BRT Apartments Corp.

Previous wording

We own and operate multifamily properties. These properties may be wholly owned by us or by unconsolidated joint ventures in which we contributed a portion of the equity. At June 30, 2026, we: (i) wholly-own 21 multifamily properties with an aggregate of 5,420 units and a carrying value of $585.3 million; (ii) have ownership interests, through unconsolidated entities, in ten multifamily properties with 2,891 units and a carrying value of $43.3 million; (iii) have preferred equity interests in two multifamily properties with a carrying value of $17.8 million; and (iv) own other assets, through consolidated and unconsolidated subsidiaries, with a carrying value of $1.5 million. The 31 multifamily properties are located in 11 states; most of these properties are located in the Southeast United States and Texas.

Current wording

We own and operate multifamily properties. These properties may be wholly owned by us or by unconsolidated joint ventures in which we contributed a portion of the equity. At September 30, 2026, we: (i) wholly-own 21 multifamily properties with an aggregate of 5,420 units and a carrying value of $580.8 million; (ii) have ownership interests, through unconsolidated entities, in 11 multifamily properties with 3,083 units and a carrying value of $49.5 million; (iii) have preferred equity interests in two multifamily properties with a carrying value of $17.8 million; and (iv) own other assets, through consolidated and unconsolidated subsidiaries, with a carrying value of $1.5 million. The 32 multifamily properties are located in 11 states; most of these properties are located in the Southeast United States and Texas.

Previous wording

We anticipate that in August 2026, we will acquire, through a joint venture in which we anticipate having a 70% interest, a multifamily property located in Houston, Texas for approximately $33 million; the venture anticipates funding the purchase price in part by obtaining an approximate $23.4 million mortgage which will mature in 2033 and will carry a currently estimated annual interest rate of 5.5%. We anticipate contributing approximately $8.8 million of the equity toward the purchase, including $1.9 million of working capital reserves, and incurring an estimated $450,000 of transaction costs and $700,000 in deferred financing costs, which costs will be amortized over time. We can provide no assurance that this transaction will be completed on the terms or time frame indicated or that it will be accretive to earnings.

Current wording

In August 2026, we acquired, through a joint venture in which we have a 70% interest, a multifamily property located in League City, Texas for approximately $33 million; the venture funded the purchase price in part by obtaining a $23.5 million mortgage maturing in 2033 and bearing an annual interest rate of 5.5%. We contributed approximately $8.6 million of the equity toward the purchase price and working capital requirements and incurred approximately $390,000 of transaction costs amortized over the useful lives of the related assets and $195,000 in deferred financing costs amortized over the life of the mortgage.

Previous wording

On June 2, 2026, we entered into an agreement to acquire Ranch Lake Apartments, a 336-unit multifamily property located in Bradenton, Florida. The purchase price is approximately $80 million (subject to customary closing purchase price adjustments), including the assumption of an approximately $45.7 million mortgage insured by the United States Department of Housing and Urban Development ("HUD"). The mortgage carries an interest rate of 2.91% and matures in 2056. The completion of the transaction, which is anticipated to close in the first quarter of 2027, is subject to, among other things, HUD and lender approval of the mortgage assumption, and other customary closing conditions. Based on information provided by the seller (which information has not been audited or reviewed by our independent auditors), the revenues for this property were approximately $1.8 million and $7.4 million for the three and twelve months ended April 30, 2026, respectively, and the real estate operating expenses were $765,000 and $3.2 million, respectively. See Notes 5 to our consolidated financial statements.

Current wording

On June 2, 2026, we entered into an agreement to acquire Ranch Lake Apartments, a 336-unit multifamily property located in Bradenton, Florida. The purchase price is approximately $80 million (subject to customary closing purchase price adjustments), including the assumption of an approximately $45.7 million mortgage insured by the United States Department of Housing and Urban Development ("HUD"). The mortgage carries an interest rate of 2.91% and matures in 2056. The completion of the transaction, which is anticipated to close in the first quarter of 2027, is subject to, among other things, HUD and lender approval of the mortgage assumption, and other customary closing conditions. Based on information provided by the seller (which information has not been audited or reviewed by our independent auditors), the revenues for this property were approximately $1.8 million and $7.3 million for the three and twelve months ended August 31, 2026, respectively, and the real estate operating expenses were $845,000 and $3.2 million, respectively. We anticipate funding the purchase price from available cash, funds generated from operations, proceeds from mortgage financings or refinancings and, if needed, borrowings from our credit facility.

Previous wording

In July 2026, we refinanced the maturing mortgage of $27.8 million (bearing an interest rate of 3.73%) on our Civic Center 2 - Southaven, MS property with a new mortgage of $47.9 million; such mortgage debt matures in August 2036, bears a fixed interest rate of 5.38% and is interest only through maturity (the "Civic 2 Refinancing").

Current wording

In July 2026, we refinanced the maturing mortgage of $27.7 million (bearing an interest rate of 3.73%) on our Civic Center 2 - Southaven, MS property with a new mortgage of $47.9 million; such new mortgage matures in August 2036, bears a fixed interest rate of 5.38% (after giving effect to a credit spread buy down for which the Company paid $957,000) and is interest only through maturity (the "Civic 2 Refinancing").

Previous wording

We anticipate that our mortgage interest expense will increase as we refinance the aggregate $51.4 million and $103.1 million of principal balances of mortgage debt maturing in 2026 and 2027, respectively (including $23.7 million and $60.3 million of such principal balances at unconsolidated subsidiaries maturing in 2026 and 2027, respectively) because current comparable mortgage interest rates are generally higher than the weighted average interest rate on such maturing mortgages (i.e, the weighted average interest rate on the mortgages on our consolidated and unconsolidated properties maturing through December 31, 2027 is 4.40%) and the interest rate on the Civic 2 Refinancing we completed in mid-July was 5.38%.

Current wording

We anticipate that our mortgage interest expense will increase due to (i) the transactions described under "Refinancings and Mortgage Payoff" and (ii) the refinancing of an aggregate $102.8 million of principal balances of mortgage debt maturing in 2027 (including $60.0 million of principal balances at unconsolidated subsidiaries) because current comparable mortgage interest rates are generally higher than the weighted average interest rate on such maturing mortgages (i.e, the weighted average interest rate on the mortgages on our consolidated and unconsolidated properties maturing through December 31, 2027 is 4.75%) and the interest rate on The Pointe at Lenox refinancing we completed in August 2026 was 5.72% (excluding the 27 basis point effect of our credit spread buy down).

Previous wording

The increase is due primarily to (i) $177,000 in improvements to rental rates and occupancy rates; and (ii) $159,000 in other revenue (e.g., cable and cancellation fees).

Current wording

The increase is due primarily to (i) $196,000 in other revenue (e.g., reimbursement of tenant charges); and (ii) $86,000 in average rental rate increases.

Previous wording

The change is due primarily to the additional $363,000 mortgage interest expense related to the refinancing of the River Place, Boerne and Civic 1 mortgages in December 2025 (collectively, the "December Refinancings") which added $29 million to our debt at a higher interest rate (a weighted average interest rate of 4.95%) than the debt that was paid off.

Current wording

The change is due primarily to the additional $663,000 mortgage interest expense related to the refinancing of the Parkway Grande, River Place, Boerne and Civic 1 mortgages in December 2025, and Civic 2 in July 2026 (collectively, the "Refinancings"), which resulted in increases of $50 million in our outstanding mortgage debt and 83 basis points in our weighted average interest rate on the refinanced mortgages. The increase was offset by a decrease in interest on the credit facility due to the reduction in the amount outstanding thereon.

Previous wording

The increase is due primarily to faster rates of depreciation associated with certain property improvements.

Current wording

The increase is due primarily to faster rates of depreciation associated with property improvements that have shorter useful lives.

Previous wording

The change is due primarily to increases of (i) $166,000 in advertising and leasing costs; (ii) $111,000 in repairs and maintenance; (iii) $110,000 in miscellaneous expenses, and (iv) $84,000 in real estate taxes.

Current wording

The change is due primarily to increases of (i) $277,000 in repairs and maintenance, including a significant increase at Grove at River Place; (ii) $219,000 in advertising and leasing costs; (iii) $167,000 in utilities; and (iv) $140,000 in miscellaneous expenses, none of which was individually significant.

Previous wording

Contributing to the decreases were (i) a net $186,000 in non-cash expense related to reduced amortization of equity awards due to the accelerated vesting of restricted stock in prior periods upon the retirements of executives and less favorable assessments as to the achievability of metrics associated with restricted stock units ("RSUs") and (ii) $88,000 in payroll costs due to reductions in headcount and compensation levels.

Current wording

•a $199,000 reduction in amortization of RSUs due to the Retirements and less favorable assessments as to the achievability of metrics associated with the RSUs; and

Previous wording

The decrease was offset primarily by a $123,000 increase in allocated expenses related to legal expense associated with increased acquisition and refinancing activity.

Current wording

•$152,000 in reduced payroll costs primarily due to reduced compensation levels due to the Retirements. The decrease was offset primarily by a $183,000 increase in allocated legal expense associated with increased acquisition and refinancing activities.

Previous wording

The increase is due primarily to faster rates of depreciation associated with certain property improvements.

Current wording

The increase is due primarily to faster rates of depreciation associated with property improvements that have shorter useful lives.

Previous wording

Equity in (loss) earnings from unconsolidated joint ventures decreased to a loss of $1,000 for the three months ended June 30, 2026 from earnings of $299,000 for the three months ended June 30, 2025. The decrease is primarily due to our share of losses at properties acquired subsequent to the quarter ended June 30, 2025 (i.e., 1322 North and Oaks at Victory, collectively, "North/Oaks") including (i) $445,000 in depreciation of tangible assets, and (ii) $262,000 in amortization of lease intangibles. We anticipate that $121,000 in amortization of these lease intangibles will be incurred for the three months ending September 30, 2026, at which point such intangibles will be fully amortized.

Current wording

Equity in (loss) earnings from unconsolidated joint ventures decreased to a loss of $781,000 for the nine months ended September 30, 2026 from earnings of $637,000 for the nine months ended September 30, 2025. The decrease is primarily due to:

Previous wording

During the six months ended June 30, 2026, we received $136,000 of insurance reimbursements from casualty events that occurred at our Bells Bluff and River Place properties compared to $257,000 of reimbursements received during the six months ended June 30, 2025.

Current wording

During the nine months ended September 30, 2026, we received $136,000 of insurance reimbursements from casualty events that occurred at our Bells Bluff and River Place properties compared to $257,000 of reimbursements received during the nine months ended September 30, 2025.

Previous wording

We require funds to pay operating expenses and debt service obligations, acquire and/or invest in properties (including alternative investments), make capital and other improvements, fund capital contributions, pay dividends and to continue to repurchase our common stock. Generally, our primary sources of capital and liquidity are the operations of our multifamily properties (including distributions and/or income from the preferred equity investments and the operations of the unconsolidated multifamily properties), mortgage debt financings and refinancings (including proceeds (in excess of refinanced amounts), from the refinancing of properties that appreciated in value since the original financing), property sales, the issuance of shares of our common stock pursuant to our at-the-market distribution and dividend reinvestment programs, borrowings from our credit facility and our available cash. At August 3, 2026, our available liquidity was approximately $53 million, including $13 million of cash and cash equivalents and $40 million available under our credit facility.

Current wording

We require funds to pay operating expenses and debt service obligations, acquire and/or invest in properties, make capital and other improvements, fund capital contributions, pay dividends and to continue to repurchase our common stock. Generally, our primary sources of capital and liquidity are the operations of our multifamily properties (including distributions and/or income from the preferred equity investments and the operations of the unconsolidated multifamily properties), mortgage debt financings and refinancings (including proceeds (in excess of refinanced amounts), from the refinancing of properties that appreciated in value since the original financing), property sales, the issuance of shares of our common stock, borrowings from our credit facility and our available cash. At November 2, 2026, our available liquidity was approximately $52 million, including $12 million of cash and cash equivalents and $40 million available under our credit facility.

Previous wording

We anticipate that from July 1, 2026 through December 31, 2028, our operating expenses, $80.6 million of mortgage amortization and interest expense (including $28.0 million from unconsolidated joint ventures), $51.4 million, $103.1 million and $104.6 million of balloon payments with respect to mortgages maturing in 2026, 2027 and 2028, respectively (including $23.7 million, $60.3 million and $66.7 million maturing in 2026, 2027 and 2028, respectively, from unconsolidated joint ventures), interest expense on our junior subordinated notes, estimated cash dividend payments of at least $46.9 million (assuming (i) the current quarterly dividend rate of $0.25 per share and (ii) 18.8 million shares outstanding), will be funded in part from cash generated from operations (including distributions from unconsolidated joint ventures). Our operating cash flow and available cash is insufficient to fully fund the $259.1 million (including $150.7 million at unconsolidated joint ventures) of balloon payments due through 2028, and if we are unable to refinance such debt on acceptable terms, we may need to issue additional equity or dispose of properties, in each case on potentially unfavorable terms.

Current wording

We anticipate that from October 1, 2026 through December 31, 2028, our operating expenses, $82.8 million of mortgage amortization and interest expense (including $30.6 million from unconsolidated joint ventures), $102.8 million and $104.6 million of balloon payments with respect to mortgages maturing in 2027 and 2028, respectively (including $60.0 million and $66.7 million maturing in 2027 and 2028, respectively, from unconsolidated joint ventures), interest expense on our junior subordinated notes, estimated cash dividend payments of at least $41.8 million (assuming (i) the current quarterly dividend rate of $0.25 per share and (ii) 18.6 million shares outstanding), will be funded in part from cash generated from operations (including distributions from unconsolidated joint ventures). Our operating cash flow and available cash is insufficient to fully fund the $207.4 million (including $126.6 million at unconsolidated joint ventures) of balloon payments due through 2028, and if we are unable to refinance such debt on acceptable terms, we may need to issue additional equity or dispose of properties, in each case on potentially unfavorable terms.

Previous wording

Our ability to acquire or invest in additional multifamily property opportunities and implement value-add projects is limited by our available cash and our ability to (i) draw on our credit facility, (ii) obtain, on acceptable terms, mortgage debt from lenders, (iii) obtain proceeds from the sale and/or refinancing of properties that have appreciated in value, and (iv) raise capital from the issuance of our common stock.

Current wording

Our ability to acquire or invest in additional multifamily property opportunities and implement value-add projects is limited by our available cash and our ability to (i) draw on our credit facility, (ii) obtain, on acceptable terms, mortgage debt from lenders, and (iii) obtain proceeds from the sale and/or refinancing of properties that have appreciated in value.

Previous wording

At June 30, 2026, we had mortgage debt of $760.3 million (including $286.6 million of mortgage debt at of our unconsolidated subsidiaries). Our unconsolidated mortgage debt of $286.6 million is gross of $1.8 million in fair market value adjustments. The mortgage debt at our: (i) consolidated properties had a weighted average interest rate of 4.22% and a weighted average remaining term to maturity of approximately 5.9 years, and (ii) at our unconsolidated subsidiaries had a weighted average interest rate of 4.19% and a remaining term to maturity of approximately 3.1 years.

Current wording

At September 30, 2026, we had mortgage debt of $796.5 million (including $311.5 million of mortgage debt at of our unconsolidated subsidiaries). The mortgage debt at our: (i) consolidated properties had a weighted average interest rate of 4.37% and a weighted average remaining term to maturity of approximately 6.2 years, and (ii) at our unconsolidated subsidiaries had a weighted average interest rate of 4.44% and a remaining term to maturity of approximately 3.9 years.

Previous wording

As of June 30, 2026, $37.4 million (excluding deferred costs of $207,000) in principal amount of our junior subordinated notes is outstanding. These notes mature in April 2036, contain limited covenants (including covenants prohibiting us from paying dividends or repurchasing capital stock if there is an event of default (as defined therein) on these notes), are redeemable at our option and bear an interest rate, which resets and is payable quarterly, at a rate of three-month term SOFR plus 250 basis points. At June 30, 2026 and 2025, the interest rate on these notes was 5.93% and 6.54%, respectively.

Current wording

As of September 30, 2026, $37.4 million (excluding deferred costs of $202,000) in principal amount of our junior subordinated notes is outstanding. These notes mature in April 2036, contain limited covenants (including covenants prohibiting us from paying dividends or repurchasing capital stock if there is an event of default (as defined therein) on these notes), are redeemable at our option and bear an interest rate, which resets and is payable quarterly, at a rate of three-month term SOFR plus 226 basis points. At September 30, 2026 and 2025, the interest rate on these notes was 6.16% and 6.57%, respectively.

Previous wording

Our credit facility with VNB New York, LLC, an affiliate of Valley National Bank (collectively, "VNB"), allows us to borrow, subject to compliance with borrowing base requirements and other conditions, up to $40 million, (i) for the acquisition of, and investment in, multifamily properties, (ii) to repay mortgage debt secured by multifamily properties and (iii) for Operating Expenses (i.e., working capital (including dividend payments) and operating expenses); provided, that not more than $25 million may be used for Operating Expenses. The credit facility is secured by cash accounts maintained by us at VNB (and we are required to maintain substantially all of our bank accounts at VNB), and the pledge of our interests in the entities that own the unencumbered multifamily properties used in calculating the borrowing base. The credit facility bears an annual interest rate, which resets monthly, equal to one-month term SOFR plus 250 basis points, with a floor of 6.00%. There is an annual fee of 0.25% on the total amount committed by VNB and unused by us. The credit facility matures in September 2027. Net proceeds received from the sale, financing or refinancing of our properties are generally required to be used to repay amounts outstanding on the facility. The interest rate in effect at June 30, 2026 and July 31, 2026, was 6.18% and 6.16% respectively. As of July 31, 2026, there was no outstanding balance on the credit facility and $40 million is available to be borrowed thereunder.

Current wording

Our credit facility with VNB New York, LLC, an affiliate of Valley National Bank (collectively, "VNB"), as amended in September 2026, allows us to borrow, subject to compliance with borrowing base requirements and other conditions, up to $40 million, (i) for the acquisition of, and investment in, multifamily properties, (ii) to repay mortgage debt secured by multifamily properties and (iii) for Operating Expenses (i.e., working capital (including dividend payments) and operating expenses); provided, that not more than $25 million may be used for Operating Expenses. The credit facility is secured by cash accounts maintained by us at VNB (and we are required to maintain substantially all of our bank accounts at VNB), and the pledge of our interests in the entities that own the unencumbered multifamily properties used in calculating the borrowing base. The credit facility bears an annual interest rate, which resets monthly, equal to one-month term SOFR plus 210 basis points, and a floor of 5.00%. There is an annual fee of 0.25% on the total amount committed by VNB and unused by us. The credit facility matures in September 2027. Net proceeds received from the sale, financing or refinancing of our properties are generally required to be used to repay amounts outstanding on the facility. The interest rate in effect at September 30, 2026 and November 2, 2026, was 6.00% and 6.05% respectively. As of November 2, 2026, there was no outstanding balance on the credit facility and $40 million is available to be borrowed thereunder.

Previous wording

At June 30, 2026, we are joint venture partners in unconsolidated joint ventures which own ten multifamily properties. Our investments in these joint venture properties had a net-equity carrying value of $43.3 million and the distributions to us from these joint venture properties during the three months ended June 30, 2026 contributed $1.3 million to our liquidity and cash flow. We may be required to make significant capital contributions with respect to these properties. The underlying properties are subject to mortgage debt, which is not reflected on our consolidated balance sheet, of $286.6 million. Although BRT Apartments Corp. is not the obligor with respect to such mortgage debt, the loss of any of these properties due to mortgage foreclosure or similar proceedings would have a material adverse effect on our results of operations and financial condition. See note 9 to our consolidated financial statements.

Current wording

At September 30, 2026, we are joint venture partners in unconsolidated joint ventures which own 11 multifamily properties. Our investments in these joint ventures had a net-equity carrying value of $49.5 million and the distributions to us from these joint ventures during the nine months ended September 30, 2026 contributed $4.4 million to our liquidity and cash flow. We may be required to make significant capital contributions with respect to these properties. The underlying properties are subject to mortgage debt, which is not reflected on our consolidated balance sheet, of $311.5 million. Although BRT Apartments Corp. is not the obligor with respect to such mortgage debt, the loss of any of these properties due to mortgage foreclosure or similar proceedings would have a material adverse effect on our results of operations and financial condition. See note 9 to our consolidated financial statements.

Previous wording

At June 30, 2026, we had preferred equity investments in two multifamily properties and during the quarter ended June 30, 2026, we generated $322,000 of loan interest income from these investments. At June 30, 2026, these investments had a carrying value of $17.8 million, are unsecured and are structurally subordinate to (including the payment of the returns thereon), an aggregate of $50.8 million of mortgage debt (which is not reflected on our consolidated balance sheet) bearing a weighted average interest rate of 4.81% and a weighted average remaining term to maturity of 4.36 years. Although we are not the obligor with respect to such mortgage debt, the loss of any of these investments due to mortgage foreclosure or similar proceedings would have a material adverse effect on our results of operations and financial condition. See note 6 to our consolidated financial statements.

Current wording

At September 30, 2026, we had preferred equity investments in two multifamily properties and during the quarter ended September 30, 2026, we generated $331,000 of loan interest income from these investments. At September 30, 2026, these investments had a carrying value of $17.8 million, are unsecured and are structurally subordinate to (including the payment of the returns thereon), an aggregate of $50.8 million of mortgage debt (which is not reflected on our consolidated balance sheet) bearing a weighted average interest rate of 4.81% and a weighted average remaining term to maturity of 4.11 years. Although we are not the obligor with respect to such mortgage debt, the loss of any of these investments due to mortgage foreclosure or similar proceedings would have a material adverse effect on our results of operations and financial condition. See note 6 to our consolidated financial statements.

Previous wording

We carefully monitor our discretionary spending. Our largest recurring discretionary expenditure has been our quarterly dividend (which was $0.25 per share of common stock, or approximately $4.7 million, with respect to the dividend paid in July 2026) and repurchases of our common stock. With respect to our dividend payments, our board of directors, on a quarterly basis, evaluates the timing and amount of our dividend based on its assessment of, among other things, our short and long term cash and liquidity requirements, prospects, debt maturities, projections of our REIT taxable income, net income, funds from operations, and adjusted funds from operations. With respect to our stock repurchases, management evaluates the appropriateness of such repurchases in light of, among other things, available alternative investments, and our capital and liquidity requirements (near and long term).

Current wording

We carefully monitor our discretionary spending. Our largest recurring discretionary expenditure has been our quarterly dividend (which was $0.25 per share of common stock, or approximately $4.6 million, with respect to the dividend paid in October 2026 and without giving effect to the DRIP) and repurchases of our common stock. With respect to our dividend payments, our board of directors, on a quarterly basis, evaluates the timing and amount of our dividend based on its assessment of, among other things, our short and long term cash and liquidity requirements, prospects, debt maturities, projections of our REIT taxable income, net income, funds from operations, and adjusted funds from operations. With respect to our stock repurchases, management evaluates the appropriateness of such repurchases in light of, among other things, available alternative investments, and our capital and liquidity requirements (near and long term).

Previous wording

FFO for the three months ended June 30, 2026 improved slightly on an absolute dollar basis from the corresponding quarter in the prior year primarily due to (i) an increase in rental revenues, and (ii) a decrease in expenses relating to equity awards. The improvement was offset by, among other things, by (i) an increase in interest expense, (ii) decrease in straight-line rent revenue related to concessions, (iii) a reduction in insurance recovery of casualty loss, and (iv) a decrease in other income.

Current wording

FFO for the three months ended September 30, 2026 decreased from the corresponding quarter in the prior year primarily due to the increase in interest expense. The change was offset by the decrease in the amortization of equity awards and, to a lesser extent, an increase in straight-line rent revenue.

Previous wording

AFFO for the three months ended June 30, 2026 improved nominally on an absolute dollar basis from the corresponding prior year due to the factors contributing to the changes in FFO, excluding the impact of straight-line rent revenue adjustments and expenses relating to equity awards.

Current wording

AFFO for the three months ended September 30, 2026 decreased from the corresponding prior year due to the factors contributing to the change in FFO, excluding the impacts of the amortization of equity awards and straight-line rent revenue.

Previous wording

See "Results of Operations - Three Months Ended June 30, 2026 compared to three months ended June 30, 2025" for a discussion of these changes.

Current wording

See "Results of Operations - Three Months Ended September 30, 2026 compared to three months ended September 30, 2025" for further information.

Previous wording

FFO for the six months ended June 30, 2026 increased on an absolute dollar basis from the corresponding period in the prior year primarily due to (i) an improvement in operating margins due to an increase in rental revenues, and (ii) a decrease in expenses relating to equity awards. The increase was offset primarily by (i) an increase in interest expense, (ii) a decrease in other income, and (iii) a reduction in insurance recovery of casualty loss.

Current wording

FFO for the nine months ended September 30, 2026 increased from the corresponding period in the prior year primarily due to (i) an improvement in operating margins, (ii) the decrease in amortization expense related to equity awards, (iii) the increase in straight-line rent revenue, and (iv) a decrease in the amortization of fair market value adjustments to mortgages. The change was offset primarily by (i) the increase in interest expense, (ii) the decrease in other income, and (iii) the decrease in insurance recovery of casualty loss.

Previous wording

AFFO for the six months ended June 30, 2026 decreased on an absolute dollar basis from the corresponding prior year period due to the factors contributing to the changes in FFO, excluding the impact of straight-line rent revenue adjustments and expenses related to equity awards.

Current wording

AFFO for the nine months ended September 30, 2026 decreased from the corresponding prior year period due to the factors contributing to the change in FFO, excluding the impact of (i) the amortization expense relating to equity awards, and (ii) straight-line rent revenue.

Previous wording

For the three months ended June 30, 2026, NOI increased from the corresponding period in 2025 primarily due to a $336,000 increase in rental revenue offset by a $258,000 increase in real estate operating expenses. See"Results of Operations - Three Months Ended June 30, 2026 Compared to the Three Months ended June 30, 2025" for a discussion of these changes.

Current wording

For the three months ended September 30, 2026, NOI increased from the corresponding period in 2025 primarily due to a $278,000 increase in rental revenue offset by a $265,000 increase in real estate operating expenses. See"Results of Operations - Three Months Ended September 30, 2026 Compared to the Three Months Ended September 30, 2025" for a discussion of these changes.

Previous wording

For the six months ended June 30, 2026, NOI increased from the corresponding period in 2025 primarily to a $915,000 increase in rental revenue offset by a $190,000 increase in real estate operating expenses. See "Results of Operations - Six months Ended June 30, 2026 compared to the Six Months ended June 30, 2025" for a discussion of these changes.

Current wording

For the nine months ended September 30, 2026, NOI increased from the corresponding period in 2025 primarily to a $1.2 million increase in rental revenue offset by a $455,000 increase in real estate operating expenses. See "Results of Operations - Nine Months Ended September 30, 2026 Compared to the Nine Months Ended September 30, 2025" for a discussion of these changes.