Terreno Realty Corp

Previous wording

•the factors included under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the Securities and Exchange Commission on February 5, 2025, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which was filed with the Securities and Exchange Commission on May 7, 2025, in this Quarterly Report on Form 10-Q, and in our other public filings;

Current wording

•the factors included under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the Securities and Exchange Commission on February 5, 2025, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which was filed with the Securities and Exchange Commission on May 7, 2025, in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, which was filed with the Securities and Exchange Commission on August 6, 2025, in this Quarterly Report on Form 10-Q, and in our other public filings;

Previous wording

Terreno Realty Corporation (“Terreno”, and together with its subsidiaries, “we”, “us”, “our”, “our Company”, or “the Company”) acquires, owns and operates industrial real estate in six major coastal U.S. markets: New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C. We invest in several types of industrial real estate, including warehouse/distribution (approximately 78.7% of our total annualized base rent as of June 30, 2025), flex (including light industrial and research and development, or R&D) (approximately 3.5%), transshipment (approximately 6.6%) and improved land (approximately 11.2%). We target functional properties in infill locations that may be shared by multiple tenants and that cater to customer demand within the various submarkets in which we operate. Infill locations are geographic locations surrounded by high concentrations of already developed land and existing buildings. As of June 30, 2025, we owned a total of 297 buildings (including three properties consisting of eight buildings and one improved land parcel held for sale) aggregating approximately 18.9 million square feet, 47 improved land parcels consisting of approximately 150.6 acres, six properties under development or redevelopment and approximately 22.4 acres of land for future development. As of June 30, 2025, our buildings and improved land parcels were approximately 97.7% and 95.1% leased, respectively, to 662 customers, the largest of which accounted for approximately 5.3% of our total annualized base rent. See “Item 1 – Our Investment Strategy – Industrial Facility General Characteristics” in our Annual Report on Form 10-K for the year ended December 31, 2024 for a general description of these types of industrial real estate.

Current wording

Terreno Realty Corporation (“Terreno”, and together with its subsidiaries, “we”, “us”, “our”, “our Company”, or “the Company”) acquires, owns and operates industrial real estate in six major coastal U.S. markets: New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C. We invest in several types of industrial real estate, including warehouse/distribution (approximately 80.4% of our total annualized base rent as of September 30, 2025), flex (including light industrial and research and development, or R&D) (approximately 3.4%), transshipment (approximately 6.2%) and improved land (approximately 10.0%). We target functional properties in infill locations that may be shared by multiple tenants and that cater to customer demand within the various submarkets in which we operate. Infill locations are geographic locations surrounded by high concentrations of already developed land and existing buildings. As of September 30, 2025, we owned a total of 307 buildings (including one property consisting of two buildings held for sale) aggregating approximately 20.2 million square feet, 44 improved land parcels consisting of approximately 146.4 acres, six properties under development or redevelopment and approximately 10.7 acres of land for future development. As of September 30, 2025, our buildings and improved land parcels were approximately 96.2% and 93.6% leased, respectively, to 676 customers, the largest of which accounted for approximately 5.0% of our total annualized base rent. See “Item 1 – Our Investment Strategy – Industrial Facility General Characteristics” in our Annual Report on Form 10-K for the year ended December 31, 2024 for a general description of these types of industrial real estate.

Previous wording

3 Includes six properties under development or redevelopment that, upon completion, will consist of nine buildings aggregating approximately 0.9 million square feet and approximately 22.4 acres of land for future development and three properties consisting of eight buildings and one improved land parcel held for sale with a gross book value of approximately $81.3 million.

Current wording

3 Includes six properties under development or redevelopment that, upon completion, will consist of nine buildings aggregating approximately 0.9 million square feet and approximately 10.7 acres of land for future development and one property consisting of two buildings held for sale with a gross book value of approximately $42.6 million.

Previous wording

As of June 30, 2025, we owned six properties under development or redevelopment that, upon completion, will consist of nine buildings aggregating approximately 0.9 million square feet and approximately 22.4 acres of land for future development, with a total expected investment of approximately $436.4 million, including redevelopment costs, capitalized interest and other costs.

Current wording

As of September 30, 2025, we owned six properties under development or redevelopment that, upon completion, will consist of nine buildings aggregating approximately 0.9 million square feet and approximately 10.7 acres of land for future development, with a total expected investment of approximately $391.2 million, including redevelopment costs, capitalized interest and other costs.

Previous wording

The following table summarizes our capital expenditures incurred during the three and six months ended June 30, 2025 and 2024 (dollars in thousands):

Current wording

The following table summarizes our capital expenditures incurred during the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):

Previous wording

2 Includes a net increase in accrued capital expenditures for the operating portfolio of approximately $2.7 million during the three months ended June 30, 2025 and a net increase of approximately $6.2 million during the three months ended June 30, 2024.

Current wording

2 Includes a net increase in accrued capital expenditures for the operating portfolio of approximately $0.3 million during the three months ended September 30, 2025 and a net increase of approximately $0.9 million during the three months ended September 30, 2024.

Previous wording

3 Includes a net decrease in accrued capital expenditures for the operating portfolio of approximately $5.5 million during the six months ended June 30, 2025 and a net increase of approximately $5.9 million during the six months ended June 30, 2024.

Current wording

3 Includes a net decrease in accrued capital expenditures for the operating portfolio of approximately $5.2 million during the nine months ended September 30, 2025 and a net increase of approximately $6.7 million during the nine months ended September 30, 2024.

Previous wording

5 Includes a net increase in accrued capital expenditures for properties under development and redevelopment of approximately $3.2 million during the three months ended June 30, 2025 and a net decrease of approximately $1.0 million during the three months ended June 30, 2024.

Current wording

5 Includes a net decrease in accrued capital expenditures for properties under development and redevelopment of approximately $2.8 million during the three months ended September 30, 2025 and a net increase of approximately $0.9 million during the three months ended September 30, 2024.

Previous wording

6 Includes a net decrease in accrued capital expenditures for properties under development and redevelopment of approximately $4.1 million during the six months ended June 30, 2025 and a net increase of approximately $1.6 million during the six months ended June 30, 2024.

Current wording

6 Includes a net decrease in accrued capital expenditures for properties under development and redevelopment of approximately $6.9 million during the nine months ended September 30, 2025 and a net increase of approximately $2.5 million during the nine months ended September 30, 2024.

Previous wording

Our industrial properties are typically subject to leases on a “triple net basis,” in which tenants pay their proportionate share of real estate taxes, insurance and operating costs, or are subject to leases on a “modified gross basis,” in which tenants pay expenses over certain threshold levels. In addition, approximately 96.7% of our leased space includes fixed rental increases or Consumer Price Index-based rental increases. Lease terms typically range from three to ten years. We monitor the liquidity and creditworthiness of our tenants on an ongoing basis by reviewing outstanding accounts receivable balances, and as provided under the respective lease agreements, review the tenant’s financial condition periodically as appropriate. As needed, we hold discussions with the tenant’s management about their business and we conduct site visits of the tenant’s operations.

Current wording

Our industrial properties are typically subject to leases on a “triple net basis,” in which tenants pay their proportionate share of real estate taxes, insurance and operating costs, or are subject to leases on a “modified gross basis,” in which tenants pay expenses over certain threshold levels. In addition, approximately 96.6% of our leased space includes fixed rental increases or Consumer Price Index-based rental increases. Lease terms typically range from three to ten years. We monitor the liquidity and creditworthiness of our tenants on an ongoing basis by reviewing outstanding accounts receivable balances, and as provided under the respective lease agreements, review the tenant’s financial condition periodically as appropriate. As needed, we hold discussions with the tenant’s management about their business and we conduct site visits of the tenant’s operations.

Previous wording

1 Includes leases that expire on or after June 30, 2025 and month-to-month leases totaling approximately 57,333 square feet. Approximately 0.5 million square feet of the space expiring during 2025 has either been renewed or pre-leased as of June 30, 2025.

Current wording

1 Includes leases that expire on or after September 30, 2025 and month-to-month leases totaling approximately 89,554 square feet. Approximately 0.3 million square feet of the space expiring during 2025 has either been renewed or pre-leased as of September 30, 2025.

Previous wording

4 Includes leases that expire on or after June 30, 2025 and month-to-month leases totaling approximately 5.2 acres. Approximately 5.2 acres of the parcels expiring during 2025 has either been renewed or pre-leased as of June 30, 2025.

Current wording

4 Includes leases that expire on or after September 30, 2025 and month-to-month leases totaling approximately 2.4 acres.

Previous wording

Our ability to re-lease or renew expiring space at rental rates equal to or in excess of current rental rates will impact our results of operations. As of June 30, 2025, leases representing approximately 5.7% of the total annualized base rent of our portfolio are scheduled to expire during the remainder of the year ending December 31, 2025. We currently expect that, on average, the rental rates we are likely to achieve on new (re-leased) or renewed leases for our remaining 2025 expirations will be above the rates currently being paid for the same space. Cash rent changes on new and renewed leases totaling approximately 0.8 million square feet and 9.2 acres of improved land commencing during the three months ended June 30, 2025 were approximately 22.6% higher as compared to the previous rental rates for that same space, and cash rent changes on new and renewed leases totaling approximately 1.4 million square feet and 13.5 acres commencing during the six months ended June 30, 2025 were approximately 26.8% higher as compared to the previous rental rates for that same space. We had a tenant retention ratio for the operating portfolio of 71.1% and 71.4%, respectively, for the three and six months ended June 30, 2025. We had a tenant retention ratio for the improved land portfolio of 100.0% and 56.1%, respectively, for the three and six months ended June 30, 2025. We define tenant retention ratio as the square footage or acreage of all leases commenced during the period that are rented by existing tenants divided by the square footage or acreage of all expiring leases during the reporting period. The square footage or acreage of tenants that default or buy-out prior to expiration of their lease and short-term leases of less than one year are not included in the calculation.

Current wording

Our ability to re-lease or renew expiring space at rental rates equal to or in excess of current rental rates will impact our results of operations. As of September 30, 2025, leases representing approximately 3.0% of the total annualized base rent of our portfolio are scheduled to expire during the remainder of the year ending December 31, 2025. We currently expect that, on average, the rental rates we are likely to achieve on new (re-leased) or renewed leases for our remaining 2025 expirations will be above the rates currently being paid for the same space. Cash rent changes on new and renewed leases totaling approximately 0.6 million square feet and 8.0 acres of improved land commencing during the three months ended September 30, 2025 were approximately 17.2% higher as compared to the previous rental rates for that same space, and cash rent changes on new and renewed leases totaling approximately 2.0 million square feet and 21.5 acres commencing during the nine months ended September 30, 2025 were approximately 23.8% higher as compared to the previous rental rates for that same space. We had a tenant retention ratio for the operating portfolio of 68.7% and 70.8%, respectively, for the three and nine months ended September 30, 2025. We had a tenant retention ratio for the improved land portfolio of 100.0% and 74.1%, respectively, for the three and nine months ended September 30, 2025. We define tenant retention ratio as the square footage or acreage of all leases commenced during the period that are rented by existing tenants divided by the square footage or acreage of all expiring leases during the reporting period. The square footage or acreage of tenants that default or buy-out prior to expiration of their lease and short-term leases of less than one year are not included in the calculation.

Previous wording

During the three months ended June 30, 2025, we acquired six industrial properties, for a total purchase price of approximately $123.5 million. The properties were acquired from unrelated third parties using existing cash on hand and net proceeds from the issuance of common stock. The following table sets forth the industrial properties we acquired during the three months ended June 30, 2025:

Current wording

During the three months ended September 30, 2025, we acquired two industrial properties and one portfolio of industrial properties, for a total purchase price of approximately $472.6 million. The properties were acquired from unrelated third parties using existing cash on hand and proceeds from dispositions. The following table sets forth the industrial properties we acquired during the three months ended September 30, 2025:

Previous wording

1 Excludes intangible liabilities. The total aggregate initial investment was approximately $152.8 million, including $2.6 million in capitalized closing costs and acquisition costs, and $26.7 million in assumed intangible liabilities.

Current wording

1 Excludes intangible liabilities. The total aggregate initial investment was approximately $485.5 million, including $9.3 million in capitalized closing costs and acquisition costs, $5.2 million in assumed intangible liabilities and $1.6 million in other credits related to near term capital expenditures and tenant improvements at multiple properties.

Previous wording

As of June 30, 2025, we had six properties under development or redevelopment that, upon completion, will consist of nine buildings aggregating approximately 0.9 million square feet. Additionally, we owned approximately 22.4 acres of land for future development that, upon completion, will consist of two buildings aggregating approximately 0.4 million square feet. The following table summarizes certain information with respect to the properties under development or redevelopment and the land for future development as of June 30, 2025:

Current wording

As of September 30, 2025, we had six properties under development or redevelopment that, upon completion, will consist of nine buildings aggregating approximately 0.9 million square feet. Additionally, we owned approximately 10.7 acres of land for future development that, upon completion, will consist of one building of approximately 0.2 million square feet. The following table summarizes certain information with respect to the properties under development or redevelopment and the land for future development as of September 30, 2025:

Previous wording

During the six months ended June 30, 2025, we completed the redevelopment of one property. The following table summarizes certain information with respect to that redevelopment property completed during the six months ended June 30, 2025:

Current wording

During the nine months ended September 30, 2025, we completed the development and redevelopment of two properties. The following table summarizes certain information with respect to those development and redevelopment properties completed during the nine months ended September 30, 2025:

Previous wording

1 Total investment for the property includes the initial purchase price, buyer’s due diligence and closing costs, redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization.

Current wording

1 Total investment for the properties include the initial purchase price, buyer’s due diligence and closing costs, redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization.

Previous wording

We capitalized interest associated with development, redevelopment and expansion activities of approximately $1.1 million and $2.8 million during the three months ended June 30, 2025 and 2024, respectively, and approximately $2.4 million and $5.9 million during the six months ended June 30, 2025 and 2024, respectively.

Current wording

We capitalized interest associated with development, redevelopment and expansion activities of approximately $1.4 million and $2.7 million during the three months ended September 30, 2025 and 2024, respectively, and approximately $3.8 million and $8.7 million during the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

The following table summarizes the properties we sold during the six months ended June 30, 2025 (dollars in thousands):

Current wording

The following table summarizes the properties we sold during the nine months ended September 30, 2025 (dollars in thousands):

Previous wording

The following summarizes the condensed results of operations of the properties sold during the three and six months ended June 30, 2025 (dollars in thousands):

Current wording

The following summarizes the condensed results of operations of the properties sold during the three and nine months ended September 30, 2025 (dollars in thousands):

Previous wording

We have an at-the-market equity offering program (the “$500 Million ATM Program”) pursuant to which we may issue and sell shares of our common stock having an aggregate offering price of up to $500.0 million ($200.8 million remaining as of June 30, 2025) in amounts and at times as we determine from time to time. We intend to use the net proceeds from the offering of the shares under the $500 Million ATM Program, if any, for general corporate purposes, which may include future acquisitions, redevelopments and repayment of indebtedness, including borrowings under our revolving credit facility. During the three months ended June 30, 2025, we did not issue any common stock under the $500 Million ATM Program. During the six months ended June 30, 2025, we issued an aggregate of 3,506,371 shares of common stock at a weighted average offering price of $67.71 per share under the $500 Million ATM Program, resulting in net proceeds of approximately $234.0 million and paying total compensation to the applicable sales agents of approximately $3.4 million.

Current wording

We have an at-the-market equity offering program (the “$500 Million ATM Program”) pursuant to which we may issue and sell shares of our common stock having an aggregate offering price of up to $500.0 million ($200.8 million remaining as of September 30, 2025) in amounts and at times as we determine from time to time. We intend to use the net proceeds from the offering of the shares under the $500 Million ATM Program, if any, for general corporate purposes, which may include future acquisitions, redevelopments and repayment of indebtedness, including borrowings under our revolving credit facility. During the three months ended September 30, 2025, we did not issue any common stock under the $500 Million ATM Program. During the nine months ended September 30, 2025, we issued an aggregate of 3,506,371 shares of common stock at a weighted average offering price of $67.71 per share under the $500 Million ATM Program, resulting in net proceeds of approximately $234.0 million and paying total compensation to the applicable sales agents of approximately $3.4 million.

Previous wording

As of August 5, 2025, we had three outstanding contracts with third-party sellers to acquire two industrial properties and one portfolio of industrial properties for a total purchase price of $472.5 million. There is no assurance that we will acquire the properties under contracts because the proposed acquisitions are subject to due diligence and various closing conditions.

Current wording

As of November 4, 2025, we had three outstanding contracts with third-party sellers to acquire three industrial properties for a total purchase price of approximately $82.3 million. There is no assurance that we will acquire the properties under contracts because the proposed acquisitions are subject to due diligence and various closing conditions.

Previous wording

As of August 5, 2025, we had executed two non-binding letters of intent with third-party sellers to acquire two industrial properties for a total anticipated purchase price of approximately $26.7 million. In the normal course of its business, we enter into non-binding letters of intent to purchase properties from third parties that may obligate us to make payments or perform other obligations upon the occurrence of certain events, including the execution of a purchase and sale agreement and satisfactory completion of various due diligence matters. There can be no assurance that we will enter into a purchase and sale agreement with respect to these properties or otherwise complete any such prospective purchases on the terms described or at all.

Current wording

As of November 4, 2025, we had executed one non-binding letter of intent with a third-party seller to acquire one industrial property for a total anticipated purchase price of approximately $11.4 million. In the normal course of its business, we enter into non-binding letters of intent to purchase properties from third parties that may obligate us to make payments or perform other obligations upon the occurrence of certain events, including the execution of a purchase and sale agreement and satisfactory completion of various due diligence matters. There can be no assurance that we will enter into a purchase and sale agreement with respect to this property or otherwise complete any such prospective purchases on the terms described or at all.

Previous wording

The U.S. economy experienced a significant increase in inflation rates in recent years. A wide variety of industries and sectors have been, and may continue to be, affected by increasing commodity prices. In recent years, inflation has increased construction costs, including tenant improvements and capital projects, goods and labor, and operating costs. Most of our leases require the tenants to pay their share of operating expenses, including common area maintenance, real estate taxes and insurance, thereby reducing our exposure to increases in costs and operating expenses resulting from inflation. In addition, leases with respect to approximately 63.6% of our total rentable square feet and improved land acreage expire within five years which enables us to seek to replace existing leases with new leases at the then-existing market rate.

Current wording

The U.S. economy experienced a significant increase in inflation rates in recent years. A wide variety of industries and sectors have been, and may continue to be, affected by increasing commodity prices. In recent years, inflation has increased construction costs, including tenant improvements and capital projects, goods and labor, and operating costs. Most of our leases require the tenants to pay their share of operating expenses, including common area maintenance, real estate taxes and insurance, thereby reducing our exposure to increases in costs and operating expenses resulting from inflation. In addition, leases with respect to approximately 60.5% of our total rentable square feet and improved land acreage expire within five years, which enables us to seek to replace existing leases with new leases at the then-existing market rate.

Previous wording

We derive substantially all of our revenues from rents received from tenants under existing leases on each of our properties. These revenues include fixed base rents and recoveries of certain property operating expenses that we have incurred and that we pass through to the individual tenants. Approximately 96.7% of our leased space includes fixed rental increases or Consumer Price Index-based rental increases. Lease terms typically range from three to ten years.

Current wording

We derive substantially all of our revenues from rents received from tenants under existing leases on each of our properties. These revenues include fixed base rents and recoveries of certain property operating expenses that we have incurred and that we pass through to the individual tenants. Approximately 96.6% of our leased space includes fixed rental increases or Consumer Price Index-based rental increases. Lease terms typically range from three to ten years.

Previous wording

The analysis of our results below for the three and six months ended June 30, 2025 and 2024 includes the changes attributable to same store properties. The same store pool for the comparison of the three and six months ended June 30, 2025 and 2024 includes all properties that were owned and in operation as of June 30, 2025 and since January 1, 2024 and excludes properties that were either disposed of prior to, held for sale to a third party or in development or redevelopment as of June 30, 2025. As of June 30, 2025, the same store pool consisted of 237 buildings aggregating approximately 14.1 million square feet representing approximately 74.4% of our total square feet owned and 44 improved land parcels consisting of approximately 144.6 acres representing approximately 96.0% of our total acreage owned. As of June 30, 2025, the non-same store properties, which we acquired, developed or redeveloped, or sold during 2025 and 2024 or were held for sale or in development or redevelopment as of June 30, 2025, consisted of 60 buildings aggregating approximately 4.8 million square feet, three improved land parcels consisting of approximately 6.0 acres, six properties under development or redevelopment and approximately 22.4 acres of land for future development. As of June 30, 2025 and 2024, our consolidated same store pool occupancy was approximately 98.5% and 96.1%, respectively.

Current wording

The analysis of our results below for the three and nine months ended September 30, 2025 and 2024 includes the changes attributable to same store properties. The same store pool for the comparison of the three and nine months ended September 30, 2025 and 2024 includes all properties that were owned and in operation as of September 30, 2025 and since January 1, 2024 and excludes properties that were either disposed of prior to, held for sale to a third party or in development or redevelopment as of September 30, 2025. As of September 30, 2025, the same store pool consisted of 237 buildings aggregating approximately 14.1 million square feet representing approximately 70.0% of our total square feet owned and 42 improved land parcels consisting of approximately 142.5 acres representing approximately 97.3% of our total acreage owned. As of September 30, 2025, the non-same store properties, which we acquired, developed or redeveloped, or sold during 2025 and 2024 or were held for sale or in development or redevelopment as of September 30, 2025, consisted of 70 buildings aggregating approximately 6.0 million square feet, two improved land parcels consisting of approximately 3.9 acres, six properties under development or redevelopment and approximately 10.7 acres of land for future development. As of September 30, 2025 and 2024, our consolidated same store pool occupancy was approximately 98.6% and 97.1%, respectively.

Previous wording

Revenues. Total revenues increased approximately $18.0 million for the three months ended June 30, 2025 compared to the same period from the prior year due primarily to increased revenue on new and renewed leases during 2025 and 2024, property acquisitions during 2025 and 2024 and increased occupancy in the same store pool. Cash rents on new and renewed leases totaling approximately 0.8 million square feet and 9.2 acres of improved land commencing during the three months ended June 30, 2025 increased approximately 22.6% compared to the previous rental rates. For the three months ended June 30, 2025 and 2024, approximately $3.0 million and $2.1 million, respectively, was recorded in straight-line rental revenues related to contractual rent abatements given to certain tenants and approximately $0.5 million and $0.4 million, respectively, was recorded in lease termination revenue. Additionally, total revenues for the three months ended June 30, 2025 and 2024 were partially offset by approximately $1.6 million and $1.5 million, respectively, of bad debt expense.

Current wording

Revenues. Total revenues increased approximately $16.6 million for the three months ended September 30, 2025 compared to the same period from the prior year due primarily to increased revenue on new and renewed leases during 2025 and 2024, property acquisitions during 2025 and 2024 and increased occupancy in the same store pool. The increase in total revenues was partially offset by property dispositions during 2025. Cash rents on new and renewed leases totaling approximately 0.6 million square feet and 8.0 acres of improved land commencing during the three months ended September 30, 2025 increased approximately 17.2% compared to the previous rental rates. For the three months ended September 30, 2025 and 2024, approximately $3.5 million and $2.1 million, respectively, was recorded in straight-line rental revenues related to contractual rent abatements given to certain tenants and approximately $0.1 million and $10,000, respectively, was recorded in lease termination revenue. Additionally, total revenues for the three months ended September 30, 2025 were partially offset by approximately $0.8 million of bad debt expense.

Previous wording

Property operating expenses. Total property operating expenses increased approximately $4.1 million during the three months ended June 30, 2025 compared to the same period from the prior year. The increase in total property operating expenses was primarily due to an increase of approximately $3.7 million attributable to property acquisitions during 2025 and 2024 as well as increases in real estate taxes.

Current wording

Property operating expenses. Total property operating expenses increased approximately $2.6 million during the three months ended September 30, 2025 compared to the same period from the prior year. The increase in total property operating expenses was primarily due to an increase of approximately $2.5 million attributable to property acquisitions during 2025 and 2024 as well as increases in real estate taxes. The increase in total property operating expenses was partially offset by property dispositions during 2025.

Previous wording

Depreciation and amortization. Depreciation and amortization increased approximately $5.0 million during the three months ended June 30, 2025 compared to the same period from the prior year primarily due to property acquisitions during 2025 and 2024.

Current wording

Depreciation and amortization. Depreciation and amortization increased approximately $4.3 million during the three months ended September 30, 2025 compared to the same period from the prior year primarily due to property acquisitions during 2025 and 2024, partially offset by property dispositions during 2025.

Previous wording

General and administrative expenses. General and administrative expenses increased approximately $1.8 million during the three months ended June 30, 2025 compared to the same period from the prior year primarily due to increased compensation expenses, including increased restricted stock amortization, LTIP expense and bonus expense, and an increase in the number of employees and salaries compared to the same period from the prior year.

Current wording

General and administrative expenses. General and administrative expenses increased approximately $0.8 million during the three months ended September 30, 2025 compared to the same period from the prior year primarily due to increased compensation expenses, including increased restricted stock amortization and LTIP expense, and an increase in the number of employees and salaries compared to the same period from the prior year.

Previous wording

Interest and other income. Interest and other income decreased approximately $2.4 million for the three months ended June 30, 2025 compared to the same period from the prior year primarily due to lower cash and cash equivalent balances and lower interest rates on those balances.

Current wording

Interest and other income. Interest and other income decreased approximately $1.0 million for the three months ended September 30, 2025 compared to the same period from the prior year primarily due to lower cash and cash equivalent balances and lower interest rates on those balances.

Previous wording

Interest expense, including amortization. Interest expense increased approximately $1.5 million for the three months ended June 30, 2025 compared to the same period from the prior year. This was primarily due to a decrease in capitalized interest for the development and redevelopment properties.

Current wording

Interest expense, including amortization. Interest expense increased approximately $3.5 million for the three months ended September 30, 2025 compared to the same period from the prior year. This was primarily due to higher outstanding debt during the three months ended September 30, 2025 compared to the same period from the prior year, as well as a decrease in capitalized interest for the development and redevelopment properties.

Previous wording

Gain on sales of real estate investments. Gain on sales of real estate investments increased approximately $54.6 million for the three months ended June 30, 2025 compared to the same period from the prior year. We recognized an aggregate gain of approximately $54.6 million from the sale of two properties during the three months ended June 30, 2025. We did not sell any properties during the three months ended June 30, 2024.

Current wording

Gain on sales of real estate investments. Gain on sales of real estate investments increased approximately $62.4 million for the three months ended September 30, 2025 compared to the same period from the prior year. We recognized an aggregate gain of approximately $62.4 million from the sale of three properties during the three months ended September 30, 2025. We did not sell any properties during the three months ended September 30, 2024.

Previous wording

Revenues. Total revenues increased approximately $43.4 million for the six months ended June 30, 2025 compared to the same period from the prior year due primarily to increased revenue on new and renewed leases, property acquisitions during 2025 and 2024 and increased occupancy in the same store pool. Cash rents on new and renewed leases totaling approximately 1.4 million square feet and 13.5 acres commencing during the six months ended June 30, 2025 increased approximately 26.8% compared to the previous rental rates. For the six months ended June 30, 2025 and 2024, approximately $6.5 million and $3.3 million, respectively, was recorded in straight-line rental revenues related to contractual rent abatements given to certain tenants and approximately $0.7 million and $0.5 million, respectively, was recorded in lease termination revenue. The increase in total revenues for the six months ended June 30, 2025 and 2024 were partially offset by approximately $3.3 million and $1.8 million, respectively, of bad debt expense.

Current wording

Revenues. Total revenues increased approximately $60.0 million for the nine months ended September 30, 2025 compared to the same period from the prior year primarily due to property acquisitions during 2025 and 2024, increased revenue on new and renewed leases, and increased occupancy in the same store pool. The increase in total revenues was partially offset by property dispositions during 2025. Cash rents on new and renewed leases totaling approximately 2.0 million square feet and 21.5 acres commencing during the nine months ended September 30, 2025 increased approximately 23.8% compared to the previous rental rates. For the nine months ended September 30, 2025 and 2024, approximately $10.0 million and $5.4 million, respectively, was recorded in straight-line rental revenues related to contractual rent abatements given to certain tenants and approximately $0.7 million and $0.5 million, respectively, was recorded in lease termination revenue. Total revenues for the nine months ended September 30, 2025 and 2024 were partially offset by approximately $4.0 million and $1.7 million, respectively, of bad debt expense.

Previous wording

Property operating expenses. Total property operating expenses increased approximately $12.0 million during the six months ended June 30, 2025 compared to the same period from the prior year. The increase in total property operating expenses was primarily due to property acquisitions during 2025 and 2024 as well as increases in real estate taxes.

Current wording

Property operating expenses. Total property operating expenses increased approximately $14.6 million during the nine months ended September 30, 2025 compared to the same period from the prior year. The increase in total property operating expenses was primarily due to property acquisitions during 2025 and 2024 as well as increases in real estate taxes. The increase in total property operating expenses was partially offset by property dispositions during 2025.

Previous wording

Depreciation and amortization. Depreciation and amortization increased approximately $11.0 million during the six months ended June 30, 2025 compared to the same period from the prior year primarily due to property acquisitions during 2025 and 2024.

Current wording

Depreciation and amortization. Depreciation and amortization increased approximately $15.3 million during the nine months ended September 30, 2025 compared to the same period from the prior year primarily due to property acquisitions during 2025 and 2024, partially offset by property dispositions during 2025.

Previous wording

General and administrative expenses. General and administrative expenses increased approximately $3.0 million for the six months ended June 30, 2025 compared to the same period from the prior year primarily due to increased compensation expenses, including increased restricted stock amortization, LTIP expense and bonus expense, and an increase in the number of employees and salaries compared to the same period from the prior year.

Current wording

General and administrative expenses. General and administrative expenses increased approximately $3.8 million for the nine months ended September 30, 2025 compared to the same period from the prior year primarily due to increased compensation expenses, including increased restricted stock amortization, LTIP expense and bonus expense, and an increase in the number of employees and salaries compared to the same period from the prior year.

Previous wording

Interest and other income. Interest and other income decreased approximately $4.1 million during the six months ended June 30, 2025 compared to the same period from the prior year primarily due to lower cash and cash equivalent balances throughout 2025.

Current wording

Interest and other income. Interest and other income decreased approximately $5.0 million during the nine months ended September 30, 2025 compared to the same period from the prior year primarily due to lower cash and cash equivalent balances throughout 2025.

Previous wording

Interest expense, including amortization. Interest expense increased approximately $4.2 million for the six months ended June 30, 2025 compared to the same period from the prior year. This was primarily due to a decrease in capitalized interest for the development and redevelopment properties during the six months ended June 30, 2025.

Current wording

Interest expense, including amortization. Interest expense increased approximately $7.7 million for the nine months ended September 30, 2025 compared to the same period from the prior year. This was primarily due to higher outstanding debt during the nine months ended September 30, 2025, as well as a decrease in capitalized interest for the development and redevelopment properties.