What changed in this filing

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Item 1. Financial Statements

2025-08-01 compared with 2025-05-01 · 257 added, 118 removed, 605 unchanged (38% of the section changed)

3 unchanged sentences

Amounts in thousands, except per share data

MARCH 31, 2025

JUNE 30, 2025

DECEMBER 31, 2024

33 unchanged sentences

1,000,000 shares authorized;

350,996 and 350,532 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively

351,568 and 350,532 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively

Additional paid-in capital 9,129,338 9,118,229

9 unchanged sentences

Condensed Consolidated Statements of Operations

For the Three Months Ended March 31, 2025 and 2024

For the Three and Six Months Ended June 30, 2025 and 2024

Amounts in thousands, except per share data

THREE MONTHS ENDED

June 30, SIX MONTHS ENDED

2025 2024 2025 2024

Rental income $ 287,070 $ 308,135 $ 575,927 $ 626,211

25 unchanged sentences

Condensed Consolidated Statements of Comprehensive Loss

For the Three Months Ended March 31, 2025 and 2024

For the Three and Six Months Ended June 30, 2025 and 2024

Amounts in thousands

THREE MONTHS ENDED

June 30, SIX MONTHS ENDED

2025 2024 2025 2024

Net loss $ ( 160,144 ) $ ( 145,938 ) $ ( 205,532 ) $ ( 461,157 )

Other comprehensive income (loss)

Other comprehensive loss

Interest rate derivatives

8 unchanged sentences

Condensed Consolidated Statements of Equity and Redeemable Non-Controlling Interests

For the Three Months Ended March 31, 2025 and 2024

For the Three Months Ended June 30, 2025 and 2024

Amounts in thousands, except per share data

8 unchanged sentences

Equity Redeemable Non-controlling Interests

Balance at March 31, 2025 $ 3,510 $ 9,121,269 $ ( 7,206 ) $ 329,436 $ ( 4,368,739 ) $ 5,078,270 $ 63,945 $ 5,142,215 $ 4,627

Common stock redemptions ( 1 ) ( 1,327 ) — — — ( 1,328 ) — ( 1,328 ) —

Conversion of OP Units to common stock — 334 — — — 334 ( 334 ) — —

Share-based compensation 7 8,767 — — — 8,774 — 8,774 —

Net loss — — — ( 157,851 ) — ( 157,851 ) ( 2,293 ) ( 160,144 ) —

Reclassification adjustments for gains included in net income (interest expense)

— — ( 966 ) — — ( 966 ) ( 14 ) ( 980 ) —

Losses arising during the period on interest rate swaps

— — ( 1,013 ) — — ( 1,013 ) ( 15 ) ( 1,028 ) —

Adjustments to redemption value of redeemable non-controlling interests — 295 — — — 295 — 295 ( 295 )

Dividends to common stockholders and distributions to non-controlling interest holders ($ 0.31 per share)

— — — — ( 109,201 ) ( 109,201 ) ( 1,509 ) ( 110,710 ) —

Balance at June 30, 2025 $ 3,516 $ 9,129,338 $ ( 9,185 ) $ 171,585 $ ( 4,477,940 ) $ 4,817,314 $ 59,780 $ 4,877,094 $ 4,332

Stock Additional

Capital Accumulated

Comprehensive

Income (Loss) Cumulative

Net Income Cumulative

Dividends Total

Stockholders’

Equity Non-controlling Interests Total

Equity Redeemable Non-controlling Interests

Balance at March 31, 2024 $ 3,815 $ 9,609,530 $ 4,791 $ 717,958 $ ( 3,920,199 ) $ 6,415,895 $ 87,243 $ 6,503,138 $ 3,880

Common stock redemptions — ( 3 ) — — — ( 3 ) — ( 3 ) —

Share-based compensation — 3,382 — — — 3,382 — 3,382 —

Common stock repurchases ( 172 ) ( 272,881 ) — — — ( 273,053 ) — ( 273,053 ) —

Net loss — — — ( 143,780 ) — ( 143,780 ) ( 2,158 ) ( 145,938 ) —

Reclassification adjustments for gains included in net income (interest expense)

— — ( 3,611 ) — — ( 3,611 ) ( 51 ) ( 3,662 ) —

Gains arising during the period on interest rate swaps

— — 5,806 — — 5,806 85 5,891 —

Adjustments to redemption value of redeemable non-controlling interests — — — — — — — — ( 5 )

Dividends to common stockholders and distributions to non-controlling interest holders ($ 0.31 per share)

— — — — ( 117,494 ) ( 117,494 ) ( 1,444 ) ( 118,938 ) —

Balance at June 30, 2024 $ 3,643 $ 9,340,028 $ 6,986 $ 574,178 $ ( 4,037,693 ) $ 5,887,142 $ 83,675 $ 5,970,817 $ 3,875

The accompanying notes, together with the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, are an integral part of these financial statements.

Condensed Consolidated Statements of Equity and Redeemable Non-Controlling Interests

For the Six Months Ended June 30, 2025 and 2024

Amounts in thousands, except per share data

Stock Additional

Capital Accumulated

Comprehensive

Income (Loss) Cumulative

Net Income Cumulative

Dividends Total

Stockholders’

Equity Non-controlling Interests Total

Equity Redeemable Non-controlling Interests

Balance at December 31, 2024 $ 3,505 $ 9,118,229 $ ( 1,168 ) $ 374,309 $ ( 4,260,014 ) $ 5,234,861 $ 66,235 $ 5,301,096 $ 4,778

Common stock redemptions ( 1 ) ( 1,542 ) — — — ( 1,543 ) — ( 1,543 ) —

Conversion of OP Units to common stock — 334 — — — 334 ( 334 ) — —

Share-based compensation 12 11,790 — — — 11,802 — 11,802 —

8 unchanged sentences

— — — — ( 217,926 ) ( 217,926 ) ( 2,788 ) ( 220,714 ) —

Balance at March 31, 2025 $ 3,510 $ 9,121,269 $ ( 7,206 ) $ 329,436 $ ( 4,368,739 ) $ 5,078,270 $ 63,945 $ 5,142,215 $ 4,627

Balance at June 30, 2025 $ 3,516 $ 9,129,338 $ ( 9,185 ) $ 171,585 $ ( 4,477,940 ) $ 4,817,314 $ 59,780 $ 4,877,094 $ 4,332

Stock Additional

12 unchanged sentences

Share-based compensation 3 6,941 — — — 6,944 — 6,944 —

Common stock repurchases ( 172 ) ( 272,881 ) — — — ( 273,053 ) — ( 273,053 ) —

Net loss — — — ( 454,616 ) — ( 454,616 ) ( 6,541 ) ( 461,157 ) —

7 unchanged sentences

— — — — ( 235,900 ) ( 235,900 ) ( 2,870 ) ( 238,770 ) —

Balance at March 31, 2024 $ 3,815 $ 9,609,530 $ 4,791 $ 717,958 $ ( 3,920,199 ) $ 6,415,895 $ 87,243 $ 6,503,138 $ 3,880

Balance at June 30, 2024 $ 3,643 $ 9,340,028 $ 6,986 $ 574,178 $ ( 4,037,693 ) $ 5,887,142 $ 83,675 $ 5,970,817 $ 3,875

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2025 and 2024

For the Six Months Ended June 30, 2025 and 2024

Amounts in thousands

OPERATING ACTIVITIES

THREE MONTHS ENDED

SIX MONTHS ENDED

Net loss $ ( 205,532 ) $ ( 461,157 )

21 unchanged sentences

Investments in unconsolidated joint ventures ( 978 ) —

Investment in financing receivable ( 3 ) 746

Proceeds from (investment in) financing receivable ( 194 ) 475

Contributions from redeemable non-controlling interests — 13

Proceeds from sales of real estate properties and additional long-lived assets 69,805 303,475

Proceeds from insurance recovery 2,000 —

Proceeds from notes receivable repayments 53,190 567

Net cash used in investing activities ( 38,833 ) ( 58,561 )

Net cash (used in) provided by investing activities ( 41,931 ) 151,388

FINANCING ACTIVITIES

5 unchanged sentences

Common stock redemptions ( 713 ) ( 321 )

Common stock repurchases — ( 273,053 )

Distributions to non-controlling interest holders ( 2,653 ) ( 2,399 )

Redemption of non-controlling interest ( 330 ) —

Debt issuance and assumption costs — ( 563 )

Payments made on finance leases ( 46 ) ( 30 )

2 unchanged sentences

Cash and cash equivalents at beginning of period 68,916 25,699

Cash and cash equivalents at end of period, including held for sale 25,658 41,765

Cash and cash equivalents held for sale ( 151 ) —

Cash and cash equivalents at end of period $ 25,507 $ 41,765

Supplemental Cash Flow Information

Supplemental Cash Flow Information SIX MONTHS ENDED

Interest paid $ 90,251 $ 103,708

2 unchanged sentences

Capitalized interest $ 4,608 $ 1,916

Proceeds from dispositions held in escrow $ — $ 96,008

Contribution of real estate properties into unconsolidated joint venture $ — $ 66,547

3 unchanged sentences

Healthcare Realty Trust Incorporated (the "Company") is a real estate investment trust ("REIT") that owns, leases, manages, acquires, finances, develops and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States.

As of March 31, 2025, the Company had gross investments of approximately $ 11.8 billion in 587 cons olidated real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development and corporate property, excluding held for sale assets.

In addition, as of March 31, 2025, the Company had a weighted average ownership interest of approxima tel y 30 % in 63 real estate properties held in unconsolidated joint ventures.

As of June 30, 2025, the Company had gross investments of approximately $ 11.2 billion in 559 cons olidated real estate properties, construction in progress, redevelopments, financing receivables, financing lease right-of-use assets, land held for development and corporate property, excluding held for sale assets.

In addition, as of June 30, 2025, the Company had a weighted average ownership interest of approxima tel y 30 % in 63 real estate properties held in unconsolidated joint ventures.

See Note 2 below for more details regarding the Company's unconsolidated joint ventures.

The Company's consolidated re al estate properties are located in 32 states and total approximately 32.2 million square feet.

The Company provided leasing and property management services to 92 % of its portfolio nationwide as of March 31, 2025.

The Company provided leasing and property management services to 93 % of its portfolio nationwide as of June 30, 2025.

The Company is structured as an umbrella partnership REIT under which substantially all of its business is conducted through the operating partnership, Healthcare Realty Holdings, L.P.

(the “OP”) , the day-to-day management of which is exclusively controlled by the Company.

As of March 31, 2025, the Company own ed 98.7 % of the issued and outstanding units of the OP (“OP Units”), with other investors owning the remaining 1.3 % of the OP's issued and outstanding units.

As of June 30, 2025, the Company own ed 98.6 % of the issued and outstanding units of the OP (“OP Units”), with other investors owning the remaining 1.4 % of OP Units.

Any references to square footage or occupancy percentage, and any amounts derived from these values in these notes to the Company's Condensed Consolidated Financial Statements, are outside the scope of our independent registered public accounting firm’s review.

24 unchanged sentences

Upon conversion of OP Units to common stock, any difference between the fair value of the common stock issued and the carrying value of the OP Units converted to common stock is recorded as a component of equity.

As of March 31, 2025, there were approximately 4.7 million OP Units, or 1.3 % of OP Units issued and outstanding, held by non-controlling interest holders.

As of June 30, 2025, there were approximately 5.1 million OP Units, or 1.4 % of OP Units issued and outstanding, held by non-controlling interest holders.

Additionally, the Company is the primary beneficiary of this VIE.

Accordingly, the Company consolidates its interests in the OP.

As of March 31, 2025, the Company had three consolidated VIEs, in addition to the OP, consisting of joint venture investments in which the Company is the primary beneficiary of the VIE based on the combination of operational control and the rights to receive residual returns or the obligation to absorb losses arising from the joint ventures.

Accordingly, such joint ventures have been consolidated, and the table below summarizes the balance sheets of consolidated VIEs, excluding the OP, in the aggregate as of March 31, 2025 and December 31, 2024:

(dollars in thousands) March 31, 2025 December 31, 2024

As of June 30, 2025, the Company had three consolidated VIEs, in addition to the OP, consisting of joint venture investments in which the Company is the primary beneficiary of the VIE based on the combination of operational control and the rights to receive residual returns or the obligation to absorb losses arising from the joint ventures.

Accordingly, such joint ventures have been consolidated, and the table below summarizes the balance sheets of consolidated VIEs, excluding the OP, in the aggregate as of June 30, 2025 and December 31, 2024:

(dollars in thousands) June 30, 2025 December 31, 2024

Total real estate investments, net

9 unchanged sentences

$ 71,330 $ 63,001

As of March 31, 2025, the Company had four unconsolidated VIEs consisting of three notes receivable and one joint venture.

As of June 30, 2025, the Company had four unconsolidated VIEs consisting of three notes receivable and one joint venture.

The Company does not have the power or economic interests to direct the activities of these VIEs on a stand-alone basis, and therefore it was determined that the Company was not the primary beneficiary.

As a result, the Company accounts for the three notes receivable as amortized cost and a joint venture arrangement under the equity method.

As a result, the Company accounts for the three notes receivable as amortized cost and the joint venture arrangement under the equity method.

See below for additional information regarding the Company's unconsolidated VIEs.

7 unchanged sentences

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

As of March 31, 2025, the Company's unconsolidated joint venture arrangement was accounted for using the equity method of accounting as the Company exercised significant influence over but did not control this entity.

As of June 30, 2025, the Company's unconsolidated joint venture arrangement was accounted for using the equity method of accounting as the Company exercised significant influence over but did not control this entity.

See Note 2 below for more details regarding the Company's unconsolidated joint ventures.

13 unchanged sentences

The Company measures the redemption value and records an adjustment to the carrying value of the equity securities as a component of redeemable non-controlling interest.

As of March 31, 2025, the Company had redeemable non-controlling interests of $ 4.6 million.

As of June 30, 2025, the Company had redeemable non-controlling interests of $ 4.3 million .

Asset Impairment

5 unchanged sentences

or significant negative economic trends or negative industry trends for the Company or its tenants.

During the three months ended March 31, 2025, the Company recognized real estate impairments totaling $ 10.2 million as a result of completed and planned disposition activity.

As of March 31, 2025, two real estate properties totaling $ 0.9 million were measured at fair value using level 3 fair value hierarchy.

The level 3 fair value techniques included brokerage estimates, letters of intent, and unexecuted purchase and sale agreements, and less estimated closing costs.

During the three and six months ended June 30, 2025, the Company recognized real estate impairments totaling $ 140.9 million and $ 151.0 million , respectively, as a result of the indicators described above.

As of June 30, 2025, 11 real estate properties totaling $ 126.3 million were measured at fair value using level 3 fair value hierarchy.

The level 3 fair value techniques included using discounted cash flow models, brokerage estimates, letters of intent, and unexecuted purchase and sale agreements, and less estimated closing costs.

The determination of fair value using the discounted cash flow model technique requires the use of estimates and assumptions related to revenue and expense growth rates, capitalization rates, discount rates, capital expenditures and working capital levels.

Investments in Leases - Financing Receivables, Net

6 unchanged sentences

(dollars in thousands) CARRYING VALUE AS OF

ORIGINATION DATE LOCATION INTEREST RATE MARCH 31, 2025 DECEMBER 31, 2024

ORIGINATION DATE LOCATION INTEREST RATE JUNE 30, 2025 DECEMBER 31, 2024

May 2021 Poway, CA 5.69 % $ 116,780 $ 116,304

4 unchanged sentences

Real estate notes receivable are intended to be held to maturity and are recorded at amortized cost, net of unamortized loan origination costs and fees and allowance for credit losses.

As of March 31, 2025, real estate notes receivable, net, which are included in Other assets on the Company's Condensed Consolidated Balance Sheets, totaled $ 117.8 million.

(dollars in thousands) ORIGINATION MATURITY STATED INTEREST RATE MAXIMUM LOAN COMMITMENT OUTSTANDING as of

MARCH 31, 2025 INTEREST RECEIVABLE (OTHER ASSETS) ALLOWANCE FOR CREDIT LOSSES FAIR VALUE DISCOUNT AND FEES CARRYING VALUE as of MARCH 31, 2025

As of June 30, 2025, real estate notes receivable, net, which are included in Other assets on the Company's Condensed Consolidated Balance Sheets, totaled $ 81.1 million.

(dollars in thousands) ORIGINATION MATURITY STATED INTEREST RATE MAXIMUM LOAN COMMITMENT OUTSTANDING as of JUNE 30, 2025 INTEREST RECEIVABLE (OTHER ASSETS) ALLOWANCE FOR CREDIT LOSSES FAIR VALUE DISCOUNT AND FEES CARRYING VALUE as of JUNE 30, 2025

Mezzanine loans

1 unchanged sentence

10/03/2024 10/02/2029 11.00 % 4,500 1 — — — 1

3/20/2025 3/19/2030 13.00 % 8,500 — — — — —

Wisconsin 3/20/2025 3/19/2030 13.00 % 8,500 2,833 — — — 2,833

19,000 8,834 36 — — 8,870

10 unchanged sentences

$ 195,979 $ 97,022 $ 2,300 $ ( 18,272 ) $ — $ 81,050

1 In March 2025, the Company entered an agreement to finance $ 8.5 million for a property in Green Bay, WI.

As of March 31, 2025, the loan has not been funded.

1 In 2024, the Company determined that an allowance for credit loss of $ 16.8 million was needed on this mortgage loan, which included approximately $ 16.3 million of principal and approximately $ 0.5 million of interest.

2 unchanged sentences

As of the date of these financial statements, the outstanding principal and interest on this loan has not been repaid.

The Company has evaluated the collectibility of the amount outstanding and has determined that the underlying collateral has a value that exceeds the carrying value of as of March 31, 2025, and is working with the borrower on satisfaction of the mortgage loan.

The Company has evaluated the collectibility of the amount outstanding and has determined that an allowance for credit loss of $ 1.5 million was needed on this loan.

3 In April 2025, this loan was repaid in full.

5 unchanged sentences

The Company’s evaluation considers industry and economic conditions, credit enhancements, liquidity, and other factors.

The determination of the credit allowance is based on a quarterly evaluation of all outstanding loans, including general economic conditions and estimated collectability of loan

The determination of the credit allowance is based on a quarterly evaluation of all outstanding loans, including general economic conditions and estimated collectability of loan payments.

The Company evaluates the collectability of loan receivables based on a combination of credit quality

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

The Company evaluates the collectability of loan receivables based on a combination of credit quality indicators, including, but not limited to, payment status, historical loan charge-offs, financial strength of the borrower and guarantors, and nature, extent, and value of the underlying collateral.

indicators, including, but not limited to, payment status, historical loan charge-offs, financial strength of the borrower and guarantors, and nature, extent, and value of the underlying collateral.

A loan is considered to have deteriorated credit quality when, based on current information and events, it is probable that the Company will be unable to collect all amounts due as scheduled according to the contractual terms of the loan agreement.

4 unchanged sentences

While a loan is on non-accrual status, any cash receipts are applied against the outstanding principal balance.

In the second quarter of 2025, the Company determined the risk of credit loss on one of its mortgage notes receivable was no longer remote and recorded a credit loss reserve of $ 1.5 million.

The following table summarizes the Company's allowance for credit losses on real estate notes receivable:

Dollars in thousands THREE MONTHS ENDED MARCH 31, 2025 TWELVE MONTHS ENDED DECEMBER 31, 2024

Dollars in thousands SIX MONTHS ENDED JUNE 30, 2025 TWELVE MONTHS ENDED DECEMBER 31, 2024

Allowance for credit losses, beginning of period $ 16,801 $ 5,196

5 unchanged sentences

Income from Lease Financing Receivables

The Company recognized the related income from two financing receivables totaling $ 2.0 million and $ 2.1 million for the three months ended March 31, 2025 and 2024, respectively, based on an imputed interest rate over the terms of the applicable lease.

The Company recognized the related income from two financing receivables totaling $ 2.0 million and $ 3.9 million, respectively, for the three and six months ended June 30, 2025, and $ 2.1 million and $ 4.2 million, respectively, for the three and six months ended June 30, 2024, based on an imputed interest rate over the terms of the applicable lease.

As a result, the interest recognized from the financing receivable in any particular period will not equal the cash payments from the lease agreement in that period.

3 unchanged sentences

Income from Real Estate Notes Receivable

The Company recognized interest income related to real estate notes receivable of $ 1.8 million and $ 2.4 million for the three months ended March 31, 2025 and 2024, respectively.

The Company recognized interest income related to real estate notes receivable of $ 1.5 million and $ 3.3 million, respectively, for the three and six months ended June 30, 2025, and $ 1.8 million and $ 4.2 million, respectively, for the three and six months ended June 30, 2024.

The Company recognizes interest income on an accrual basis unless the Company has determined that collectability of contractual amounts is not reasonably assured, at which point the note is placed on non-accrual status.

As of March 31, 2025, the Company has two loans on non-accrual status.

As of June 30, 2025, the Company had two loans on non-accrual status.

Revenue from Contracts with Customers (ASC Topic 606)

3 unchanged sentences

To achieve the core principle, the Company applies the five-step model specified in the guidance.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Revenue that is accounted for under ASC Topic 606 is segregated on the Company’s Condensed Consolidated Statements of Operations in the Other operating line item.

2 unchanged sentences

THREE MONTHS ENDED

June 30, SIX MONTHS ENDED

in thousands 2025 2024 2025 2024

3 unchanged sentences

4,614 1,859 9,140 3,504

$ 6,983 $ 4,322 $ 13,371 $ 8,513

1 Includes the recovery of certain expenses under the financing receivable as outlined in the management agreement.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

The Company’s major types of revenue that are accounted for under Topic 606 that are listed above are all accounted for as the performance obligation is satisfied.

12 unchanged sentences

2025 Acquisition Activity

The Company had no real estate acquisition activity for the three months ended March 31, 2025.

The Company had no real estate acquisition activity for the six months ended June 30, 2025.

Unconsolidated Joint Ventures

The Company's investment in and income (losses) recognized for the three months ended March 31, 2025 and 2024 related to its unconsolidated joint ventures accounted for under the equity method are shown in the table below:

The Company's investment in and income (losses) recognized for the three and six months ended June 30, 2025 and 2024 related to its unconsolidated joint ventures accounted for under the equity method are shown in the table below:

THREE MONTHS ENDED

June 30, SIX MONTHS ENDED

Dollars in thousands 2025 2024 2025 2024

4 unchanged sentences

Investments in unconsolidated joint ventures, end of period $ 463,430 $ 374,841 $ 463,430 $ 374,841

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

2025 Real Estate Asset Dispositions

The following table details the Company's dispositions for the three months ended March 31, 2025.

The following table details the Company's dispositions for the six months ended June 30, 2025.

Dollars in thousands DATE DISPOSED SALE PRICE CLOSING ADJUSTMENTS COMPANY-FINANCED MORTGAGE NOTES NET PROCEEDS NET REAL ESTATE INVESTMENT OTHER (INCLUDING RECEIVABLES) GAIN/(IMPAIRMENT) SQUARE FOOTAGE

2 unchanged sentences

Houston, TX 3/20/25 15,000 ( 4,087 ) ( 5,400 ) 5,513 14,343 347 ( 3,777 ) 127,933

3/20/25 15,000 ( 4,087 ) ( 5,400 ) 5,513 14,343 347 ( 3,777 ) 127,933

Boston, MA 4/30/25 486 ( 49 ) — 437 60 — 377 —

Boston, MA 5/23/25 3,000 ( 48 ) — 2,952 2,631 15 306 33,176

Jacksonville, FL 6/26/25 8,100 ( 43 ) — 8,057 23,064 ( 561 ) ( 14,446 ) 53,169

Yakima, WA 6/26/25 31,000 ( 2,380 ) — 28,620 8,689 219 19,712 91,561

Houston, TX 6/27/25 10,500 ( 57 ) — 10,443 10,250 — 193 —

Total dispositions $ 81,186 $ ( 8,943 ) $ ( 5,400 ) $ 66,843 $ 71,310 $ 148 $ 785 405,858

1 Includes two medical outpatient properties.

2 The Company provided seller financing of approximately $ 5.4 million in connection with this sale.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Subsequent to June 30, 2025, the Company disposed of the following properties, which were classified as held for sale as of June 30, 2025:

Dollars in thousands Date Disposed Sale Price Square Footage

South Bend, IN 7/15/25 $ 43,100 205,573

Milwaukee, WI 1

7/29/25 42,000 147,406

Naples, FL 7/29/25 19,250 61,359

New York, NY 7/30/25 25,000 89,893

Total $ 129,350 504,231

1 Includes two medical outpatient properties.

Assets Held for Sale

The Company had two properties classified as assets held for sale as of March 31, 2025, and three properties classified as assets held for sale as of December 31, 2024.

The table below reflects the assets and liabilities classified as held for sale as of March 31, 2025 and December 31, 2024:

Dollars in thousands March 31, 2025 December 31, 2024

The Company had 25 properties and a land parcel held for development classified as assets held for sale as of June 30, 2025, and three properties classified as assets held for sale as of December 31, 2024.

The table below reflects the assets and liabilities classified as held for sale as of June 30, 2025 and December 31, 2024:

Dollars in thousands June 30, 2025 December 31, 2024

Balance Sheet data:

2 unchanged sentences

Lease intangibles 25,768 3,286

Personal property 633 —

Land held for development 3,836 —

492,462 17,555

Accumulated depreciation ( 164,327 ) ( 5,275 )

Real estate assets held for sale, net 1

328,135 12,280

Cash and cash equivalents 151 —

Operating lease right-of-use assets 15,248 —

Other assets, net 14,673 617

1 unchanged sentence

Accounts payable and accrued liabilities $ 6,761 $ 694

Operating lease liabilities 19,384 —

Other liabilities 4,133 589

Liabilities of assets held for sale $ 30,278 $ 1,283

1 Net real estate assets held for sale include the impact of $ 2.5 million of impairment charges for the three months ended March 31, 2025.

Redeemable noncontrolling interest held for sale $ 1,221 $ —

1 Net real estate assets held for sale include the impact of $ 54.5 million of impairment charges for the six months ended June 30, 2025.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Lessor Accounting

8 unchanged sentences

Variable payments are recognized in the period earned.

Lease income for the Company's operating leases, recognized for the three months ended March 31, 2025 and 2024, was $ 288.9 million and $ 318.1 million, respectively.

Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sales-type lease, as of March 31, 2025, were as follows:

Lease income for the Company's operating leases, recognized for the three and six months ended June 30, 2025 was $ 287.1 million and $ 575.9 million, respectively.

Lease income for the Company's operating leases, recognized for the three and six months ended June 30, 2024 was $ 308.1 million and $ 626.2 million, respectively.

Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sales-type lease, as of June 30, 2025, were as follows:

Dollars in thousands OPERATING

1 unchanged sentence

2030 and thereafter 1,734,240

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Lessee Accounting

The Company has obligations, as the lessee, under operating lease agreements consisting primarily of the Company’s ground leases.

As of March 31, 2025, the Company had 215 ground leases associated with properties covering 16.1 million square feet.

As of June 30, 2025, the Company had 198 ground leases associated with properties covering 14.4 million square feet.

Some of the Company's ground lease renewal terms are based on fixed rent renewal terms, and others have market rent renewal terms.

1 unchanged sentence

Any rental increases related to the Company’s ground leases are generally stated in the lease or based on CPI.

The Company had 73 prepaid ground leases as of March 31, 2025.

The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $ 0.3 million of the Company's rental expense for each of the three months ended March 31, 2025 and 2024.

The Company’s future lease payments (primarily for its 142 non-prepaid ground leases) as of March 31, 2025, were as follows:

The Company had 68 prepaid ground leases as of June 30, 2025.

The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $ 0.3 million and $ 0.5 million of the Company's rental expense for each of the three months ended June 30, 2025 and 2024, respectively, and $ 0.7 million and $ 0.9 million for each of the six months ended June 30, 2025 and 2024, respectively.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

The Company’s future lease payments (primarily for its 130 non-prepaid ground leases), excluding amounts due for held for sale properties, as of June 30, 2025, were as follows:

Dollars in thousands OPERATING FINANCING

8 unchanged sentences

Lease liabilities $ 203,678 $ 73,019

The following table provides details of the Company's total lease expense for the three months ended March 31, 2025 and 2024:

The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2025 and 2024:

THREE MONTHS ENDED

June 30, SIX MONTHS ENDED

Dollars in thousands 2025 2024 2025 2024

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Financing cash flows outflows related to financing leases $ 5 $ 4 $ 139 $ 30

Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ 2,561 $ — $ 2,561

Weighted-average years remaining lease term (excluding renewal options) - operating leases 41.9 45.9

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Notes and Bonds Payable

The table below details the Company’s notes and bonds payable as of March 31, 2025 and December 31, 2024.

The table below details the Company’s notes and bonds payable as of June 30, 2025 and December 31, 2024.

MATURITY DATE BALANCE 1 AS OF

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Senior Notes due 2025 5

5/25 — 249,868 4.12 %

Senior Notes due 2026

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1 Balance is presented net of discounts and issuance costs and inclusive of premiums, where applicable.

2 As of March 31, 2025, the Company had $ 1.4 billion available to be drawn on its $ 1.5 billion Unsecured Credit Facility.

3 In January 2025, the Company repaid $ 25 million of the $ 200 million Unsecured term Loan.

2 As of June 30, 2025, the Company had $ 1.2 billion available to be drawn on its $ 1.5 billion Unsecured Credit Facility.

3 In January 2025, the Company repaid $ 25 million of the $ 200 million Unsecured term Loan.

Subsequent Debt Activity

In April 2025, the Company exercised its second of two options to extend the maturity date of the $ 200 million Unsecured Term Loan due May 2025 to January 2026 for a fee of approximately $ 0.1 million.

The loan also was amended to include a four-month extension option, resulting in a latest final maturity in May 2026.

4 In January 2025, the Company repaid $ 10 million of the $ 300 million Unsecured term Loan due October 2025.

5 In May 2025, the Company repaid its Senior Notes due 2025 at maturity including $ 250 million of principal and $ 4.8 million of accrued interest.

Changes in Debt Structure

On April 8, 2025, the Company exercised its second of two options to extend the maturity date of the $ 200 million Unsecured Term Loan due May 2025 to January 2026 for a fee of approximately $ 0.1 million.

The loan also was amended to include a four-month extension option, which would extend the final maturity to May 2026.

On May 1, 2025, the Company repaid its Senior Notes due 2025 at maturity including $ 250 million of principal and $ 4.8 million of accrued interest.

On July 25, 2025, the Company entered into the Fifth Amended and Restated Revolving Credit and Term Loan Agreement (the “ New Credit Facility ”) with Wells Fargo Bank, National Association, as Administrative Agent;

Wells Fargo Securities, LLC and JPMorgan Chase Bank, N.A.

as Joint Book Runners;

Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., PNC Capital Markets LLC, U.S.

Bank National Association, The Bank of Nova Scotia, and BofA Securities, Inc., as Joint Lead Arrangers;

and the other lenders named therein.

The New Credit Facility provides for (i) a $ 1.5 billion unsecured revolving credit facility (the “Revolver”) and (ii) five individual unsecured term loan tranches totaling $ 1.115 billion.

The OP is the borrower under the New Credit Facility (in such capacity, the “ Borrower ”).

A summary of the principal terms of the New Credit Facility and the New Credit Facility's effect on the Company's existing revolving credit term loan facilities is as follows:

• The New Credit Facility replaces the Unsecured Credit Facility.

All outstanding obligations due under the Unsecured Credit Facility were reallocated to the lenders under the New Credit Facility.

• The Company’s $ 1.5 billion Revolver was continued with a maturity extension from October 31, 2025 to July 25, 2029, with two six-month extension options.

The Revolver includes a sublimit of $ 120 million for letters of credit.

• The previously funded $ 175 million term loan was continued with a maturity date of January 31, 2026 and three extension options totaling 16 months.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

• The previously funded $ 150 million term loan was continued with a maturity date of June 1, 2026, with two extension options of six months each.

• The previously funded $ 290 million term loan was continued with a maturity date of October 31, 2025, with four extension options totaling 24 months.

• The previously funded $ 200 million term loan was continued with a maturity date of July 20, 2027, with two extension options of 12 months each.

• The previously funded $ 300 million term loan was continued with a maturity date of January 20, 2028, with one extension option of 12 months.

Revolving loans outstanding under the New Credit Facility bear interest at a floating rate equal to the daily simple Secured Overnight Financing Rate ("SOFR"), term SOFR or base rates, as applicable, plus an applicable margin.

The applicable margin is determined based on the Borrower’s credit ratings and ranges from 0.725 % per annum to 1.40 % per annum (currently 0.85 % per annum).

Term loans outstanding under the New Credit Facility bear interest at a rate equal to Term SOFR rates plus an applicable margin.

The applicable margin is determined based on the Borrower’s credit ratings and ranges from 0.80 % per annum to 1.60 % per annum (currently 0.95 % per annum).

In addition, the Borrower pays a facility fee on the Revolver commitments at a rate per annum determined based on the Borrower’s credit ratings and ranging from 0.125 % per annum to 0.30 % per annum (currently 0.20 % per annum).

Except as set forth above, the principal terms of the New Credit Facility are substantially consistent with the terms of the Unsecured Credit Facility.

Specifically, the New Credit Facility contains representations and warranties and affirmative and negative covenants that are customary for facilities of this size and type.

These covenants include, among others:

limitations on the incurrence of additional indebtedness;

limitations on mergers, investments and acquisitions;

limitations on dividends and redemptions of capital stock;

limitations on transactions with affiliates;

and requirements to comply with certain financial covenants, including a maximum consolidated leverage ratio, a maximum consolidated secured leverage ratio, a maximum consolidated unencumbered leverage ratio, a minimum fixed charge coverage ratio and a minimum unsecured coverage ratio.

Derivative Financial Instruments

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Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements.

The Company’s objectives in using interest rate swaps are to add stability to interest expense and to manage its exposure to interest rate movements.

To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy.

1 unchanged sentence

Such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

For derivatives designated, and that qualify, as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income (Loss) ("AOCI") and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings.

Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt.

As of March 31, 2025, the Company had 15 outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

AMOUNT WEIGHTED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

As of June 30, 2025, the Company had 15 outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk:

MATURITY AMOUNT WEIGHTED

May 2026 $ 275,000 3.74 %

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Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company's derivative financial instruments and their classification on the Condensed Consolidated Balance Sheet as of March 31, 2025 and December 31, 2024.

AS OF MARCH 31, 2025 AS OF DECEMBER 31, 2024

The table below presents the fair value of the Company's derivative financial instruments and their classification on the Condensed Consolidated Balance Sheet as of June 30, 2025 and December 31, 2024.

AS OF JUNE 30, 2025 AS OF DECEMBER 31, 2024

In thousands BALANCE SHEET LOCATION FAIR VALUE BALANCE SHEET LOCATION FAIR VALUE

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Tabular Disclosure of the Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss)

The table below presents the effect of cash flow hedge accounting on AOCI during the three months ended March 31, 2025 and 2024 related to the Company's outstanding interest rate swaps.

The table below presents the effect of cash flow hedge accounting on AOCI during the three and six months ended June 30, 2025 and 2024 related to the Company's outstanding interest rate swaps.

(GAIN)/LOSS RECOGNIZED IN

AOCI ON DERIVATIVE

three months ended March 31, (GAIN)/LOSS RECLASSIFIED FROM

three months ended June 30, (GAIN)/LOSS RECLASSIFIED FROM

AOCI INTO INCOME

three months ended March 31,

three months ended June 30,

In thousands 2025 2024 2025 2024

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$ 1,028 $ ( 5,891 ) Total interest expense $ ( 980 ) $ ( 3,662 )

(GAIN)/LOSS RECOGNIZED IN

AOCI ON DERIVATIVE

six months ended June 30, (GAIN)/LOSS RECLASSIFIED FROM

AOCI INTO INCOME

six months ended June 30,

In thousands 2025 2024 2025 2024

Interest rate swaps $ 6,206 $ ( 25,501 ) Interest expense $ ( 2,188 ) $ ( 7,825 )

Settled treasury hedges — — Interest expense 214 213

Settled interest rate swaps — — Interest expense 53 84

$ 6,206 $ ( 25,501 ) Total interest expense $ ( 1,921 ) $ ( 7,528 )

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

The Company estimates that an additional $ 1.2 million will be reclassified from accumulated other comprehensive loss as a net decrease to interest expense over the next 12 months.

Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision that provides if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.

As of March 31, 2025, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $ 5.2 million .

As of March 31, 2025, the Company had not posted any collateral related to these agreements and was not in breach of any agreement provisions.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

The Company has agreements with each of its derivative counterparties providing that if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.

As of June 30, 2025, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $ 7.3 million .

As of June 30, 2025, the Company had not posted any collateral related to these agreements and was not in breach of any agreement provisions.

Commitments and Contingencies

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Stockholders' Equity

The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the three months ended March 31, 2025, and the twelve months ended December 31, 2024:

THREE MONTHS ENDED MARCH 31, 2025 TWELVE MONTHS ENDED DECEMBER 31, 2024

The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the six months ended June 30, 2025, and the twelve months ended December 31, 2024:

SIX MONTHS ENDED JUNE 30, 2025 TWELVE MONTHS ENDED DECEMBER 31, 2024

Balance, beginning of period 350,532,006 380,964,433

5 unchanged sentences

Common Stock Dividends

During the three months ended March 31, 2025, the Company declared and paid common stock dividends totaling $ 0.31 per share.

On May 1, 2025, the Company declared a quarterly common stock dividend in the amount of $ 0.31 per share payable on May 23, 2025 to stockholders of record on May 12, 2025.

During the six months ended June 30, 2025, the Company declared and paid common stock dividends totaling $ 0.62 per share.

On July 31, 2025, the Company declared a quarterly common stock dividend in the amount of $ 0.24 per share payable on August 28, 2025 to stockholders of record on August 14, 2025.

Common Stock Repurchases

On October 29, 2024, the Company's Board of Directors authorized the repurchase of up to $ 300.0 million of outstanding shares of the Company's common stock, superseding the previous stock repurchase authorization.

The stock repurchase authorization expires on October 28, 2025, and the Company may suspend or terminate repurchases at any time without prior notice.

As of December 31, 2024, the Company had repurchased 3,679,162 shares for $ 63.0 million under this authorization.

The Company has not repurchased shares in 2025.

As of March 31, 2025, the Company had $ 237.0 million remaining under this authorization.

As of June 30, 2025, the Company had $ 237.0 million remaining under this authorization.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

2 unchanged sentences

The Company's non-vested share-based awards are considered participating securities pursuant to the two-class method.

The following table sets forth the computation of basic and diluted earnings per common share for the three months ended March 31, 2025 and 2024.

THREE MONTHS ENDED MARCH 31,

The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2025 and 2024.

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,

Dollars in thousands, except per share data 2025 2024 2025 2024

Weighted average common shares outstanding 351,411,541 374,498,770 351,086,883 377,916,989

Weighted average common shares outstanding 350,758,618 381,335,208

Non-vested shares ( 1,783,234 ) ( 2,021,471 ) ( 1,502,983 ) ( 1,954,956 )

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Diluted earnings per common share - net loss $ ( 0.45 ) $ ( 0.39 ) $ ( 0.58 ) $ ( 1.22 )

The effect of OP Units redeemable for 3,665,625 shares of common stock for the three months ended March 31, 2025 were excluded from the calculation of diluted loss per common share because the effect was anti-dilutive due to the loss from continuing operations incurred during those periods.

The effect of OP Units redeemable for 4,161,628 shares and 3,914,997 shares of common stock for the three and six months ended June 30, 2025, respectively, were excluded from the calculation of diluted loss per common share because the effect was anti-dilutive due to the loss from continuing operations incurred during those periods.

Stock Incentive Plan

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Equity Incentive Plans

During the three months ended March 31, 2025, the Company made the following equity awards under the Incentive Plan:

During the six months ended June 30, 2025, the Company made the following equity awards under the Incentive Plan:

Restricted Stock

During the first quarter of 2025, the Company granted non-vested stock awards to its named executive officers and other members of senior management with an aggregate grant date fair value of $ 7.9 million, which consisted of an aggregate of 477,226 non-vested shares of common stock with vesting periods ranging from three to eight years .

• On February 11, 2025, the Company granted an aggregate of 275,735 restricted stock units ("RSUs") to members of senior management, subject to a three-year performance period, with an aggregate grant date fair value of $ 5.4 million.

The RSUs vest based on relative total shareholder return ("TSR") and were valued using independent specialists.

The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair value of $ 19.47 for the February 2025 grant using the following assumptions:

During the second quarter of 2025, the Company granted non-vested stock awards to its named executive officers and other members of senior management with an aggregate grant date fair value of $ 7.8 million, which consisted of an aggregate of 499,323 non-vested shares of common stock with vesting periods ranging from three to four years .

The Company also granted to independent directors an aggregate of 72,144 shares of non-vested stock with a grant date fair value of $ 1.1 million, and an aggregate of 34,586 LTIP Series D units in the OP with a grant date fair value of $ 0.5 million.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Restricted Stock Units ("RSUs")

On February 11, 2025, the Company granted an aggregate of 275,735 RSUs to members of senior management, subject to a three-year performance period, with an aggregate grant date fair value of $ 5.4 million.

During the second quarter of 2025 , the Company granted an aggregate of 16,038 RSUs to members of senior management, subject to a three-year performance period, with an aggregate grant date fair value of $ 0.3 million.

The RSUs vest based on relative total shareholder return ("TSR") performance and were valued using independent specialists.

The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair value of $ 19.47 for the RSU grants using the following assumptions:

Volatility 28.0 %

3 unchanged sentences

Stock price (per share) $ 16.17

The Company records amortization expense based on the Monte Carlo simulation throughout the performance period.

• On February 11, 2025, the Company granted an aggregate of 166,976 LTIP Series C units ("LTIP-C units") in the OP to its named executive officers with three-year forward-looking performance targets, a three-year vesting period and an aggregate grant date fair value of $ 1.6 million.

The LTIP-C units vest based on relative TSR and were valued using independent specialists.

LTIP Series C Units ("LTIP-C units")

On February 11, 2025, the Company granted an aggregate of 166,976 LTIP-C units in the OP to its named executive officers with three-year forward-looking performance targets, a three-year vesting period and an aggregate grant date fair value of $ 1.6 million.

The LTIP-C units in the OP vest based on relative TSR performance and were valued using independent specialists.

The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair value of $ 9.88 for the February 2025 grant using the following assumptions:

5 unchanged sentences

The Company records amortization expense based on the Monte Carlo simulation throughout the performance period.

The following table represents the summary of non-vested share-based awards under the Incentive Plan for the three months ended March 31, 2025, and 2024:

THREE MONTHS ENDED MARCH 31,

On April 15, 2025, the Company granted 347,770 LTIP-C units in the OP to its newly appointed Chief Executive Officer with three-year forward-looking performance targets, a three-year vesting period and an aggregate grant date fair value of $ 3.4 million.

The LTIP-C units in the OP vest based on relative TSR performance and were valued using independent specialists.

The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair value of $ 9.83 for the April 2025 grant using the following assumptions:

Volatility 27.0 %

Dividend assumption Accrued

Expected term 3 years

Risk-free rate 3.80 %

Stock price (per share) $ 15.70

The Company records amortization expense based on the Monte Carlo simulation throughout the performance period.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

The following table represents the summary of non-vested share-based awards under the Incentive Plan for the three and six months ended June 30, 2025, and 2024:

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,

2025 2024 2025 2024

Share-based awards, beginning of period 2,619,942 4,043,154 1,799,737 2,615,562

4 unchanged sentences

Share-based awards, end of period 3,287,131 4,085,059 3,287,131 4,085,059

1 LTIP-C units are issued at the maximum number of units of the award and are reflected as such in this table until the performance conditions have been satisfied, and the exact number of awards are determinable.

During the three months ended March 31, 2025 and 2024, the Company withheld 13,063 and 8,228 shares of common stock, respectively, from participants to pay estimated withholding taxes related to shares that vested.

The following table represents expected amortization of the Company's non-vested awards issued as of March 31, 2025:

1 LTIP-C units in the OP are issued at the maximum number of units of the award and are reflected as such in this table until the performance conditions have been satisfied, and the exact number of awards are determinable.

During the three months ended June 30, 2025, and 2024, the Company withheld 72,853 and 8,228 shares of common stock, respectively, from participants to pay estimated withholding taxes related to shares that vested.

The following table represents expected amortization of the Company's non-vested awards issued as of June 30, 2025:

Dollars in millions FUTURE AMORTIZATION

1 unchanged sentence

2029 and thereafter 0.9

Subsequent Activity

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

On April 15, 2025, the Company granted the following awards to it's CEO:

• Non-vested stock awards with a grant date fair value of $ 5.7 million, which consisted of 366,242 non-vested shares of common stock with a vesting period of four years .

• Non-vested stock awards with a grant date fair value of $ 1.2 million, which consisted of 74,522 non-vested shares of common stock with a vesting period of three years .

• LTIP Series C units in the OP with three-year forward-looking performance targets and a three-year vesting period, which consisted of 347,770 units with an approximate grant date fair value of $ 3.9 million.

Fair Value of Financial Instruments

1 unchanged sentence

• Cash and cash equivalents - The carrying amount approximates fair value (level 1 inputs) due to the short-term maturity of these investments.

• Real estate notes receivabl e - Real estate notes receivable are recorded in other assets on the Company's Condensed Consolidated Balance Sheets.

• Real estate notes receivable - Real estate notes receivable are recorded in other assets on the Company's Condensed Consolidated Balance Sheets.

Fair value is estimated using cash flow analyses, based on current interest rates for similar types of arrangements using level 2 inputs in the hierarchy.

5 unchanged sentences

See Note 5 for additional information.

The table below details the fair values and carrying values for notes and bonds payable and real estate notes receivable as of March 31, 2025, and December 31, 2024:

March 31, 2025 December 31, 2024

The table below details the fair values and carrying values for notes and bonds payable and real estate notes receivable as of June 30, 2025, and December 31, 2024:

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

June 30, 2025 December 31, 2024

Dollars in millions CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE

3 unchanged sentences

1 Level 2 – model-derived valuations in which significant inputs and significant value drivers are observable in active markets.

2 Fair value for senior notes includes accrued interest as of March 31, 2025.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

2 Fair value for senior notes includes accrued interest as of June 30, 2025.

Segment Reporting

4 unchanged sentences

Pursuant to ASU 2023-07, Segment Reporting (Topic 280), public entities are required to disclose more detailed information about significant reportable segment expenses that are regularly provided to the CODM.

The table below details the significant expenses for the three months ended March 31, 2025, and 2024.

THREE MONTHS ENDED MARCH 31,

The table below details the significant expenses for the three and six months ended June 30, 2025, and 2024.

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,

Dollars in thousands 2025 2024 2025 2024

5 unchanged sentences

Totals $ 100,185 $ 105,666 $ 204,072 $ 216,934

The following schedule reconciles net loss to segment expenses.

THREE MONTHS ENDED MARCH 31,

The following schedule reconciles net loss to segment expenses for the three and six months ended June 30, 2025, and 2024.

THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,

Dollars in thousands 2025 2024 2025 2024

17 unchanged sentences

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 1. Financial Statements