What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-04 compared with 2026-05-05 · 127 added, 84 removed, 218 unchanged (49% of the section changed)

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• the outcome of claims and litigation involving or affecting us;

• changes in real estate, taxation, zoning laws and other legislation and government activity and changes to real property tax rates and the taxation of real estate investment trusts (“REITs”) in general;

• changes in real estate, taxation, zoning laws and other legislation and government activity and changes to real property tax rates and the taxation of real estate investment trusts for U.S.

federal income tax purposes (“REITs”) in general;

• operations through joint ventures and reliance on or disputes with co-venturers;

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We were formed as a Maryland corporation on November 19, 2018 and commenced operations upon completion of our initial public offering and the related formation transactions.

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, 2026, we acquired 61 properties leased to

the USPS for approximately $35.6 million, including closing costs.

As of March 31, 2026, our portfolio consists of 1,978 owned properties, located in 49 states and one territory and comprising approximately 7.3 million net leasable interior square feet.

We conduct our business through an umbrella partnership, commonly referred to as an 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 six months ended June 30, 2026, we acquired 98 properties leased primarily to the USPS for approximately $82.2 million, including closing costs.

As of June 30, 2026, our portfolio consists of 2,014 owned properties, located in 49 states and one territory and comprising approximately 7.5 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 May 5, 2026, we owned approximately 78.9% 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, 2026, we owned approximately 80.4% 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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Morgan and ScotiaBank, we may also enter into one or more forward sale agreements under a master forward confirmation and related supplemental confirmations, each between us and JPMorgan Chase Bank, National Association and The Bank of Nova Scotia.

During the three months ended March 31, 2026, 512,421 shares were issued under the ATM Program for approximately $8.6 million in gross proceeds.

As of March 31, 2026, we had approximately $135.5 million of availability remaining under the ATM Program.

During the six months ended June 30, 2026, 3,154,725 shares were issued under the ATM Program for approximately $59.2 million in gross proceeds.

As of June 30, 2026, we had approximately $97.0 million of availability remaining under the ATM Program.

Executive Overview

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Geographic Concentration

As of March 31, 2026, we owned a portfolio of 1,978 properties located in 49 states and one territory and leased primarily to the USPS.

As of June 30, 2026, we owned a portfolio of 2,014 properties located in 49 states and one territory and leased primarily to the USPS.

Registrant Elections

We are a “smaller reporting company” as defined in Regulation S-K under the Securities Act and have elected to take advantage of certain scaled disclosures available to smaller reporting companies.

We have also elected to be treated as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), beginning with our short taxable year ended December 31, 2019 and intend to continue to qualify as a REIT.

As of June 30, 2026, the aggregate market value of our voting and non-voting common equity held by non-affiliates exceeded $700 million.

However, because we were eligible to use the scaled disclosure requirements for smaller reporting companies under the revenue test in Exchange Act Rule 12b-2 for the fiscal year ending December 31, 2026, we do not meet the definition of an accelerated filer or large accelerated filer as of December 31, 2026.

Accordingly, we expect to (i) no longer qualify as a "smaller reporting company" beginning with our Quarterly Report on Form 10-Q for the quarter ended March 31, 2027, (ii) remain a "non-accelerated filer" for filings due during fiscal year 2027 and (iii) not provide an auditor attestation report on our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act until our Annual Report on Form 10-K for the fiscal year ending December 31, 2027.

We have also elected to qualify to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), beginning with our short taxable year ended December 31, 2019 and intend to continue to qualify as a REIT.

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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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, 2025.

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.

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.

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, 2026, properties leased to our tenants had an average remaining lease term of approximately 5.0 years.

As of June 30, 2026, properties leased to our tenants had an average remaining lease term of approximately 5.1 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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We lease our properties primarily to the USPS.

The majority of our leases are modified double-net leases, whereby the tenant is responsible for utilities, certain maintenance obligations and reimbursement of property taxes and the landlord is

generally responsible for insurance, roof and structure.

The majority of our leases are modified double-net leases, whereby the tenant is responsible for utilities, certain maintenance obligations and reimbursement of property taxes and the landlord is generally responsible for insurance, roof and structure.

Thus, an increase in costs related to the landlord’s responsibilities under these leases could negatively influence our operating results.

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Equity-Based Compensation Expense

All equity-based compensation expense is recognized in our Consolidated Statements of Operations and Comprehensive Income (Loss) 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.

Indebtedness and Interest Expense

Our Amended and Restated Credit Agreement, as amended from-time-time, including by the Commitment Increase, dated February 20, 2026 (as amended, the "Credit Facilities"), consists of a (i) $250.0 million senior unsecured revolving credit facility (the "Revolving Credit Facility") and (ii) $305.0 million term loan facility consisting of a (x) $115.0 million senior unsecured term loan (the "2030 Term Loan") and (y) $190.0 million senior unsecured delayed draw term loan (the "2028 Term Loan," and, collectively with the "2030 Term Loan", the "Term Loans").

Our First Amended and Restated Credit Agreement, dated September 19, 2025 (as amended from time-to-time, including by the Commitment Increase, dated February 20, 2026, the "First A&R Credit Facilities"), which was subsequently amended and restated in their entirety by our Second Amended and Restated Credit Agreement, dated July 2, 2026 (the "Second A&R Credit Facilities, " and, collectively with the "First A&R Credit Facilities," the "Credit Facilities"), consists of a (i) $275.0 million senior unsecured revolving credit facility (the "Revolving Credit Facility") and (ii) $340.0 million term loan facility consisting of a (a) $90.0 million senior unsecured term loan facility (the "2028 Recasted Term Loan"), (b) $100.0 million senior unsecured term loan facility (the "2029 Term Loan") and (c) $150.0 million senior unsecured term loan (the "2031 Term Loan," and, collectively with the "2028 Recasted Term Loan" and the "2029 Term Loan," the "Term Loans").

We intend to use the Credit Facilities for working capital purposes, which may include repayment of mortgage indebtedness, property acquisitions and other general corporate purposes.

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If we fail to qualify for taxation as a REIT in any taxable year and do not qualify for certain statutory relief provisions, our income for that year will be taxed at regular corporate rates, and we would be disqualified from taxation as a REIT for the four taxable years following the year during which we ceased to qualify as a REIT.

Even though we qualify as a REIT for federal income tax purposes, we may still be subject to state and local taxes on our income and assets and to federal income and excise taxes on our undistributed income.

Additionally, any income

earned by our existing TRS and any other TRS we may form in the future will be subject to federal, state and local corporate income tax.

Even though we qualify to be taxed as a REIT for federal income tax purposes, we may still be subject to state and local taxes on our income and assets and to federal income and excise taxes on our undistributed income.

Additionally, any income earned by our existing TRS and any other TRS we may form in the future will be subject to federal, state and local corporate income tax.

Lease Renewal

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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 May 5, 2026, seven of the properties we own were being occupied by the USPS as a holdover tenant.

As of August 4, 2026, 17 leases at 16 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.

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Results of Operations

Comparison of the Three Months Ended March 31, 2026 and the Three Months Ended March 31, 2025

Comparison of the Three Months Ended June 30, 2026 and the Three Months Ended June 30, 2025

For the Three Months Ended

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General and administrative 4,716 4,316 400 9.3 %

Casualty and impairment (gains) losses, net (263) 150 (413) (275.3) %

Casualty and impairment losses (gains), net 89 (345) 434 (125.8) %

Depreciation and amortization 6,728 5,914 814 13.8 %

Total operating expenses 17,326 14,642 2,684 18.3 %

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

Gain on sale of real estate assets 30 — 30 N/A

Income from operations 11,286 8,709 2,577 29.6 %

Other income — 30 (30) (100.0) %

Interest expense, net

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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 $4.6 million to $26.1 million for the three months ended March 31, 2026 from $21.5 million for the three months ended March 31, 2025, 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 $0.53 million for the three months ended March 31, 2026 from $0.67 million for the three months ended March 31, 2025, primarily due to a decrease in miscellaneous income.

Rental income increased by $5.3 million to $28.0 million for the three months ended June 30, 2026

from $22.7 million for the three months ended June 30, 2025, 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 $0.06 million to $0.56 million for the three months ended June 30, 2026 from $0.62 million for the three months ended June 30, 2025, primarily due to a decrease in professional services income.

Operating Expenses

Real estate taxes – Real estate taxes increased by $0.4 million to $3.07 million for the three months ended March 31, 2026 from $2.65 million for the three months ended March 31, 2025, primarily due to the volume of our acquisitions.

Property operating expenses – Property operating expenses increased by $0.4 million to $2.82 million for the three months ended March 31, 2026 from $2.46 million for the three months ended March 31, 2025.

Property management expenses are included within property operating expenses and totaled $1.0 million for each of the three months ended March 31, 2026 and 2025.

The increase was primarily related to higher costs pertaining to outsourced - property management.

General and administrative – General and administrative expenses increased by $0.5 million to $5.4 million for the three months ended March 31, 2026 from $4.9 million for the three months ended March 31, 2025, primarily due to an increase in net compensation costs and public-company related costs.

Casualty and impairment (gains) losses, net - Casualty and impairment (gains) losses, net for the three months ended March 31, 2026 was $(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 and other costs.

This is partially offset by an estimated $0.4 million of related insurance claims resulting in a net gain of $(0.3) million and an immaterial impairment on a held for use property.

Casualty and impairment losses (gains), net were $0.2 million for the three months ended March 31, 2025 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.

Depreciation and amortization – Depreciation and amortization expense increased by $0.8 million to $6.4 million for the three months ended March 31, 2026 from $5.6 million for three months ended March 31, 2025, primarily due to the volume of our acquisitions.

Real estate taxes – Real estate taxes increased by $0.4 million to $3.2 million for the three months ended June 30, 2026 from $2.8 million for the three months ended June 30, 2025, primarily due to the volume of our acquisitions.

Property operating expenses – Property operating expenses increased by $0.6 million to $2.6 million for the three months ended June 30, 2026 from $2.0 million for the three months ended June 30, 2025.

Property management expenses are included within property operating expenses and totaled $0.7 million and $0.6 million, respectively, for the three months ended June 30, 2026 and 2025.

The increase was primarily related to higher costs pertaining to offshore property management support.

General and administrative – General and administrative expenses increased by $0.4 million to $4.7 million for the three months ended June 30, 2026 from $4.3 million for the three months ended June 30, 2025, primarily due to an increase in net compensation costs and public-company related costs.

Casualty and impairment losses (gains), net - Casualty and impairment losses for the three months ended June 30, 2026 was $0.1 million which reflects $0.12 million in gross charges primarily related to the net book value of several properties damaged as a result of natural disasters and related repairs and other costs.

This is partially offset by $0.1 million of related insurance claims resulting in a loss of $0.02 million and $0.1 million for an impairment on an asset that was reclassified to Assets Held for Sale.

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.

Depreciation and amortization – Depreciation and amortization expense increased by $0.8 million to $6.7 million for the three months ended June 30, 2026 from $5.9 million for three months ended June 30, 2025, primarily due to the volume of our acquisitions.

Total Interest Expense, Net

During the three months ended March 31, 2026, we incurred total interest expense, net of $4.4 million compared to $3.6 million for the three months ended March 31, 2025.

During the three months ended June 30, 2026, we incurred total interest expense, net of $4.9 million compared to $4.0 million for the three months ended June 30, 2025.

The increase in interest expense was primarily due to an increase in net borrowings on our Credit Facilities (including the $40.0 million and $15.0 million of term loan proceeds borrowed on September 19, 2025 and February 20, 2026, respectively).

Comparison of the Three Months Ended March 31, 2026 and the Three Months Ended March 31, 2025

We had $1.3 million of cash and $1.5 million of escrows and reserves as of March 31, 2026 compared to $0.6 million of cash and $0.9 million of escrows and reserves as of March 31, 2025.

Cash flows from operating activities – Net cash provided by operating activities increased by $0.1 million to $10.9 million for the three months ended March 31, 2026 compared to $10.8 million for the same period in 2025.

Comparison of the Six Months Ended June 30, 2026 and Six Months Ended June 30, 2025

For the Six Months Ended

2026 2025 $ Change % Change

Rental income $ 54,136 $ 44,210 $ 9,926 22.5 %

Fee and other 1,094 1,291 (197) (15.3) %

Total revenues 55,230 45,501 9,729 21.4 %

Operating expenses

Real estate taxes 6,271 5,422 849 15.7 %

Property operating expenses 5,407 4,445 962 21.6 %

General and administrative 10,103 9,252 851 9.2 %

Casualty and impairment (losses) gains, net (174) (195) 21 (10.8) %

Depreciation and amortization 13,130 11,538 1,592 13.8 %

Total operating expenses 34,737 30,462 4,275 14.0 %

Gain (loss) on sale of real estate assets 30 (49) 79 N/A

Income from operations 20,523 14,990 5,533 36.9 %

Other income — 30 (30) (100.0) %

Interest expense, net

Contractual interest expense (8,702) (7,254) (1,448) 20.0 %

Write-off and amortization of deferred financing fees (531) (422) (109) 25.8 %

Interest income — 7 (7) (100.0) %

Total interest expense, net (9,233) (7,669) (1,564) 20.4 %

Income before income tax expense 11,290 7,351 3,939 53.6 %

Income tax expense (49) (24) (25) 104.2 %

Net income 11,241 7,327 $ 3,914 53.4 %

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 $9.9 million to $54.1 million for the six months ended June 30, 2026 from $44.2 million for the six months ended June 30, 2025, 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 $0.2 million to $1.1 million for the six months ended June 30, 2026 from $1.3 million for the six months ended June 30, 2025, primarily due to a decrease in management fee income and professional service income.

Operating Expense

Real estate taxes – Real estate taxes increased by $0.8 million to $6.3 million for the six months ended June 30, 2026 from $5.4 million for the six months ended June 30, 2025, primarily due to the volume of our acquisitions.

Property operating expenses – Property operating expenses increased by $1.0 million to $5.4 million for the six months ended June 30, 2026 from $4.4 million for the six months ended June 30, 2025.

Property management expenses are

included within property operating expenses and totaled $1.7 million and $1.6 million for the six months ended June 30, 2026 and 2025.

The increase was primarily related to higher costs pertaining to offshore property management support.

General and administrative – General and administrative expenses increased by $0.9 million to $10.1 million for the six months ended June 30, 2026 from $9.3 million for the six months ended June 30, 2025, primarily due to an increase in net compensation costs and public-company related costs.

Casualty and impairment (losses) gains, net - Casualty and impairment gains for the six months ended June 30, 2026 were $0.2 million which reflects $0.2 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 $0.5 million of related insurance claims resulting in a net gain of $0.3 million.

In addition, this is offset by an impairment of $0.1 million on an asset that was reclassified to Assets Held for Sale.

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.

In addition, this is offset by an impairment of $0.2 million on an asset that was reclassified to Assets Held for Sale.

Depreciation and amortization – Depreciation and amortization expense increased by $1.6 million to $13.1 million for the six months ended June 30, 2026 from $11.5 million for the six months ended June 30, 2025, primarily due to the volume of our acquisitions.

Total Interest Expense, Net

During the six months ended June 30, 2026, we incurred total interest expense, net of $9.2 million compared to $7.7 million for the six months ended June 30, 2025.

Comparison of the Six Months Ended June 30, 2026 and the Six Months Ended June 30, 2025

We had $1.8 million of cash and $1.0 million of escrows and reserves as of June 30, 2026 compared to $1.1 million of cash and $1.0 million of escrows and reserves as of June 30, 2025.

Cash flows from operating activities – Net cash provided by operating activities increased by $2.8 million to $25.0 million for the six months ended June 30, 2026 compared to $22.2 million for the same period in 2025.

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, 2026 primarily consisted of $34.6 million of acquisitions and $1.4 million of escrow deposits for acquisitions, capital improvements and other investing activities offset by $0.2 million in insurance proceeds received from property damage claims.

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.

Cash flows from financing activities – Net cash provided by financing activities increased by $21.6 million to $25.6 million for the three months ended March 31, 2026 compared to $4.0 million for the three months ended March 31, 2025.

The increase was primarily related to an increase in borrowings on our Credit Facilities of $15.0 million and higher net proceeds received from the issuance of shares.

This is offset by debt issuance costs on our Credit Facility, an increase in the payment of taxes on equity award vestings and an increase in the payment of dividends and distributions for the three months ended March 31, 2026.

Cash flows used in investing activities – Net cash used in investing activities for the six months ended June 30, 2026 primarily consisted of $81.1 million of acquisitions and $2.3 million of escrow deposits for acquisitions, capital improvements and other investing activities offset by $0.2 million in proceeds received from the sale of real estate assets and property damage related insurance claims.

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 related insurance claims.

Cash flows from financing activities – Net cash provided by financing activities increased by $32.8 million to $58.9 million for the six months ended June 30, 2026 compared to $26.0 million for the six months ended June 30, 2025.

The increase was primarily related to higher net proceeds received from the issuance of shares offset by a decrease in borrowings on our Credit Facilities, additional debt issuance costs on our Credit Facility, an increase in tax withholdings on equity award vestings and an increase in the payment of dividends and distributions for the six months ended June 30, 2026.

Liquidity and Capital Resources

We had approximately $1.3 million of cash and $1.5 million of escrows and reserves as of March 31, 2026 compared to $0.6 million of cash and $0.9 million of escrows and reserves as of March 31, 2025.

We had approximately $1.8 million of cash and $1.0 million of escrows and reserves as of June 30, 2026 compared to $1.1 million of cash and $1.0 million of escrows and reserves as of June 30, 2025.

Revolving Credit Facility and Term Loans

On September 19, 2025 (the "CF Closing Date"), we amended and restated our Credit Facilities in their entirety, with Truist Bank, as administrative agent, and Truist Securities, M&T Bank and JPMorgan Chase Bank, N.A., as joint lead arrangers and joint book runners.

Additional participants in the Credit Facilities include Mizuho Bank Ltd., Bank of Montreal, Stifel Bank & Trust and TriState Capital Bank.

On February 20, 2026, the Company entered into the Commitment Amount Increase Request (the "Commitment Increase") pursuant to which, among other things, The Bank of Nova Scotia was added as a lender under the Credit Facilities.

The Credit Facilities provide for the Revolving Credit Facility and Term Loans.

After giving effect to the Commitment Increase our Credit Facilities consists of a (i) $250.0 million senior unsecured revolving credit facility (the "Revolving Credit Facility") and (ii) $305.0 million term loan facility consisting of a (x) $115.0 million senior unsecured term loan (the "2030 Term Loan") and (y) $190.0 million senior unsecured delayed draw term loan (the "2028 Term Loan," and, collectively with the "2030 Term Loan", the "Term Loans.").

As of March 31, 2026, we had $354.0 million of aggregate principal amount outstanding under our Credit Facilities, with $115.0 million drawn on the 2030 Term Loan, $190.0 million drawn on the 2028 Term Loan and $49.0 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) $100.0 million under the Term Loans, subject to customary terms and conditions.

As of March 31, 2026, and after giving effect to the Commitment Increase, (1) $50.0 million remains under the Revolving Credit Facility accordion and (2) $85.0 million remains under the accordion for the Term Loans.

The Revolving Credit Facility matures in November 2029, the 2030 Term Loan matures in January 2030 and the 2028 Term Loan matures in February 2028.

Each of the Revolving Credit Facility and the 2030 Term Loan Facility may be extended for one twelve-month period at the Company's sole option.

Borrowings under the Credit Facilities carry an interest rate of, (i) in the case of the Revolving Credit Facility, either a base rate plus a margin ranging from 0.5% to 1.0% per annum or Adjusted Term SOFR (as defined below) plus a margin ranging from 1.5% to 2.0% per annum, or (ii) in the case of the Term Loans, either a base rate plus a margin ranging from 0.45% to 0.95% per annum or Adjusted Term SOFR plus a margin ranging from 1.45% to 1.95% per annum, in each case depending on a consolidated leverage ratio.

With respect to the Revolving Credit Facility, the Company will pay, if the usage is equal to or less than 50%, an unused facility fee of 0.20% per annum, or if the usage is greater than 50%, an unused facility fee of 0.15% per annum, in each case on the average daily unused commitments under the Revolving Credit Facility.

The Credit Facilities contain a number of customary financial and non-financial covenants

The Credit Facilities are guaranteed, jointly and severally, by us and certain of our indirect subsidiaries and contain customary covenants that, among other things, restrict, subject to certain exceptions, our ability to incur indebtedness, grant liens on assets, make certain types of investments, engage in acquisitions, mergers or consolidations, sell assets, enter into certain transactions with affiliates and pay dividends or make distributions.

The Credit Facilities require compliance with consolidated financial maintenance covenants to be tested quarterly, including a minimum fixed charge coverage ratio, maximum total leverage ratio, minimum tangible net worth, maximum secured leverage ratio, maximum unsecured leverage ratio, minimum unsecured debt service coverage ratio and maximum secured recourse leverage ratio.

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, 2026, we were in compliance with all of the Credit Facilities’ debt covenants.

As of March 31, 2026, we had eleven interest rate swaps with a total notional amount of $290.0 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").

On July 2, 2026, we entered into the Second A&R Credit Facilities, which amended and restated our First A&R Credit Facilities in their entirety, with Truist Bank, as administrative agent, and Truist Securities, M&T Bank and JPMorgan Chase Bank, N.A., The Bank of Nova Scotia and Mizuho Bank Ltd.

as joint lead arrangers and joint book runners.

Stifel Bank & Trust also participated in the Second A&R Credit Facilities.

The Second A&R Credit Facilities provide for a Revolving Credit Facility and Term Loans.

After giving effect to the Second A&R Credit Agreement, our Credit Facilities consists of a (i) $275.0 million senior unsecured revolving credit facility (the “Revolving Credit Facility”), and (ii) $340.0 million of term loan facilities (the "Term Loan Facilities," and, collectively with the Revolving Facility, the "Second A&R Credit Facilities").

The Term Loan Facilities consists of a (a) $90.0 million senior unsecured term loan facility (the "2028 Recasted Term Loan"), all of which was previously advanced to the Company under the First A&R Credit Facilities and remains outstanding under the Second A&R Credit Agreement as of the Closing Date, (b) $100.0 million senior unsecured term loan facility (the "2029 Term Loan"), all of which was previously advanced to the Company under the First A&R Credit Facilities and remains outstanding under the Second A&R Credit Agreement as of the Closing Date and (c) $150.0 million senior unsecured term loan (the "2031 Term Loan") consisting of (1) a $115.0 million term loan previously advanced to the Company under the First A&R Credit Facilities and which remains outstanding as of the Closing Date and (2) $35.0 million of new term loans advanced to the Company on the Closing Date.

The Second A&R Credit Facilities also provide that, subject to customary conditions, including obtaining lender commitments and compliance with its financial maintenance covenants under the Second A&R Credit Facilities, the Operating Partnership may seek to increase the lending commitments under the Second A&R Credit Facilities by up to $175 million, in the case of the Revolving Credit Facility, and up to $160 million, in the case of the Term Loan Facilities or one or more new term loan facilities.

As of June 30, 2026, and prior to giving effect to the Second A&R Credit Agreement, we had $350.0 million of aggregate principal amount outstanding under our First A&R Credit Facilities, with $115.0 million drawn on the 2030 Term Loan, $190.0 million drawn on the 2028 Term Loan and $45.0 million drawn on the Revolving Credit Facility.

As of June 30, 2026, we were in compliance with all of the Credit Facilities’ debt covenants.

Please see Note 13 Subsequent Events in the Notes to our unaudited Consolidated Financial Statements included under Item 1 herein for an update on the amounts outstanding under our Second A&R Credit Facilities as of August 4, 2026.

After giving effect to the Second A&R Credit Facilities, the Revolving Credit Facility has a maturity date of November 15, 2030, the 2028 Recasted Term Loan has a maturity date of February 11, 2028, the 2029 Term Loan has a maturity date of February 11, 2029 and the 2031 Term Loan has a maturity date of January 15, 2031.

Each of the Revolving Credit Facility and the 2031 Term Loan may be extended for one 12-month period at the Company's discretion.

The Company may elect at any time and from time to time to prepay all or any portion of the loans under the Second A&R Credit Facilities prior to maturity without premium or penalty, subject to payment of usual and customary breakage costs.

Furthermore, after giving effect to the Second A&R Credit Facilities, the interest rates applicable to loans under the Second A&R Credit Facilities are, at the Company's option, equal to (i) in the case of the Revolving Credit Facility, either a base rate plus a margin ranging from 0.15% to 0.55% per annum or SOFR plus a margin ranging from 1.15% to 1.55% per annum and (ii) in the case of the Term Loan Facility, either a base rate plus a margin ranging from 0.10% to 0.50% per annum or SOFR plus a margin ranging from 1.10% to 1.50% per annum, in each case based on the Company’s consolidated leverage ratio.

SOFR, as defined in the Credit Agreement, cannot be less than 0.00% at any time.

In addition, with respect to the Revolving Credit Facility, the Company will pay, if the usage of the Revolving Credit Facility is equal to or less than 50% thereof, an unused facility fee of 0.20% per annum, or if the usage of the Revolving Credit Facility is greater than 50% thereof, an unused facility fee of 0.15% per annum, in each case on the average daily unused commitments under the Revolving Credit Facility.

The Second A&R Credit Facilities contain a number of customary financial and non-financial covenants

The Second A&R Credit Facilities are guaranteed, jointly and severally, by the Company and certain indirect subsidiaries of the Company.

The Second A&R Credit Facilities contains customary covenants that, among other things, restrict, subject to certain exceptions, the ability of the Company, the Operating Partnership and certain indirect subsidiaries of the Company to incur indebtedness, grant liens on their assets, make certain types of investments, engage in acquisitions, mergers or consolidations, sell assets, enter into certain transactions with affiliates and pay dividends or make distributions.

The Second A&R Credit Facilities also requires the Company to comply with consolidated financial maintenance covenants to be tested quarterly, including a minimum fixed charge coverage ratio, maximum total leverage ratio, minimum tangible net worth, maximum secured leverage ratio, maximum unsecured leverage ratio and minimum unsecured debt service coverage ratio.

The Second A&R Credit Facilities also contains customary events of default, including the failure to make timely payments under the Second A&R 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.

The occurrence of an event of default under the Second A&R Credit Facilities may result in all loans and other obligations becoming immediately due and payable and the Second A&R Credit Facilities being terminated and allow the lenders to exercise all rights and remedies available to them.

As of June 30, 2026, we had eleven interest rate swaps with a total notional amount of $290.0 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").

On July 2, 2026, we entered into an additional four swaps with a total notional amount of $250.0 million to manage our interest rate risk and fix the SOFR component on the Term Loans of the Credit Facilities.

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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Consolidated Indebtedness

As of March 31, 2026, we had approximately $388.0 million of outstanding consolidated principal indebtedness.

The following table sets forth information as of March 31, 2026 with respect to our outstanding indebtedness (in thousands):

Balance as of March 31, 2026

Rate at March 31, 2026

As of June 30, 2026, we had approximately $383.9 million of outstanding consolidated principal indebtedness.

The following table sets forth information as of June 30, 2026 with respect to our outstanding indebtedness (in thousands):

Balance as of June 30, 2026

Rate at June 30, 2026

Revolving Credit Facility (1)

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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, 2026, we incurred $0.08 million of unused facility fees related to the Revolving Credit Facility.

(2) The Revolving Credit Facility matures in November 2029 and the 2030 Term Loan matures in January 2030, each of which may be extended for one twelve-month period at the Company's sole option.

During the three and six months ended June 30, 2026, we incurred $0.09 million and $0.2 million of unused facility fees related to the Revolving Credit Facility.

(2) Based upon the applicable SOFR rate (subject to a 0% floor).

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(7) 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, 2026

As of March 31, 2026, we had approximately $34.0 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, 2026

As of June 30, 2026, we had approximately $33.9 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, 2026, we paid cash dividends of $0.2450 per share.

Our Board of Directors approved, and o n May 5, 2026 , we declared, a first quarter 2026 common stock dividend of $0.2450 per share, which will be paid on May 29, 2026 to stockholders of record as of May 15, 2026.

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.

A majority of our leases provide for tenant reimbursement of real estate taxes and thus the tenant must reimburse us for real estate taxes.

We believe that if inflation increases expenses over time, increases in lease renewal rates will materially offset such increase.

During the three and six months ended June 30, 2026, we paid cash dividends of $0.245 per share and $0.49 per share, respectively.

Our Board of Directors approved, and o n August 3, 2026 , we declared, a second quarter 2026 common stock dividend of $0.245 per share, which will be paid on August 28, 2026 to stockholders of record as of August 14, 2026.

While our property operating expenses are subject to inflationary increases, over half our leases provide for various periodic rent escalations.

In addition, a majority of our leases provide for tenant reimbursement of real estate taxes and thus the tenant must reimburse us for real estate taxes.

We believe that if inflation increases expenses over time, increases in lease renewal rates, coupled with our periodic rent escalations, will materially offset such increase.

Share Repurchase Program

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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 for the three months ended March 31, 2026 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, 2026 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 May 5, 2026 and d uring the period s ubsequent to March 31, 2026, we have acquired 10 properties in individual or portfolio transactions for an aggregate of approximately $9.5 million, excluding closing costs.

As of August 4, 2026 and d uring the period s ubsequent to June 30, 2026, we have acquired 34 properties in individual or portfolio transactions for an aggregate of approximately $7.9 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