KITE REALTY GROUP TRUST

Previous 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;

Current wording

•financing risks, including the availability of, and costs associated with, sources of liquidity;

Previous 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.

Current wording

As of September 30, 2026, we own interests in a portfolio of 162 operating retail/mixed-use properties, including 154 wholly owned shopping centers and eight properties owned through four unconsolidated joint ventures, totaling approximately 25.9 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 162 operating retail/mixed-use properties, 11 contain an office component. We also own interests in two development projects that are under construction as of September 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. 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 remains elevated and has experienced periods of renewed upward pressure, including as a result of higher energy costs, tariffs, and geopolitical instability. The tariffs implemented by the U.S. government beginning in 2025, as well as subsequent changes in U.S. trade policy, have increased, and may continue to increase, the cost of certain imported goods and domestic goods that rely on imported inputs. These tariffs and other inflationary pressures 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, supply chains, 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 energy, utilities, labor or other general and administrative expenses, some of which may not be recoverable from tenants or cannot be easily reduced.

Previous 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.

Current wording

During the third quarter of 2026, we executed new and renewal leases on 160 individual spaces totaling approximately 1.2 million square feet (14.6% cash leasing spread on 129 comparable leases). New leases were signed on 47 individual spaces for 269,499 square feet of gross leasable area (“GLA”) (33.7% cash leasing spread on 30 comparable leases), while non-option renewal leases were signed on 57 individual spaces for 211,881 square feet of GLA (18.3% cash leasing spread on 43 comparable leases) and option renewals were signed on 56 individual spaces for 768,137 square feet of GLA (7.6% cash leasing spread). The blended cash spread for comparable new and non-option renewal leases was 26.2%. 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 September 30, 2026, the Company’s operating retail portfolio annualized base rent per square foot was $23.52.

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 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.

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 nine months ended September 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 September 30, 2026 to the Three Months Ended September 30, 2025” and “Comparison of Operating Results for the Nine Months Ended September 30, 2026 to the Nine Months Ended September 30, 2025”) in conjunction with the discussion of our transaction activities during those periods, which is set forth below.

Previous wording

Subsequent to June 30, 2026, we sold Tysons Corner, a 36,942 square foot retail property in the Washington, D.C. MSA.

Current wording

Subsequent to September 30, 2026, we sold the Carillon medical office building, a 126,290 square foot office property in the Washington, D.C. MSA; Circle East, an 82,650 square foot retail property; and Towson Square, a 138,065 square foot retail property, both located in the Baltimore MSA.

Previous 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.

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.

Previous 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.

Current 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.

Previous wording

Rental income (including tenant reimbursements) decreased $17.9 million, or 8.5%, due to the following(in thousands):

Current wording

Rental income (including tenant reimbursements) decreased $15.7 million, or 7.8%, due to the following(in thousands):

Previous 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.

Current wording

The net increase of $6.0 million in rental income for properties that were fully operational during 2025 and 2026 is primarily due to a $3.6 million increase in base minimum rent from contractual rent changes and an increase in leasing spreads, a $1.2 million increase in tenant reimbursements from higher recoverable common area maintenance expenses and real estate taxes, and a $0.4 million decrease in bad debt expense. The occupancy of the fully operational properties increased from 91.1% for the three months ended September 30, 2025 to 91.3% for the three months ended September 30, 2026.

Previous wording

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 wording

Other property-related revenue primarily consists of parking revenues and other miscellaneous activity. This revenue decreased by $0.2 million primarily due to a decrease in miscellaneous revenue.

Previous wording

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 wording

We recorded fee income of $2.5 million and $1.3 million during the three months ended September 30, 2026 and 2025, respectively, from property management and development services provided to third parties and unconsolidated joint ventures.

Previous 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.

Current wording

The net increase of $2.0 million in property operating expenses for properties that were fully operational during 2025 and 2026 is primarily due to increases in the following: (i) $1.3 million in insurance expenses; (ii) $0.3 million in nonrecoverable expenses; and (iii) $0.2 million increases in both landscaping and parking lot expenses and security expenses. As a percentage of revenue, property operating expenses increased from 13.9% to 14.5% due to a decrease in revenue in 2026.

Previous 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.

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 consulting fees, partially offset by an increase in real estate tax refunds received during the three months ended September 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 $1.2 million, or 8.6%, primarily due to an increase in payroll expenses and share-based compensation in 2026.

Current wording

General, administrative and other expenses increased $0.9 million, or 6.0%, primarily due to an increase in payroll expenses and share-based compensation in 2026.

Previous wording

Depreciation and amortization expense decreased $16.3 million, or 16.6%, due to the following(in thousands):

Current wording

Depreciation and amortization expense decreased $9.7 million, or 10.9%, due to the following(in thousands):

Previous 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.

Current wording

The net decrease of $2.0 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

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.

Current wording

Interest expense decreased $1.6 million, or 4.8%, primarily due to the derecognition of the mortgage payable associated with the One Loudoun Phase 1 Apartments in May 2026; a decrease in interest incurred on the unsecured term loans; and the payoffs of the following in 2026 and 2025: (i) $300.0 million principal balance of the 4.00% senior unsecured notes that were scheduled to mature on October 1, 2026 and (ii) $80.0 million principal balance of the 4.47% senior unsecured notes that matured in September 2025, partially offset by interest incurred on the $345.0 million aggregate principal amount of 3.25% exchangeable senior notes that were issued in July 2026 and lower interest rate swap benefits.

Previous wording

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 wording

We recorded a net gain on sales of operating properties of $2.3 million for the three months ended September 30, 2026 primarily on the sale of Tysons Corner compared to a net gain on sales of operating properties of $5.7 million primarily on the sale of Humblewood Shopping Center for the three months ended September 30, 2025.

Previous 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.

Current wording

We recorded a net gain from outlot sales of $2.3 million for the three months ended September 30, 2026 on the sale of a land parcel and the rights to develop 22 residential units at the One Loudoun Expansion in the Washington, D.C. MSA compared to a net gain from outlot sales of $6.1 million recorded during the three months ended September 30, 2025 primarily on the sale of land at Lakewood Towne Center in the Seattle MSA.

Previous wording

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 wording

Equity in loss of unconsolidated joint ventures decreased $0.8 million, or 18.3%, primarily due to improved operating performance at certain joint venture properties during the three months ended September 30, 2026 compared to the prior year.

Previous wording

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 wording

Other income, net increased $2.1 million, or 117.4%, primarily due to an increase in interest income earned from Code Section 1031 tax-deferred exchanges compared to the prior year and the receipt of insurance proceeds in excess of replacement cost during the three months ended September 30, 2026 related to the July 2025 severe flooding at Eastgate Crossing in the Durham-Chapel Hill MSA.

Previous wording

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 wording

The following table reflects changes in the components of our consolidated statements of operations for the nine months ended September 30, 2026 and 2025(in thousands):

Previous wording

Rental income (including tenant reimbursements) decreased $39.0 million, or 9.1%, due to the following(in thousands):

Current wording

Rental income (including tenant reimbursements) decreased $54.7 million, or 8.6%, due to the following(in thousands):

Previous wording

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 wording

The net increase of $17.0 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 $8.3 million from contractual rent changes and an increase in leasing spreads; (ii) tenant reimbursements of $5.9 million from higher recoverable common area maintenance expenses and real estate taxes; and (iii) lease termination income of $0.7 million, along with a decrease in bad debt expense of $0.9 million.

Previous 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.

Current 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 revenue.

Previous 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.

Current wording

We recorded fee income of $5.2 million and $2.6 million during the nine months ended September 30, 2026 and 2025, respectively, from property management and development services provided to third parties and unconsolidated joint ventures.

Previous wording

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 wording

The increase in fee income is primarily due to management fees earned during the nine months ended September 30, 2026 related to the Legacy West Joint Venture and the Seed Asset Joint Venture.

Previous wording

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 wording

The net increase of $7.2 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 $2.7 million; (ii) landscaping and parking lot expenses of $1.7 million; (iii) non-recoverable operating expenses of $1.1 million; and (iv) repairs and maintenance expenses of $1.0 million. As a percentage of revenue, property operating expenses increased from 13.6% to 14.9% due to a decrease in revenue in 2026.

Previous wording

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 wording

The net increase of $2.1 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 nine months ended September 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 $2.8 million, or 11.1%, primarily due to an increase in payroll expenses and share-based compensation in 2026.

Current wording

General, administrative and other expenses increased $3.7 million, or 9.3%, primarily due to an increase in payroll expenses and share-based compensation in 2026.

Previous wording

Depreciation and amortization expense decreased $32.0 million, or 16.3%, due to the following(in thousands):

Current wording

Depreciation and amortization expense decreased $41.7 million, or 14.6%, due to the following(in thousands):

Previous wording

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 wording

The net decrease of $11.4 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.

Previous wording

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 wording

Based on the results of our evaluations for impairment (see Note 4 to the accompanying consolidated financial statements), we recorded $37.6 million of impairment charges during the nine months ended September 30, 2026, of which $15.9 million related to Towson Square and $14.8 million related to Circle East, retail operating properties in the Baltimore MSA that were sold on October 30, 2026. We also incurred a $5.9 million impairment charge related to City Center, a retail operating property in the New York MSA that was sold on June 25, 2026, and we recorded a $1.0 million impairment charge related to the write-off of capitalized costs associated with an abandoned project. During the nine months ended September 30, 2025, we recorded $39.3 million of impairment charges, of which $17.0 million related to City Center and $22.3 million related to the Carillon medical office building and retail portion of the property located in the Washington, D.C. MSA. The Carillon medical office building was sold on October 29, 2026.

Previous wording

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 wording

Interest expense decreased $5.2 million, or 5.2%, primarily due to the payoffs of the following in 2025 and 2026: (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; (iii) $80.0 million principal balance of the 4.47% senior unsecured notes that matured in September 2025; and (iv) $300.0 million principal balance of the 4.00% senior unsecured notes in July 2026 along with the derecognition of the mortgage payable associated with the One Loudoun Phase I Apartments in May 2026 and a decrease in interest incurred on the unsecured term loans and the 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 and the $345.0 million aggregate principal amount of 3.25% exchangeable senior notes that were issued in July 2026 as well as lower interest rate swap benefits.

Previous wording

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 wording

We recorded a net gain on sales of operating properties of $90.1 million for the nine months ended September 30, 2026 on the sales of nine 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 $108.9 million on the sales of three operating retail properties and the contribution of three previously wholly owned properties to the Seed Asset Joint Venture for the nine months ended September 30, 2025.

Previous wording

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.

Current wording

We recorded a net gain from outlot sales of $4.7 million for the nine months ended September 30, 2026 primarily on the sale of a land parcel and the rights to develop 50 residential units at the One Loudoun Expansion in the Washington, D.C. MSA compared to a net gain from outlot sales of $6.1 million recorded during the nine months ended September 30, 2025 primarily on the sale of land at Lakewood Towne Center in the Seattle MSA.

Previous wording

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 wording

During the nine months ended September 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 nine months ended September 30, 2025.

Previous wording

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 wording

Equity in loss of unconsolidated joint ventures decreased $1.1 million, or 13.3%, primarily due to improved operating performance at certain joint venture properties during the nine months ended September 30, 2026 compared to the prior year.

Previous wording

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 wording

Other income, net increased $2.6 million, or 36.8%, primarily due to an increase in interest income earned from 1031 Exchanges and the receipt of insurance proceeds in excess of replacement cost during the nine months ended September 30, 2026 related to the July 2025 severe flooding at Eastgate Crossing in the Durham-Chapel Hill MSA, partially offset by a decrease in interest income earned on bank accounts compared to the prior year.