What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2026-02-04 compared with 2025-02-05 · 140 added, 142 removed, 489 unchanged (37% of the section changed)

8 unchanged sentences

Infill locations are geographic locations surrounded by high concentrations of already developed land and existing buildings.

As of December 31, 2024, we owned a total of 299 buildings (including one building held for sale) aggregating approximately 19.3 million square feet, 47 improved land parcels consisting of approximately 150.6 acres, six properties under development or redevelopment and approximately 22.4 acres of land entitled for future development.

As of December 31, 2025, we owned a total of 309 buildings (including one building held for sale) aggregating approximately 19.8 million square feet, 46 improved land parcels consisting of approximately 147.0 acres and six properties under development or redevelopment.

As of December 31, 2025, our buildings and improved land parcels were approximately 96.1% and 95.4% leased, respectively, to 683 customers, the largest of which accounted for approximately 4.9% of our total annualized base rent.

28 unchanged sentences

Capital from such sales is reinvested into properties that are expected to provide better prospective returns or returned to shareholders.

We have disposed of 37 properties since inception in 2010 for an aggregate sales price of approximately $727.6 million and a total gain of approximately $332.3 million.

We have disposed of 45 properties since inception in 2010 for an aggregate sales price of approximately $1.1 billion and a total gain of approximately $570.7 million.

2025 Developments

Acquisition Activity

During 2024, we acquired eight industrial properties and one portfolio of industrial properties for a total purchase price of approximately $884.5 million.

The properties were acquired from unrelated third parties using existing cash on hand, net proceeds from dispositions, net proceeds from the issuance of common stock, debt, and net of an assumed mortgage loan payable.

During 2025, we acquired 12 industrial properties and one portfolio of industrial properties for a total purchase price of approximately $683.5 million.

The properties were acquired from unrelated third parties using existing cash on hand, net proceeds from dispositions, net proceeds from the issuance of common stock and debt.

The following table sets forth the industrial properties we acquired during 2025:

1 unchanged sentence

Buildings Square

Feet Purchase Price

Feet Improved Land Acreage Purchase Price

(in thousands) 1

13045 SE 32nd Street

Bellevue, WA January 5, 2024 1 16,000 $ 6,500 5.8 %

181 Lombardy Brooklyn, NY March 22, 2024 1 24,000 12,000 5.7 %

Fleet Alexandria, VA April 15, 2024 4 357,000 84,300 5.3 %

Multi-market portfolio of industrial properties 4

Various May 2, 2024 28 1,237,600 364,500 5.0 %

3000 V Street NE

Washington, D.C.

August 1, 2024 1 26,000 7,600 5.6 %

48-29 31st Pl Queens, NY December 5, 2024 1 17,000 7,600 5.7 %

280 Richards Street 3

Brooklyn, NY December 11, 2024 1 312,000 156,300 4.8 %

Doral Air Logistics Doral, FL December 27, 2024 3 495,000 195,600 4.6 %

49-15 Maspeth Avenue Queens, NY December 27, 2024 1 33,000 50,100 4.5 %

9660 153rd Avenue NE Redmond, WA April 9, 2025 1 33,000 — $ 9,300 5.5 %

43-27 33rd Street Long Island City, Queens, NY April 24, 2025 1 20,000 — 7,600 4.6 %

11100 Hindry Avenue Los Angeles, CA June 6, 2025 1 34,000 — 10,000 6.4 %

11-40 Borden Avenue Long Island City, Queens, NY June 18, 2025 1 36,000 — 16,000 3.9 %

3500 West MacArthur Boulevard Santa Ana, CA June 20, 2025 1 134,000 — 49,500 5.7 %

49-10 27th Street Long Island City, Queens, NY June 30, 2025 1 48,000 — 31,100 5.5 %

3700 & 3730 Redondo Beach Ave Redondo Beach, CA August 8, 2025 2 100,000 — 35,500 5.8 %

Multi-market portfolio

Various August 12, 2025;

September 9, 2025 12 1,200,000 — 426,900 5.0 %

258 Littlefield Ave South San Francisco, CA September 5, 2025 1 32,000 — 10,200 5.8 %

250 S Maple Avenue South San Francisco, CA October 15, 2025 1 18,000 — 5,600 6.3 %

4-28 33rd Street Long Island City, Queens, NY November 17, 2025 — — 0.5 4,700 6.4 %

2300 Craftsman Circle 3

Hyattsville, MD December 4, 2025 1 180,000 — 50,000 5.2 %

510 Andover Park West Tukwila, WA December 12, 2025 1 121,000 — 27,100 3.9 %

Total/Weighted Average 24 1,956,000 0.5 $ 683,500 5.1 %

1 Excludes intangible liabilities and unamortized mortgage fair value adjustments, if any.

The total aggregate initial investment was approximately $937.9 million, including $11.2 million in capitalized closing costs and acquisition costs and $49.5 million in assumed intangible liabilities, $3.7 million in assumed unamortized fair value adjustment and $3.6 million in other credits related to near term capital expenditures, free rent and tenant improvements at multiple properties.

The total aggregate initial investment was approximately $728.5 million, including $13.7 million in capitalized closing costs and acquisition costs and $32.9 million in assumed intangible liabilities and $1.6 million in other credits related to near term capital expenditures, free rent and tenant improvements at multiple properties.

2 Stabilized capitalization rates, referred to herein as stabilized cap rates, are calculated, at the time of acquisition, as annualized cash basis net operating income for the property stabilized to market occupancy (generally 95%) divided by the total acquisition cost for the property.

1 unchanged sentence

We define cash basis net operating income for the property as net operating income excluding straight-line rents and amortization of lease intangibles.

These stabilized cap rates are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates and those risk factors contained in this Annual Report on Form 10-K and in our other public filings.

3 280 Richards Street is encumbered by a mortgage loan payable with a total contractual principal amount of approximately $72.9 million which bears interest at a contractual fixed interest rate of 3.9% and matures in March 2028.

The mortgage was assumed in an acquisition and was recorded at fair value in the amount of $69.2 million using an effective interest rate of 5.6%.

The unamortized fair value adjustment as of December 31, 2024 was approximately $3.6 million.

4 Includes 28 properties, including 12 buildings located in New York City aggregating approximately 481,500 square feet, 6 buildings located in Northern New Jersey aggregating approximately 343,200 square feet, 3 buildings located in

the San Francisco Bay Area aggregating approximately 237,900 square feet and 7 buildings located in Los Angeles aggregating approximately 175,000 square feet.

These stabilized cap rates are subject to risks, uncertainties, and assumptions and are not guarantees of future performance,

which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates and those risk factors contained in this Annual Report on Form 10-K and in our other public filings.

3 Redevelopment of this property commenced upon acquisition.

Development and Redevelopment Activity

As of December 31, 2025, we had six properties under development or redevelopment that, upon completion, will consist of nine buildings aggregating approximately 1.2 million square feet.

Additionally, we owned approximately 22.4 acres of land entitled for future development that, upon completion, will consist of two buildings aggregating approximately 0.4 million square feet.

The following table summarizes certain information with respect to the properties under development or redevelopment and the land entitled for future development as of December 31, 2024:

The following table summarizes certain information with respect to the properties under development or redevelopment as of December 31, 2025:

Property Name Total Expected

Investment (in thousands) 1

(in thousands) 1

Amount Spent to Date (in thousands) 2

2 unchanged sentences

Stabilization

Quarter % Pre-leased December 31, 2024

Quarter % Pre-leased as of December 31, 2025

Properties under development or redevelopment:

3 unchanged sentences

Countyline Building 35 55,500 19,700 6.0 % 219,900 Q4 2027 — %

East Garry Avenue 41,000 32,300 5.1 % 91,500 Q1 2025 100.0 %

Paterson Plank III 35,200 34,200 3.8 % 47,300 Q2 2025 — %

Countyline Building 36 56,200 33,100 5.8 % 213,600 Q1 2027 100.0 %

Craftsman Circle

57,600 51,500 5.2 % 180,300 Q4 2027 — %

139th Street 5

1 unchanged sentence

Total/Weighted Average $ 372,500 $ 235,600 5.8 % 1,221,500 48.9 %

Land entitled for future development:

Countyline Phase IV 4

Countyline Phase IV Land $ 117,100 $ 38,100 6.0 % 433,200 2026-2027 n/a

Total $ 117,100 $ 38,100 6.0 % 433,200 n/a

1 Excludes below-market lease adjustments recorded at acquisition.

Total expected investment for the properties includes the initial purchase price, buyer’s due diligence and closing costs, estimated near-term redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization.

2 Excludes below-market lease adjustments recorded at acquisition.

2 Excludes below-market lease adjustments recorded at acquisition and infrastructure costs of approximately $1.1 million incurred for the Countyline Phase IV project.

3 Estimated stabilized cap rates are calculated as estimated annualized cash basis net operating income for the properties stabilized to market occupancy (generally 95%) divided by the total acquisition cost for the property.

7 unchanged sentences

The Company expects a total incremental investment of approximately $64.0 million.

During 2024, we completed development and redevelopment of six properties.

During 2025, we completed development and redevelopment of three properties.

Additionally, we moved the Paterson Plank III redevelopment property to the operating portfolio as it had been vacant for one year after completion.

The total expected investment in Paterson Plank III was $35.2 million.

The following table summarizes certain information with respect to the completed development and redevelopment properties during the year ended December 31, 2025:

Property Name Location Total

Property Name Location Total Expected

Investment (in

Stabilized Cap

Post-Development Square Feet Post-Development Acreage Completion Quarter

Countyline Building 31 Hialeah, FL $ 42,100 6.0 % 161,787 — Q4 2024

Countyline Building 38 Hialeah, FL 88,500 5.0 % 506,215 — Q2 2024

Countyline Building 39 Hialeah, FL 43,800 5.8 % 178,201 — Q3 2024

Post-Development Square Feet Completion Quarter

East Garry Avenue Santa Ana, CA $ 41,300 5.1 % 91,500 Q1 2025

Countyline Building 33 Hialeah, FL 39,900 5.9 % 158,000 Q3 2025

147th Street Hawthorne, CA 15,600 5.6 % 31,378 — Q4 2024

Maple III Rancho Dominguez, CA 28,300 2.3 % — 2.8 Q4 2024

49-10 27th Street Long Island City, Queens, NY 35,800 5.7 % 48,000 Q4 2025

Total/Weighted Average $ 117,000 5.6 % 297,500

1 Total investment for the properties includes the initial purchase price, buyer’s due diligence and closing costs, redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization.

1 Total expected investment for the properties includes the initial purchase price, buyer’s due diligence and closing costs, redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization.

2 Estimated stabilized cap rates are calculated as estimated annualized cash basis net operating income for the properties stabilized to market occupancy (generally 95%) divided by the total acquisition cost for the property.

3 unchanged sentences

Disposition Activity

During the year ended December 31, 2024, we sold four properties for a total aggregate sales price of approximately $74.4 million, resulting in a total aggregate gain of approximately $45.4 million.

The following table sets forth the markets in which the industrial properties were sold during 2024:

Market Number of Properties Total Sales Price Total Gain

During the year ended December 31, 2025, we sold eight properties for a total aggregate sales price of approximately $386.4 million, resulting in a total aggregate gain of approximately $238.4 million.

The following table sets forth the markets in which the industrial properties were sold during 2025 (dollars in thousands):

Market Number of Properties Number of Buildings Total Sales Price Total Gain

New York City/Northern New Jersey 1 1 $ 144,200 $ 109,538

Los Angeles 2 5 108,000 54,169

Miami 1 6 82,300 55,534

10 unchanged sentences

Income from operations $ 8,685 $ 15,578 $ 12,703

Public Equity Offering

On March 27, 2024, we completed a public offering of 6,325,000 shares of common stock at a price per share of $62.00, which included the underwriters’ full exercise of their option to purchase an additional 825,000 shares.

The net proceeds of the offering were approximately $387.1 million after deducting the underwriting discount and offering costs of approximately $5.0 million.

We used the net proceeds for acquisitions.

Credit Facility

On September 24, 2024, we entered into the Third Amendment to the Sixth Amended and Restated Senior Credit Agreement (as amended, the “Amended Facility”) in order to, among other things, (i) increase the borrowing capacity of the revolving credit facility by $200.0 million to $600.0 million and (ii) extend the maturity date of the revolving credit facility from August 2025 to January 2029.

See “Note 6 - Debt” in our notes to consolidated financial statements for more information regarding the Amended Facility.

Senior Unsecured Notes

In July 2024, we repaid the $100.0 million tranche of our 7-year senior unsecured notes using existing cash on hand.

The notes bore interest at 3.8% and had an original maturity date of July 14, 2024.

Subsequent to December 31, 2025, on January 7, 2026, we entered into a Fourth Amendment to the Sixth Amended and Restated Senior Credit Agreement in order to, among other things, add a $200 million term loan maturing on January 15, 2031.

Interest on the term loan, is generally to be paid based upon, at the Company’s option, either (i) SOFR plus the applicable SOFR margin or (ii) the applicable base rate, which is the greatest of the administrative agent’s prime rate, 0.50% above the federal funds effective rate, thirty-day SOFR plus the applicable SOFR margin for SOFR rate loans under the Amended Facility plus 1.25%, or 1.25% per annum.

The applicable SOFR margin will range from 1.15% to 1.65% for the term loans depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value.

Additionally, the ten basis point SOFR credit spread adjustment premium was eliminated on all credit facility borrowings, including term loans.

Proceeds from the $200.0 million term loan were used to reduce borrowings under the $600.0 million revolving credit facility and for general corporate purposes.

We have an at-the-market equity offering program (the "$500 Million ATM Program") pursuant to which we may issue and sell shares of our common stock having an aggregate offering price of up to $500.0 million (approximately $157.2 million remaining as of December 31, 2025) in amounts and at times as we determine from time to time.

Prior to the implementation of the $500 Million ATM Program, we had a previous at-the-market equity offering program (the "Previous $500 Million ATM Program"), which was substantially utilized as of August 27, 2024 and which is no longer active.

We intend to use the net proceeds from the offering of the shares under the $500 Million ATM Program, if any, for general corporate purposes, which may include future acquisitions, developments and redevelopments and repayment of indebtedness, including borrowings under our revolving credit facility.

During the three months ended December 31, 2024, we did not issue any common stock under the $500 Million ATM Program.

During the year ended December 31, 2024, we issued an aggregate of 5,329,544 shares of common stock at a weighted average offering price of $66.62 per share under the $500 Million ATM Program and Previous $500 Million ATM Program, resulting in net proceeds of approximately $349.9 million and paying total compensation to the applicable sales agents of approximately $5.1 million.

During the three months ended December 31, 2025, we issued an aggregate of 700,000 shares of common stock at a weighted average offering price of $62.27 per share under the $500 Million ATM Program, resulting in net proceeds of approximately $43.0 million and paying total compensation to the applicable sales agents of approximately $0.6 million.

During the year ended December 31, 2025, we issued an aggregate of 4,206,371 shares of common stock at a weighted average offering price of $66.81 per share under the $500 Million ATM Program, resulting in net proceeds of approximately $276.9 million and paying total compensation to the applicable sales agents of approximately $4.1 million.

Share Repurchase Program

5 unchanged sentences

Dividend and Distribution Activity

On February 4, 2025, our board of directors declared a cash dividend in the amount of $0.49 per share of our common stock payable on April 4, 2025 to the stockholders of record as of the close of business on March 27, 2025.

Subsequent to December 31, 2025, on February 3, 2026, our board of directors declared a cash dividend in the amount of $0.52 per share of our common stock payable on April 10, 2026 to the stockholders of record as of the close of business on March 27, 2026.

The following table sets forth the cash dividends paid or payable per share during the year ended December 31, 2025:

6 unchanged sentences

Contractual Commitments

As of February 4, 2025, we had no outstanding contracts or non-binding letters of intent to acquire industrial properties as described under the heading “Material Cash Commitments” in this Annual Report on Form 10-K.

Current operating conditions in our six markets for our business have slowed over the last two years yet there are reasons for optimism within our submarkets.

Subsequent to December 31, 2025, as of February 3, 2026, the Company had three outstanding contracts with third-party sellers to acquire three industrial properties for a total purchase price of approximately $113.2 million, as described under the heading “Material Cash Commitments” in this Annual Report on Form 10-K.

Additionally, we have approximately $8.8 million of dispositions under contract where due diligence has been completed and $11.1 million of dispositions under contract where due diligence has commenced.

There is no assurance that we will acquire or dispose of the properties under contract because the proposed acquisitions and dispositions are subject to the completion of satisfactory due diligence.

Current operating conditions in our six markets for our business have stabilized and there are reasons for optimism within our submarkets.

We believe that on average, the rental rates we are likely to achieve on new or renewed leases for our 2026 expirations will be above the rates currently paid for the same space.

4 unchanged sentences

We will continue to sell assets and redeploy the capital to enhance NAV per share growth or return the capital to shareholders.

We entered 2025 with our balance sheet exceedingly well positioned for growth as we have $82.0 million outstanding on our $600.0 million revolving credit facility and a cash balance of approximately $18.1 million.

We entered 2026 with our balance sheet well positioned for growth as we have $200.0 million outstanding on our $600.0 million revolving credit facility and a cash balance of approximately $25.0 million.

Within our six markets we have increasingly focused on urban infill locations.

While our net growth will remain limited to a size where we can make directly informed operational decisions, we feel more strongly today than we did fifteen years ago about the long-term investment merits of our strategy and the growth opportunities ahead.

While our net growth will remain limited to a size where we can make directly informed operational decisions, we feel more strongly today than we did sixteen years ago about the long-term investment merits of our strategy and the growth opportunities ahead.

We are mindful, always, that it is per share rather than aggregate results that matter.

9 unchanged sentences

Most of our leases require the tenants to pay their share of operating expenses, including common area maintenance, real estate taxes and insurance, thereby reducing our exposure to increases in costs and operating expenses resulting from inflation.

In addition, leases with respect to approximately 71.6% of our total rentable square feet and improved land acerage expire within five years which enables us to seek to replace existing leases with new leases at the then-existing market rate.

In addition, leases with respect to approximately 68.9% of our total rentable square feet and improved land acreage expire within five years, which enables us to seek to replace existing leases with new leases at the then-existing market rate.

Financial Condition and Results of Operations

We derive substantially all of our revenues from rents received from tenants under existing leases on each of our properties.

These revenues include fixed base rents and recoveries of certain property operating expenses that we have incurred

and that we pass through to the individual tenants.

These revenues include fixed base rents and recoveries of certain property operating expenses that we have incurred and that we pass through to the individual tenants.

Approximately 96.8% of our leased space includes fixed rental increases or Consumer Price Index-based rental increases.

7 unchanged sentences

As of December 31, 2025, the same store pool consisted of 236 buildings aggregating approximately 14.1 million square feet representing approximately 71.1% of our total square feet owned and 42 improved land parcels consisting of approximately 142.5 acres representing approximately 96.9% of our total acreage owned.

As of December 31, 2024, the non-same store properties, which we acquired, developed or redeveloped, or sold during 2024 and 2023 or were held for sale or in development or redevelopment as of December 31, 2024, consisted of 57 buildings (including one building held for sale) aggregating approximately 4.7 million square feet, three improved land parcels consisting of approximately 11.1 acres, six properties under development or redevelopment and approximately 22.4 acres of land for future development.

As of December 31, 2025, the non-same store properties, which we acquired, developed or redeveloped, or sold during 2025 and 2024 or which were held for sale or in development or redevelopment as of December 31, 2025, consisted of 73 buildings aggregating approximately 5.7 million square feet, four improved land parcels consisting of approximately 4.5 acres and six properties under development or redevelopment.

As of December 31, 2025 and 2024, our consolidated same store pool occupancy was approximately 97.2% and 98.2%, respectively.

34 unchanged sentences

Gain on sales of real estate investments 238,434 45,379 193,055 425.4 %

Total other (expense) income 36,541 18,324 18,217 99.4 %

Total other income 210,905 36,541 174,364 477.2 %

Net income $ 402,992 $ 184,497 $ 218,495 118.4 %

5 unchanged sentences

See “Note 2 - Significant Accounting Policies” in our notes to consolidated financial statements for more information regarding our adoption of this standard.

2 Includes 2024 and 2023 acquisitions and dispositions, three improved land parcels, six properties under development or redevelopment, approximately 22.4 acres of land entitled for future development and one building held for sale as of December 31, 2024.

2 Includes 2025 and 2024 acquisitions and dispositions, four improved land parcels, six properties under development or redevelopment and one building held for sale as of December 31, 2025.

3 Includes straight-line rents and amortization of lease intangibles.

See “Non-GAAP Financial Measures” in this Annual Report on Form 10-K for a definition and reconciliation of net operating income and same store net operating income from net income and a discussion of why we believe net operating income and same store net operating income are useful supplemental measures of our operating performance.

Total revenues increased approximately $59.0 million for the year ended December 31, 2024 compared to the prior year due primarily to increased revenue on new and renewed leases and property acquisitions during 2024 and 2023.

Cash rents on new and renewed leases totaling approximately 2.3 million square feet and 22.5 acres commencing during the year ended December 31, 2024 increased approximately 36.5% compared to the previous rental rates for that same space in the prior year.

Total revenues increased approximately $93.8 million for the year ended December 31, 2025 compared to the prior year primarily due to property acquisitions during 2025 and 2024, increased revenue on new and renewed leases and lease termination fees.

The increase in total revenues was partially offset by property dispositions during 2025.

Cash rents on new and renewed leases totaling approximately 2.7 million square feet and 24.4 acres commencing during the year ended December 31, 2025 increased approximately 25.4% compared to the previous rental rates.

For the years ended December 31, 2025 and 2024, approximately $14.4 million and $8.3 million, respectively, was recorded in straight-line rental revenues related to contractual rent abatements given to certain tenants and approximately $13.6 million and $0.7 million, respectively, was recorded in lease termination revenue.

The increase in total revenues for the year ended December 31, 2024 was partially offset by a decrease in occupancy for the operating portfolio, as a result of acquired vacancy.

Additionally, total revenues for the years ended December 31, 2024 and 2023 were partially offset by approximately $2.8 million and $1.1 million, respectively, of bad debt expense.

The increase in lease termination revenue was primarily due to a lease termination which occurred during the three months ended December 31, 2025 of $13.5 million, partially offset by a $1.3 million termination fee we paid as part of a lease buy out at two properties.

Total revenues for the years ended December 31, 2025 and 2024 were partially offset by approximately $7.8 million and $3.1 million, respectively, of bad debt expense and straight-line rent write-offs for terminated leases.

Bad debt expense for the three months and year ended December 31, 2025 was approximately $2.0 million and $5.6 million, respectively.

Property operating expenses.

Total property operating expenses increased approximately $17.0 million during the year ended December 31, 2025 compared to the prior year.

The increase in total property operating expenses was primarily due to increases in insurance premiums and real estate taxes.

The increase in total property operating expenses was primarily due to property acquisitions during 2025 and 2024 as well as increases in real estate taxes.

The increase in total property operating expenses was partially offset by property dispositions during 2025.

Depreciation and amortization.

Depreciation and amortization increased approximately $20.7 million during the year ended December 31, 2024 compared to the prior year primarily due to property acquisitions during 2024 and 2023.

Depreciation and amortization increased approximately $27.7 million during the year ended December 31, 2025 compared to the prior year primarily due to property acquisitions during 2025 and 2024, partially offset by property dispositions during 2025.

General and administrative expenses.

General and administrative expenses increased approximately $4.7 million for the year ended December 31, 2024 compared to the prior year primarily due to increased compensation expenses including increased restricted stock amortization, LTIP expense and bonus expense, and an increase in the number of employees and salaries compared to the prior year as well as expenses related to our New York City office which opened in 2024.

General and administrative expenses increased approximately $4.7 million for the year ended December 31, 2025 compared to the prior year primarily due to increased compensation expenses, including increased restricted stock amortization, LTIP expense and bonus expense, and an increase in salaries compared to the prior year.

Interest and other income.

Interest and other income increased approximately $7.1 million during the year ended December 31, 2024 compared to the prior year primarily due to higher cash and cash equivalent balances throughout 2024.

Interest and other income decreased approximately $6.8 million during the year ended December 31, 2025 compared to the prior year primarily due to lower cash and cash equivalent balances throughout 2025.

Interest expense, including amortization.

Interest expense decreased approximately $3.9 million for the year ended December 31, 2024 compared to the prior year.

This was primarily due to an increase in capitalized interest for the development and redevelopment properties, and lower outstanding debt due to the repayment of the $100 million tranche of 7-year Senior Unsecured Notes during the year ended December 31, 2024.

Interest expense increased approximately $11.9 million for the year ended December 31, 2025 compared to the prior year.

This was primarily due to higher outstanding debt during the year ended December 31, 2025, as well as a decrease in capitalized interest for the development and redevelopment properties.

Gain on sales of real estate investments.

Gain on sales of real estate investments increased approximately $193.1 million for the year ended December 31, 2025 compared to the prior year.

We recognized an aggregate gain of approximately $45.4 million from the sale of four properties during the year ended December 31, 2024, as compared to an aggregate gain of approximately $38.2 million from the sale of four properties during the prior year.

We recognized an aggregate gain of approximately $238.4 million from the sale of eight properties during the year ended December 31, 2025, as compared to an aggregate gain of approximately $45.4 million from the sale of four properties during the prior year.

Comparison of the Year Ended December 31, 2024 to the Year Ended December 31, 2023:

Discussion of the year ended December 31, 2023 compared to the year ended December 31, 2022 was included in our Annual Report on Form 10-K for the year ended December 31, 2023 on page 38 under Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations”, which was filed with the SEC on February 7, 2024.

Discussion of the year ended December 31, 2024 compared to the year ended December 31, 2023 was included in our Annual Report on Form 10-K for the year ended December 31, 2024 beginning on page 41 under Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations”, which was filed with the SEC on February 5, 2025.

Liquidity and Capital Resources

7 unchanged sentences

We intend to preserve a flexible capital structure with a long-term goal to maintain our investment grade rating and be in a position to issue additional unsecured debt and perpetual preferred stock.

Fitch Ratings assigned us an issuer rating of BBB+ with a stable outlook.

A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning credit agency.

There can be no assurance that we will be able to maintain our current credit rating.

Our credit rating can affect the amount and type of capital we can access, as well as the terms of any financings we may obtain.

In the event our current credit rating is downgraded, it may become difficult or expensive to obtain additional financing or refinance existing obligations and commitments.

We intend to primarily utilize senior unsecured notes, term loans, credit facilities, dispositions of properties, and proceeds from the issuance of common stock and perpetual preferred stock.

We may also assume debt in connection with property acquisitions which may have a higher loan-to-value ratio.

6 unchanged sentences

Equity Sources of Liquidity

The net proceeds of the offering were approximately $387.1 million after deducting the underwriting discount and offering costs of approximately $5.0 million.

We used the net proceeds for acquisitions.

The following sets forth certain information regarding our current at-the-market common stock offering program as of December 31, 2025:

1 unchanged sentence

$500 Million ATM Program August 28, 2024 $ 500,000 $ 157,244

The table below sets forth the activity under our at-the-market common stock offering programs during the years ended December 31, 2024 and 2023:

The tables below set forth the activity under our at-the-market common stock offering programs during the years ended December 31, 2025 and 2024, respectively:

For the Year Ended

7 unchanged sentences

As of December 31, 2025, we had $50.0 million of senior unsecured notes that mature in July 2026, $50.0 million of senior unsecured notes that mature in October 2027, $100.0 million of senior unsecured notes that mature in July 2028, $100.0 million of senior unsecured notes that mature in December 2029, $125.0 million of senior unsecured notes that mature in August 2030, and $50.0 million of senior unsecured notes that mature in July 2031 (collectively, the “Senior Unsecured Notes”).

In July 2024, we repaid the $100.0 million tranche of 7-year Senior Unsecured Notes using existing cash on hand.

The notes bore interest at 3.8% and had an original maturity date of July 14, 2024.

On September 24, 2024, we entered into the Third Amendment to the Amended Facility in order to, among other things, (i) increase the borrowing capacity of the revolving credit facility by $200.0 million to $600.0 million and (ii) extend the maturity date of the revolving credit facility from August 2025 to January 2029.

The Amended Facility consists of a $600.0 million revolving credit facility that matures in January 2029, a $100.0 million term loan that matures in January 2027 and a $100.0 million term loan that matures in January 2028.

As of December 31, 2025, the Sixth Amended and Restated Senior Credit Agreement (as amended, the “Amended Facility”) consists of a $600.0 million revolving credit facility that matures in January 2029, a $100.0 million term loan that matures in January 2027 and a $100.0 million term loan that matures in January 2028.

As of December 31, 2025, there were $200.0 million of borrowings outstanding on the revolving credit facility and $200.0 million of borrowings outstanding on the term loans.

As of December 31, 2023, there were no borrowings outstanding on the revolving credit facility and $200.0 million of borrowings outstanding on the term loans.

The aggregate amount of the Amended Facility may be increased by up to an additional $450.0 million to a maximum aggregate amount not to exceed $1.25 billion, subject to the approval of the administrative agent and the identification of lenders willing to make available additional amounts.

Outstanding borrowings under the Amended Facility are limited to the lesser of (i) the sum of the $600.0 million revolving credit facility, the $100.0 million term loan maturing in January 2027 and the $100.0 million term loan maturing in January 2028, or (ii) 60.0% of the value of the unencumbered properties.

Interest on the Amended Facility, including the term loans, is generally to be paid based upon, at our option, either (i) the Secured Overnight Financing Rate (“SOFR”) plus the applicable SOFR margin or (ii) the applicable base rate, which is the greatest of the administrative agent’s prime rate, 0.50% above the federal funds effective rate, thirty-day SOFR plus the applicable SOFR margin for SOFR rate loans under the Amended Facility plus 1.25%, or 1.25% per annum.

The applicable SOFR margin will range from 1.10% to 1.55% (1.10% as of December 31, 2024) for the revolving credit facility and 1.25% to 1.75% (1.25% as of December 31, 2024) for the term loans, depending on the ratio of our outstanding consolidated indebtedness to the value of our consolidated gross asset value and includes a 10 basis points SOFR credit adjustment.

The Amended Facility requires quarterly payments of an annual facility fee in an amount ranging from 0.15% to 0.30%, depending on the ratio of our outstanding consolidated indebtedness to the value of our consolidated gross asset value.

As of December 31, 2024, there were $82.0 million of borrowings outstanding on the revolving credit facility and $200.0 million of borrowings outstanding on the term loans.

On January 7, 2026, we entered into the Fourth Amendment to the Amended Facility (the “Fourth Amendment”) adding a $200.0 million term loan maturing on January 15, 2031.

Following the Fourth Amendment, the Amended Facility consists of a $600.0 million revolving credit facility that matures in January 2029, a $100.0 million term loan that matures in January 2027, a $100.0 million term loan that matures in January 2028, and a $200.0 million term loan that matures in January 2031.

Additionally, the Amended Facility includes an accordion feature pursuant to which the aggregate amount of the Amended Facility may be increased by up to an additional $1.0 billion to a maximum aggregate amount not to exceed $2.0 billion, subject to the approval of the administrative agent and the identification of lenders willing to make available additional amounts.

Outstanding borrowings under the Amended Facility are limited to the lesser of (i) the sum of the $600.0 million revolving credit facility, the $100.0 million term loan maturing in January 2027, the $100.0 million term loan maturing in January 2028, and the $200.0 million term loan maturing in January 2031 or (ii) 60.0% of the value of the unencumbered properties.

Interest on the Amended Facility, including the term loans, is generally to be paid based upon, at our option, either (i) SOFR plus the applicable SOFR margin or (ii) the applicable base rate, which is the greatest of the administrative agent’s prime rate, 0.50% above the federal funds effective rate, thirty-day SOFR plus the applicable SOFR margin for SOFR rate loans under the Amended Facility plus 1.25%, or 1.25% per annum.

The applicable SOFR margin will range from 1.00% to 1.45% for the revolving credit facility and 1.15% to 1.65% for the term loans, depending on the ratio of our outstanding consolidated indebtedness to the value of our consolidated gross asset value.

Proceeds from the $200.0 million term loan were used to reduce borrowings under the $600.0 million revolving credit facility and for general corporate purposes.

The Amended Facility and the Senior Unsecured Notes are guaranteed by us and by substantially all of the current and to-be-formed subsidiaries of the borrower that own an unencumbered property.

2 unchanged sentences

We were in compliance with the covenants under the Amended Facility and the Senior Unsecured Notes as of December 31, 2025 and 2024.

As of December 31, 2024, we had a mortgage loan payable with a total contractual principal amount of approximately $72.9 million which bears interest at a contractual fixed interest rate of 3.9% and matures in March 2028.

As of December 31, 2025 and 2024, we had a mortgage loan payable with a total contractual principal amount of approximately $72.9 million which bears interest at a contractual fixed interest rate of 3.9% and matures in March 2028.

The mortgage was assumed in an acquisition and was recorded at fair value in the amount of $69.2 million using an effective interest rate of 5.6%.

The unamortized fair value adjustment as of December 31, 2024 was approximately $3.6 million.

The unamortized fair value adjustment as of December 31, 2025 and 2024 was approximately $2.5 million and $3.6 million, respectively.

As of December 31, 2025 and 2024, we held cash and cash equivalents totaling approximately $25.0 million and $18.1 million, respectively.

The following tables summarize our debt maturities and principal payments as of December 31, 2024, and market capitalization, capitalization ratios, Adjusted EBITDA, interest coverage, fixed charge coverage and debt ratios as of and for the years ended December 31, 2024 and 2023 (dollars in thousands, except per share data):

Facility Term Loan Senior

The following tables summarize our debt maturities and principal payments as of and for the year ended December 31, 2025, and market capitalization, capitalization ratios, Adjusted EBITDA, interest coverage, fixed charge coverage and debt ratios as of and for the years ended December 31, 2025 and 2024 (dollars in thousands, except per share data):

Notes Mortgage

12 unchanged sentences

Weighted average interest rate 4.8% 5.1% 3.0% 3.9% 3.9%

1 As of February 3, 2026, there were $50.0 million of borrowings outstanding on the revolving credit facility and $400.0 million of borrowings outstanding on the term loans.

As of December 31, 2025 As of December 31, 2024

15 unchanged sentences

Interest Coverage 7

10.3 x 12.9 x

Fixed Charge Coverage 8

3 unchanged sentences

Also includes 527,547 and 497,190 shares held in the Deferred Compensation Plan as of December 31, 2025 and 2024, respectively.

2 Closing price of a share of our common stock on the New York Stock Exchange on December 31, 2024 and December 29, 2023, respectively, in dollars per share.

3 Total debt-to-total investments in properties is calculated as total debt, net of deferred financing costs, divided by total investments in properties, including one property consisting of one building held for sale as of December 31, 2024.

2 Closing price of a share of our common stock on the New York Stock Exchange on December 31, 2025 and 2024, respectively, in dollars per share.

4 Total debt-to-total market capitalization is calculated as total debt, net of deferred financing costs, divided by total market capitalization.

1 unchanged sentence

6 Earnings before interest, taxes, gains (losses) from sales of property, depreciation and amortization, acquisition costs and stock-based compensation (“Adjusted EBITDA”) for the years ended December 31, 2025 and 2024, respectively.

See “Non-GAAP Financial Measures” in this Annual Report on Form 10-K for a definition and reconciliation of

Adjusted EBITDA from net income and a discussion of why we believe Adjusted EBITDA is a useful supplemental measure of our operating performance.

See “Non-GAAP Financial Measures” in this Annual Report on Form 10-K for a definition and reconciliation of Adjusted EBITDA from net income and a discussion of why we believe Adjusted EBITDA is a useful supplemental measure of our operating performance.

7 Interest coverage is calculated as Adjusted EBITDA divided by interest expense, including amortization.

2 unchanged sentences

9 Net debt-to-Adjusted EBITDA is calculated as net debt divided by annualized Adjusted EBITDA.

9 Net debt-to-Adjusted EBITDA is calculated as net debt divided by annualized Adjusted EBITDA for the three months ended December 31, 2025 and 2024, respectively.

See “Non-GAAP Financial Measures” in this Annual Report on Form 10-K for the definitions of Adjusted EBITDA and net debt, a reconciliation of Adjusted EBITDA from net income and a discussion of why we believe Adjusted EBITDA and net debt are useful supplemental measures of our operating performance.

The following tables set forth the cash dividends paid or payable per share during the years ended December 31, 2024 and 2023:

The following table sets forth the cash dividends paid or payable per share during the years ended December 31, 2025:

For the Three

6 unchanged sentences

For the Three

Months Ended Security Dividend

per Share Declaration Date Record Date Date Paid

Months Ended Security Dividend per Share Declaration Date Record Date Date Paid

March 31, 2024 Common Stock $ 0.45 February 6, 2024 March 28, 2024 April 5, 2024

1 unchanged sentence

September 30, 2024 Common Stock $ 0.49 August 6, 2024 September 30, 2024 October 11, 2024

December 31, 2023 Common Stock $ 0.45 October 31, 2023 December 15, 2023 January 5, 2024

December 31, 2024 Common Stock $ 0.49 November 5, 2024 December 13, 2024 January 7, 2025

Sources and Uses of Cash

3 unchanged sentences

Net cash provided by operating activities totaled approximately $271.9 million for the year ended December 31, 2025 compared to approximately $232.7 million for the year ended December 31, 2024.

This increase in cash provided by operating activities is primarily attributable to additional cash flows generated from the properties acquired during 2024 and 2023 and increased rents on new and renewed leases at our same store properties.

This increase in cash provided by operating activities for the year ended December 31, 2025 compared to the year ended December 31, 2024 is primarily attributable to additional cash flows generated from the properties acquired during 2025 and 2024 and increased rents on new and renewed leases at our same store properties.

Cash From Investing Activities.

Net cash used in investing activities was approximately $915.5 million and $570.4 million for the years ended December 31, 2024 and 2023, respectively, which consisted primarily of cash paid for property acquisitions of approximately $814.5 million and $466.8 million, respectively, additions to capital improvements of approximately $172.9 million and $176.6 million, respectively, and was partially offset by proceeds from sales of real estate investments of approximately $71.9 million and $73.1 million, respectively.

Net cash used in investing activities was approximately $452.4 million and $915.5 million for the years ended December 31, 2025 and 2024, respectively.

Such amounts consisted primarily of cash paid for property acquisitions of approximately $693.6 million and $814.5 million and additions to capital improvements of approximately $133.4 million and $172.9 million during the years ended December 31, 2025 and 2024, respectively.

Such amounts were partially offset by proceeds from sales of real estate investments during the years ended December 31, 2025 and 2024 of approximately $374.6 million and $71.9 million, respectively.

Cash From Financing Activities.

Net cash provided by financing activities was approximately $534.9 million for the year ended December 31, 2024, which consisted primarily of approximately $737.0 million in net proceeds from the issuance of common stock, and $110.0 million in revolving credit facility borrowings, partially offset by approximately $175.0 million in equity dividend payments, repayment of a $100.0 million tranche of the Senior Unsecured Notes, and repayment of $28.0 million of borrowings on the revolving credit facility.

Net cash provided by financing activities was approximately $528.9 million for the year ended December 31, 2023, which consisted primarily of approximately $666.3 million in net proceeds from the issuance of common stock, partially offset by approximately $135.9 million in equity dividend payments.

Net cash provided by financing activities was approximately $187.8 million for the year ended December 31, 2025, which consisted primarily of approximately $276.9 million in net proceeds from the issuance of common stock, and $422.5 million in revolving credit facility borrowings, partially offset by approximately $203.9 million in equity dividend payments, and repayment of $304.5 million of borrowings on the revolving credit facility.

Net cash provided by

financing activities was approximately $534.9 million for the year ended December 31, 2024, which consisted primarily of approximately $737.0 million in net proceeds from the issuance of common stock, and $110.0 million in revolving credit facility borrowings, partially offset by approximately $175.0 million in equity dividend payments, repayment of a $100.0 million tranche of the Senior Unsecured Notes, and repayment of $28.0 million of borrowings on the revolving credit facility.

Critical Accounting Policies And Estimates

31 unchanged sentences

If an asset is intended to be held for the long-term, the recoverability is based on the undiscounted future cash flows.

If the asset carrying value is not supported on an undiscounted future cash flow basis, then the asset carrying value is measured against the lower of cost or the present value of expected cash flows over the expected hold period.

If the asset carrying value is not supported on an undiscounted future cash flow basis, then the asset carrying value is measured against the lower of cost or the present value of expected cash

flows over the expected hold period.

An impairment charge to earnings is recognized for the excess of the asset’s carrying value over the lower of cost or the present values of expected cash flows over the expected hold period.

1 unchanged sentence

The estimation of expected future net cash flows is inherently uncertain and relies on assumptions, among other things, regarding current and future economic and market conditions and the availability of capital.

We determine the estimated fair values based on its assumptions regarding rental

rates, lease-up and holding periods, as well as sales prices.

We determine the estimated fair values based on its assumptions regarding rental rates, lease-up and holding periods, as well as sales prices.

When available, current market information is used to determine capitalization and rental growth rates.

12 unchanged sentences

Material Cash Commitments

As of February 4, 2025, we had no outstanding contracts or non-binding letters of intent to acquire industrial properties.

Subsequent to December 31, 2025, as of February 3, 2026, we had three outstanding contracts with third-party sellers to acquire three industrial properties for a total purchase price of approximately $113.2 million.

There is no assurance that we will acquire the properties under contracts because the proposed acquisitions are subject to due diligence and various closing conditions.

The following table summarizes our material cash commitments due by period as of December 31, 2025 (dollars in thousands):

1 unchanged sentence

Year 1-3 Years 3-5 Years More than 5

Debt $ 50,000

$ 422,879 $ 425,000 $ 50,000 $ 947,879

3 unchanged sentences

Purchase obligations 1

113,150 — — — 113,150

Total $ 217,487 $ 450,140 $ 435,965 $ 51,420 $ 1,155,012

5 unchanged sentences

Further, our computation of FFO, Adjusted EBITDA, NOI, same store NOI, cash-basis same store NOI and net debt may not be comparable to FFO, Adjusted EBITDA, NOI, same store NOI, cash-basis same store NOI and net debt reported by other companies.

We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts (“Nareit”), which defines FFO as net income (loss) (determined in accordance with GAAP), excluding gains (losses) from sales of property and impairment write-downs of depreciable real estate, plus depreciation and amortization on real estate assets and after adjustments for unconsolidated partnerships and joint ventures (which are calculated to reflect FFO on the same basis).

after adjustments for unconsolidated partnerships and joint ventures (which are calculated to reflect FFO on the same basis).

We believe that presenting FFO provides useful information to investors regarding our operating performance because it is a measure of our operations without regard to specified non-cash items, such as real estate depreciation and amortization and gain or loss on sale of assets.

We believe that FFO is a meaningful supplemental measure of our operating performance because historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time.

Since real estate values have historically risen or fallen with market conditions, many industry investors

and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting alone to be insufficient.

Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting alone to be insufficient.

As a result, we believe that the use of FFO, together with the required GAAP presentations, provide a more complete understanding of our operating performance.

33 unchanged sentences

102,723,758 95,842,137 95,842,137 83,371,099

1 To be consistent with our policies of determining whether instruments granted in share-based payment transactions are participating securities and accounting for earnings per share, the FFO per common share is adjusted for FFO distributed through declared dividends (if any) and allocated to all participating securities (weighted average common

shares outstanding and unvested restricted shares outstanding) under the two-class method.

Under this method, allocations were made to 476,627, 426,670 and 419,230 of weighted average unvested restricted shares outstanding for the three months ended December 31, 2025, 2024 and 2023, respectively, and 455,244, 429,748 and 393,059 of weighted average unvested restricted shares outstanding for the years ended December 31, 2025, 2024 and 2023, respectively.

FFO increased by approximately $24.5 million and $52.9 million for the three months and year ended December 31, 2025, respectively, compared to the same periods from the prior year due primarily to property acquisitions during 2024 and 2025 as well as same store NOI growth of approximately $20.9 million and $30.3 million for the three months and year ended December 31, 2025, respectively, compared to the same periods from the prior year.

The FFO increase was partially offset by increased weighted average common shares outstanding and increased general and administrative expenses due to increased restricted stock amortization and other compensation expenses, including an increase in bonus expense and an increase in the number of employees and salaries for the three months and year ended December 31, 2024 compared to the same periods from the prior year.

The increase in FFO was partially due to lease termination income of approximately $12.6 million and $13.1 million for the three months and year ended December 31, 2025, respectively.

The increase in lease termination revenue was primarily due to lease terminations which occurred during the three months ended December 31, 2025 of $13.8 million.

In connection with the lease terminations, we also recorded a net increase in revenue of approximately $5.8 million from the write-off of the below market leases, net of straight-line rent write-offs.

The increase in lease termination revenue was partially offset by a $1.3 million termination fee we paid as part of a lease buy out at two properties.

The combined net impact of lease terminations during the three months ended December 31, 2025 was approximately $18.4 million.

The FFO increase was partially offset by increased weighted average common shares outstanding and increased general and administrative expenses due to increased restricted stock amortization and other compensation expenses, including an increase in LTIP expense and an increase in the number of employees and salaries for the three months and year ended December 31, 2025 compared to the same periods from the prior year.

The increase in FFO was partially offset by approximately $3.8 million and $7.8 million of bad debt expense and straight-line rent write-offs for terminated leases for the three months and year ended December 31, 2025.

Bad debt expense for the three months and year ended December 31, 2025 was approximately $2.0 million and $5.6 million, respectively.

We compute Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, gain on sales of real estate investments, acquisition costs and stock-based compensation.

45 unchanged sentences

$ 20,913 35.2 % $ 58,524 5

$ 3,043 6.2 %

Less straight-line rents and amortization of lease intangibles 6

5 unchanged sentences

1 Includes approximately $12.9 million, $0.2 million and $0.2 million of lease termination income for the three months ended December 31, 2025, 2024 and 2023, respectively.

2 Includes 2025 and 2024 acquisitions and dispositions, four improved land parcels, six properties under development or redevelopment and one building held for sale as of December 31, 2025.

3 Includes 2024 and 2023 acquisitions and dispositions, three improved land parcels consisting of approximately 11.1 acres, six properties under development or redevelopment, approximately 22.4 acres of land for future development and one building held for sale as of December 31, 2024.

3 Includes 2023 and 2022 acquisitions and dispositions, eleven improved land parcels consisting of approximately 37.3 acres and one property under redevelopment as of December 31, 2023.

4 Includes $0.2 million of lease termination income for both the three months ended December 31, 2024 and 2023.

4 Includes $12.6 million and $0.2 million of lease termination income for the three months ended December 31, 2025 and 2024, respectively.

5 Includes $0.2 million of lease termination income for the both three months ended December 31, 2024 and 2023, respectively.

6 Includes straight-line rents and amortization of lease intangibles for the same store pool only.

20 unchanged sentences

1 Includes approximately $13.6 million, $0.7 million and $0.6 million of lease termination income for the years ended December 31, 2025, 2024 and 2023, respectively.

2 Includes 2025 and 2024 acquisitions and dispositions, four improved land parcels, six properties under development or redevelopment and one building held for sale as of December 31, 2025.

3 Includes 2023 and 2022 acquisitions and dispositions, eleven improved land parcels consisting of approximately 37.3 acres and one property under redevelopment as of December 31, 2023.

4 Includes approximately $0.7 million and $0.4 million of lease termination income for the years ended December 31, 2024 and 2023, respectively.

4 Includes $13.1 million and $0.7 million of lease termination income for the years ended December 31, 2025 and 2024, respectively.

5 Includes approximately $0.7 million and $0.4 million of lease termination income for the years ended December 31, 2024 and 2023, respectively.

6 Includes straight-line rents and amortization of lease intangibles for the same store pool only.

Cash-basis same store NOI increased by approximately $1.8 million for the three months ended December 31, 2024 compared to the prior year primarily due to increased rental revenue on new and renewed leases and contractual rent increases on pre-existing leases.

The increase in cash-basis same store NOI was partially offset by lower average same store occupancy for the three months ended December 31, 2024 compared to the prior year.

Cash-basis same store NOI increased by approximately $14.7 million for the three months ended December 31, 2025 compared to the same period from the prior year primarily due to increased rental revenue on new and renewed leases and contractual rent increases on pre-existing leases.

For the three months ended December 31, 2025 and 2024, total contractual rent abatements of approximately $2.6 million and $1.4 million, respectively, were given to certain tenants in the same store pool and approximately $12.6 million and $0.2 million, respectively, in lease termination income was received from certain tenants in the same store pool.

In addition, approximately $0.6 million of the increase in cash-basis same store NOI for the three months ended December 31, 2024 related to properties that were acquired vacant or with near term expirations in 2022.

Cash-basis same store NOI increased by approximately $16.0 million for the year ended December 31, 2024 compared to the prior year primarily due to increased rental revenue on new and renewed leases.

The increase in cash-basis same store NOI was partially offset by a decrease in same store occupancy for the year ended December 31, 2024 compared to the prior year.

For the years ended December 31, 2024 and 2023, total contractual rent abatements of approximately $2.2 million and $4.4 million, respectively, were given to certain tenants in the same-store pool and approximately $0.7 million and $0.4 million, respectively, in lease termination income was received from certain tenants in the same store pool.

Approximately $0.2 million of the increase in cash-basis same store NOI for the three months ended December 31, 2025 related to properties that were acquired vacant or with near term expirations in 2024.

Additionally, during the three months ended December 31, 2025, we gave contractual rent abatements of approximately $1.5 million (approximately 260 bps) to tenants with new leases at our Manhattan, Countyline Building 30 and Morton properties.

The aggregate rent change for these leases is approximately 76.1%.

Cash-basis same store NOI increased by approximately $26.4 million for the year ended December 31, 2025 compared to the prior year primarily due to increased rental revenue on new and renewed leases and contractual rent increases on pre-existing leases.

For the years ended December 31, 2025 and 2024, total contractual rent abatements of approximately $6.1 million and $3.9 million, respectively, were given to certain tenants in the same-store pool.

For both the years ended December 31, 2025 and 2024, approximately $13.1 million in lease termination income was received from certain tenants in the

same store pool.

In addition, approximately $1.1 million of the increase in cash-basis same store NOI for the year ended December 31, 2025 related to properties that were acquired vacant or with near term expirations in 2024.

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 7. Management’s Discussion and Analysis