What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2025-03-05 compared with 2024-02-27 · 49 added, 39 removed, 88 unchanged (50% of the section changed)

The Company leases its corporate office space, including its corporate headquarters, which is located in Phoenix, Arizona.

As of December 31, 2023, the Company owned 75 office properties with an aggregate of 8.7 million square feet located in 29 states, with an occupancy rate of 80.0% and a weighted-average remaining lease term of 3.9 years as of December 31, 2023.

Including the Company’s pro rata share of square feet and annualized base rent from the Arch Street Joint Venture, it owned an aggregate of 8.9 million square feet, with an occupancy rate of 80.4%, or 87.2% adjusted for properties that are currently under agreement to be sold, and a weighted-average remaining lease term of 4.0 years as of December 31, 2023.

As of December 31, 2024, the Company owned 69 operating properties with an aggregate of 7.9 million leasable square feet located in 29 states, with an occupancy rate of 73.0% and a weighted-average remaining lease term of 5.2 years.

Including the Company’s proportionate share of leasable square feet and annualized base rent from the Arch Street Joint Venture, it owned an aggregate of 8.1 million leasable square feet, with an occupancy rate of 73.7%, or 73.1% adjusted for two operating properties that are currently under agreements to be sold, and a weighted-average remaining lease term of 5.2 years as of December 31, 2024.

See Schedule III – Real Estate and Accumulated Depreciation for more information about the Company’s properties and see Note 6 – Debt, Net for more information about mortgages and other indebtedness related to the Company’s properties.

During the year ended December 31, 2024, we split the properties located in Amherst, New York and Denver, Colorado, each containing two buildings, into four separate properties for reporting purposes.

Also during the year ended December 31, 2024, we commenced classifying certain of our properties which are being repositioned, redeveloped, developed or held for sale as non-operating properties rather than operating properties, resulting in seven properties being removed from the presentation of the Company’s portfolio of operating properties as of December 31, 2024.

Tenant Industry Diversification

The following table sets forth certain information regarding the tenant industry concentrations in our property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2023 (dollars and square feet in thousands):

The following table sets forth certain information regarding the tenant industry concentrations in our operating property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2024 (dollars and square feet in thousands):

Industry Number of Leases (1)

Leased Square Feet Leased Square Feet as a % of Total Portfolio Annualized Base Rent Annualized Base Rent as a % of Total Portfolio

Health Care Equipment & Services 12 1,109 12.5 % $ 21,601 15.3 %

Occupied Square Feet % of Total Rentable Square Feet Annualized Base Rent % of Total Annualized Base Rent

Government & Public Services 17 769 9.5 % $ 20,179 16.8 %

Health Care Equipment & Services 10 846 10.4 % 16,158 13.4 %

Financial Institutions 2 546 6.7 % 13,772 11.4 %

Insurance 3 600 6.7 % 13,292 9.4 %

Capital Goods 10 846 10.4 % 13,207 11.0 %

Software & Services 6 609 6.9 % 12,390 8.8 %

Consumer Durables & Apparel 3 375 4.6 % 8,971 7.5 %

Telecommunication Services 5 419 4.7 % 6,892 4.9 %

Materials 5 462 5.7 % 8,378 7.0 %

Telecommunication Services 5 420 5.2 % 7,202 6.0 %

Energy 1 309 3.8 % 5,866 4.9 %

Commercial & Professional Services 10 281 3.5 % 5,516 4.6 %

Software & Services 3 263 3.3 % 5,056 4.2 %

Top Ten Tenant Industries 66 5,117 63.1 % 104,305 86.8 %

Remaining Tenant Industries:

Commercial & Professional Services 10 293 3.3 % 4,746 3.4 %

Transportation 4 279 3.5 % 4,536 3.8 %

Media & Entertainment 2 264 3.3 % 3,803 3.2 %

Insurance 1 116 1.4 % 3,671 3.0 %

Retailing 3 157 1.9 % 3,368 2.8 %

Food, Beverage & Tobacco 1 96 1.1 % 2,022 1.4 %

Utilities 1 25 0.3 % 394 0.3 %

Restaurant 4 15 0.2 % 168 0.1 %

Real Estate 1 2 — % 48 — %

Consumer Services 2 5 0.1 % 54 — %

Retail/Restaurant 1 2 — % 49 — %

Total 82 5,975 73.7 % $ 120,293 100.0 %

____________________________________

(1) The Company has certain properties that are subject to multiple leases.

(1) The Company has certain operating properties that are subject to multiple leases.

Geographic Diversification

The following table sets forth certain information regarding the geographic concentrations (by state) in our property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2023 (dollars and square feet in thousands):

Location Number of Properties Rentable Square Feet Square Feet as a % of Total Portfolio Annualized Base Rent Annualized Base Rent as a % of Total Portfolio

The following table sets forth certain information regarding the geographic concentrations (by state) in our operating property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2024 (dollars and square feet in thousands):

Location Number of Properties Rentable Square Feet % of Total Rentable Square Feet Annualized Base Rent % of Total Annualized Base Rent

Texas 15 1,352 16.7 % $ 19,910 16.5 %

New Jersey 3 714 8.8 % 15,023 12.5 %

New York 5 781 8.8 % 14,407 10.2 %

Kentucky 2 458 5.6 % 10,470 8.7 %

Colorado 4 452 5.6 % 8,581 7.1 %

Massachusetts 2 378 4.3 % 7,947 5.6 %

Oklahoma 3 585 6.6 % 6,811 4.8 %

California 4 341 4.2 % 8,144 6.8 %

Missouri 3 303 3.4 % 4,917 3.5 %

Oklahoma 3 585 7.2 % 7,017 5.8 %

New York 6 781 9.6 % 6,151 5.1 %

Maryland 2 236 2.9 % 4,756 4.0 %

Top Ten States 42 5,633 63.6 % 101,475 71.7 %

Remaining States:

Tennessee 4 240 3.0 % 4,708 3.9 %

Georgia 3 284 3.5 % 4,669 3.9 %

Top Ten States 46 5,443 67.1 % 89,429 74.3 %

Remaining States:

Virginia 2 240 3.0 % 4,623 3.8 %

Missouri 2 207 2.5 % 2,981 2.5 %

South Carolina 1 64 0.8 % 2,513 2.1 %

Ohio 2 169 2.1 % 2,463 2.0 %

Rhode Island 2 206 2.5 % 2,446 2.0 %

South Carolina 1 64 0.7 % 2,459 1.8 %

Wisconsin 1 155 1.9 % 2,357 2.0 %

Arizona 1 91 1.0 % 2,282 1.6 %

Illinois 2 163 2.0 % 2,240 1.9 %

Iowa 2 92 1.1 % 2,001 1.7 %

West Virginia 1 63 0.8 % 1,457 1.2 %

Nebraska 2 180 2.2 % 1,411 1.2 %

1 unchanged sentence

Oregon 1 69 0.9 % 1,165 1.0 %

West Virginia 1 63 0.7 % 1,130 0.8 %

Kansas 2 196 2.4 % 1,075 0.9 %

Massachusetts 2 378 4.7 % 742 0.6 %

Idaho 1 35 0.4 % 741 0.6 %

2 unchanged sentences

Florida 1 6 0.1 % 230 0.2 %

Arizona 1 91 1.1 % — — %

Total 75 8,112 100.0 % $ 120,293 100.0 %

Tenant Diversification

The following table sets forth certain information regarding tenants comprising over one percent of annualized base rent in our property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2023 (dollars and square feet in thousands):

Tenant Number of Leases Leased Square Feet Square Feet as a % of Total Portfolio Annualized Base Rent Annualized Base Rent as a % of Total Portfolio

The following table sets forth certain information regarding tenants comprising over one percent of annualized base rent in our operating property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2024 (dollars and square feet in thousands):

Tenant Number of Leases Occupied Square Feet % of Total Rentable Square Feet Annualized Base Rent % of Total Annualized Base Rent

General Services Administration 15 725 8.9 % $ 19,631 16.3 %

Merrill Lynch 1 482 5.4 % 12,465 8.8 %

Highmark Western & Northeastern NY 1 430 4.8 % 8,450 6.0 %

RSA Security 2 328 3.7 % 7,221 5.1 %

Cigna/Express Scripts 3 365 4.1 % 6,922 4.9 %

Bank of America 1 482 5.9 % 11,260 9.4 %

Coterra Energy 1 309 3.8 % 5,866 4.9 %

Cigna/Express Scripts 2 274 3.4 % 4,770 4.0 %

MDC Holdings Inc.

3 unchanged sentences

Banner Life Insurance 1 116 1.4 % 3,670 3.1 %

Top Ten Tenants 30 3,380 38.1 % 75,611 53.5 %

Remaining Tenants:

Inform Diagnostics 1 172 1.9 % 3,551 2.5 %

Encompass Health 1 65 0.8 % 3,575 3.0 %

Collins Aerospace 1 207 2.6 % 3,440 2.9 %

Top Ten Tenants 28 2,803 34.6 % 64,553 53.9 %

Remaining Tenants:

Home Depot/HD Supply 2 153 1.9 % 3,292 2.7 %

4 unchanged sentences

Citigroup 1 64 0.8 % 2,513 2.1 %

CVS/Aetna 1 127 1.4 % 2,328 1.7 %

Hasbro 1 136 1.7 % 2,446 2.0 %

Novus International 1 96 1.1 % 2,022 1.4 %

Valent U.S.A.

1 97 1.2 % 2,417 2.0 %

CVS/Aetna 1 127 1.6 % 2,403 2.0 %

GE Vernova 1 152 1.9 % 2,055 1.7 %

Pulte Mortgage 1 95 1.2 % 2,053 1.7 %

1 unchanged sentence

Elementis 1 66 0.8 % 1,980 1.6 %

Day Pitney 1 56 0.7 % 1,783 1.5 %

FedEx 1 90 1.1 % 1,744 1.4 %

General Electric 1 152 1.7 % 1,713 1.2 %

AGCO 1 126 1.6 % 1,607 1.3 %

2 unchanged sentences

Becton Dickinson 1 72 0.9 % 1,397 1.2 %

Ifm Efector 1 45 0.6 % 1,345 1.1 %

Peraton 1 33 0.4 % 1,184 1.0 %

Total 51 5,183 64.2 % $ 109,234 90.9 %

Lease Expirations

The following table sets forth certain information regarding scheduled lease expirations in our property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2023 (dollars and square feet in thousands):

The following table sets forth certain information regarding scheduled lease expirations in our operating property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2024 (dollars and square feet in thousands):

Year of Expiration Number of Leases

Square Feet Leased Square Feet as a % of Total Portfolio Annualized Base Rent Annualized Base Rent as a % of Total Portfolio

Square Feet % of Total Rentable Square Feet Annualized Base Rent % of Total Annualized Base Rent

2025 9 859 10.6 % $ 16,200 13.5 %

11 unchanged sentences

____________________________________

(1) The Company has certain properties that are subject to multiple leases.

(1) The Company has certain operating properties that are subject to multiple leases.

Operating Property Type

The following table sets forth certain information regarding property types in our operating property portfolio, including our proportionate share of square feet and annualized base rent from properties owned by the Arch Street Joint Venture, as of December 31, 2024 (dollars and square feet in thousands):

Property Type Number of Properties Rentable Square Feet % of Total Rentable Square Feet Annualized Base Rent % of Total Annualized Base Rent

Traditional Office 46 6,081 75.0 % 82,001 68.2 %

Governmental 16 789 9.7 % 20,269 16.8 %

Flex/Industrial 7 819 10.1 % 8,238 6.8 %

Flex/Laboratory and R&D 4 268 3.3 % 6,210 5.2 %

Medical Office 2 155 1.9 % 3,575 3.0 %

Total 75 8,112 100.0 % 120,293 100.0 %

Legal Proceedings.

3 unchanged sentences

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

What changed 10-K

Item 2. Properties