What changed in this filing

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Item 1. Financial Statements

2026-05-01 compared with 2025-10-31 · 176 added, 357 removed, 566 unchanged (48% of the section changed)

3 unchanged sentences

Amounts in thousands, except per share data

SEPTEMBER 30, 2025

MARCH 31, 2026

DECEMBER 31, 2025

6 unchanged sentences

Financing lease right-of-use assets 74,703 75,083

Construction in progress — 31,978

Land held for development 57,799 57,535

23 unchanged sentences

Class A Common stock, $ .01 par value per share;

1,000,000 shares authorized;

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

1,000,000 shares authorize d;

346,534 and 351,603 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

Additional paid-in capital 9,040,690 9,137,257

9 unchanged sentences

Condensed Consolidated Statements of Operations

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

For the Three Months Ended March 31, 2026 and 2025

Amounts in thousands, except per share data

THREE MONTHS ENDED

September 30, NINE MONTHS ENDED

September 30,

2025 2024 2025 2024

Rental income $ 267,575 $ 288,857

11 unchanged sentences

Loss on extinguishment of debt ( 21 ) —

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

Impairment of goodwill — — — ( 250,530 )

Equity income (loss) from unconsolidated joint ventures 287 208 446 ( 360 )

Impairment of real estate properties and credit loss recoveries (reserves) 984 ( 12,081 )

Equity income from unconsolidated joint ventures 496 1

Interest and other (expense) income, net 8 95

( 31,646 ) ( 63,893 )

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

Net loss attributable to non-controlling interests 806 1,512 3,614 8,053

Net income (loss) $ 21 $ ( 45,389 )

Net (income) loss attributable to non-controlling interests ( 77 ) 516

Net loss attributable to common stockholders $ ( 56 ) $ ( 44,873 )

5 unchanged sentences

Healthcare Realty Trust Incorporated

Condensed Consolidated Statements of Comprehensive Loss

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

Condensed Consolidated Statements of Comprehensive Income (Loss)

For the Three Months Ended March 31, 2026 and 2025

Amounts in thousands

THREE MONTHS ENDED

September 30, NINE MONTHS ENDED

September 30,

2025 2024 2025 2024

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

Net income (loss) $ 21 $ ( 45,389 )

Other comprehensive loss

2 unchanged sentences

Gains (losses) arising during the period on interest rate swaps 2,777 ( 5,178 )

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

2,799 ( 6,119 )

Comprehensive loss ( 55,782 ) ( 118,838 ) ( 269,441 ) ( 562,022 )

comprehensive loss attributable to non-controlling interests 768 1,866 3,770 8,161

Comprehensive loss attributable to common stockholders $ ( 55,014 ) $ ( 116,972 ) $ ( 265,671 ) $ ( 553,861 )

Comprehensive income (loss) 2,820 ( 51,508 )

comprehensive (gain) loss attributable to non-controlling interests ( 36 ) 681

Comprehensive income (loss) attributable to common stockholders $ 2,784 $ ( 50,827 )

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, 2025, are an integral part of these financial statements.

1 unchanged sentence

Condensed Consolidated Statements of Equity and Redeemable Non-Controlling Interests

For the Three Months Ended September 30, 2025 and 2024

For the Three Months Ended March 31, 2026 and 2025

Amounts in thousands, except per share data

8 unchanged sentences

Equity Redeemable Non-controlling Interests

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 December 31, 2025 $ 3,516 $ 9,137,257 $ ( 5,174 ) $ 128,238 $ ( 4,646,944 ) $ 4,616,893 $ 56,480 $ 4,673,373 $ 3,252

Common stock redemptions ( 1 ) ( 2,040 ) — — — ( 2,041 ) — ( 2,041 ) —

Conversion of OP Units to common stock 1 ( 1 ) — — — — — — —

Share-based compensation 7 5,415 — — — 5,422 — 5,422 —

Common stock repurchases ( 57 ) ( 99,942 ) — — — ( 99,999 ) — ( 99,999 ) —

Redemption of non-controlling interest — — — — — — ( 769 ) ( 769 ) —

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

Net (loss) income — — — ( 56 ) — ( 56 ) ( 10 ) ( 66 ) 87

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

4 unchanged sentences

— — — — ( 83,802 ) ( 83,802 ) ( 1,245 ) ( 85,047 ) —

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

Capital Accumulated

Comprehensive

Income (Loss) Cumulative

Net Income Cumulative

Dividends Total

Stockholders’

Equity Non-controlling Interests Total

Equity Redeemable Non-controlling Interests

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 ) —

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

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

Losses arising during the period on interest rate swaps

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

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 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 Nine Months Ended September 30, 2025 and 2024

Amounts in thousands, except per share data

Balance at March 31, 2026 $ 3,465 $ 9,040,690 $ ( 2,421 ) $ 128,182 $ ( 4,730,746 ) $ 4,439,170 $ 54,502 $ 4,493,672 $ 3,339

Stock Additional

9 unchanged sentences

Common stock redemptions — ( 215 ) — — — ( 215 ) — ( 215 ) —

Conversion of OP Units to common stock 2 332 — — — 334 ( 334 ) — —

Share-based compensation 5 3,023 — — — 3,028 — 3,028 —

8 unchanged sentences

— — — — ( 108,725 ) ( 108,725 ) ( 1,279 ) ( 110,004 ) —

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

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, 2023 $ 3,810 $ 9,602,592 $ ( 10,741 ) $ 1,028,794 $ ( 3,801,793 ) $ 6,822,662 $ 96,252 $ 6,918,914 $ 3,868

Issuance of common stock, net of issuance costs — 104 — — — 104 — 104 —

Common stock redemptions — ( 138 ) — — — ( 138 ) — ( 138 ) —

Conversion of OP Units to common stock 2 3,410 — — — 3,412 ( 3,412 ) — —

Share-based compensation 3 14,849 — — — 14,852 — 14,852 —

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 ) —

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

— — ( 11,012 ) — — ( 11,012 ) ( 157 ) ( 11,169 ) —

Gains arising during the period on interest rate swaps

— — 4,790 — — 4,790 49 4,839 —

Contributions from redeemable non-controlling interests — — — — — — — — 13

Adjustments to redemption value of redeemable non-controlling interests — — — — — — — — ( 6 )

Dividends to common stockholders and distributions to non-controlling interest holders ($ 0.93 per share)

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

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

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

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2025 and 2024

For the Three Months Ended March 31, 2026 and 2025

Amounts in thousands

THREE MONTHS ENDED

OPERATING ACTIVITIES 2026 2025

NINE MONTHS ENDED

September 30,

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

Net income (loss) $ 21 $ ( 45,389 )

Adjustments to reconcile net loss to net cash provided by operating activities:

6 unchanged sentences

Loss on extinguishment of debt 21 —

Loss on derivatives 2,844 —

Impairment of real estate properties and credit loss reserves ( 984 ) 12,081

Impairment of goodwill — 250,530

Equity (income) loss from unconsolidated joint ventures ( 446 ) 360

Equity income from unconsolidated joint ventures ( 496 ) ( 1 )

Distributions from unconsolidated joint ventures 5,281 3,557

6 unchanged sentences

INVESTING ACTIVITIES

Acquisitions of real estate ( 2,117 ) —

Development of real estate — ( 3,414 )

Additional long-lived assets ( 61,154 ) ( 69,128 )

Funding of mortgages and notes receivable ( 6,027 ) ( 3,565 )

Investments in unconsolidated joint ventures ( 18,637 ) ( 852 )

Investment in financing receivable 1,003 ( 3 )

Contributions from redeemable non-controlling interests — 13

Proceeds from sales of real estate properties and additional long-lived assets 29,321 19,353

1 unchanged sentence

Proceeds from notes receivable repayments 1,340 15,211

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

Net cash used in investing activities ( 45,309 ) ( 38,833 )

FINANCING ACTIVITIES

1 unchanged sentence

Repayments on unsecured credit facility ( 316,500 ) ( 65,000 )

Net borrowings on commercial paper program 250,715 —

Repayment on term loans — ( 35,000 )

1 unchanged sentence

Dividends paid ( 83,902 ) ( 108,809 )

Net proceeds from issuance of common stock — 104

Common stock redemptions ( 2,041 ) ( 215 )

5 unchanged sentences

Net cash used in financing activities ( 7,505 ) ( 52,149 )

(Decrease) increase in cash and cash equivalents ( 25,419 ) 460

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

Cash and cash equivalents at end of period, including held for sale 43,497 26,159

Cash and cash equivalents held for sale ( 152 ) ( 3,358 )

Increase (decrease) in cash and cash equivalents 63 ( 43,194 )

Cash and cash equivalents cash at beginning of period 26,172 68,916

Cash and cash equivalents at end of period 26,235 25,722

Supplemental Cash Flow Information NINE MONTHS ENDED

September 30,

THREE MONTHS ENDED

Supplemental Cash Flow Information 2026 2025

Interest paid $ 60,785 $ 67,283

2 unchanged sentences

Capitalized interest $ 3,471 $ 857

Proceeds from dispositions held in escrow $ 56,915 $ —

Contribution of real estate properties into unconsolidated joint venture $ — $ 110,879

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 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.

As of March 31, 2026, the Company had gross investments of approximately $ 10.3 billion in 502 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 assets held for sale.

In addition, as of March 31, 2026, the Company had a weighted average ownership interest of approxima tel y 30 % in 62 real estate properties, excluding assets held for sale, 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 27 states and total approximately 29.0 million square feet.

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

The Company provided leasing and property management services to 92 % of its portfolio nationwide as of March 31, 2026.

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 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.

As of March 31, 2026, the Company own ed 98.8 % of the issued and outstanding units of the OP (“OP Units”), with other investors owning the remaining 1.2 % 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 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.

As of March 31, 2026, there were approximately 4.3 million OP Units, or 1.2 % 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 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

As of March 31, 2026 and December 31, 2025, the Company had two 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, 2026 and December 31, 2025:

(dollars in thousands) March 31, 2026 December 31, 2025

Total real estate investments, net

9 unchanged sentences

$ 77,626 $ 75,797

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

As of March 31, 2026, the Company had three unconsolidated VIEs consisting of two 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.

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

1 unchanged sentence

(dollars in thousands) ORIGINATION DATE LOCATION SOURCE CARRYING AMOUNT MAXIMUM EXPOSURE TO LOSS

2021 Charlotte, NC Note receivable 5,970 7,441

Equity method 50,188 50,188

3 unchanged sentences

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

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.

Use of Estimates in the Condensed Consolidated Financial Statements

3 unchanged sentences

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.

Previously, the Company's borrowings and repayments on the Company's unsecured credit facility ("Revolving 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.

Certain reclassifications have been made on the Company's Condensed Consolidated Statement of Income to conform to current year presentation.

Previously, the Company's leasing commission amortization was presented in property operating expense on the Company's Condensed Consolidated Statement of Income.

These amounts are now presented in depreciation and amortization on the Company's Condensed Consolidated Statement of Income.

This resulted in $ 5.1 million being reclassified into depreciation and amortization for the three months ended March 31, 2025.

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

As of March 31, 2026, the Company had redeemable non-controlling interests of $ 3.3 million .

Asset Impairment

2 unchanged sentences

significant changes in the Company’s use of assets or the strategy for its overall business;

plans to sell an asset before its depreciable life has ended;

plans to sell an asset before its depreciable life has

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

the expiration of a significant portion of leases in a property;

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

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.

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

2 unchanged sentences

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.

See below for additional information regarding the Company's financing receivables as of March 31, 2026 and December 31, 2025.

(dollars in thousands) CARRYING VALUE AS OF

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

ORIGINATION DATE LOCATION INTEREST RATE MARCH 31, 2026 DECEMBER 31, 2025

May 2021 Poway, CA 5.62 % $ 116,353 $ 117,260

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 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

As of March 31, 2026, real estate notes receivable, net, which are included in Other assets on the Company's Condensed Consolidated Balance Sheets, totale d $ 87.0 million.

(dollars in thousands) ORIGINATION MATURITY STATED INTEREST RATE MAXIMUM LOAN COMMITMENT OUTSTANDING as of MARCH 31, 2026 INTEREST RECEIVABLE (OTHER ASSETS) ALLOWANCE FOR CREDIT LOSSES FAIR VALUE DISCOUNT AND FEES CARRYING VALUE as of MARCH 31, 2026

Mezzanine loans

5 unchanged sentences

3/30/2023 4/30/2026 6.50 % 45,000 45,000 189 — — 45,189

North Carolina 3

12/22/2021 12/22/2024 8.00 % 6,000 6,000 1,441 ( 1,471 ) — 5,970

5/17/2022 2/27/2026 6.00 % 65,000 — — — — —

California 3/30/2023 3/29/2026 6.50 % 45,000 45,000 181 — — 45,181

Florida 12/28/2023 12/28/2026 9.00 % 7,700 4,916 — — — 4,916

10/03/2024 10/02/2029 7.50 % 16,729 9,629 62 — — 9,691

Texas 3/20/2025 3/19/2030 6.75 % 5,400 5,400 31 — — 5,431

12/30/2025 12/31/2026 6.75 % 6,400 6,400 109 — — 6,509

2 unchanged sentences

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 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.

5 In March 2025, the Company provided seller financing of $ 5.4 million in connection with the sale of a real estate property in Houston, TX.

2 Mortgage loan maturity was extended to April 30, 2026.

Subsequent Loan Activity

In April 2026, the Company entered into a mezzanine loan agreement to provide funding up to $ 6.3 million for a future development.

As of the date of this filing, no funding has been provided.

In April 2026, the Company received the full outstanding balance related to the California mortgage loan.

Allowance for Credit Losses

1 unchanged sentence

Financial Instruments - Credit Losses, the Company adopted a policy to evaluate current expected credit losses at the inception of loans qualifying for treatment under ASC Topic 326.

The Company utilizes a probability of default method approach for estimating current expected credit losses and evaluates the liquidity and creditworthiness of its borrowers on a quarterly basis to determine whether any updates to the future expected losses recognized upon inception are necessary.

The Company utilizes a probability of default method approach for estimating current expected credit losses and evaluates the liquidity and

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

creditworthiness of its borrowers on a quarterly basis to determine whether any updates to the future expected losses recognized upon inception are necessary.

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

7 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 .

In the first quarter of 2026, the Company received $ 1.0 million related to a mortgage loan in which the Company previously reserved the remaining outstanding balance of $ 16.8 million.

The Company no longer has a position in the loan.

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

Dollars in thousands NINE MONTHS ENDED SEPTEMBER 30, 2025 TWELVE MONTHS ENDED DECEMBER 31, 2024

Dollars in thousands THREE MONTHS ENDED MARCH 31, 2026 TWELVE MONTHS ENDED DECEMBER 31, 2025

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

5 unchanged sentences

Income from Lease Financing Receivables

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.

The Company recognized the related income from two financing receivables totaling $ 2.0 million and $ 2.0 million for the three months ended March 31, 2026 and 2025, respectively, 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 $ 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 recognized interest income related to real estate notes receivable of $ 1.7 million and $ 1.8 million for the three months ended March 31, 2026 and 2025, respectively.

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

The Company did not have any loans on non-accrual status as of March 31, 2026.

Revenue from Contracts with Customers (ASC Topic 606)

The Company recognizes certain revenue under the core principle of ASC Topic 606:

Revenue from Contracts with Customers ("ASC Topic 606").

This topic requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

1 unchanged sentence

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

September 30, NINE MONTHS ENDED

September 30,

in thousands 2026 2025

3 unchanged sentences

$ 7,703 $ 6,389

$ 6,886 $ 5,020 $ 20,257 $ 13,533

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

11 unchanged sentences

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 fiscal year ended December 31, 2027.

On November 25, 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements, which amends certain aspects of the hedge accounting guidance in ASC 815.

The update improves the application of hedge accounting in the following areas;

(i) similar risk assessment for cash flow hedges, (ii) hedging interest payments on choose-your-rate debt, (iii) cash flow hedges on non-financial forecasted transactions, (iv) net written options as hedging instruments and (v) provide for additional flexibility in measuring hedge effectiveness.

The standard is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years.

Early adoption is permitted and applied prospectively.

The Company is currently evaluating the impact of the adoption of this ASU may have on its consolidated financial statements.

On December 8, 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements , to provide clarity on the current interim reporting requirements and the applicability of ASC 270.

The new guidance creates a comprehensive list of interim disclosures required under GAAP and incorporates a disclosure principal that requires disclosures at interim periods when an event or change that has a material effect on an entity has occurred since the last annual reporting period.

Some examples that may require disclosure under this new principal include changes in (i) accounting principles or estimates, (ii) status of long-term contracts, (iii) capitalization, such as new borrowings or financing modifications, and (iv) reporting entity resulting from business combinations or disposals.

The amendments are effective for interim periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted, and the guidance can be applied prospectively or retrospectively.

The Company is

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

currently evaluating the impact of the adoption of this ASU may have on its interim consolidated financial statements.

Real Estate Investments

2025 Acquisition Activity

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 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.

The Company's investment in and income (losses) recognized for the three months ended March 31, 2026 and 2025 related to its unconsolidated joint ventures accounted for under the equity method are shown in the table below:

THREE MONTHS ENDED

September 30, NINE MONTHS ENDED

September 30,

Dollars in thousands 2026 2025

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 )

Equity income recognized during the period 496 1

Owner distributions ( 5,281 ) ( 3,557 )

Investments in unconsolidated joint ventures, end of period $ 467,459 $ 470,418

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 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

Boston, MA 2/7/25 $ 4,500 $ ( 135 ) $ — $ 4,365 $ 4,325 $ 15 $ 25 30,304

2/14/25 8,600 ( 2,144 ) — 6,456 7,948 113 ( 1,605 ) 69,715

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

Boston, MA 4/30/25 486 ( 47 ) — 439 60 2 377 —

Boston, MA 5/23/25 3,000 ( 36 ) — 2,964 2,631 27 306 33,176

Jacksonville, FL 6/26/25 8,100 ( 11 ) — 8,089 23,064 ( 529 ) ( 14,446 ) 53,169

Yakima, WA 6/26/25 31,000 ( 2,256 ) — 28,744 8,689 343 19,712 91,561

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

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

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

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

1 In the first quarter 2026, the Company contributed $ 17.7 million towards the acquisition of a property in an existing joint venture.

Subsequent Activity

On April 27, 2026, an unconsolidated joint venture where the Company owns 50 %, sold a property for a total purchase price of $ 18.7 million.

2026 Acquisition Activity

The Company had no real estate acquisition activity for the three months ended March 31, 2026.

Subsequent to March 31, 2026, the Company acquired the following property:

Dollars in thousands DATE ACQUIRED PURCHASE PRICE SQUARE FOOTAGE

Charlotte, NC 1

4/24/26 $ 3,670 12,418

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

Columbus, OH 3

1 Represents an additional fully leased condominium unit in an existing building, bringing the Company's ownership of the building to 93 %.

2026 Disposition Activity

The following table details the Company's dispositions for the three months ended March 31, 2026.

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

Atlanta, GA 1/14/26 $ 21,900 $ ( 838 ) $ 21,062 $ 9,579 $ 338 $ 11,145 60,039

Oklahoma City, OK 1

3/3/26 11,500 ( 2,557 ) 8,943 8,520 184 239 186,301

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

Total dispositions $ 33,400 $ ( 3,395 ) $ 30,005 $ 18,099 $ 522 $ 11,384 246,340

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 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

The Company had 15 properties and one land parcel classified as assets held for sale as of March 31, 2026, and 18 properties and one land parcel classified as assets held for sale as of December 31, 2025.

The table below reflects the assets and liabilities classified as held for sale as of March 31, 2026 and December 31, 2025:

Dollars in thousands March 31, 2026 December 31, 2025

Balance Sheet data:

3 unchanged sentences

Personal property 62 101

Financing lease right-of-use assets 727 —

Land held for development 3,836 —

167,176 190,481

2 unchanged sentences

117,454 134,573

Cash and cash equivalents 152 —

Operating lease right-of-use assets 2,476 3,641

3 unchanged sentences

Operating lease liabilities 5,588 6,792

Financing lease liabilities 623 —

Other liabilities 3,785 3,854

Liabilities of assets held for sale $ 13,576 $ 15,160

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

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.

1 Net real estate assets held for sale include the impact of $ 0.4 million of impairment charges for the three months ended March 31, 2026.

Lessor Accounting

3 unchanged sentences

The Company’s single-tenant net leases generally require the lessee to pay minimum rent and all taxes (including property tax), insurance, maintenance and other operating costs associated with the leased property.

The Company's leases typically have escalators that are either based on a stated percentage or an index such as the Consumer Price Index ("CPI").

The Company's leases have escalators that are predominately based on a stated percentage, while others are based on an index such as the Consumer Price Index ("CPI").

In addition, most of the Company's leases include non-lease components, such as reimbursement of operating expenses as additional rent, or include the reimbursement of expected operating expenses as part of the lease payment.

2 unchanged sentences

Variable payments are recognized in the period earned.

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

Lease income for the Company's operating leases, recognized for the three months ended March 31, 2026 and 2025 was $ 267.6 million and $ 288.9 million, respectively.

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:

Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sales-type lease, as of March 31, 2026, were as follows:

Dollars in thousands OPERATING

2025 $ 202,753

2026 (remaining) $ 576,155

2031 and thereafter 1,846,813

1 unchanged sentence

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

As of September 30, 2025, the Company had 178 ground leases associated with properties covering 12.8 million square feet.

As of March 31, 2026, the Company had 168 ground leases associated with properties covering 12.4 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 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:

The Company had 60 prepaid ground leases as of March 31, 2026.

The Company’s future lease payments (primarily for its 108 non-prepaid ground leases), excluding amounts due for assets held for sale, as of March 31, 2026, were as follows:

Dollars in thousands OPERATING FINANCING

9 unchanged sentences

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:

The following table provides details of the Company's total lease expense for the three months ended March 31, 2026 and 2025:

THREE MONTHS ENDED

September 30, NINE MONTHS ENDED

September 30,

Dollars in thousands 2026 2025

10 unchanged sentences

Financing cash flows outflows related to financing leases $ 24 $ 134

Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ 1,294 $ — $ 3,855

Weighted-average years remaining lease term (excluding renewal options) - operating leases 39.9 44.0

3 unchanged sentences

Notes and Bonds Payable

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

The table below details the Company’s notes and bonds payable as of March 31, 2026 and December 31, 2025.

MATURITY DATE 1

3 unchanged sentences

Dollars in thousands 3/31/2026 12/31/2025

$ 1.5 billion Unsecured Credit Facility 3

7/29 $ 149,000 $ — 5.00 %

$ 200 million Unsecured Term Loan 4

1/26 151,315 199,896 5.32 %

$ 300 million Unsecured Term Loan 5

$ 1.5 billion Revolving Facility 3

7/29 $ 55,500 $ 120,000 4.47 %

$ 150 million Unsecured Term Loan

Commercial Paper Program 4

7/29 250,873 — 4.20 %

6 unchanged sentences

Senior Notes due 2027 7/27 493,875 492,693 4.76 %

8/26 592,937 586,824 4.94 %

Senior Notes due 2028 1/28 298,812 298,653 3.85 %

3 unchanged sentences

Senior Notes due 2031 3/31 690,685 685,873 5.13 %

Senior Notes due 2031 3/31 681,124 667,233 5.13 %

Mortgage notes payable 5

3 unchanged sentences

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

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

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 “Unsecured 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.

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.

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

• The previously funded $ 200 million term loan was continued with a maturity date of January 31, 2026 and three extension options totaling 16 months.

• 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 $ 300 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 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).

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

3 As of March 31, 2026, the Company had $ 1.2 billion available to be drawn on its $ 1.5 billion Revolving Facility after Commercial Paper Program borrowings.

4 Commercial Paper Program borrowings are backstopped by the availability under the Revolving Facility.

As such, the Company uses the maturity date of the Revolving Facility.

At March 31, 2026, the weighted average days remaining until maturity of the individual Commercial Paper Program borrowings was approximately 10 days.

5 In March 2026, the Company repaid a mortgage note payable in full totaling $ 5.2 million.

In April 2026, a mortgage note payable with a maturity date of April 2026 was extended to June 2026 and is expected to be repaid.

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:

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.

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.

Commercial Paper Program

In February 2026, the Company entered into a commercial paper dealer agreement to issue short-term commercial paper notes of up to $ 600.0 million, with maturities up to 364 days.

The program is backstopped by the Revolving Facility.

The notes will be issued at par less a discount representing an interest factor, or if interest bearing, at par.

As of March 31, 2026, the Company had a principal balance of $ 251.0 million outstanding.

Derivative Financial Instruments

12 unchanged sentences

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.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

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:

In February 2026, the Company terminated three interest rate swaps with a total notional value of $ 400.0 million that were set to mature in 2026 and 2027.

The Company entered into two new interest rate swaps with a total notional value of $ 400.0 million, at a strike price of 3.32 %, that mature in January 2029.

As of March 31, 2026, the Company had six 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 %

December 2026 150,000 3.84 %

June 2027 150,000 4.13 %

December 2027 100,000 4.13 %

January 2029 400,000 3.32 %

$ 500,000 3.09 %

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 September 30, 2025 and December 31, 2024.

AS OF SEPTEMBER 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 March 31, 2026 and December 31, 2025.

AS OF MARCH 31, 2026 AS OF DECEMBER 31, 2025

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

Interest rate swaps 2019 Other Assets $ 126 Other Assets $ 488

Interest rate swaps 2022 Other Assets — Other Assets 2,250

Interest rate swaps 2022 Other Liabilities — Other Liabilities ( 3,928 )

Interest rate swaps 2026 Other Assets 2,226 Other Assets —

Interest rate swaps 2023 Other Liabilities ( 3,525 ) Other Liabilities ( 3,310 )

Total derivatives designated as hedging instruments $ 2,352 $ ( 3,440 )

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 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 September 30, (GAIN)/LOSS RECLASSIFIED FROM

AOCI INTO INCOME

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

Settled interest rate swaps — — Other expense 294 —

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

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, 2026 and 2025 related to the Company's outstanding interest rate swaps.

(GAIN)/LOSS RECOGNIZED IN

AOCI ON DERIVATIVE

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

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

AOCI INTO INCOME

nine months ended September 30,

three months ended March 31,

In thousands 2026 2025 2026 2025

Interest rate swaps $ ( 2,408 ) $ 5,178 Interest expense $ ( 544 ) $ ( 1,090 )

Interest rate swaps — — Other expense 2,493 —

Settled treasury hedges — — Interest expense 107 107

Settled interest rate swaps ( 369 ) — Interest expense 459 42

Settled interest rate swaps — — Other expense 294 —

$ ( 2,777 ) $ 5,178 Total $ 22 $ ( 941 )

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.

The Company estimates that an additional $ 1.4 million will be reclassified from accumulated other comprehensive loss as a net increase to interest expense over the next 12 months.

Credit-risk-related Contingent Features

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 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.

As of March 31, 2026, the Company did not have any derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements .

As of March 31, 2026, 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 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

The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the three months ended March 31, 2026, and the twelve months ended December 31, 2025:

THREE MONTHS ENDED MARCH 31, 2026 TWELVE MONTHS ENDED DECEMBER 31, 2025

Balance, beginning of period 351,603,138 350,532,006

Issuance of common stock — 8,623

Conversion of OP units to common stock — 22,228

3 unchanged sentences

Common Stock Dividends

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

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 Company has not repurchased shares in 2025.

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

During the three months ended March 31, 2026, the Company declared and paid common stock dividends totaling $ 0.24 per share.

On April 30, 2026, the Company declared a quarterly common stock dividend in the amount of $ 0.24 per share payable on May 22, 2026 to stockholders of record on May 11, 2026.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Common Stock Repurchases

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.

1 unchanged sentence

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.

During the three months ended March 31, 2026, the Company repurchased 5.7 million shares of its common stock at an average price of $ 17.38 per share for a total of $ 99.9 million.

As of March 31, 2026, the Company had $ 400.1 million remaining under its current share repurchase authorization.

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 nine months ended September 30, 2025 and 2024.

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

The following table sets forth the computation of basic and diluted earnings per common share for the three months ended March 31, 2026 and 2025.

THREE MONTHS ENDED MARCH 31,

Dollars in thousands, except per share data 2026 2025

7 unchanged sentences

Income allocated to participating securities ( 758 ) ( 612 )

Loss attributable to non-controlling interest 806 1,512 3,614 8,053

(Income) loss attributable to non-controlling interest ( 77 ) 516

Adjustment to loss attributable to non-controlling interest for legally outstanding restricted units 100 ( 17 )

2 unchanged sentences

Diluted earnings per common share - net loss $ ( 0.00 ) $ ( 0.13 )

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.

The effect of OP Units redeemable for 4,278,028 shares of common stock and Restricted Stock Units of 493,403 shares for the three months ended March 31, 2026, 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 nine months ended September 30, 2025, the Company made the following equity awards under the Incentive Plan:

During the three months ended March 31, 2026, the Company made the following equity awards under the Incentive Plan:

Restricted Stock

During the first quarter of 2026, 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 $ 13.2 million, which consisted of an aggregate of 771,426 non-vested shares of common stock with vesting periods ranging from three to eight years .

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 .

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")

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.

In February 2026, the Company granted an aggregate of 45,009 RSUs to named executive officers, subject to a three-year performance period, with an aggregate grant date fair value of $ 1.1 million.

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

6 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 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.

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:

Volatility 28.0 %

Dividend assumption Accrued

Expected term 3 years

Risk-free rate 4.35 %

Stock price (per share) $ 16.17

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 subject to a three-year performance period with an aggregate grant date fair value of $ 3.4 million.

In February 2026, the Company granted an aggregate of 940,051 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 $ 9.3 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:

The Company utilized a Monte Carlo simulation to calculate the weighted average grant date fair value of $ 10.93 for the LTIP-C grant using the following assumptions:

Volatility 25.0 %

4 unchanged sentences

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 nine months ended September 30, 2025 and 2024:

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

2025 2024 2025 2024

The following table represents the summary of non-vested share-based awards under the Incentive Plan for the three months ended March 31, 2026 and 2025:

THREE MONTHS ENDED MARCH 31,

Share-based awards, beginning of period 2,565,437 1,799,737

5 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 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:

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

During the three months ended March 31, 2026 and 2025, the Company withheld 118,232 and 13,063 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, 2026:

Dollars in millions FUTURE AMORTIZATION

of non-vested shares

2026 (remaining) $ 13.5

2030 and thereafter 0.5

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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.

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 - The carrying amount approximates fair value because the borrowings are based on variable market interest rates.

• Borrowings under the revolving facility, commercial paper program, 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.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

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

The table below details the fair values and carrying values for notes and bonds payable and real estate notes receivable as of March 31, 2026, and December 31, 2025:

March 31, 2026 December 31, 2025

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 September 30, 2025.

2 Fair value for senior notes includes accrued interest as of March 31, 2026 and December 31, 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 nine months ended September 30, 2025 and 2024.

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

The table below details the significant expenses for the three months ended March 31, 2026 and 2025.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

THREE MONTHS ENDED MARCH 31,

Dollars in thousands 2026 2025

5 unchanged sentences

Totals $ 97,376 $ 103,887

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,

The following schedule reconciles net income (loss) t o segment expenses for the three months ended March 31, 2026 and 2025.

THREE MONTHS ENDED MARCH 31,

Dollars in thousands 2026 2025

11 unchanged sentences

Loss on extinguishment of debt ( 21 ) —

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

Impairment of goodwill — — — ( 250,530 )

Equity income (loss) from unconsolidated joint ventures 287 208 446 ( 360 )

Impairment of real estate properties and credit loss recoveries (reserves) 984 ( 12,081 )

Equity income from unconsolidated joint ventures 496 1

Interest and other (expense) income, net 8 95

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

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

Net income (loss) $ 21 $ ( 45,389 )

1 Other segment expenses are primarily related to 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