What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-07-30 compared with 2026-05-01 · 137 added, 64 removed, 268 unchanged (43% of the section changed)

62 unchanged sentences

To the extent additional investments are not funded by these sources, the Company expects to fund its investment activity generally through equity or debt issuances either in the public or private markets, asset sales and joint venture contributions or through proceeds from the Revolving Facility and Commercial Paper Program.

As of March 31, 2026, the Company had $1.2 billion available to be drawn on the Revolving Facility, net of Commercial Paper Program borrowings, and available cash.

As of June 30, 2026, the Company had $1.6 billion available to be drawn on the Delayed Draw Term Loan and Revolving Facility, net of Commercial Paper Program borrowings, and available cash.

The Company expects to continue to meet its liquidity needs, including capital for additional investments, tenant improvement allowances, operating and finance lease payments, paying dividends, share repurchases, and funding debt service, through cash on hand, cash flows from operations and the cash flow sources addressed above.

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The Company cannot, however, be certain that these sources of funds will be available at a time and upon terms acceptable to the Company in sufficient amounts to meet its liquidity needs.

Dividends paid by the Company for the three months ended March 31, 2026 were funded from cash flows from operations and the Revolving Facility, as cash flows from operations were not adequate to fully fund dividends, primarily as a result of the timing of interest payments.

The Company expects that cash flows from operations will generate sufficient cash flows during 2026 such that dividends for the full year 2026 can be funded by cash flows from operations or other sources of liquidity described above.

See Notes 4 and 7 to the Condensed Consolidated Financial Statements in this report for more information about capital markets and financing activities.

Operating Activities

Cash flows provided by operating activities increased from $47.8 million for the three months ended March 31, 2025 to $52.9 million for the three months ended March 31, 2026.

Cash flows provided by operating activities decreased from $211.0 million for the six months ended June 30, 2025 to $195.1 million for the six months ended June 30, 2026.

Items impacting cash flows from operations include, but are not limited to, cash generated from property operations, interest payments and the timing of the payment of invoices and other expenses.

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Investing Activities

Cash flows used in investing activities for the three months ended March 31, 2026 and March 31, 2025, were approximately $45.3 million and $38.8 million, respectively.

Cash flows used in investing activities for the six months ended June 30, 2026 and June 30, 2025, were approximately $52.3 million and $41.9 million, respectively.

Below is a summary of the investing activities.

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 Company had the following real estate acquisition activity for the six months ended June 30, 2026:

Dollars in thousands DATE ACQUIRED PURCHASE PRICE SQUARE FOOTAGE

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

Represents an additional fully leased condominium unit, by Novant Health under a long-term lease in an existing building, bringing the Company's ownership of the building to 93%.

The Company disposed of three medical outpatient properties during the three months ended March 31, 2026 for a total sales price of $33.4 million, generating net proceeds of $30.0 million after closing credits.

The following table details these dispositions for the three months ended March 31, 2026:

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%.

The Company disposed o f five properties and one land parcel during the six months ended June 30, 2026 for a total sales price of $49.1 million, generating net proceeds of $44.6 million after closing credits.

The following table details these dispositions for the six months ended June 30, 2026:

Dollars in thousands Date Disposed Sale Price Square Footage

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3/3/26 11,500 186,301

Atlanta, GA 5/27/26 2,750 —

Austin, TX 6/12/26 8,900 12,880

Amarillo, TX 6/18/26 4,000 64,756

Total $ 49,050 323,976

1 Includes two medical outpatient properties.

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.

Capital Expenditures

During the three months ended March 31, 2026, the Company incurred capital costs totaling $49.1 million for the following:

During the six months ended June 30, 2026, the Company incurred capital costs totaling $105.2 million for the following:

• $41.4 million toward development and redevelopment of properties;

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Investment in Unconsolidated Joint Venture

During the three months ended March 31, 2026, the Company invested additional funding of $18.6 million, of which $17.7 million related to a property acquisition, in existing joint ventures in which it holds a 20% interest.

During the six months ended June 30, 2026, the Company invested additional funding of $19.0 million, of which $17.7 million related to a property acquisition, in existing joint ventures in which it holds a 20% interest.

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.

Real Estate Notes Receivable

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 June 30, 2026, no funding has been provided.

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

See Note 1 to the Condensed Consolidated Financial Statements in this report for more information about real estate notes receivable and allowance for credit losses.

Financing Activities

Cash flows used in financing activities for the three months ended March 31, 2026 and March 31, 2025, were approximately $7.5 million and $52.1 million, respectively.

Cash flows used in financing activities for the six months ended June 30, 2026 and June 30, 2025, were approximately $149.9 million and $212.3 million, respectively.

See Notes 4 and 7 to the Condensed Consolidated Financial Statements in this report for more information about capital markets and financing activities.

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On February 12, 2026, Healthcare Realty established its inaugural commercial paper program, with a total size of up to $600 million.

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.

On May 7, 2026, the OP issued $700.0 million of 3.00% 2032 Exchangeable Senior Notes.

The proceeds from the offering were primarily used to repay the Company’s $600 million of Senior Notes that were due to mature in August 2026.

In connection with the offering of the 2032 Exchangeable Senior Notes, the Company and OP entered into the 2032 Capped Calls with an initial cap price of $27.41 per share.

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.

See Note 4 to the Condensed Consolidated Financial Statements in this report for more information.

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, 0.00%.

The applicable margin under the Term Loan Facility ranges from 0.00% 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.

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 derivatives totaling $500.0 million to hedge the one-month term Secured Overnight Financing Rate ("SOFR").

As of March 31, 2026, all six of these swaps were designated as cash flow hedges.

The following table details the amount and rate of each swap (dollars in thousands):

EXPIRATION DATE TOTAL OUTSTANDING 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 derivatives with notional values totaling $400.0 million to hedge the one-month term Secured Overnight Financing Rate ("SOFR") at a rate of 3.32%.

As of June 30, 2026, both of these swaps were designated as cash flow hedges.

Supplemental Guarantor Information

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Approximately 70% of the leases expiring during the remainder of 2026 are for space in buildings located on or adjacent to hospital campuses, are distributed throughout the portfolio, and are not concentrated with any one tenant, health system or market area.

The Company typically expects to retain 75% to 90% of tenants upon expiration, and the retention ratio for the first three months of the year was within this range.

The Company typically expects to retain 75% to 90% of tenants upon expiration, and the retention ratio for the first six months of the year was within this range.

Operating Expenses

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The effects of these operating expense increases are mitigated in leases that have provisions for operating expense reimbursement.

As of March 31, 2026, leases for approximately 92% of the Company's total leased square footage allow for some recovery of operating expenses, with approximately 30% having modified gross lease structures and approximately 62% having net lease structures.

As of June 30, 2026, leases for approximately 92% of the Company's total leased square footage allow for some recovery of operating expenses, with approximately 28% having modified gross lease structures and approximately 64% having net lease structures.

Purchase Options

1 unchanged sentence

YEAR EXERCISABLE NUMBER OF PROPERTIES GROSS REAL ESTATE INVESTMENT AS OF

MARCH 31, 2026 1

JUNE 30, 2026 1

2026 (remaining) 3 67,335

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Total 38 $ 963,314

1 Purchase option prices are based on fair market value components that are determined by an appraisal process, except fo r two p roperties totaling $42.6 million with stated prices or prices based on fixed capitalization rates.

2 These purchase options have been exercisable for an average of 21.7 years.

3 Includes two medical outpatient properties that are recorded in the line item Investment in financing receivable, net on the Company's Condensed Consolidated Balance Sheets.

1 Purchase option prices are based on fair market value components that are determined by an appraisal process, except for two properties totaling $42.7 million with stated prices or prices based on fixed capitalization rates.

2 These purchase options have been exercisable for an average of approximately 22.0 years.

3 Includes one medical outpatient property that is recorded in the line item Investment in financing receivable, net on the Company's Condensed Consolidated Balance Sheets.

Non-GAAP Financial Measures and Key Performance Indicators

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Further, these measures should not be considered as an alternative to net income as an indicator of the Company’s operating performance or as an alternative to cash flow from operating activities as a measure of liquidity.

The table below reconciles net loss to FFO, Normalized FFO and FAD for the three months ended March 31, 2026 and 2025:

THREE MONTHS ENDED MARCH 31,

The table below reconciles net loss to FFO, Normalized FFO and FAD for the three and six months ended June 30, 2026 and 2025:

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

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

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1 Potential common shares are not included in diluted earnings per share when a loss exists as the effect would be antidilutive.

2 The Company utilizes the treasury stock method which includes the dilutive effect of nonvested share-based awards outstanding of 493,403 and 317,511, respectively, for the three months ended March 31, 2026 and 2025, and the dilutive impact of 4,278,028 OP Units outstanding for the three months ended March 31, 2026,

2 The Company utilizes the treasury stock method which includes the dilutive effect of nonvested share-based awards outstanding of 613,021 and 287,797, respectively, for the three months ended June 30, 2026 and 2025, and the dilutive impact of 4,247,299 and 4,262,579 OP Units outstanding for the three and six months ended June 30, 2026, respectively.

Cash Net Operating Income ("NOI") and Same Store Cash NOI

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Newly developed or redeveloped properties will be included in the same store pool five full quarters after substantial completion.

The following table reflects the Company's Same Store Cash NOI for the three months ended March 31, 2026 and 2025:

The following table reflects the Company's Same Store Cash NOI for the six months ended June 30, 2026 and 2025:

NUMBER OF PROPERTIES GROSS INVESTMENT

as of March 31, 2026 SAME STORE CASH NOI for the three months ended March 31,

as of June 30, 2026 SAME STORE CASH NOI for the six months ended June 30,

Dollars in thousands 2026 2025

1 unchanged sentence

Joint venture same store properties 58 $ 498,950 $ 15,117 $ 14,425

The following tables reconcile net income (loss) to Same Store NOI and the same store property metrics to the total owned real estate portfolio for the three months ended March 31, 2026 and 2025:

The following tables reconcile net loss to Same Store NOI and the same store property metrics to the total owned real estate portfolio for the six months ended June 30, 2026 and 2025:

Reconciliation of Same Store Cash NOI

THREE MONTHS ENDED MARCH 31,

SIX MONTHS ENDED JUNE 30,

Dollars in thousands 2026 2025

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

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

Other expense 114,569 239,791

14 unchanged sentences

Reconciliation of Same Store Properties

AS OF MARCH 31, 2026

AS OF JUNE 30, 2026

Dollars and square feet in thousands PROPERTY COUNT GROSS INVESTMENT 1

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Results of Operations

Three Months Ended March 31, 2026, Compared to Three Months Ended March 31, 2025

The Company’s results of operations for the three months ended March 31, 2026, compared to the same period in 2025 were impacted by developments, dispositions, gain on sales and impairment charges recorded on real estate properties, and capital markets transactions.

Rental income decreased $21.3 million, or 7.4%, for the three months ended March 31, 2026, compared to the prior year period.

Three Months Ended June 30, 2026, Compared to Three Months Ended June 30, 2025

The Company’s results of operations for the three months ended June 30, 2026, compared to the same period in 2025 were impacted by developments, dispositions, gain on sales and impairment charges recorded on real estate properties, and capital markets transactions.

Rental income decreased $16.5 million, or 5.8%, for the three months ended June 30, 2026, compared to the prior year period.

This decrease is primarily comprised of the following:

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• Developments completed in 2025 resulted in an increase of $0.8 million.

Other operating income increased $1.3 million, or 20.6%, for the three months ended March 31, 2026, compared to the prior year period primarily as a result of income from management fees.

Property operating expenses decreased $9.8 million, or 9.0%, for the three months ended March 31, 2026, compared to the prior year period primarily as a result of the following activity:

Other operating income increased $1.1 million, or 15.0%, for the three months ended June 30, 2026, compared to the prior year period primarily as a result of income from management fees.

Property operating expenses decreased $5.2 million, or 5.0%, for the three months ended June 30, 2026, compared to the prior year period primarily as a result of the following activity:

• Dispositions in 2025 and 2026 resulted in a decrease of $12.0 million.

• Decreases in portfolio operating expenses as follows:

▪ Property tax expense of $0.2 million;

▪ Other administrative and legal expenses of $0.2 million;

• Increases in portfolio operating expenses as follows:

◦ Utilities expense of $1.5 million;

◦ Compensation expense of $0.9 million;

◦ Maintenance and repair expense of $2.0 million;

◦ Administrative and other legal costs of $1.5 million;

◦ Compensation expense of $1.5 million;

◦ Utilities expense of $1.0 million;

◦ Property tax expense of $0.2 million;

◦ Janitorial expense of $0.2 million;

◦ Insurance expense of $0.1 million.

• Developments completed in 2025 resulted in an increase of $0.3 million.

General and administrative expenses increased approximately $3.8 million, or 28.2%, for the three months ended March 31, 2026, compared to the prior year period primarily as a result of the following activity:

• Increase in restructuring and severance-related charges of $7.1 million and non-cash incentive compensation expense of $0.9 million.

• Decreases in the following expenses:

• Cash compensation expense of $3.1 million;

◦ Incentive based cash compensation expense of $0.4 million;

◦ Other decreases include legal and other administrative costs of $0.7 million.

Depreciation and amortization expense decreased $27.1 million, or 17.3%, for the three months ended March 31, 2026, compared to the prior year period primarily as a result of the following activity:

General and administrative expenses decreased approximately $9.1 million, or 38.8%, for the three months ended June 30, 2026, compared to the prior year period primarily as a result of the following activity:

• Decrease in restructuring and severance-related charges of $8.4 million;

• Decreases in cash compensation expense of $2.1 million;

• Increase in non-cash incentive based cash compensation expense of $0.6 million;

• Increases in other items including legal and other administrative costs of $0.8 million.

Depreciation and amortization expense decreased $25.4 million, or 16.6%, for the three months ended June 30, 2026, compared to the prior year period primarily as a result of the following activity:

• Dispositions in 2025 and 2026 resulted in a decrease of $18.7 million.

• Assets that became fully depreciated resulted in a decrease of $15.8 million.

• Leasing costs amortization resulted in an increase of $2.2 million.

• Various building and tenant improvement expenditures resulted in an increase of $6.5 million.

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Gains on sale of real estate properties and other assets

In the three months ended March 31, 2026 , the Company recognized gains on sale of real estate properties and other assets of approximately $10.8 million.

In the three months ended March 31, 2025, the Company recognized gains on sale of real estate properties and other assets of approximately $2.9 million.

In the three months ended June 30, 2026 , the Company recognized gains on sale of real estate properties and other assets of approximately $3.7 million.

In the three months ended June 30, 2025, the Company recognized gains on sale of real estate properties and other assets of approximately $20.0 million.

Interest expense

Interest expense decreased $10.9 million, or 19.9%, for the three months ended March 31, 2026, compared to the prior year period.

Interest expense decreased $8.2 million, or 15.4%, for the three months ended June 30, 2026, compared to the prior year period.

The components of interest expense are as follows:

THREE MONTHS ENDED MARCH 31, CHANGE

THREE MONTHS ENDED JUNE 30, CHANGE

Dollars in thousands 2026 2025 $ %

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Total interest expense $ 45,146 $ 53,346 $ (8,200) (15.4) %

Contractual interest expense decreased $9.3 million, or 21.6%, for the three months ended March 31, 2026, compared to the prior year period primarily as a result of the following activity:

Contractual interest expense decreased $9.4 million, or 21.2%, for the three months ended June 30, 2026 , compared to the prior year period primarily as a result of the following activity:

• The unsecured term loans accounted for a decrease of approximately $9.3 million as a result of a decreased aggregate balance.

• The Revolving Facility accounted for an increase of approximately $1.4 million as a result of an increased weighted average balance outstanding.

• The repayment of the Senior Notes due 2025 accounted for a decrease of $2.4 million.

• Mortgage note repayments, net of assumptions, accounted for a decrease of approximately $0.2 million.

• The commercial paper program and unsecured credit facility accounted for a net decrease of approximately $0.5 million.

• Active interest rate swaps accounted for an increase of $0.6 million.

Impairment of real estate properties and credit loss reserves

In the second quarter of 2026, the Company recognized impairments totaling $42.8 million on properties sold and properties with changes in the expected holding periods.

In the second quarter of 2025, the Company recognized impairments totaling $140.9 million on properties sold and properties with changes in the expected holding periods.

In addition, the Company recorded a $1.5 million credit loss reserve related to one of its mortgage notes receivables.

Equity loss from unconsolidated joint ventures

The Company recognized its proportionate share of income or losses from its unconsolidated joint ventures.

Losses are primarily attributable to non-cash depreciation expens e.

See Note 2 to the Condensed Consolidated Financial Statements in this report for more details regarding the Company's unconsolidated joint ventures.

Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

The Company’s results of operations for the six months ended June 30, 2026 compared to the same period in 2025 were impacted by developments, dispositions, gain on sales and impairment charges recorded on real estate properties, and capital markets transactions.

Rental income decreased $37.8 million, or 6.6%, for the six months ended June 30, 2026 compared to the prior year period.

This decrease is primarily comprised of the following:

• Dispositions in 2025 and 2026 resulted in a decrease of $65.2 million.

• Leasing activity, including contractual rent increases, resulted in an increase of $26.0 million.

• Developments completed in 2025 resulted in an increase of $1.4 million.

Other operating income increased $2.4 million, or 17.7%, for the six months ended June 30, 2026 , compared to the prior year period primarily as a result of income from management fees related to unconsolidated joint ventures.

Property operating expenses decreased $15.1 million, or 7.0%, for the six months ended June 30, 2026 compared to the prior year period primarily as a result of the following activity:

• Dispositions in 2025 and 2026 resulted in a decrease of $24.7 million.

• Increases in portfolio operating expenses as follows:

◦ Utilities expense of $2.5 million;

◦ Maintenance and repair expense of $2.5 million;

◦ Compensation expense of $2.4 million;

◦ Administrative, leasing commissions, and other legal expense of $1.3 million;

◦ Property tax expense of $0.2 million;

◦ Janitorial expense of $0.2 million.

◦ Developments completed in 2025 resulted in an increase of $0.5 million.

General and administrative expenses decreased approximately $5.3 million, or 14.3%, for the six months ended June 30, 2026 compared to the prior year period primarily as a result of the following activity:

• Decrease in restructuring and severance-related charges of $0.8 million.

• Decrease in cash compensation expense of $5.6 million.

• Other decreases include legal and other administrative costs of $0.9 million.

• Increase in non-cash compensation expense of $2.0 million.

Depreciation and amortization expense decreased $52.5 million, or 16.9%, for the six months ended June 30, 2026 compared to the prior year period primarily as a result of the following activity:

• Dispositions in 2025 and 2026 resulted in a decrease of $38.3 million.

• Assets that became fully depreciated resulted in a decrease of $32.9 million.

• Leasing costs amortization resulted in an increase of $4.8 million.

• Developments completed in 2025 resulted in an increase of $0.7 million.

• Various building and tenant improvement expenditures resulted in an increase of $13.2 million.

Other Income (Expense)

Gains on sale of real estate properties and other assets

Gains on the sale of real estate properties and other assets for the six months ended June 30, 2026 and 2025, totaled $14.5 million and $22.9 million, respectively.

Interest expense

Interest expense decreased $19.1 million, or 17.7%, for the six months ended June 30, 2026 compared to the prior year period.

The components of interest expense are as follows:

SIX MONTHS ENDED JUNE 30, CHANGE

Dollars in thousands 2026 2025 $ %

Contractual interest $ 68,512 $ 87,154 $ (18,642) (21.4) %

Net discount/premium accretion 21,861 21,312 549 2.6 %

Debt issuance costs amortization 2,614 2,196 418 19.0 %

Amortization of interest rate swap settlement 912 53 859 1,620.8 %

Amortization of treasury hedge settlement 213 213 — — %

Interest cost capitalization (6,937) (4,608) (2,329) 50.5 %

Interest on lease liabilities 1,861 1,837 24 1.3 %

Total interest expense $ 89,036 $ 108,157 $ (19,121) (17.7) %

Contractual interest expense decreased $18.6 million, or 21.4%, for the six months ended June 30, 2026 compared to the prior year period primarily as a result of the following activity:

• The unsecured term loans accounted for a decrease of approximately $1.9 million.

• The unsecured term loan repayments accounted for a decrease of approximately $16.7 million.

• Mortgage note repayments, net of assumptions, accounted for a decrease of approximately $0.3 million.

• The commercial paper program accounted for an increase of approximately $0.4 million.

• Repayments of the 2025 and 2026 Senior Notes and the 2032 Exchangeable Senior Notes borrowing resulted in a net decrease of $2.4 million.

• Active interest rate swaps accounted for an increase of $1.3 million.

• The commercial paper program and unsecured credit facility accounted for a net increase of approximately $1.4 million.

Impairment of real estate properties and credit loss reserves

In the first quarter of 2026, the Company recognized a $1.0 million credit loss recovery on one of its previously settled mortgage notes receivable.

In the first quarter of 2025, the Company recognized impairments totaling $5.4 million on four properties sold and $4.8 million on three properties with changes in the expected holding periods.

In addition, the Company recorded a $1.9 million fair value adjustment for an equity investment in other assets.

During the six months ended June 30, 2026 , the Company recognized real estate impairments totaling $42.8 million on properties sold and properties with changes in the expected holding periods, net of a $1.0 million credit loss recovery on one of its previously settled mortgage notes receivable.

During the six months ended June 30, 2025, the Company recognized impairments totaling $151.0 million on properties sold and properties with changes in the expected holding periods.

In addition, the Company recorded $1.5 million in credit loss reserves relating to a mortgage notes receivable and a $1.9 million fair value adjustment for an equity investment in other assets.

Equity loss from unconsolidated joint ventures

3 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis