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Item 2. Management’s Discussion and Analysis

2025-08-04 compared with 2025-05-01 · 103 added, 56 removed, 226 unchanged (41% of the section changed)

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We conduct our business through a traditional UPREIT structure in which our properties are owned by our Operating Partnership directly or through limited partnerships, limited liability companies or other subsidiaries.

During the three months ended March 31, 2025, we acquired 36 properties leased to the USPS for approximately $16.3 million, including closing costs.

As of March 31, 2025, our portfolio consists of 1,738

owned properties, located in 49 states and one territory and comprising approximately 6.5 million net leasable interior square feet.

During the six months ended June 30, 2025, we acquired 104 properties leased to the

USPS for approximately $53.2 million, including closing costs.

As of June 30, 2025, our portfolio consists of 1,806 owned properties, located in 49 states and one territory and comprising approximately 6.8 million net leasable interior square feet.

We are the sole general partner of our Operating Partnership through which our properties are directly or indirectly owned.

As of April 30, 2025, we owned approximately 78.0% of outstanding common units of limited partnership interest in our Operating Partnership (the “OP Units”), including long term incentive units of our Operating Partnership (the “LTIP Units”).

As of August 4, 2025, we owned approximately 77.8% of outstanding common units of limited partnership interest in our Operating Partnership (the “OP Units”), including long term incentive units of our Operating Partnership (the “LTIP Units”).

Our Board of Directors oversees our business and affairs.

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(“M&T”), as additional sales agents, and affiliates of Mizuho, as forward sellers.

During the three months ended March 31, 2025, 139,626 shares were issued under the ATM Program for approximately $2.0 million in gross proceeds.

As of March 31, 2025, we had approximately $91.7 million of availability remaining under the ATM Program.

During the six months ended June 30, 2025, 669,454 shares were issued under the ATM Program for approximately $9.8 million in gross proceeds.

As of June 30, 2025, we had approximately $83.9 million of availability remaining under the ATM Program.

Executive Overview

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Geographic Concentration

As of March 31, 2025, we owned a portfolio of 1,738 properties located in 49 states and one territory and leased primarily to the USPS.

For the three months ended March 31, 2025, approximately 11.0% of our total rental income was concentrated in Pennsylvania.

As of June 30, 2025, we owned a portfolio of 1,806 properties located in 49 states and one territory and leased primarily to the USPS.

For the six months ended June 30, 2025, approximately 10.6% of our total rental income was concentrated in Pennsylvania.

Registrant Elections

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As long as we qualify as a REIT, we generally will not be subject to federal income tax to the extent that we distribute our taxable income for each tax year to our stockholders.

New Tax Legislation

Effective July 4, 2025, certain changes to U.S.

tax law were approved that impact us and our stockholders.

Among other changes, this legislation (i) permanently extended the 20% deduction for “qualified REIT dividends” for individuals and other non-corporate taxpayers under Section 199A of the Code, (ii) increased the percentage limit under the REIT asset test applicable to taxable REIT subsidiaries ("TRSs") from 20% to 25% for taxable years beginning after December 31, 2025, and (iii) increases the base on which the 30% interest deduction limit under Section 163(j) of the Code applies by excluding depreciation, amortization and depletion from the definition of “adjusted taxable income” (i.e.

based on EBITDA rather than EBIT) for taxable years beginning after December 31, 2024.

Factors That May Influence Future Results of Operations

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While the USPS has recently undertaken, and proposes to undertake, a number of operational reforms and cost reduction measures, such as higher rates and slower deliveries for certain services and closure, relocation or consolidation of certain facilities and delivery routes, the USPS has taken the position such measures alone will not be sufficient to maintain its ability to meet all of its existing obligations when due or allow it to make the critical infrastructure investments that have been deferred in recent years.

These measures have also led to significant criticism and litigation, which may result in reputational or financial harm or

increased regulatory scrutiny of the USPS or reduced demand for its services.

These measures have also led to significant criticism and litigation, which may result in reputational or financial harm or increased regulatory scrutiny of the USPS or reduced demand for its services.

The occurrence of a regional epidemic or a global pandemic, such as the COVID-19 pandemic, and measures taken to prevent its spread may also have a material and unpredictable effect on the USPS’ operations and liquidity, including significant additional operating expenses caused by pandemic-related disruptions.

The lingering effect of the COVID-19 pandemic and other geopolitical and economic factors have also created significant inflationary pressures resulting in higher compensation, benefits, transportation and fuel costs for the USPS.

Other geopolitical and economic factors have also created significant inflationary pressures resulting in higher compensation, benefits, transportation and fuel costs for the USPS.

If the USPS becomes unable to meet its financial obligations or its revenue declines due to reduced demand for its services, the USPS may reduce its demand for leasing postal properties, which would have a material adverse effect on our business and operations.

For additional information regarding the risks associated with the USPS, see the section entitled “Risk Factors - Risks Related to the USPS” under Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024.

We derive revenues primarily from rent and tenant reimbursements under leases with the USPS for our properties and fee and other from the management of postal properties owned by Andrew Spodek, our chief executive officer, and his affiliates managed by our taxable REIT subsidiary (“TRS”), income recognized from properties accounted for as financing leases and revenue from providing certain advisory services.

We derive revenues primarily from rent and tenant reimbursements under leases with the USPS for our properties and fee and other from the management of postal properties owned by Andrew Spodek, our chief executive officer, and his affiliates managed by our TRS, income recognized from properties accounted for as financing leases and revenue from providing certain advisory services.

Rental income represents the lease revenue recognized under the leases primarily with the USPS which includes the impact of above and below market lease intangibles as well as reimbursements to us made by our tenants for the real estate taxes paid at each property where tenants are responsible for such taxes under the leases.

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Spodek and his affiliates pursuant to the management agreements and is a percentage of the lease revenue for the managed properties, (ii) revenue our TRS received from providing advisory services to third-party owners of postal properties and (iii) income recognized from properties accounted for as financing leases.

As of March 31, 2025, properties leased to our tenants had an average remaining lease term of approximately 4.0 years.

As of June 30, 2025, properties leased to our tenants had an average remaining lease term of approximately 4.0 years.

Factors that could affect our rental income and fee and other in the future include, but are not limited to:

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Equity-Based Compensation Expense

All equity-based compensation expense is recognized in our Consolidated Statements of Operations and Comprehensive (Loss) Income as components of general and administrative expense and property operating expenses.

All equity-based compensation expense is recognized in our Consolidated Statements of Operations and Comprehensive Income as components of general and administrative expense and property operating expenses.

We issue share-based awards to align our directors' and employees’ interests with those of our investors.

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Lease Renewal

As of April 30, 2025, the leases at seven of our properties, representing approximately 29,000 net leasable interior square feet, had expired and the USPS was occupying such properties as a holdover tenant.

As of the date of this report, the USPS had not vacated or notified us of its intention to vacate any of these properties.

As of the date of this report, the USPS had not vacated or notified us of its intention to vacate any properties.

When a lease expires, the USPS becomes a holdover tenant on a month-to-month basis typically paying the greater of estimated market rent or the rent amount under the expired lease.

As of August 4, 2025, none of the properties we own were being occupied by the USPS as a holdover tenant.

While we currently anticipate that we will renew the leases that have expired or will expire, there can be no guarantee that we will be successful in renewing these leases, obtaining positive rent renewal spreads or renewing the leases on terms comparable to those of the expiring leases.

Even if we are able to renew these expired leases, the lease terms may not be comparable to those of the previous leases.

Even if we are able to renew these expired leases, the lease terms may not be

comparable to those of the previous leases.

If we are not successful, we will likely experience reduced occupancy, rental income and net operating income, as well as diminished borrowing capacity under our Credit Facilities, which could have a material adverse effect on our financial condition, results of operations and ability to make distributions to shareholders.

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Results of Operations

Comparison of the Three Months Ended March 31, 2025 and the Three Months Ended March 31, 2024

Comparison of the Three Months Ended June 30, 2025 and the Three Months Ended June 30, 2024

For the Three Months Ended

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General and administrative 4,316 3,920 396 10.1 %

Casualty and impairment losses, net 150 — 150 N/A

Casualty and impairment losses (gains), net (345) — (345) N/A

Depreciation and amortization 5,914 5,518 396 7.2 %

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Rental income – Rental income includes net rental income as well as the recovery of certain operating costs and property taxes from tenants.

Rental income increased by $4.9 million to $21.5 million for the three months ended March 31, 2025 from $16.6 million for the three months ended March 31, 2024, primarily due to the volume of our acquisitions and the execution of new leases with annual escalations.

Rental income increased by $5.4 million to $22.7 million for the three months ended June 30, 2025 from $17.4 million for the three months ended June 30, 2024, primarily due to the volume of our acquisitions and the execution of new leases with annual escalations.

Fee and other – Fee and other revenue decreased by $0.1 million to $0.6 million for the three months ended June 30, 2025 from $0.7 million for the three months ended June 30, 2024, primarily due to a decrease in management fees.

Operating Expenses

Real estate taxes – Real estate taxes increased by $0.3 million to $2.6 million for the three months ended March 31, 2025 from $2.3 million for the three months ended March 31, 2024, primarily due to the volume of our acquisitions.

Property operating expenses – Property operating expenses increased by $0.1 million to $2.5 million for the three months ended March 31, 2025 from $2.4 million for the three months ended March 31, 2024.

Property management expenses are included within property operating expenses and increased by $0.1 million to $1.0 million for the three months ended March 31, 2025 from $0.9 million for the three months ended March 31, 2024.

General and administrative – General and administrative expenses increased by $0.6 million to $4.9 million for the three months ended March 31, 2025 from $4.3 million for the three months ended March 31, 2024, primarily due to an increase in net compensation costs, partially offset by a decrease in public company-related expenses.

Casualty and impairment losses, net - Casualty and impairment losses for the three months ended March 31, 2025 was $0.2 million which reflects $0.5 million in gross charges primarily related to the net book value of two properties damaged as a result of natural disasters and related repairs, partially offset by $0.4 million of related insurance claims that the Company believes is probable it will recover resulting in a net charge of $0.1 million and $0.1 million for an impairment on an asset.

No casualty and impairment losses occurred for the three months ended March 31, 2024.

Depreciation and amortization – Depreciation and amortization expense increased by $0.3 million to $5.6 million for the three months ended March 31, 2025 from $5.3 million for three months ended March 31, 2024, primarily due to the volume of our acquisitions.

Other income primarily includes insurance recoveries related to property damage claims.

Other income decreased by $0.02 million to $0.03 million for the three months ended March 31, 2025 from $0.05 million for the three months ended March 31, 2024, primarily due to a decrease in property related insurance recoveries from claims.

Real estate taxes – Real estate taxes increased by $0.4 million to $2.8 million for the three months ended June 30, 2025 from $2.4 million for the three months ended June 30, 2024, primarily due to the volume of our acquisitions.

Property operating expenses – Property operating expenses decreased by $0.1 million to $2.0 million for the three months ended June 30, 2025 from $2.1 million for the three months ended June 30, 2024.

Property management expenses are included within property operating expenses and decreased by $0.1 million to $0.6 million for the three months ended June 30, 2025 from $0.7 million for the three months ended June 30, 2024.

General and administrative – General and administrative expenses increased by $0.4 million to $4.3 million for the three months ended June 30, 2025 from $3.9 million for the three months ended June 30, 2024, primarily due to an increase in net compensation costs, partially offset by a decrease in public company-related expenses.

Casualty and impairment losses (gains), net - Casualty and impairment gains for the three months ended June 30, 2025 were $0.3 million which reflects $0.1 million in gross charges primarily related to the net book value of several properties damaged as a result of natural disasters and related repairs, offset by $0.6 million of related insurance claims resulting in a net gain of $0.5 million and $0.2 million for an impairment on an asset that was reclassified to Assets Held for Sale.

No casualty and impairment losses (gains), net occurred for the three months ended June 30, 2024.

Depreciation and amortization – Depreciation and amortization expense increased by $0.4 million to $5.9 million for the three months ended June 30, 2025 from $5.5 million for three months ended June 30, 2024, primarily due to the volume of our acquisitions.

Total Interest Expense, Net

During the three months ended March 31, 2025, we incurred total interest expense, net of $3.6 million compared to $2.8 million for the three months ended March 31, 2024.

During the three months ended June 30, 2025, we incurred total interest expense, net of $4.0 million compared to $3.1 million for the three months ended June 30, 2024.

The increase in interest expense was primarily due to additional borrowings under the Credit Facilities and increased interest rates.

Comparison of the Three Months Ended March 31, 2025 and the Three Months Ended March 31, 2024

We had $0.6 million of cash and $0.9 million of escrows and reserves as of March 31, 2025 compared to $1.9 million of cash and $0.8 million of escrows and reserves as of March 31, 2024.

Cash flows from operating activities – Net cash provided by operating activities increased by $4.4 million to $10.8 million for the three months ended March 31, 2025 compared to $6.4 million for the same period in 2024.

Comparison of the Six Months Ended June 30, 2025 and Six Months Ended June 30, 2024

For the Six Months Ended

2025 2024 $ Change % Change

Rental income $ 44,210 $ 33,969 $ 10,241 30.1 %

Fee and other 1,291 1,369 (78) (5.7) %

Total revenues 45,501 35,338 10,163 28.8 %

Operating expenses

Real estate taxes 5,422 4,687 735 15.7 %

Property operating expenses 4,445 4,471 (26) (0.6) %

General and administrative 9,252 8,213 1,039 12.7 %

Casualty and impairment losses (gains), net (195) — (195) N/A

Depreciation and amortization 11,538 10,819 719 6.6 %

Total operating expenses 30,462 28,190 2,272 8.1 %

Loss on sale of real estate assets (49) — (49) N/A

Income from operations 14,990 7,148 7,842 109.7 %

Other income 30 65 (35) (53.8) %

Interest expense, net

Contractual interest expense (7,254) (5,525) (1,729) 31.3 %

Write-off and amortization of deferred financing fees (422) (362) (60) 16.6 %

Interest income 7 6 1 16.7 %

Total interest expense, net (7,669) (5,881) (1,788) 30.4 %

Income before income tax expense 7,351 1,332 6,019 451.9 %

Income tax expense (24) (44) 20 (45.5) %

Net income $ 7,327 $ 1,288 $ 6,039 468.9 %

Rental income – Rental income includes net rental income as well as the recovery of certain operating costs and property taxes from tenants.

Rental income increased by $10.2 million to $44.2 million for the six months ended June 30, 2025 from $34.0 million for the six months ended June 30, 2024, primarily due to the volume of our acquisitions.

Fee and other – Fee and other revenue decreased by $0.1 million to $1.3 million for the six months ended June 30, 2025 from $1.4 million for the six months ended June 30, 2024, primarily due to a decrease in management fees.

Operating Expense

Real estate taxes – Real estate taxes increased by $0.7 million to $5.4 million for the six months ended June 30, 2025 from $4.7 million for the six months ended June 30, 2024, primarily due to the volume of our acquisitions.

General and administrative – General and administrative expenses increased by $1.0 million to $9.3 million for the six months ended June 30, 2025 from $8.2 million for the six months ended June 30, 2024 primarily due to an increase in net compensation costs, partially offset by a decrease in public company-related expenses.

Casualty and impairment losses (gains), net - Casualty and impairment gains for the six months ended June 30, 2025 were $0.2 million which reflects $0.6 million in gross charges primarily related to the net book value of several properties damaged as a result of natural disasters and related repairs, offset by $1.0 million of related insurance claims resulting in a net gain of $0.4 million and $0.2 million for an impairment on an asset that was reclassified to Assets Held for Sale.

No casualty and impairment losses (gain), net occurred for the six months ended June 30, 2024.

Depreciation and amortization – Depreciation and amortization expense increased by $0.7 million to $11.5 million for the six months ended June 30, 2025 from $10.8 million for the six months ended June 30, 2024, primarily due to the volume of our acquisitions.

Total Interest Expense, Net

During the six months ended June 30, 2025, we incurred total interest expense, net of $7.7 million compared to $5.9 million for the six months ended June 30, 2024.

The increase in interest expense is primarily related due to additional borrowings under the Credit Facilities and increased interest rates.

Comparison of the Six Months Ended June 30, 2025 and the Six Months Ended June 30, 2024

We had $1.1 million of cash and $1.0 million of escrows and reserves as of June 30, 2025 compared to $1.7 million of cash and $0.9 million of escrows and reserves as of June 30, 2024.

Cash flows from operating activities – Net cash provided by operating activities increased by $5.9 million to $22.2 million for the six months ended June 30, 2025 compared to $16.3 million for the same period in 2024.

The increase is primarily due to the volume of our acquisitions and the execution of new leases with annual rent escalations all of which have generated additional rental income and related changes in working capital, as well as the timing of certain receivables and payables.

Cash flows used in investing activities – Net cash used in investing activities for the three months ended March 31, 2025 primarily consisted of $15.1 million of acquisitions and $1.4 million of escrow deposits for acquisitions, capital improvements and other investing activities offset by $0.8 million in proceeds received from the sale of real estate assets.

Net cash used in investing activities for the three months ended March 31, 2024 primarily consisted of $13.0 million of acquisitions and $0.9 million of escrow deposits for acquisitions, capital improvements and other investing activities.

Cash flows from financing activities – Net cash provided by financing activities decreased by $3.3 million to $4.0 million for the three months ended March 31, 2025 compared to $7.3 million for the three months ended March 31, 2024.

The decrease was primarily related to a decrease in net proceeds received from issuance of shares and an increase in the payment of dividends and distributions partially offset by an increase in borrowings from the Revolving Credit Facility.

Cash flows used in investing activities – Net cash used in investing activities for the six months ended June 30, 2025 primarily consisted of $46.9 million of acquisitions and $3.5 million of escrow deposits for acquisitions, capital improvements and other investing activities offset by $1.7 million in proceeds received from the sale of real estate assets and property damage claims.

Net cash used in investing activities for the six months ended June 30, 2024 primarily consisted of $41.8 million of acquisitions and $1.9 million of escrow deposits for acquisitions, capital improvements and other investing activities.

Cash flows from financing activities – Net cash provided by financing activities decreased by $1.1 million to $26.0 million for the six months ended June 30, 2025 compared to $27.1 million for the six months ended June 30, 2024.

The decrease was primarily related to an increase in the payment of dividends and distributions, an decrease in borrowings from the Revolving Credit Facility, partially offset by an increase in net proceeds received from issuance of shares.

Liquidity and Capital Resources

We had approximately $0.6 million of cash and $0.9 million of escrows and reserves as of March 31, 2025.

We had approximately $1.1 million of cash and $1.0 million of escrows and reserves as of June 30, 2025.

Revolving Credit Facility and Term Loans

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On July 24, 2023, we entered into the Second Amendment and further exercised $35.0 million of accordion under the Term Loans.

On October 25, 2024, we entered into the Third Amendment and increased our commitments on the 2022 Term Loan and further

exercised $50.0 million.

As of March 31, 2025, we had $274.0 million of aggregate principal amount outstanding under our Credit Facilities, with $75.0 million drawn on the 2021 Term Loan, $175.0 million drawn on the 2022 Term Loan and $24.0 million drawn on the Revolving Credit Facility.

On October 25, 2024, we entered into the Third Amendment and increased our commitments on the 2022 Term Loan and further exercised $50.0 million.

As of June 30, 2025, we had $296.0 million of aggregate principal amount outstanding under our Credit Facilities, with $75.0 million drawn on the 2021 Term Loan, $175.0 million drawn on the 2022 Term Loan and $46.0 million drawn on the Revolving Credit Facility.

The Credit Facilities include an accordion feature which permit us to borrow up to an additional (i) $150.0 million under the Revolving Credit Facility and (ii) $50.0 million under the Term Loans, subject to customary terms and conditions.

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The Credit Facilities also contain certain customary events of default, including the failure to make timely payments under the Credit Facilities, any event or condition that makes other material indebtedness due prior to its scheduled maturity, the failure to satisfy certain covenants and specified events of bankruptcy and insolvency.

As of March 31, 2025, we were in compliance with all of the Credit Facilities’ debt covenants.

As of March 31, 2025, we had nine interest rate swaps with a total notional amount of $250.0 million that are used to manage our interest rate risk and fix the SOFR component on the Term Loans of the Credit Facilities (together, the "Interest Rate Swaps").

As of June 30, 2025, we were in compliance with all of the Credit Facilities’ debt covenants.

As of June 30, 2025, we had nine interest rate swaps with a total notional amount of $250.0 million that are used to manage our interest rate risk and fix the SOFR component on the Term Loans of the Credit Facilities (together, the "Interest Rate Swaps").

Derivatives and Hedging Activities in the Notes to our unaudited Consolidated Financial Statements included under Item 1 herein for further details regarding the Interest Rate Swaps.

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If we do not have sufficient funds available to us from our operations to fund our business needs, we will need to find alternative ways to fund those needs.

Such alternatives may include, among other things, divesting ourselves of properties (whether or not the sales price is optimal or otherwise meets our strategic long-term objectives), incurring indebtedness or issuing equity securities in public or private transactions, the availability and attractiveness of the terms of which cannot be assured.

Such alternatives may include, among other things, divesting ourselves of properties (whether or not the sales price is optimal or otherwise meets our strategic long-term objectives), incurring

indebtedness or issuing equity securities in public or private transactions, the availability and attractiveness of the terms of which cannot be assured.

Material Capital Improvement Projects

The Company is currently undertaking capital improvement projects for two properties it owns in Pauline, Kansas (the "Pauline CIP”).

The Pauline CIP is expected to cost an additional $1.6 million to $2.3 million, a majority of which is expected to be incurred in the third and fourth quarters of 2025.

Currently, the Company expects that a portion of the costs associated with the Pauline CIP will be offset by the receipt of insurance proceeds.

Consolidated Indebtedness

As of March 31, 2025, we had approximately $308.2 million of outstanding consolidated principal indebtedness.

The following table sets forth information as of March 31, 2025 with respect to our outstanding indebtedness (in thousands):

Balance as of March 31, 2025

Rate at March 31, 2025

As of June 30, 2025, we had approximately $330.2 million of outstanding consolidated principal indebtedness.

The following table sets forth information as of June 30, 2025 with respect to our outstanding indebtedness (in thousands):

Balance as of June 30, 2025

Rate at June 30, 2025

Revolving Credit Facility (1)(2)

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(1) See above under "— Revolving Credit Facility and Term Loans " for details regarding the Credit Facilities.

During the three months ended March 31, 2025, we incurred $0.06 million of unused facility fees related to the Revolving Credit Facility, respectively.

During the three and six months ended June 30, 2025, we incurred $0.05 million and $0.1 million of unused facility fees related to the Revolving Credit Facility, respectively.

(2) The Revolving Credit Facility matures in January 2026, which may be extended for two six-month periods.

The Company is currently exploring various refinancing options (the "Refinancing") and believes that it will be successful in extending or Refinancing the Revolving Credit Facility.

(3) Based upon the applicable SOFR rate plus a SOFR adjustment of 0.10%, subject to a 0% floor (the “Adjusted Term SOFR”) .

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(6) The loan is collateralized by first mortgage liens on one property and a personal guarantee of payment by Mr.

The loan has a fixed interest rate of 3.69% for the first five years with interest payments only (ending in October 2026), then adjusting every subsequent five-year period thereafter with principal and interest payments to the rate based on the Five-Year Treasury Rate, plus a margin of 2.75%, with a minimum annual rate of 2.75%.

The loan has a fixed interest rate of 3.69% for the first five years with interest payments only (ending in October 2026),

then adjusting every subsequent five-year period thereafter with principal and interest payments to the rate based on the Five-Year Treasury Rate, plus a margin of 2.75%, with a minimum annual rate of 2.75%.

(7) The loan is secured by a first mortgage lien on an industrial property located in Warrendale, Pennsylvania.

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(8) In connection with the acquisition of two properties, the Company obtained seller financing secured by the properties in the amount of $1.4 million based on a fixed interest rate of 5.00% with interest-only payments through September 1, 2039.

Secured Borrowings as of March 31, 2025

As of March 31, 2025, we had approximately $34.2 million of secured borrowings outstanding, all of which are currently fixed-rate debt with a weighted average interest rate of 2.96% per annum.

Secured Borrowings as of June 30, 2025

As of June 30, 2025, we had approximately $34.2 million of secured borrowings outstanding, all of which are currently fixed-rate debt with a weighted average interest rate of 2.96% per annum.

To maintain our qualification as a REIT, we are required to pay dividends to stockholders at least equal to 90% of our REIT taxable income determined without regard to the deduction for dividends paid and excluding net capital gains.

During the three months ended March 31, 2025, we paid cash dividends of $0.2425 per share.

Our Board of Directors approved, and o n April 21, 2025 , we declared a first quarter 2025 common stock dividend of $0.2425 per share, which will be paid on May 30, 2025 to stockholders of record as of May 1, 2025.

During the three and six months ended June 30, 2025, we paid cash dividends of $0.2425 per share, and $0.485 per share, respectively.

Our Board of Directors approved, and o n July 20, 2025 , we declared a second quarter 2025 common stock dividend of $0.2425 per share, which will be paid on August 29, 2025 to stockholders of record as of July 31, 2025.

Because most of our leases provide for fixed annual rental payments without annual rent escalations, our rental revenues are fixed while our property operating expenses are subject to inflationary increases.

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Repurchases of our Class A common stock conducted under the Share Repurchase Program may be made through open market transactions, block trades or other methods designed to comply with Rule 10b-18 of the Exchange Act.

No shares of our Class A common stock were repurchased pursuant to the Share Repurchase Program from the SRP Date to the period ended March 31, 2025 and the dollar value of Class A common stock shares that remains available to be repurchased under the Share Repurchase Program is $25.0 million.

No shares of our Class A common stock were repurchased pursuant to the Share Repurchase Program for the three months ended June 30, 2025 and the dollar value of Class A common stock shares that remains available to be repurchased under the Share Repurchase Program is $25.0 million.

The Share Repurchase Program does not obligate us to repurchase any specific dollar amount, or to acquire any specific number, of shares of our Class A common stock and may be suspended or discontinued at any time at the discretion of the Board of Directors.

Subsequent Real Estate Acquisitions

As of April 30, 2025 and d uring the period s ubsequent to March 31, 2025, we have acquired 25 properties in individual or portfolio transactions for an aggregate of approximately $12.7 million, excluding closing costs.

As of August 4, 2025 and d uring the period s ubsequent to June 30, 2025, we have acquired 23 properties in individual or portfolio transactions for an aggregate of approximately $8.4 million, excluding closing costs.

Critical Accounting Estimates

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis