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Item 2. Management’s Discussion and Analysis

2026-08-05 compared with 2026-05-06 · 255 added, 150 removed, 472 unchanged (46% of the section changed)

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Some of the risks and uncertainties that may cause our actual results, performance, or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

• the factors included under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission on February 4, 2026, in this Quarterly Report on Form 10-Q, and in our other public filings;

• the factors included under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission on February 4, 2026, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, which was filed with the Securities and Exchange Commission on May 6, 2026, in this Quarterly Report on Form 10-Q, and in our other public filings;

• our ability to identify and acquire industrial properties on terms favorable to us;

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• adverse economic or real estate conditions or developments in the industrial real estate sector and/or in the markets in which we own properties;

• a decline in economic activity or supply chain disruptions caused by geopolitical changes, trade polices, tariffs or related government actions;

• a decline in economic activity or supply chain disruptions caused by geopolitical changes, trade policies, tariffs or related government actions;

• our dependence on key personnel and our reliance on third-party property managers;

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New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C.

We invest in several types of industrial real estate, including warehouse/distribution (approximately 80.5% of our total annualized base rent as of March 31, 2026), flex (including light industrial and research and development, or R&D) (approximately 3.0%), transshipment (approximately 6.3%) and improved land (approximately 10.2%).

We invest in several types of industrial real estate, including warehouse/distribution (approximately 80.1% of our total annualized base rent as of June 30, 2026), flex (including light industrial and research and development, or R&D) (approximately 4.1%), transshipment (approximately 6.3%) and improved land (approximately 9.5%).

We target functional properties in infill locations that may be shared by multiple tenants and that cater to customer demand within the various submarkets in which we operate.

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

As of March 31, 2026, we owned a total of 310 buildings (including two buildings held for sale) aggregating approximately 19.9 million square feet, 46 improved land parcels consisting of approximately 147.0 acres and five properties under development or redevelopment.

As of March 31, 2026, our buildings and improved land parcels were approximately 96.3% and 96.6% leased, respectively, to 681 customers, the largest of which accounted for approximately 4.8% of our total annualized base rent.

As of June 30, 2026, we owned a total of 316 buildings (including one building held for sale) aggregating approximately 20.6 million square feet, 46 improved land parcels consisting of approximately 147.0 acres and four properties under development or redevelopment.

As of June 30, 2026, our buildings and improved land parcels were approximately 97.6% and 93.3% leased, respectively, to 697 customers, the largest of which accounted for approximately 5.3% of our total annualized base rent.

See “Item 1 – Our Investment Strategy – Industrial Facility General Characteristics” in our Annual Report on Form 10-K for the year ended December 31, 2025 for a general description of these types of industrial real estate.

We are an internally managed Maryland corporation and elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with our taxable year ended December 31, 2010.

The following table summarizes by type our investments in real estate as of March 31, 2026:

The following table summarizes by type our investments in real estate as of June 30, 2026:

Type Number of Buildings or Improved Land Parcels Annualized Base Rent (in thousands) 1

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Total 362 $ 385,556 100.0 %

1 Annualized base rent is calculated as contractual monthly base rent per the leases, excluding any partial or full rent abatements, as of March 31, 2026, multiplied by 12.

The following table summarizes by market our investments in real estate as of March 31, 2026:

1 Annualized base rent is calculated as contractual monthly base rent per the leases, excluding any partial or full rent abatements, as of June 30, 2026, multiplied by 12.

The following table summarizes by market our investments in real estate as of June 30, 2026:

New York City/Northern New Jersey Los Angeles Miami San Francisco Bay Area Seattle Washington, D.C.

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% of Total 17.4 % 12.3 % 25.0 % 15.9 % 17.3 % 12.1 % 100.0 %

Occupancy % as of March 31, 2026

Occupancy % as of June 30, 2026

95.0 % 98.2 % 98.6 % 97.0 % 98.6 % 97.7 % 97.6 %

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% of Total 42.7 % 19.6 % 6.7 % 9.8 % 16.2 % 5.0 % 100.0 %

Occupancy % as of March 31, 2026

Occupancy % as of June 30, 2026

91.5 % 96.1 % 100.0 % 100.0 % 85.7 % 100.0 % 93.3 %

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% of Total Gross Book Value 25.4 % 13.7 % 22.3 % 14.6 % 14.6 % 9.4 % 100.0 %

1 Annualized base rent is calculated as contractual monthly base rent per the leases, excluding any partial or full rent abatements, as of March 31, 2026, multiplied by 12.

2 Weighted average remaining lease term is calculated by summing the remaining lease term of each lease as of March 31, 2026, weighted by the respective square footage.

3 Includes five properties under development or redevelopment that, upon completion, will consist of five buildings aggregating approximately 0.9 million square feet and two buildings held for sale with a gross book value of approximately $23.4 million.

As of March 31, 2026, we owned five properties under development or redevelopment that, upon completion, will consist of five buildings aggregating approximately 0.9 million square feet, with a total expected investment of approximately $323.8 million, including redevelopment costs, capitalized interest and other costs.

The following table summarizes our capital expenditures incurred during the three months ended March 31, 2026 and 2025 (dollars in thousands):

For the Three Months Ended March 31,

1 Annualized base rent is calculated as contractual monthly base rent per the leases, excluding any partial or full rent abatements, as of June 30, 2026, multiplied by 12.

2 Weighted average remaining lease term is calculated by summing the remaining lease term of each lease as of June 30, 2026, weighted by the respective square footage.

3 Includes four properties under development or redevelopment that, upon completion, will consist of four buildings aggregating approximately 0.7 million square feet and one building held for sale with a gross book value of approximately $3.7 million.

As of June 30, 2026, we owned four properties under development or redevelopment that, upon completion, will consist of four buildings aggregating approximately 0.7 million square feet, with a total expected investment of approximately $268.5 million, including redevelopment costs, capitalized interest and other costs.

The following table summarizes our capital expenditures incurred during the three and six months ended June 30, 2026 and 2025 (dollars in thousands):

For the Three Months Ended June 30, For the Six Months Ended June 30,

2026 2025 2026 2025

Operating portfolio:

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Non-recurring capital expenditures 1

18,748 2,170 26,912 4,288

Properties under development and redevelopment:

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Capitalized interest 4

1,991 1,110 3,512 2,418

1 Consists of costs incurred related to leasing acquired vacancy, renovation, and expansion projects (stabilization capital).

2 Includes a net increase in accrued capital expenditures for the operating portfolio of approximately $6.5 million during the three months ended March 31, 2026 and a net decrease of approximately $8.2 million during the three months ended March 31, 2025.

2 Includes a net increase in accrued capital expenditures for the operating portfolio of approximately $13.5 million during the three months ended June 30, 2026 and a net increase of approximately $2.7 million during the three months ended June 30, 2025.

3 Includes a net increase in accrued capital expenditures for the operating portfolio of approximately $20.0 million during the six months ended June 30, 2026 and a net decrease of approximately $5.5 million during the six months ended June 30, 2025.

4 Consists of capitalized interest associated with development, redevelopment, renovation and expansion activities.

We do not capitalize any general and administrative costs associated with these activities.

4 Includes a net increase in accrued capital expenditures for properties under development and redevelopment of approximately $10.7 million during the three months ended March 31, 2026 and a net decrease of approximately $7.4 million during the three months ended March 31, 2025.

5 Includes a net increase in accrued capital expenditures for properties under development and redevelopment of approximately $4.4 million during the three months ended June 30, 2026 and a net increase of approximately $3.2 million during the three months ended June 30, 2025.

6 Includes a net increase in accrued capital expenditures for properties under development and redevelopment of approximately $15.1 million during the six months ended June 30, 2026 and a net decrease of approximately $4.1 million during the six months ended June 30, 2025.

Our industrial properties are typically subject to leases on a “triple net basis,” in which tenants pay their proportionate share of real estate taxes, insurance and operating costs, or are subject to leases on a “modified gross basis,” in which tenants pay expenses over certain threshold levels.

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As needed, we hold discussions with the tenant’s management about their business and we conduct site visits of the tenant’s operations.

Our top 20 customers based on annualized base rent as of March 31, 2026 are as follows:

Our top 20 customers based on annualized base rent as of June 30, 2026 are as follows:

Customer Leases Rentable

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9 386,989 1.9 % — 7,812 2.0 %

3 171,707 0.8 % — 4,881 1.3 %

5 Quanta Manufacturing Nashville LLC

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1 505,729 2.5 % — 4,870 1.3 %

3 171,707 0.9 % — 4,739 1.3 %

7 District of Columbia

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1 733,943 3.5 % 16.9 2,635 0.7 %

18 Sarcona Management Corporation

1 33,414 0.2 % — 2,478 0.6 %

1 33,414 0.2 % — 2,478 0.7 %

19 B&B Granite Block Sales, LLC

1 313,632 1.5 % 7.2 2,430 0.6 %

20 Triton Logistics Inc.

1 190,907 0.9 % — 2,426 0.6 %

Total 51 5,921,295 28.8 % 36.9 $ 92,887 24.1 %

1 Annualized base rent is calculated as contractual monthly base rent per the leases, excluding any partial or full rent abatements, as of March 31, 2026, multiplied by 12.

2 Total annualized base rent is calculated as contractual monthly base rent per the leases, for all buildings and improved land parcels, excluding any partial or full rent abatements, as of March 31, 2026, multiplied by 12.

The following tables summarize the anticipated lease expirations for leases in place as of March 31, 2026, without giving effect to the exercise of unexercised renewal options or termination rights, if any, at or prior to the scheduled expirations:

1 Annualized base rent is calculated as contractual monthly base rent per the leases, excluding any partial or full rent abatements, as of June 30, 2026, multiplied by 12.

The following tables summarize the anticipated lease expirations for leases in place as of June 30, 2026, without giving effect to the exercise of unexercised renewal options or termination rights, if any, at or prior to the scheduled expirations:

Year Rentable Square Feet % of Total Rentable

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Total $ 439,739 100.0 %

1 Includes leases that expire on or after March 31, 2026 and month-to-month leases totaling approximately 52,458 square feet.

Approximately 1.1 million square feet of the space expiring during 2026 has either been renewed or pre-leased as of March 31, 2026.

2 Annualized base rent is calculated as contractual monthly base rent per the leases at expiration, excluding any partial or full rent abatements, as of March 31, 2026, multiplied by 12.

3 Total annualized base rent is calculated as contractual monthly base rent per the leases at expiration, for all buildings and/or improved land parcels, excluding any partial or full rent abatements, as of March 31, 2026, multiplied by 12.

4 Includes leases that expire on or after March 31, 2026.

5 Includes leases that expire on or after March 31, 2026 and month-to-month leases disclosed in footnotes 1 and 4 of the table.

1 Includes leases that expire on or after June 30, 2026 and month-to-month leases totaling approximately 54,439 square feet.

Approximately 1.2 million square feet of the space expiring during 2026 has either been renewed or pre-leased as of June 30, 2026.

2 Annualized base rent is calculated as contractual monthly base rent per the leases at expiration, excluding any partial or full rent abatements, as of June 30, 2026, multiplied by 12.

4 Includes leases that expire on or after June 30, 2026.

5 Includes leases that expire on or after June 30, 2026 and month-to-month leases disclosed in footnotes 1 and 4 of the table.

Our ability to re-lease or renew expiring space at rental rates equal to or in excess of current rental rates will impact our results of operations.

As of March 31, 2026, leases representing approximately 12.1% of the total annualized base rent of our portfolio are scheduled to expire during the remainder of the year ending December 31, 2026.

As of June 30, 2026, leases representing approximately 9.3% of the total annualized base rent of our portfolio are scheduled to expire during the remainder of the year ending December 31, 2026.

We currently expect that, on average, the rental rates we are likely to achieve on new (re-leased) or renewed leases for our remaining 2026 expirations will be above the rates currently being paid for the same space.

Cash rent changes on new and renewed leases totaling approximately 0.7 million square feet and 7.2 acres of improved land commencing during the three months ended March 31, 2026 were approximately 22.4% higher as compared to the previous rental rates for that same space.

We had a tenant retention ratio for the operating portfolio of 72.6% for the three months ended March 31, 2026.

We had a tenant retention ratio for the improved land portfolio of 45.8% for the three months ended March 31, 2026.

Cash rent changes on new and renewed leases totaling approximately 0.8 million square feet and 7.5 acres of improved land commencing during the three months ended June 30, 2026 were approximately 27.7% higher as compared to the previous rental rates for that same space, and cash rent changes on new and renewed leases totaling approximately 1.5 million square feet and 14.7 acres commencing during the six months ended June 30, 2026 were approximately 25.3% higher as compared to the previous rental rates for that same space.

We had a tenant retention ratio for the operating portfolio of 55.6% and 63.2%, respectively, for the three and six months ended June 30, 2026.

We had a tenant retention ratio for the improved land portfolio of 100.0% and 60.3%, respectively, for the three and six months ended June 30, 2026.

We define tenant retention ratio as the square footage or acreage of all leases commenced during the period that are rented by existing tenants divided by the square footage or acreage of all expiring leases during the reporting period.

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Acquisition Activity

During the three months ended March 31, 2026, we acquired two industrial properties, for a total purchase price of approximately $101.8 million.

During the three months ended June 30, 2026, we acquired four industrial properties, for a total purchase price of approximately $172.3 million.

The properties were acquired from unrelated third parties using existing cash on hand and proceeds from dispositions.

The following table sets forth the industrial properties we acquired during the three months ended March 31, 2026:

The following table sets forth the industrial properties we acquired during the three months ended June 30, 2026:

Property Name Location Acquisition Date Number of

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(in thousands) 1

Whitestone Logistics 3

College Point, Queens, NY February 18, 2026 1 81,000 $ 92,000 5.4 %

175 Canal Street West Bronx, NY February 20, 2026 1 38,000 9,800 5.3 %

201-395 Mendell St

San Francisco, CA June 4, 2026 1 65,000 $ 25,900 5.5 %

5751 General Washington Dr Alexandria, VA June 15, 2026 1 50,000 13,000 5.0 %

Washington Commerce Center Landover, MD June 16, 2026 3 305,000 77,100 5.5 %

Hialeah Gardens Commerce Center Hialeah Gardens, FL June 17, 2026 1 98,000 56,300 5.0 %

Total/Weighted Average 6 518,000 $ 172,300 5.3 %

1 Excludes intangible liabilities.

The total aggregate initial investment was approximately $103.2 million, including $1.4 million in capitalized closing costs and acquisition costs.

The total aggregate initial investment was approximately $179.7 million, including $2.3 million in capitalized closing costs and acquisition costs and $5.1 million in assumed intangible liabilities.

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.

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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 our Annual Report on Form 10-K for the year ended December 31, 2025 and in our other public filings.

3 Upon acquisition, this property was placed into redevelopment to construct interior finishes with a total expected investment of approximately $103.4 million.

Development and Redevelopment Activity

As of March 31, 2026, we had five properties under development or redevelopment that, upon completion, will consist of five buildings aggregating approximately 0.9 million square feet.

The following table summarizes certain information with respect to the properties under development or redevelopment as of March 31, 2026:

As of June 30, 2026, we had four properties under development or redevelopment that, upon completion, will consist of four buildings aggregating approximately 0.7 million square feet.

The following table summarizes certain information with respect to the properties under development or redevelopment as of June 30, 2026:

Property Name Total Expected

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Stabilization

Quarter % Pre-leased March 31, 2026

Quarter % Pre-leased June 30, 2026

Properties under development or redevelopment:

Countyline Phase IV 4

Countyline Building 34 5

$ 55,300 $ 52,500 5.7 % 219,900 Q2 2026 100.0 %

Countyline Building 35 51,300 38,300 6.0 % 219,900 Q4 2026 100.0 %

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

We define cash basis net operating income for the property as net operating

income excluding straight-line rents and amortization of lease intangibles.

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

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Countyline Phase IV, a landfill redevelopment adjacent to Florida’s Turnpike and the southern terminus of I-75, is expected to contain ten LEED-certified industrial distribution buildings at completion.

5 This development was completed on April 13, 2026.

During the three months ended March 31, 2026, we completed the development of one property.

The following table summarizes certain information with respect to the development property completed during the three months ended March 31, 2026:

5 In July 2026, we leased 100% of Whitestone Logistics.

The lease commenced July 24, 2026 and will expire July 2029.

In connection with the lease, the total expected investment in the property decreased to approximately $98.8 million and the estimated stabilized cap rate increased to 6.4%.

During the six months ended June 30, 2026, we completed the development of two properties.

The following table summarizes certain information with respect to the development properties completed during the six months ended June 30, 2026:

Property Name Location Total Expected

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Stabilized Cap

Post-Development Square Feet Completion Quarter

Post-Development Square Feet Completion Quarter % Leased

June 30, 2026

Countyline Building 32 Hialeah, FL $ 43,400 6.0 % 164,300 Q1 2026 100.0 %

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

Countyline Building 34 Hialeah, FL 55,300 5.7 % 220,000 Q2 2026 100.0 %

Total/Weighted Average $ 98,700 5.8 % 384,300 100.0 %

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.

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.

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

We capitalized interest associated with development, redevelopment and expansion activities of approximately $1.5 million and $1.3 million during the three months ended March 31, 2026 and 2025.

and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2025 and in our other public filings.

We capitalized interest associated with development, redevelopment and expansion activities of approximately $2.0 million and $1.1 million during the three months ended June 30, 2026 and 2025, respectively, and approximately $3.5 million and $2.4 million during the six months ended June 30, 2026 and 2025, respectively.

Disposition Activity

The following table summarizes the properties we sold during the three months ended March 31, 2026 (dollars in thousands):

The following table summarizes the properties we sold during the six months ended June 30, 2026 (dollars in thousands):

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

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This property was sold prior to being moved to the operating portfolio.

The following summarizes the condensed results of operations of the properties sold during the three months ended March 31, 2026 (dollars in thousands):

For the Three Months Ended March 31,

In addition to the properties sold, we recorded a net gain of approximately $0.1 million during the six months ended June 30, 2026 related to the settlement of eminent domain proceedings at the Terreno North Hackensack property.

The following summarizes the condensed results of operations of the properties sold during the three and six months ended June 30, 2026 (dollars in thousands):

For the Three Months Ended June 30, For the Six Months Ended June 30,

2026 2025 2026 2025

Rental revenues $ 45 $ 1,163 $ 1,729 $ 2,352

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Income (loss) from operations $ 13 $ (613) $ 924 $ (1,213)

Credit Facility

On January 7, 2026, we entered into the Fourth Amendment (the “Fourth Amendment”) to the Sixth Amended and Restated Senior Credit Agreement (as amended, the “Amended Facility”) in order to, among other things, add a $200.0 million term loan maturing in January 2031.

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

We have an at-the-market equity offering program (the “$500 Million ATM Program”) pursuant to which we may issue and sell shares of its common stock having an aggregate offering price of up to $500.0 million (approximately $491.4 million remaining as of March 31, 2026) in amounts and at times to be determined by us from time to time.

Senior Unsecured Notes

In July 2026, we repaid the $50.0 million tranche of our 10-year senior unsecured notes using existing cash on hand.

Such tranche of notes bore interest at 4.0% and had an original maturity date of July 7, 2026.

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 $359.0 million remaining as of June 30, 2026) in amounts and at times to be determined by us 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 February 16, 2026 and is no longer active.

Actual sales under the $500 Million ATM Program, if any, will depend on a variety of factors to be determined by us from time to time, including, among others, market conditions, the trading price of our common stock, determinations by us of the appropriate sources of funding for us and potential uses of funding available to us.

During the three months ended March 31, 2026, we issued an aggregate of 2,081,288 shares of common stock at a weighted average offering price of $64.85 per share under the Previous $500 Million ATM Program and the $500 Million ATM Program, resulting in net proceeds of approximately $133.0 million and paying total compensation to the applicable sales agents of approximately $2.0 million.

During the three and six months ended June 30, 2026, we issued an aggregate of 1,992,940 and 4,074,228 shares, respectively, of common stock at a weighted average offering price of $66.46 and $65.64 per share, respectively, under the Previous $500 Million ATM Program and the $500 Million ATM Program, resulting in net proceeds of approximately $130.5 million and $263.5 million, respectively, and paying total compensation to the applicable sales agents of approximately $1.9 million and $3.9 million, respectively.

Share Repurchase Program

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The program may be suspended or discontinued at any time.

As of March 31, 2026, we had not repurchased any shares of our common stock pursuant to our share repurchase program.

As of June 30, 2026, we had not repurchased any shares of our common stock pursuant to our share repurchase program.

Dividend and Distribution Activity

On May 5, 2026, our Board of Directors declared a cash dividend in the amount of $0.52 per share of our common stock payable on July 10, 2026 to the stockholders of record as of the close of business on June 26, 2026.

On August 4, 2026, our Board of Directors declared a cash dividend in the amount of $0.57 per share of our common stock payable on October 9, 2026 to the stockholders of record as of the close of business on September 30, 2026.

Contractual Commitments

As of May 5, 2026, we had two outstanding contracts with third-party sellers to acquire two industrial properties for a total purchase price of approximately $24.4 million.

As of August 4, 2026, we had five outstanding contracts with third-party sellers to acquire five industrial properties for a total purchase price of approximately $89.5 million.

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

As of May 5, 2026, we had executed three non-binding access agreements or letters of intent with third-party sellers to acquire three industrial properties for a total anticipated purchase price of approximately $132.1 million.

In the normal course of our business, we enter into non-binding access agreements and letters of intent to purchase properties from third parties that may obligate us to make payments or perform other obligations upon the occurrence of certain events, including the execution of a purchase and sale agreement and satisfactory completion of various due diligence matters.

There can be no assurance that we will enter into a purchase and sale agreement with respect to these properties or otherwise complete any such prospective purchases on the terms described or at all.

As of August 4, 2026, we had executed one non-binding letter of intent with a third-party seller to acquire one industrial property for a total anticipated purchase price of approximately $23.1 million.

In the normal course of our business, we enter into non-binding letters of intent to purchase properties from third parties that may obligate us to make payments or perform other obligations upon the occurrence of certain events, including the execution of a purchase and sale agreement and satisfactory completion of various due diligence matters.

There can be no assurance that we will enter into a purchase and sale agreement with respect to this property or otherwise complete any such prospective purchases on the terms described or at all.

economy experienced a significant increase in inflation rates in recent years.

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In addition, leases with respect to approximately 62.3% 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.

Approximately 97.4% of our leased space includes fixed rental increases or Consumer Price Index-based rental increases.

Trade Policies, Tariffs and Related Government Actions

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Our primary cash expenses consist of our property operating expenses, which include:

real estate taxes, repairs and maintenance, management expenses, insurance, utilities, general and administrative expenses, which include compensation costs, office expenses, professional fees and other administrative expenses, acquisition costs, which include third-party costs paid to brokers and consultants, and interest expense, primarily on our revolving credit facility, term loans, mortgage loan and senior unsecured notes.

real estate taxes, repairs and maintenance, management expenses, insurance, utilities, general and administrative expenses, which include compensation

costs, office expenses, professional fees and other administrative expenses, acquisition costs, which include third-party costs paid to brokers and consultants, and interest expense, primarily on our revolving credit facility, term loans, mortgage loan and senior unsecured notes.

Our consolidated results of operations often are not comparable from period to period due to the impact of property acquisitions at various times during the course of such periods.

The results of operations of any acquired property are included in our financial statements as of the date of its acquisition.

The analysis of our results below for the three months ended March 31, 2026 and 2025 includes the changes attributable to same store properties.

The same store pool for the comparison of the three months ended March 31, 2026 and 2025 includes all properties that were owned and in operation as of March 31, 2026 and since January 1, 2025 and excludes properties that were either disposed of prior to, held for sale to a third party or in development or redevelopment as of March 31, 2026.

As of March 31, 2026, the same store pool consisted of 280 buildings aggregating approximately 17.5 million square feet representing approximately 87.8% of our total square feet owned and 44 improved land parcels consisting of approximately 146.4 acres representing approximately 99.6% of our total acreage owned.

As of March 31, 2026, the non-same store properties, which we acquired, developed or redeveloped, or sold during 2026 and 2025 or which were held for sale or in development or redevelopment as of March 31, 2026, consisted of 30 buildings aggregating approximately 2.4 million square feet, two improved land parcels consisting of approximately 0.6 acres and five properties under development or redevelopment.

As of March 31, 2026 and 2025, our consolidated same store pool occupancy was approximately 97.6% and 96.4%, respectively.

The analysis of our results below for the three and six months ended June 30, 2026 and 2025 includes the changes attributable to same store properties.

The same store pool for the comparison of the three and six months ended June 30, 2026 and 2025 includes all properties that were owned and in operation as of June 30, 2026 and since January 1, 2025 and excludes properties that were either disposed of prior to, held for sale to a third party or in development or redevelopment as of June 30, 2026.

As of June 30, 2026, the same store pool consisted of 280 buildings aggregating approximately 17.5 million square feet representing approximately 85.1% of our total square feet owned and 44 improved land parcels consisting of approximately 146.4 acres representing approximately 99.6% of our total acreage owned.

As of June 30, 2026, the non-same store properties, which we acquired, developed or redeveloped, or sold during 2026 and 2025 or which were held for sale or in development or redevelopment as of June 30, 2026, consisted of 36 buildings aggregating approximately 3.1 million square feet, two improved land parcels consisting of approximately 0.6 acres and four properties under development or redevelopment.

As of June 30, 2026 and 2025, our consolidated same store pool occupancy was approximately 97.8% and 97.7%, respectively.

Our future financial condition and results of operations, including rental revenues, straight-line rents and amortization of lease intangibles, may be impacted by the acquisitions of additional properties, and expenses may vary materially from historical results.

Comparison of the Three Months Ended March 31, 2026 to the Three Months Ended March 31, 2025:

For the Three Months Ended March 31,

Comparison of the Three Months Ended June 30, 2026 to the Three Months Ended June 30, 2025:

For the Three Months Ended June 30,

2026 2025 $ Change % Change

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

2 Includes 2026 and 2025 acquisitions and dispositions, two improved land parcels, five properties under development or redevelopment and two buildings held for sale as of March 31, 2026.

2 Includes 2026 and 2025 acquisitions and dispositions, two improved land parcels, four properties under development or redevelopment and one building held for sale as of June 30, 2026.

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

See “Non-GAAP Financial Measures” in this Quarterly Report on Form 10-Q 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 $14.0 million for the three months ended March 31, 2026 compared to the same period from the prior year due primarily to increased revenue on new and renewed leases during 2026 and 2025 and property acquisitions during 2025.

The increase in total revenues was partially offset by property dispositions during 2026 and a decrease in occupancy compared to the same period from the prior year.

Cash rents on new and renewed leases totaling approximately 0.7 million square feet and 7.2 acres of improved land commencing during the three months ended March 31, 2026 increased approximately 22.4% compared to the previous rental rates.

For the three months ended March 31, 2026 and 2025, approximately $5.8 million and $3.5 million, respectively, was recorded in straight-line rental revenues related to contractual rent abatements given to certain tenants and approximately $0.4 million and $0.2 million, respectively, was recorded in lease termination revenue.

Total revenues increased approximately $12.5 million for the three months ended June 30, 2026 compared to the same period from the prior year due primarily to increased revenue on new and renewed leases during 2026 and 2025 and property acquisitions during 2025.

The increase in total revenues was partially offset by property dispositions during 2026.

Cash rents on new and renewed leases totaling approximately 0.8 million square feet and 7.5 acres of improved land commencing during the three months ended June 30, 2026 increased approximately 27.7% compared to the previous rental rates.

For the three months ended June 30, 2026 and 2025, approximately $5.7 million and $3.0 million, respectively, was recorded in straight-line rental revenues related to contractual rent abatements given to certain tenants and approximately $0.5 million and $0.5 million, respectively, was recorded in lease termination revenue.

Property operating expenses.

Total property operating expenses increased approximately $3.0 million during the three months ended March 31, 2026 compared to the same period from the prior year.

Total property operating expenses increased approximately $1.7 million during the three months ended June 30, 2026 compared to the same period from the prior year.

The increase in total property operating expenses was primarily due to an increase of approximately $1.4 million attributable to property acquisitions during 2025 as well as increases in real estate taxes.

The increase in total property operating expenses was partially offset by property dispositions during 2026 as well as decreases in insurance premiums.

Depreciation and amortization.

Depreciation and amortization increased approximately $1.1 million during the three months ended June 30, 2026 compared to the same period from the prior year primarily due to property acquisitions during 2026 and 2025, partially offset by property dispositions during 2026 and 2025.

General and administrative expenses.

General and administrative expenses increased approximately $1.5 million during the three months ended June 30, 2026 compared to the same period from the prior year primarily due to increased compensation expenses, including increased restricted stock amortization, and an increase in salaries compared to the same period from the prior year.

Interest and other income.

Interest and other income decreased approximately $0.2 million for the three months ended June 30, 2026 compared to the same period from the prior year primarily due to lower cash and cash equivalent balances and lower interest rates on those balances.

Interest expense, including amortization.

Interest expense increased approximately $1.3 million for the three months ended June 30, 2026 compared to the same period from the prior year.

This was primarily due to higher outstanding debt during the three months ended June 30, 2026 compared to the same period from the prior year.

Gain on sales of real estate investments.

Gain on sales of real estate investments decreased approximately $42.6 million for the three months ended June 30, 2026 compared to the same period from the prior year.

We recognized an aggregate gain of approximately $12.0 million from the sale of one property during the three months ended June 30, 2026 compared to an aggregate gain of approximately $54.6 million from the sale of two properties during the three months ended June 30, 2025.

Comparison of the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025:

For the Six Months Ended June 30,

2026 2025 $ Change % Change

(Dollars in thousands)

Rental revenues 1

Same store $ 172,305 $ 161,393 $ 10,912 6.8 %

Non-same store operating properties 2

25,764 13,343 12,421 93.1 %

Total rental revenues 198,069 174,736 23,333 13.4 %

Tenant expense reimbursements 1

Same store 45,617 44,686 931 2.1 %

Non-same store operating properties 2

5,465 3,232 2,233 69.1 %

Total tenant expense reimbursements 51,082 47,918 3,164 6.6 %

Total revenues 249,151 222,654 26,497 11.9 %

Property operating expenses

Same store 53,739 52,698 1,041 2.0 %

Non-same store operating properties 2

7,681 3,977 3,704 93.1 %

Total property operating expenses 61,420 56,675 4,745 8.4 %

Net operating income 3

Same store 164,183 153,381 10,802 7.0 %

Non-same store operating properties 2

23,548 12,598 10,950 86.9 %

Total net operating income $ 187,731 $ 165,979 $ 21,752 13.1 %

Other costs and expenses

Depreciation and amortization 58,642 54,953 3,689 6.7 %

General and administrative 26,265 24,084 2,181 9.1 %

Acquisition costs and other 41 231 (190) (82.3) %

Total other costs and expenses 84,948 79,268 5,680 7.2 %

Other income (expense)

Interest and other income 2,293 3,167 (874) (27.6) %

Interest expense, including amortization (17,324) (14,964) (2,360) 15.8 %

Gain on sales of real estate investments 39,249 66,485 (27,236) (41.0) %

Total other income 24,218 54,688 (30,470) (55.7) %

Net income $ 127,001 $ 141,399 $ (14,398) (10.2) %

2018-11, Leases (Topic 842), Targeted Improvements, allows us to elect not to separate lease and non-lease rental income.

All rental income earned pursuant to tenant leases is reflected as one line, “Rental revenues and tenant expense reimbursements” on our accompanying consolidated statements of operations.

We believe that the above presentation of rental revenues and tenant expense reimbursements is not, and is not intended to be, a presentation in accordance with GAAP.

We believe this information is frequently used by management, investors, and other interested parties to evaluate our performance.

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

2 Includes 2026 and 2025 acquisitions and dispositions, two improved land parcels, four properties under development or redevelopment and one building held for sale as of June 30, 2026.

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

Total revenues increased approximately $26.5 million for the six months ended June 30, 2026 compared to the same period from the prior year primarily due to property acquisitions during 2026 and 2025, increased revenue on new and renewed leases and lease termination fees.

The increase in total revenues was partially offset by property dispositions during 2026.

Cash rents on new and renewed leases totaling approximately 1.5 million square feet and 14.7 acres commencing during the six months ended June 30, 2026 increased approximately 25.3% compared to the previous rental rates.

For the six months ended June 30, 2026 and 2025, approximately $11.5 million and $6.5 million, respectively, was recorded in straight-line rental revenues related to contractual rent abatements given to certain tenants and approximately $1.0 million and $0.7 million, respectively, was recorded in lease termination revenue.

Total revenues for the six months ended June 30, 2026 and 2025 were partially offset by approximately $0.6 million and $3.3 million, respectively, of bad debt expense and straight-line rent write-offs for terminated leases.

Property operating expenses.

Total property operating expenses increased approximately $4.7 million during the six months ended June 30, 2026 compared to the same period from the prior year.

The increase in total property operating expenses was primarily due to property acquisitions during 2026 and 2025 as well as increases in real estate taxes.

The increase in total property operating expenses was partially offset by property dispositions during 2026.

Depreciation and amortization.

Depreciation and amortization increased approximately $2.6 million during the three months ended March 31, 2026 compared to the same period from the prior year primarily due to property acquisitions during 2026 and 2025, partially offset by property dispositions during 2026 and 2025.

Depreciation and amortization increased approximately $3.7 million during the six months ended June 30, 2026 compared to the same period from the prior year primarily due to property acquisitions during 2026 and 2025, partially offset by property dispositions during 2026.

General and administrative expenses.

General and administrative expenses increased approximately $0.7 million during the three months ended March 31, 2026 compared to the same period from the prior year primarily due to increased compensation expenses, including increased restricted stock amortization and LTIP expense, and an increase in salaries compared to the same period from the prior year.

General and administrative expenses increased approximately $2.2 million for the six months ended June 30, 2026 compared to the same period from the prior year primarily due to increased compensation expenses, including increased restricted stock amortization, and an increase in salaries compared to the same period from the prior year.

Interest and other income.

Interest and other income decreased approximately $0.7 million for the three months ended March 31, 2026 compared to the same period from the prior year primarily due to lower cash and cash equivalent balances and lower interest rates on those balances.

Interest and other income decreased approximately $0.9 million during the six months ended June 30, 2026 compared to the same period from the prior year primarily due to lower cash and cash equivalent balances throughout 2026.

Interest expense, including amortization.

Interest expense increased approximately $1.1 million for the three months ended March 31, 2026 compared to the same period from the prior year.

This was primarily due to higher outstanding debt during the three months ended March 31, 2026 compared to the same period from the prior year.

Interest expense increased approximately $2.4 million for the six months ended June 30, 2026 compared to the same period from the prior year.

This was primarily due to higher outstanding debt during the six months ended June 30, 2026.

Gain on sales of real estate investments.

Gain on sales of real estate investments increased approximately $15.4 million for the three months ended March 31, 2026 compared to the same period from the prior year.

We recognized an aggregate gain of approximately $27.2 million from the sale of two properties during the three months ended March 31, 2026 compared to an aggregate gain of approximately $11.8 million from the sale of two properties during the three months ended March 31, 2025.

Gain on sales of real estate investments decreased approximately $27.2 million for the six months ended June 30, 2026 compared to the same period from the prior year.

We recognized an aggregate gain of approximately $39.1 million from the sale of three properties during the six months ended June 30, 2026, as compared to an aggregate gain of approximately $66.5 million from the sale of four properties during the same period from the prior year.

Liquidity and Capital Resources

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The success of our acquisition strategy may depend, in part, on our ability to obtain and borrow under our revolving credit facility and to access additional capital through issuances of equity and debt securities.

Moody’s assigned us an issuer rating of Baa1 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 rating 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.

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Equity Sources of Liquidity

The following sets forth certain information regarding our current at-the-market common stock offering program as of March 31, 2026:

The following sets forth certain information regarding our current at-the-market common stock offering program as of June 30, 2026:

ATM Stock Offering Program Date Implemented Maximum Aggregate Offering Price (in thousands) Aggregate Common Stock Available (in thousands)

$500 Million ATM Program February 17, 2026 $ 500,000 $ 358,974

The tables below set forth the activity under our at-the-market common stock offering programs during the three months ended March 31, 2026 and 2025, respectively:

The tables below set forth the activity under our at-the-market common stock offering programs during the three and six months ended June 30, 2026 and 2025, respectively:

For the Three Months Ended Shares Sold Weighted Average Price Per Share Net Proceeds

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(in thousands)

March 31, 2026 2,081,288 $ 64.85 $ 133,024 $ 1,957

March 31, 2025 3,506,371 $ 67.71 $ 233,980 $ 3,443

June 30, 2026 1,992,940 $ 66.46 $ 130,526 $ 1,920

June 30, 2025 — $ — $ — $ —

For the Six Months Ended

Shares Sold Weighted Average

Price Per Share Net Proceeds

(in thousands) Sales Commissions

(in thousands)

June 30, 2026 4,074,228 $ 65.64 $ 263,548 $ 3,878

June 30, 2025 3,506,371 $ 67.71 $ 233,980 $ 3,443

Debt Sources of Liquidity

As of March 31, 2026, 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”).

Additionally, the 10 basis point Secured Overnight Financing Rate (“SOFR”) credit spread adjustment premium was eliminated on all credit facility borrowings, including term loans.

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.

As of March 31, 2026, there were no outstanding borrowings on the revolving credit facility and $400.0 million of borrowings outstanding on the term loans.

As of June 30, 2026, 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 2026, we repaid the $50.0 million tranche of our 10-year senior unsecured notes using existing cash on hand.

Such tranche of notes bore interest at 4.0% and had an original maturity date of July 7, 2026.

Our 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, a $100.0 million term loan that matures in January 2028, and a $200.0 million term loan that matures in January 2031.

As of June 30, 2026, there were no outstanding borrowings on the revolving credit facility and $400.0 million of borrowings outstanding on the term loans.

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.

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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% (1.00% as of March 31, 2026) for the revolving credit facility and 1.15% to 1.65% (1.15% as of

March 31, 2026) for the term loans, depending on the ratio of our outstanding consolidated indebtedness to the value of our consolidated gross asset value.

The applicable SOFR margin will range from 1.00% to 1.45% (1.00% as of June 30, 2026) for the revolving credit facility and 1.15% to 1.65% (1.15% as of June 30, 2026) for the term loans, depending on the ratio of our outstanding consolidated indebtedness to the value of our consolidated gross asset value.

Subsequent to June 30, 2026, the applicable SOFR margin on the revolving credit facility and term loans decreased from 1.00% to 0.775% and 1.15% to 0.85%, respectively, as a result of our change from a leverage ratio grid to a ratings grid in accordance with the Amended Facility.

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.

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The Amended Facility and the Senior Unsecured Notes include a series of financial and other covenants with which we must comply.

We were in compliance with the covenants under the Amended Facility and the Senior Unsecured Notes as of March 31, 2026 and December 31, 2025.

As of March 31, 2026 and December 31, 2025, 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.

We were in compliance with the covenants under the Amended Facility and the Senior Unsecured Notes as of June 30, 2026 and December 31, 2025.

As of June 30, 2026 and December 31, 2025, 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 March 31, 2026 and December 31, 2025 was approximately $2.2 million and $2.5 million, respectively.

As of March 31, 2026 and December 31, 2025, we held cash and cash equivalents totaling approximately $87.9 million and $25.0 million, respectively.

The following tables summarize our debt maturities and principal payments as of and for the three months ended March 31, 2026, and market capitalization, capitalization ratios, Adjusted EBITDA, interest coverage, fixed charge coverage and debt ratios as of and for the three months ended March 31, 2026 and 2025 (dollars in thousands, except per share data):

Facility Term Loan Senior

The unamortized fair value adjustment as of June 30, 2026 and December 31, 2025 was approximately $1.9 million and $2.5 million, respectively.

As of June 30, 2026 and December 31, 2025, we held cash and cash equivalents totaling approximately $51.2 million and $25.0 million, respectively.

The following tables summarize our debt maturities and principal payments as of and for the six months ended June 30, 2026, and market capitalization, capitalization ratios, Adjusted EBITDA, interest coverage, fixed charge coverage and debt ratios as of and for the six months ended June 30, 2026 and 2025 (dollars in thousands, except per share data):

Notes Mortgage

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Weighted average interest rate n/a 4.8% 3.0% 3.9% 3.8%

As of March 31, 2026 As of March 31, 2025

1 In July 2026, we repaid the $50.0 million tranche of 10-year Senior Unsecured Notes using existing cash on hand.

The notes bore interest at 4.0% and had an original maturity date of July 7, 2026.

2 As of August 4, 2026, there were $45.0 million of borrowings outstanding on the revolving credit facility.

As of June 30, 2026 As of June 30, 2025

Total Debt, net $ 942,470 $ 742,386

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Interest Coverage 7

10.0 x 10.3 x

Fixed Charge Coverage 8

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Weighted Average Maturity of Total Debt (years) 2.8 3.3

1 Includes 492,168 and 446,411 shares of unvested restricted stock outstanding as of March 31, 2026 and 2025, respectively.

Also includes 589,823 and 533,423 shares held in the Deferred Compensation Plan as of March 31, 2026 and 2025, respectively.

2 Closing price of a share of our common stock on the New York Stock Exchange on March 31, 2026 and March 31, 2025, 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 two buildings held for sale as of March 31, 2026.

1 Includes 481,510 and 438,507 shares of unvested restricted stock outstanding as of June 30, 2026 and 2025, respectively.

Also includes 589,823 and 533,423 shares held in the Deferred Compensation Plan as of June 30, 2026 and 2025, respectively.

2 Closing price of a share of our common stock on the New York Stock Exchange on June 30, 2026 and 2025, 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 building held for sale as of June 30, 2026.

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

5 Floating rate debt as a percentage of total debt is calculated as floating rate debt, net of deferred financing costs, divided by total debt, net of deferred financing costs.

6 Earnings before interest, taxes, gains (losses) from sales of property, depreciation and amortization, acquisition costs and stock-based compensation (“Adjusted EBITDA”) for the three months ended March 31, 2026 and 2025, respectively.

6 Earnings before interest, taxes, gains (losses) from sales of property, depreciation and amortization, acquisition costs and stock-based compensation (“Adjusted EBITDA”) for the six months ended June 30, 2026 and 2025, respectively.

See “Non-GAAP Financial Measures” in this Quarterly Report on Form 10-Q 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.

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9 Net debt-to-Adjusted EBITDA is calculated as net debt divided by annualized Adjusted EBITDA for the three months ended March 31, 2026 and 2025, respectively.

9 Net debt-to-Adjusted EBITDA is calculated as net debt divided by annualized Adjusted EBITDA for the three months ended June 30, 2026 and 2025, respectively.

See “Non-GAAP Financial Measures” in this Quarterly Report on Form 10-Q 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 table sets forth the cash dividends paid or payable per share during the three months ended March 31, 2026:

The following table sets forth the cash dividends paid or payable per share during the six months ended June 30, 2026:

For the Three

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March 31, 2026 Common Stock $ 0.52 February 3, 2026 March 27, 2026 April 10, 2026

June 30, 2026 Common Stock $ 0.52 May 5, 2026 June 26, 2026 July 10, 2026

Sources and Uses of Cash

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Cash From Operating Activities.

Net cash provided by operating activities totaled approximately $61.9 million for the three months ended March 31, 2026 compared to approximately $61.4 million for the three months ended March 31, 2025.

This increase in cash provided by operating activities for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 is primarily attributable to additional cash flows generated from the properties acquired during 2026 and 2025 and increased rents on new and renewed leases at our same store properties.

Net cash provided by operating activities totaled approximately $136.9 million for the six months ended June 30, 2026 compared to approximately $122.1 million for the six months ended June 30, 2025.

This increase in cash provided by operating activities for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 is primarily attributable to additional cash flows generated from the properties acquired during 2026 and 2025 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 $73.7 million and $23.8 million for the three months ended March 31, 2026 and 2025, respectively.

Such amounts consisted primarily of cash paid for property acquisitions of approximately $103.4 million in the three months ended March 31, 2026 and additions to capital improvements of approximately $24.6 million and $47.9 million during the three months ended March 31, 2026 and 2025, respectively.

Such amounts were partially offset by proceeds from sales of real estate investments during the three months ended March 31, 2026 and 2025 of approximately $54.4 million and $24.0 million, respectively.

Net cash used in investing activities was approximately $260.0 million and $62.1 million for the six months ended June 30, 2026 and 2025, respectively.

Such amounts consisted primarily of cash paid for property acquisitions of approximately $277.3 million and $126.1 million, respectively, and additions to capital improvements of approximately $66.7 million and $71.7 million during the six months ended June 30, 2026 and 2025, respectively.

Such amounts were partially offset by proceeds from sales of real estate investments during the six months ended June 30, 2026 and 2025 of approximately $83.9 million and $135.7 million, respectively.

Cash From Financing Activities.

Net cash provided by financing activities was approximately $74.7 million for the three months ended March 31, 2026, which consisted primarily of approximately $133.0 million in net proceeds from the issuance of common stock, and $200.0 million in term loan borrowings, partially offset by approximately $54.1 million in equity dividend payments, and repayment of $215.0 million of borrowings on the revolving credit facility.

Net cash provided by financing activities was approximately $101.2 million for the three months ended March 31, 2025, which consisted primarily of approximately $234.0 million in net proceeds from the issuance of common stock, and $50.0 million in revolving credit facility borrowings, partially offset by approximately $48.9 million in equity dividend payments, and repayment of $132.0 million of borrowings on the revolving credit facility.

Net cash provided by financing activities was approximately $149.8 million for the six months ended June 30, 2026, which consisted primarily of approximately $263.6 million in net proceeds from the issuance of common stock, $45.0 million of borrowings on the revolving credit facility and $200.0 million in term loan borrowings, partially offset by approximately $109.4 million in equity dividend payments, and repayment of $245.0 million of borrowings on the revolving credit facility.

Net cash provided by financing activities was approximately $50.5 million for the six months ended June 30, 2025, which consisted primarily of approximately $234.0 million in net proceeds from the issuance of common stock, and $50.0 million in revolving credit facility borrowings, partially offset by approximately $99.5 million in equity dividend payments, and repayment of $132.0 million of borrowings on the revolving credit facility.

Critical Accounting Policies And Estimates

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Material Cash Commitments

Subsequent to March 31, 2026, as of May 5, 2026, we had two outstanding contracts with third-party sellers to acquire two industrial properties for a total purchase price of approximately $24.4 million.

Subsequent to June 30, 2026, as of August 4, 2026, we had five outstanding contracts with third-party sellers to acquire five industrial properties for a total purchase price of approximately $89.5 million.

There is no assurance that we will acquire the properties under contract 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 March 31, 2026 (dollars in thousands):

The following table summarizes our material cash commitments due by period as of June 30, 2026 (dollars in thousands):

Material Cash Commitments Less than 1

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Operating lease commitments 2

1,023 2,353 966 1,479 5,821

Material construction contracts 14,654 — — — 14,654

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Total $ 271,200 $ 346,950 $ 433,351 $ 52,189 $ 1,103,690

1 As of May 5, 2026.

There can be no assurance that we will enter into a purchase and sale agreement with respect to these properties or otherwise complete any such prospective purchases on the terms described or at all.

1 As of August 4, 2026.

2 Includes future minimum lease payments associated with a new office lease entered into during the six months ended June 30, 2026, which is expected to commence in the fourth quarter of 2026.

There can be no assurance that we will enter into a purchase and sale agreement with respect to this property or otherwise complete any such prospective purchases on the terms described or at all.

Non-GAAP Financial Measures

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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.

The following table reflects the calculation of FFO reconciled from net income for the three months ended March 31, 2026 and 2025 (dollars in thousands except per share data):

For the Three Months Ended March 31,

2026 2025 $ Change % Change

The following table reflects the calculation of FFO reconciled from net income for the three and six months ended June 30, 2026 and 2025 (dollars in thousands except per share data):

For the Three Months Ended June 30, For the Six Months Ended June 30,

2026 2025 $ Change % Change 2026 2025 $ Change % Change

$ 57,567 $ 93,273 $ (35,706) (38.3) % $ 127,001 $ 141,399 $ (14,398) (10.2) %

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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 497,868 and 445,765 of weighted average unvested restricted shares outstanding for the three months ended March 31, 2026 and 2025, respectively.

FFO increased by approximately $8.5 million for the three months ended March 31, 2026 compared to the same period from the prior year due primarily to property acquisitions during 2025 as well as same store NOI growth of approximately $5.6 million for the three months ended March 31, 2026, compared to the same period 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 LTIP expense and an increase in salaries for the three months ended March 31, 2026 compared to the same period from the prior year.

Under this method, allocations were made to 488,215 and 439,918 of weighted average unvested restricted shares outstanding for the three months ended June 30, 2026 and 2025, respectively, and 493,015 and 442,825 of weighted average unvested restricted shares outstanding for the six months ended June 30, 2026 and 2025, respectively.

FFO increased by approximately $8.0 million and $16.5 million for the three and six months ended June 30, 2026, respectively, compared to the same periods from the prior year due primarily to property acquisitions during 2025 and 2026 as well as same store NOI growth of approximately $5.2 million and $10.8 million for the three and six months ended June 30, 2026, 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 salaries for the three and six months ended June 30, 2026 compared to the same periods from the prior year.

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.

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As we are currently in a growth phase, acquisition costs are excluded from Adjusted EBITDA to allow for the comparison of our operating performance to that of stabilized companies.

The following table reflects the calculation of Adjusted EBITDA reconciled from net income for the three months ended March 31, 2026 and 2025 (dollars in thousands):

For the Three Months Ended March 31,

2026 2025 $ Change % Change

The following table reflects the calculation of Adjusted EBITDA reconciled from net income for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):

For the Three Months Ended June 30, For the Six Months Ended June 30,

2026 2025 $ Change % Change 2026 2025 $ Change % Change

Net income $ 57,567 $ 93,273 $ (35,706) (38.3) % $ 127,001 $ 141,399 $ (14,398) (10.2) %

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We compute cash-basis same store NOI as same store NOI excluding straight-line rents and amortization of lease intangibles.

The same store pool includes all properties that were owned and in operation as of March 31, 2026 and since January 1, 2025 and excludes properties that were either disposed of prior to, held for sale to a third party or in development or redevelopment as of March 31, 2026.

As of March 31, 2026, the same store pool consisted of 280 buildings aggregating approximately 17.5 million square feet representing approximately 87.8% of our total square feet owned and 44 improved land parcels containing approximately 146.4 acres representing approximately 99.6% of our total acreage owned.

The same store pool includes all properties that were owned and in operation as of June 30, 2026 and since January 1, 2025 and excludes properties that were either disposed of prior to, held for sale to a third party or in development or redevelopment as of June 30, 2026.

As of June 30, 2026, the same store pool consisted of 280 buildings aggregating approximately 17.5 million square feet representing approximately 85.1% of our total square feet owned and 44 improved land parcels containing approximately 146.4 acres representing approximately 99.6% of our total acreage owned.

We believe that presenting NOI, same store NOI and cash-basis same store NOI provides useful information to investors regarding the operating performance of our properties because NOI excludes certain items that are not considered to be controllable in connection with the management of the properties, such as depreciation, amortization, general and administrative expenses, acquisition costs and interest expense.

By presenting same store NOI and cash-basis same store NOI, the operating results on a same store basis are directly comparable from period to period.

The following table reflects the calculation of NOI, same store NOI and cash-basis same store NOI reconciled from net income for the three months ended March 31, 2026 and 2025 (dollars in thousands):

For the Three Months Ended March 31,

2026 2025 $ Change % Change

The following table reflects the calculation of NOI, same store NOI and cash-basis same store NOI reconciled from net income for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):

For the Three Months Ended June 30, For the Six Months Ended June 30,

2026 2025 $ Change % Change 2026 2025 $ Change % Change

$ 57,567 $ 93,273 $ (35,706) (38.3) % $ 127,001 $ 141,399 $ (14,398) (10.2) %

6 unchanged sentences

(5,549) 86.8 % (23,548) 4

(10,950) 86.9 %

Same store NOI

$ 5,213 6.7 % $ 164,183 5

$ 10,802 7.0 %

Less straight-line rents and amortization of lease intangibles 6

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Cash-basis same store NOI excluding termination fees $ 74,265 $ 69,560 $ 4,705 6.8 % $ 146,503 $ 136,172 $ 10,331 7.6 %

1 Includes approximately $0.4 million and $0.2 million of lease termination income for the three months ended March 31, 2026 and 2025, respectively.

2 Includes 2026 and 2025 acquisitions and dispositions, two improved land parcels, five properties under development or redevelopment and two buildings held for sale as of March 31, 2026.

3 Includes approximately $0.4 million and $0.1 million of lease termination income for the three months ended March 31, 2026 and 2025, respectively.

1 Includes approximately $0.5 million of lease termination income for both the three months ended June 30, 2026 and 2025, and approximately $1.0 million and $0.7 million of lease termination income for the six months ended June 30, 2026 and 2025, respectively.

2 Includes 2026 and 2025 acquisitions and dispositions, two improved land parcels, four properties under development or redevelopment and one building held for sale as of June 30, 2026.

3 Includes approximately $0.5 million and $0.3 million of lease termination income for the three months ended June 30, 2026 and 2025, respectively.

4 Includes 2026 and 2025 acquisitions and dispositions, two improved land parcels, four properties under development or redevelopment and one building held for sale as of June 30, 2026.

5 Includes approximately $1.0 million and $0.4 million of lease termination income for the six months ended June 30, 2026 and 2025, 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 $6.0 million for the three months ended March 31, 2026 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 March 31, 2026 and 2025, total contractual rent abatements of approximately $3.7 million and $3.5 million, respectively, were given to certain tenants in the same store pool and approximately $0.4 million and $0.1 million, respectively, in lease termination income was received from certain tenants in the same store pool.

Approximately $2.2 million of the increase in cash-basis same store NOI for the three months ended March 31, 2026 related to properties that were acquired vacant or with near term expirations in 2025.

Additionally, during the three months ended March 31, 2026, we gave contractual rent abatements of approximately $1.9 million (approximately 290 basis points) to tenants with new leases at our Manhattan and Morton properties.

Cash-basis same store NOI increased by approximately $4.9 million for the three months ended June 30, 2026 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 June 30, 2026 and 2025, total contractual rent abatements of approximately $4.1 million and $2.2 million, respectively, were given to certain tenants in the same store pool and approximately $0.5 million and $0.3 million, respectively, in lease termination income was received from certain tenants in the same store pool.

Approximately $1.5 million of the increase in cash-basis same store NOI for the three months ended June 30, 2026 related to properties that were acquired vacant or with near term expirations in 2025.

Additionally, during the three months ended June 30, 2026, we gave contractual rent abatements of approximately $1.5 million (approximately 210 basis points) to tenants with new leases at our Manhattan and Morton properties.

The aggregate rent change for these leases was approximately 75.7%.

Cash-basis same store NOI increased by approximately $10.9 million for the six months ended June 30, 2026 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 six months ended June 30, 2026 and 2025, total contractual rent abatements of approximately $7.8 million and $5.7 million, respectively, were given to certain tenants in the same store pool.

For the six months ended June 30, 2026 and 2025, approximately $1.0 million and $0.4 million, respectively, in lease termination income was received from certain tenants in the same store pool.

In addition, approximately $3.7 million of the increase in cash-basis same store NOI for the six months ended June 30, 2026 related to properties that were acquired vacant or with near term expirations in 2025.

Additionally, during the six months ended June 30, 2026, we gave contractual rent abatements of approximately $3.4 million (approximately 249 basis points) to tenants with new leases at our Manhattan and Morton properties.

The aggregate rent change for these leases was approximately 75.7%.

We compute net debt as total debt, less deferred financing costs and cash and cash equivalents.

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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