GLADSTONE COMMERCIAL CORP

Previous wording

•we owned 151 properties totaling 17.7 million square feet of rentable space, located in 27 states;

Current wording

•we owned 152 properties totaling 17.8 million square feet of rentable space, located in 27 states;

Previous wording

•the weighted average remaining term of our mortgage debt was 2.4 years, and the weighted average interest rate was 4.20%;

Current wording

•the weighted average remaining term of our mortgage debt was 2.1 years, and the weighted average interest rate was 4.20%;

Previous wording

•the weighted average remaining term of our senior unsecured notes was 4.2 years, and the weighted average interest rate was 6.22%; and

Current wording

•the weighted average remaining term of our senior unsecured notes was 3.9 years, and the weighted average interest rate was 6.22%; and

Previous wording

•the average remaining lease term of the portfolio was 7.2 years.

Current wording

•the average remaining lease term of the portfolio was 7.1 years.

Previous wording

The first quarter of 2026 had a business environment that was resilient in the face of turbulent macroeconomic conditions, including conflict in the Middle East. After similar macroeconomic conditions in 2025 (marked by geopolitical conflict, inflation, and domestic policy uncertainty), businesses and consumers seem to have adjusted and continued with normal operations. With no Federal Reserve rate decisions during the first quarter 2026, the 10-year treasury yield was impacted primarily by the Iran conflict. Right before the conflict began at the end of February 2026, the 10-year yield briefly dropped below 4.0% before climbing back above 4.4% for the first time since July 2025. It has since settled in the 4.3% range. Despite this volatility, businesses and consumers continue to press forward and make decisions, providing optimism for the remainder of the year so long as negative macroeconomic conditions do not escalate further.

Current wording

The second quarter of 2026 had a business environment that was resilient in the face of turbulent macroeconomic conditions, including conflict in the Middle East. After similar macroeconomic conditions in 2025 (marked by geopolitical conflict, inflation, and domestic policy uncertainty), businesses and consumers seem to have adjusted and continued with normal operations. With no Federal Reserve rate changes during the second quarter of 2026, the 10-year treasury yield increased modestly, moving from the 4.3% range to the 4.5% range during the quarter. Despite this uptick, businesses and consumers continue to press forward and make decisions, providing optimism for the remainder of the year so long as negative macroeconomic conditions do not escalate.

Previous wording

We collected 100% of all outstanding base rents for the three months ended March 31, 2026. We believe this reflects the strength of our credit underwriting and ongoing asset management. Our tenant base remains diversified, with limited exposure to tenants in the retail, hospitality, airlines, and oil and gas industries. Additionally, our properties are located across 27 states, which we believe helps limit our exposure to regional economic, regulatory, or weather-related issues risks in any one geographic market or area. In the past, we have received rent modification requests from certain of our tenants, and it is possible we may receive additional requests in the future.

Current wording

We collected 100% of all outstanding base rents for the six months ended June 30, 2026. We believe this reflects the strength of our credit underwriting and ongoing asset management. Our tenant base remains diversified, with limited exposure to tenants in the retail, hospitality, airlines, and oil and gas industries. Additionally, our properties are located across 27 states, which we believe helps limit our exposure to regional economic, regulatory, or weather-related risks in any one geographic market or area. In the past, we have received rent modification requests from certain of our tenants, and it is possible we may receive additional requests in the future.

Previous wording

Broader economic and geopolitical uncertainty continues to influence tenant decision making, particularly for industrial users evaluating supply chain resiliency, inventory strategy, and domestic production needs. Uncertainty surrounding the future path of monetary policy, including the anticipated transition in Federal Reserve leadership in 2026, may contribute to volatility in interest rates and capital markets conditions. Geopolitical conflict, particularly in the Middle East, continues to create risk for global trade flows, energy markets, and supply chains. The Strait of Hormuz remains a critical global energy chokepoint, and the disruption to trade flows could impact energy prices, transportation costs, and overall economic activity. These dynamics may affect tenant operating costs and timing of leasing decisions.

Current wording

Broader economic and geopolitical uncertainty continues to influence tenant decision making, particularly for industrial users evaluating supply chain resiliency, inventory strategy, and domestic production needs. Uncertainty surrounding the future path of monetary policy, including the change in Federal Reserve leadership in 2026, may contribute to volatility in interest rates and capital markets conditions. Geopolitical conflict, particularly in the Middle East, continues to create risk for global trade flows, energy markets, and supply chains. The Strait of Hormuz remains a critical global energy chokepoint, and the disruption to trade flows could impact energy prices, transportation costs, and overall economic activity. These dynamics may affect tenant operating costs and timing of leasing decisions.

Previous wording

At the same time, ongoing onshoring and reshoring initiatives, supported by policy incentives and supply chain security considerations, continue to drive investment in domestic manufacturing and logistics infrastructure. While these trends may support long-term industrial demand, they typically require extended planning and capital investment and may take time to translate into leasing activity. These conditions create both risks and opportunities for us and our tenants, and we believe we are well capitalized and positioned to respond as market conditions evolve. Severe weather and climate-related events may impact certain markets; however, recent periods have resulted in no disruption to our portfolio.

Current wording

At the same time, ongoing onshoring and reshoring initiatives in the U.S., supported by federal policy incentives and supply chain security considerations, continue to drive investment in domestic manufacturing and logistics infrastructure. While these trends may support long-term industrial demand, they typically require extended planning and capital investment and may take time to translate into leasing activity. These conditions create both risks and opportunities for us and our tenants, and we believe we are well capitalized and positioned to respond as market conditions evolve. Severe weather and climate-related events may impact certain markets; however, recent periods have resulted in no such related disruptions to our portfolio.

Previous wording

Operationally, we remain focused on maintaining high occupancy through lease renewals and releasing activity, managing upcoming lease expirations, and addressing upcoming debt maturities. Currently, we have six partially vacant buildings and no fully vacant buildings. Our available vacant space at March 31, 2026 represented 1.3% of our total square footage and the annual carrying costs on the vacant space, including real estate taxes and property operating expenses, are approximately $2.7 million. We continue to actively seek new tenants for these properties.

Current wording

Operationally, we remain focused on maintaining high occupancy through lease renewals and releasing activity, managing upcoming lease expirations, and addressing upcoming debt maturities. Currently, we have six partially vacant buildings and no fully vacant buildings. Our available vacant space at June 30, 2026 represented 1.3% of our total square footage and the annual carrying costs on the vacant space, including real estate taxes and property operating expenses, are approximately $2.5 million. We continue to actively seek new tenants for these properties.

Previous wording

We believe our lease expiration schedule for the remainder of 2026 is manageable, equating to 9.9% of our lease revenue at March 31, 2026. A majority of these expirations are currently in discussions for renewal, which we believe reduces near-term rollover risk. Property acquisitions since the beginning of 2021 have totaled $477.0 million and all but one acquisition transaction was industrial in nature, with a weighted average lease term of 15.3 years at time of acquisition and a weighted average lease term of 12.8 years at the time of this filing.

Current wording

We believe our lease expiration schedule for the remainder of 2026 is manageable, equating to 7.1% of our lease revenue at June 30, 2026. A majority of these expirations are currently in discussions for renewal, which we believe reduces near-term rollover risk. Property acquisitions since the beginning of 2021 have totaled $499.7 million and all but one acquisition transaction was industrial in nature, with a weighted average lease term of 14.9 years at time of the acquisition and a weighted average lease term of 12.2 years at the time of this filing.

Previous wording

During the three months ended March 31, 2026, we executed five leases, which are summarized below (dollars in thousands):

Current wording

During the six months ended June 30, 2026, we executed eight leases, which are summarized below (dollars in thousands):

Previous wording

During the three months ended March 31, 2026, we repaid two mortgages, collateralized by two properties, which are summarized in the table below (dollars in thousands):

Current wording

During the six months ended June 30, 2026, we repaid two mortgages, collateralized by two properties, which are summarized in the table below (dollars in thousands):

Previous wording

During the three months ended March 31, 2026, we extended the maturity date of one mortgage, collateralized by two properties, which is summarized in the table below (dollars in thousands):

Current wording

During the six months ended June 30, 2026, we extended the maturity date of one mortgage, collateralized by two properties, which is summarized in the table below (dollars in thousands):

Previous wording

On March 26, 2024, we entered into Amendment No. 1 to the 2023 Common Stock Sales Agreement (as amended time to time, the “2024 Common Stock Sales Agreement”). The amendment permitted shares of common stock to be issued pursuant to the 2024 Common Stock Sales Agreement under the Company’s Registration Statement on Form S-3 (File No. 333-277877) (the “2024 Registration Statement”), and future registration statements on Form S-3. In connection with the 2024 Common Stock Sales Agreement, we filed a prospectus supplement with the SEC dated March 26, 2024, to the prospectus dated March 21, 2024, for the offer and sale of an aggregate offering amount of $250.0 million of common stock. On August 12, 2025, we entered into Amendment No. 2 (“Amendment No. 2”) to the 2024 Common Stock Sales Agreement which, among other things, (i) removed Baird as a Common Stock Sales Agent and (ii) added Huntington Securities, Inc. (“Huntington”) as a Common Stock Sales Agent. After giving effect to Amendment No. 2, the Common Stock Sales Agents are BofA, Goldman Sachs, KeyBanc, Fifth Third, and Huntington. During the three months ended March 31, 2026, we did not sell shares of common stock under the 2024 Common Stock Sales Agreement, as amended.

Current wording

2024 Common Stock Sales Agreement under the Company’s Registration Statement on Form S-3 (File No. 333-277877) (the “2024 Registration Statement”), and future registration statements on Form S-3. In connection with the 2024 Common Stock Sales Agreement, we filed a prospectus supplement with the SEC dated March 26, 2024, to the prospectus dated March 21, 2024, for the offer and sale of an aggregate offering amount of $250.0 million of common stock. On August 12, 2025, we entered into Amendment No. 2 (“Amendment No. 2”) to the 2024 Common Stock Sales Agreement which, among other things, (i) removed Baird as a Common Stock Sales Agent and (ii) added Huntington Securities, Inc. (“Huntington”) as a Common Stock Sales Agent. After giving effect to Amendment No. 2, the Common Stock Sales Agents are BofA, Goldman Sachs, KeyBanc, Fifth Third, and Huntington. During the six months ended June 30, 2026, we did not sell shares of common stock under the 2024 Common Stock Sales Agreement, as amended.

Previous wording

Gladstone Management Corporation, a Delaware corporation (our “Adviser”), seeks to diversify our portfolio to avoid dependence on any one particular tenant, industry or geographic market. By diversifying our portfolio, our Adviser intends to reduce the adverse effect on our portfolio of a single under-performing investment or a downturn in any particular industry or geographic market. For the three months ended March 31, 2026, our largest tenant comprised only 5.1% of total lease revenue. The table below reflects the breakdown of our total lease revenue by tenant industry classification for the three months ended March 31, 2026 and 2025 (dollars in thousands):

Current wording

Gladstone Management Corporation, a Delaware corporation (our “Adviser”), seeks to diversify our portfolio to avoid dependence on any one particular tenant, industry or geographic market. By diversifying our portfolio, our Adviser intends to reduce the adverse effect on our portfolio of a single under-performing investment or a downturn in any particular industry or geographic market. For the six months ended June 30, 2026, our largest tenant comprised only 5.0% of total lease revenue. The table below reflects the breakdown of our total lease revenue by tenant industry classification for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):

Previous wording

The tables below reflect the breakdown of total lease revenue by state for the three months ended March 31, 2026 and 2025 (dollars in thousands):

Current wording

The tables below reflect the breakdown of total lease revenue by state for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):

Previous wording

Under the terms of the Advisory Agreement, we are responsible for all expenses incurred for our direct benefit. Examples of these expenses include legal, accounting, interest, directors’ and officers’ insurance, stock transfer services, stockholder-related fees, consulting and related fees. In addition, we are also responsible for all fees charged by third parties that are directly related to our business, which include real estate brokerage fees, mortgage placement fees, lease-up fees and transaction structuring fees (although we may be able to pass all or some of such fees on to our tenants and borrowers). Our entrance into the Advisory Agreement and each amendment thereto has been approved unanimously by our board of directors (“Board of Directors”). Our Board of Directors reviews and considers renewing the agreement with our Adviser annually, typically during the month of July. During its July 2025 meeting, our Board of Directors reviewed and renewed the Advisory Agreement and the Administration Agreement for an additional year, through August 31, 2026.

Current wording

Under the terms of the Advisory Agreement, we are responsible for all expenses incurred for our direct benefit. Examples of these expenses include legal, accounting, interest, directors’ and officers’ insurance, stock transfer services, stockholder-related fees, consulting and related fees. In addition, we are also responsible for all fees charged by third parties that are directly related to our business, which include real estate brokerage fees, mortgage placement fees, lease-up fees and transaction structuring fees (although we may be able to pass all or some of such fees on to our tenants and borrowers). Our entrance into the Advisory Agreement and each amendment thereto has been approved unanimously by our Board of Directors. Our Board of Directors reviews and considers renewing the agreement with our Adviser annually, typically during the month of July. During its July 2026 meeting, our Board of Directors reviewed and renewed the Advisory Agreement and the Administration Agreement for an additional year, through August 31, 2027.

Previous wording

Under the Advisory Agreement, we will pay to the Adviser a capital gain-based incentive fee that will be calculated and payable in arrears as of the end of each fiscal year (or upon termination of the Advisory Agreement). In determining the capital gain fee, we will calculate aggregate realized capital gains and aggregate realized capital losses for the applicable time period. For this purpose, aggregate realized capital gains and losses, if any, equals the realized gain or loss calculated by the difference between the sales price of the property, less any costs to sell the property and the current gross value of the property (equal to the property’s original acquisition price plus any subsequent non-reimbursed capital improvements) of the disposed property. At the end of the fiscal year, if this number is positive, then the capital gain fee payable for such time period shall equal 15.0% of such amount. No capital gain fee was recognized during the three months ended March 31, 2026 or 2025.

Current wording

Under the Advisory Agreement, we will pay to the Adviser a capital gain-based incentive fee that will be calculated and payable in arrears as of the end of each fiscal year (or upon termination of the Advisory Agreement). In determining the capital gain fee, we will calculate aggregate realized capital gains and aggregate realized capital losses for the applicable time period. For this purpose, aggregate realized capital gains and losses, if any, equals the realized gain or loss calculated by the difference between the sales price of the property, less any costs to sell the property and the current gross value of the property (equal to the property’s original acquisition price plus any subsequent non-reimbursed capital improvements) of the disposed property.

Previous wording

The preparation of our financial statements in accordance with GAAP requires management to make judgments that are subjective in nature to make certain estimates and assumptions. Application of these accounting policies involves the exercise of judgment regarding the use of assumptions as to future uncertainties, and as a result, actual results could materially differ from these estimates. A summary of all of our significant accounting policies is provided in Note 1 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025, filed by us with the U.S. Securities and Exchange Commission (the “SEC”) on February 18, 2026 (our “2025 Form 10-K”). There were no material changes to our critical accounting policies or estimates during the three months ended March 31, 2026.

Current wording

The preparation of our financial statements in accordance with GAAP requires management to make judgments that are subjective in nature to make certain estimates and assumptions. Application of these accounting policies involves the exercise of judgment regarding the use of assumptions as to future uncertainties, and as a result, actual results could materially differ from these estimates. A summary of all of our significant accounting policies is provided in Note 1 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025, filed by us with the U.S. Securities and Exchange Commission (the “SEC”) on February 18, 2026 (our “2025 Form 10-K”). There were no material changes to our critical accounting policies or estimates during the six months ended June 30, 2026.

Previous wording

The weighted average yield on our total portfolio, which was 8.6% and 8.5% as of March 31, 2026 and 2025, respectively, is calculated by taking the annualized straight-line rents plus operating expense recoveries, reflected as lease revenue on our condensed consolidated statements of operations and other comprehensive income, less property operating expenses, of each acquisition since inception, as a percentage of the acquisition cost plus subsequent capital improvements. The weighted average yield does not account for the interest expense incurred on the mortgages placed on our properties or other types of existing indebtedness.

Current wording

The weighted average yield on our total portfolio, which was 8.4% and 8.5% as of June 30, 2026 and 2025, respectively, is calculated by taking the annualized straight-line rents plus operating expense recoveries, reflected as lease revenue on our condensed consolidated statements of operations and other comprehensive income, less property operating expenses, of each acquisition since inception, as a percentage of the acquisition cost plus subsequent capital improvements. The weighted average yield does not account for the interest expense incurred on the mortgages placed on our properties or other types of existing indebtedness.

Previous wording

A comparison of our operating results for the three months ended March 31, 2026 and 2025 is below (dollars in thousands, except per share amounts):

Current wording

A comparison of our operating results for the three and six months ended June 30, 2026 and 2025 is below (dollars in thousands, except per share amounts):

Previous wording

Lease revenues consist of rental income and operating expense recoveries earned from our tenants. Lease revenues from same store properties increased for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, due to an increase in recovery revenue from property expenses and an increase in rental rates from leasing activity subsequent to the three months ended March 31, 2025. Lease revenues increased for acquired and disposed of properties for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, primarily due to an increase in recovery revenue from property expenses and an increase in rental rates on the 13 properties acquired subsequent to March 31, 2025. Lease revenues decreased for our properties with vacancy for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, mainly due to a decrease in recovery revenue from lower property expenses.

Current wording

Lease revenues consist of rental income and operating expense recoveries earned from our tenants. Lease revenues from same store properties increased for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, due to an increase in recovery revenue from property expenses and an increase in rental rates from leasing activity subsequent to the six months ended June 30, 2025. Lease revenues increased for acquired and disposed of properties for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, primarily due to lease revenue from the 10 properties acquired subsequent to June 30, 2025. This was coupled with a termination fee recognized on the property sold during the three months ended June 30, 2026. Lease revenues decreased for our properties with vacancy for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, mainly due to a decrease in recovery revenue from lower property expenses.

Previous wording

Depreciation and amortization expense increased for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, due to an increase in depreciation and amortization expense on the 13 properties acquired subsequent to March 31, 2025, partially offset by the reduced depreciation and amortization expense from the two property sales subsequent to March 31, 2025.

Current wording

Depreciation and amortization expense increased for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, due to an increase in depreciation and amortization expense on the 10 properties acquired subsequent to June 30, 2025, partially offset by the reduced depreciation and amortization expense from the two property sales subsequent to June 30, 2025.

Previous wording

Property operating expenses consist of franchise taxes, property management fees, insurance, ground lease payments, property maintenance and repair expenses paid on behalf of certain of our properties. The increase in property operating expenses for same store properties for the three months ended March 31, 2026, from the comparable 2025 period, was a result of general cost increases due to the inflationary environment and increased property maintenance expenses during the three months ended March 31, 2026. The increase in property operating expenses for acquired and disposed of properties for the three months ended March 31, 2026, from the comparable 2025 period, is a result of an increase in property operating expenses from the 13 properties acquired subsequent to March 31, 2025, partially offset by lower property operating expenses at the two property sales subsequent to March 31, 2025. The decrease in property operating expenses for properties with vacancy for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, is mainly due to a decrease in overall property expenses at vacant properties.

Current wording

Property operating expenses consist of franchise taxes, property management fees, insurance, ground lease payments, property maintenance and repair expenses paid on behalf of certain of our properties. The increase in property operating expenses for same store properties for the three and six months ended June 30, 2026, from the comparable 2025 period, was a result of general cost increases due to the inflationary environment and increased property maintenance expenses during the three and six months ended June 30, 2026. The increase in property operating expenses for acquired and disposed of properties for the three and six months ended June 30, 2026, from the comparable 2025 period, is a result of an increase in property operating expenses from the 10 properties acquired subsequent to June 30, 2025, partially offset by lower property operating expenses at the two properties sold subsequent to June 30, 2025. The decrease in property operating expenses for properties with vacancy for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, is mainly due to a decrease in overall property expenses at vacant properties.

Previous wording

The base management fee paid to the Adviser increased for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, due to an increase in Gross Tangible Real Estate over the three months ended March 31, 2026 from property acquisitions as compared to Gross Tangible Real Estate during the three months ended March 31, 2025. The calculation of the base management fee is described in detail above under the subheading “Advisory and Administration Agreements.”

Current wording

The base management fee paid to the Adviser increased for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, due to an increase in Gross Tangible Real Estate over the three and six months ended June 30, 2026 from property acquisitions as compared to Gross Tangible Real Estate during the three and six months ended June 30, 2025. The calculation of the base management fee is described in detail above under the subheading “Advisory and Administration Agreements.”

Previous wording

The net incentive fee paid to the Adviser decreased for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, due to the Adviser unconditionally waiving the full incentive fee for the three months ended March 31, 2026. The calculation of the incentive fee is described in detail above under the subheading “Advisory and Administration Agreements.”

Current wording

The net incentive fee paid to the Adviser increased for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, due to the Adviser unconditionally waiving only a portion of the incentive fee for the three months ended June 30, 2026, but waiving the full incentive fee for the three months ended June 30, 2025. The net incentive fee paid to the Adviser decreased for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, due to a lower gross incentive fee calculated for the six months ended June 30, 2026. The calculation of the incentive fee is described in detail above under the subheading “Advisory and Administration Agreements.”

Previous wording

The administration fee paid to the Administrator increased slightly for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, due to our Administrator allocating a larger portion of expenses to us. The calculation of the administration fee is described in detail above under the subheading“Advisory and Administration Agreements.”

Current wording

The administration fee paid to the Administrator increased slightly for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, due to our Administrator allocating a larger portion of expenses to us. The calculation of the administration fee is described in detail above under the subheading“Advisory and Administration Agreements.”

Previous wording

General and administrative expenses increased for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, mainly due to higher accounting and legal expenses.

Current wording

General and administrative expenses decreased for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, mainly due to expensing Series F Preferred Stock prepaid offering costs in the prior period following the termination of the primary offering.

Previous wording

Interest expense increased for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. This increase was primarily the result of increased interest costs on variable rate debt, as a result of larger amounts drawn on the Credit Facility, as well as new interest expense on the 2030 Notes.

Current wording

Interest expense increased for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025. This increase was primarily the result of increased interest costs on variable rate debt, as a result of larger amounts drawn on the Credit Facility, as well as new interest expense on the 2030 Notes.

Previous wording

We sold a portion of a land parcel during the three months ended March 31, 2026, and as a result, incurred a gain on sale of real estate, net. We did not sell any properties during the three months ended March 31, 2025.

Current wording

We sold one property and a portion of a land parcel during the six months ended June 30, 2026, and as a result, incurred a gain on sale of real estate, net. We sold one office property during the six months ended June 30, 2025, and as a result, incurred a gain on sale of real estate, net.

Previous wording

We recognized other expense during the three months ended March 31, 2026, due to nonrecurring items that occurred during the period. We recognized other income during the three months ended March 31, 2025, due to interest income earned from sales-types leases and nonrecurring income items.

Current wording

We recognized other income during the three months ended June 30, 2026 and other expense during the six months ended June 30, 2026, due to nonrecurring items that occurred during the periods. We recognized other expense during the three months ended June 30, 2025, due to incurring closing costs associated with the completion of the sale transaction at our Tifton, Georgia property and recognized other income during the six months ended June 30, 2025 due to interest income earned from sales-types leases and nonrecurring income items.

Previous wording

Net income available to common stockholders and Non-controlling OP Unitholders increased for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, primarily due to an increase in rental rates from leasing and acquisition activity, a lower net incentive fee, and a gain on sale, net. This was partially offset by an increase in interest expense, an increase in depreciation expense from acquisition activity, and other income recognized in the prior period from sales-types leases.

Current wording

Net income available to common stockholders and Non-controlling OP Unitholders increased for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, primarily due to an increase in rental rates from leasing and acquisition activity, a termination fee recognized in the current period, and a higher gain on sale, net. This was partially offset by an increase in interest expense, an increase in depreciation expense from acquisition activity, and other income recognized in the prior period from sales-types leases.

Previous wording

Our sources of liquidity include cash flows from operations, cash and cash equivalents, borrowings under our Credit Facility, and additional issuances of equity and/or debt securities. Our available liquidity as of March 31, 2026 was $83.3 million, consisting of approximately $8.0 million in cash and cash equivalents and available borrowing capacity of $75.3 million under our Credit Facility. Our available borrowing capacity under the Credit Facility increased to $77.0 million as of May 5, 2026.

Current wording

Our sources of liquidity include cash flows from operations, cash and cash equivalents, borrowings under our Credit Facility, and additional issuances of equity and/or debt securities. Our available liquidity as of June 30, 2026 was $80.8 million, consisting of approximately $10.4 million in cash and cash equivalents and available borrowing capacity of $70.4 million under our Credit Facility. Our available borrowing capacity under the Credit Facility decreased to $68.8 million as of August 5, 2026.

Previous wording

During the three months ended March 31, 2026, we did not sell any common equity under the 2024 Common Stock Sales Agreement.

Current wording

During the six months ended June 30, 2026, we did not sell any common equity under the 2024 Common Stock Sales Agreement.

Previous wording

As of May 5, 2026, we had the ability to raise up to $1.0 billion of additional equity capital through the sale and issuance of securities that are registered under the 2024 Registration Statement, in one or more future public offerings. We expect to use our 2024 Common Stock Sales Agreement as a source of liquidity for the remainder of 2026.

Current wording

As of August 5, 2026, we had the ability to raise up to $1.0 billion of additional equity capital through the sale and issuance of securities that are registered under the 2024 Registration Statement, in one or more future public offerings. We expect to use our 2024 Common Stock Sales Agreement as a source of liquidity, if needed, for the remainder of 2026.

Previous wording

As of March 31, 2026, we had 36 mortgage notes payable in the aggregate principal amount of $247.2 million, collateralized by a total of 42 properties with a remaining weighted average maturity of 2.5 years. The weighted-average interest rate on the mortgage notes payable as of March 31, 2026 was 4.20%.

Current wording

As of June 30, 2026, we had 36 mortgage notes payable in the aggregate principal amount of $245.2 million, collateralized by a total of 42 properties with a remaining weighted average maturity of 2.2 years. The weighted-average interest rate on the mortgage notes payable as of June 30, 2026 was 4.20%.

Previous wording

As of March 31, 2026, we had mortgage debt in the aggregate principal amount of $23.7 million payable during the remainder of 2026 and $102.7 million payable during 2027. The 2026 principal amount payable includes both amortizing principal payments and four balloon principal payments. We anticipate being able to refinance our mortgages that come due during 2026 and 2027 with a combination of new mortgage debt, availability under our Credit Facility, the issuance of long-term unsecured notes in the private placement market, the issuance of additional equity securities under our 2024 Common Stock Sales Agreement, the sale and issuance of other equity securities that are registered under the 2024 Registration Statement, or the sale and issuance of unregistered equity or debt securities.

Current wording

As of June 30, 2026, we had mortgage debt in the aggregate principal amount of $21.6 million payable during the remainder of 2026 and $102.7 million payable during 2027. The 2026 principal amount payable includes both amortizing principal payments and three balloon principal payments. We anticipate being able to refinance our mortgages that come due during 2026 and 2027 with a combination of new mortgage debt, availability under our Credit Facility, the issuance of long-term unsecured notes in the private placement market, the issuance of additional equity securities under our 2024 Common Stock Sales Agreement, the sale and issuance of other equity securities that are registered under the 2024 Registration Statement, or the sale and issuance of unregistered equity or debt securities.

Previous wording

Net cash provided by operating activities during the three months ended March 31, 2026, was $17.9 million, as compared to net cash provided by operating activities of $17.7 million for the three months ended March 31, 2025. The majority of cash from operating activities is generated from the lease revenues that we receive from our tenants. We utilize this cash to fund our property-level operating expenses and use the excess cash primarily for debt and interest payments on our mortgage notes payable, interest payments on our Credit Facility, distributions to our stockholders and Non-controlling OP Unitholders, management fees to our Adviser, Administration fees to our Administrator and other entity-level operating expenses.

Current wording

Net cash provided by operating activities during the six months ended June 30, 2026, was $35.5 million, as compared to net cash provided by operating activities of $53.5 million for the six months ended June 30, 2025. The majority of cash from operating activities is generated from the lease revenues that we receive from our tenants. We utilize this cash to fund our property-level operating expenses and use the excess cash primarily for debt and interest payments on our mortgage notes payable, interest payments on our Credit Facility, distributions to our stockholders and Non-controlling OP Unitholders, management fees to our Adviser, Administration fees to our Administrator, and other entity-level operating expenses.

Previous wording

Net cash provided by investing activities during the three months ended March 31, 2026, was $1.3 million, which primarily consisted of proceeds from the sale of a portion of a land parcel and receipt of lender held escrows, partially offset by capital improvements performed at certain of our properties. Net cash used in investing activities during the three months ended March 31, 2025, was $75.5 million, which primarily consisted of six property acquisitions, capital improvements performed at certain of our properties, and deposits paid for future acquisitions.

Current wording

Net cash used in investing activities during the six months ended June 30, 2026, was $11.0 million, which primarily consisted of one property acquisition, a land parcel acquisition, and capital improvements performed at certain of our properties, partially offset by proceeds from one property sale and the sale of a portion of a land parcel. Net cash used in investing activities during the six months ended June 30, 2025, was $155.5 million, which primarily consisted of ten property acquisitions and capital improvements performed at certain of our properties, partially offset by proceeds from one property sale.

Previous wording

Net cash used in financing activities during the three months ended March 31, 2026, was $22.3 million, which primarily consisted of net borrowings on our credit facility, $4.4 million of mortgage principal repayments, Series F Preferred Stock redemptions, and distributions paid to common, senior common and preferred shareholders. Net cash provided by financing activities for the three months ended March 31, 2025, was $58.1 million, which primarily consisted of the issuance of $28.4 million of equity and net borrowings on our Credit Facility, partially offset by $2.4 million of mortgage debt repayments and distributions paid to common, senior common and preferred shareholders.

Current wording

Net cash used in financing activities during the six months ended June 30, 2026, was $25.3 million, which primarily consisted of $6.4 million of mortgage principal repayments, Series F Preferred Stock redemptions, and distributions paid to common, senior common, and preferred stockholders, partially offset by net borrowings on our credit facility and receipts from lender reserves. Net cash provided by financing activities for the six months ended June 30, 2025, was $102.8 million, which primarily consisted of the issuance of $39.0 million of equity, net borrowings on our Credit Facility, and $20.0 million in borrowings on Term Loan D, partially offset by $12.0 million of mortgage principal repayments and distributions paid to common, senior common, and preferred stockholders.