KITE REALTY GROUP TRUST
For the period ended Jun 30, 2026. Filed Jul 30, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 30, 2026
KRG$25.45-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0001286043-26-000037
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0001286043-26-000048
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 164 previous paragraphs and 194 current paragraphs.
101 unchanged; 57 reworded; 26 added; 5 removed; 1 previous and 10 current paragraphs rearranged.
Tables are not compared: 17 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (26)
Current report
(2)Chastain Market also contains 27,699 square feet of office space.
Current report
(2)We sold the ground lease interest in one tenant at this existing multi-tenant operating retail property. The total number of properties in our portfolio was not affected by this transaction.
Current report
Subsequent to June 30, 2026, we sold Tysons Corner, a 36,942 square foot retail property in the Washington, D.C. MSA.
Current report
Property operating expenses decreased $0.4 million, or 1.3%, due to the following(in thousands):
Current report
Real estate taxes decreased $2.2 million, or 8.2%, due to the following(in thousands):
Current report
During the three months ended June 30, 2026, we recorded a $1.0 million impairment charge related to the write-off of capitalized costs associated with an abandoned project. No impairment charges were recorded during the three months ended June 30, 2025.
Current report
We recorded a net gain on sales of operating properties of $87.7 million for the three months ended June 30, 2026 on the sales of seven operating retail properties and the ground lease interest in Lowe’s at Estero Town Commons compared to a net gain on sales of operating properties of $103.0 million on the sales of Stoney Creek Commons and Fullerton Metrocenter and the contribution of three previously wholly owned properties to the Seed Asset Joint Venture for the three months ended June 30, 2025.
Current report
During the three months ended June 30, 2026, we recognized a $60.6 million gain on the deconsolidation of our multifamily joint venture at One Loudoun Downtown (the “One Loudoun Residential Joint Venture”) related to adjusting our retained interest to fair value. No such gain was recognized during the three months ended June 30, 2025.
Current report
Equity in loss of unconsolidated joint ventures decreased $1.9 million, or 58.5%, primarily due to improved operating performance at certain joint venture properties during the three months ended June 30, 2026 compared to the prior year.
Current report
Other income, net increased $2.7 million, or 553.4%, primarily due to the receipt of insurance proceeds in excess of replacement cost during the three months ended June 30, 2026 related to the July 2025 severe flooding at Eastgate Crossing in the Durham-Chapel Hill MSA and an increase in interest income earned from Code Section 1031 tax-deferred exchanges compared to the prior year.
Current report
Comparison of Operating Results for the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025
Current report
The net increase of $11.2 million in rental income for properties that were fully operational during 2025 and 2026 is primarily due to increases in the following: (i) base minimum rent of $4.8 million from contractual rent changes and an increase in leasing spreads; (ii) tenant reimbursements of $4.7 million from higher recoverable common area maintenance expenses and real estate taxes; and (iii) lease termination income of $0.5 million, lower bad debt expense of $0.5 million, and increases of $0.3 million in overage rent and ancillary income.
Current report
Property operating expenses increased $0.9 million, or 1.5%, due to the following(in thousands):
Current report
The net increase of $5.2 million in property operating expenses for properties that were fully operational during 2025 and 2026 is primarily due to increases in the following: (i) insurance expenses of $1.3 million; (ii) repairs and maintenance expenses of $1.3 million; (iii) non-recoverable operating expenses of $0.8 million; (iv) snow removal expenses of $0.7 million; (v) landscaping and parking lot expenses of $0.7 million; and (vi) security expenses of $0.2 million. As a percentage of revenue, property operating expenses increased from 13.5% to 15.0% due to an increase in expenses in 2026.
Current report
Real estate taxes decreased $5.1 million, or 9.4%, due to the following(in thousands):
Current report
General, administrative and other expenses increased $2.8 million, or 11.1%, primarily due to an increase in payroll expenses and share-based compensation in 2026.
Current report
Depreciation and amortization expense decreased $32.0 million, or 16.3%, due to the following(in thousands):
Current report
We recorded a net gain on sales of operating properties of $87.7 million for the six months ended June 30, 2026 on the sales of eight operating retail properties and the ground lease interest in Lowe’s at Estero Town Commons compared to a net gain on sales of operating properties of $103.1 million on the sales of Stoney Creek Commons and Fullerton Metrocenter and the contribution of three previously wholly owned properties to the Seed Asset Joint Venture for the six months ended June 30, 2025.
Current report
During the six months ended June 30, 2026, we recognized a $60.6 million gain on the deconsolidation of the One Loudoun Residential Joint Venture related to adjusting our retained interest to fair value. No such gain was recognized during the three months ended June 30, 2025.
Current report
Equity in loss of unconsolidated joint ventures decreased $0.3 million, or 7.4%, primarily due to improved operating performance at certain joint venture properties during the six months ended June 30, 2026 compared to the prior year.
Current report
Other income, net increased $0.5 million, or 9.8%, primarily due to the receipt of insurance proceeds in excess of replacement cost during the six months ended June 30, 2026 related to the July 2025 severe flooding at Eastgate Crossing in the Durham-Chapel Hill MSA and an increase in interest income earned from 1031 Exchanges, partially offset by a decrease in interest income earned on bank accounts compared to the prior year.
Current report
•our active development projects at One Loudoun;
Current report
(1)Relates to current quarter GAAP operating income for the acquisitions of Chastain Market and Founders Square and the sale of seven properties during the three months ended June 30, 2026 during the period of ownership.
Current report
June 30, 2026, we issued $345.0 million aggregate principal amount of 3.25% exchangeable senior notes due 2032 (the “2026 Exchangeable Notes”), and a portion of such proceeds, together with the proceeds from our recent asset dispositions, were used or will be used to (i) repurchase approximately $30.0 million of the Company’s common shares concurrently with the pricing of the 2026 Exchangeable Notes in privately negotiated transactions through one of the initial purchasers of the 2026 Exchangeable Notes or its affiliates, as the Operating Partnership’s agent, and (ii) repay or redeem the $300.0 million aggregate principal balance of the 4.00% senior unsecured notes due October 2026 at or prior to maturity. We believe we will have adequate liquidity over the next 12 months and beyond to operate our business and meet our cash requirements.
Current report
During thesix months ended June 30, 2026, the Company repurchased approximately 8.8 million common shares at an average price per share of $25.91 for a total of $228.0 million, excluding commissions. The common shares repurchased during the six months ended June 30, 2026 include approximately 1.0 million common shares repurchased in conjunction with the pricing of the 2026 Exchangeable Notes on June 29, 2026, at a price of $28.90 per share, for a total of approximately $30.0 million. As of June 30, 2026,$124.3 million remained available for repurchases of common shares under the Company’s Share Repurchase Program.
Current report
•We invested $253.9 million in the Legacy West Joint Venture during the six months ended June 30, 2025;
Removed paragraphs (5)
Previous report
Property operating expenses increased $1.3 million, or 4.3%, due to the following(in thousands):
Previous report
Real estate taxes decreased $2.9 million, or 10.6%, due to the following(in thousands):
Previous report
Equity in loss of unconsolidated joint ventures increased $1.6 million primarily due to the April 2025 acquisition of 52% of Legacy West in a joint venture along with the contribution of three previously wholly owned properties to the Seed Asset Joint Venture in June 2025, of which we own 52%.
Previous report
Other income, net decreased $2.2 million, or 45.8%, primarily due to a decrease in interest income earned during the three months ended March 31, 2026 compared to the prior year.
Previous report
•our active development project at One Loudoun Expansion;
Reworded paragraphs (57)
Previous wording
•economic, business, banking, real estate and other market conditions, particularly in connection with low or negative growth in the U.S. economy as well as economic uncertainty (including from an economic slowdown or recession, federal government shutdown, disruptions related to tariffs and other trade or sanction issues, geopolitical instability in the Middle East, rising interest rates, inflation, unemployment, or limited growth in consumer income or spending);
Current wording
•economic, business, banking, real estate and other market conditions, particularly in connection with low or negative growth in the U.S. economy as well as economic uncertainty (including from an economic slowdown or recession, federal government shutdown, disruptions related to tariffs and other trade or sanction issues, geopolitical instability, rising interest rates, inflation, unemployment, or limited growth in consumer income or spending);
Previous wording
•financing risks, including the availability of, and costs associated with, sources of liquidity;
Current wording
•financing risks, including the availability of, and costs associated with, sources of liquidity, and our ability to use offering proceeds for the anticipated purposes;
Previous wording
•risks associated with cyber attacks and the loss of confidential information and other business disruptions;
Current wording
•risks associated with cyberattacks and the loss of confidential information and other business disruptions;
Previous wording
As of March 31, 2026, we own interests in a portfolio of 167 operating retail/mixed-use properties, including 159 wholly owned shopping centers and eight properties owned through four unconsolidated joint ventures, totaling approximately 26.9 million square feet, excluding (i) one operating retail property classified as held for sale as of March 31, 2026, (ii) Eastgate Crossing, a 152,682 square foot multi-tenant retail property in the Durham-Chapel Hill MSA that was reclassified from our operating portfolio in September 2025 due to significant disruption caused by severe flooding as a result of Tropical Storm Chantal, and (iii) two standalone office properties with 0.4 million square feet. Of the 167 operating retail/mixed-use properties, 10 contain an office component. We also own interests in one development project under construction as of March 31, 2026 and an additional two properties with future redevelopment opportunities.
Current wording
As of June 30, 2026, we own interests in a portfolio of 163 operating retail/mixed-use properties, including 155 wholly owned shopping centers and eight properties owned through four unconsolidated joint ventures, totaling approximately 26.0 million square feet, excluding (i) Eastgate Crossing, a 152,682 square foot multi-tenant retail property in the Durham-Chapel Hill MSA that was reclassified from our operating portfolio in September 2025 due to significant disruption caused by severe flooding as a result of Tropical Storm Chantal, and (ii) two standalone office properties with 0.4 million square feet. Of the 163 operating retail/mixed-use properties, 11 contain an office component. We also own interests in one development project under construction as of June 30, 2026 and an additional two properties with future redevelopment opportunities.
Previous wording
We continue to monitor the impact of inflation and tariffs on our operating and financial performance. Although inflation has moderated significantly from peak levels experienced during 2022, inflation may increase in the future as a result of multiple factors, including the tariffs implemented by the U.S. government in 2025 on imported goods from specific countries and inflationary pressures arising from geopolitical instability in the Middle East. These tariffs may lead to higher prices for many of the products that our tenants sell, potentially reducing consumer demand and spending and negatively impacting our tenants’ sales volume and overall health. This, in turn, has and could in the future put downward pricing pressure on rents that we are able to charge to new or renewing tenants, such that rent spreads and, in some cases, our percentage rents could be adversely impacted. Additionally, uncertainty regarding the scope and duration of the current and potential tariffs can lead to significant business uncertainty, affecting our tenants’ strategic planning and store expansion plans. Many of our leases contain provisions designed to mitigate the adverse impact of inflation, including stated rent increases and requirements for tenants to pay a share of operating expenses, including common area maintenance, real estate taxes, insurance, or other operating expenses related to the maintenance of our properties, with escalation clauses in most leases. Over the past few years, we have made significant progress in executing leases that include higher fixed-rent increases while also including consumer price index-based, anti-gouging protection for tenants. However, the stated rent increases or limits on such tenant’s obligation to pay its share of operating expenses could be lower than the increase in inflation at any given time. Inflation may also increase labor or other general and administrative expenses, which cannot be easily reduced.
Current wording
We continue to monitor the impact of inflation and tariffs on our operating and financial performance. Although inflation has moderated significantly from peak levels experienced during 2022, inflation may increase in the future as a result of multiple factors, including the tariffs implemented by the U.S. government in 2025 on imported goods from specific countries and inflationary pressures arising from geopolitical instability. These tariffs may lead to higher prices for many of the products that our tenants sell, potentially reducing consumer demand and spending and negatively impacting our tenants’ sales volume and overall health. This, in turn, has and could in the future put downward pricing pressure on rents that we are able to charge to new or renewing tenants, such that rent spreads and, in some cases, our percentage rents could be adversely impacted. Additionally, uncertainty regarding the scope and duration of the current and potential tariffs can lead to significant business uncertainty, affecting our tenants’ strategic planning and store expansion plans. Many of our leases contain provisions designed to mitigate the adverse impact of inflation, including stated rent increases and requirements for tenants to pay a share of operating expenses, including common area maintenance, real estate taxes, insurance, or other operating expenses related to the maintenance of our properties, with escalation clauses in most leases. Over the past few years, we have made significant progress in executing leases that include higher fixed-rent increases while also including consumer price index-based, anti-gouging protection for tenants. However, the stated rent increases or limits on such tenant’s obligation to pay its share of operating expenses could be lower than the increase in inflation at any given time. Inflation may also increase labor or other general and administrative expenses, which cannot be easily reduced.
Previous wording
During the first quarter of 2026, we executed new and renewal leases on 151 individual spaces totaling 707,000 square feet (13.5% cash leasing spread on 113 comparable leases). New leases were signed on 47 individual spaces for 163,714 square feet of gross leasable area (“GLA”) (31.3% cash leasing spread on 26 comparable leases), while non-option renewal leases were signed on 64 individual spaces for 219,136 square feet of GLA (12.3% cash leasing spread on 47 comparable leases) and option renewals were signed on 40 individual spaces for 324,150 square feet of GLA (7.0% cash leasing spread). The blended cash spread for comparable new and non-option renewal leases was 19.0%. Comparable new and renewal leases are defined as those for which the space was occupied by a tenant within the last 12 months.
Current wording
During the second quarter of 2026, we executed new and renewal leases on 128 individual spaces totaling approximately 1.0 million square feet (15.9% cash leasing spread on 103 comparable leases). New leases were signed on 44 individual spaces for 329,750 square feet of gross leasable area (“GLA”) (28.4% cash leasing spread on 29 comparable leases), while non-option renewal leases were signed on 47 individual spaces for 188,717 square feet of GLA (17.7% cash leasing spread on 37 comparable leases) and option renewals were signed on 37 individual spaces for 476,194 square feet of GLA (6.6% cash leasing spread). The blended cash spread for comparable new and non-option renewal leases was 24.7%. Comparable new and renewal leases are defined as those for which the space was occupied by a tenant within the last 12 months. As of June 30, 2026, the Company’s operating retail portfolio annualized base rent per square foot was $23.41.
Previous wording
Our development, redevelopment, and operating property acquisition and disposition activities during 2025 and 2026 affect the comparability of our results of operations for the three months ended March 31, 2026 and 2025. Therefore, we believe it is most useful to review the comparisons of our results of operations for these periods (as set forth below under “Comparison of Operating Results for the Three Months Ended March 31, 2026 to the Three Months Ended March 31, 2025”) in conjunction with the discussion of our transaction activities during those periods, which is set forth below.
Current wording
Our development, redevelopment, and operating property acquisition and disposition activities during 2025 and 2026 affect the comparability of our results of operations for the three and six months ended June 30, 2026 and 2025. Therefore, we believe it is most useful to review the comparisons of our results of operations for these periods (as set forth below under “Comparison of Operating Results for the Three Months Ended June 30, 2026 to the Three Months Ended June 30, 2025” and “Comparison of Operating Results for the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025”) in conjunction with the discussion of our transaction activities during those periods, which is set forth below.
Previous wording
(3)This property has been identified as a redevelopment property and is not included in the operating portfolio or the same property pool. The redevelopment project at Hamilton Crossing Centre will include the creation of a mixed-use development.
Current wording
(4)This property has been identified as a redevelopment property and is not included in the operating portfolio or the same property pool. The redevelopment project at Hamilton Crossing Centre will include the creation of a mixed-use development.
Previous wording
(4)In January 2022, we sold approximately half of the Hamilton Crossing site to Republic Airways Inc. and in August 2025, we sold an additional 36,895 square feet to Republic Airways. In addition to the sale, the Company entered into a development and construction management agreement for the development of a corporate campus for Republic Airways. Phase I of the corporate campus was completed in 2023, and the final phase was completed in January 2026.
Current wording
(5)In January 2022, we sold approximately half of the Hamilton Crossing site to Republic Airways Inc. and in August 2025, we sold an additional 36,895 square feet to Republic Airways. In addition to the sale, the Company entered into a development and construction management agreement for the development of a corporate campus for Republic Airways. Phase I of the corporate campus was completed in 2023, and the final phase was completed in January 2026.
Previous wording
(5)This property is included in the operating portfolio and is not included in the same property pool because it was reclassified from active development into our operating portfolio in March 2025.
Current wording
(6)This property is included in the operating portfolio and is not included in the same property pool because it was reclassified from active development into our operating portfolio in March 2025.
Previous wording
In addition, in January 2026, the Company disposed of the second phase of a land parcel and the rights to develop 14 residential units at the One Loudoun Expansion in the Washington, D.C. MSA. The Company is under contract to sell the remaining land and the rights to develop an additional 40 residential units, which are expected to close in phases through 2026.
Current wording
In addition, in January 2026 and April 2026, the Company disposed of the second and third phases of a land parcel and the rights to develop 14 residential units in each phase at the One Loudoun Expansion in the Washington, D.C. MSA. Subsequent to June 30, 2026, the Company sold the remaining land and the rights to develop an additional 22 residential units at the One Loudoun Expansion.
Previous wording
Rental income (including tenant reimbursements) decreased $21.1 million, or 9.6%, due to the following(in thousands):
Current wording
Rental income (including tenant reimbursements) decreased $17.9 million, or 8.5%, due to the following(in thousands):
Previous wording
The net increase of $7.8 million in rental income for properties that were fully operational during 2025 and 2026 is primarily due to a $3.4 million increase in tenant reimbursements from higher recoverable common area maintenance expenses and real estate taxes, $2.8 million in lease termination income, a $0.6 million decrease in bad debt expense, and $0.5 million increases in both base minimum rent from contractual rent changes and overage rent. The occupancy of the fully operational properties decreased from 92.2% for the three months ended March 31, 2025 to 91.1% for the three months ended March 31, 2026.
Current wording
The net increase of $3.5 million in rental income for properties that were fully operational during 2025 and 2026 is primarily due to increases in base minimum rent of $4.3 million from contractual rent changes and an increase in leasing spreads and tenant reimbursements of $1.4 million from higher recoverable common area maintenance expenses and real estate taxes. These variances were partially offset by a decrease in lease termination income of $2.2 million. The occupancy of the fully operational properties decreased from 91.0% for the three months ended June 30, 2025 to 90.9% for the three months ended June 30, 2026.
Previous wording
We recorded fee income of $1.3 million and $0.4 million during the three months ended March 31, 2026 and 2025, respectively, from property management and development services provided to third parties and unconsolidated joint ventures. The increase in fee income is primarily due to management fees earned during the three months ended March 31, 2026 related to the Legacy West Joint Venture and the Seed Asset Joint Venture.
Current wording
We recorded fee income of $1.4 million and $0.9 million during the three months ended June 30, 2026 and 2025, respectively, from property management and development services provided to third parties and unconsolidated joint ventures. The increase in fee income is primarily due to management fees earned during the three months ended June 30, 2026 related to the Legacy West Joint Venture and the Seed Asset Joint Venture.
Previous wording
The net increase of $3.0 million in property operating expenses for properties that were fully operational during 2025 and 2026 is primarily due to (i) a $0.7 million increase in both snow removal expenses and repairs and maintenance expenses, (ii) a $0.6 million increase in insurance expenses, and (iii) a $0.4 million increase in both landscaping and parking lot expenses and nonrecoverable expenses. As a percentage of revenue, property operating expenses increased from 13.5% to 15.5% due to an increase in expenses in 2026.
Current wording
The net increase of $2.3 million in property operating expenses for properties that were fully operational during 2025 and 2026 is primarily due to increases in the following: (i) $0.8 million in insurance expenses; (ii) $0.6 million in repairs and maintenance expenses; (iii) $0.4 million increase in landscaping and parking lot expenses; and (iv) $0.4 million in nonrecoverable expenses. As a percentage of revenue, property operating expenses increased from 13.5% to 14.5% due to an increase in expenses in 2026.
Previous wording
The net increase of $0.3 million in real estate taxes for properties that were fully operational during 2025 and 2026 is primarily due to higher real estate tax assessments at certain properties in the portfolio in 2026, partially offset by an increase in real estate tax refunds received during the three months ended March 31, 2026. The majority of real estate tax expenses are recoverable from tenants, and such recovery is reflected within “Rental income” in the accompanying consolidated statements of operations and comprehensive income.
Current wording
The net increase of $0.9 million in real estate taxes for properties that were fully operational during 2025 and 2026 is primarily due to higher real estate tax assessments at certain properties in the portfolio in 2026 and lower real estate tax refunds received during the three months ended June 30, 2026. The majority of real estate tax expenses are recoverable from tenants, and such recovery is reflected within “Rental income” in the accompanying consolidated statements of operations and comprehensive income.
Previous wording
General, administrative and other expenses increased $1.7 million, or 13.8%, primarily due to an increase in payroll expenses, share-based compensation, and state and local income taxes in 2026.
Current wording
General, administrative and other expenses increased $1.2 million, or 8.6%, primarily due to an increase in payroll expenses and share-based compensation in 2026.
Previous wording
Depreciation and amortization expense decreased $15.7 million, or 16.0%, due to the following(in thousands):
Current wording
Depreciation and amortization expense decreased $16.3 million, or 16.6%, due to the following(in thousands):
Previous wording
The net decrease of $3.6 million in depreciation and amortization at properties that were fully operational during 2025 and 2026 is primarily due to the timing of placing assets in service and writing off tenant-related assets as a result of tenant move-outs.
Current wording
The net decrease of $6.2 million in depreciation and amortization at properties that were fully operational during 2025 and 2026 is primarily due to the timing of placing assets in service and writing off tenant-related assets as a result of tenant move-outs.
Previous wording
We recorded a net gain from outlot sales of $1.0 million for the three months ended March 31, 2026 primarily on the sale of a land parcel and the rights to develop 14 residential units at the One Loudoun Expansion in the Washington, D.C. MSA. We did not sell any land parcels during the three months ended March 31, 2025.
Current wording
We recorded a net gain from outlot sales of $1.4 million for the three months ended June 30, 2026 on the sale of a land parcel and the rights to develop 14 residential units at the One Loudoun Expansion in the Washington, D.C. MSA. We did not sell any land parcels during the three months ended June 30, 2025.
Previous wording
Other property-related revenue primarily consists of parking revenues and other miscellaneous activity. This revenue decreased by $0.1 million primarily due to a decrease in miscellaneous income.
Current wording
Other property-related revenue primarily consists of parking revenues and other miscellaneous activity. This revenue increased by $0.1 million primarily due to an increase in parking revenue.
Previous wording
Based on the results of our evaluations for impairment (see Note 4 to the accompanying consolidated financial statements), we recorded a $5.9 million impairment charge on City Center during the three months ended March 31, 2026. No impairment charges were recorded during the three months ended March 31, 2025.
Current wording
Based on the results of our evaluations for impairment (see Note 4 to the accompanying consolidated financial statements), we recorded a $5.9 million impairment charge on City Center during the six months ended June 30, 2026. In addition, we recorded a $1.0 million impairment charge related to the write-off of capitalized costs associated with an abandoned project. No impairment charges were recorded during the six months ended June 30, 2025.
Previous wording
Interest expense decreased $1.3 million, or 3.8%, primarily due to the payoffs of the following in 2025: (i) $350.0 million in aggregate principal balance of the 4.00% senior unsecured notes that matured in March 2025, (ii) $150.0 million unsecured term loan in June 2025, and (iii) $80.0 million principal balance of the 4.47% senior unsecured notes that matured in September 2025, partially offset by interest incurred on the $300.0 million in aggregate principal amount of the 5.20% senior unsecured notes issued in June 2025.
Current wording
Interest expense decreased $3.6 million, or 5.3%, primarily due to the payoffs of the following in 2025: (i) $350.0 million aggregate principal balance of the 4.00% senior unsecured notes that matured in March 2025, (ii) $150.0 million unsecured term loan in June 2025, and (iii) $80.0 million principal balance of the 4.47% senior unsecured notes that matured in September 2025, partially offset by interest incurred on the $300.0 million aggregate principal amount of the 5.20% senior unsecured notes issued in June 2025.
Previous wording
We believe that Same Property NOI is helpful to investors as a measure of our operating performance because it includes only the NOI of properties that have been owned for the full periods presented. We believe such presentation eliminates disparities in net income due to the acquisition or disposition of properties during the particular periods presented and thus provides a more consistent metric for the comparison of our properties. Additionally, because results from the Company’s insurance captive are driven by insurance underwriting, loss experience, and actuarial assumptions and therefore do not reflect the operating performance of our real estate properties, we believe excluding the impacts of the insurance captive improves transparency and comparability for our investors. Same Property NOI includes the results of properties that have been owned for the entire current and prior year reporting periods. Same Property NOI for all periods presented includes 52% of the NOI from three previously wholly owned properties that were contributed to the Seed Asset Joint Venture in June 2025 and excludes the results of the Company’s insurance captive.
Current wording
We believe that Same Property NOI is helpful to investors as a measure of our operating performance because it includes only the NOI of properties that have been owned for the full periods presented. We believe such presentation eliminates disparities in net income due to the acquisition or disposition of properties during the particular periods presented and thus provides a more consistent metric for the comparison of our properties. Additionally, because results from the Company’s insurance captive are driven by insurance underwriting, loss experience, and actuarial assumptions and therefore do not reflect the operating performance of our real estate properties, we believe excluding the impacts of the insurance captive improves transparency and comparability for our investors. Same Property NOI includes the results of properties that have been owned for the entire current and prior year reporting periods. Same Property NOI for all periods presented includes (i) 52% of the NOI from three previously wholly owned properties that were contributed to the Seed Asset Joint Venture in June 2025 and (ii) 55% of the NOI from the One Loudoun Phase 1 Apartments (which 55% represents the Company’s expected final ownership percentage) and excludes the results of the Company’s insurance captive.
Previous wording
For the three months ended March 31, 2026, the Same Property Pool excludes the following:
Current wording
For the three and six months ended June 30, 2026, the Same Property Pool excludes the following:
Previous wording
•Village Commons and Legacy West, which were acquired in 2025;
Current wording
•Chastain Market and Founders Square, which were acquired in May 2026, and Village Commons and Legacy West, which were acquired in January and April 2025, respectively;
Previous wording
The following table presents Same Property NOI and a reconciliation to net income attributable to common shareholders for the three months ended March 31, 2026 and 2025(dollars in thousands):
Current wording
The following table presents Same Property NOI and a reconciliation to net income attributable to common shareholders for the three and six months ended June 30, 2026 and 2025(dollars in thousands):
Previous wording
(1)Same Property NOI excludes the following: (i) Village Commons and Legacy West, which were acquired in 2025; (ii) The Corner – IN, which was reclassified from active development into our operating portfolio in March 2025; (iii) Eastgate Crossing, which was reclassified from our operating portfolio in September 2025 due to significant disruption caused by severe flooding as a result of Tropical Storm Chantal; (iv) our active development project at One Loudoun Expansion; (v) Hamilton Crossing Centre and Edwards Multiplex – Ontario, which were reclassified from our operating portfolio into redevelopment in June 2014 and March 2023, respectively; (vi) properties sold or classified as held for sale during 2025 and 2026; and (vii) standalone office properties, including the Carillon medical office building.
Current wording
(1)Same Property NOI excludes the following: (i) Chastain Market and Founders Square, which were acquired in May 2026, and Village Commons and Legacy West, which were acquired in January and April 2025, respectively; (ii) The Corner – IN, which was reclassified from active development into our operating portfolio in March 2025; (iii) Eastgate Crossing, which was reclassified from our operating portfolio in September 2025 due to significant disruption caused by severe flooding as a result of Tropical Storm Chantal; (iv) our active development projects at One Loudoun; (v) Hamilton Crossing Centre and Edwards Multiplex – Ontario, which were reclassified from our operating portfolio into redevelopment in June 2014 and March 2023, respectively; (vi) properties sold or classified as held for sale during 2025 and 2026; and (vii) standalone office properties, including the Carillon medical office building.
Previous wording
(3)Same Property NOI for all periods presented includes 52% of the NOI from three previously wholly owned properties that were contributed to the Seed Asset Joint Venture in June 2025 and excludes the results of the Company’s insurance captive.
Current wording
(3)Same Property NOI for all periods presented includes (i) 52% of the NOI from three previously wholly owned properties that were contributed to the Seed Asset Joint Venture in June 2025 and (ii) 55% of the NOI from the One Loudoun Phase 1 Apartments (which 55% represents the Company’s expected final ownership percentage) and excludes the results of the Company’s insurance captive.
Previous wording
Our Same Property NOI increased 3.6% for the three months ended March 31, 2026 compared to the same period of the prior year primarily due to contractual rent growth.
Current wording
Our Same Property NOI increased 3.7% for the three months ended June 30, 2026 compared to the same period of the prior year primarily due to contractual rent growth and higher base rent driven by positive new and renewal leasing spreads.
Previous wording
Our calculations of FFO and reconciliation to net income and Core FFO for the three months ended March 31, 2026 and 2025 (unaudited) are as follows(dollars in thousands):
Current wording
Our calculations of FFO and reconciliation to net income and Core FFO for the three and six months ended June 30, 2026 and 2025 (unaudited) are as follows(dollars in thousands):
Previous wording
(1)Represents Adjusted EBITDA for the three months ended March 31, 2026 (as shown in the table above) multiplied by four.
Current wording
(2)Represents Adjusted EBITDA for the three months ended June 30, 2026 (as shown in the table above) multiplied by four.
Previous wording
(2)Partner share of consolidated joint venture debt is calculated based upon the partner’s pro rata ownership of the joint venture, multiplied by the related secured debt balance.
Current wording
(3)Partner share of consolidated joint venture debt is calculated based upon the partner’s pro rata ownership of the joint venture, multiplied by the related secured debt balance.
Previous wording
As of March 31, 2026, we had approximately $32.5 million in cash and cash equivalents on hand, $190.6 million in restricted cash and escrow deposits, and $1.0 billion of remaining availability under the $1.1 billion unsecured revolving credit facility (the “Revolving Facility”) compared to $410.6 million of debt maturing over the next 12 months. We believe we will have adequate liquidity over the next 12 months and beyond to operate our business and meet our cash requirements.
Current wording
As of June 30, 2026, we had approximately $144.6 million in cash and cash equivalents on hand, $176.8 million in restricted cash and escrow deposits, and $1.1 billion of remaining availability under the $1.1 billion unsecured revolving credit facility (the “Revolving Facility”) compared to $606.6 million of total debt maturing over the next 12 months. Subsequent to
Previous wording
As of March 31, 2026, we had approximately $1.0 billion available under the Revolving Facility for future borrowings. We also had $32.5 million in cash and cash equivalents as of March 31, 2026.
Current wording
As of June 30, 2026, we had approximately $1.1 billion available under the Revolving Facility for future borrowings. We also had $144.6 million in cash and cash equivalents as of June 30, 2026.
Previous wording
Near-Term Debt Maturities. As of March 31, 2026, we have $10.6 million of secured debt, excluding scheduled monthly principal payments, and $400.0 million of unsecured debt scheduled to mature over the next 12 months. We believe we have sufficient liquidity to repay these obligations through a combination of cash flows generated from operations, capital markets transactions, and borrowings on the Revolving Facility.
Current wording
Near-Term Debt Maturities. As of June 30, 2026, we have $30.5 million of secured debt, excluding scheduled monthly principal payments, and $575.0 million of unsecured debt scheduled to mature over the next 12 months. We believe we have sufficient liquidity to repay these obligations through a combination of proceeds from the 2026 Exchangeable Notes, asset sales, cash flows generated from operations, capital markets transactions, and borrowings on the Revolving Facility.
Previous wording
Other Short-Term Liquidity Needs. The requirements for qualifying as a REIT and for a tax deduction for some or all of the dividends paid to shareholders necessitate that we distribute at least 90% of our taxable income on an annual basis. Such requirements cause us to have substantial liquidity needs over both the short and long term. Our short-term liquidity needs consist primarily of funds necessary to pay operating expenses associated with our operating properties, scheduled interest and principal payments on our debt of approximately $93.8 million and $3.2 million, respectively, for the remainder of 2026, expected dividend payments to our common shareholders and common unit holders, and recurring capital expenditures.
Current wording
Other Short-Term Liquidity Needs. The requirements for qualifying as a REIT and for a tax deduction for some or all of the dividends paid to shareholders necessitate that we distribute at least 90% of our taxable income on an annual basis. Such requirements cause us to have substantial liquidity needs over both the short and long term. Our short-term liquidity needs consist primarily of funds necessary to pay operating expenses associated with our operating properties, scheduled interest and principal payments on our debt of approximately $62.5 million and $1.9 million, respectively, for the remainder of 2026, expected dividend payments to our common shareholders and common unit holders, and recurring capital expenditures.
Previous wording
In February 2026, our Board of Trustees declared a cash distribution of $0.29 per common share and Common Unit for the first quarter of 2026. This distribution was paid on April 16, 2026 to common shareholders and common unit holders of record as of April 9, 2026. Future distributions, if any, are at the discretion of the Board of Trustees, who will continue to evaluate our sources and uses of capital, liquidity position, operating fundamentals, maintenance of our REIT qualification, and other factors they may deem relevant. We believe we have sufficient liquidity to pay any dividend from available cash on hand and borrowings on the Revolving Facility.
Current wording
In April 2026, our Board of Trustees declared a cash distribution of $0.29 per common share and Common Unit for the second quarter of 2026. This distribution was paid on July 16, 2026 to common shareholders and common unit holders of record as of July 9, 2026. Future distributions, if any, are at the discretion of the Board of Trustees, who will continue to evaluate our sources and uses of capital, liquidity position, operating fundamentals, maintenance of our REIT qualification, and other factors they may deem relevant. We believe we have sufficient liquidity to pay any dividend from available cash on hand and borrowings on the Revolving Facility.
Previous wording
(excluding development and redevelopment properties). We currently anticipate incurring approximately $145 million of additional major tenant improvement costs related to executed leases for tenants not yet open at a number of our operating properties over the next 12 to 24 months. We believe we have the ability to fund these costs through cash flows generated from operations or borrowings on the Revolving Facility.
Current wording
Other short-term liquidity needs include expenditures for tenant improvements, external leasing commissions, and recurring capital expenditures. During the six months ended June 30, 2026, we incurred $14.6 million for recurring capital expenditures on operating properties and $49.5 million for tenant improvements and external leasing commissions, which includes costs to re-lease anchor space at our operating properties related to tenants open and operating as of June 30, 2026 (excluding development and redevelopment properties). We currently anticipate incurring approximately $175 million of additional major tenant improvement costs related to executed leases for tenants not yet open at a number of our operating properties over the next 12 to 24 months. We believe we have the ability to fund these costs through cash flows generated from operations or borrowings on the Revolving Facility.
Previous wording
As of March 31, 2026, the retail and office portions of the One Loudoun Expansion in the Washington, D.C. MSA, were under construction. Our share of the total estimated costs for this project is approximately $81.0 million to $91.0 million, of which our share of the expected funding requirement is approximately $65.0 million to $75.0 million. As of March 31, 2026, we have incurred $17.0 million of these costs. We anticipate incurring the majority of the remaining costs for this project over the next 12 to 24 months and believe we can fund this project through cash flows generated from operations or borrowings on the Revolving Facility.
Current wording
During the three months ended June 30, 2026, we began development activities on the One Loudoun Phase 2 Apartments in the Washington, D.C. MSA, which we estimate will incur net project costs of approximately $93.5 million to $103.5 million. Our share of the expected funding requirement is approximately $27.5 million to $37.5 million, and as of June 30, 2026, we have incurred $2.0 million of these costs. In addition, as of June 30, 2026, the retail and office portions of the One Loudoun Expansion in the Washington, D.C. MSA were under construction. Our share of the total estimated costs for this project is approximately $87.0 million to $94.0 million, of which our share of the expected funding requirement is approximately $72.0 million to $79.0 million. As of June 30, 2026, we have incurred $27.0 million of these costs. We anticipate incurring the majority of the remaining costs for these projects over the next 12 to 24 months and believe we can fund these projects through cash flows generated from operations or borrowings on the Revolving Facility.
Showing the first 40 of 57 pairs. Open the source sections for the rest.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
(3)The property is comprised of the development project (which has been excluded from the Company’s same property pool due to the ongoing development) and is expected to consist of a second multifamily rental building consisting of 429 apartment units and ground-floor retail space.
Current report — wording carried from elsewhere
Other property-related revenue primarily consists of parking revenues and other miscellaneous activity. This revenue increased by $0.2 million primarily due to an increase in parking revenue.
Current report — wording carried from elsewhere
Interest expense decreased $2.3 million, or 6.8%, primarily due to the payoffs of the $150.0 million unsecured term loan in June 2025 and the $80.0 million principal balance of the 4.47% senior unsecured notes that matured in September 2025, as well as a decrease in borrowings on the unsecured revolving line of credit, partially offset by interest incurred on the $300.0 million aggregate principal amount of the 5.20% senior unsecured notes issued in June 2025.
Current report — wording carried from elsewhere
The following table reflects changes in the components of our consolidated statements of operations for the six months ended June 30, 2026 and 2025(in thousands):
Current report — wording carried from elsewhere
Rental income (including tenant reimbursements) decreased $39.0 million, or 9.1%, due to the following(in thousands):
Current report — wording carried from elsewhere
We recorded fee income of $2.7 million and $1.3 million during the six months ended June 30, 2026 and 2025, respectively, from property management and development services provided to third parties and unconsolidated joint ventures.
Current report — wording carried from elsewhere
The increase in fee income is primarily due to management fees earned during the six months ended June 30, 2026 related to the Legacy West Joint Venture and the Seed Asset Joint Venture.
Current report — wording carried from elsewhere
The net increase of $1.1 million in real estate taxes for properties that were fully operational during 2025 and 2026 is primarily due to higher real estate tax assessments at certain properties in the portfolio in 2026, partially offset by an increase in real estate tax refunds received during the six months ended June 30, 2026 and capitalized real estate taxes at certain properties in the portfolio. The majority of real estate tax expenses are recoverable from tenants, and such recovery is reflected within “Rental income” in the accompanying consolidated statements of operations and comprehensive income.
Current report — wording carried from elsewhere
The net decrease of $9.4 million in depreciation and amortization at properties that were fully operational during 2025 and 2026 is primarily due to the timing of placing assets in service and writing off tenant-related assets as a result of tenant move-outs.
Current report — wording carried from elsewhere
We recorded a net gain from outlot sales of $2.4 million for the six months ended June 30, 2026 primarily on the sale of a land parcel and the rights to develop 28 residential units at the One Loudoun Expansion in the Washington, D.C. MSA. We did not sell any land parcels during the six months ended June 30, 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Other short-term liquidity needs include expenditures for tenant improvements, external leasing commissions, and recurring capital expenditures. During the three months ended March 31, 2026, we incurred $6.7 million for recurring capital expenditures on operating properties and $19.3 million for tenant improvements and external leasing commissions, which includes costs to re-lease anchor space at our operating properties related to tenants open and operating as of March 31, 2026