Piedmont Realty Trust, Inc.

Previous wording

We intend to use cash on hand, cash flows generated from the operation of our properties, net proceeds from the disposition of select properties, and borrowings under our $600 Million Unsecured 2022 Line of Credit as our primary sources of immediate liquidity. As of June 30, 2026, we had $16.8 million of cash on hand, the full borrowing capacity available under our $600 Million Unsecured 2022 Line of Credit and no required debt maturities until 2028. Consequently, we believe we have sufficient liquidity to meet our obligations for the foreseeable future; however, as part of our overall debt management strategy, we may seek other new secured or unsecured borrowings from third-party lenders or issue other debt or equity securities as additional sources of capital. The nature and timing of these additional sources of capital will be highly dependent upon market conditions.

Current wording

We intend to use cash on hand, cash flows generated from the operation of our properties, net proceeds from the disposition of select properties, and borrowings under our $600 Million Unsecured 2022 Line of Credit as our primary sources of immediate liquidity. As of September 30, 2026, we had approximately $448 million of borrowing capacity available under our $600 Million Unsecured 2022 Line of Credit and no required debt maturities until 2028. Consequently, we believe we have sufficient liquidity to meet our obligations for the foreseeable future; however, as part of our overall debt management strategy, we may seek other new secured or unsecured borrowings from third-party lenders or issue other debt or equity securities as additional sources of capital. The nature and timing of these additional sources of capital will be highly dependent upon market conditions.

Previous wording

Our most consistent use of capital has historically been, and we believe will continue to be, to fund capital expenditures for our existing portfolio of projects. During the six months ended June 30, 2026 and 2025, we incurred the following types of capital expenditures (in thousands):

Current wording

Our most consistent use of capital has historically been, and we believe will continue to be, to fund capital expenditures for our existing portfolio of projects. During the nine months ended September 30, 2026 and 2025, we incurred the following types of capital expenditures (in thousands):

Previous wording

(1)Of the total amounts paid, approximately $4.6 million and $10.2 million relates to soft costs such as capitalized interest, payroll, and other property operating costs for the six months ended June 30, 2026 and 2025, respectively.

Current wording

(1)Of the total amounts paid, approximately $6.5 million and $15.2 million relates to soft costs such as capitalized interest, payroll, and other property operating costs for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

"Capital expenditures for redevelopment/renovations" during the six months ended June 30, 2026 and 2025 related to building upgrades, primarily to the lobbies and the addition of tenant amenities at certain of our buildings and assets under redevelopment.

Current wording

"Capital expenditures for redevelopment/renovations" during the nine months ended September 30, 2026 and 2025 related to building upgrades, primarily to the lobbies and the addition of tenant amenities at certain of our buildings and assets under redevelopment.

Previous wording

Given that our operating model frequently results in leases for multiple blocks of space to credit-worthy tenants, our leasing success can result in capital outlays which vary from one reporting period to another based upon the specific leases executed. For leases executed during the six months ended June 30, 2026, we committed to spend approximately $5.54 per square foot per year of lease term for tenant improvement allowances and lease commissions (net of expired lease commitments) as compared to $6.72 (net of expired lease commitments) for the six months ended June 30, 2025. As of June 30, 2026, we had no individually significant unrecorded tenant allowance commitment greater than $10 million.

Current wording

Given that our operating model frequently results in leases for multiple blocks of space to credit-worthy tenants, our leasing success can result in capital outlays which vary from one reporting period to another based upon the specific leases executed. For leases executed during the nine months ended September 30, 2026, we committed to spend approximately $5.44 per square foot per year of lease term for tenant improvement allowances and lease commissions (net of expired lease commitments) as compared to $6.73 (net of expired lease commitments) for the nine months ended September 30, 2025. As of September 30, 2026, we had no individually significant unrecorded tenant allowance commitment greater than $10 million.

Previous wording

Finally, although we did not declare or pay dividends on our common stock during the six months ended June 30, 2026, we may also use capital resources to pay dividends to our stockholders. The amount and form of payment (cash or stock issuance) of future dividends, if any, to be paid to our stockholders will continue to be largely dependent upon (i) the amount of cash generated from our operating activities; (ii) our expectations of future cash flows; (iii) our determination of near-term cash needs for debt repayments, development projects, and selective acquisitions of new properties; (iv) the timing of significant expenditures for tenant improvements, leasing commissions, building redevelopment projects, and general property improvements; (v) long-term dividend payout ratios for comparable companies; (vi) our ability to continue to access additional sources of capital, including potential sales of our properties; (vii) our desire to reduce overall leverage; and (viii) the amount required to be distributed to maintain our status as a REIT. With the fluctuating nature of cash flows and expenditures, we may periodically borrow funds on a short-term basis to cover timing differences in cash receipts and cash disbursements, including to pay dividends to our stockholders.

Current wording

Finally, although we did not declare or pay dividends on our common stock during the nine months ended September 30, 2026, we may also use capital resources to pay dividends to our stockholders. The amount and form of payment (cash or stock issuance) of future dividends, if any, to be paid to our stockholders will continue to be largely dependent upon (i) the amount of cash generated from our operating activities; (ii) our expectations of future cash flows; (iii) our determination of near-term cash needs for debt repayments, development projects, and selective acquisitions of new properties; (iv) the timing of significant expenditures for tenant improvements, leasing commissions, building redevelopment projects, and general property improvements; (v) long-term dividend payout ratios for comparable companies; (vi) our ability to continue to access additional sources of capital, including potential sales of our properties; (vii) our desire to reduce overall leverage; and (viii) the amount required to be distributed to maintain our status as a REIT. With the fluctuating nature of cash flows and expenditures, we may periodically borrow funds on a short-term basis to cover timing differences in cash receipts and cash disbursements, including to pay dividends to our stockholders.

Previous wording

Net loss applicable to common stockholders for the three months ended June 30, 2026 was approximately $11.1 million, or $0.09 per diluted share, as compared with net loss applicable to common stockholders of $16.8 million, or $0.14 per diluted share, for the three months ended June 30, 2025. The primary driver of the decrease in net loss was an approximately $7.5 million loss on early extinguishment of debt recognized during the second quarter of 2025.

Current wording

Net loss applicable to common stockholders for the three months ended September 30, 2026 was approximately $21.0 million, or $0.17 per diluted share, as compared with net loss applicable to common stockholders of $13.5 million, or $0.11 per diluted share, for the three months ended September 30, 2025. The primary driver of the increase in net loss was an approximately $20.2 million loss on early extinguishment of debt recognized during the third quarter of 2026 related to the redemption of our remaining $600 Million Unsecured Senior Notes due 2028, partially offset by a $8.9 million gain recognized on the sale of a land parcel during the same period.

Previous wording

Rental and tenant reimbursement revenue increased approximately $3.3 million for the three months ended June 30, 2026, as compared to the same period in the prior year. The increase was primarily due to the roll-up of rental rates and new leases commencing during the twelve months ended June 30, 2026, contributing approximately $4.7 million. The impact of this increase was partially offset by the disposition of one project subsequent to April 1, 2025 in our Boston market.

Current wording

Rental and tenant reimbursement revenue increased approximately $11.2 million for the three months ended September 30, 2026, as compared to the same period in the prior year. The increase was primarily due to the roll-up of rental rates and new leases commencing during the twelve months ended September 30, 2026, contributing approximately $10.8 million, as well as the addition of the 4075 Wilson Boulevard building purchased in September 2026.

Previous wording

Other property related income increased approximately $0.4 million for the three months ended June 30, 2026 as compared to the same period in the prior year primarily due to increased parking income associated with increased utilization and higher transient parking at our office projects during the current period, as compared to the prior period.

Current wording

Other property related income increased approximately $0.9 million for the three months ended September 30, 2026 as compared to the same period in the prior year primarily due to increased parking income associated with increased utilization and higher transient parking at our office projects during the current period, as compared to the prior period.

Previous wording

Depreciation expense increased approximately $4.2 million for the three months ended June 30, 2026 as compared to the same period in the prior year. The increase was primarily due to additional building improvements placed in service subsequent to April 1, 2025.

Current wording

Depreciation expense increased approximately $4.0 million for the three months ended September 30, 2026 as compared to the same period in the prior year. The increase was primarily due to additional building improvements placed in service subsequent to July 1, 2025.

Previous wording

Amortization expense decreased approximately $0.3 million for the three months ended June 30, 2026 as compared to the same period in the prior year. The decrease was primarily due to amortization expense associated with certain lease intangible assets at our existing projects becoming fully amortized subsequent to April 1, 2025.

Current wording

Amortization expense decreased approximately $1.1 million for the three months ended September 30, 2026 as compared to the same period in the prior year. The decrease was primarily due to amortization expense associated with certain lease intangible assets at our existing projects becoming fully amortized subsequent to July 1, 2025. The decrease was partially offset by an increase in amortization expense associated with deferred lease acquisition costs due to increased new leasing activity during the twelve months ended September 30, 2026.

Previous wording

General and administrative expense increased approximately $0.2 million for the three months ended June 30, 2026 compared to the same period in the prior year, primarily due to increased accruals for potential performance-based compensation during the six months ended June 30, 2026.

Current wording

General and administrative expense increased approximately $1.5 million for the three months ended September 30, 2026 as compared to the same period in the prior year, primarily due to increased accruals for potential performance-based compensation during the three months ended September 30, 2026.

Previous wording

During the three months ended June 30, 2025, we repurchased approximately $67.5 million of the aggregate principal amount of the $600 Million Unsecured Senior Notes due 2028. The premium paid to repurchase the debt, as well as the write-off of the pro-rata share of unamortized debt issuance costs, resulted in the recognition of a $7.5 million loss on early extinguishment of debt.

Current wording

During the three months ended September 30, 2026, we redeemed our remaining $600 Million Unsecured Senior Notes due 2028. The premium paid to redeem the debt, as well as the write-off of the pro-rata share of unamortized debt issuance costs, resulted in the recognition of a $20.2 million loss on early extinguishment of debt.

Previous wording

Gain on sale of real estate assets during the three months ended June 30, 2025 primarily consists of the gain recognized on the sale of the 80 and 90 Central project in Boston, Massachusetts, which closed in May of 2025.

Current wording

Gain on sale of real estate assets during the three months ended September 30, 2026 primarily consists of the gain recognized on the sale of the Royal Lane land parcel in Dallas, Texas, which closed in August 2026.

Previous wording

The following table sets forth selected data from our consolidated statements of operations for the six months ended June 30, 2026 and 2025, respectively, as well as each balance as a percentage of total revenues for each period presented (dollars in millions):

Current wording

The following table sets forth selected data from our consolidated statements of operations for the nine months ended September 30, 2026 and 2025, respectively, as well as each balance as a percentage of total revenues for each period presented (dollars in millions):

Previous wording

Rental and tenant reimbursement revenue increased approximately $3.7 million for the six months ended June 30, 2026 as compared to the same period in the prior year. The increase was primarily due to the roll-up of rental rates and new leases commencing during the twelve months ended June 30, 2026, contributing approximately $7.2 million. The impact of this increase was partially offset by the disposition of two projects subsequent to January 1, 2025.

Current wording

Rental and tenant reimbursement revenue increased approximately $14.9 million for the nine months ended September 30, 2026 as compared to the same period in the prior year. The increase was primarily due to the roll-up of rental rates and new leases commencing during the twelve months ended September 30, 2026, contributing approximately $18.0 million. The impact of this increase was partially offset by the disposition of two projects subsequent to January 1, 2025.

Previous wording

Other property related income increased approximately $0.7 million for the six months ended June 30, 2026 as compared to the same period in the prior year primarily due to increased parking income associated with increased utilization and higher transient parking at our office projects during the current period, as compared to the prior period.

Current wording

Other property related income increased approximately $1.5 million for the nine months ended September 30, 2026 as compared to the same period in the prior year primarily due to increased parking income associated with increased utilization and higher transient parking at our office projects during the current period, as compared to the prior period.

Previous wording

Property operating costs increased approximately $0.4 million for the three months ended June 30, 2026 as compared to the same period in the prior year. The increase was primarily due to higher recoverable utility and janitorial expenses, which were partially offset by the disposition of one project subsequent to April 1, 2025 in our Boston market.

Current wording

Property operating costs increased approximately $3.9 million for the nine months ended September 30, 2026 as compared to the same period in the prior year. The increase was primarily due to higher recoverable property taxes, repairs and maintenance, janitorial expenses, and utilities during the current period, as compared to the prior period. These increases were partially offset by project dispositions subsequent to January 1, 2025 (as discussed above).

Previous wording

Depreciation expense increased approximately $7.4 million for the six months ended June 30, 2026 as compared to the same period in the prior year. The increase was primarily due to additional building and tenant improvements placed in service subsequent to January 1, 2025, which were partially offset by project dispositions during 2025.

Current wording

Depreciation expense increased approximately $11.3 million for the nine months ended September 30, 2026 as compared to the same period in the prior year. The increase was primarily due to additional building and tenant improvements placed in service subsequent to January 1, 2025, which were partially offset by project dispositions during 2025.

Previous wording

Amortization expense decreased approximately $0.4 million for the six months ended June 30, 2026 as compared to the same period in the prior year. The decrease in amortization expense is associated with certain lease intangible assets at our existing projects becoming fully amortized subsequent to January 1, 2025. The decrease was largely offset by an increase in amortization expense associated with deferred lease acquisition costs associated with increased new leasing activity during the twelve months ended June 30, 2026.

Current wording

Amortization expense decreased approximately $1.6 million for the nine months ended September 30, 2026 as compared to the same period in the prior year. The decrease in amortization expense is associated with certain lease intangible assets at our existing projects becoming fully amortized subsequent to January 1, 2025. The decrease was largely offset by an increase in amortization expense associated with deferred lease acquisition costs due to increased new leasing activity during the twelve months ended September 30, 2026.

Previous wording

General and administrative expense increased approximately $0.6 million for the six months ended June 30, 2026 compared to the prior year primarily reflecting increased personnel costs.

Current wording

General and administrative expense increased approximately $2.1 million for the nine months ended September 30, 2026 compared to the prior year due to increased accruals for potential performance-based compensation during the nine months ended September 30, 2026.

Previous wording

During the six months ended June 30, 2025, we repurchased approximately $67.5 million of the aggregate principal amount of the $600 Million Unsecured Senior Notes due 2028. The premium paid to repurchase the debt, as well as the write-off of the pro-rata share of unamortized debt issuance costs, resulted in the recognition of a $7.5 million loss on early extinguishment of debt.

Current wording

During the nine months ended September 30, 2026, we redeemed our remaining $600 Million Unsecured Senior Notes due 2028. The premium paid to redeem the debt, as well as the write-off of the pro-rata share of unamortized debt issuance costs, resulted in the recognition of a $20.2 million loss on early extinguishment of debt. Loss on early extinguishment of debt during the nine months ended September 30, 2025 primarily related to the repurchase of approximately $67.5 million of the aggregate principal amount of the $600 Million Unsecured Senior Notes due 2028. The premium paid to repurchase the debt, as well as the write-off of the pro-rata share of unamortized debt issuance costs, resulted in the recognition of a $7.5 million loss on early extinguishment of debt.

Previous wording

Gain on sale of real estate assets during the six months ended June 30, 2025 primarily consists of the gain recognized on the sale of the 80 and 90 Central project in Boston, Massachusetts, which closed in May of 2025, as well as recognition of the return of amounts held in escrow for the 750 West John Carpenter building sold in July 2024.

Current wording

Gain on sale of real estate assets during the nine months ended September 30, 2026 primarily consists of the gain recognized on the sale of the Royal Lane land parcel in Dallas, Texas, which closed in August 2026. Gain on sale of real estate assets during the nine months ended September 30, 2025 primarily consists of the gain recognized on the sale of the 80 and 90 Central project in Boston, Massachusetts, which closed in May of 2025, as well as recognition of the return of amounts held in escrow for the 750 West John Carpenter building sold in July 2024.

Previous wording

As of June 30, 2026, Piedmont, through its wholly-owned subsidiary Piedmont OP, had five separate issuances totaling approximately $1.7 billion of senior unsecured notes payable outstanding that mature in 2028, 2029, 2030, 2032 and 2033 (see Note 3 to our accompanying consolidated financial statements for additional details regarding each of these issuances) (collectively, the "Notes"). The Notes are senior unsecured obligations of Piedmont OP, rank equally in right of payment with all of Piedmont OP's other existing and future senior unsecured indebtedness, and would be effectively subordinated in right of payment to any of Piedmont OP’s future mortgage or other secured indebtedness (to the extent of the value of the collateral securing such indebtedness) and to all existing and future indebtedness and other liabilities of Piedmont OP’s subsidiaries, whether secured or unsecured.

Current wording

As of September 30, 2026, Piedmont, through its wholly-owned subsidiary Piedmont OP, had four separate issuances of senior unsecured notes payable outstanding that mature in 2029, 2030, 2032 and 2033 in an aggregate principal amount of approximately $1.4 billion, and one issuance of Exchangeable Senior Notes payable outstanding that matures in 2031 in an aggregate principal amount of $230 million (collectively, the "Notes") (see Note 4 to our accompanying consolidated financial statements for additional details regarding each of these issuances). The Notes are senior unsecured obligations of Piedmont OP, rank equally in right of payment with all of Piedmont OP's other existing and future senior unsecured indebtedness, and would be effectively subordinated in right of payment to any of Piedmont OP’s existing or future mortgage or other secured indebtedness (to the extent of the value of the collateral securing such indebtedness) and to all existing and future indebtedness and other liabilities of Piedmont OP’s subsidiaries, whether secured or unsecured.

Previous wording

NOI increased due to new leases commencing and/or current tenants expanding at our 1155 Perimeter Center West and Galleria on the Park projects during the six months ended June 30, 2026 as compared to the same period in the prior year.

Current wording

NOI increased due to new leases commencing and/or current tenants expanding at our 1155 Perimeter Center West and Galleria on the Park projects during the nine months ended September 30, 2026 as compared to the same period in the prior year.

Previous wording

We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjusting for gains or losses on the early extinguishment of debt and any significant non-recurring or infrequent items. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative to net loss calculated in accordance with GAAP as a measurement of our operating performance. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain infrequent or non-recurring items which can create significant earnings volatility, but which do not directly relate to our core recurring business operations. As a result, we believe that Core FFO can help facilitate comparisons of operating performance between periods and provides a more meaningful predictor of future earnings potential. Other REITs may not define Core FFO in the same manner as us; therefore, our computation of Core FFO may not be comparable to the computation made by other REITs.

Current wording

We calculate Core FFO by starting with FFO, as defined by NAREIT, and adjusting for gains or losses on the early extinguishment of debt and any significant non-recurring or infrequent items. Core FFO is a non-GAAP financial measure and should not be viewed as an alternative to net loss calculated in accordance with GAAP as a measurement of our operating performance. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain infrequent or non-recurring items which can create significant earnings volatility, but which do not directly relate to our core recurring business operations. As a result, we believe that Core FFO can help facilitate comparisons of operating performance between periods and provides a more meaningful predictor of future earnings potential. Other REITs may not define Core FFO in the same manner as we do; therefore, our computation of Core FFO may not be comparable to the computation made by other REITs.

Previous wording

Reconciliations of net loss applicable to common stock to FFO, Core FFO, and AFFO for the three and six months ended June 30, 2026 and 2025 are presented below (in thousands except per share amounts):

Current wording

Reconciliations of net loss applicable to common stock to FFO, Core FFO, and AFFO for the three and nine months ended September 30, 2026 and 2025 are presented below (in thousands except per share amounts):

Previous wording

(2)Includes potential dilution under the treasury stock method that would occur if our remaining unvested and potential stock awards vested and resulted in additional common shares outstanding. Such shares are not included when calculating net loss per share applicable to Piedmont for the three and six months ended June 30, 2026 and 2025, respectively, as they would reduce the loss per share presented.

Current wording

(2)Includes potential dilution under the treasury stock method that would occur if our remaining unvested and potential stock awards vested and resulted in additional common shares outstanding. Such shares are not included when calculating net loss per share applicable to Piedmont for the three and nine months ended September 30, 2026 and 2025, respectively, as they would reduce the loss per share presented.

Previous wording

(2)We calculate Core Earnings Before Interest, Taxes, Depreciation, and Amortization ("Core EBITDA") as net income/(loss) (computed in accordance with GAAP) before interest, taxes, depreciation and amortization and incrementally removing any impairment charges, gains or losses from sales of property, loss on early extinguishment of debt, and other significant infrequent items that create volatility within our earnings and make it difficult to determine the earnings generated by our core ongoing business. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of our operating performance. We believe that Core EBITDA is helpful to investors as a supplemental performance measure because it provides a metric for understanding the performance of our results from ongoing operations without taking into account the effects of non-cash expenses (such as depreciation and amortization), as well as items that are not part of normal day-to-day operations of our business. Other REITs may not define Core EBITDA in the same manner as us; therefore, our computation of Core EBITDA may not be comparable to that of other REITs.

Current wording

(2)We calculate Core Earnings Before Interest, Taxes, Depreciation, and Amortization ("Core EBITDA") as net income/(loss) (computed in accordance with GAAP) before interest, taxes, depreciation and amortization and incrementally removing any impairment charges, gains or losses from sales of property, loss on early extinguishment of debt, and other significant infrequent items that create volatility within our earnings and make it difficult to determine the earnings generated by our core ongoing business. Core EBITDA is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of our operating performance. We believe that Core EBITDA is helpful to investors as a supplemental performance measure because it provides a metric for understanding the performance of our results from ongoing operations without taking into account the effects of non-cash expenses (such as depreciation and amortization), as well as items that are not part of normal day-to-day operations of our business. Other REITs may not define Core EBITDA in the same manner as we do; therefore, our computation of Core EBITDA may not be comparable to that of other REITs.

Previous wording

(4)Dispositions include 80 and 90 Central, sold in the second quarter of 2025, and 161 Corporate Center, sold in the first quarter of 2025.

Current wording

(4)Dispositions include the Royal Lane land parcel, sold in the third quarter of 2026, 80 and 90 Central, sold in the second quarter of 2025, and 161 Corporate Center, sold in the first quarter of 2025.

Previous wording

(5)Other investments include active or recently completed out of service redevelopment projects and land. The operating results from a portion of The Exchange in Orlando, Florida, as well as Meridian and 9320 Excelsior Boulevard in suburban Minneapolis, Minnesota are included in this line item.

Current wording

(5)Other investments include active or recently completed out of service redevelopment projects and unsold land parcels. The operating results from a portion of The Exchange in Orlando, Florida, as well as Meridian and 9320 Excelsior Boulevard in suburban Minneapolis, Minnesota are included in this line item.

Previous wording

The following table sets forth a reconciliation of net loss calculated in accordance with GAAP to EBITDAre, Core EBITDA, Property NOI, and Same Store NOI, on both a cash and accrual basis, for the six months ended June 30, 2026 and 2025 (in thousands):

Current wording

The following table sets forth a reconciliation of net loss calculated in accordance with GAAP to EBITDAre, Core EBITDA, Property NOI, and Same Store NOI, on both a cash and accrual basis, for the nine months ended September 30, 2026 and 2025 (in thousands):

Previous wording

Our portfolio consists of office projects located within identified growth submarkets of large metropolitan cities concentrated primarily in the Sunbelt. We typically lease space to creditworthy corporate or governmental tenants on a long-term basis. As of June 30, 2026, our average lease was approximately 13,000 square feet with six years of lease term remaining. Leased percentage, as well as rent roll-ups and roll downs which we experience as a result of re-leasing, can fluctuate widely between buildings and between tenants, depending on when a particular lease is scheduled to commence or expire.

Current wording

Our portfolio consists of office projects located within identified growth submarkets of large metropolitan cities concentrated primarily in the Sunbelt. We typically lease space to creditworthy corporate or governmental tenants on a long-term basis. As of September 30, 2026, our average lease was approximately 13,000 square feet with approximately six years of lease term remaining. Leased percentage, as well as rent roll-ups and roll downs which we experience as a result of re-leasing, can fluctuate widely between buildings and between tenants, depending on when a particular lease is scheduled to commence or expire.

Previous wording

Our in-service portfolio was 88.9% leased as of June 30, 2026, as compared to 89.6% leased as of December 31, 2025. Scheduled lease expirations for the remainder of 2026 represent approximately 8% of our ALR. To the extent that square footage from new leases for currently vacant space in our in-service portfolio exceeds or falls short of the square footage associated with non-renewing expirations, such leases would increase or decrease our in-service leased percentage, respectively. As of June 30, 2026, two projects, 9320 Excelsior Boulevard and Meridian, both in suburban Minneapolis, Minnesota, were classified as out of service as they have recently undergone redevelopment to convert from single tenant occupancy to multi-tenant occupancy. Collectively, these out of service projects were approximately 83% leased as of June 30, 2026, with the majority of those leases anticipated to commence by the end of 2026 or early 2027.

Current wording

Our in-service portfolio was 87.7% leased as of September 30, 2026, as compared to 89.6% leased as of December 31, 2025. The decrease is attributable to net expiring square footage outweighing newly leased square footage related to previously vacant space, as well as the acquisition of 83% leased 4075 Wilson Boulevard during the three months ended September 30, 2026. As of September 30, 2026, scheduled lease expirations for the remainder of 2026 and 2027 represented approximately 6% and 8% of our ALR, respectively. To the extent that square footage from new leases for currently vacant space in our in-service portfolio exceeds or falls short of the square footage associated with non-renewing expirations, such leases would increase or decrease our in-service leased percentage, respectively. As of September 30, 2026, two projects, 9320 Excelsior Boulevard and Meridian, both in suburban Minneapolis, Minnesota, were classified as out of service as they have recently undergone redevelopment to convert from single tenant occupancy to multi-tenant occupancy. Collectively, these out of service projects were approximately 84.7% leased as of September 30, 2026, with the majority of those leases anticipated to commence by the end of 2026 or early 2027.

Previous wording

Commencement of a lease associated with a new tenant typically occurs 6-18 months after the lease execution date, after refurbishment of the space is completed. The downtime between a lease expiration and the new lease's commencement can negatively impact Property NOI and Same Store NOI comparisons (both accrual and cash basis). In addition, office leases for both new and renewing tenants often contain upfront rental and/or operating expense abatement periods which may delay the cash flow benefits of the lease even after the new or renewed lease has commenced, negatively impacting Property NOI and Same Store NOI on a cash basis until such abatements expire. As of June 30, 2026, we had approximately 0.9 million square feet of executed leases for vacant space that are yet to commence representing approximately $39 million of future additional annual cash rents, and approximately 1.0 million square feet of executed leases currently under rental abatement, representing approximately $28 million of future additional annual cash rents.

Current wording

Commencement of a lease associated with a new tenant typically occurs 6-18 months after the lease execution date, after refurbishment of the space is completed. The downtime between a lease expiration and the new lease's commencement can negatively impact Property NOI and Same Store NOI comparisons (both accrual and cash basis). In addition, office leases for both new and renewing tenants often contain upfront rental and/or operating expense abatement periods which may delay the cash flow benefits of the lease even after the new or renewed lease has commenced, negatively impacting Property NOI and Same Store NOI on a cash basis until such abatements expire. As of September 30, 2026, we had approximately 0.7 million square feet of executed leases for vacant space that are yet to commence representing approximately $29.3 million of future additional annual cash rents, and approximately 1.2 million square feet of executed leases currently under rental abatement, representing approximately $32.0 million of future additional annual cash rents.

Previous wording

If we are unable to replace expiring leases with new or renewal leases at rental rates equal to or greater than the expiring rates, rental rate roll-downs could occur and negatively impact Property NOI and Same Store NOI comparisons. As discussed above, our diverse portfolio and the magnitude of some of our tenants' leased spaces can result in rent roll-ups and roll-downs that can fluctuate widely on a project-by-project and a quarter-to-quarter basis. During the three months ended June 30, 2026, we experienced a 14.1% and 32.4% roll-up on a cash and accrual basis respectively, on executed leases related to space vacant one year or less.

Current wording

If we are unable to replace expiring leases with new or renewal leases at rental rates equal to or greater than the expiring rates, rental rate roll-downs could occur and negatively impact Property NOI and Same Store NOI comparisons. As discussed above, our diverse portfolio and the magnitude of some of our tenants' leased spaces can result in rent roll-ups and roll-downs that can fluctuate widely on a project-by-project and a quarter-to-quarter basis. During the three months ended September 30, 2026, we experienced a 26.2% and 34.6% roll-up on a cash and accrual basis, respectively, on executed leases related to space vacant one year or less.

Previous wording

During the three months ended June 30, 2026, Same Store NOI increased by 9.0% and 2.8% on a cash and accrual basis, respectively, as rental rates increased and the commencement or burn off of abatements on new leases outweighed expiring leases. Same Store NOI comparisons for any given period fluctuate as a result of the mix of net leasing activity in individual properties during the respective period.

Current wording

During the three months ended September 30, 2026, Same Store NOI increased by 7.5% and 6.9% on a cash and accrual basis, respectively, as rental rates increased and the commencement or burn off of abatements on new leases outweighed expiring leases. Same Store NOI comparisons for any given period fluctuate as a result of the mix of net leasing activity in individual properties during the respective period.

Previous wording

Our accounting policies have been established to conform with GAAP. The preparation of financial statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. If our judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied, thus, resulting in a different presentation of the financial statements. Additionally, other companies may utilize different estimates that may impact comparability of our results of operations to those of companies in similar businesses. Refer to our Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of our critical accounting policies and estimates. There have been no material changes to these policies during the six months ended June 30, 2026.

Current wording

Our accounting policies have been established to conform with GAAP. The preparation of financial statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. If our judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied, thus, resulting in a different presentation of the financial statements. Additionally, other companies may utilize different estimates that may impact comparability of our results of operations to those of companies in similar businesses. Refer to our Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of our critical accounting policies and estimates. There have been no material changes to these policies during the nine months ended September 30, 2026.