Item 2. Properties
Item 2. Properties.
The Company leases its corporate office space, including its corporate headquarters, which is located in Phoenix, Arizona. As of December 31, 2025, the Company owned 58 operating properties with an aggregate of 6.5 million leasable square feet located in 26 states with an occupancy rate of 78.1% and a weighted average remaining lease term of 5.6 years. As of December 31, 2025, the Company had eight properties designated as non-operating properties. 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 6.7 million leasable square feet, with an occupancy rate of 78.7%, or 78.2% adjusted for one consolidated operating property and its proportionate share of the square footage of one Arch Street Joint Venture operating property that are currently under agreements to be sold, and a weighted average remaining lease term of 5.7 years as of December 31, 2025. 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.
Tenant Industry Diversification
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, 2025 (dollars and square feet in thousands):
Industry Number of Leases (1)
Occupied Square Feet % of Total Rentable Square Feet Annualized Base Rent % of Total Annualized Base Rent
Government & Public Services 17 768 11.4 % $ 20,381 18.3 %
Health Care Equipment & Services 10 748 11.1 % 15,233 13.7 %
Capital Goods 9 714 10.6 % 12,015 10.8 %
Financial Institutions 1 482 7.2 % 11,136 10.0 %
Software & Services 4 422 6.3 % 9,986 9.0 %
Materials 5 463 6.9 % 8,581 7.7 %
Telecommunication Services 4 419 6.2 % 7,511 6.7 %
Commercial & Professional Services 10 281 4.2 % 5,613 5.0 %
Consumer Durables & Apparel 1 145 2.2 % 4,562 4.1 %
Transportation 4 279 4.1 % 4,457 4.0 %
Top Ten Tenant Industries 65 4,721 70.2 % 99,475 89.3 %
Remaining Tenant Industries:
Media & Entertainment 2 264 3.9 % 3,902 3.5 %
Insurance 1 116 1.7 % 3,762 3.4 %
Retailing 3 157 2.3 % 3,526 3.2 %
Utilities 1 26 0.4 % 394 0.4 %
Restaurant 4 15 0.2 % 172 0.2 %
Real Estate 1 2 — % 49 — %
Total 77 5,301 78.7 % $ 111,280 100.0 %
____________________________________
(1) The Company has certain operating properties that are subject to multiple leases.
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Geographic Diversification
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, 2025 (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 1,351 20.1 % $ 21,083 18.9 %
New Jersey 3 714 10.6 % 14,927 13.4 %
New York 6 766 11.4 % 11,102 10.0 %
Kentucky 2 458 6.8 % 10,538 9.5 %
Colorado 3 392 5.8 % 6,679 6.0 %
California 3 214 3.2 % 5,990 5.4 %
Maryland 2 236 3.5 % 4,870 4.4 %
Virginia 2 240 3.6 % 4,726 4.2 %
Georgia 3 284 4.2 % 4,704 4.2 %
Tennessee 4 240 3.6 % 4,623 4.2 %
Top Ten States 43 4,895 72.8 % 89,242 80.2 %
Remaining States:
Missouri 2 207 3.1 % 3,033 2.7 %
Ohio 2 169 2.5 % 2,497 2.2 %
Wisconsin 1 155 2.3 % 2,416 2.2 %
Rhode Island 1 136 2.0 % 2,209 2.0 %
Iowa 2 92 1.4 % 2,046 1.8 %
West Virginia 1 63 0.9 % 1,463 1.3 %
Pennsylvania 1 45 0.7 % 1,375 1.2 %
Oregon 1 69 1.0 % 1,188 1.1 %
Kansas 1 90 1.3 % 1,107 1.0 %
Nebraska 1 150 2.2 % 913 0.8 %
Illinois 1 33 0.5 % 844 0.8 %
Massachusetts 1 50 0.7 % 757 0.7 %
Idaho 1 35 0.5 % 741 0.7 %
Indiana 1 83 1.2 % 592 0.5 %
Minnesota 1 39 0.6 % 505 0.5 %
Florida 1 6 0.1 % 247 0.2 %
Oklahoma 1 330 4.9 % 105 0.1 %
Arizona 1 90 1.3 % — — %
Total 64 6,737 100.0 % $ 111,280 100.0 %
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Tenant Diversification
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, 2025 (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 15 724 10.7 % $ 19,821 17.8 %
Merrill Lynch 1 482 7.2 % 11,136 10.0 %
Ingram Micro 2 330 4.9 % 7,860 7.1 %
Cigna/Express Scripts 2 275 4.1 % 4,866 4.4 %
Sekisui House U.S. 1 145 2.2 % 4,562 4.1 %
T-Mobile 3 216 3.2 % 4,128 3.7 %
Charter Communications 2 264 3.9 % 3,902 3.5 %
Banner Life Insurance 1 116 1.7 % 3,762 3.4 %
Encompass Health 1 65 1.0 % 3,646 3.3 %
Collins Aerospace 1 207 3.1 % 3,513 3.2 %
Top Ten Tenants 29 2,824 42.0 % 67,196 60.5 %
Remaining Tenants:
Home Depot/HD Supply 2 153 2.3 % 3,448 3.1 %
AT&T 1 203 3.0 % 3,383 3.0 %
Linde 1 175 2.6 % 2,886 2.6 %
Maximus 2 168 2.5 % 2,673 2.4 %
Valent U.S.A. 1 97 1.4 % 2,510 2.3 %
Brown University Health 1 136 2.0 % 2,209 2.0 %
GE Vernova 1 152 2.3 % 2,117 1.9 %
NetJets 1 140 2.1 % 2,040 1.8 %
Elementis 1 66 1.0 % 1,980 1.8 %
Day Pitney 1 56 0.8 % 1,811 1.6 %
FedEx 1 90 1.3 % 1,623 1.5 %
AGCO 1 126 1.9 % 1,606 1.4 %
Intermec 1 81 1.2 % 1,545 1.4 %
Becton Dickinson 1 73 1.1 % 1,425 1.3 %
Ifm Efector 1 45 0.7 % 1,375 1.2 %
Peraton 1 33 0.5 % 1,213 1.1 %
Ineos Pigments 1 120 1.8 % 1,108 1.0 %
Change Healthcare Operations 1 55 0.8 % 1,097 1.0 %
Total 49 4,793 71.3 % $ 103,245 92.9 %
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Lease Expirations
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, 2025 (dollars and square feet in thousands):
Year of Expiration Number of Leases
Expiring (1)
Occupied
Square Feet % of Total Rentable Square Feet Annualized Base Rent % of Total Annualized Base Rent
2026 11 519 7.7 % $ 11,390 10.2 %
2027 11 891 13.2 % 14,106 12.7 %
2028 13 1,112 16.5 % 25,560 23.0 %
2029 6 401 6.0 % 6,362 5.7 %
2030 7 241 3.6 % 7,803 7.0 %
2031 2 18 0.3 % 570 0.5 %
2032 3 174 2.6 % 2,621 2.3 %
2033 3 211 3.1 % 3,901 3.5 %
2034 5 242 3.6 % 3,760 3.4 %
2035 4 640 9.5 % 14,422 13.0 %
Thereafter 12 852 12.6 % 20,785 18.7 %
Total 77 5,301 78.7 % $ 111,280 100.0 %
____________________________________
(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, 2025 (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 36 4,724 70.1 % 71,507 64.2 %
Governmental 17 938 13.9 % 21,346 19.2 %
Flex/Industrial 5 652 9.7 % 8,437 7.6 %
Flex/Laboratory and R&D 4 268 4.0 % 6,344 5.7 %
Medical Office 2 155 2.3 % 3,646 3.3 %
Total 64 6,737 100.0 % 111,280 100.0 %
Item 3. Legal Proceedings.
As of December 31, 2025, we are not a party to, and none of our properties are subject to, any material pending legal proceedings.
Item 4. Mine Safety Disclosures.
Not applicable.
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PART II