ 4,408 $ 1,845

During the six months ended June 30, 2021, we had seven lease contractions or terminations, which are summarized below (dollars in thousands):

Aggregate Square Footage Reduced Aggregate Square Footage Remaining Aggregate Accelerated Rent Aggregate Accelerated Rent Recognized through June 30, 2021

During the nine months ended September 30, 2021, we had eight lease contractions or terminations, which are summarized below (dollars in thousands):

Aggregate Square Footage Reduced Aggregate Square Footage Remaining Aggregate Accelerated Rent Aggregate Accelerated Rent Recognized through September 30, 2021

497,369 (1) 26,220 $ 2,865 $ 1,977

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Financing Activity

During the six months ended June 30, 2021, we repaid one mortgage, collateralized by one property, which is summarized in the table below (dollars in thousands):

During the nine months ended September 30, 2021, we repaid one mortgage, collateralized by one property, which is summarized in the table below (dollars in thousands):

Fixed Rate Debt Repaid Interest Rate on Fixed Rate Debt Repaid

$ 4,470 4.90%

During the six months ended June 30, 2021, we issued one mortgage, collateralized by one property, which is summarized below (dollars in thousands):

On October 26, 2021, we repaid $3.2 million of fixed rate debt, collateralized by one property, at an interest rate of 4.92%.

During the nine months ended September 30, 2021, we issued one mortgage, collateralized by one property, which is summarized below (dollars in thousands):

Fixed Rate Debt Issued Interest Rate on Fixed Rate Debt

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(1) On January 22, 2021, we issued $5.5 million of floating rate debt swapped to fixed debt of 3.24% in connection with one property acquisition.

Legal Settlement

In August 2021, we reached separate legal settlements through which we recognized $2.4 million, net, recorded in other income on the condensed consolidated statement of operations and comprehensive income.

Equity Activities

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Common Stock ATM Program

During the six months ended June 30, 2021, we sold 1.0 million shares of common stock, raising $19.4 million in net proceeds under our At-the-Market Equity Offering Sales Agreements with sales agents Robert W.

During the nine months ended September 30, 2021, we sold 1.2 million shares of common stock, raising $24.1 million in net proceeds under our At-the-Market Equity Offering Sales Agreements with sales agents Robert W.

Incorporated (“Baird”), Goldman Sachs & Co.

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(“Fifth Third”), pursuant to which we may sell shares of our common stock in an aggregate offering price of up to $250.0 million (the “Common Stock ATM Program”).

As of June 30, 2021, we had remaining capacity to sell up to $164.3 million of common stock under the Common Stock ATM Program.

As of September 30, 2021, we had remaining capacity to sell up to $159.4 million of common stock under the Common Stock ATM Program.

Series D Preferred Stock Redemption

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Bancorp Investments, Inc., pursuant to which we may, from time to time, offer to sell shares of our Series E Preferred Stock in an aggregate offering price of up to $100.0 million.

We did not sell any shares of our Series E Preferred Stock under the agreement during the six months ended June 30, 2021.

As of June 30, 2021, we had remaining capacity to sell up to $92.8 million of Series E Preferred Stock under the Series E Preferred Stock Sales Agreement.

We did not sell any shares of our Series E Preferred Stock under the agreement during the nine months ended September 30, 2021.

As of September 30, 2021, we had remaining capacity to sell up to $92.8 million of Series E Preferred Stock under the Series E Preferred Stock Sales Agreement.

Universal Shelf Registration Statements

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The 2019 Universal Shelf allows us to issue up to $500.0 million of securities.

As of June 30, 2021, we had the ability to issue up to $357.6 million of securities under the 2019 Universal Shelf.

As of September 30, 2021, we had the ability to issue up to $352.7 million of securities under the 2019 Universal Shelf.

On January 29, 2020, we filed an additional universal registration statement on Form S-3, File No.

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Of the $800.0 million of available capacity under our 2020 Universal Shelf, approximately $636.5 million is reserved for the sale of our 6.00% Series F Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series F Preferred Stock”).

As of June 30, 2021, we had the ability to issue up to $696.0 million of securities under the 2020 Universal Shelf.

As of September 30, 2021, we had the ability to issue up to $691.7 million of securities under the 2020 Universal Shelf.

Series F Preferred Stock

On February 20, 2020, we filed with the Maryland Department of Assessments and Taxation (“SDAT”) Articles Supplementary (i) setting forth the rights, preferences and terms of the Series F Preferred Stock and (ii) reclassifying and designating 26,000,000 shares of our authorized and unissued shares of Common Stock as shares of Series F Preferred Stock.

On February 20, 2020, we filed with the SDAT Articles Supplementary (i) setting forth the rights, preferences and terms of the Series F Preferred Stock and (ii) reclassifying and designating 26,000,000 shares of our authorized and unissued shares of Common Stock as shares of Series F Preferred Stock.

The reclassification decreased the number of shares classified as common stock from 86,290,000 shares immediately prior to the reclassification to 60,290,000 shares immediately after the reclassification.

We sold 46,049 shares of our Series F Preferred Stock, raising $1.0 million in net proceeds during the three and six months ended June 30, 2021.

As of June 30, 2021, we had remaining capacity to sell up to $632.5 million of Series F Preferred Stock.

We sold 217,422 shares of our Series F Preferred Stock, raising $4.9 million in net proceeds during the three and nine months ended September 30, 2021.

As of September 30, 2021, we had remaining capacity to sell up to $628.2 million of Series F Preferred Stock.

Non-controlling Interest in Operating Partnership

As of June 30, 2021 and December 31, 2020, we owned approximately 99.3% and 98.6%, re spectively, of the outstanding operating partnership units in the Operating Partnership (“OP Units”).

During the six months ended June 30, 2021, we redeemed 246,039 OP Units for an equivalent amount of common stock.

As of June 30, 2021 and December 31, 2020, there were 256,994 and 503,033 outstanding OP Units held by holders who do not control the Operating Partnership (“Non-controlling OP Unitholders”), respectively.

As of September 30, 2021 and December 31, 2020, we owned approximately 99.3% and 98.6%, re spectively, of the outstanding operating partnership units in the Operating Partnership (“OP Units”).

During the nine months ended September 30, 2021, we redeemed 246,039 OP Units for an equivalent amount of common stock.

As of September 30, 2021 and December 31, 2020, there were 256,994 and 503,033 outstanding OP Units held by holders who do not control the Operating Partnership (“Non-controlling OP Unitholders”), respectively.

Diversity of Our Portfolio

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By diversifying our portfolio, our Adviser intends to reduce the adverse effect on our portfolio of a single under-performing investment or a downturn in any particular industry or geographic market.

For the six months ended June 30, 2021, our largest tenant comprised only 2.8% of total lease revenue.

The table below reflects the breakdown of our total lease revenue by tenant industry classification for the three and six months ended June 30, 2021 and 2020 (dollars in thousands):

For the three months ended June 30, For the six months ended June 30,

For the nine months ended September 30, 2021, our largest tenant comprised only 2.8% of total lease revenue.

The table below reflects the breakdown of our total lease revenue by tenant industry classification for the three and nine months ended September 30, 2021 and 2020 (dollars in thousands):

For the three months ended September 30, For the nine months ended September 30,

2021 2020 2021 2020

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Buildings and Real Estate 2,331 6.8 2,401 7.2 6,968 6.8 6,794 6.8

Personal, Food & Miscellaneous Services 1,538 4.7 1,505 4.5 4,014 5.9 3,005 4.5

Diversified/Conglomerate Manufacturing 1,866 5.4 1,694 5.1 5,748 5.6 4,562 4.5

Personal, Food & Miscellaneous Services 1,540 4.5 1,507 4.5 5,552 5.4 4,513 4.5

Information Technology 1,673 4.9 1,754 5.3 5,011 4.9 5,193 5.2

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Machinery 970 2.8 934 2.8 2,991 2.9 3,235 3.2

Personal & Non-Durable Consumer Products 617 1.8 613 1.8 1,235 1.8 1,224 1.8

Containers, Packaging & Glass 777 2.3 338 1.0 1,985 1.9 1,412 1.4

Personal & Non-Durable Consumer Products 617 1.8 614 1.9 1,852 1.8 1,838 1.8

Childcare 573 1.7 557 1.7 1,718 1.7 1,671 1.7

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Total $ 34,334 100.0 % $ 33,142 100.0 % $ 102,381 100.0 % $ 100,287 100.0 %

The tables below reflect the breakdown of total lease revenue by state for the three and six months ended June 30, 2021 and 2020 (dollars in thousands):

State Lease Revenue for the three months ended June 30, 2021 Percentage of Lease Revenue Number of Leases for the three months ended June 30, 2021 Lease Revenue for the three months ended June 30, 2020 Percentage of Lease Revenue Number of Leases for the three months ended June 30, 2020

The tables below reflect the breakdown of total lease revenue by state for the three and nine months ended September 30, 2021 and 2020 (dollars in thousands):

State Lease Revenue for the three months ended September 30, 2021 Percentage of Lease Revenue Number of Leases for the three months ended September 30, 2021 Lease Revenue for the three months ended September 30, 2020 Percentage of Lease Revenue Number of Leases for the three months ended September 30, 2020

Florida $ 4,191 12.2 % 10 $ 4,120 12.4 % 11

Ohio 3,854 11.5 15 3,488 10.4 15

Pennsylvania 3,807 11.1 10 3,491 10.5 9

Texas 3,801 11.1 15 4,847 14.6 15

Ohio 3,671 10.7 15 3,429 10.3 14

Georgia 2,757 8.0 9 2,684 8.1 9

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Alabama 1,634 4.8 5 897 2.7 3

North Carolina 1,629 4.9 7 1,551 4.6 8

Michigan 1,609 4.7 6 1,573 4.7 6

North Carolina 1,604 4.7 7 1,546 4.7 8

South Carolina 1,408 4.1 2 1,230 3.7 2

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Total $ 34,334 100.0 % 131 $ 33,142 100.0 % 128

State Lease Revenue for the six months ended June 30, 2021 Percentage of Lease Revenue Number of Leases for the six months ended June 30, 2021 Lease Revenue for the six months ended June 30, 2020 Percentage of Lease Revenue Number of Leases for the six months ended June 30, 2020

State Lease Revenue for the nine months ended September 30, 2021 Percentage of Lease Revenue Number of Leases for the nine months ended September 30, 2021 Lease Revenue for the nine months ended September 30, 2020 Percentage of Lease Revenue Number of Leases for the nine months ended September 30, 2020

Florida $ 12,614 12.3 % 10 $ 12,549 12.5 % 11

Ohio 7,615 11.2 15 7,140 10.6 15

Pennsylvania 11,409 11.1 10 10,272 10.2 9

Ohio 11,284 11.0 15 10,569 10.5 14

Texas 11,232 11.0 15 15,081 15.0 15

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Cutlip and Mr.

Gerson, all of our executive officers and all of our directors, serve as either directors or executive officers, or both, of Gladstone Land Corporation.

Gerson, all of our executive officers and all of our directors, serve as either directors or executive officers,

or both, of Gladstone Land Corporation.

Cutlip and Mr.

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At the end of the fiscal year, if this number is positive, then the capital gain fee payable for such time period shall equal 15.0% of such amount.

No capital gain fee was recognized during the three and six months ended June 30, 2021 or 2020.

No capital gain fee was recognized during the three and nine months ended September 30, 2021 or 2020.

Termination Fee

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Securities and Exchange Commission (the “SEC”) on February 16, 2021 (our “2020 Form 10-K”).

There were no material changes to our critical accounting policies or estimates during the six months ended June 30, 2021.

There were no material changes to our critical accounting policies or estimates during the nine months ended September 30, 2021.

Results of Operations

The weighted average yield on our total portfolio, which was 8.0% and 8.3% as of June 30, 2021 and 2020, respectively, is calculated by taking the annualized straight-line rents plus operating expense recoveries, reflected as lease revenue on our condensed consolidated statements of operations and other comprehensive income, less property operating expenses, of each acquisition since inception, as a percentage of the acquisition cost plus subsequent capital improvements.

The weighted average yield on our total portfolio, which was 7.9% and 8.2% as of September 30, 2021 and 2020, respectively, is calculated by taking the annualized straight-line rents plus operating expense recoveries, reflected as lease revenue on our condensed consolidated statements of operations and other comprehensive income, less property operating expenses, of each acquisition since inception, as a percentage of the acquisition cost plus subsequent capital improvements.

The weighted average yield does not account for the interest expense incurred on the mortgages placed on our properties.

A comparison of our operating results for the three and six months ended June 30, 2021 and 2020 is below (dollars in thousands, except per share amounts) :

For the three months ended June 30,

A comparison of our operating results for the three and nine months ended September 30, 2021 and 2020 is below (dollars in thousands, except per share amounts) :

For the three months ended September 30,

2021 2020 $ Change % Change

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Impairment charge — 1,184 (1,184) (100.0) %

Total operating expense before incentive fee waiver $ 25,003 $ 25,853 $ (850) (3.3) %

Incentive fee waiver (16) — (16) 100.0 %

Total operating expenses $ 25,498 $ 25,254 $ 244 1.0 %

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Interest expense $ (6,688) $ (6,444) $ (244) 3.8 %

Gain on sale of real estate, net — 1,196 (1,196) (100.0) %

Other income 2,350 204 2,146 1,052.0 %

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Net income $ 4,498 $ 2,844 $ 1,654 58.2 %

Distributions attributable to Series D, E, and F preferred stock (2,856) (2,688) (168) 6.3 %

Series D Preferred Stock offering costs write off (2,141) — (2,141) 100.0 %

Distributions attributable to Series D, E, F, and G preferred stock (2,868) (2,771) (97) 3.5 %

Distributions attributable to senior common stock (170) (203) 33 (16.3) %

Net loss attributable to common stockholders and Non-controlling OP Unitholders $ (3,053) $ (1,927) $ (1,126) 58.4 %

Net loss attributable to common stockholders and Non-controlling OP Unitholders per weighted average share and unit - basic & diluted $ (0.08) $ (0.06) $ (0.02) 33.3 %

Net income (loss) available (attributable) to common stockholders and Non-controlling OP Unitholders $ 1,460 $ (130) $ 1,590 (1,223.1) %

Net income (loss) available (attributable) to common stockholders and Non-controlling OP Unitholders per weighted average share and unit - basic & diluted $ 0.04 $ (0.004) $ 0.044 (1,100.0) %

FFO available to common stockholders and Non-controlling OP Unitholders - basic (1) $ 16,220 $ 13,656 $ 2,564 18.8 %

FFO available to common stockholders and Non-controlling OP Unitholders - diluted (1) $ 16,390 $ 13,859 $ 2,531 18.3 %

FFO available to common stockholders and Non-controlling OP Unitholders - diluted, as adjusted for comparability (1) $ 13,456 $ 14,180 $ (724) (5.1) %

FFO per weighted average share of common stock and Non-controlling OP Units - basic (1) $ 0.44 $ 0.39 $ 0.05 12.8 %

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$ 0.05 12.8 %

FFO per weighted average share of common stock and Non-controlling OP Units - diluted, as adjusted for comparability (1) $ 0.36 $ 0.40

$ (0.04) (10.0) %

(1) Refer to the “Funds from Operations” section below within the Management’s Discussion and Analysis section for the definition of FFO and FFO adjusted for comparability.

For the six months ended June 30,

For the nine months ended September 30,

2021 2020 $ Change % Change

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Interest expense $ (20,338) $ (20,411) $ 73 (0.4) %

Loss on sale of real estate, net (882) (12) (870) 7,250.0 %

(Loss) gain on sale of real estate, net (882) 1,184 (2,066) (174.5) %

Other income 2,884 209 2,675 1,279.9 %

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Net income $ 6,657 $ 6,070 $ 587 9.7 %

Distributions attributable to Series D, E, and F preferred stock (5,703) (5,366) (337) 6.3 %

Distributions attributable to Series D, E, F, and G preferred stock (8,571) (8,137) (434) 5.3 %

Series D preferred stock offering costs write off (2,141) — (2,141) 100.0 %

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Operating Revenues

For the three months ended June 30,

For the three months ended September 30,

(Dollars in Thousands)

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$ 34,334 $ 33,142 $ 1,192 3.6 %

For the six months ended June 30,

For the nine months ended September 30,

(Dollars in Thousands)

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Lease revenues consist of rental income and operating expense recoveries earned from our tenants.

Lease revenues from same store properties increased for the three months ended June 30, 2021 from the comparable 2020 period, primarily due to increased operating expense recoveries from increased property operating expenses incurred on behalf of our tenants at certain properties, due to the easing of COVID-19 restrictions.

Lease revenues from same store properties increased for the six months ended June 30, 2021 from the comparable 2020 period, primarily due to accelerated rent of $2.9 million earned at five of our properties for tenants that early terminated their leases during the three and six months ended June 30, 2021.

We signed leases with replacement tenants for equivalent square footage for two of these properties with no downtime during the six months ended June 30, 2021.

Lease revenues increased for acquired and disposed of properties for the three and six months ended June 30, 2021, as compared to the three and six months ended June 30, 2020, because we acquired six properties during and subsequent to June 30, 2020.

This increase was partially offset by a loss of lease revenues from seven properties we sold during and subsequent to the three and six months ended June 30, 2020.

Lease revenues decreased for our properties with vacancy for the three and six months ended June 30, 2021 due to increased vacancy in our portfolio.

Lease revenues from same store properties increased for the three and nine months ended September 30, 2021, primarily due to increased lease revenue from the amortization of tenant funded improvements, coupled with accelerated rent from tenants that have terminated their leases early.

One of the tenants that terminated early will remain in the building through October 2022, and we fully re-leased the space from two terminations with no downtime.

Lease revenues increased for acquired and disposed of properties for the three and nine months ended September 30, 2021, as compared to the three and nine months ended September 30, 2020, because we acquired 11 properties subsequent to September 30, 2020.

This increase was partially offset by a loss of lease revenues from six properties we sold subsequent to September 30, 2020.

Lease revenues decreased for our properties with vacancy for the three and nine months ended September 30, 2021 due to increased vacancy in our portfolio.

Operating Expenses

Depreciation and amortization increased for the three and six months ended June 30, 2021, as compared to the three and six months ended June 30, 2020, due to depreciation on capital projects completed subsequent to the three and six months ended June 30, 2020, coupled with depreciation on the six properties acquired during and subsequent to the three and six months ended June 30, 2020.

This increase was partially offset by decreased depreciation on the seven properties sold during and subsequent to the three and six months ended June 30, 2020.

For the three months ended June 30,

Depreciation and amortization increased for the three and nine months ended September 30, 2021, as compared to the three and nine months ended September 30, 2020, due to depreciation on capital projects completed subsequent to the three and nine months ended September 30, 2020, coupled with depreciation on the 11 properties acquired subsequent to September 30, 2020.

This increase was partially offset by decreased depreciation on the six properties sold subsequent to September 30, 2020.

For the three months ended September 30,

(Dollars in Thousands)

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$ 6,807 $ 6,590 $ 217 3.3 %

For the six months ended June 30,

For the nine months ended September 30,

(Dollars in Thousands)

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Property operating expenses consist of franchise taxes, property management fees, insurance, ground lease payments, property maintenance and repair expenses paid on behalf of certain of our properties.

The increase in property operating expenses for same store properties for the three months ended June 30, 2021 from the comparable 2020 period, is a result of increased property operating expenses incurred on behalf of our tenants due to COVID-19 restrictions being reduced in many parts of the United States.

The decrease in property operating expenses for same store properties for the six months ended June 30, 2021 from the comparable 2020 period, is a result of decreased property operating expenses incurred on behalf of our tenants due to COVID-19 restrictions that were initially instituted during late March 2020, but relaxed during the second quarter of 2021.

The increase in property operating expenses for same store properties for the three months ended September 30, 2021, from the comparable 2020 period, is a result of increased insurance premiums for our same store portfolio.

The decrease in property operating expenses for same store properties for the

nine months ended September 30, 2021, from the comparable 2020 period, is a result of decreased property operating expenses incurred on behalf of our tenants due to COVID-19 restrictions that were initially instituted during late March 2020, but relaxed during the second quarter of 2021.

Prior to March 2020, our tenants were operating at full capacity with no operating restrictions, while in 2021, many tenants are working towards full occupancy.

The increase in property operating expenses for acquired and disposed of properties for the three and six months ended June 30, 2021, as compared to the three and six months ended June 30, 2020, is primarily a result of increased property operating expenses from six properties acquired during and subsequent to June 30, 2020, partially offset by a reduction of operating expenses from seven properties sold during and subsequent to June 30, 2020.

The increase in property operating expenses for properties with vacancy for the three and six months ended June 30, 2021, as compared to the three and six months ended June 30, 2020, is a result of increased vacancy in our portfolio.

The base management fee paid to the Adviser increased for the three and six months ended June 30, 2021, as compared to the three and six months ended June 30, 2020, due to an increase in Gross Tangible Real Estate over the three and six months ended June 30, 2021 as compared to the increase in Total Shareholders’ Equity during the three and six months ended June 30, 2020.

The increase in property operating expenses for acquired and disposed of properties for the three and nine months ended September 30, 2021, as compared to the three and nine months ended September 30, 2020, is primarily a result of increased property operating expenses from 11 properties acquired subsequent to September 30, 2020, partially offset by a reduction of operating expenses from six properties sold subsequent to September 30, 2020.

The increase in property operating expenses for properties with vacancy for the three and nine months ended September 30, 2021, as compared to the three and nine months ended September 30, 2020, is a result of increased vacancy in our portfolio.

The base management fee paid to the Adviser increased for the three and nine months ended September 30, 2021, as compared to the three and nine months ended September 30, 2020, due to an increase in Gross Tangible Real Estate over the three and nine months ended September 30, 2021 as compared to the increase in Total Shareholders’ Equity and Gross Tangible Real Estate during the three and nine months ended September 30, 2020.

The calculation of the base management fee is described in detail above in “Advisory and Administration Agreements.”

The incentive fee paid to the Adviser decreased for the three months ended June 30, 2021, as compared to the three months ended June 30, 2020, due to a lower pre-incentive fee Core FFO.

The decrease in FFO is a result of a decrease in total operating revenues coupled with an increase in property operating expenses.

The incentive fee paid to the Adviser increased for the six months ended June 30, 2021, as compared to the six months ended June 30, 2020, due to a higher pre-incentive fee Core FFO.

The increase in FFO is a result of an increase in operating revenues, coupled with a decrease in interest expense.

The incentive fee paid to the Adviser increased for the three and nine months ended September 30, 2021, as compared to the three and nine months ended September 30, 2020, due to a higher pre-incentive fee Core FFO.

The increase in Core FFO is a result of an increase in operating revenues, coupled with an increase in other income due to legal settlements of $2.4 million, net.

The calculation of the incentive fee is described in detail above in “Advisory and Administration Agreements.”

The administration fee paid to the Administrator decreased for the three and six months ended June 30, 2021, as compared to the three and six months ended June 30, 2020, due to our Administrator incurring fewer costs that are allocated to us.

The administration fee paid to the Administrator increased for the three months ended September 30, 2021, as compared to the three months ended September 30, 2020, due to our Administrator incurring greater costs that are allocated to us.

The administration fee paid to the Administrator decreased for the nine months ended September 30, 2021, as compared to the nine months ended September 30, 2020, due to our Administrator incurring fewer costs that are allocated to us.

The calculation of the administration fee is described in detail above in “Advisory and Administration Agreements.”

General and administrative expenses increased for the three and six months ended June 30, 2021, as compared to the three and six months ended June 30, 2020, primarily as a result of an increase in legal fees, professional service fees, and shareholder related expenses.

We did not recognize an impairment charge during the three and six months ended June 30, 2021.

During the three and six months ended June 30, 2020, we recognized an impairment charge on our Blaine, Minnesota asset, when our impairment testing determined the fair market value of this property was below our carrying value, and the carrying value was unrecoverable.

General and administrative expenses increased for the three and nine months ended September 30, 2021, as compared to the three and nine months ended September 30, 2020, primarily as a result of an increase in legal fees, professional service fees, and shareholder related expenses.

We did not recognize an impairment charge during the three and nine months ended September 30, 2021.

During the three months ended September 30, 2020, we recognized impairment charges on our Rancho Cordova, California and Champaign, Illinois assets, after our impairment testing determined the fair market value of these properties was below our respective carrying value, and the respective carrying value was unrecoverable.

During the nine months ended September 30, 2020, we recognized impairment charges on our Rancho Cordova, California, Champaign, Illinois and Blaine, Minnesota assets, after our impairment testing determined the fair market value of these properties was below our respective carrying value, and the respective carrying value was unrecoverable.

Other Income and Expenses

Interest expense decreased for the three and six months ended June 30, 2021, as compared to the three and six months ended June 30, 2020.

This decrease was primarily a result of a decrease in interest rates on our LIBOR based variable rate debt, as the three and six months ended June 30, 2021 had lower average LIBOR due to central banks having accommodating monetary policy, due to the COVID-19 pandemic, as compared to the three and six months ended June 30, 2020.

Loss on sale of real estate, net, for the six months ended June 30, 2021, is attributable to two non-core office assets located in Rancho Cordova, California and Champaign, Illinois, being sold during the period.

Loss on sale of real estate, net, for the six months ended June 30, 2020 is attributable to one non-core office asset located in Charlotte, North Carolina being sold during the period.

Net Loss Attributable to Common Stockholders and Non-controlling OP Unitholders

Net loss attributable to common stockholders and Non-controlling OP Unitholders increased for the three months ended June 30, 2021, as compared to the three months ended June 30, 2020, primarily due to the increase in depreciation and amortization expense due to asset acquisition activity during and subsequent to June 30, 2020, coupled with an increase in property operating expenses due to increased vacancy in our portfolio, but partially offset by a decrease in interest expense.

Interest expense increased for the three months ended September 30, 2021, as compared to the three months ended September 30, 2020.

This increase was primarily a result of us having higher outstanding balances on our Credit Facility.

Interest expense decreased for the nine months ended September 30, 2021, as compared to the nine months ended September 30, 2020.

This decrease was primarily a result of a decrease in interest rates on our LIBOR based variable rate debt, as the nine months ended September 30, 2021 had lower average LIBOR due to central banks having accommodating monetary policy, due to the COVID-19 pandemic, as compared to the nine months ended September 30, 2020.

Loss on sale of real estate, net, for the nine months ended September 30, 2021, is attributable to two non-core office assets located in Rancho Cordova, California and Champaign, Illinois, being sold during the period.

Gain on sale of real estate, net, for the nine months ended September 30, 2020 is attributable to one non-core office asset located in Charlotte, North Carolina and one non-core industrial asset located in Maple Heights, Ohio being sold during the period.

Other income increased for the three and nine months ended September 30, 2021, as compared to the three and nine months ended September 30, 2020, primarily due to $2.4 million, net, legal settlements.

Net Income (Loss) Available (Attributable) to Common Stockholders and Non-controlling OP Unitholders

Net income available to common stockholders and Non-controlling OP Unitholders increased for the three months ended September 30, 2021, as compared to the three months ended September 30, 2020, primarily due to the increase in operating revenues due to asset acquisition activity during and subsequent to September 30, 2020, coupled with an increase in other income from $2.4 million, net, in legal settlements.

Net loss attributable to common stockholders and Non-controlling OP Unitholders increased for the nine months ended September 30, 2021, as compared to the nine months ended September 30, 2020, primarily due to a loss on sale of real estate, net from two property sales, coupled with writing off Series D Preferred Stock offering costs in connection with the voluntary redemption of all outstanding shares of our Series D Preferred Stock, partially offset by an increase in operating revenues due to asset acquisition activity during and subsequent to September 30, 2020.

Liquidity and Capital Resources

Our sources of liquidity include cash flows from operations, cash and cash equivalents, borrowings under our Credit Facility and issuing additional equity securities.

Our available liquidity as of June 30, 2021, was $37.5 million, consisting of approximately $14.6 million in cash and cash equivalents and available borrowing capacity of $22.9 million under our Credit Facility.

Our available borrowing capacity under the Credit Facility decreased to $18.4 million as of August 9, 2021.

Our available liquidity as of September 30, 2021, was $36.3 million, consisting of approximately $10.2 million in cash and cash equivalents and available borrowing capacity of $26.1 million under our Credit Facility.

Our available borrowing capacity under the Credit Facility increased to $28.2 million as of November 1, 2021.

Future Capital Needs

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In connection with this redemption, we recognized a $2.1 million decrease to net income available to common shareholders pertaining to the original issuance costs incurred upon issuance of our Series D Preferred Stock.

During the six months ended June 30, 2021, we raised net proceeds of $19.4 million of common equity under our Common Stock ATM Program at a net weighted average per share price of $19.61.

During the nine months ended September 30, 2021, we raised net proceeds of $24.1 million of common equity under our Common Stock ATM Program at a net weighted average per share price of $20.08.

We used these proceeds to fund acquisitions, pay down outstanding debt and for other general corporate purposes.

We did not sell any of our Series E Preferred Stock under our Series E Preferred Stock Sales Agreement during the six months ended June 30, 2021.

We raised net proceeds of $1.0 million from sales of our Series F Preferred Stock during the six months ended June 30, 2021.

As of August 9, 2021, we had the ability to raise up to $355.4 million of additional equity capital through the sale and issuance of securities that are registered under the 2019 Universal Shelf, in one or more future public offerings.

Of the $355.4 million of available capacity under our 2019 Universal Shelf, approximately $162.1 million is reserved for additional sales under our Common Stock ATM Program, and approximately $92.8 million is reserved for additional sales under our Series E Preferred Stock Sales Agreement as of August 9, 2021.

We did not sell any of our Series E Preferred Stock under our Series E Preferred Stock Sales Agreement during the nine months ended September 30, 2021.

We raised net proceeds of $4.9 million from sales of our Series F Preferred Stock during the nine months ended September 30, 2021.

As of November 1, 2021, we had the ability to raise up to $344.5 million of additional equity capital through the sale and issuance of securities that are registered under the 2019 Universal Shelf, in one or more future public offerings.

Of the $344.5

million of available capacity under our 2019 Universal Shelf, approximately $151.2 million is reserved for additional sales under our Common Stock ATM Program, and approximately $92.8 million is reserved for additional sales under our Series E Preferred Stock Sales Agreement as of November 1, 2021.

We expect to continue to use our at-the-market programs as a source of liquidity for the remainder of 2021.

As of August 9, 2021, we had the ability to raise up to $694.1 million of additional equity capital through the sale and issuance of securities that are registered under the 2020 Universal Shelf, in one or more future public offerings.

Of the $694.1 million of available capacity under our 2020 Universal Shelf, approximately $630.6 million is reserved for the sale of our Series F Preferred Stock as of August 9, 2021.

As of June 30, 2021, we had 53 mortgage notes payable in the aggregate principal amount of $454.4 million, collateralized by a total of 68 properties with a remaining weighted average maturity of 4.2 years.

The weighted-average interest rate on the mortgage notes payable as of June 30, 2021 was 4.20%.

As of November 1, 2021, we had the ability to raise up to $690.8 million of additional equity capital through the sale and issuance of securities that are registered under the 2020 Universal Shelf, in one or more future public offerings.

Of the $690.8 million of available capacity under our 2020 Universal Shelf, approximately $627.3 million is reserved for the sale of our Series F Preferred Stock as of November 1, 2021.

As of September 30, 2021, we had 53 mortgage notes payable in the aggregate principal amount of $451.0 million, collateralized by a total of 68 properties with a remaining weighted average maturity of 3.9 years.

The weighted-average interest rate on the mortgage notes payable as of September 30, 2021 was 4.19%.

We continue to see banks and non-bank lenders willing to issue mortgages.

Consequently, we are focused on obtaining mortgages through regional banks, non-bank lenders and the CMBS market.

As of June 30, 2021, we had mortgage debt in the aggregate principal amount of $16.9 million payable during the remainder of 2021 and $105.9 million payable during 2022.

The 2021 principal amount payable includes both amortizing principal payments and two balloon principal payments due during the remaining six months of 2021.

As of September 30, 2021, we had mortgage debt in the aggregate principal amount of $13.6 million payable during the remainder of 2021 and $105.8 million payable during 2022.

The 2021 principal amount payable includes both amortizing principal payments and two balloon principal payments due during the remaining three months of 2021.

We anticipate being able to refinance our mortgages that come due during 2021 and 2022 with a combination of new mortgage debt, availability under our Credit Facility and the issuance of additional equity securities.

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Operating Activities

Net cash provided by operating activities during the six months ended June 30, 2021, was $34.4 million, as compared to net cash provided by operating activities of $35.4 million for the six months ended June 30, 2020.

This change was primarily a result of an increase in property operating expenses, due to increased vacancy in our portfolio, partially offset by increased operating revenues from our six property acquisitions completed during and subsequent to June 30, 2020, coupled with contractual lease revenue increases on the in-place portfolio.

Net cash provided by operating activities during the nine months ended September 30, 2021, was $53.7 million, as compared to net cash provided by operating activities of $52.4 million for the nine months ended September 30, 2020.

This change was primarily a result of an increase in operating revenues from our 11 property acquisitions completed subsequent to September 30, 2020, coupled with $2.4 million, net, in legal settlements, partially offset by an increase in unreimbursed property operating expenses, due to higher portfolio vacancy.

The majority of cash from operating activities is generated from the lease revenues that we receive from our tenants.

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Investing Activities

Net cash used in investing activities during the six months ended June 30, 2021, was $17.1 million, which primarily consisted of two property acquisitions, coupled with capital improvements performed at certain of our properties, partially offset by proceeds from the sale of two properties.

Net cash used in investing activities during the six months ended June 30, 2020, was $70.7 million, which primarily consisted of five property acquisitions, coupled with capital improvements performed at certain of our properties, partially offset by proceeds from the sale of one property.

Net cash used in investing activities during the nine months ended September 30, 2021, was $46.0 million, which primarily consisted of eight property acquisitions, coupled with capital improvements performed at certain of our properties, partially offset by proceeds from the sale of two properties.

Net cash used in investing activities during the nine months ended September 30, 2020, was $73.0 million, which primarily consisted of six property acquisitions, coupled with capital improvements performed at certain of our properties, partially offset by proceeds from the sale of two properties.

Financing Activities

Net cash used in financing activities during the six months ended June 30, 2021, was $14.1 million, which primarily consisted of the repayment of $10.9 million of outstanding mortgage debt, redemption of our Series D Preferred Stock, repayment of $53.9 million, net, on our Revolver, and distributions paid to common, senior common and preferred shareholders, partially offset by the issuance of $120.8 million of common and preferred equity, borrowings from our new Term Loan B of $50.0 million, and the issuance of $5.5 million of new mortgage debt.

Net cash provided by financing activities for the six months ended June 30, 2020, was $38.3 million, which primarily consisted of $35.9 million in new mortgage borrowings coupled with the issuance of $30.8 million of equity, partially offset by $24.4 million of mortgage principal repayments, and distributions paid to common, senior common and preferred shareholders.

Net cash used in financing activities during the nine months ended September 30, 2021, was $8.6 million, which primarily consisted of the repayment of $14.3 million of outstanding mortgage debt, redemption of our Series D Preferred Stock, repayment of $51.8 million, net, on our Revolver, and distributions paid to common, senior common and preferred shareholders, partially offset by the issuance of $130.0 million of common and preferred equity, borrowings from our new Term Loan B of $65.0 million, and the issuance of $5.5 million of new mortgage debt.

Net cash provided by financing activities for the nine months ended September 30, 2020, was $24.4 million, which primarily consisted of $35.9 million in new mortgage borrowings coupled with the issuance of $39.6 million of equity, partially offset by $31.7 million of mortgage principal repayments, and distributions paid to common, senior common and preferred shareholders.

Credit Facility

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Bank National Association, The Huntington National Bank, Goldman Sachs Bank USA, and Wells Fargo Bank, National Association.

On February 11, 2021, we added Term Loan B, a new $65.0 million term loan component to our Credit Facility, inclusive of a $15.0 million delayed funding component.

On February 11, 2021, we added Term Loan B, a new $65.0 million term loan component to our Credit Facility.

Term Loan B has a maturity date of February 11, 2026 and a LIBOR floor of 25 basis points plus a spread ranging from 140 to 225 basis points depending on our leverage.

We entered into multiple interest rate cap agreements on Term Loan B, which cap LIBOR at 1.50%.

We entered into multiple interest rate cap agreements on Term Loan B, which cap LIBOR from 1.50% to 1.75%.

We incurred fees of approximately $0.5 million in connection with issuing Term Loan B.

As of June 30, 2021, there was $50.0 million outstanding under Term Loan B, and we used all net proceeds to repay all outstanding borrowings on the Revolver.

As of June 30, 2021, there was $210.0 million outstanding under our Credit Facility at a weighted average interest rate of approximately 1.99% and $18.1 million outstanding under letters of credit at a weighted average interest rate of 1.90%.

As of August 9, 2021, the maximum additional amount we could draw under the Credit Facility was $18.4 million.

We were in compliance with all covenants under the Credit Facility as of June 30, 2021.

As of September 30, 2021, there was $65.0 million outstanding under Term Loan B, and we used all net proceeds to repay all outstanding borrowings on the Revolver.

As of September 30, 2021, there was $227.1 million outstanding under our Credit Facility at a weighted average interest rate of approximately 1.97% and $18.7 million outstanding under letters of credit at a weighted average interest rate of 1.90%.

As of November 1, 2021, the maximum additional amount we could draw under the Credit Facility was $28.2 million.

We were in compliance with all covenants under the Credit Facility as of September 30, 2021.

For discussion on the impact COVID-19 has had on our liquidity and capital resources, refer to the Impact of COVID-19 on Our Business section under Business Environment.

Contractual Obligations

The following table reflects our material contractual obligations as of June 30, 2021 (in thousands):

The following table reflects our material contractual obligations as of September 30, 2021 (in thousands):

Payments Due by Period

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$ 771,945 $ 102,703 $ 349,221 $ 149,370 $ 170,651

(1) Debt obligations represent borrowings under our Revolver, which represents $0.0 million of the debt obligation due in 2023, our Term Loan A, which represents $160.0 million of the debt obligation due in 2024, our Term Loan B, which represents $50.0 million of the debt obligation due in 2026 and mortgage notes payable that were outstanding as of June 30, 2021.

(1) Debt obligations represent borrowings under our Revolver, which represents $2.1 million of the debt obligation due in 2023, our Term Loan A, which represents $160.0 million of the debt obligation due in 2024, our Term Loan B, which represents $65.0 million of the debt obligation due in 2026 and mortgage notes payable that were outstanding as of September 30, 2021.

This figure does not include $(0.1) million of premiums and (discounts), net and $3.9 million of deferred financing costs, net, which are reflected in mortgage notes payable, net and borrowings under Term Loan, net on the condensed consolidated balance sheets.

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The balance and interest rate on our Revolver and Term Loan A and Term Loan B is variable;

thus, the interest payment obligation calculated for purposes of this table was based upon rates and balances as of June 30, 2021.

thus, the interest payment obligation calculated for purposes of this table was based upon rates and balances as of September 30, 2021.

(3) Operating lease obligations represent the ground lease payments due on four of our properties.

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Off-Balance Sheet Arrangements

We did not have any material off-balance sheet arrangements as of June 30, 2021.

We did not have any material off-balance sheet arrangements as of September 30, 2021.

Funds from Operations

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FFO as adjusted for comparability is generally calculated as FFO available to common stockholders and Non-controlling OP Unitholders, excluding certain non-recurring and non-cash income and expense adjustments, which management believes are not reflective of the results within our operating real estate portfolio.

The following table provides a reconciliation of our FFO available to common stockholders for the three and six months ended June 30, 2021 and 2020, respectively, to the most directly comparable GAAP measure, net income available to common stockholders, and a computation of basic and diluted FFO per weighted average share of common stock:

For the three months ended June 30, For the six months ended June 30,

The following table provides a reconciliation of our FFO available to common stockholders for the three and nine months ended September 30, 2021 and 2020, respectively, to the most directly comparable GAAP measure, net income available to common stockholders, and a computation of basic and diluted FFO per weighted average share of common stock:

For the three months ended September 30, For the nine months ended September 30,

(Dollars in Thousands, Except for Per Share Amounts) (Dollars in Thousands, Except for Per Share Amounts)

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Series D preferred stock offering costs write off — — (2,141) —

Net loss attributable to common stockholders and Non-controlling OP Unitholders $ (3,053) $ (1,927) $ (6,048) $ (2,552)

Net income (loss) available (attributable) to common stockholders and Non-controlling OP Unitholders $ 1,460 $ (130) $ (4,589) $ (2,682)

Real estate depreciation and amortization $ 14,760 $ 13,798 $ 45,661 $ 42,076

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Loss on sale of real estate, net — — 882 —

Gain on sale of real estate, net — (1,196) — (1,184)

FFO available to common stockholders and Non-controlling OP Unitholders - basic $ 16,220 $ 13,656 $ 41,954 $ 41,115

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Series D preferred stock offering costs write off — — (2,141) —

Net loss attributable to common stockholders and Non-controlling OP Unitholders $ (3,053) $ (1,927) $ (6,048) $ (2,552)

Net income (loss) available (attributable) to common stockholders and Non-controlling OP Unitholders $ 1,460 $ (130) $ (4,589) $ (2,682)

Real estate depreciation and amortization $ 14,760 $ 13,798 $ 45,661 $ 42,076

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Loss on sale of real estate, net — — 882 —

Gain on sale of real estate, net — (1,196) — (1,184)

FFO available to common stockholders and Non-controlling OP Unitholders plus assumed conversions $ 16,390 $ 13,859 $ 42,488 $ 41,730

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis