What changed in this filing

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Item 1. Financial Statements

2026-07-30 compared with 2026-05-01 · 277 added, 134 removed, 608 unchanged (40% of the section changed)

3 unchanged sentences

Amounts in thousands, except per share data

MARCH 31, 2026

JUNE 30, 2026

DECEMBER 31, 2025

31 unchanged sentences

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

1,000,000 shares authorize d;

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

1,000,000 shares authorized;

342,720 and 351,603 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital 8,940,542 9,137,257

Accumulated other comprehensive loss ( 2,421 ) ( 5,174 )

Accumulated other comprehensive income (loss) 1,598 ( 5,174 )

Cumulative net income attributable to common stockholders 84,668 128,238

7 unchanged sentences

Condensed Consolidated Statements of Operations

For the Three Months Ended March 31, 2026 and 2025

For the Three and Six Months Ended June 30, 2026 and 2025

Amounts in thousands, except per share data

THREE MONTHS ENDED

June 30, SIX MONTHS ENDED

2026 2025 2026 2025

Rental income $ 270,550 $ 287,070 $ 538,125 $ 575,927

15 unchanged sentences

( 82,924 ) ( 175,898 ) ( 114,569 ) ( 239,791 )

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

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

Net loss $ ( 43,955 ) $ ( 160,144 ) $ ( 43,934 ) $ ( 205,532 )

Net loss attributable to non-controlling interests 441 2,293 364 2,808

Net loss attributable to common stockholders $ ( 43,514 ) $ ( 157,851 ) $ ( 43,570 ) $ ( 202,724 )

5 unchanged sentences

Healthcare Realty Trust Incorporated

Condensed Consolidated Statements of Comprehensive Income (Loss)

For the Three Months Ended March 31, 2026 and 2025

Condensed Consolidated Statements of Comprehensive Loss

For the Three and Six Months Ended June 30, 2026 and 2025

Amounts in thousands

THREE MONTHS ENDED

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

June 30, SIX MONTHS ENDED

2026 2025 2026 2025

Net loss $ ( 43,955 ) $ ( 160,144 ) $ ( 43,934 ) $ ( 205,532 )

Other comprehensive loss

3 unchanged sentences

4,068 ( 2,008 ) 6,867 ( 8,127 )

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 )

Comprehensive loss ( 39,887 ) ( 162,152 ) ( 37,067 ) ( 213,659 )

comprehensive loss attributable to non-controlling interests 488 2,322 452 3,002

Comprehensive loss attributable to common stockholders $ ( 39,399 ) $ ( 159,830 ) $ ( 36,615 ) $ ( 210,657 )

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 March 31, 2026 and 2025

For the Three Months Ended June 30, 2026 and 2025

Amounts in thousands, except per share data

8 unchanged sentences

Equity Redeemable Non-controlling Interests

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

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

Common stock redemptions — ( 731 ) — — — ( 731 ) — ( 731 ) —

2 unchanged sentences

Redemption of non-controlling interest — — — — — — ( 274 ) ( 274 ) —

Capped call transaction premium — ( 28,875 ) — — — ( 28,875 ) — ( 28,875 ) —

Net (loss) income — — — ( 43,514 ) — ( 43,514 ) ( 537 ) ( 44,051 ) 96

5 unchanged sentences

— — — — ( 82,341 ) ( 82,341 ) ( 1,349 ) ( 83,690 ) —

Balance at June 30, 2026 $ 3,427 $ 8,940,542 $ 1,598 $ 84,668 $ ( 4,813,087 ) $ 4,217,148 $ 52,391 $ 4,269,539 $ 3,435

Stock Additional

Capital Accumulated

Comprehensive

Income (Loss) Cumulative

Net Income Cumulative

Dividends Total

Stockholders’

Equity Non-controlling Interests Total

Equity Redeemable Non-controlling Interests

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

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

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

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

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

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

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

Losses arising during the period on interest rate swaps

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

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

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

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

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

Healthcare Realty Trust Incorporated

Condensed Consolidated Statements of Equity and Redeemable Non-Controlling Interests

For the Six Months Ended June 30, 2026 and 2025

Amounts in thousands, except per share data

Stock Additional

10 unchanged sentences

Share-based compensation 8 9,835 — — — 9,843 — 9,843 —

Common stock repurchases ( 96 ) ( 174,904 ) — — — ( 175,000 ) — ( 175,000 ) —

Redemption of non-controlling interest — — — — — — ( 1,043 ) ( 1,043 ) —

Net loss — — — ( 44,873 ) — ( 44,873 ) ( 600 ) ( 45,473 ) 84

Capped call transaction premium — ( 28,875 ) — — — ( 28,875 ) — ( 28,875 ) —

Net (loss) income — — — ( 43,570 ) — ( 43,570 ) ( 547 ) ( 44,117 ) 183

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

— — 297 — — 297 4 301 —

Gains arising during the period on interest rate swaps

— — 6,475 — — 6,475 91 6,566 —

Dividends to common stockholders and distributions to non-controlling interest holders ($ 0.48 per share)

— — — — ( 166,143 ) ( 166,143 ) ( 2,594 ) ( 168,737 ) —

Balance at June 30, 2026 $ 3,427 $ 8,940,542 $ 1,598 $ 84,668 $ ( 4,813,087 ) $ 4,217,148 $ 52,391 $ 4,269,539 $ 3,435

Stock Additional

Capital Accumulated

Comprehensive

Income (Loss) Cumulative

Net Income Cumulative

Dividends Total

Stockholders’

Equity Non-controlling Interests Total

Equity Redeemable Non-controlling Interests

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

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

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

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

Redemption of non-controlling interest — — — — — — ( 331 ) ( 331 ) —

Net (loss) income — — — ( 202,724 ) — ( 202,724 ) ( 2,892 ) ( 205,616 ) 84

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

5 unchanged sentences

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

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

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

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2026 and 2025

For the Six Months Ended June 30, 2026 and 2025

Amounts in thousands

THREE MONTHS ENDED

SIX MONTHS ENDED JUNE 30,

OPERATING ACTIVITIES 2026 2025

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

Net loss $ ( 43,934 ) $ ( 205,532 )

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

8 unchanged sentences

Equity income from unconsolidated joint ventures ( 3,425 ) ( 159 )

Distributions from unconsolidated joint ventures 5,281 3,557

Distributions of earnings from unconsolidated joint ventures 10,263 10,829

Non-cash interest from financing and notes receivable ( 818 ) ( 395 )

8 unchanged sentences

Additional long-lived assets ( 130,948 ) ( 154,781 )

Funding of mortgages and notes receivable ( 1,564 ) ( 2,799 )

Investments in unconsolidated joint ventures ( 19,030 ) ( 978 )

1 unchanged sentence

Proceeds from sales of real estate properties and additional long-lived assets 43,752 69,805

Proceeds from insurance recovery 4,935 —

Distributions in excess of earnings from unconsolidated joint ventures 8,766 —

Proceeds from insurance recoveries 6,126 2,000

Proceeds from notes receivable repayments 46,688 53,190

5 unchanged sentences

Repayment on term loans — ( 35,140 )

Repayments of notes and bonds payable ( 5,500 ) ( 345 )

Borrowings of notes and bonds payable 700,000 —

Redemption and repayments of notes and bonds payable ( 605,737 ) ( 250,692 )

Dividends paid ( 166,147 ) ( 217,756 )

1 unchanged sentence

Common stock repurchases ( 175,000 ) —

Payments made for capped call premiums ( 28,875 ) —

Distributions to non-controlling interest holders ( 2,114 ) ( 2,653 )

5 unchanged sentences

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

Cash and cash equivalents at end of period, including held for sale 18,987 25,658

Cash and cash equivalents held for sale — ( 151 )

Cash and cash equivalents at end of period $ 18,987 $ 25,507

THREE MONTHS ENDED

SIX MONTHS ENDED JUNE 30,

Supplemental Cash Flow Information 2026 2025

8 unchanged sentences

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

As of March 31, 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.

As of June 30, 2026, the Company had gross investments of approximately $ 10.3 billion in 501 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 June 30, 2026, the Company had a weighted average ownership interest of approxima tel y 30 % i n 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 26 states and total approximately 28.9 million square feet.

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

The Company provided leasing and property management services to 92 % of its portfolio nationwide as of June 30, 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 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.

As of June 30, 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 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.

As of June 30, 2026, there were approximately 4.2 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 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

As of June 30, 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 June 30, 2026 and December 31, 2025:

(dollars in thousands) June 30, 2026 December 31, 2025

Total real estate investments, net

9 unchanged sentences

$ 74,489 $ 75,797

As of March 31, 2026, the Company had three unconsolidated VIEs consisting of two notes receivable and one joint venture.

As of June 30, 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.

12 unchanged sentences

Reclassifications

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

Certain 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 ("Revolving Facility") were presented in a net line in the financing activities on the Company's Condensed Consolidated Statement of Cash Flows.

3 unchanged sentences

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.

This resulted in $ 5.7 million and $ 10.8 million being reclassified into depreciation and amortization for the three and six months ended June 30, 2025, respectively.

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

As of June 30, 2026, the Company had redeemable non-controlling interests of $ 3.4 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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

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

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.

or significant negative economic trends or

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

negative industry trends for the Company or its tenants.

The Company recognized real estate impairments totaling $ 42.7 million and $ 42.8 million, for the three and six months ended June 30, 2026, respectively, and $ 140.9 million and $ 151.0 million, for the three and six months ended June 30, 2025, respectively, as a result of the indicators described above.

These amounts were determined using level 2 and level 3 fair value techniques and are included in Impairment of real estate properties and credit loss recoveries (reserves) on the Company's Condensed Consolidated Statement of Operations.

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 as of March 31, 2026 and December 31, 2025.

See below for additional information regarding the Company's financing receivables as of June 30, 2026 and December 31, 2025.

(dollars in thousands) CARRYING VALUE AS OF

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

ORIGINATION DATE LOCATION INTEREST RATE JUNE 30, 2026 DECEMBER 31, 2025

May 2021 Poway, CA 5.62 % $ — $ 117,260

1 unchanged sentence

$ 6,003 $ 123,249

In June 2026, the Company amended the California lease with the seller-lessee to terminate the seller-lessee's repurchase option.

Upon termination of the repurchase option, the transaction qualified for sale-leaseback accounting.

Accordingly, the Company reclassified the remaining carrying amount of the $ 116.9 million financing receivable to building and improvements on the Company's Condensed Consolidated Balance Sheets.

Real Estate Notes Receivable

1 unchanged sentence

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

As of March 31, 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

As of June 30, 2026, real estate notes receivable, net, which are included in Other assets on the Company's Condensed Consolidated Balance Sheets, totale d $ 43.5 million.

(dollars in thousands) ORIGINATION MATURITY STATED INTEREST RATE MAXIMUM LOAN COMMITMENT OUTSTANDING as of JUNE 30, 2026 INTEREST RECEIVABLE (OTHER ASSETS) ALLOWANCE FOR CREDIT LOSSES FAIR VALUE DISCOUNT AND FEES CARRYING VALUE as of JUNE 30, 2026

Mezzanine loans

2 unchanged sentences

3/20/2025 3/19/2030 13.00 % 8,500 8,500 1,061 — — 9,561

Tennessee 4/06/2026 4/06/2031 11.50 % 6,300 — — — — —

25,300 14,501 1,097 — — 15,598

Mortgage loans

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

Florida 12/28/2023 12/28/2026 9.00 % 7,700 4,569 — — — 4,569

4 unchanged sentences

$ 61,529 $ 42,063 $ 1,408 $ — $ — $ 43,471

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

1 In June 2026, the loan was amended to mature on December 31, 2027.

2 Outstanding principal and interest due upon maturity.

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

Subsequent Loan Activity

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.

As of June 30, 2026, no funding has been provided.

In April 2026, the Company received $ 45.2 million, upon maturity of a 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

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 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’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.

The Company's allowance for credit losses was $ 16.8 million as of December 31, 2025.

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

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

Credit loss reserves — 1,571

Recoveries ( 1,000 ) —

Write-off ( 15,801 ) ( 1,571 )

Allowance for credit losses, end of period $ — $ 16,801

As of June 30, 2026, the Company's allowance for credit losses was de minimis.

Interest Income

Income from Lease Financing Receivables

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.

The Company recognized the related income from two financing receivables totaling $ 2.1 million and $ 4.1 million for the three and six months ended June 30, 2026, respectively, and $ 2.0 million and $ 3.9 million for the three and six months ended June 30, 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 $ 1.7 million and $ 1.8 million for the three months ended March 31, 2026 and 2025, respectively.

The Company recognized interest income related to real estate notes receivable of $ 1.2 million and $ 2.9 million for the three and six months ended June 30, 2026, respectively, and $ 1.5 million and $ 3.3 million for the three and six months ended June 30, 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.

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

The Company did not have any loans on non-accrual status as of June 30, 2026.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Revenue from Contracts with Customers (ASC Topic 606)

4 unchanged sentences

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

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

2 unchanged sentences

THREE MONTHS ENDED

June 30, SIX MONTHS ENDED

in thousands 2026 2025 2026 2025

3 unchanged sentences

5,601 4,614 11,235 9,140

$ 8,033 $ 6,983 $ 15,736 $ 13,371

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

20 unchanged sentences

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 new guidance creates a comprehensive list of interim disclosures required under GAAP and incorporates a disclosure principle that requires disclosures at interim periods when an event or change that has a material effect on an entity has occurred

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

since the last annual reporting period.

Some examples that may require disclosure under this new principle 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.

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

Real Estate Investments

Unconsolidated Joint Ventures

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:

The Company's investment in and income (losses) recognized for the three and six months ended June 30, 2026 and 2025 related to its unconsolidated joint ventures accounted for under the equity method are shown in the table below:

THREE MONTHS ENDED

June 30, SIX MONTHS ENDED

Dollars in thousands 2026 2025 2026 2025

1 unchanged sentence

New investment during the period 1

392 126 19,030 978

Equity income recognized during the period 2

2,929 158 3,425 159

Owner distributions ( 13,747 ) ( 7,272 ) ( 19,029 ) ( 10,829 )

1 unchanged sentence

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

2 Includes a gain on sale of real estate of $ 2.5 million in April 2026.

Joint Venture Disposition 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.

Subsequent Joint Venture Acquisition Activity

In July 2026, an unconsolidated joint venture where the Company owns 20 %, acquired two properties for a total purchase price of $ 86.1 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:

The following table details the Company's acquisitions for the six months ended June 30, 2026.

Dollars in thousands DATE ACQUIRED PURCHASE PRICE SQUARE FOOTAGE

1 unchanged sentence

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

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

1 Represents a condominium unit fully leased by Novant Health under a long-term lease in an existing building, bringing the Company's ownership 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

The following table details the Company's dispositions for the six months ended June 30, 2026.

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

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

1 unchanged sentence

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

Atlanta, GA 5/27/26 2,750 ( 251 ) — 2,499 2,499 — — —

Austin, TX 6/12/26 8,900 ( 356 ) — 8,544 4,513 261 3,770 12,880

Amarillo, TX 6/18/26 4,000 ( 463 ) — 3,537 3,827 94 ( 384 ) 64,756

Total dispositions $ 49,050 $ ( 4,465 ) $ — $ 44,585 $ 28,938 $ 877 $ 14,770 323,976

1 unchanged sentence

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Subsequent Disposition Activity

On July 2, 2026, the Company sold two land parcels in Dallas, TX for a total purchase price of $ 5.5 million.

Assets Held for Sale

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

The Company had 14 properties and three land parcels classified as assets held for sale as of June 30, 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 June 30, 2026 and December 31, 2025:

Dollars in thousands June 30, 2026 December 31, 2025

Balance Sheet data:

3 unchanged sentences

Personal property 62 101

Land held for development 2,500 —

138,521 190,481

9 unchanged sentences

Liabilities of assets held for sale $ 14,099 $ 15,160

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.

1 Net real estate assets held for sale include the impact of $ 41.4 million of impairment charges for the six months ended June 30, 2026.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Lessor Accounting

8 unchanged sentences

Variable payments are recognized in the period earned.

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

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:

Lease income for the Company's operating leases, recognized for the three and six months ended June 30, 2026 was $ 270.6 million and $ 538.1 million, respectively.

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.

Future lease payments under the non-cancelable operating leases, excluding any reimbursements and one sales-type lease, as of June 30, 2026, 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 March 31, 2026, the Company had 168 ground leases associated with properties covering 12.4 million square feet.

As of June 30, 2026, the Company had 169 ground leases associated with properties covering 12.6 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 March 31, 2026.

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 March 31, 2026 and 2025, respectively.

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:

The Company had 61 prepaid ground leases as of June 30, 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 June 30, 2026, were as follows:

Dollars in thousands OPERATING FINANCING

2026 $ 6,552 $ 1,438

2026 (remaining) $ 4,573 $ 952

2027 9,225 2,105

7 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 months ended March 31, 2026 and 2025:

The following table provides details of the Company's total lease expense for the three and six months ended June 30, 2026 and 2025:

THREE MONTHS ENDED

June 30, SIX MONTHS ENDED

Dollars in thousands 2026 2025 2026 2025

7 unchanged sentences

Other information

Operating cash flows outflows related to operating leases $ 3,313 $ 4,492

Operating cash flows outflows related to financing leases $ 354 $ 543

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

Operating cash outflows related to operating leases $ 3,943 $ 4,529 $ 7,256 $ 9,021

Operating cash outflows related to financing leases $ 495 $ 576 $ 849 $ 1,119

Financing cash outflows related to financing leases $ 18 $ 5 $ 42 $ 139

Weighted-average years remaining lease term (excluding renewal options) - operating leases 39.8 41.9

2 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 March 31, 2026 and December 31, 2025.

The table below details the Company’s notes and bonds payable as of June 30, 2026 and December 31, 2025.

MATURITY DATE 1

11 unchanged sentences

1/28 299,283 299,055 4.27 %

$ 400 million Unsecured Delayed Draw Term Loan

Senior Notes due 2026 5

6 unchanged sentences

Senior Notes due 2031 3/31 695,559 685,873 5.13 %

Exchangeable Senior Notes due 2032 1/32 681,380 — 3.53 %

Mortgage notes payable 6

3 unchanged sentences

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

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.

3 As of June 30, 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.

As of June 30, 2026, the weighted average remaining maturity of Commercial Paper Program borrowings was approximately 7 days.

5 Company repaid Senior Notes due 2026 in full in May 2026.

6 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.

A mortgage note payable with a maturity date of April 2026 was extended to July 2026.

2032 Exchangeable Senior Notes

In May 2026, the OP issued $ 700 million aggregate principal amount of the 2032 Exchangeable Senior Notes in a private placement, including the initial purchasers’ exercise in full of their option to purchase an additional $ 100 million aggregate principal amounts of the 2032 Exchangeable Senior Notes.

The total proceeds from the issuance of the 2032 Exchangeable Senior Notes, net of initial purchaser discounts and commissions and debt issuance costs, were approximately $ 680.9 million.

The 2032 Exchangeable Senior Notes were issued pursuant to, and are governed by, an indenture (the "Indenture"), dated as of May 7, 2026, between the OP, the Company, as guarantor, and U.S.

Bank Trust Company, National Association, as trustee.

The 2032 Exchangeable Senior Notes are senior, unsecured obligations of the OP, guaranteed by the Company, and will mature on January 15, 2032, unless earlier redeemed, repurchased, or exchanged.

The 2032 Exchangeable Senior Notes bear interest at a rate of 3.00 % per annum, payable semiannually in arrears on Janu ary 15 th and July 15 th of each year, commencing January 15 th , 2027.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

The 2032 Exchangeable Senior Notes are exchangeable into shares of the Company’s Class A common stock at an initial exchange rate of 43.4660 shares per $1,000 principal amount of the 2032 Exchangeable Senior Notes, which represents an initial exchange price of approximately $ 23.01 per share, subject to standard anti-dilution adjustments, including distributions in excess of a regular quarterly distribution of $ 0.24 per share.

As of June 30, 2026, there have been no adjustments to the exchange rate.

From and after October 15, 2031, the 2032 Exchangeable Senior Notes may be exchanged at any time until the close of business on the second scheduled trading day immediately before the maturity date.

Prior to October 15, 2031, the 2032 Exchangeable Senior Notes may only be exchanged under certain circumstances pursuant to the Indenture.

None of these circumstances were met as of June 30, 2026.

In addition, if the 2032 Exchangeable Senior Notes are exchanged in connection with certain corporate events or because the OP elects to redeem the 2032 Exchangeable Senior Notes as described above, the exchange rate associated with such exchanges may be increased.

On or after January 22, 2030, the OP may redeem for cash all or any portion (subject to certain limitations) of the outstanding 2032 Exchangeable Senior Notes, at its option, if the last reported sale price of the Company’s Class A common stock has been at least 130 % of the exchange price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period at a redemption price equal to 100 % of the principal amount of the 2032 Exchangeable Senior Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date.

If the Company or the OP undergoes a fundamental change (as defined in the Indenture), holders of the 2032 Exchangeable Senior Notes may require the OP to repurchase for cash all or any portion of their notes at a repurchase price equal to 100 % of the principal amount of the 2032 Exchangeable Senior Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date.

The 2032 Exchangeable Senior Notes include customary covenants and certain events of default after which the notes may be declared immediately due and payable and set forth certain types of bankruptcy or insolvency events of default after which the notes become automatically due and payable.

Upon exchange, the OP will pay cash up to the aggregate principal amount of the 2032 Exchangeable Senior Notes to be exchanged and may, at the OP's election, settle any exchange premium in cash, shares of our Class A common stock, or a combination thereof, based on the applicable exchange rate.

In connection with the issuance of the 2032 Exchangeable Senior Notes, the Company and the OP entered into a registration rights agreement (the “Registration Rights Agreement”) with the representatives of the initial purchasers of the 2032 Exchangeable Senior Notes, pursuant to which the Company and the OP agreed to register the resale of the shares of Class A Common Stock, if any, deliverable upon exchange of the 2032 Exchangeable Senior Notes.

If specified conditions under the registration rights agreement are not satisfied, the OP may be required to pay additional interest on the 2032 Exchangeable Senior Notes.

The 2032 Exchangeable Senior Notes are being accounted for as a single liability and the exchange feature was determined to qualify for the derivative scope exception for contracts indexed to and settled in the Company’s own stock.

The issuance costs are capitalized as a deduction to the carrying value of the liability and amortized over the contractual life of the 2032 Exchangeable Senior Notes using the effective interest method.

As of June 30, 2026, the net carrying amount of the exchangeable debt instrument was approximately $ 681.4 million, with unamortized debt discount and issuance costs of approximately $ 18.6 million.

For the three and six months ended June 30, 2026, the total interest expense was approximately $ 3.7 million with coupon interest expense of approximately $ 3.2 million and the amortization of debt discount and issuance costs of approximately $ 0.5 million.

2032 Capped Calls

In connection with the issuance of the 2032 Exchangeable Senior Notes, the Company and the OP, entered into privately-negotiated capped call transactions (the "2032 Capped Calls") with certain financial institution counterparties.

The 2032 Capped Calls each have an initial strike price of approximately $ 23.01 per share of the Company's Class A common stock, subject to certain adjustments, which corresponds to the initial exchange price of the 2032 Exchangeable Senior Notes.

The 2032 Capped Calls each have an initial cap price of approximately $ 27.41 per share, subject to certain adjustments under the terms of the 2032 Capped Calls.

The 2032 Capped Calls initially cover, subject to anti-dilution adjustments, the number of shares of the Company's Class A common stock initially underlying the 2032 Exchangeable Senior Notes.

The 2032 Capped Calls are expected generally to reduce the

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

potential dilution to the Company's Class A common stock upon any exchange of the 2032 Exchangeable Senior Notes and/or offset any potential cash payments that the Company is required to make in excess of the principal amount of the 2032 Exchangeable Senior Notes, as the case may be, with such reduction and/or offset subject to a cap.

The 2032 Capped Calls will expire in connection with the maturity of the 2032 Exchangeable Senior Notes, if not earlier exercised or terminated.

A portion of the proceeds from the 2032 Exchangeable Senior Notes was used to pay the premiums of the 2032 Capped Calls of approximately $ 28.9 million, which was recorded as reduction to stockholders' equity for the Company.

Earnings per Share

The Company applies the if converted method to assess the dilutive impact of the 2032 Exchangeable Senior Notes on earnings per share, reflecting the obligation to settle the principal amount of the 2032 Exchangeable Senior Notes in cash upon exchange.

For the three and six months ended June 30, 2026, the average stock price did not exceed the exchange price of the 2032 Exchangeable Senior Notes, so the 2032 Exchangeable Senior Notes did not have an impact on the calculations of diluted EPS.

Delayed Draw Term Loan Facility

On May 15, 2026, the Company and the OP (as borrower) entered into a term loan agreement (“The Term Loan Agreement”) which provides for a $ 400.0 million senior unsecured delayed draw term loan facility (the “Delayed Draw Term Loan”).

The Term Loan Agreement has an accordion feature to increase the Delayed Draw Term Loan or add one or more new tranches of term loans up to an additional aggregate amount not to exceed $ 100.0 million, subject to the satisfaction of certain conditions and the receipt of additional commitments from existing or new lenders.

The scheduled maturity date of the Delayed Draw Term Loan is May 15, 2029.

Term loans outstanding under the Delayed Draw Term Loan will accrue interest at an annual rate equal to (a) the applicable margin, plus (b) at the OP’s option, (x) the base rate, (y) a forward-looking term rate based on the secured overnight financing rate (“SOFR”) as administered by the Federal Reserve Bank of New York (“Term SOFR”) or (z) a daily rate determined by reference to SOFR (“Daily Simple SOFR”), subject to a floor of, in the case of base rate, 1.00 % and in the case of Term SOFR and Daily Simple SOFR, — %.

The applicable margin under the Term Loan Facility ranges from — % to 0.550 % for base rate loans and 0.675 % to 1.550 % for Term SOFR or Daily Simple SOFR loans, in each case, based on the non-credit enhanced, senior unsecured long-term debt ratings of the OP.

Deferred financing costs incurred as a result of the transaction totaled approximately $ 4.1 million and are recorded as an other asset on the condensed consolidated balance sheet.

As of June 30, 2026, no borrowings were outstanding under the Delayed Draw Term Loan.

Commercial Paper Program

2 unchanged sentences

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.

As of June 30, 2026, the Company had a principal balance of $ 276.0 million outstanding.

Derivative Financial Instruments

7 unchanged sentences

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

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

To accomplish these objectives, the Company primarily uses interest rate swaps

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

as part of its interest rate risk management strategy.

Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

4 unchanged sentences

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 %

January 2029 400,000 3.32 %

$ 500,000 3.09 %

In May 2026, the Company had four interest rate swaps with a total notional value of $ 100.0 million mature.

As of June 30, 2026, the Company had two outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk for a total notional value of $ 400 million at a rate of 3.32 %.

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

The table below presents the fair value of the Company's derivative financial instruments and their classification on the Condensed Consolidated Balance Sheet as of March 31, 2026 and December 31, 2025.

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

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, 2026 and December 31, 2025.

AS OF JUNE 30, 2026 AS OF DECEMBER 31, 2025

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

3 unchanged sentences

Total derivatives designated as hedging instruments $ 5,683 $ ( 3,440 )

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.

The table below presents the effect of cash flow hedge accounting on AOCI during the three and six months ended June 30, 2026 and 2025 related to the Company's outstanding interest rate swaps.

(GAIN)/LOSS RECOGNIZED IN

AOCI ON DERIVATIVE

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

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

AOCI INTO INCOME

three months ended March 31,

three months ended June 30,

In thousands 2026 2025 2026 2025

3 unchanged sentences

$ ( 3,789 ) $ 1,028 Total $ 279 $ ( 980 )

(GAIN)/LOSS RECOGNIZED IN

AOCI ON DERIVATIVE

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

AOCI INTO INCOME

six months ended June 30,

In thousands 2026 2025 2026 2025

Interest rate swaps $ ( 6,175 ) $ 6,206 Interest expense $ ( 493 ) $ ( 2,188 )

Settled treasury hedges — — Interest expense 213 214

Settled interest rate swaps ( 391 ) — Interest expense 581 53

$ ( 6,566 ) $ 6,206 Total $ 301 $ ( 1,921 )

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

The Company estimates that an additional $ 0.1 million will be reclassified from accumulated other comprehensive loss as a net increase 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 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.

As of June 30, 2026, the Company did not have any derivatives in a net liability position including accrued interest .

As of June 30, 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 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

The following table provides a reconciliation of the beginning and ending shares of common stock outstanding for the six months ended June 30, 2026, and the twelve months ended December 31, 2025:

SIX MONTHS ENDED JUNE 30, 2026 TWELVE MONTHS ENDED DECEMBER 31, 2025

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

4 unchanged sentences

Common Stock Dividends

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.

During the six months ended June 30, 2026, the Company declared and paid common stock dividends totaling $ 0.48 per share.

On July 30, 2026, the Company declared a quarterly common stock dividend in the amount of $ 0.24 per share payable on August 26, 2026 to stockholders of record on August 11, 2026.

Common Stock Repurchases

3 unchanged sentences

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.

During the three months ended June 30, 2026, the Company repurchased 3.8 million shares of its common stock at an average price of $ 19.58 per share for a total of $ 75.0 million.

These share repurchases were approved in connection with the 2032 Exchangeable Senior Notes issuance and were not purchased pursuant to any other publicly announced plan or program.

As of June 30, 2026, the Company ha d $ 400.1 million remaining under its current share repurchase authorization.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

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 months ended March 31, 2026 and 2025.

THREE MONTHS ENDED MARCH 31,

The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2026 and 2025.

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

Dollars in thousands, except per share data 2026 2025 2026 2025

12 unchanged sentences

Diluted earnings per common share - net loss $ ( 0.13 ) $ ( 0.45 ) $ ( 0.13 ) $ ( 0.58 )

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.

The effect of OP Units redeemable for 4,247,299 shares and 4,262,579 shares of common stock for the three and six months ended June 30, 2026, 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 three months ended March 31, 2026, the Company made the following equity awards under the Incentive Plan:

During the six months ended June 30, 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 .

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

During the second quarter of 2026, the Company granted non-vested stock awards to its independent directors and other members of senior management with an aggregate grant date fair value of $ 1.1 million, which consisted of an aggregate of 57,474 non-vested shares of common stock with a vesting periods ranging from one to three years .

Restricted Stock Units ("RSUs")

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.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

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

15 unchanged sentences

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

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

THREE MONTHS ENDED MARCH 31,

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, 2026 and 2025:

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

2026 2025 2026 2025

Share-based awards, beginning of period 3,809,276 2,619,942 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.

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:

During the three months ended June 30, 2026 and 2025, the Company withheld 40,823 and 72,853 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, 2026:

Dollars in millions FUTURE AMORTIZATION

2 unchanged sentences

2030 and thereafter 0.4

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

Fair Value of Financial Instruments

8 unchanged sentences

See Note 5 for additional information.

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

March 31, 2026 December 31, 2025

The table below details the fair values and carrying values for notes and bonds payable and real estate notes receivable as of June 30, 2026, and December 31, 2025:

June 30, 2026 December 31, 2025

Dollars in millions CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE

1 unchanged sentence

$ 3,485.5 $ 3,456.6 $ 3,911.4 $ 3,928.8

2032 Exchangeable senior notes 1, 2

$ 681.4 $ 720.1 $ — $ —

Real estate notes receivable $ 43.5 $ 43.1 $ 87.0 $ 86.5

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

2 Fair value for senior notes includes accrued interest as of March 31, 2026 and December 31, 2025.

2 Fair value for senior notes includes accrued interest as of June 30, 2026 and December 31, 2025.

3 Does not include values related to the 2032 Exchangeable Senior Notes, which are separately disclosed .

Segment Reporting

4 unchanged sentences

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

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

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

THREE MONTHS ENDED MARCH 31,

The table below details the significant expenses for the three and six months ended June 30, 2026 and 2025.

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

Dollars in thousands 2026 2025 2026 2025

5 unchanged sentences

Totals $ 96,736 $ 100,185 $ 194,112 $ 204,072

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,

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, cont.

The following schedule reconciles net loss t o segment expenses for the three and six months ended June 30, 2026 and 2025.

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

Dollars in thousands 2026 2025 2026 2025

14 unchanged sentences

Interest and other (expense) income, net 19 ( 366 ) 27 ( 271 )

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

Net loss $ ( 43,955 ) $ ( 160,144 ) $ ( 43,934 ) $ ( 205,532 )

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