What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-10-31 compared with 2025-08-01 · 209 added, 148 removed, 714 unchanged (33% of the section changed)

3 unchanged sentences

Amounts in thousands, except per share data

JUNE 30, 2025

SEPTEMBER 30, 2025

DECEMBER 31, 2024

33 unchanged sentences

1,000,000 shares authorized;

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

351,604 and 350,532 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

Additional paid-in capital 9,134,486 9,118,229

9 unchanged sentences

Condensed Consolidated Statements of Operations

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

For the Three and Nine Months Ended September 30, 2025 and 2024

Amounts in thousands, except per share data

THREE MONTHS ENDED

June 30, SIX MONTHS ENDED

September 30, NINE MONTHS ENDED

September 30,

2025 2024 2025 2024

11 unchanged sentences

Interest expense ( 52,642 ) ( 60,649 ) ( 160,800 ) ( 184,159 )

Loss on extinguishment of debt ( 286 ) — ( 286 ) —

Impairment of real estate properties and credit loss reserves ( 104,362 ) ( 84,394 ) ( 258,791 ) ( 232,450 )

13 unchanged sentences

Condensed Consolidated Statements of Comprehensive Loss

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

For the Three and Nine Months Ended September 30, 2025 and 2024

Amounts in thousands

THREE MONTHS ENDED

June 30, SIX MONTHS ENDED

September 30, NINE MONTHS ENDED

September 30,

2025 2024 2025 2024

2 unchanged sentences

Interest rate derivatives

Reclassification adjustments for gains included in interest expense ( 980 ) ( 3,662 ) ( 1,921 ) ( 7,528 )

(Losses) gains arising during the period on interest rate swaps ( 1,028 ) 5,891 ( 6,206 ) 25,501

Reclassification adjustments for losses (gains) included in interest and other expense 1,798 ( 3,641 ) ( 123 ) ( 11,169 )

Gains (losses) arising during the period on interest rate swaps 837 ( 20,662 ) ( 5,328 ) 4,839

Gains on settlement of interest rate swaps arising during the period 127 — 86 —

2,762 ( 24,303 ) ( 5,365 ) ( 6,330 )

5 unchanged sentences

Condensed Consolidated Statements of Equity and Redeemable Non-Controlling Interests

For the Three Months Ended June 30, 2025 and 2024

For the Three Months Ended September 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

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

Common stock redemptions ( 1 ) ( 2,084 ) — — — ( 2,085 ) — ( 2,085 ) —

1 unchanged sentence

Share-based compensation — 7,233 — — — 7,233 — 7,233 —

Redemption of non-controlling interest — — — — — — ( 346 ) ( 346 ) —

Net loss — — — ( 57,738 ) — ( 57,738 ) ( 806 ) ( 58,544 ) —

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

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

— — 1,773 — — 1,773 25 1,798 —

Losses arising during the period on interest rate swaps

Gains arising during the period on interest rate swaps

— — 951 — — 951 13 964 —

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

Dividends to common stockholders and distributions to non-controlling interest holders ($ 0.24 per share)

— — — — ( 84,514 ) ( 84,514 ) ( 1,086 ) ( 85,600 ) —

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

Balance at September 30, 2025 $ 3,516 $ 9,134,486 $ ( 6,461 ) $ 113,847 $ ( 4,562,454 ) $ 4,682,934 $ 57,580 $ 4,740,514 $ 4,332

Stock Additional

7 unchanged sentences

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 ) —

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

Share-based compensation — 7,908 — — — 7,908 — 7,908 —

Common stock repurchases ( 85 ) ( 149,932 ) — — — ( 150,017 ) — ( 150,017 ) —

Redemption of non-controlling interest — — — — — — ( 625 ) ( 625 ) —

Net loss — — — ( 93,023 ) — ( 93,023 ) ( 1,512 ) ( 94,535 ) —

1 unchanged sentence

— — ( 3,588 ) — — ( 3,588 ) ( 53 ) ( 3,641 ) —

Gains arising during the period on interest rate swaps

Losses arising during the period on interest rate swaps

— — ( 20,361 ) — — ( 20,361 ) ( 301 ) ( 20,662 ) —

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)

— — — — ( 112,635 ) ( 112,635 ) ( 1,138 ) ( 113,773 ) —

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

Balance at September 30, 2024 $ 3,558 $ 9,198,004 $ ( 16,963 ) $ 481,155 $ ( 4,150,328 ) $ 5,515,426 $ 80,046 $ 5,595,472 $ 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

For the Nine Months Ended September 30, 2025 and 2024

Amounts in thousands, except per share data

21 unchanged sentences

— — — — ( 302,440 ) ( 302,440 ) ( 3,874 ) ( 306,314 ) —

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

Balance at September 30, 2025 $ 3,516 $ 9,134,486 $ ( 6,461 ) $ 113,847 $ ( 4,562,454 ) $ 4,682,934 $ 57,580 $ 4,740,514 $ 4,332

Stock Additional

13 unchanged sentences

Common stock repurchases ( 257 ) ( 422,813 ) — — — ( 423,070 ) — ( 423,070 ) —

Redemption of non-controlling interest — — — — — — ( 625 ) ( 625 ) —

Net loss — — — ( 547,639 ) — ( 547,639 ) ( 8,053 ) ( 555,692 ) —

7 unchanged sentences

— — — — ( 348,535 ) ( 348,535 ) ( 4,008 ) ( 352,543 ) —

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

Balance at September 30, 2024 $ 3,558 $ 9,198,004 $ ( 16,963 ) $ 481,155 $ ( 4,150,328 ) $ 5,515,426 $ 80,046 $ 5,595,472 $ 3,875

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2025 and 2024

For the Nine Months Ended September 30, 2025 and 2024

Amounts in thousands

OPERATING ACTIVITIES

SIX MONTHS ENDED

NINE MONTHS ENDED

September 30,

Net loss $ ( 264,076 ) $ ( 555,692 )

6 unchanged sentences

Gain on sales of real estate properties and other assets ( 99,678 ) ( 77,670 )

Loss on extinguishment of debt 286 —

Loss on derivatives 2,844 —

Impairment of real estate properties and credit loss reserves 258,791 232,450

13 unchanged sentences

Investments in unconsolidated joint ventures ( 1,546 ) —

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

Investment in financing receivable ( 497 ) ( 22 )

Contributions from redeemable non-controlling interests — 13

2 unchanged sentences

Proceeds from notes receivable repayments 53,513 861

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

Net cash provided by investing activities 184,344 482,149

FINANCING ACTIVITIES

Net borrowings on unsecured credit facility 295,000 250,000

Borrowings on unsecured credit facility 831,000 1,081,000

Repayments on unsecured credit facility ( 682,000 ) ( 875,000 )

Repayment on term loans ( 108,532 ) ( 250,000 )

14 unchanged sentences

Cash and cash equivalents at end of period $ 43,345 $ 22,801

Supplemental Cash Flow Information SIX MONTHS ENDED

Supplemental Cash Flow Information NINE MONTHS ENDED

September 30,

Interest paid $ 160,215 $ 177,507

9 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 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.

As of September 30, 2025, the Company had gross investments of approximately $ 10.4 billion in 519 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 September 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 28 states and total approximately 29.8 million square feet.

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

The Company provided leasing and property management services to 93 % of its portfolio nationwide as of September 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 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.

As of September 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.

13 unchanged sentences

The Company consolidates its investment in a VIE when it determines that it is the VIE’s primary beneficiary, with any minority interests reflected as non-controlling interests or redeemable non-controlling interests in the accompanying Condensed Consolidated Financial Statements.

The Company may change its original assessment of a VIE upon subsequent events, such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk, the disposition of all or a portion of an interest held by the primary beneficiary, or changes in facts and circumstances

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

that impact the power to direct activities of the VIE that most significantly impacts economic performance.

disposition of all or a portion of an interest held by the primary beneficiary, or changes in facts and circumstances that impact the power to direct activities of the VIE that most significantly impacts economic performance.

The Company performs this analysis on an ongoing basis.

6 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 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.

As of September 30, 2025, there were approximately 4.9 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 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

As of September 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 September 30, 2025 and December 31, 2024:

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

Total real estate investments, net

9 unchanged sentences

$ 72,640 $ 63,001

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

As of September 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 the joint venture arrangement under the equity method.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

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

6 unchanged sentences

2 The Company provided seller financing and entered into a mortgage loan and a mezzanine loan in connection with a property disposition.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

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.

As of September 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.

2 unchanged sentences

Actual results may differ from those estimates.

Reclassifications

C ertain reclassifications have been made on the Company's Condensed Consolidated Statement of Cash Flows to conform to current year presentation.

Previously, the Company's borrowings and repayments on the Company's unsecured credit facility were presented in a net line in the financing activities on the Company's Condensed Consolidated Statement of Cash Flows.

These amounts are now presented as separate lines in the financing activities on the Company's Condensed Consolidated Statement of Cash Flows.

Segment Reporting

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

As of September 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 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.

During the three and nine months ended September 30,

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

2025, the Company recognized real estate impairments totaling $ 104.4 million and $ 255.4 million, respectively, as a result of the indicators described above.

As of September 30, 2025, eight real estate properties totaling $ 102.7 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.

3 unchanged sentences

Leases, for transactions in which the Company enters into a contract to acquire an asset and leases it back to the seller (i.e., a sale leaseback transaction), control of the asset is not considered to have transferred when the seller-lessee has a purchase option.

As a result, the Company does not recognize the underlying

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

real estate assets but instead recognizes a financial asset in accordance with ASC Topic 310:

As a result, the Company does not recognize the underlying real estate assets but instead recognizes a financial asset in accordance with ASC Topic 310:

See below for additional information regarding the Company's financing receivables.

(dollars in thousands) CARRYING VALUE AS OF

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

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

May 2021 Poway, CA 5.62 % $ 117,376 $ 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 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

As of September 30, 2025, real estate notes receivable, net, which are included in Other assets on the Company's Condensed Consolidated Balance Sheets, totaled $ 84.1 million.

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

Mezzanine loans

1 unchanged sentence

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

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

3/20/2025 3/19/2030 13.00 % 8,500 6,027 170 — — 6,197

19,000 12,028 206 — — 12,234

Mortgage loans

9 unchanged sentences

$ 195,979 $ 99,893 $ 2,470 $ ( 18,272 ) $ — $ 84,091

1 Outstanding principal and interest due upon maturity.

2 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.

In January 2025, the underlying collateral for this loan was sold and the Company received $ 14.9 million towards the principal balance of this loan.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

3 Outstanding principal and interest due upon maturity.

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 an allowance for credit loss of $ 1.5 million was needed on this loan.

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

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

6 unchanged sentences

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.

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.

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.

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.

6 unchanged sentences

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

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

Dollars in thousands NINE MONTHS ENDED SEPTEMBER 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 $ 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.

The Company recognized the related income from two financing receivables totaling $ 2.0 million and $ 5.9 million , respectively, for the three and nine months ended September 30, 2025, and $ 2.1 million and $ 6.3 million, respectively, for the three and nine months ended September 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 $ 1.5 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 recognized interest income related to real estate notes receivable of $ 1.5 million and $ 4.7 million , respectively, for the three and nine months ended September 30, 2025, and $ 1.8 million and $ 6.0 million, respectively, for the three and nine months ended September 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 June 30, 2025, the Company had two loans on non-accrual status.

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

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

September 30, NINE MONTHS ENDED

September 30,

in thousands 2025 2024 2025 2024

16 unchanged sentences

Early adoption is permitted.

The Company is evaluating the impact of the adoption of this ASU on its consolidated financial statements and compliance with these new disclosure requirements will begin with the Company's Annual Report on Form 10-K for the year ended December 31, 2027.

Real Estate Investments

2025 Acquisition Activity

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

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

Unconsolidated Joint Ventures

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:

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

THREE MONTHS ENDED

June 30, SIX MONTHS ENDED

September 30, NINE MONTHS ENDED

September 30,

Dollars in thousands 2025 2024 2025 2024

1 unchanged sentence

New investment during the period 1

567 44,332 1,546 110,879

Equity income (loss) recognized during the period 287 208 446 ( 360 )

1 unchanged sentence

Investments in unconsolidated joint ventures, end of period $ 458,627 $ 417,084 $ 458,627 $ 417,084

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

In the third quarter of 2024, the Company contributed seven properties into a new joint venture in which it retained a 20 % ownership interest.

2025 Real Estate Asset Dispositions

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

The following table details the Company's dispositions for the nine months ended September 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

7 unchanged sentences

Houston, TX 6/27/25 10,500 ( 15 ) — 10,485 10,250 42 193 —

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

1 Includes two medical outpatient properties.

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 ( 283 ) — 42,817 29,481 ( 7 ) 13,343 205,573

Milwaukee, WI 7/29/25 42,000 ( 913 ) — 41,087 40,644 270 173 147,406

7/29/25 42,000 147,406

Naples, FL 7/29/25 19,250 ( 2,692 ) — 16,558 15,586 559 413 61,359

New York, NY 7/30/25 25,000 ( 1,290 ) — 23,710 15,531 364 7,815 89,893

Total $ 129,350 504,231

Boston, MA 8/25/25 450 ( 45 ) — 405 413 32 ( 40 ) 9,010

Lakeland, FL 2

8/27/25 7,325 ( 772 ) — 6,553 6,899 234 ( 580 ) 31,158

Salem, OR 8/29/25 4,000 ( 427 ) — 3,573 3,482 159 ( 68 ) 21,026

Milwaukee, WI 1

9/29/25 60,000 ( 2,203 ) — 57,797 61,485 ( 2,884 ) ( 804 ) 220,747

Tampa, FL 9/30/25 22,000 ( 778 ) — 21,222 6,218 646 14,358 47,962

Dallas, TX 2 4

9/30/25 58,800 ( 1,885 ) — 56,915 26,822 5,379 24,714 448,879

Chicago, IL 9/30/25 18,700 ( 477 ) — 18,223 18,417 ( 181 ) ( 13 ) 56,531

Columbus, OH 3

9/30/25 33,750 ( 2,470 ) — 31,280 27,884 410 2,986 117,060

Miami, FL 9/30/25 62,000 ( 1,867 ) — 60,133 45,152 2,580 12,401 152,976

Total dispositions $ 477,561 $ ( 24,833 ) $ ( 5,400 ) $ 447,328 $ 369,324 $ 7,921 $ 75,483 2,015,438

1 Includes two medical outpatient properties.

2 Includes four medical outpatient properties.

3 Includes three medical outpatient properties.

4 Proceeds held in a cash escrow account and recorded in other assets.

Cash was received by the Company on October 1, 2025.

Subsequent to September 30, 2025, the Company disposed of the following land parcel and a property which was classified as held for sale as of September 30, 2025:

Dollars in thousands Date Disposed Sale Price Square Footage

New Haven, CT 10/16/25 $ 725 —

Des Moines, IA 10/29/25 7,225 152,655

Total $ 7,950 152,655

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Assets Held for Sale

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

The Company ha d 43 properties and two land parcels held for development classified as assets held for sale as of September 30, 2025, and three properties classified as assets held for sale as of December 31, 2024.

Of the 43 held for sale properties as of September 30, 2025, there were three portfolio disposal groups representing a total of 34 properties.

The Company determined that it is probable each portfolio disposal group would be sold as single transactions and not as individual properties.

On one of the portfolio disposal groups, an impairment charge of $ 2.5 million was recognized during the three months ended September 30, 2025.

For the other two portfolio disposal groups in aggregate no impairment was recognized.

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

Dollars in thousands September 30, 2025 December 31, 2024

Balance Sheet data:

3 unchanged sentences

Personal property 792 —

Financing lease right-of-use assets 727 —

Land held for development 3,836 —

9 unchanged sentences

Operating lease liabilities 47,150 —

Financing lease liabilities 623 —

Other liabilities 8,531 589

1 unchanged sentence

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.

1 Net real estate assets held for sale include the impact of $ 65.2 million of impairment charges for the nine months ended September 30, 2025.

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 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:

Lease income for the Company's operating leases, recognized for the three and nine months ended September 30, 2025 was

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

$ 287.4 million and $ 863.3 million, respectively.

Lease income for the Company's operating leases, recognized for the three and nine months ended September 30, 2024 was $ 306.5 million and $ 932.7 million, respectively.

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

Dollars in thousands OPERATING

3 unchanged sentences

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

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

As of September 30, 2025, the Company had 178 ground leases associated with properties covering 12.8 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 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:

The Company had 60 prepaid ground leases as of September 30, 2025.

The amortization of the prepaid rent, included in the operating lease right-of-use asset, represented approximately $ 0.3 million and $ 0.3 million of the Company's rental expense for each of the three months ended September 30, 2025 and 2024, respectively, and $ 1.0 million and $ 1.0 million for each of the nine months ended September 30, 2025 and 2024, respectively.

The Company’s future lease payments (primarily for its 118 non-prepaid ground leases), excluding amounts due for held for sale properties, as of September 30, 2025, were as follows:

Dollars in thousands OPERATING FINANCING

8 unchanged sentences

Lease liabilities $ 166,231 $ 72,654

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

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

THREE MONTHS ENDED

June 30, SIX MONTHS ENDED

September 30, NINE MONTHS ENDED

September 30,

Dollars in thousands 2025 2024 2025 2024

15 unchanged sentences

Weighted-average discount rate - finance leases 5.0 % 5.0 %

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Notes and Bonds Payable

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

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

MATURITY DATE 1

BALANCE AS OF 2

EFFECTIVE INTEREST RATE

26 unchanged sentences

$ 4,485,706 $ 4,662,771

1 Maturity date does not include extension options.

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

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.

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

3 As of September 30, 2025, the Company had $ 1.4 billion available to be drawn on its $ 1.5 billion Unsecured Credit Facility.

4 On October 7, 2025, the Company repaid the remaining principal in full.

5 On September 26, 2025, the Company exercised an option to extend the maturity date to January 2026 for a fee of approximately $ 0.1 million.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

6 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.

During the first quarter of 2025, the Company repaid $ 25.0 million of the $ 200 million Unsecured Term Loan due May 2025 and $ 10.0 million of the $ 300 million Unsecured Term Loan due October 2025.

On April 8, 2025, the Company exercised its final option 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 October 7, 2025, the Company fully repaid its $ 200 million Unsecured Term Loan due January 2026, which had a remaining balance of $ 151.3 million.

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;

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

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

3 unchanged sentences

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

At closing, $ 73.4 million of term loans were repaid.

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

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

• The Unsecured Credit Facility replaced the Company's prior revolving credit and term loan facility evidenced by that certain Fourth Amended and Restated Revolving Credit and Term Loan Agreement dated as of July 20, 2022 by and among the Company, the OP, Wells Fargo Bank, National Association, as Administrative Agent, and the other lenders identified therein, as amended (the “Prior Credit Facility”).

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

1 unchanged sentence

• The previously funded $ 200 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.

2 unchanged sentences

• 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.

Revolving loans outstanding under the Unsecured 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 0.84 % 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.

Term loans outstanding under the Unsecured 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 0.94 % or 1.04 % per annum).

In addition, the Borrower pays a facility fee on the Revolver commitments at a rate per

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

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 Unsecured Credit Facility are substantially consistent with the terms of the Prior Credit Facility.

Specifically, the Unsecured 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:

4 unchanged sentences

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.

On September 26, 2025, the Company exercised an option to extend the maturity date of the $ 300 million Unsecured Term Loan due October 2025 to January 2026 for a fee of approximately $ 0.1 million.

Derivative Financial Instruments

13 unchanged sentences

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

During the three months ended September 30, 2025, the Company reclassified $ 2.8 million of AOCI into "Interest and other (expense) income, net" on the Company's Condensed Consolidated Statements of Operations related to ineffective hedged transactions on eight interest rate swaps, which were previously designated as cash flow hedges of interest rate risk, due to projected debt repayments.

On October 7, 2025, the Company terminated interest rate swaps totaling $ 151.3 million, in connection with the repayment of the $ 200 million Unsecured Term Loan due January 2026.

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

MATURITY NOTIONAL AMOUNT WEIGHTED

May 2026 $ 100,000 2.15 %

June 2026 150,000 3.83 %

December 2026 150,000 3.84 %

3 unchanged sentences

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 June 30, 2025 and December 31, 2024.

AS OF JUNE 30, 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 September 30, 2025 and December 31, 2024.

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

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

6 unchanged sentences

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 and six months ended June 30, 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 nine months ended September 30, 2025 and 2024 related to the Company's outstanding interest rate swaps.

(GAIN)/LOSS RECOGNIZED IN

AOCI ON DERIVATIVE

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

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

AOCI INTO INCOME

three months ended June 30,

three months ended September 30,

In thousands 2025 2024 2025 2024

Interest rate swaps $ ( 837 ) $ 20,662 Interest expense $ ( 1,136 ) $ ( 3,790 )

Interest rate swaps — — Other expense 2,493 —

Settled treasury hedges — — Interest expense 107 107

Settled interest rate swaps ( 127 ) — Interest expense 40 42

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

Settled interest rate swaps — — Other expense 294 —

$ ( 964 ) $ 20,662 Total $ 1,798 $ ( 3,641 )

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

(GAIN)/LOSS RECOGNIZED IN

AOCI ON DERIVATIVE

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

nine months ended September 30, (GAIN)/LOSS RECLASSIFIED FROM

AOCI INTO INCOME

six months ended June 30,

nine months ended September 30,

In thousands 2025 2024 2025 2024

Interest rate swaps $ 5,328 $ ( 4,839 ) Interest expense $ ( 3,417 ) $ ( 11,615 )

Interest rate swaps — — Other expense 2,493 —

Settled treasury hedges — — Interest expense 320 126

Settled interest rate swaps ( 86 ) — Interest expense 187 320

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Settled interest rate swaps — — Other expense 294 —

$ 5,242 $ ( 4,839 ) Total $ ( 123 ) $ ( 11,169 )

The Company estimates that an additional $ 1.1 million will be reclassified from accumulated other comprehensive loss as a net decrease to interest expense over the next 12 months.

1 unchanged sentence

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.

As of September 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 $ 7.4 million .

As of September 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

3 unchanged sentences

Stockholders' Equity

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

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

NINE MONTHS ENDED SEPTEMBER 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 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.

During the nine months ended September 30, 2025, the Company declared and paid common stock dividends totaling $ 0.86 per share.

On October 30, 2025, the Company declared a quarterly common stock dividend in the amount of $ 0.24 per share payable on November 21, 2025 to stockholders of record on November 11, 2025.

Common Stock Repurchases

1 unchanged sentence

The Company has not repurchased shares in 2025.

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

As of September 30, 2025, the Company ha d $ 237.0 million remaining under this authorization.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

On October 28, 2025, the Company's Board of Directors authorized the repurchase of up to $ 500.0 million of outstanding shares of the Company's common stock, superseding the previous $ 300.0 million stock repurchase authorization.

The stock repurchase authorization expires on October 27, 2026, and the Company may suspend or terminate repurchases at any time without prior notice.

Under the Maryland General Corporation Law, outstanding shares of common stock acquired by a corporation become authorized but unissued shares, which may be re-issued.

Earnings Per Common Share

1 unchanged sentence

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 and six months ended June 30, 2025 and 2024.

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

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

THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,

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

12 unchanged sentences

Diluted earnings per common share - net loss $ ( 0.17 ) $ ( 0.26 ) $ ( 0.75 ) $ ( 1.49 )

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.

The effect of OP Units redeemable for 4,253,989 shares and 4,213,402 shares of common stock and Restricted Stock Units of 442,386 shares and 493,932 shares for the three and nine months ended September 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

2 unchanged sentences

Equity Incentive Plans

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

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

Restricted Stock

1 unchanged sentence

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.

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.

During the third quarter of 2025, the Company granted non-vested stock awards to members of its senior management with an aggregate grant date fair value of $ 0.5 million, which consisted of an aggregate of 27,946 non-vested shares of common stock with a three-year vesting period.

Restricted Stock Units ("RSUs")

9 unchanged sentences

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.

On February 11, 2025, the Company granted an aggregate of 166,976 LTIP-C units in the OP to its named executive officers subject to a three-year performance period with 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.

6 unchanged sentences

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

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.

On April 15, 2025, the Company granted 347,770 LTIP-C units in the OP to its newly appointed Chief Executive Officer subject to a three-year performance period with 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.

7 unchanged sentences

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,

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

THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,

2025 2024 2025 2024

6 unchanged sentences

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:

During the three months ended September 30, 2025 and 2024, the Company withheld 126,643 and no 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 September 30, 2025:

Dollars in millions FUTURE AMORTIZATION

7 unchanged sentences

However, the fair value of one note receivable was determined utilizing the fair value of the receivable's collateral, which was determined based on an executed purchase and sale agreement of the underlying collateral and therefore was classified as level 1 inputs in the hierarchy.

• Borrowings under the Unsecured Credit Facility and the Term Loans Due 2024 and 2026 - The carrying amount approximates fair value because the borrowings are based on variable market interest rates.

• Borrowings under the unsecured credit facility and the Term Loans - The carrying amount approximates fair value because the borrowings are based on variable market interest rates.

• Senior Notes and Mortgage Notes payable - The fair value of notes and bonds payable is estimated using cash flow analyses, based on the Company’s current interest rates for similar types of borrowing arrangements.

2 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 June 30, 2025, and December 31, 2024:

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

June 30, 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 September 30, 2025, and December 31, 2024:

September 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 June 30, 2025.

2 Fair value for senior notes includes accrued interest as of September 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 and six months ended June 30, 2025, and 2024.

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

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

THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,

Dollars in thousands 2025 2024 2025 2024

5 unchanged sentences

Totals $ 101,400 $ 108,610 $ 305,473 $ 325,545

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,

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,

Dollars in thousands 2025 2024 2025 2024

10 unchanged sentences

Interest expense ( 52,642 ) ( 60,649 ) ( 160,800 ) ( 184,159 )

Loss on extinguishment of debt ( 286 ) — ( 286 ) —

Impairment of real estate properties and credit loss reserves ( 104,362 ) ( 84,394 ) ( 258,791 ) ( 232,450 )

3 unchanged sentences

Net loss $ ( 58,544 ) $ ( 94,535 ) $ ( 264,076 ) $ ( 555,692 )

1 Other segment expenses are primarily related to administrative costs, travel, legal, technology, and insurance.

1 Other segment expenses are primarily related to restructuring, administrative costs, travel, legal, technology, and insurance.

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