KITE REALTY GROUP TRUST 10-Q

ITEM 1. FINANCIAL STATEMENTS KITE REALTY GROUP TRUST Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share data) March 31, 2026 December 31, 2025 Assets: Investment properties, at cost $ 7,029,261 $ 7,003,479 Less: accumulated depreciation ( 1,717,404 ) ( 1,656,191 ) Net investment properties 5,311,857 5,347,288 Cash and cash equivalents 32,539 36,761 Tenant and other receivables, including accrued straight-line rent of $ 72,548 and $ 70,940 , respectively 133,290 127,865 Restricted cash and escrow deposits 190,581 441,605 Deferred costs, net 172,805 181,553 Prepaid and other assets 98,560 93,913 Investments in unconsolidated joint ventures 356,555 364,407 Assets associated with investment properties held for sale 54,073 71,105 Total assets $ 6,350,260 $ 6,664,497 Liabilities and Equity: Liabilities: Mortgage and other indebtedness, net $ 2,992,389 $ 3,025,478 Accounts payable and accrued expenses 156,908 221,118 Deferred revenue and other liabilities 207,603 221,813 Liabilities associated with investment properties held for sale 3,754 4,314 Total liabilities 3,360,654 3,472,723 Commitments and contingencies Limited Partners’ interests in the Operating Partnership 130,306 116,245 Equity: Common shares, $ 0.01 par value, 490,000,000 shares authorized, 203,058,977 and 208,979,900 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 2,031 2,090 Additional paid-in capital 4,445,350 4,612,280 Accumulated other comprehensive income 21,352 23,079 Accumulated deficit ( 1,611,337 ) ( 1,563,840 ) Total shareholders’ equity 2,857,396 3,073,609 Noncontrolling interests 1,904 1,920 Total equity 2,859,300 3,075,529 Total liabilities and equity $ 6,350,260 $ 6,664,497 The accompanying notes are an integral part of these consolidated financial statements. 4 Table of Contents KITE REALTY GROUP TRUST Consolidated Statements of Operations and Comprehensive Income (Unaudited) (in thousands, except share and per share data) Three Months Ended March 31, 2026 2025 Revenue: Rental income $ 198,042 $ 219,172 Other property-related revenue 1,359 1,480 Fee income 1,296 425 Total revenue 200,697 221,077 Expenses: Property operating 31,116 29,826 Real estate taxes 24,824 27,761 General, administrative and other 13,950 12,258 Depreciation and amortization 82,491 98,231 Impairment charges 5,888 — Total expenses 158,269 168,076 Other (expense) income: Interest expense ( 31,696 ) ( 32,954 ) Income tax expense of taxable REIT subsidiaries ( 395 ) ( 10 ) Gain on sales of operating properties, net — 91 Net gains from outlot sales 1,039 — Equity in loss of unconsolidated joint ventures ( 2,216 ) ( 607 ) Other income, net 2,572 4,743 Net income 11,732 24,264 Net income attributable to noncontrolling interests ( 338 ) ( 534 ) Net income attributable to common shareholders $ 11,394 $ 23,730 Net income per common share – basic and diluted $ 0.06 $ 0.11 Weighted average common shares outstanding – basic 205,686,342 219,715,674 Weighted average common shares outstanding – diluted 206,063,468 219,827,298 Net income $ 11,732 $ 24,264 Change in fair value of derivatives ( 1,700 ) ( 4,280 ) Total comprehensive income 10,032 19,984 Comprehensive income attributable to noncontrolling interests ( 365 ) ( 559 ) Comprehensive income attributable to the Company $ 9,667 $ 19,425 The accompanying notes are an integral part of these consolidated financial statements. 5 Table of Contents KITE REALTY GROUP TRUST Consolidated Statements of Shareholders’ Equity (Unaudited) (in thousands, except share data) Common Shares Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Shares Amount Balance at December 31, 2025 208,979,900 $ 2,090 $ 4,612,280 $ 23,079 $ ( 1,563,840 ) $ 3,073,609 Stock compensation activity 125,478 1 1,610 — — 1,611 Shares repurchased through Share Repurchase Program ( 6,046,401 ) ( 60 ) ( 152,362 ) — — ( 152,422 ) Other comprehensive loss — — — ( 1,727 ) — ( 1,727 ) Distributions to common shareholders — — — — ( 58,891 ) ( 58,891 ) Net income attributable to common shareholders — — — — 11,394 11,394 Adjustment to redeemable noncontrolling interests — — ( 16,178 ) — — ( 16,178 ) Balance at March 31, 2026 203,058,977 $ 2,031 $ 4,445,350 $ 21,352 $ ( 1,611,337 ) $ 2,857,396 Balance at December 31, 2024 219,667,067 $ 2,197 $ 4,868,554 $ 36,612 $ ( 1,595,253 ) $ 3,312,110 Stock compensation activity 145,233 1 1,449 — — 1,450 Other comprehensive loss — — — ( 4,305 ) — ( 4,305 ) Distributions to common shareholders — — — — ( 59,349 ) ( 59,349 ) Net income attributable to common shareholders — — — — 23,730 23,730 Adjustment to redeemable noncontrolling interests — — ( 5,683 ) — — ( 5,683 ) Balance at March 31, 2025 219,812,300 $ 2,198 $ 4,864,320 $ 32,307 $ ( 1,630,872 ) $ 3,267,953 The accompanying notes are an integral part of these consolidated financial statements. 6 Table of Contents KITE REALTY GROUP TRUST Consolidated Statements of Cash Flows (Unaudited) (in thousands) Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net income $ 11,732 $ 24,264 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 84,250 99,875 Gain on sales of operating properties, net — ( 91 ) Net gains from outlot sales ( 1,039 ) — Impairment charges 5,888 — Straight-line rent ( 1,769 ) ( 2,581 ) Compensation expense for equity awards 2,722 2,341 Amortization of debt fair value adjustments ( 1,361 ) ( 2,519 ) Amortization of in-place lease liabilities ( 1,495 ) ( 3,538 ) Equity in loss of unconsolidated joint ventures 2,216 607 Distributions from unconsolidated joint ventures 5,183 280 Changes in assets and liabilities: Tenant receivables ( 3,550 ) 3,181 Deferred costs and other assets ( 10,460 ) ( 11,859 ) Accounts payable, accrued expenses, deferred revenue and other liabilities ( 42,550 ) ( 35,900 ) Net cash provided by operating activities 49,767 74,060 Cash flows from investing activities: Acquisition of real estate ( 7,931 ) ( 78,254 ) Capital expenditures ( 32,430 ) ( 42,119 ) Net proceeds from outlot sales 3,191 — Net proceeds from sales of operating properties 12,263 — Proceeds from short-term deposits — 350,000 Distributions from unconsolidated joint ventures 386 162 Capital contributions to unconsolidated joint ventures — ( 1,952 ) Net cash (used in) provided by investing activities ( 24,521 ) 227,837 Cash flows from financing activities: Proceeds from issuance of common shares, net 19 15 Repurchases of common shares upon the vesting of restricted shares ( 1,450 ) ( 1,146 ) Shares repurchased through Share Repurchase Program ( 152,422 ) — Debt and equity issuance costs ( 155 ) ( 66 ) Loan proceeds 237,000 103,000 Loan payments ( 270,332 ) ( 420,300 ) Distributions paid – common shareholders ( 90,083 ) ( 59,309 ) Distributions paid – redeemable noncontrolling interests ( 2,983 ) ( 2,449 ) Distributions to noncontrolling interests ( 86 ) ( 62 ) Net cash used in financing activities ( 280,492 ) ( 380,317 ) Net change in cash, cash equivalents and restricted cash ( 255,246 ) ( 78,420 ) Cash, cash equivalents and restricted cash, beginning of period 478,391 133,552 Cash, cash equivalents and restricted cash, end of period $ 223,145 $ 55,132 Non-cash investing and financing activities: Accrued capital expenditures and tenant improvements $ 1,738 $ 95 The accompanying notes are an integral part of these consolidated financial statements. 7 Table of Contents KITE REALTY GROUP, L.P. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) (in thousands, except unit data) March 31, 2026 December 31, 2025 Assets: Investment properties, at cost $ 7,029,261 $ 7,003,479 Less: accumulated depreciation ( 1,717,404 ) ( 1,656,191 ) Net investment properties 5,311,857 5,347,288 Cash and cash equivalents 32,539 36,761 Tenant and other receivables, including accrued straight-line rent of $ 72,548 and $ 70,940 , respectively 133,290 127,865 Restricted cash and escrow deposits 190,581 441,605 Deferred costs, net 172,805 181,553 Prepaid and other assets 98,560 93,913 Investments in unconsolidated joint ventures 356,555 364,407 Assets associated with investment properties held for sale 54,073 71,105 Total assets $ 6,350,260 $ 6,664,497 Liabilities and Equity: Liabilities: Mortgage and other indebtedness, net $ 2,992,389 $ 3,025,478 Accounts payable and accrued expenses 156,908 221,118 Deferred revenue and other liabilities 207,603 221,813 Liabilities associated with investment properties held for sale 3,754 4,314 Total liabilities 3,360,654 3,472,723 Commitments and contingencies Limited Partners’ interests in the Operating Partnership 130,306 116,245 Partners’ Equity: Common equity, 203,058,977 and 208,979,900 units issued and outstanding at March 31, 2026 and December 31, 2025, respectively 2,836,044 3,050,530 Accumulated other comprehensive income 21,352 23,079 Total Partners’ equity 2,857,396 3,073,609 Noncontrolling interests 1,904 1,920 Total equity 2,859,300 3,075,529 Total liabilities and equity $ 6,350,260 $ 6,664,497 The accompanying notes are an integral part of these consolidated financial statements. 8 Table of Contents KITE REALTY GROUP, L.P. AND SUBSIDIARIES Consolidated Statements of Operations and Comprehensive Income (Unaudited) (in thousands, except unit and per unit data) Three Months Ended March 31, 2026 2025 Revenue: Rental income $ 198,042 $ 219,172 Other property-related revenue 1,359 1,480 Fee income 1,296 425 Total revenue 200,697 221,077 Expenses: Property operating 31,116 29,826 Real estate taxes 24,824 27,761 General, administrative and other 13,950 12,258 Depreciation and amortization 82,491 98,231 Impairment charges 5,888 — Total expenses 158,269 168,076 Other (expense) income: Interest expense ( 31,696 ) ( 32,954 ) Income tax expense of taxable REIT subsidiaries ( 395 ) ( 10 ) Gain on sales of operating properties, net — 91 Net gains from outlot sales 1,039 — Equity in loss of unconsolidated joint ventures ( 2,216 ) ( 607 ) Other income, net 2,572 4,743 Net income 11,732 24,264 Net income attributable to noncontrolling interests ( 70 ) ( 70 ) Net income attributable to common unitholders $ 11,662 $ 24,194 Allocation of net income: Limited Partners $ 268 $ 464 Parent Company 11,394 23,730 $ 11,662 $ 24,194 Net income per common unit – basic and diluted $ 0.06 $ 0.11 Weighted average common units outstanding – basic 210,742,420 224,214,867 Weighted average common units outstanding – diluted 211,119,546 224,326,491 Net income $ 11,732 $ 24,264 Change in fair value of derivatives ( 1,700 ) ( 4,280 ) Total comprehensive income 10,032 19,984 Comprehensive income attributable to noncontrolling interests ( 70 ) ( 70 ) Comprehensive income attributable to common unitholders $ 9,962 $ 19,914 The accompanying notes are an integral part of these consolidated financial statements. 9 Table of Contents KITE REALTY GROUP, L.P. AND SUBSIDIARIES Consolidated Statements of Partners’ Equity (Unaudited) (in thousands) General Partner Total Common Equity Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2025 $ 3,050,530 $ 23,079 $ 3,073,609 Stock compensation activity 1,611 — 1,611 Units repurchased in connection with Share Repurchase Program ( 152,422 ) — ( 152,422 ) Other comprehensive loss attributable to Parent Company — ( 1,727 ) ( 1,727 ) Distributions to Parent Company ( 58,891 ) — ( 58,891 ) Net income attributable to Parent Company 11,394 — 11,394 Adjustment to redeemable noncontrolling interests ( 16,178 ) — ( 16,178 ) Balance at March 31, 2026 $ 2,836,044 $ 21,352 $ 2,857,396 Balance at December 31, 2024 $ 3,275,498 $ 36,612 $ 3,312,110 Stock compensation activity 1,450 — 1,450 Other comprehensive loss attributable to Parent Company — ( 4,305 ) ( 4,305 ) Distributions to Parent Company ( 59,349 ) — ( 59,349 ) Net income attributable to Parent Company 23,730 — 23,730 Adjustment to redeemable noncontrolling interests ( 5,683 ) — ( 5,683 ) Balance at March 31, 2025 $ 3,235,646 $ 32,307 $ 3,267,953 The accompanying notes are an integral part of these consolidated financial statements. 10 Table of Contents KITE REALTY GROUP, L.P. AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) (in thousands) Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net income $ 11,732 $ 24,264 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 84,250 99,875 Gain on sales of operating properties, net — ( 91 ) Net gains from outlot sales ( 1,039 ) — Impairment charges 5,888 — Straight-line rent ( 1,769 ) ( 2,581 ) Compensation expense for equity awards 2,722 2,341 Amortization of debt fair value adjustments ( 1,361 ) ( 2,519 ) Amortization of in-place lease liabilities ( 1,495 ) ( 3,538 ) Equity in loss of unconsolidated joint ventures 2,216 607 Distributions from unconsolidated joint ventures 5,183 280 Changes in assets and liabilities: Tenant receivables ( 3,550 ) 3,181 Deferred costs and other assets ( 10,460 ) ( 11,859 ) Accounts payable, accrued expenses, deferred revenue and other liabilities ( 42,550 ) ( 35,900 ) Net cash provided by operating activities 49,767 74,060 Cash flows from investing activities: Acquisition of real estate ( 7,931 ) ( 78,254 ) Capital expenditures ( 32,430 ) ( 42,119 ) Net proceeds from outlot sales 3,191 — Net proceeds from sales of operating properties 12,263 — Proceeds from short-term deposits — 350,000 Distributions from unconsolidated joint ventures 386 162 Capital contributions to unconsolidated joint ventures — ( 1,952 ) Net cash (used in) provided by investing activities ( 24,521 ) 227,837 Cash flows from financing activities: Contributions from the General Partner 19 15 Repurchases of common shares upon the vesting of restricted shares ( 1,450 ) ( 1,146 ) Units repurchased in connection with Share Repurchase Program ( 152,422 ) — Debt and equity issuance costs ( 155 ) ( 66 ) Loan proceeds 237,000 103,000 Loan payments ( 270,332 ) ( 420,300 ) Distributions paid – common unitholders ( 90,083 ) ( 59,309 ) Distributions paid – redeemable noncontrolling interests ( 2,983 ) ( 2,449 ) Distributions to noncontrolling interests ( 86 ) ( 62 ) Net cash used in financing activities ( 280,492 ) ( 380,317 ) Net change in cash, cash equivalents and restricted cash ( 255,246 ) ( 78,420 ) Cash, cash equivalents and restricted cash, beginning of period 478,391 133,552 Cash, cash equivalents and restricted cash, end of period $ 223,145 $ 55,132 Non-cash investing and financing activities: Accrued capital expenditures and tenant improvements $ 1,738 $ 95 The accompanying notes are an integral part of these consolidated financial statements. 11 Table of Contents KITE REALTY GROUP TRUST AND KITE REALTY GROUP, L.P. AND SUBSIDIARIES Notes to Consolidated Financial Statements (Unaudited) March 31, 2026 (dollars in thousands, except share, per share, unit and per unit amounts and where indicated in millions or billions) NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Kite Realty Group Trust (the “Parent Company”) is a publicly held real estate investment trust (“REIT”) that, through its majority-owned subsidiary, Kite Realty Group, L.P. (the “Operating Partnership”), owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development, and redevelopment of high-quality, open-air, grocery-anchored shopping centers and vibrant mixed-use assets that are primarily located in high-growth Sun Belt markets and select strategic gateway markets in the United States. The terms “Company,” “we,” “us,” and “our” refer to the Parent Company and the Operating Partnership, collectively, and those entities owned or controlled by the Parent Company and/or the Operating Partnership. The Operating Partnership was formed on August 16, 2004, when the Parent Company contributed properties and the net proceeds from an initial public offering (“IPO”) of shares of its common stock to the Operating Partnership. The Parent Company was organized in Maryland in 2004 to succeed in the acquisition, development, construction, and real estate businesses of its predecessor. We believe the Company qualifies as a REIT under sections 856-860 of the Internal Revenue Code of 1986, as amended (the “Code”). The Parent Company is the sole general partner of the Operating Partnership and, as of March 31, 2026, owned approximately 97.5 % of the common partnership interests in the Operating Partnership (the “General Partner Units”). The remaining 2.5 % of the common partnership interests (the “Limited Partner Units” and, together with the General Partner Units, the “Common Units”) were owned by the limited partners. As the sole general partner of the Operating Partnership, the Parent Company has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Operating Partnership. The Parent Company and the Operating Partnership are operated as one enterprise. The management of the Parent Company consists of the same members as the management of the Operating Partnership. As the sole general partner with control of the Operating Partnership, the Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have any significant assets other than its investment in the Operating Partnership. The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) may have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the presentation not misleading. The unaudited consolidated financial statements as of March 31, 2026 and for the three months ended March 31, 2026 and 2025 include all adjustments, consisting of normal recurring adjustments, necessary in the opinion of management to present fairly the financial information set forth therein. The unaudited consolidated financial statements in this Form 10-Q should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the combined Annual Report on Form 10-K of the Parent Company and the Operating Partnership for the year ended December 31, 2025. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the reported period. Actual results could differ from those estimates. The results of operations for the interim periods are not necessarily indicative of the results that may be expected on an annual basis. 12 Table of Contents As of March 31, 2026, the Company’s portfolio consisted of the following: Properties Square Footage Operating retail/mixed-use properties 159 24,733,159 Operating retail/mixed-use properties – unconsolidated joint ventures 8 2,146,941 Total operating retail/mixed-use properties (1) 167 26,880,100 Standalone office properties (2) 2 413,221 Development and redevelopment projects: One Loudoun Expansion — 119,000 Hamilton Crossing Centre 1 — Edwards Multiplex – Ontario 1 124,614 (1) Included within the operating retail/mixed-use properties are 10 properties that contain an office component. Excludes one operating retail property classified as held for sale as of March 31, 2026, as well as Eastgate Crossing, a 152,682 square foot multi-tenant retail property in the Durham-Chapel Hill metropolitan statistical area (“MSA”) that was reclassified from our operating portfolio in September 2025 due to significant disruption caused by severe flooding as a result of Tropical Storm Chantal. (2) Standalone office properties include the Company’s headquarters at 30 South Meridian and the Carillon medical office building. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Components of Investment Properties The following table summarizes the composition of the Company’s investment properties as of March 31, 2026 and December 31, 2025 (in thousands) : March 31, 2026 December 31, 2025 Land, buildings and improvements $ 6,957,812 $ 6,938,588 Construction in progress 71,449 64,891 Investment properties, at cost $ 7,029,261 $ 7,003,479 Components of Rental Income, including Allowance for Uncollectible Accounts Rental income related to the Company’s operating leases is comprised of the following for the three months ended March 31, 2026 and 2025 (in thousands) : Three Months Ended March 31, 2026 2025 Fixed contractual lease payments – operating leases $ 155,082 $ 168,839 Variable lease payments – operating leases 41,218 46,290 Bad debt reserve ( 1,522 ) ( 2,076 ) Straight-line rent adjustments 2,250 2,787 Straight-line rent reserve for uncollectibility ( 481 ) ( 206 ) Amortization of in-place lease liabilities, net 1,495 3,538 Rental income $ 198,042 $ 219,172 The Company makes estimates as to the collectability of its accounts receivable. In making these estimates, the Company reviews a variety of qualitative and quantitative data and considers such factors as the credit quality of the tenant, historical write-off experience, tenant creditworthiness, and current economic trends, to make a subjective determination. An allowance for uncollectible accounts, including future credit losses of the accrued straight-line rent receivables, is maintained for estimated losses resulting from the inability of certain tenants to meet contractual obligations under their lease agreements. Short-Term Deposits In August 2024, the Company invested $ 350.0 million in short-term deposits, which earned interest at a weighted average interest rate of 5.05 % with a maturity date of February 2025. During the three months ended March 31, 2025, the Company earned $ 2.5 million of interest income on the short-term deposits, which is recorded within “Other income, net” in the accompanying consolidated statements of operations and comprehensive income. 13 Table of Contents Consolidation and Investments in Joint Ventures The accompanying financial statements are presented on a consolidated basis and include all accounts of the Parent Company, the Operating Partnership, the taxable REIT subsidiaries (“TRSs”) of the Operating Partnership, subsidiaries of the Operating Partnership that are controlled, and any variable interest entities (“VIEs”) in which the Operating Partnership is the primary beneficiary. As of March 31, 2026, we owned investments in two consolidated joint ventures that were VIEs in which the partners did not have substantive participating rights, and we were the primary beneficiary. As of March 31, 2026, these consolidated VIEs had mortgage debt totaling $ 106.7 million, which was secured by assets of the VIEs totaling $ 221.7 million. The Operating Partnership guarantees the mortgage debt of these VIEs. The Operating Partnership is considered a VIE as the limited partners do not hold kick-out rights or substantive participating rights. The Parent Company consolidates the Operating Partnership as it is the primary beneficiary. Income Taxes and REIT Compliance Parent Company The Parent Company has been organized and operated, and it intends to continue to operate, in a manner that will enable it to maintain its qualification as a REIT for U.S. federal income tax purposes. As a result, it generally will not be subject to U.S. federal income tax on the earnings that it distributes to the extent it distributes its “REIT taxable income” (determined before the deduction for dividends paid and excluding net capital gains) to shareholders of the Parent Company and meets certain other requirements on a recurring basis. To the extent that it satisfies this distribution requirement but distributes less than 100% of its taxable income, it will be subject to U.S. federal income tax on its undistributed REIT taxable income at regular corporate income tax rates. REITs are subject to a number of organizational and operational requirements. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal income tax on its taxable income at regular corporate income tax rates for a period of four years following the year in which qualification is lost. Additionally, we may also be subject to certain taxes enacted by the Inflation Reduction Act of 2022 that are applicable to non-REIT corporations, including the nondeductible 1% excise tax on certain stock repurchases. We may also be subject to certain U.S. federal, state, and local taxes on our income and property and to U.S. federal income and excise taxes on our undistributed taxable income even if the Parent Company does qualify as a REIT. The Operating Partnership intends to continue to make distributions to the Parent Company in amounts sufficient to assist the Parent Company in adhering to REIT requirements and maintaining its REIT status. We have elected to treat Kite Realty Holdings, LLC and IWR Protective Corporation as TRSs of the Operating Partnership, and we may elect to treat other subsidiaries as TRSs in the future. This election enables us to receive income and provide services that would otherwise be impermissible for a REIT. Deferred tax assets and liabilities are established for temporary differences between the financial reporting bases and the tax bases of assets and liabilities at the tax rates expected to be in effect when the temporary differences reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. Operating Partnership The allocated share of income and loss, other than the operations of our TRSs, is included in the income tax returns of the Operating Partnership’s partners. Accordingly, the only U.S. federal income taxes included in the accompanying consolidated financial statements are in connection with the TRSs. 14 Table of Contents Noncontrolling Interests We report the non-redeemable noncontrolling interests in subsidiaries as equity, and the amount of consolidated net income attributable to these noncontrolling interests is set forth separately in the accompanying consolidated financial statements. The following table summarizes the non-redeemable noncontrolling interests in consolidated properties for the three months ended March 31, 2026 and 2025 (in thousands) : Three Months Ended March 31, 2026 2025 Noncontrolling interests balance as of January 1, $ 1,920 $ 1,893 Net income allocable to noncontrolling interests, excluding redeemable noncontrolling interests 70 70 Distributions to noncontrolling interests ( 86 ) ( 62 ) Noncontrolling interests balance as of March 31, $ 1,904 $ 1,901 Noncontrolling Interests – Joint Venture Prior to the merger with Retail Properties of America, Inc. (“RPAI”) in October 2021, RPAI entered into a joint venture related to the development, ownership, and operation of the multifamily rental portion of the expansion project at One Loudoun Downtown – Pads G & H. The Company owns 90 % of the joint venture. Under terms defined in the joint venture agreement, after construction completion and stabilization of the development project (as defined in the joint venture agreement), the Company has the ability to call, and the joint venture partner has the ability to put to the Company, subject to certain conditions, the joint venture partner’s interest in the joint venture at fair value. As of March 31, 2026, the conditions for exercising the put and call options have been met, but neither the Company nor the joint venture partner has exercised their respective options. The joint venture is considered a VIE primarily because the Company’s joint venture partner does not have substantive kick-out rights or substantive participating rights. The Company is considered the primary beneficiary as it has a controlling financial interest in the joint venture. As such, the Company has consolidated this joint venture and presented the joint venture partner’s interests as noncontrolling interests. Redeemable Noncontrolling Interests – Limited Partners Limited Partner Units are redeemable noncontrolling interests in the Operating Partnership. We classify redeemable noncontrolling interests in the Operating Partnership outside of permanent equity in the accompanying consolidated balance sheets because we may be required to pay cash to holders of Limited Partner Units upon redemption of their interests in the Operating Partnership or deliver registered shares upon their conversion. The carrying amount of the redeemable noncontrolling interests in the Operating Partnership is reflected at the greater of historical book value or redemption value with a corresponding adjustment to additional paid-in capital. As of March 31, 2026 and December 31, 2025, the redemption value of the redeemable noncontrolling interests in the Operating Partnership exceeded the historical book value, and the balances were accordingly adjusted to redemption value. We allocate net operating results of the Operating Partnership after noncontrolling interests in the consolidated properties based on the partners’ respective weighted average ownership interests. We adjust the redeemable noncontrolling interests in the Operating Partnership at the end of each reporting period to reflect their interests in the Operating Partnership or redemption value. This adjustment is reflected in our shareholders’ and Parent Company’s equity. For the three months ended March 31, 2026 and 2025, the weighted average interests of the Parent Company and the limited partners in the Operating Partnership were as follows: Three Months Ended March 31, 2026 2025 Parent Company’s weighted average interest in the Operating Partnership 97.6 % 98.0 % Limited partners’ weighted average interests in the Operating Partnership 2.4 % 2.0 % As of March 31, 2026, the Parent Company’s interest and the limited partners’ redeemable noncontrolling ownership interests in the Operating Partnership were 97.5 % and 2.5 %, respectively. As of December 31, 2025, the Parent Company’s interest and the limited partners’ redeemable noncontrolling ownership interests in the Operating Partnership were 97.7 % and 2.3 %, respectively. 15 Table of Contents Concurrent with the Parent Company’s IPO and related formation transactions, certain individuals received Limited Partner Units of the Operating Partnership in exchange for their interests in certain properties. The limited partners have the right to redeem Limited Partner Units for cash or, at the Parent Company’s election, common shares of the Parent Company in an amount equal to the market value of an equivalent number of common shares of the Parent Company at the time of redemption. Such common shares must be registered, which is not fully in the Parent Company’s control. Therefore, the limited partners’ interest is not reflected within permanent equity. The Parent Company also has the right to redeem the Limited Partner Units directly from the limited partner in exchange for either cash in the amount specified above or a number of its common shares equal to the number of Limited Partner Units being redeemed. There were 5,307,761 and 4,849,588 Limited Partner Units outstanding as of March 31, 2026 and December 31, 2025, respectively. The increase in Limited Partner Units outstanding from December 31, 2025 is due to non-cash compensation awards granted to our executive officers in the form of Limited Partner Units. The redeemable noncontrolling interests in the Operating Partnership for the three months ended March 31, 2026 and 2025 were as follows (in thousands) : Three Months Ended March 31, 2026 2025 Redeemable noncontrolling interests balance as of January 1, $ 116,245 $ 98,074 Net income allocable to redeemable noncontrolling interests 268 464 Distributions declared to redeemable noncontrolling interests ( 2,413 ) ( 2,627 ) Other, net including adjustments to redemption value 16,206 5,708 Total limited partners’ interests in the Operating Partnership balance as of March 31, $ 130,306 $ 101,619 Fair Value Measurements We follow the framework established under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures , for measuring the fair value of non-financial assets and liabilities that are not required or permitted to be measured at fair value on a recurring basis but only in certain circumstances, such as a business combination or upon determination of an impairment. Assets and liabilities recorded at fair value in the accompanying consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: • Level 1 fair value inputs are quoted prices in active markets for identical instruments to which we have access. • Level 2 fair value inputs are inputs other than quoted prices included in Level 1 that are observable for similar instruments, either directly or indirectly, and appropriately consider counterparty creditworthiness in the valuation. • Level 3 fair value inputs reflect our best estimate of inputs and assumptions market participants would use in pricing an instrument at the measurement date. The inputs are unobservable in the market and significant to the valuation estimate. In instances where the determination of the fair value measurement is based upon inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. New Accounting Pronouncements In November 2024, the FASB issued Accounting Standards Update 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . This guidance requires public entities to disclose, in a tabular format, the amounts of certain natural expenses included within relevant expense captions presented on the face of the income statement and provide additional disclosures about selling expenses. The disclosure requirements are effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. 16 Table of Contents NOTE 3. ACQUISITIONS The Company did not acquire any operating properties during the three months ended March 31, 2026. The Company acquired vacant land in the Indianapolis MSA for a purchase price of $ 7.8 million during the three months ended March 31, 2026. The Company closed on the following wholly owned asset acquisition during the three months ended March 31, 2025 (dollars in thousands) : Date Property Name Ownership Interest MSA Property Type Square Footage Acquisition Price January 15, 2025 Village Commons 100 % Miami Multi-tenant retail 170,976 $ 68,400 The above acquisition was funded using a combination of available cash on hand and borrowings on the Company’s unsecured revolving line of credit. Substantially all of the purchase price was allocated to investment properties. In March 2025, the Company entered into a joint venture with a leading global investment firm, and on April 28, 2025, the joint venture acquired Legacy West, a 342,011 square foot operating retail property in the Dallas/Ft. Worth MSA (the “Legacy West Joint Venture”), for a gross purchase price of $ 785.0 million, including the assumption of $ 304.0 million of debt with an interest rate of 3.80 %. The Company owns 52 % of the equity in the Legacy West Joint Venture, which is being accounted for pursuant to the equity method of accounting. The Company’s share of the purchase price is $ 408.2 million, and the acquisition was initially funded with borrowings of $ 255.0 million on the Company’s unsecured revolving line of credit. Legacy West also contains 443,553 square feet of office space and 782 multifamily units. See Note 5 to the accompanying consolidated financial statements for details of the Legacy West Joint Venture. NOTE 4. DISPOSITIONS AND IMPAIRMENT CHARGES The Company closed on the following disposition during the three months ended March 31, 2026 (dollars in thousands) : Date Property Name MSA Property Type Square Footage Sales Price Gain (Loss) March 5, 2026 Coram Plaza New York Multi-tenant retail 138,385 $ 12,500 $ 60 During the three months ended March 31, 2026, the Company received net proceeds of $ 3.2 million and recognized a gain of $ 1.0 million in connection with the sale of the second phase of a land parcel and the rights to develop 14 residential units at the expansion project at One Loudoun Downtown (the “One Loudoun Expansion”) in the Washington, D.C. MSA. The Company did not sell any properties during the three months ended March 31, 2025. Investment Properties Held for Sale City Center, a 362,278 square foot multi-tenant retail property in the New York MSA, remains held for sale as of March 31, 2026. This property qualified for held-for-sale accounting treatment upon meeting all applicable GAAP criteria as of June 30, 2024, at which time depreciation and amortization were ceased, and continues to meet the GAAP criteria for held-for-sale accounting treatment as of March 31, 2026. In addition, the assets and liabilities associated with this property remain separately classified as held for sale in the accompanying consolidated balance sheets as of March 31, 2026 and December 31, 2025. 17 Table of Contents The following table presents the assets and liabilities associated with City Center, the investment property classified as held for sale as of March 31, 2026 and December 31, 2025. In addition, Coram Plaza was classified as held for sale as of December 31, 2025 (in thousands) : March 31, 2026 December 31, 2025 Assets Investment properties, net $ 47,177 $ 64,899 Tenant and other receivables 2,627 2,676 Restricted cash and escrow deposits 25 25 Deferred costs, net 3,497 3,088 Prepaid and other assets 747 417 Assets associated with investment properties held for sale $ 54,073 $ 71,105 Liabilities Accounts payable and accrued expenses $ 761 $ 811 Deferred revenue and other liabilities 2,993 3,503 Liabilities associated with investment properties held for sale $ 3,754 $ 4,314 There were no discontinued operations for the three months ended March 31, 2026 and 2025 as none of the dispositions or planned dispositions represented a strategic shift that has had, or will have, a material effect on our operations or financial results. Valuation of Investment Properties As of March 31, 2026, in connection with the preparation and review of the first quarter 2026 financial statements and in conjunction with continuing to classify City Center as held for sale, we evaluated City Center for impairment and recorded a $ 5.9 million impairment charge based upon the terms and conditions of purchase offers received, indicating an estimated carrying value of $ 50.0 million, excluding working capital accounts, less estimated selling costs of $ 0.5 million. NOTE 5. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES The following table summarizes the Company’s investments in unconsolidated joint ventures as of March 31, 2026 and December 31, 2025 (dollars in thousands) : Date of Investment Ownership Interest Investment at Joint Venture March 31, 2026 December 31, 2025 Embassy Suites at Eddy Street Commons (1) December 2017 35 % $ 8,760 $ 8,797 Nuveen Portfolio Joint Venture (2) June 2018 20 % 5,601 5,552 Glendale Multifamily Joint Venture (3) May 2020 11.5 % 27 409 The Corner – IN Joint Venture (4) September 2021 50 % 114 — Legacy West Joint Venture April 2025 52 % 224,605 230,093 Seed Asset Joint Venture June 2025 52 % 114,948 117,056 Other investments 2,500 2,500 $ 356,555 $ 364,407 (1) The Company formed a joint venture with an unrelated third party to develop and own an Embassy Suites hotel next to Eddy Street Commons, our operating retail property at the University of Notre Dame. The Company contributed $ 1.4 million in cash to the joint venture in return for a 35 % ownership interest. In 2017, the joint venture entered into a $ 33.8 million construction loan, which was repaid during the year ended December 31, 2025, of which the Company contributed $ 10.2 million, representing our 35 % share of the debt repaid. (2) The Company formed a joint venture with Nuveen Real Estate, formerly known as TH Real Estate, and contributed three properties (Livingston Shopping Center, Plaza Volente, and Tamiami Crossing) to the joint venture, valued at $ 99.8 million in the aggregate, and, after considering third-party debt obtained by the joint venture upon formation, the Company contributed $ 10.0 million for a 20 % noncontrolling ownership interest in the joint venture. The Company is the operating member of the joint venture and earns fees for providing property management and leasing services. 18 Table of Contents (3) The Company formed a joint venture with an unrelated third party for the planned development of a multifamily project adjacent to Glendale Town Center, our operating retail property in the Indianapolis MSA. The Company contributed land valued at $ 1.6 million to the joint venture and retained an 11.5 % ownership interest in the joint venture. The Company’s partner is the operating member of the joint venture. On January 31, 2024, the joint venture that owned Glendale Center Apartments sold the 267 -unit property to a third party, resulting in a gain on sale of $ 20.2 million. The Company recognized its share of the gain from the sale of unconsolidated property of $ 2.3 million and received a $ 1.6 million distribution upon the disposition of the property during 2024. The Company maintains an investment in the joint venture, which is in the process of winding up its activities and distributing remaining net assets. (4) The Company formed a joint venture with an unrelated third party for the planned redevelopment of The Corner in the Indianapolis MSA into a mixed-use, multifamily, and retail project. The Company contributed land valued at $ 4.0 million to the joint venture and retained a 50 % ownership interest in the joint venture. During the three months ended March 31, 2025, we completed major development construction activities at The Corner – IN and reclassified the property from active development into our operating portfolio in March 2025. In March 2025, the Company entered into a joint venture with a leading global investment firm, and on April 28, 2025, the joint venture acquired Legacy West in the Dallas/Fort Worth MSA. See Note 3 to the accompanying consolidated financial statements for details on the acquisition. The Company owns 52 % of the equity in the Legacy West Joint Venture. The Company is the operating member of the joint venture, and an affiliate of the Company is the property manager responsible for the day-to-day management of Legacy West. The Company provides leasing, construction, and property management services to the Legacy West Joint Venture, for which it earns fees. In June 2025, the Company entered into a second joint venture with the global investment firm and contributed three previously wholly owned properties valued at $ 233.0 million in the aggregate for a 52 % noncontrolling interest in the Seed Asset Joint Venture. The Company is the operating member of the joint venture, and an affiliate of the Company is the property manager responsible for the day-to-day management of the three properties. The Company provides leasing, construction, and property management services to the Seed Asset Joint Venture, for which it earns fees. The Company and our joint venture partners each have substantive participating rights over major decisions that impact the economics and operations of the joint ventures. The Company has the ability to exercise significant influence but does not have financial or operating control over these investments, and as a result, the Company accounts for these investments pursuant to the equity method of accounting. Under the equity method, the net equity investment of the Company is reflected in the accompanying consolidated balance sheets, and the Company’s share of net income or loss from each unconsolidated joint venture is included in the accompanying consolidated statements of operations and comprehensive income. Distributions from these investments that are related to income from operations are included as operating activities, and distributions that are related to capital transactions are included in investing activities in the Company’s consolidated statements of cash flows. NOTE 6. DEFERRED COSTS AND INTANGIBLES, NET Deferred costs consist primarily of acquired lease intangible assets, broker fees, and capitalized internal commissions incurred in connection with lease originations. Deferred leasing costs, lease intangibles, and similar costs are amortized on a straight-line basis over the terms of the related leases. As of March 31, 2026 and December 31, 2025, deferred costs consisted of the following (in thousands) : March 31, 2026 December 31, 2025 Acquired lease intangible assets $ 237,653 $ 260,108 Deferred leasing costs and other 92,791 91,550 330,444 351,658 Less: accumulated amortization ( 154,142 ) ( 167,017 ) $ 176,302 $ 184,641 Less: deferred costs associated with investment properties held for sale ( 3,497 ) ( 3,088 ) Deferred costs, net $ 172,805 $ 181,553 19 Table of Contents The amortization of deferred leasing costs, lease intangibles and other is included within “Depreciation and amortization” in the accompanying consolidated statements of operations and comprehensive income. The amortization of above-market lease intangibles is included as a reduction to “Rental income” in the accompanying consolidated statements of operations and comprehensive income. The amounts of such amortization included in the accompanying consolidated statements of operations and comprehensive income are as follows (in thousands) : Three Months Ended March 31, 2026 2025 Amortization of deferred leasing costs, lease intangibles and other $ 10,814 $ 18,081 Amortization of above-market lease intangibles $ 1,224 $ 1,954 NOTE 7. DEFERRED REVENUE, INTANGIBLES, NET AND OTHER LIABILITIES Deferred revenue and other liabilities consist of (i) the unamortized fair value of below-market lease liabilities recorded in connection with purchase accounting, (ii) retainage payables for development and redevelopment projects, (iii) tenant rent payments received in advance of the month in which they are due, and (iv) lease liabilities. The amortization of below-market lease liabilities is recognized as revenue over the remaining life of the leases (including option periods for leases with below-market renewal options) through 2085. Tenant rent payments received in advance are recognized as revenue in the period to which they apply, which is typically the month following their receipt. As of March 31, 2026 and December 31, 2025, deferred revenue, intangibles, net and other liabilities consisted of the following (in thousands) : March 31, 2026 December 31, 2025 Unamortized in-place lease liabilities $ 107,013 $ 110,038 Retainage payables and other 8,276 18,479 Tenant rents received in advance 30,567 31,456 Lease liabilities 64,740 65,343 $ 210,596 $ 225,316 Less: deferred revenue associated with investment properties held for sale ( 2,993 ) ( 3,503 ) Deferred revenue and other liabilities $ 207,603 $ 221,813 The amortization of below-market lease intangibles is included as a component of “Rental income” in the accompanying consolidated statements of operations and comprehensive income and totaled $ 2.7 million and $ 9.1 million for the three months ended March 31, 2026 and 2025, respectively. NOTE 8. MORTGAGE AND OTHER INDEBTEDNESS The following table summarizes the Company’s indebtedness as of March 31, 2026 and December 31, 2025 (in thousands) : March 31, 2026 December 31, 2025 Mortgages payable $ 141,605 $ 142,937 Senior unsecured notes 2,250,000 2,250,000 Unsecured term loans 550,000 550,000 Unsecured revolving line of credit 53,000 85,000 2,994,605 3,027,937 Unamortized discounts and premiums, net 17,033 18,394 Unamortized debt issuance costs, net ( 19,249 ) ( 20,853 ) Mortgage and other indebtedness, net $ 2,992,389 $ 3,025,478 20 Table of Contents Consolidated indebtedness, including weighted average interest rates and weighted average maturities as of March 31, 2026, considering the impact of interest rate swaps, is summarized below (dollars in thousands) : Amount Outstanding Ratio Weighted Average Interest Rate Weighted Average Years to Maturity Fixed rate debt (1) $ 2,530,005 84 % 4.28 % 4.3 Variable rate debt 464,600 16 % 4.58 % 2.2 Debt discounts, premiums and issuance costs, net ( 2,216 ) N/A N/A N/A Mortgage and other indebtedness, net $ 2,992,389 100 % 4.33 % 4.0 (1) Fixed rate debt includes the portion of variable rate debt that has been hedged by interest rate swaps. As of March 31, 2026, $ 150.0 million in variable rate debt is hedged to a fixed rate through July 17, 2026. Mortgages Payable The following table summarizes the Company’s mortgages payable (dollars in thousands) : March 31, 2026 December 31, 2025 Balance Weighted Average Interest Rate Weighted Average Years to Maturity Balance Weighted Average Interest Rate Weighted Average Years to Maturity Fixed rate mortgages payable (1) $ 130,005 5.12 % 5.9 $ 130,737 5.11 % 6.2 Variable rate mortgage payable (2) 11,600 5.81 % 0.3 12,200 5.84 % 0.6 Total mortgages payable $ 141,605 $ 142,937 (1) The fixed rate mortgages had interest rates ranging from 3.75 % to 5.73 % as of March 31, 2026 and December 31, 2025. (2) The interest rate on the variable rate mortgage is based on the Secured Overnight Financing Rate (“ SOFR ”) plus 215 basis points. The one-month SOFR rate was 3.66 % and 3.69 % as of March 31, 2026 and December 31, 2025, respectively. Mortgages payable, which are secured by certain real estate and, in some cases, by guarantees from the Operating Partnership, are generally due in monthly installments of principal and interest and mature over various terms through 2033. During the three months ended March 31, 2026, we made scheduled principal payments of $ 1.3 million related to amortizing loans. Unsecured Notes The following table summarizes the Company’s senior unsecured notes and exchangeable senior notes (dollars in thousands) : March 31, 2026 December 31, 2025 Maturity Date Balance Interest Rate Balance Interest Rate Senior notes – 4.08 % due 2026 September 30, 2026 $ 100,000 4.08 % $ 100,000 4.08 % Senior notes – 4.00 % due 2026 October 1, 2026 300,000 4.00 % 300,000 4.00 % Senior exchangeable notes – 0.75 % due 2027 April 1, 2027 175,000 0.75 % 175,000 0.75 % Senior notes – 4.57 % due 2027 September 10, 2027 75,000 4.57 % 75,000 4.57 % Senior notes – 4.24 % due 2028 December 28, 2028 100,000 4.24 % 100,000 4.24 % Senior notes – 4.82 % due 2029 June 28, 2029 100,000 4.82 % 100,000 4.82 % Senior notes – 4.75 % due 2030 September 15, 2030 400,000 4.75 % 400,000 4.75 % Senior notes – 4.95 % due 2031 December 15, 2031 350,000 4.95 % 350,000 4.95 % Senior notes – 5.20 % due 2032 August 15, 2032 300,000 5.20 % 300,000 5.20 % Senior notes – 5.50 % due 2034 (1) March 1, 2034 350,000 4.60 % 350,000 4.60 % Total senior unsecured notes $ 2,250,000 $ 2,250,000 (1) The coupon rate is 5.50 %; however, as a result of hedging activities, the Company’s interest rate is 4.60 %. 21 Table of Contents Unsecured Term Loans and Revolving Line of Credit The following table summarizes the Company’s term loans and revolving line of credit (dollars in thousands) : March 31, 2026 December 31, 2025 Maturity Date Balance Interest Rate Balance Interest Rate Unsecured term loan due 2027 – variable rate (1) October 24, 2027 $ 250,000 4.53 % $ 250,000 4.72 % Unsecured term loan due 2029 – fixed rate (2) July 29, 2029 300,000 3.52 % 300,000 3.54 % Total unsecured term loans $ 550,000 $ 550,000 Unsecured credit facility revolving line of credit – variable rate (3) October 3, 2028 $ 53,000 4.73 % $ 85,000 4.92 % (1) The maturity date of the term loan may be extended by one one-year period at the Operating Partnership’s election, subject to certain conditions. (2) $ 150,000 of the $ 300,000 SOFR -based variable rate debt has been swapped to a fixed rate of 1.68 % plus a credit spread based on a ratings grid ranging from 0.75 % to 1.60 % through July 17, 2026. The applicable credit spread was 0.85 % as of March 31, 2026 and December 31, 2025. The interest rate shown is the weighted average rate as of March 31, 2026. (3) The revolving line of credit can be extended for either one one-year period or up to two six-month periods at the Company’s election, subject to (i) customary representations and warranties, including, but not limited to, the absence of an event of default as defined in the unsecured credit agreement and (ii) payment of an extension fee equal to 0.075 % of the revolving line of credit capacity. Unsecured Revolving Credit Facility In October 2024, the Operating Partnership, as borrower, and the Company entered into the Third Amendment (the “Third Amendment”) to the Sixth Amended and Restated Credit Agreement, dated as of July 8, 2021 (as amended, the “Credit Agreement”) with a syndicate of financial institutions to provide for an unsecured revolving credit facility aggregating $ 1.1 billion (the “Revolving Facility”) and a seven-year $ 300.0 million unsecured term loan that matures in July 2029 (the “$ 300 M Term Loan”). Under the Credit Agreement, the Operating Partnership has the option, subject to certain customary conditions, to increase the Revolving Facility and/or incur additional term loans up to a maximum aggregate amount not to exceed $ 2.0 billion. The Revolving Facility matures on October 3, 2028, which maturity date may be extended for either one one-year period or up to two six-month periods at the Operating Partnership’s option, subject to certain conditions. The Revolving Facility had an outstanding balance of $ 53.0 million and $ 85.0 million as of March 31, 2026 and December 31, 2025, respectively. Borrowings under the Revolving Facility bear interest at a rate per annum equal to SOFR plus a margin based on the Operating Partnership’s leverage ratio or credit rating, respectively, plus a facility fee based on the Operating Partnership’s leverage ratio or credit rating, respectively. The Revolving Facility is currently priced on the leverage-based pricing grid. In accordance with the Credit Agreement, the credit spread set forth in the leverage grid resets quarterly based on the Company’s leverage, as calculated at the previous quarter end. The Company may irrevocably elect to convert to the ratings-based pricing grid at any time. As of March 31, 2026, making such an election would have resulted in a lower interest rate; however, the Company had not made the election to convert to the ratings-based pricing grid. As specified in the Credit Agreement, in the event that the Company so elects to convert to the ratings-based pricing grid, the Company has the ability to obtain more favorable pricing in certain circumstances when its total leverage ratio is (x) less than or equal to 35.0 % or (y) greater than 35.0 % but less than or equal to 37.5 % with respect to not more than one fiscal quarter following a period in which the condition described in clause (x) was satisfied (the “Leverage Toggle”). The Credit Agreement also includes an adjustment to the sustainability-linked pricing provisions that allows the otherwise applicable interest rate margin to be reduced by up to two basis points if certain greenhouse gas emission reduction targets are achieved. The greenhouse gas emission reduction targets have not been achieved as of March 31, 2026. The following table summarizes the key terms of the Revolving Facility as of March 31, 2026 (dollars in thousands) : Leverage-Based Pricing Investment-Grade Pricing Credit Agreement Maturity Date Extension Options Extension Fee Credit Spread Facility Fee Credit Spread Facility Fee $ 1,100,000 unsecured revolving line of credit October 3, 2028 1 one-year or 2 six-month 0.075 % 1.05 %– 1.50 % 0.15 %– 0.30 % 0.725 %– 1.40 % 0.125 %– 0.30 % 22 Table of Contents The Operating Partnership’s ability to borrow under the Credit Agreement is subject to ongoing compliance by the Operating Partnership and its subsidiaries with various restrictive covenants, including with respect to liens, transactions with affiliates, dividends, mergers and asset sales. In addition, the Credit Agreement requires that the Operating Partnership satisfy certain financial covenants, including (i) a maximum leverage ratio; (ii) a minimum fixed charge coverage ratio; (iii) a maximum secured indebtedness ratio; (iv) a maximum unsecured leverage ratio; and (v) a minimum unencumbered interest coverage ratio. As of March 31, 2026, we were in compliance with all such covenants. As of March 31, 2026, we had outstanding letters of credit totaling $ 4.2 million with no amounts advanced against these instruments. Unsecured Term Loans As of March 31, 2026, the Operating Partnership has the following unsecured term loans: (i) a $ 250.0 million unsecured term loan that matures in October 2027 (the “$ 250 M Term Loan”) and (ii) the $ 300 M Term Loan that matures in July 2029, both of which bear interest at a rate of SOFR plus a credit spread based on a ratings-based pricing grid. The loan agreements related to the $ 250 M Term Loan and the $ 300 M Term Loan include the same Leverage Toggle for determining pricing and sustainability-linked pricing provisions as described above for the Credit Agreement. The greenhouse gas emission reduction targets have not been achieved as of March 31, 2026. The following table summarizes the key terms of the unsecured term loans as of March 31, 2026 (dollars in thousands) : Unsecured Term Loans Maturity Date Investment-Grade Pricing Credit Spread $ 250,000 unsecured term loan due 2027 October 24, 2027 (1) 0.75 % – 1.60 % $ 300,000 unsecured term loan due 2029 July 29, 2029 0.75 % – 1.60 % (1) The maturity date may be extended by one one-year period at the Operating Partnership’s option, subject to certain conditions. The Operating Partnership has the option to increase the $ 250 M Term Loan to $ 300.0 million, subject to certain conditions, including obtaining commitments from any one or more lenders, whether or not currently party to the term loan agreement, to provide such increased amounts. The Operating Partnership is permitted to prepay the $ 250 M Term Loan in whole or in part, without premium or penalty. The Operating Partnership is permitted to prepay the $ 300 M Term Loan in whole or in part at any time, without premium or penalty. The unsecured term loan agreements contain representations, financial and other affirmative and negative covenants, and events of default that are substantially similar to those contained in the Credit Agreement. The unsecured term loan agreements all rank pari passu with the Operating Partnership’s Revolving Facility and other unsecured indebtedness of the Operating Partnership. Debt Issuance Costs Debt issuance costs are amortized over the terms of the respective loans. The following amounts of amortization of debt issuance costs are included as a component of “Interest expense” in the accompanying consolidated statements of operations and comprehensive income (in thousands) : Three Months Ended March 31, 2026 2025 Amortization of debt issuance costs $ 1,759 $ 1,644 23 Table of Contents Debt Discounts and Premiums Debt discounts and premiums, including the related value of interest rate swaps that were assumed in the October 2021 merger with RPAI, are amortized over the terms of the respective loans. The following amounts of amortization are included as a component of “Interest expense” in the accompanying consolidated statements of operations and comprehensive income (in thousands) : Three Months Ended March 31, 2026 2025 Amortization of debt discounts, premiums and hedge instruments $ 1,597 $ 2,756 In addition, the estimated amounts of the reduction to interest expense as of March 31, 2026 for each of the next five years and thereafter related to the amortization of debt discounts, premiums and assumed hedge instruments, assuming these instruments are held to maturity, are as follows (in thousands) : April 2026 through December 2026 $ 4,187 2027 4,709 2028 4,699 2029 3,773 2030 2,031 Thereafter ( 2,084 ) Total unamortized debt discounts, premiums and hedge instruments $ 17,315 The following table reconciles total unamortized debt discounts, premiums and hedge instruments as of March 31, 2026 to the balance of unamortized discounts and premiums, net (in thousands) : Unamortized discounts and premiums on mortgages payable, senior unsecured notes and unsecured term loans $ 17,033 Unamortized hedge instruments 282 Total unamortized debt discounts, premiums and hedge instruments 17,315 Unamortized hedge instruments (included in accumulated other comprehensive income) ( 282 ) Unamortized discounts and premiums, net $ 17,033 Fair Value of Fixed and Variable Rate Debt As of March 31, 2026, the estimated fair value of fixed rate debt was $ 2.4 billion compared to the book value of $ 2.4 billion. The fair value was estimated using Level 2 and Level 3 inputs with cash flows discounted at current borrowing rates for similar instruments, which ranged from 4.85 % to 6.63 %. As of March 31, 2026, the estimated fair value of variable rate debt was $ 615.0 million compared to the book value of $ 614.6 million. The fair value was estimated using Level 2 and Level 3 inputs with cash flows discounted at a current borrowing rate for similar instruments, which ranged from 4.51 % to 5.81 %. NOTE 9. DERIVATIVE INSTRUMENTS, HEDGING ACTIVITIES AND OTHER COMPREHENSIVE INCOME In order to manage potential future variable interest rate risk, we enter into interest rate derivative agreements from time to time. We do not use interest rate derivative agreements for trading or speculative purposes. The agreements with each of our derivative counterparties provide that in the event of default on any of our indebtedness, we could also be declared in default on our derivative obligations. The following table summarizes the terms and fair values of the Company’s derivative financial instruments that were designated and qualified as part of a hedging relationship as of March 31, 2026 and December 31, 2025 (dollars in thousands) : Fair Value Assets (Liabilities) (1) Type of Hedge Number of Instruments Aggregate Notional Reference Rate Interest Rate Effective Date Maturity Date March 31, 2026 December 31, 2025 Cash Flow (2) Three $ 150,000 SOFR 1.68 % 8/15/2022 7/17/2026 $ 877 $ 1,503 (1) Derivatives in an asset position are included within “Prepaid and other assets” and derivatives in a liability position are included within “Accounts payable and accrued expenses” in the accompanying consolidated balance sheets. 24 Table of Contents (2) These interest rate swaps were assigned to the Company’s $ 300 M Term Loan effective August 1, 2025. These interest rate derivative agreements are the only assets or liabilities that we record at fair value on a recurring basis. The valuation of these assets and liabilities is determined using widely accepted techniques, including discounted cash flow analysis. These techniques consider the contractual terms of the derivatives (including the period to maturity) and use observable market-based inputs such as interest rate curves and implied volatilities. We also incorporate credit valuation adjustments into the fair value measurements to reflect nonperformance risk on both our part and that of the respective counterparties. We have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, although the credit valuation adjustments associated with our derivatives use Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and our counterparties. As of March 31, 2026 and December 31, 2025, we assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations are classified within Level 2 of the fair value hierarchy. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to earnings over time as the hedged items are recognized in earnings. Approximately $ 1.6 million and $ 2.6 million was reclassified as a reduction to interest expense during the three months ended March 31, 2026 and 2025, respectively. As interest payments on our derivatives are made over the next 12 months, we estimate the decrease to interest expense to be approximately $ 4.3 million, assuming the current SOFR curve. Unrealized gains and losses on our interest rate derivative agreements are the only components of the change in accumulated other comprehensive income. NOTE 10. SEGMENT REPORTING An operating segment is a component of a public entity that engages in business activities from which it may earn revenues and incur expenses and has discrete financial information available that is regularly reviewed by the chief operating decision maker (the “CODM”). The Company’s primary business is the ownership and operation of high-quality, open-air shopping centers and mixed-use assets that are primarily grocery-anchored and located in high-growth Sun Belt markets and select strategic gateway markets in the United States. We derive our revenue primarily from the collection of contractual rents and reimbursement payments from tenants under existing lease agreements at each of our properties. The Company’s CODM, which is its Chief Executive Officer, regularly reviews operating and financial information for each property on an individual basis; therefore, each property represents an individual operating segment. The CODM does not distinguish or group our operations on a geographical or any other basis for purposes of measuring performance and allocating capital. Across our properties, the financial performance, revenue generating activities, and customer base is determined to be economically similar; therefore, all operating segments have been aggregated into one reportable segment. The CODM measures and evaluates the financial performance of our portfolio of properties and decides how resources are allocated based on net operating income. The CODM uses net operating income to evaluate income generated from each property in deciding whether to reinvest profits for recurring capital expenditures or into other parts of the business, such as for acquisitions, developments, scheduled interest and principal payments on our indebtedness, or to pay dividends. Net operating income is also used to monitor budget versus actual results in assessing the performance of our properties. The CODM does not regularly review total assets for our single reportable segment as total assets are not used to assess performance or allocate resources. 25 Table of Contents The following table presents information on the Company’s reported segment revenue, net operating income, and significant segment expenses for the three months ended March 31, 2026 and 2025 that are provided to the CODM and included within the Company’s single reportable operating segment measure of profit or loss: Three Months Ended March 31, 2026 2025 Revenue: Minimum rent $ 153,150 $ 173,988 Tenant reimbursements 44,794 46,213 Bad debt reserve ( 1,522 ) ( 2,076 ) Other property-related revenue 798 955 Overage rent 1,619 1,048 Total revenue 198,839 220,128 Expenses: Property operating – recoverable 26,748 25,798 Property operating – non-recoverable 3,989 3,661 Real estate taxes 24,641 27,604 Total expenses 55,378 57,063 Net operating income 143,461 163,065 Other income (expense): Net gains from outlot sales 1,039 — Other general and administrative expenses ( 13,950 ) ( 12,258 ) Fee income 1,296 425 Impairment charges ( 5,888 ) — Depreciation and amortization ( 82,491 ) ( 98,231 ) Interest expense ( 31,696 ) ( 32,954 ) Equity in loss of unconsolidated subsidiaries ( 2,216 ) ( 607 ) Income tax expense of taxable REIT subsidiaries ( 395 ) ( 10 ) Other income, net 2,572 4,743 Gain on sales of operating properties, net — 91 Net income 11,732 24,264 Net income attributable to noncontrolling interests ( 338 ) ( 534 ) Net income attributable to common shareholders $ 11,394 $ 23,730 NOTE 11. SHAREHOLDERS’ EQUITY Distributions Our Board of Trustees declared a cash distribution of $ 0.29 per common share and Common Unit for the first quarter of 2026. This distribution was paid on April 16, 2026 to common shareholders and common unitholders of record as of April 9, 2026. In January 2026, in addition to the payment of the fourth quarter 2025 distribution of $ 0.29 per common share and Common Unit, to meet certain REIT distribution requirements, we paid a special cash distribution of $ 0.145 per common share and Common Unit to common shareholders and common unitholders of record as of January 9, 2026, totaling $ 30.7 million. For the three months ended March 31, 2025, we declared a cash distribution of $ 0.27 per common share and Common Unit. Share Repurchase Program In February 2021, our Board of Trustees approved a share repurchase program under which the Company may repurchase, from time to time, up to an aggregate of $ 150.0 million of our common shares. In April 2022, our Board of Trustees increased the size of the program from $ 150.0 million to $ 300.0 million of our common shares, and in February 2026, further increased 26 Table of Contents the size of the program from $ 300.0 million to $ 600.0 million of our common shares (the “Share Repurchase Program”). The Company intends to fund any future repurchases under the Share Repurchase Program with cash on hand or availability under the Revolving Facility, subject to any applicable restrictions. The timing of share repurchases and the number of common shares to be repurchased under the Share Repurchase Program will depend upon prevailing market conditions, regulatory requirements, and other factors. In November 2025, the Company extended the Share Repurchase Program for an additional year to February 28, 2027, if not terminated or extended prior to that date. During the three months ended March 31, 2026 , the Company repurchased approximately 6.0 million common shares at an average price per share of $ 25.19 for a total of $ 152.3 million. As of March 31, 2026, $ 200.0 million remained available for repurchases of common shares under the Company’s Share Repurchase Program. The Company did not repurchase any shares during the three months ended March 31, 2025 . NOTE 12. EARNINGS PER SHARE OR UNIT Basic earnings per share or unit is calculated based on the weighted average number of common shares or units outstanding during the period. Diluted earnings per share or unit is calculated based on the weighted average number of common shares or units outstanding during the period combined with the incremental weighted average common shares or units that would have been outstanding assuming the conversion of all potentially dilutive common shares or units into common shares or units as of the earliest date possible. Potentially dilutive securities include (i) outstanding options to acquire common shares; (ii) Limited Partner Units, which may be exchanged for either cash or common shares at the Parent Company’s option and under certain circumstances; (iii) Appreciation Only Long-Term Incentive Plan Units; (iv) deferred common share units, which may be credited to the personal accounts of members of the Board of Trustees in lieu of compensation paid in cash or the issuance of common shares to such trustees, and (v) common shares issuable upon the exchange of the Company’s Exchangeable Notes. The Company calculates the potential dilutive effect of the Exchangeable Notes under the if-converted method, which considers only the amounts settled in excess of the principal in diluted earnings per share as the principal must be paid in cash. Limited Partner Units have been omitted from the Parent Company’s denominator for the purpose of computing diluted earnings per share since the effect of including those amounts in the denominator would have no dilutive impact. Weighted average Limited Partner Units outstanding were 5.1 million and 4.5 million for the three months ended March 31, 2026 and 2025, respectively. The following table summarizes the calculation of basic and diluted earnings per share for the Parent Company for the three months ended March 31, 2026 and 2025. We have omitted the calculation of basic and diluted earnings per unit since the dilutive securities for the Operating Partnership are the same as those for the Parent Company (dollars in thousands, except per share data) : Three Months Ended March 31, 2026 2025 Numerator: Net income attributable to common shareholders – basic and diluted $ 11,394 $ 23,730 Denominator: Weighted average common shares outstanding – basic 205,686,342 219,715,674 Effect of dilutive securities: AO LTIP Units — 40,303 Deferred common share units 89,013 71,321 Exchangeable Notes 288,113 — Weighted average common shares outstanding – diluted 206,063,468 219,827,298 Net income per common share – basic $ 0.06 $ 0.11 Net income per common share – diluted $ 0.06 $ 0.11 27 Table of Contents NOTE 13. COMMITMENTS AND CONTINGENCIES Other Commitments and Contingencies We are obligated under various completion guarantees with certain lenders and lease agreements with tenants to complete all or portions of a development project and tenant-specific space that are currently under construction. We believe we currently have sufficient financing in place to fund these projects and expect to do so primarily through free cash flow or borrowings on the Revolving Facility. In 2021, we provided repayment and completion guarantees on loans totaling $ 66.2 million associated with the development of The Corner mixed-use project in the Indianapolis MSA. As of March 31, 2026, the outstanding balance of the loans was $ 69.7 million, of which our share was $ 34.9 million. As of March 31, 2026, we had outstanding letters of credit totaling $ 4.2 million with no amounts advanced against these instruments. In July 2025, Eastgate Crossing, a 152,682 square foot multi-tenant retail property in the Durham-Chapel Hill MSA, experienced severe flooding as a result of Tropical Storm Chantal. During the three months ended March 31, 2026, the Company completed all remediation and reconstruction activities. The Company has third-party insurance coverage, including business interruption coverage, related to this event, and based on the coverage available and reimbursements received or expected, we do not believe the flood had a material adverse effect on our consolidated results of operations or financial condition. Legal Proceedings We are not subject to any material litigation, nor, to management’s knowledge, is any material litigation currently threatened against us. We are parties to routine litigation, claims, and administrative proceedings arising in the ordinary course of business. Management believes that such matters will not have a material adverse impact on our consolidated financial condition, results of operations, or cash flows taken as a whole. NOTE 14. SUBSEQUENT EVENTS In connection with the preparation of our financial statements, we have evaluated events and transactions that occurred subsequent to March 31, 2026 for recognition and/or disclosure purposes. Based on this evaluation, there were no subsequent events from March 31, 2026 through the date the financial statements were issued warranting recognition and/or disclosure. 28