NETSTREIT Corp. 10-Q

Item 1. Financial Statements (unaudited) NETSTREIT CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited) June 30, 2025 December 31, 2024 Assets Real estate, at cost: Land $ 618,577 $ 571,272 Buildings and improvements 1,416,931 1,400,393 Total real estate, at cost 2,035,508 1,971,665 Less accumulated depreciation ( 165,707 ) ( 143,422 ) Property under development 1,782 6,118 Real estate held for investment, net 1,871,583 1,834,361 Assets held for sale 57,795 48,637 Mortgage loans receivable, net 152,779 139,409 Cash, cash equivalents, and restricted cash 19,740 14,320 Lease intangible assets, net 154,701 164,392 Other assets, net 55,116 58,227 Total assets $ 2,311,714 $ 2,259,346 Liabilities and equity Liabilities: Term loans, net $ 795,976 $ 622,608 Revolving credit facility 127,000 239,000 Mortgage note payable, net 7,834 7,853 Lease intangible liabilities, net 18,294 20,177 Liabilities related to assets held for sale 1,816 1,912 Accounts payable, accrued expenses, and other liabilities 37,249 29,664 Total liabilities 988,169 921,214 Commitments and contingencies (Note 12) Equity: Stockholders’ equity Common stock, $ 0.01 par value, 400,000,000 shares authorized; 83,465,051 and 81,602,232 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 835 816 Additional paid-in capital 1,538,592 1,507,995 Distributions in excess of retained earnings ( 217,589 ) ( 188,046 ) Accumulated other comprehensive (loss) income ( 5,222 ) 10,206 Total stockholders’ equity 1,316,616 1,330,971 Noncontrolling interests 6,929 7,161 Total equity 1,323,545 1,338,132 Total liabilities and equity $ 2,311,714 $ 2,259,346 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of Contents NETSTREIT CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (In thousands, except share and per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues Rental revenue (including reimbursable) $ 45,158 $ 36,864 $ 87,748 $ 72,053 Interest income on loans receivable 3,128 2,703 6,203 5,187 Other revenue — — 245 — Total revenues 48,286 39,567 94,196 77,240 Operating expenses Property 4,484 3,982 9,287 8,084 General and administrative 5,475 5,268 10,644 10,978 Depreciation and amortization 21,506 18,544 42,429 36,084 Provisions for impairment 4,422 3,836 8,038 7,498 Transaction costs 73 47 120 175 Total operating expenses 35,960 31,677 70,518 62,819 Other (expense) income Interest expense, net ( 12,638 ) ( 7,604 ) ( 24,098 ) ( 13,784 ) Gain on sales of real estate, net 3,533 8 5,608 1,006 Loss on debt extinguishment — — ( 46 ) — Other income (expense), net 81 ( 2,588 ) ( 124 ) ( 2,868 ) Total other expense, net ( 9,024 ) ( 10,184 ) ( 18,660 ) ( 15,646 ) Net income (loss) before income taxes 3,302 ( 2,294 ) 5,018 ( 1,225 ) Income tax expense ( 13 ) ( 12 ) ( 29 ) ( 29 ) Net income (loss) 3,289 ( 2,306 ) 4,989 ( 1,254 ) Net income (loss) attributable to noncontrolling interests 17 ( 15 ) 26 ( 8 ) Net income (loss) income attributable to common stockholders $ 3,272 $ ( 2,291 ) $ 4,963 $ ( 1,246 ) Amounts available to common stockholders per common share: Basic $ 0.04 $ ( 0.03 ) $ 0.06 $ ( 0.02 ) Diluted $ 0.04 $ ( 0.03 ) $ 0.06 $ ( 0.02 ) Weighted average common shares: Basic 81,895,840 73,588,605 81,770,860 73,419,198 Diluted 82,494,129 73,588,605 82,314,021 73,419,198 Other comprehensive (loss) income: Net income (loss) $ 3,289 $ ( 2,306 ) $ 4,989 $ ( 1,254 ) Change in value of derivatives, net ( 5,644 ) ( 420 ) ( 15,508 ) 8,708 Total comprehensive (loss) income $ ( 2,355 ) $ ( 2,726 ) $ ( 10,519 ) $ 7,454 Comprehensive (loss) income attributable to noncontrolling interests ( 12 ) ( 15 ) ( 54 ) 43 Comprehensive (loss) income attributable to common stockholders $ ( 2,343 ) $ ( 2,711 ) $ ( 10,465 ) $ 7,411 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents NETSTREIT CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In thousands, except share data) (Unaudited) Common stock Shares Par Value Additional Paid-in Capital Distributions in Excess of Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Stockholders’ Equity Noncontrolling Interests Total Equity Balance at December 31, 2024 81,602,232 $ 816 $ 1,507,995 $ ( 188,046 ) $ 10,206 $ 1,330,971 $ 7,161 $ 1,338,132 Dividends and distributions declared on common stock and OP Units — — — ( 17,157 ) — ( 17,157 ) ( 89 ) ( 17,246 ) Dividends declared on restricted stock, net — — — ( 181 ) — ( 181 ) — ( 181 ) Vesting of restricted stock units 136,338 1 ( 1 ) — — — — — Repurchase of common stock for tax withholding obligations ( 39,661 ) — ( 573 ) — — ( 573 ) — ( 573 ) Stock-based compensation, net — — 1,388 169 — 1,557 — 1,557 Other comprehensive loss — — — — ( 9,813 ) ( 9,813 ) ( 51 ) ( 9,864 ) Net income — — — 1,691 — 1,691 9 1,700 Balance at March 31, 2025 81,698,909 $ 817 $ 1,508,809 $ ( 203,524 ) $ 393 $ 1,306,495 $ 7,030 $ 1,313,525 Issuance of common stock in public offerings, net of issuance costs 1,757,815 18 28,334 — — 28,352 — 28,352 Dividends and distributions declared on common stock and OP Units — — — ( 17,159 ) — ( 17,159 ) ( 89 ) ( 17,248 ) Dividends declared on restricted stock, net — — — ( 178 ) — ( 178 ) — ( 178 ) Vesting of restricted stock units 13,096 — — — — — — — Repurchase of common stock for tax withholding obligations ( 4,769 ) — ( 72 ) — — ( 72 ) — ( 72 ) Stock-based compensation, net — — 1,521 — — 1,521 — 1,521 Other comprehensive loss — — — — ( 5,615 ) ( 5,615 ) ( 29 ) ( 5,644 ) Net income — — — 3,272 — 3,272 17 3,289 Balance at June 30, 2025 83,465,051 $ 835 $ 1,538,592 $ ( 217,589 ) $ ( 5,222 ) $ 1,316,616 $ 6,929 $ 1,323,545 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of Contents NETSTREIT CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In thousands, except share data) (Unaudited) Common stock Shares Par Value Additional Paid-in Capital Distributions in Excess of Retained Earnings Accumulated Other Comprehensive Income Total Stockholders’ Equity Noncontrolling Interests Total Equity Balance at December 31, 2023 73,207,080 $ 732 $ 1,367,505 $ ( 112,276 ) $ 8,943 $ 1,264,904 $ 8,528 $ 1,273,432 OP Units converted to common stock 7,119 — 126 — — 126 ( 126 ) — Dividends and distributions declared on common stock and OP Units — — — ( 15,031 ) — ( 15,031 ) ( 98 ) ( 15,129 ) Dividends declared on restricted stock, net — — — ( 143 ) — ( 143 ) — ( 143 ) Vesting of restricted stock units 176,197 2 ( 2 ) — — — — — Repurchase of common stock for tax withholding obligations ( 61,985 ) ( 1 ) ( 1,068 ) — — ( 1,069 ) — ( 1,069 ) Stock-based compensation, net — — 1,751 135 — 1,886 — 1,886 Other comprehensive income — — — — 9,077 9,077 51 9,128 Net income — — — 1,045 — 1,045 7 1,052 Balance at March 31, 2024 73,328,411 $ 733 $ 1,368,312 $ ( 126,270 ) $ 18,020 $ 1,260,795 $ 8,362 $ 1,269,157 Issuance of common stock in public offerings, net of issuance costs 4,000,000 40 65,284 — — 65,324 — 65,324 OP Units converted to common stock 35,121 — 611 — — 611 ( 611 ) — Dividends and distributions declared on common stock and OP Units — — — ( 15,042 ) — ( 15,042 ) ( 90 ) ( 15,132 ) Dividends declared on restricted stock, net — — — ( 139 ) — ( 139 ) — ( 139 ) Vesting of restricted stock units 23,510 — — — — — — — Repurchase of common stock for tax withholding obligations ( 9,363 ) — ( 160 ) — — ( 160 ) — ( 160 ) Stock-based compensation, net — — 1,530 8 — 1,538 — 1,538 Other comprehensive loss — — — — ( 420 ) ( 420 ) — ( 420 ) Net loss — — — ( 2,291 ) — ( 2,291 ) ( 15 ) ( 2,306 ) Balance at June 30, 2024 77,377,679 $ 773 $ 1,435,577 $ ( 143,734 ) $ 17,600 $ 1,310,216 $ 7,646 $ 1,317,862 The accompanying notes are an integral part of these condensed consolidated financial statements. 6 Table of Contents NETSTREIT CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Six Months Ended June 30, 2025 2024 Cash flows from operating activities Net income (loss) $ 4,989 $ ( 1,254 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 42,429 36,084 Amortization of deferred financing costs 1,408 1,115 Amortization of above/below-market assumed debt 57 57 Noncash revenue adjustments ( 2,093 ) ( 1,227 ) Amortization of deferred losses (gains) on interest rate swaps 1,418 ( 1,958 ) Stock-based compensation expense 2,909 3,281 Gain on sales of real estate, net ( 5,608 ) ( 1,006 ) Provisions for impairment 8,038 7,498 Loss on debt extinguishment 46 — Loss on involuntary conversion of building and improvements — 905 Changes in assets and liabilities, net of assets acquired and liabilities assumed: Other assets, net ( 222 ) ( 4,285 ) Accounts payable, accrued expenses, and other liabilities ( 445 ) ( 2,192 ) Lease incentive payments ( 199 ) — Net cash provided by operating activities 52,727 37,018 Cash flows from investing activities Acquisitions of real estate ( 173,996 ) ( 190,764 ) Real estate development and improvements ( 3,481 ) ( 29,996 ) Investment in mortgage loans receivable ( 17,108 ) ( 18,021 ) Principal collections on mortgage loans receivable 12,112 2,338 Earnest money deposits 67 ( 14 ) Purchase of computer equipment and other corporate assets ( 25 ) ( 8 ) Proceeds from sale of real estate 85,726 32,542 Net cash used in investing activities ( 96,705 ) ( 203,923 ) Cash flows from financing activities Issuance of common stock in public offerings, net 28,352 65,324 Payment of common stock dividends ( 34,316 ) ( 30,073 ) Payment of OP unit distributions ( 178 ) ( 188 ) Payment of restricted stock dividends ( 222 ) ( 441 ) Principal payments on mortgages payable ( 81 ) ( 77 ) Proceeds under revolving credit facilities 143,000 190,000 Repayments under revolving credit facilities ( 255,000 ) ( 172,000 ) Proceeds from term loans 218,675 100,000 Principal payments on term loans ( 43,675 ) — Repurchase of common stock for tax withholding obligations ( 645 ) ( 1,229 ) Payment of deferred offering costs ( 233 ) ( 614 ) Payment of deferred financing costs ( 6,279 ) — Net cash provided by financing activities 49,398 150,702 Net change in cash, cash equivalents, and restricted cash 5,420 ( 16,203 ) Cash, cash equivalents, and restricted cash at beginning of the period 14,320 29,929 Cash, cash equivalents, and restricted cash at end of the period $ 19,740 $ 13,726 Supplemental disclosures of cash flow information: Cash paid for interest, net of amounts capitalized $ 20,812 $ 13,437 Cash received for income taxes, net $ ( 3 ) $ ( 8 ) Supplemental disclosures of non-cash investing and financing activities: Dividends declared and unpaid on restricted stock $ 190 $ 139 Deferred offering costs included in accounts payable, accrued expenses, and other liabilities $ 73 $ 22 Accrued loan origination fees on mortgage loans receivable $ — $ 200 Cash flow hedge change in fair value $ ( 16,925 ) $ 10,666 Increase in mortgage loan receivable in exchange for disposition of real estate $ 8,450 $ — Accrued capital expenditures and real estate development and improvement costs $ 1,950 $ 2,657 The accompanying notes are an integral part of these condensed consolidated financial statements. 7 Table of Contents NETSTREIT CORP. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 – Organization and Description of Business NETSTREIT Corp. (the “Company”) was incorporated on October 11, 2019 as a Maryland corporation and commenced operations on December 23, 2019. The Company conducts its operations through NETSTREIT, L.P., a Delaware limited partnership (the “Operating Partnership”). NETSTREIT GP, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company, is the sole general partner of the Operating Partnership. The Company elected to be treated as and to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes beginning with its short taxable year ended December 31, 2019. Additionally, the Operating Partnership formed NETSTREIT Management TRS, LLC (“NETSTREIT TRS”), which together with the Company jointly elected to be treated as a taxable REIT subsidiary under Section 856(a) of the Internal Revenue Code of 1986, as amended, (the “Code”) for U.S. federal income tax purposes. The Company is structured as an umbrella partnership real estate investment trust (commonly referred to as an “UPREIT”) and is an internally managed real estate company that acquires, owns, and manages a diversified portfolio of single-tenant commercial retail properties, subject to long-term net leases with high-credit-quality tenants across the United States. The Company also invests in property developments and mortgage loans secured by real estate. As of June 30, 2025, the Company owned or had investments in 707 properties located in 45 states. Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The accompanying condensed consolidated financial statements include the accounts of the Company and subsidiaries in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation and the Company’s net income (loss) is reduced by the portion of net income (loss) attributable to noncontrolling interests. Interim Unaudited Financial Information The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. These unaudited interim condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements, and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto on the Annual Report on Form 10-K as of and for the year ended December 31, 2024, which provide a more complete understanding of the Company’s accounting policies, financial position, operating results, business properties, and other matters. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation have been included. The results of operations for the three and six months ended June 30, 2025 and 2024 are not necessarily indicative of the results for the full year. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s most significant assumptions and estimates relate to the useful lives of real estate assets, lease accounting, real estate impairment assessments, and allocation of fair value of purchase consideration. These estimates are based on historical experience and other assumptions which management believes are reasonable under the circumstances. The Company evaluates its estimates on an ongoing basis and makes revisions to these estimates and related disclosures as experience develops or new information becomes known. Actual results could differ from those estimates. 8 Table of Contents Impairment of Long-Lived Assets Fair value measurement of an asset group occurs when events or changes in circumstances related to an asset indicate that the carrying amount of the asset is no longer recoverable. An example of an event or changed circumstance is a reduction in the expected holding period of a property. If indicators are present, the Company will prepare a projection of the undiscounted future cash flows of the property, excluding interest charges, and determine if the carrying amount of the asset group is recoverable. When a carrying amount is not recoverable, an impairment loss is recognized to the extent that the carrying amount of the asset group exceeds its fair market value. The Company estimates fair value using data such as operating income, estimated capitalization rates or multiples, leasing prospects, local market information, and discount rates, and with regard to assets held for sale, based on the estimated or negotiated selling price, less estimated costs of disposal. Based on these unobservable inputs, the Company determined that its valuations of impaired real estate and intangible assets fall within Level 2 and Level 3 of the fair value hierarchy under ASC Topic 820. The following table summarizes the provision for impairment during the periods indicated below (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Total provision for impairment $ 4,422 $ 3,836 $ 8,038 $ 7,498 Number of properties: (1) Classified as held for sale 7 9 11 10 Disposed within the period 2 1 9 7 Classified as held for investment — 2 1 6 (1) Includes the number of properties that were either (i) impaired during the respective period and remained as held for sale as of period-end, (ii) impaired and disposed of during the respective period, or (iii) impaired during the respective period and remained as held for investment at period-end. Cash, Cash Equivalents, and Restricted Cash The Company considers all cash balances, money market accounts, and highly liquid investments with original maturities of three months or less to be cash and cash equivalents. Restricted cash includes cash restricted for property tenant improvements and cash proceeds from the sale of assets held by qualified intermediaries in anticipation of the acquisition of replacement properties in tax-free exchanges under Section 1031 of the Code. Restricted cash is included in cash, cash equivalents, and restricted cash in the condensed consolidated balance sheets. The Company had $ 16.7 million of restricted cash as of June 30, 2025, and $ 7.9 million of restricted cash as of December 31, 2024. The Company’s bank balances as of June 30, 2025 and December 31, 2024 included certain amounts over the Federal Deposit Insurance Corporation limits. Fair Value Measurement Fair value measurements are utilized in the accounting of the Company’s assets acquired and liabilities assumed in an asset acquisition and also affect the Company’s accounting for certain of its financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The hierarchy described below prioritizes inputs to the valuation techniques used in measuring the fair value of assets and liabilities. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs to be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1 inputs, such as quoted prices in an active market; Level 2 inputs, which are observable inputs for similar assets; or Level 3 inputs, which are unobservable inputs. The Company uses the following inputs in its fair value measurements: – Level 2 and Level 3 inputs for its debt and derivative financial instrument fair value disclosures. See “Note 6 – Debt” and “Note 7 – Derivative Financial Instruments,” respectively; and – Level 2 and Level 3 inputs when assessing the fair value of assets and liabilities in connection with real estate acquisitions and impairment. See “Note 4 – Real Estate Investments.” 9 Table of Contents Additionally, companies are required to disclose the estimated fair values of all financial instruments, even if they are not carried at their fair value. The fair values of financial instruments are estimates based on market conditions and perceived risks as of June 30, 2025 and December 31, 2024. These estimates require management’s judgment and may not be indicative of the future fair values of the assets and liabilities. The fair value of the Company’s cash, cash equivalents, and restricted cash (including money market accounts), other assets, and accounts payable, accrued expenses, and other liabilities approximate their carrying value because of the short-term nature of these instruments. Additionally, the Company believes the following financial instruments have carrying values that approximate their fair values as of June 30, 2025: • Borrowings under the Company’s Revolver (as defined in “Note 6 – Debt”) approximate fair value based on their nature, terms, and variable interest rates. • Carrying values of the Company’s mortgage loans receivable approximate fair values based on a number of factors, including either their short-term nature, the availability of market quotes for comparable instruments, and a discounted cash flow analysis using estimates of the amount and timing of future cash flows, market rates, and credit spreads. • Carrying value of the Company’s mortgage note payable approximates fair value based on a discounted cash flow analysis using estimates of the amount and timing of future cash flows, market rates, and credit spreads. Provisions for impairment recognized during the three and six months ended June 30, 2025 primarily related to assets held for sale where impairment was determined based on the estimated or negotiated selling price, less costs of disposal, compared to the carrying value of the property. As of June 30, 2025, there were eight properties held for investment accounted for at fair value. These eight properties were accounted for at fair value on a nonrecurring basis using a cash flow model (Level 3 inputs) with a total adjusted carrying value of $ 16.8 million. As of December 31, 2024, there were 11 properties held for investment accounted for at fair value. These 11 properties were accounted for at fair value on a nonrecurring basis using a cash flow model (Level 3 inputs) with a total adjusted carrying value of $ 27.1 million. The Company estimated the fair values as of June 30, 2025 using capitalization rates ranging from 7.4 % to 12.1 %, which it believes is reasonable based on current market rates. The following table discloses estimated fair value information for the Company’s 2028 Term Loan, 2029 Term Loan, 2030 Term Loan A, and 2030 Term Loan B (each as defined in “Note 6 – Debt”) which is derived based primarily on unobservable market inputs such as interest rates and discounted cash flow analysis using estimates of the amount and timing of future cash flows, market rates, and credit spreads (in thousands): June 30, 2025 December 31, 2024 Carrying Value (1) Estimated Fair Value Carrying Value (1) Estimated Fair Value 2028 Term Loan $ 199,367 $ 200,678 $ 199,246 $ 200,858 2029 Term Loan $ 249,212 $ 250,350 $ 248,853 $ 250,526 2030 Term Loan A $ 173,617 $ 175,775 $ 174,509 $ 175,245 2030 Term Loan B $ 173,780 $ 175,793 $ — $ — (1) The carrying value of the debt instruments are net of unamortized debt issuance and discount costs. Concentrations of Credit Risk During the three and six months ended June 30, 2025, there were no tenants or borrowers with rental revenue or interest income on loans receivable that exceeded 10% of total revenues. During the three and six months ended June, 30, 2024, one tenant, Dollar General, accounted for 11.3 % and 11.5 % of total revenues, respectively. Other financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash held at various financial institutions, access to the Company’s credit facilities, and amounts due or payable under derivative contracts. These credit risk exposures are spread among a diversified group of investment grade financial institutions. 10 Table of Contents Segment Reporting ASC Topic 280, Segment Reporting, establishes standards for the manner in which companies report information about operating segments. The Company is an internally managed real estate company that acquires, owns, invests in, and manages a diversified portfolio of single-tenant commercial retail properties, subject to long-term net leases with high-credit-quality tenants across the United States. The Company primarily engages in leasing activities that generate revenues and incur operating expenses in addition to investing in property developments and mortgage loans secured by real estate. The Company aggregates these investments for reporting purposes and operates in one reportable segment. The Company’s chief operating decision maker (“CODM”) is the Company’s senior executive investment committee that includes the chief executive officer and chief financial officer. The CODM uses net income (loss), as reported on the condensed consolidated statements of operations and comprehensive (loss) income to measure segment operating performance and allocate resources. All of the Company’s expenses are included in segment operating performance and are reviewed regularly. Significant segment expenses include property, general and administrative, depreciation and amortization, provisions for impairment, and interest expense. The measure of segment assets is reported on the Company’s condensed consolidated balance sheets as total assets. The CODM also reviews characteristics of potential future investments such as weighted average remaining lease term (“WALT”), capitalization rate, tenant credit quality, industry type, and geographic location. Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires annual disclosure of specific categories in the rate reconciliation and provides additional information for reconciling items that meet a quantitative threshold within the rate reconciliation. In addition, the amendments require annual disclosure of income taxes paid disaggregated by federal, state, and foreign jurisdictions as well as individual jurisdictions in which income taxes paid is equal to or greater than five percent of total income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis, however early adoption and retrospective application is permitted. The Company continues to evaluate the potential impact of the guidance and potential additional disclosures required. In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). ASU 2024-03 requires disclosure, in the notes to the financial statements, of specified information about certain costs and expenses and a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the potential impact of the guidance and potential additional disclosures required. Note 3 – Leases Tenant Leases The Company acquires, owns, and manages single-tenant commercial retail net lease properties, the majority of which have long-term triple-net leases where the tenant is generally responsible for all improvements and contractually obligated to pay all operating costs (such as real estate taxes, utilities, and repairs and maintenance costs). As of June 30, 2025, exclusive of mortgage loans receivable, the Company’s weighted average remaining lease term was 9.8 years. The Company’s property leases have been classified as operating leases, most of which have scheduled rent increases throughout the lease term. The Company’s leases typically provide the tenant one or more multi-year renewal options to extend their leases, subject to generally the same terms and conditions, including rent increases, consistent with the initial lease term. All lease-related income is reported as a single line item, rental revenue (including reimbursable), in the condensed consolidated statements of operations and comprehensive (loss) income and is presented net of any reserves, write-offs, or recoveries for uncollectible amounts. Fixed lease income includes stated amounts per the lease contract, which include base rent, fixed common area maintenance charges, and straight-line lease adjustments. 11 Table of Contents Variable lease income primarily includes recoveries from tenants, which represent amounts that tenants are contractually obligated to reimburse the Company for, specific to their portion of actual recoverable costs incurred. Variable lease income also includes percentage rent, which represents amounts billable to tenants based on their actual sales volume in excess of levels specified in the lease contract. The following table provides a disaggregation of lease income recognized under ASC 842 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Rental revenue Fixed lease income (1) $ 41,175 $ 33,788 $ 80,267 $ 65,653 Variable lease income (2) 3,977 2,978 7,405 6,207 Other rental revenue: Above/below market lease amortization, net 257 287 519 573 Lease incentives ( 251 ) ( 189 ) ( 443 ) ( 380 ) Rental revenue (including reimbursable) $ 45,158 $ 36,864 $ 87,748 $ 72,053 (1) Fixed lease income includes contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term. (2) Variable lease income primarily includes tenant reimbursements for real estate taxes, insurance, common area maintenance, and reserves for uncollectible amounts. There were no material reserves, write-offs, or recoveries of uncollectible amounts during the three and six months ended June 30, 2025 and 2024. Scheduled future minimum base rental payments (excluding base rental payments from properties classified as held for sale and straight-line rent adjustments for all properties) due to be received under the remaining noncancellable term of the operating leases in place as of June 30, 2025 are as follows (in thousands): Future Minimum Base Rental Receipts Remainder of 2025 $ 77,794 2026 155,486 2027 153,246 2028 148,106 2029 139,114 Thereafter 948,131 Total $ 1,621,877 Future minimum rentals exclude amounts that may be received from tenants for reimbursements of operating costs and property taxes. In addition, the future minimum rents do not include any contingent rents based on a percentage of the lessees’ gross sales or lease escalations based on future changes in the Consumer Price Index or other stipulated reference rate. Note 4 – Real Estate Investments As of June 30, 2025, the Company had investments in 707 properties. The gross real estate investment portfolio, including properties under development and mortgage loans receivable, totaled approximately $ 2.4 billion and consisted of the gross acquisition cost of land, buildings, improvements, lease intangible assets and liabilities, mortgage loans receivable, and property development costs. The investment portfolio is geographically dispersed throughout 45 states with gross real estate investments in Texas and Illinois representing 13.1 % and 9.1 %, respectively, of the total gross real estate investment of the Company’s investment portfolio. 12 Table of Contents The Company’s gross investment portfolio as of June 30, 2025 and December 31, 2024 is summarized below (dollars in thousands): Number of Properties Amount of Investment June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 Properties held for investment (1) 589 589 $ 2,229,339 $ 2,164,566 Properties held for sale 30 23 55,979 46,725 Mortgage loans receivable 86 76 152,977 139,483 Properties under development (2) 2 4 1,782 6,118 Total gross investment 707 692 $ 2,440,077 $ 2,356,892 (1) Includes one vacant property for the periods ended June 30, 2025 and December 31, 2024, and one completed development where rent had not commenced as of December 31, 2024. (2) Rent has not commenced for properties under development. Acquisitions The Company’s acquisitions during the three and six months ended June 30, 2025 and 2024 were all accounted for as asset acquisitions. An allocation of the purchase price and acquisition costs paid for the completed acquisitions during the period is as follows (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Number of properties acquired 23 18 41 46 Assets acquired Land $ 53,809 $ 28,264 $ 75,083 $ 44,872 Buildings 33,744 55,508 79,320 114,887 Site improvements 3,246 7,001 7,081 13,429 Tenant improvements 324 359 849 1,804 In-place lease intangible assets 5,405 4,479 11,669 15,772 96,528 95,611 174,002 190,764 Liabilities assumed Accounts payable, accrued expenses, and other liabilities — — ( 6 ) — Purchase price (1) $ 96,528 $ 95,611 $ 173,996 $ 190,764 (1) During the three months ended June 30, 2025 and 2024, the Company capitalized $ 1.0 million and $ 0.6 million of acquisition costs, respectively. During the six months ended June 30, 2025 and 2024, the Company capitalized $ 1.9 million and $ 1.8 million of acquisition costs, respectively. Dispositions The Company’s dispositions during the three and six months ended June 30, 2025 and 2024 are summarized below (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Number of properties sold 20 6 36 18 Sales price, net of disposal costs $ 55,613 $ 12,064 $ 94,176 $ 32,542 Gain on sales of real estate, net $ 3,533 $ 8 $ 5,608 $ 1,006 13 Table of Contents Development The Company’s investment in property developments during the three and six months ended June 30, 2025 and 2024 are summarized below (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Number of developments acquired — 2 — 4 Purchase price of acquired developments $ — $ 1,221 $ — $ 2,010 Total investment in properties under development (1) $ 1,412 $ 11,993 $ 2,200 $ 22,961 Number of developments completed (2) 1 7 2 14 Amounts placed into service (3) $ 2,740 $ 16,906 $ 6,545 $ 35,243 (1) During the three months ended June 30, 2025 and 2024, the Company capitalized approximately $0.1 million and $ 0.2 million, respectively, of interest expense associated with properties under development. During the six months ended June 30, 2025 and 2024, the Company capitalized approximately $ 0.1 million and $ 0.6 million, respectively, of interest expense associated with properties under development. (2) For the two developments completed during the six months ended June 30, 2025, rent commenced in the second quarter of 2025. For the 14 developments completed during the six months ended June 30, 2024, rent commenced at various points throughout 2024. (3) Amounts reclassified from property under development to land, buildings and improvements, and other assets (leasing commissions) in the accompanying condensed consolidated balance sheets. As of June 30, 2025, the Company had two property developments under construction, which are expected to be substantially completed with rent commencing at various points throughout 2025. The purchase price, including acquisition costs, and subsequent development are included in property under development in the accompanying condensed consolidated balance sheets as of June 30, 2025. 14 Table of Contents Investment in Mortgage Loans Receivable The Company’s mortgage loans receivable portfolio as of June 30, 2025 and December 31, 2024 is summarized below (dollars in thousands): Loan Type Monthly Payment (1) Number of Secured Properties Effective Interest Rate (2) Stated Interest Rate Maturity Date June 30, 2025 December 31, 2024 Mortgage (3) (4) I/O 1 7.03 % 7.00 % 8/31/2025 $ 38,162 $ 43,612 Mortgage (4) I/O 46 9.55 % 9.55 % 3/10/2026 41,940 41,940 Mortgage (4) (5) I/O 3 8.10 % 6.89 % 4/10/2026 4,132 4,132 Mortgage (3) (4) (5) I/O 6 8.16 % 7.98 % 6/10/2026 8,408 8,408 Mortgage None (6) 1 7.00 % 7.00 % 1/31/2026 825 825 Mortgage (3) (4) (7) I/O 6 10.26 % 10.25 % 12/18/2025 11,059 11,658 Mortgage (3) (4) (8) I/O 7 10.25 % 10.25 % 2/7/2026 13,086 8,853 Mortgage P+I 1 7.25 % 7.25 % 7/17/2027 4,040 4,076 Mortgage P+I 1 7.25 % 7.25 % 7/17/2027 5,174 5,221 Mortgage I/O 1 14.68 % 13.09 % 1/17/2025 — 1,299 Mortgage P+I 1 7.25 % 7.25 % 9/19/2027 1,421 1,434 Mortgage I/O 1 7.00 % 7.00 % 9/30/2029 636 636 Mortgage I/O 1 6.50 % 6.50 % 12/23/2029 3,284 3,284 Mortgage I/O 1 6.50 % 6.50 % 12/23/2029 4,105 4,105 Mortgage (3) (4) I/O 1 9.75 % 9.75 % 2/25/2026 1,010 — Mortgage (3) (4) I/O 1 9.75 % 9.75 % 3/12/2026 1,154 — Mortgage (3) (4) (9) None (6) 6 9.75 % 9.75 % 9/9/2026 6,091 — Mortgage I/O 1 7.00 % 7.00 % 5/27/2027 2,400 — Mortgage I/O 1 7.25 % 7.25 % 5/18/2027 6,050 — Total $ 152,977 $ 139,483 Unamortized loan origination costs and fees, net 4 74 Unamortized discount ( 202 ) ( 148 ) Total mortgage loans receivable, net $ 152,779 $ 139,409 (1) I/O: Interest Only; P+I: Principal and Interest. (2) Includes amortization of discount, loan origination costs and fees, as applicable. (3) The Company has the right, subject to certain terms and conditions, to acquire all or a portion of the underlying collateralized properties. (4) Loans require monthly payments of interest only with principal payments occurring as borrower disposes of underlying properties, limited to the Company’s allocated investment by property. Any remaining principal balance will be repaid at or before the maturity date. (5) The stated interest rate is variable up to 15.0 % and is calculated based on contractual rent for existing collateralized properties subject to the loan agreement. (6) Payments of both interest and principal are due at maturity. (7) The collateralized properties are in process developments with varying maturity dates dependent upon initial funding. Maturity dates range from July 30, 2025 to December 18, 2025. (8) The collateralized properties are in process developments with varying maturity dates dependent upon initial funding. Maturity dates range from July 14, 2025 to February 7, 2026. (9) The collateralized properties are in process developments with varying maturity dates dependent upon initial funding. Maturity dates range from March 28, 2026 to September 9, 2026. 15 Table of Contents Note 5 – Intangible Assets and Liabilities Intangible assets and liabilities consisted of the following (in thousands): June 30, 2025 December 31, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Assets: In-place leases $ 203,711 $ ( 68,807 ) $ 134,904 $ 203,104 $ ( 60,729 ) $ 142,375 Above-market leases 19,116 ( 6,019 ) 13,097 19,644 ( 5,500 ) 14,144 Lease incentives 8,744 ( 2,044 ) 6,700 9,529 ( 1,656 ) 7,873 Total intangible assets $ 231,571 $ ( 76,870 ) $ 154,701 $ 232,277 $ ( 67,885 ) $ 164,392 Liabilities: Below-market leases $ 28,996 $ ( 10,702 ) $ 18,294 $ 29,847 $ ( 9,670 ) $ 20,177 The remaining weighted average amortization period for the Company’s intangible assets and liabilities as of June 30, 2025 and as of December 31, 2024 by category were as follows: Years Remaining June 30, 2025 December 31, 2024 In-place leases 8.5 8.6 Above-market leases 11.0 11.4 Below-market leases 9.7 10.1 Lease incentives 9.4 10.1 The Company records amortization of in-place lease assets to amortization expense, and records net amortization of above-market and below-market lease intangibles as well as amortization of lease incentives to rental revenue. The following amounts in the accompanying condensed consolidated statements of operations and comprehensive (loss) income related to the amortization of intangible assets and liabilities for all property and ground leases (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Amortization: Amortization of in-place leases $ 5,661 $ 5,196 $ 11,217 $ 10,071 Net adjustment to rental revenue: Above-market lease assets ( 372 ) ( 93 ) ( 750 ) ( 188 ) Below-market lease liabilities 629 380 1,269 761 Lease incentives ( 251 ) ( 189 ) ( 443 ) ( 380 ) $ 6 $ 98 $ 76 $ 193 The following table provides the projected amortization of in-place lease assets to amortization expense and the net amortization of above-market, below-market, and lease incentive lease intangible assets and liabilities to rental revenue as of June 30, 2025, for the next five years and thereafter (in thousands): Remainder of 2025 2026 2027 2028 2029 Thereafter Total In-place leases $ 11,179 $ 21,316 $ 19,577 $ 16,862 $ 14,406 $ 51,564 $ 134,904 Above-market lease assets $ ( 738 ) $ ( 1,453 ) $ ( 1,401 ) $ ( 1,356 ) $ ( 1,184 ) $ ( 6,965 ) $ ( 13,097 ) Below-market lease liabilities 1,242 2,402 2,333 2,201 2,008 8,108 18,294 Lease incentives ( 420 ) ( 840 ) ( 785 ) ( 755 ) ( 716 ) ( 3,184 ) ( 6,700 ) Net adjustment to rental revenue $ 84 $ 109 $ 147 $ 90 $ 108 $ ( 2,041 ) $ ( 1,503 ) 16 Table of Contents Note 6 – Debt Debt consists of the following (in thousands): Amounts Outstanding as of Contractual Maturity Date Fully Extended Maturity Date (1) Interest Rate (2) June 30, 2025 December 31, 2024 Debt: 2028 Term Loan (3) February 11, 2028 — 3.88 % $ 200,000 $ 200,000 2029 Term Loan (4) July 3, 2026 January 3, 2029 4.99 % 250,000 250,000 2030 Term Loan A (5) January 15, 2029 January 15, 2030 3.65 % 175,000 175,000 2030 Term Loan B (6) January 15, 2029 January 15, 2030 5.12 % 175,000 — Revolver (7) January 15, 2029 January 15, 2030 5.46 % 127,000 239,000 Mortgage Note November 1, 2027 — 4.53 % 8,124 8,205 Total debt 935,124 872,205 Unamortized discount and debt issuance costs ( 4,314 ) ( 2,744 ) Unamortized deferred financing costs, net (8) ( 4,259 ) ( 1,200 ) Total debt, net $ 926,551 $ 868,261 (1) Date represents the fully extended maturity date available to the Company, subject to certain conditions, under each related debt instrument. (2) Rate represents the effective interest rate as of June 30, 2025 and includes the effect of interest rate swap agreements, as described further in “Note 6 – Debt” and “Note 7 – Derivative Financial Instruments.” (3) Loan is a floating-rate loan which resets daily at daily simple SOFR plus a SOFR adjustment of 0.10 % plus the applicable margin, which was 1.15 % as of June 30, 2025. The Company has entered into three interest rate swap agreements that effectively convert the floating rate to a fixed rate. (4) Loan is a floating-rate loan which resets daily at daily simple SOFR plus a SOFR adjustment of 0.10 % plus the applicable margin, which was 1.15 % as of June 30, 2025. The Company has entered into four interest rate swap agreements that effectively convert the floating rate to a fixed rate. (5) On January 15, 2025, the Company amended the 2027 Term Loan, providing for the 2030 Term Loan A (as described below). Loan is a floating-rate loan which resets daily at daily simple SOFR plus a SOFR adjustment of 0.10 % plus the applicable margin, which was 1.15 % as of June 30, 2025. The Company has entered into four interest rate swap agreements that effectively convert the floating rate to a fixed rate. (6) Loan is a floating-rate loan which resets daily at daily simple SOFR plus a SOFR adjustment of 0.10 % plus the applicable margin, which was 1.15 % as of June 30, 2025. The Company has entered into seven interest rate swap agreements that effectively convert the floating rate to a fixed rate. (7) The annual interest rate of the Revolver assumes daily simple SOFR as of June 30, 2025 of 4.36 % plus a SOFR adjustment of 0.10 % plus the applicable margin, which was 1.00 % as of June 30, 2025. (8) The Company records deferred financing costs associated with the Revolver in other assets, net on its condensed consolidated balance sheets. The Company reclassified the net amount of loan commitment fees associated with the 2029 Term Loan from other assets, net to debt issuance costs upon the $ 100.0 million draw under the 2029 Term Loan. Truist Credit Agreement On July 3, 2023, the Company entered into a Credit Agreement, by and among the Operating Partnership, the Company, the financial institutions party thereto, as lenders, and Truist Bank, as Administrative Agent (the “Truist Credit Agreement”), related to a $ 250.0 million sustainability-linked senior unsecured term loan (the “2029 Term Loan”) which may, subject to the terms of the Truist Credit Agreement, be increased to an amount of up to $ 400.0 million at the Company’s request. On January 15, 2025, the Truist Credit Agreement was amended to remove certain financial covenants and provide for revised, improved pricing when the Company meets certain investment grade rating and leverage targets. The 2029 Term Loan contains a 12-month delayed draw feature and $ 150.0 million was drawn on July 3, 2023. Subject to the terms of the Truist Credit Agreement, the Company drew an additional $ 100.0 million under the 2029 Term Loan on March 1, 2024. The 2029 Term Loan is prepayable at the Company’s option in whole or in part without premium or penalty. The 2029 Term Loan matures on July 3, 2026, subject to two one-year extension options and one six-month extension option with a final, extended maturity date of January 3, 2029. The extension options are at the Company’s election and are subject to certain conditions. The interest rate applicable to the 2029 Term Loan is determined by the Company’s Investment Grade Rating (as defined in the Truist Credit Agreement). Prior to the date the Company obtains an Investment Grade Rating, interest shall accrue at either (i) SOFR, plus a SOFR adjustment of 0.10 %, plus a margin ranging from 1.15 % to 1.60 % or (ii) Base Rate (as defined in the Truist Credit Agreement), plus a margin ranging from 0.15 % to 0.60 %, in each case based on the Company’s consolidated total leverage ratio. After the date the Company obtains an Investment Grade Rating, interest shall accrue at either (i) SOFR, plus a SOFR adjustment of 0.10 %, plus a margin ranging from 0.80 % to 1.60 % or (ii) Base Rate, plus a margin ranging from 0.00 % to 0.60 %, in each case based on the Company’s Investment Grade Rating. 17 Table of Contents The 2029 Term Loan also contains sustainability-linked pricing component pursuant to which the Company will receive interest rate reductions up to 0.025 % based on its performance against a sustainability performance target focused on the portion of the Company’s annualized based rent attributable to tenants with commitments or quantifiable targets for reduced GHG emission in accordance with the standards of the Science Based Targets initiative (“SBTi”). The Company has hedged the entire $ 250.0 million of the 2029 Term Loan at an all-in fixed interest rate of 4.99 %, through January 2029. Interest is payable monthly or at the end of the applicable interest period in arrears on any outstanding borrowings. The interest rate hedges are further described in “Note 7 – Derivative Financial Instruments.” In connection with the 2029 Term Loan, the Company incurred $ 1.4 million of deferred financing costs. Additionally, the Company incurred $ 0.9 million of loan commitment fees associated with the 2029 Term Loan, which were capitalized to other assets, net in the condensed consolidated balance sheets and subsequently reclassified to debt issuance costs upon the $ 100.0 million draw under the 2029 Term Loan. Deferred financing costs are amortized over the term of the loan and are included in interest expense, net on the Company’s condensed consolidated statements of operations and comprehensive (loss) income. PNC Credit Agreement On August 11, 2022, the Company entered into a Credit Agreement, by and among the Operating Partnership, the Company, the several institutions party thereto, as lenders, and PNC Bank, National Association, as Administrative Agent (the “PNC Credit Agreement”), related to sustainability-linked senior unsecured credit facility consisting of (i) a $ 200.0 million senior unsecured term loan (the “2028 Term Loan”) and (ii) a $ 400.0 million senior unsecured revolving credit facility (the “Revolver”). On January 15, 2025, the Company amended and restated the existing PNC Credit Agreement to provide for: the existing $ 200.0 million 2028 Term Loan; an upsized $ 500.0 million Revolver (increased from $ 400.0 million under the existing PNC Credit Agreement); and a new $ 175.0 million senior unsecured term loan (the “2030 Term Loan B”, and together with the 2028 Term Loan and the Revolver, the “PNC Credit Facility”). The borrowing capacity under the PNC Credit Facility may be increased in an amount of up to $ 1.4 billion in the aggregate. The 2028 Term Loan matures on February 11, 2028. The 2030 Term Loan B and the upsized Revolver initially mature on January 15, 2029 and include, at the Company’s election, a one year option to extend the maturity to January 15, 2030. Borrowings under the PNC Credit Facility are repayable at the Company’s option in whole or in part without premium or penalty. Borrowings under the Revolver may be repaid and reborrowed from time to time prior to the maturity date. Prior to the date the Company obtains an Investment Grade Rating (as defined in the PNC Credit Agreement), interest rates are based on the Company’s consolidated total leverage ratio and are determined by (A) in the case of the 2028 Term Loan and the 2030 Term Loan B, either (i) SOFR, plus a SOFR adjustment of 0.10 %, plus a margin ranging from 1.15 % to 1.60 %, based on the Company’s consolidated total leverage ratio, or (ii) a Base Rate (as defined in the PNC Credit Agreement), plus a margin ranging from 0.15 % to 0.60 %, based on the Company’s consolidated total leverage ratio; and (B) in the case of the Revolver either (i) SOFR, plus a SOFR adjustment of 0.10 %, plus a margin ranging from 1.00 % to 1.45 %, based on the Company’s consolidated total leverage ratio, or (ii) a Base Rate, plus a margin ranging from 0.00 % to 0.45 %, based on the Company’s consolidated total leverage ratio. After the date the Company obtains an Investment Grade Rating, interest rates are based on the Company’s Investment Grade Rating, and are determined by (A) in the case of the 2028 Term Loan and the 2030 Term Loan B, either (i) SOFR, plus a SOFR adjustment of 0.10 %, plus a margin ranging from 0.80 % to 1.60 %, based on the Company’s Investment Grade Rating and consolidated total leverage ratio, or (ii) a Base Rate (as defined in the PNC Credit Agreement), plus a margin ranging from 0.00 % to 0.60 %, based on the Company’s Investment Grade Rating and consolidated total leverage ratio and (B) in the case of the Revolver either (i) SOFR, plus a SOFR adjustment of 0.10 %, plus a margin ranging from 0.725 % to 1.40 %, based on the Company’s Investment Grade Rating and consolidated total leverage ratio, or (ii) a Base Rate, plus a margin ranging from 0.00 % to 0.40 %, based on the Company’s Investment Grade Rating and consolidated total leverage ratio. Additionally, the Company will incur a facility fee based on the total commitment amount of $ 500.0 million under the Revolver. Prior to the date the Company obtains an Investment Grade Rating, the applicable facility fee will range from 0.15 % to 0.30 % based on the Company’s consolidated total leverage ratio. After the date the Company obtains an Investment Grade Rating, the applicable facility fee will range from 0.125 % to 0.30 % based on the Company’s Investment Grade Rating. 18 Table of Contents The PNC Credit Facility also contains a sustainability-linked pricing component pursuant to which the Company will receive interest rate reductions up to 0.025 % based on its performance against a sustainability performance target focused on the portion of the Company’s annualized base rent attributable to tenants with commitments or quantifiable targets for reduced greenhouse gas emission in accordance with the standards of the SBTi. The Company has fully hedged the 2028 Term Loan with an all-in interest rate of 3.88 %, and the 2030 Term Loan B with an all-in interest rate of 5.12 %. Interest is payable monthly or at the end of the applicable interest period in arrears on any outstanding borrowings. The interest rate hedges are further described in “Note 7 – Derivative Financial Instruments.” In connection with the entry into the original PNC Credit Agreement, the Company incurred approximately $ 3.8 million of deferred financing costs which were allocated between the Revolver and 2028 Term Loan in the amounts of $ 2.4 million and $ 1.3 million, respectively. In connection with the amendment to the PNC Credit Agreement, the Company incurred approximately $ 5.1 million of deferred financing costs which were allocated between the Revolver and 2030 Term Loan B in the amounts of $ 3.7 million and $ 1.4 million, respectively. Additionally, $ 0.5 million of unamortized deferred financing costs associated with the Company’s previous revolving credit facility were reclassified to the Revolver. Deferred financing costs are amortized over the remaining terms of each respective borrowing and are included in interest expense, net in the Company’s condensed consolidated statements of operations and comprehensive (loss) income. Wells Fargo Credit Agreement In December 2019, the Company entered into a Credit Agreement, by and among the Operating Partnership, the Company, the several institutions party thereto, as lenders, and Wells Fargo Bank, National Association, as Administrative Agent, which was subsequently amended and restated on June 15, 2023 (as amended, the “First Amended Wells Fargo Credit Agreement”), governing a $ 175.0 million senior unsecured term loan that was scheduled to mature on January 15, 2026, subject to a one year extension option at the Company’s election (subject to certain conditions) (the “2027 Term Loan”). On January 15, 2025, the Company amended and restated the First Amended Wells Fargo Credit Agreement (as amended, the “Wells Fargo Credit Agreement”) to extend the maturity date of the 2027 Term Loan to January 15, 2029, subject to a one year extension option at the Company’s election (subject to certain conditions) (as amended, the “2030 Term Loan A”). The 2030 Term Loan A is repayable at the Company’s option in whole or in part without premium or penalty. The interest rate applicable to the 2030 Term Loan A is determined by the Company’s Investment Grade Rating (as defined in the Wells Fargo Credit Agreement). Prior to the date the Company obtains an Investment Grade Rating, interest shall accrue at either (i) SOFR, plus a SOFR adjustment of 0.10 %, plus a margin ranging from 1.15 % to 1.60 % or (ii) Base Rate (as defined in the Wells Fargo Credit Agreement), plus a margin ranging from 0.15 % to 0.60 %, in each case based on the Company’s consolidated total leverage ratio. After the date the Company obtains an Investment Grade Rating, interest shall accrue at either (i) SOFR, plus a SOFR adjustment of 0.10 %, plus a margin ranging from 0.80 % to 1.60 % or (ii) Base Rate, plus a margin ranging from 0.00 % to 0.60 %, in each case based on the Company’s Investment Grade Rating. The Company has fully hedged the 2030 Term Loan A with an all-in fixed interest rate of 3.65 %. Interest is payable monthly or at the end of the applicable interest period in arrears on any outstanding borrowings. The interest rate hedges are described in “Note 7 – Derivative Financial Instruments.” In connection with the 2030 Term Loan A, the Company incurred $ 1.1 million of deferred financing costs. Deferred financing costs are amortized over the term of the loan and are included in interest expense, net on the Company’s condensed consolidated statements of operations and comprehensive (loss) income. Mortgage Note Payable As of June 30, 2025, the Company had total gross mortgage indebtedness of $ 8.1 million, which was collateralized by related real estate and a tenant’s lease with an aggregate net book value of $ 11.9 million. The Company incurred debt issuance costs of less than $ 0.1 million and recorded a debt discount of $ 0.6 million, both of which are recorded as a reduction of the principal balance in mortgage note payable, net in the Company’s condensed consolidated balance sheets. The mortgage note matures on November 1, 2027, but may be repaid in full beginning August 2027. 19 Table of Contents Debt Maturities Payments on the 2028 Term Loan, 2029 Term Loan, 2030 Term Loan A, and 2030 Term Loan B are interest-only through maturity. As of June 30, 2025, scheduled debt maturities, including balloon payments, are as follows (in thousands): Scheduled Principal Payment Balloon Payment (1) Total Remainder of 2025 $ 86 $ — $ 86 2026 178 250,000 250,178 2027 170 7,690 7,860 2028 — 200,000 200,000 2029 — 477,000 477,000 Total $ 434 $ 934,690 $ 935,124 (1) Does not assume the exercise of any extension options available to the Company. Interest Expense The following table is a summary of the components of interest expense related to the Company’s borrowings (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revolving credit facilities (1) $ 2,104 $ 1,636 $ 3,566 $ 2,759 Term loans (2) 8,993 6,491 17,551 12,200 Mortgage note payable 93 95 186 190 Non-cash: Amortization of deferred financing costs 301 186 551 423 Amortization of debt discount and debt issuance costs, net 472 401 914 749 Amortization of deferred losses (gains) on interest rate swaps 713 ( 979 ) 1,418 ( 1,958 ) Capitalized interest ( 38 ) ( 226 ) ( 88 ) ( 579 ) Total interest expense, net $ 12,638 $ 7,604 $ 24,098 $ 13,784 (1) Includes facility fees of approximately $ 0.2 million for the three months ended June 30, 2025 and 2024, and facility fees of $ 0.4 million and $ 0.3 million for the six months ended June 30, 2025 and 2024, respectively. (2) Includes the effects of interest rate hedges. Deferred financing, discount, and debt issuance costs are amortized over the remaining terms of each respective borrowing and are included in interest expense, net in the Company’s condensed consolidated statements of operations and comprehensive (loss) income. During the three months ended June 30, 2025 and 2024, term loans had a weighted average interest rate, exclusive of amortization of deferred financing costs and the effects of interest rate hedges, of 5.65 % and 6.66 %, respectively. During the six months ended June 30, 2025 and 2024, term loans had a weighted average interest rate, exclusive of amortization of deferred financing costs and the effects of interest rate hedges, of 5.55 % and 6.69 %, respectively. During the three months ended June 30, 2025 and 2024, the Company incurred interest expense on the Revolver with a weighted average interest rate, exclusive of amortization of deferred financing costs and facility fees, of 5.47 % and 6.49 %, respectively. During the six months ended June 30, 2025 and 2024, the Company incurred interest expense on the Revolver with a weighted average interest rate, exclusive of amortization of deferred financing costs and facility fees, of 5.42 % and 6.51 %, respectively. The estimated fair values of the Company’s term loans have been derived based on market observable inputs such as interest rates and discounted cash flow analysis using estimates of the amount and timing of future cash flows. These measurements are classified as Level 2 within the fair value hierarchy. Refer to “Note 2 – Summary of Significant Accounting Policies” for additional detail on fair value measurements. The Company was in compliance with all of its debt covenants as of June 30, 2025 and expects to be in compliance for the twelve-month period ending December 31, 2025. 20 Table of Contents Note 7 – Derivative Financial Instruments The Company uses interest rate derivative contracts to manage its exposure to changes in interest rates on its variable rate debt. These derivatives are considered cash flow hedges and are recorded on a gross basis at fair value. Assessments of hedge effectiveness are performed quarterly using either a qualitative or quantitative approach. The Company recognizes the entire change in the fair value in Accumulated Other Comprehensive Income (“AOCI”) and the change is reflected as cash flow hedge changes in fair value in the supplemental disclosures of non-cash investing and financing activities in the condensed consolidated statements of cash flows. Effective July 3, 2023, interest rate derivative contracts were initiated to hedge the variable cash flows associated with the 2029 Term Loan. The interest rate for the variable rate 2029 Term Loan is based on the weighted-average hedged fixed rate of 3.74 % compared to the variable 2029 Term Loan daily simple SOFR rate as of June 30, 2025 of 4.40 %, plus a SOFR adjustment of 0.10 % and applicable margin of 1.15 %. The maturity dates of the interest rate swaps coincide with the fully extended maturity date of the 2029 Term Loan. Effective September 1, 2022, interest rate derivative contracts were initiated to hedge the variable cash flows associated with the 2028 Term Loan. The interest rate for the variable rate 2028 Term Loan is based on the weighted-average hedged fixed rate of 2.63 % compared to the variable 2028 Term Loan daily simple SOFR rate as of June 30, 2025 of 4.32 %, plus a SOFR adjustment of 0.10 % and applicable margin of 1.15 %. The maturity dates of the interest rate swaps coincide with the maturity date of the 2028 Term Loan. Effective November 27, 2023 and December 23, 2024, interest rate derivative contracts were initiated to hedge the variable cash flows associated with the 2027 Term Loan through its fully extended maturity date, at weighted-average hedged fixed rates of 1.87 % and 2.40 %, respectively. On January 15, 2025, the Company amended the 2027 Term Loan, providing for the 2030 Term Loan A, with a fully extended maturity date of January 15, 2030. The interest rate for the variable rate 2030 Term Loan A includes a daily simple SOFR rate as of June 30, 2025 of 4.29 %, plus a SOFR adjustment of 0.10 % and applicable margin of 1.15 %. The maturity date of the interest rate swaps is January 23, 2027. Effective February 3, 2025, interest rate derivative contracts were initiated to hedge the variable cash flows associated with the 2030 Term Loan B. The interest rate for the variable rate 2030 Term Loan B is based on the weighted-average hedged fixed rate of 3.87 % compared to the variable 2030 Term Loan B daily simple SOFR rate as of June 30, 2025 of 4.36 %, plus a SOFR adjustment of 0.10 % and applicable margin of 1.15 %. The maturity dates of the interest rate swaps coincide with the fully extended maturity date of the 2030 Term Loan B. During the three months ended June 30, 2025, the Company entered into three interest rate swap agreements with effective and maturity dates of October 1, 2025 and March 1, 2031, respectively, for an aggregate notional amount of $ 75.0 million at a weighted-average hedged fixed rate of 3.46 %. The interest rate swap agreements are intended to hedge the variability associated with future floating-rate debt issuances. Amounts will subsequently be reclassified to earnings when the hedged item affects earnings. The Company does not enter into derivative contracts for speculative or trading purposes and does not have derivative netting arrangements. The Company is exposed to credit risk in the event of non-performance by its derivative counterparties. The Company evaluates counterparty credit risk through monitoring the creditworthiness of counterparties, which includes review of debt ratings and financial performance. To mitigate credit risk, the Company enters into agreements with counterparties it considers credit-worthy, such as large financial institutions with favorable credit ratings. The Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands): Number of Instruments Notional Interest Rate Derivatives June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 Interest rate swaps 21 18 $ 875,000 $ 800,000 The following table presents the fair value of the Company’s derivative financial instruments as well as their classification in the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024 (in thousands): 21 Table of Contents Derivative Assets Fair Value as of Derivatives Designated as Hedging Instruments: Balance Sheet Location June 30, 2025 December 31, 2024 Interest rate swaps Other assets, net $ 6,831 $ 16,426 Derivative Liabilities Fair Value as of Derivatives Designated as Hedging Instruments: Balance Sheet Location June 30, 2025 December 31, 2024 Interest rate swaps Accounts payable, accrued expenses, and other liabilities $ 7,331 $ — The following table presents the effect of the Company’s interest rate swaps in the condensed consolidated statements of operations and comprehensive (loss) income for the three and six months ended June 30, 2025 and 2024 (in thousands): Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Derivatives in Cash Flow Hedging Relationships 2025 2024 2025 2024 For the Three Months Ended June 30 Interest Rate Products $ ( 4,081 ) $ 4,446 Interest expense, net $ 1,563 $ 4,866 For the Six Months Ended June 30 Interest Rate Products $ ( 12,453 ) $ 18,207 Interest expense, net $ 3,055 $ 9,499 The Company did not exclude any amounts from the assessment of hedge effectiveness for the three and six months ended June 30, 2025 and 2024. During the next twelve months, the Company estimates that an additional $ 2.1 million will be reclassified as a decrease to interest expense. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. To comply with the provisions of ASC 820, Fair Value Measurement, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2025, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. 22 Table of Contents The table below presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): Fair Value Hierarchy Level Description Level 1 Level 2 Level 3 Total Fair Value June 30, 2025 Derivative assets $ — $ 6,831 $ — $ 6,831 Derivative liabilities $ — $ 7,331 $ — $ 7,331 December 31, 2024 Derivative assets $ — $ 16,426 $ — $ 16,426 Note 8 – Supplemental Detail for Certain Components of the Condensed Consolidated Balance Sheets Other assets, net consists of the following (in thousands): June 30, 2025 December 31, 2024 Accounts receivable, net $ 8,861 $ 9,809 Deferred rent receivable 14,312 11,790 Prepaid assets 4,460 2,143 Earnest money deposits 450 517 Fair value of interest rate swaps 6,831 16,426 Deferred offering costs 1,855 1,641 Deferred financing costs, net 4,259 1,200 Right-of-use asset 3,287 3,484 Leasehold improvements and other corporate assets, net 1,304 1,425 Interest receivable 3,363 3,034 Other assets, net 6,134 6,758 $ 55,116 $ 58,227 Accounts payable, accrued expenses, and other liabilities consist of the following (in thousands): June 30, 2025 December 31, 2024 Accrued expenses $ 8,022 $ 4,961 Accrued bonus 1,366 1,271 Prepaid rent 4,831 5,655 Operating lease liability 4,406 4,646 Accrued interest 3,879 3,476 Deferred rent 4,598 4,738 Accounts payable 800 3,053 Fair value of interest rate swaps 7,331 — Other liabilities 2,016 1,864 $ 37,249 $ 29,664 23 Table of Contents Note 9 – Shareholders’ Equity ATM Programs On September 1, 2021, the Company entered into a $ 250.0 million at-the-market equity program (the “2021 ATM Program”). On October 25, 2023, the Company entered into a $ 300.0 million at-the-market equity program (the “2023 ATM Program”) through which, from time to time, it may sell shares of its common stock in registered transactions. Effective October 24, 2023, in connection with the establishment of the new at-the-market offering program, the 2021 ATM Program was terminated. As a result of the termination, the Company will not offer or sell any additional shares of common stock under the 2021 ATM Program. During 2024, the Company entered into forward sale agreements with respect to an aggregate 1,743,100 shares of its common stock under the 2023 ATM Program at a weighted average price of $ 17.67 per share. As of June 30, 2025, 1,743,100 shares remain unsettled under the forward sale agreements. The Company may physically settle the forward sale agreements (by the delivery of shares of common stock) and receive proceeds from the sale of those shares on one or more forward settlement dates, which shall occur no later than December 31, 2025. On August 12, 2024, the Company entered into a $ 300.0 million at-the-market equity program (the “2024 ATM Program”) through which, from time to time, it may sell shares of its common stock in registered transactions. Effective August 12, 2024, in connection with the establishment of the new at-the-market offering program, the 2023 ATM Program was terminated. As a result of the termination, the Company will not offer or sell any additional shares of common stock under the 2023 ATM Program. As context requires, the 2024 ATM Program, the 2023 ATM Program, and the 2021 ATM Program are referred to herein as the “ATM Programs.” During 2024, the Company entered into forward sale agreements with respect to an aggregate 152,547 shares of its common stock under the 2024 ATM Program at a weighted average price of $ 17.13 per share. As of June 30, 2025, 152,547 shares remain unsettled under the forward sale agreements. The Company may physically settle the forward sale agreements (by the delivery of shares of common stock) and receive proceeds from the sale of those shares on one or more forward settlement dates, which shall occur no later than December 31, 2025. During 2025, the Company entered into forward sale agreements with respect to an aggregate 2,190,299 shares of its common stock under the 2024 ATM Program at a weighted average price of $ 16.40 per share. As of June 30, 2025, 1,085,000 shares remain unsettled under the forward sale agreements. The Company may physically settle the forward sale agreements (by the delivery of shares of common stock) and receive proceeds from the sale of those shares on one or more forward settlement dates, which shall occur no later than the stated maturity dates of April 30, 2026 and June 11, 2026. The following table presents information about the ATM Programs (in thousands): Maximum Sales Authorization Gross Settlements through June 30, 2025 (1) Program Name Date Established Date Terminated 2021 ATM Program September 2021 October 2023 $ 250,000 $ 249,122 2023 ATM Program (2) October 2023 August 2024 $ 300,000 $ 77,323 2024 ATM Program (3) August 2024 — $ 300,000 $ 28,694 (1) Represents shares of common stock issued by the Company under the ATM Programs, including settlements of forward sale agreements. (2) As of June 30, 2025, 1,743,100 shares remain unsettled under the forward sale agreements at a weighted-average available net settlement price of $ 17.39 . (3) As of June 30, 2025, 1,237,547 shares remain unsettled under the forward sale agreements at a weighted-average available net settlement price of $ 16.70 . 24 Table of Contents The following table details information related to activity under the ATM Programs for the three and six months ended June 30, 2025 and 2024 (in thousands, except share and per share data). There was no activity during the three months ended March 31, 2025 and 2024; therefore, the amounts presented are the same for the three- and six-month periods. Three and Six Months Ended June 30, 2025 (1) 2024 (2) Shares of common stock issued 1,757,815 4,000,000 Weighted average price per share $ 16.32 $ 16.50 Gross proceeds $ 28,694 $ 66,000 Sales commissions and offering costs $ 342 $ 676 Net proceeds (3) $ 28,352 $ 65,324 (1) Includes 1,105,299 shares of common stock that were physically settled at a weighted-average price of $ 16.37 per share under the forward sale agreements with respect to the 2024 ATM Program. (2) Includes 4,000,000 shares of common stock that were physically settled at a price of $ 16.50 per share under the forward sale agreements with respect to the 2021 ATM Program. (3) The net proceeds were contributed to the Operating Partnership in exchange for an equivalent number of Class A OP Units. As of June 30, 2025, $ 271.3 million of remaining gross proceeds are available for future issuances of shares of common stock under the 2024 ATM Program, inclusive of unsettled shares under forward sale agreements. January 2024 Follow-On Offering In January 2024, the Company completed a registered public offering of 11,040,000 shares of its common stock at a public offering price of $ 18.00 per share. In connection with the offering, the Company entered into forward sale agreements for 11,040,000 shares of its common stock. The Company did not initially receive any proceeds from the sale of shares of common stock by the forward purchasers. The Company expects to physically settle the forward sale agreements (by delivery of shares of common stock) and receive proceeds from the sale of those shares upon one or more forward settlement dates, which shall occur no later than December 31, 2025. As of June 30, 2025, 8,840,000 shares remain unsettled under the January 2024 forward sale agreements. Surrendered Shares on Vested Stock Unit Awards During the six months ended June 30, 2025 and 2024, portions of restricted stock unit awards (“RSUs”) granted to certain of the Company’s officers, directors, and employees vested. The vesting of these awards, granted pursuant to the NETSTREIT Corp. 2019 Omnibus Incentive Plan (the “Omnibus Incentive Plan”), resulted in federal and state income tax liabilities for the recipients. During the six months ended June 30, 2025 and 2024, as permitted by the terms of the Omnibus Incentive Plan and the award grants, certain executive officers and employees elected to surrender approximately 44 thousand and 71 thousand RSUs valued at approximately $ 0.6 million and $ 1.2 million, respectively, solely to pay the associated statutory tax withholding. The surrendered RSUs are included in the row entitled “repurchase of common stock for tax withholding obligations” in the condensed consolidated statements of cash flows and condensed consolidated statements of changes in equity. Dividends During the six months ended June 30, 2025, the Company declared and paid the following common stock dividends (in thousands, except per share data): Six Months Ended June 30, 2025 Declaration Date Dividend Per Share Record Date Total Amount Payment Date February 21, 2025 $ 0.210 March 14, 2025 $ 17,157 March 31, 2025 April 25, 2025 0.210 June 2, 2025 17,159 June 16, 2025 $ 0.420 $ 34,316 25 Table of Contents During the six months ended June 30, 2024, the Company declared and paid the following common stock dividends (in thousands, except per share data): Six Months Ended June 30, 2024 Declaration Date Dividend Per Share Record Date Total Amount Payment Date February 13, 2024 $ 0.205 March 15, 2024 $ 15,031 March 28, 2024 April 23, 2024 0.205 June 3, 2024 15,042 June 14, 2024 $ 0.410 $ 30,073 The holders of OP Units are entitled to receive an equal distribution for each OP Unit held as of each record date. Accordingly, during both the six months ended June 30, 2025 and 2024, the Operating Partnership paid distributions of $ 0.2 million to holders of OP Units. Noncontrolling Interests Noncontrolling interests represent noncontrolling holders of OP Units in the Operating Partnership. OP Units are convertible into common stock as the OP Units may be redeemed for cash or, at the Company’s election, exchanged for shares of the Company’s common stock on a one -for-one basis. As of June 30, 2025 and December 31, 2024, noncontrolling interests represented 0.5 % of OP Units. During the three and six months ended June, 30, 2024, OP Unit holders redeemed 35,121 and 42,240 OP Units, respectively, into shares of common stock on a one -for-one basis. There were no OP Unit redemptions during the three and six months ended June 30, 2025. Note 10 – Stock-Based Compensation Under the Omnibus Incentive Plan, 4,294,976 shares of common stock are reserved for issuance. The Omnibus Incentive Plan provides for the grant of stock options, stock appreciation rights, restricted shares, RSUs, long-term incentive plan units, dividend equivalent rights, and other share-based, share-related, or cash-based awards, including performance-based awards, to employees, directors, and consultants, with each grant evidenced by an award agreement providing the terms of the award. The Omnibus Incentive Plan is administered by the Compensation Committee of the Board of Directors. As of June 30, 2025, the only stock-based compensation granted by the Company were RSUs. The total amount of stock-based compensation costs recognized in general and administrative expense in the accompanying condensed consolidated statements of operations and comprehensive (loss) income was $ 1.5 million for both the three months ended June 30, 2025 and 2024. Stock-based compensation expense was $ 2.9 million and $ 3.3 million for the six months ended June 30, 2025 and 2024, respectively. All awards of unvested restricted stock units are expected to fully vest over the next one to five years . Service-Based RSUs Pursuant to the Omnibus Incentive Plan, the Company has made service-based RSU grants to certain employees and non-employee directors. The vesting terms of these grants are specific to the individual grant and vest in equal annual installments over the next one to five years . The following table summarizes service-based RSU activity for the period ended June 30, 2025: Shares Weighted Average Grant Date Fair Value per Share Unvested RSU grants outstanding as of December 31, 2024 326,987 $ 18.25 Granted during the period 279,345 14.55 Forfeited during the period ( 1,546 ) 18.62 Vested during the period ( 149,434 ) 18.74 Unvested RSU grants outstanding as of June 30, 2025 455,352 $ 15.82 26 Table of Contents For both the three months ended June 30, 2025 and 2024, the Company recognized $ 0.9 million in stock-based compensation expense associated with service-based RSUs. For the six months ended June 30, 2025 and 2024, the Company recognized $ 1.7 million and $ 1.9 million, respectively, in stock-based compensation expense associated with service-based RSUs. As of June 30, 2025 and December 31, 2024, the remaining unamortized stock-based compensation expense totaled $ 5.4 million and $ 3.3 million, respectively, and as of June 30, 2025, these awards are expected to be recognized over a remaining weighted average period of 2.1 years. Stock-based compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award. The grant date fair value of service-based unvested RSUs is calculated as the per share price determined in the initial public offering for awards granted in 2020, and as the per share price of the Company’s stock on the date of grant for those granted in years subsequent to 2020. Performance-Based RSUs (total shareholder return) Pursuant to the Omnibus Incentive Plan, the Company has made market-based RSU grants to certain employees. These grants are subject to the participant’s continued service over a three year period with 40 % of the award based on the Company’s total shareholder return (“TSR”) as compared to the TSR of identified peer companies and 60 % of the award based on total absolute TSR over the cumulative three year period. The performance period of these grants runs through February 28, 2026, December 31, 2026, and December 31, 2027. Grant date fair value of the market-based share awards was calculated using the Monte Carlo simulation model, which incorporated stock price volatility of the Company and each of the Company’s peers and other variables over the performance period. Significant inputs for the current period calculation were expected volatility of the Company of 24.4 % and expected volatility of the Company’s peers, ranging from 19.5 % to 98.2 %, with an average volatility of 29.9 % and a risk-free interest rate of 4.00 %. The fair value per share on the grant date specific to the target TSR relative to the Company’s peers was $ 15.86 and the target absolute TSR was $ 14.28 for a weighted average grant date fair value of $ 14.91 per share. Stock-based compensation expense associated with unvested market-based share awards is recognized on a straight-line basis over the minimum required service period of three years . The following table summarizes market-based RSU activity for the period ended June 30, 2025: Shares Weighted Average Grant Date Fair Value per Share Unvested RSU grants outstanding as of December 31, 2024 290,442 $ 18.75 Granted during the period 170,213 14.91 Forfeited during the period ( 68,525 ) 22.38 Unvested RSU grants outstanding as of June 30, 2025 392,130 $ 16.45 For both the three months ended June 30, 2025 and 2024, the Company recognized $ 0.5 million in stock-based compensation expense associated with market-based RSUs. For the six months ended June 30, 2025 and 2024, the Company recognized $ 1.0 million and $ 1.1 million, respectively, in stock-based compensation expense associated with market-based RSUs. As of June 30, 2025 and December 31, 2024, the remaining unamortized stock-based compensation expense totaled $ 3.9 million and $ 2.4 million, respectively, and as of June 30, 2025, these awards are expected to be recognized over a remaining weighted average period of 2.1 years. Alignment of Interest Program During March 2021, the Company adopted the Alignment of Interest Program (the “Program”), which allows employees to elect to receive a portion of their annual bonus in RSUs in the first quarter of the following year, that vest from one to four years based on the terms of the grant agreement. Stock-based compensation expense is recognized on a straight-line basis over the total requisite service period for the entire award, which begins in the period the bonus relates to. The Program is deemed to be a liability-classified award (accounted for as an equity-classified award as the service date precedes the grant date and the award would otherwise be classified as equity on grant date), which will be fair-valued and accrued over the applicable service period. The total estimated fair value of the elections made for 2025 under the Program was approximately $ 1.0 million as of June 30, 2025. The award will be remeasured to fair value each reporting period until the unvested RSUs are granted. For both the three and six months ended June 30, 2025, the Company recognized approximately $ 0.1 million in stock-based compensation expense associated with these awards. Previous awards under the Program that have been granted are included within service-based RSUs above. 27 Table of Contents Note 11 – Earnings Per Share Net income (loss) per common share has been computed pursuant to the guidance in the FASB ASC Topic 260, Earnings per Share. Basic earnings per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is similarly calculated except that the denominator is increased by using the treasury stock method to determine the potential dilutive effect of the Company’s outstanding unvested RSUs and unsettled shares under open forward equity contracts and using the if-converted method to determine the potential dilutive effect of the OP Units. The Company has noncontrolling interests in the form of OP Units which are convertible into common stock and represent potentially dilutive securities, as the OP Units may be redeemed for cash or, at the Company’s election, exchanged for shares of the Company’s common stock on a one -for-one basis. The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income (loss) per common share for the three and six months ended June 30, 2025 and 2024. Three Months Ended June 30, Six Months Ended June 30, (In thousands, except share and per share data) 2025 2024 2025 2024 Numerator: Net income (loss) $ 3,289 $ ( 2,306 ) $ 4,989 $ ( 1,254 ) Net (income) loss attributable to noncontrolling interest ( 17 ) 15 ( 26 ) 8 Net income (loss) attributable to common shares, basic 3,272 ( 2,291 ) 4,963 ( 1,246 ) Net income (loss) attributable to noncontrolling interest 17 ( 15 ) 26 ( 8 ) Net income (loss) attributable to common shares, diluted $ 3,289 $ ( 2,306 ) $ 4,989 $ ( 1,254 ) Denominator: Weighted average common shares outstanding, basic 81,895,840 73,588,605 81,770,860 73,419,198 Effect of dilutive shares for diluted net income per common share: OP Units 424,956 — 424,956 — Unvested RSUs 173,333 — 118,205 — Weighted average common shares outstanding, diluted 82,494,129 73,588,605 82,314,021 73,419,198 Net income (loss) available to common stockholders per common share, basic $ 0.04 $ ( 0.03 ) $ 0.06 $ ( 0.02 ) Net income (loss) available to common stockholders per common share, diluted $ 0.04 $ ( 0.03 ) $ 0.06 $ ( 0.02 ) For the three months ended June 30, 2024, diluted net loss per common share does not assume the conversion of 440,654 OP Units, 69,023 unvested RSUs, or 254,299 unsettled shares under open forward equity contracts, as such conversion would be antidilutive. For the six months ended June 30, 2024, diluted net loss per common share does not assume the conversion of 459,520 OP Units, 118,790 unvested RSUs, or 462,103 unsettled shares under open forward equity contracts, as such conversion would be antidilutive. As of June 30, 2025 and December 31, 2024, there were 424,956 OP Units outstanding. Note 12 – Commitments and Contingencies Litigation and Regulatory Matters In the ordinary course of business, the Company may, from time to time, be subject to litigation, claims, and regulatory matters. There are none currently outstanding that the Company believes could have, individually or in the aggregate, a material adverse effect on its business, financial condition or results of operations, liquidity, or cash flows. 28 Table of Contents Environmental Matters The Company is subject to environmental regulations related to the ownership of real estate. The cost of complying with the environmental regulations was not material to the Company’s results of operations for any of the periods presented. The Company is not aware of any environmental condition on any of its properties that is likely to have a material adverse effect on the condensed consolidated financial statements when the fair value of such liability can be reasonably estimated and is required to be recognized. Commitments In the normal course of business, the Company enters into various types of commitments to purchase real estate properties, fund development projects, or extend funds under mortgage loans receivable. These commitments are generally subject to the Company’s customary due diligence process and, accordingly, a number of specific conditions must be met before the Company is obligated to purchase or extend funding. As of June 30, 2025, the Company had tenant improvement allowance commitments totaling approximately $ 4.1 million, which is expected to be funded within the next 18 months. Additionally, as of June 30, 2025, the Company had commitments to fund property developments totaling $ 6.6 million, which is expected to be funded over the next 12 months. The Company also had commitments to extend funds under mortgage loans receivable of $ 14.0 million as of June 30, 2025, which is expected to occur over the next 18 months. In August 2021, the Company entered into a lease agreement on a new corporate office space, which is classified as an operating lease. The Company began operating out of the new office in February 2022. The lease has a remaining noncancellable term of 7.1 years that expires on July 31, 2032 and is renewable at the Company’s option for two additional periods of five years . Annual rent expense, excluding operating expenses, is approximately $ 0.5 million during the initial term. As of June 30, 2025, the Company did not have any other material commitments for re-leasing costs, recurring capital expenditures, non-recurring building improvements, or similar types of costs. Note 13 – Subsequent Events The Company has evaluated all events that occurred subsequent to June 30, 2025 through the date on which these condensed consolidated financial statements were issued to determine whether any of these events required disclosure in the financial statements. Common Stock Dividend On July 21, 2025, the Company’s Board of Directors declared a cash dividend of $ 0.215 per share for the third quarter of 2025. The dividend will be paid on September 15, 2025 to stockholders of record on September 2, 2025. Forward Equity Sales In July 2025, the Company entered into forward sale agreements with respect to an aggregate 107,400 shares of its common stock under the 2024 ATM Program at a weighted average price of $ 16.94 per share. The Company may physically settle the forward sale agreements (by the delivery of shares of common stock) and receive proceeds from the sale of those shares on one or more forward settlement dates, which shall occur no later than April 30, 2026. Revolver Activity In July 2025, the Company repaid $ 4.5 million, net of borrowings, on the Revolver. 29 Table of Contents