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, 2025, which was filed with the Securities and Exchange Commission on February 4, 2026, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, which was filed with the Securities and Exchange Commission on May 6, 2026, 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, 2025, which was filed with the Securities and Exchange Commission on February 4, 2026, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, which was filed with the Securities and Exchange Commission on May 6, 2026, in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, which was filed with the Securities and Exchange Commission on August 5, 2026, 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 80.1% of our total annualized base rent as of June 30, 2026), flex (including light industrial and research and development, or R&D) (approximately 4.1%), transshipment (approximately 6.3%) and improved land (approximately 9.5%). 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, 2026, we owned a total of 316 buildings (including one building held for sale) aggregating approximately 20.6 million square feet, 46 improved land parcels consisting of approximately 147.0 acres and four properties under development or redevelopment. As of June 30, 2026, our buildings and improved land parcels were approximately 97.6% and 93.3% leased, respectively, to 697 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, 2025 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 80.7% of our total annualized base rent as of September 30, 2026), flex (including light industrial and research and development, or R&D) (approximately 4.3%), transshipment (approximately 5.6%) and improved land (approximately 9.4%). 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, 2026, we owned a total of 317 buildings (excluding one building held for sale) aggregating approximately 20.5 million square feet, 46 improved land parcels consisting of approximately 146.5 acres and three properties under development or redevelopment. As of September 30, 2026, our buildings and improved land parcels were approximately 97.8% and 95.5% leased, respectively, to 687 customers, the largest of which accounted for approximately 6.8% 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, 2025 for a general description of these types of industrial real estate.

Previous wording

3 Includes four properties under development or redevelopment that, upon completion, will consist of four buildings aggregating approximately 0.7 million square feet and one building held for sale with a gross book value of approximately $3.7 million.

Current wording

3 Includes three properties under development or redevelopment that, upon completion, will consist of three buildings aggregating approximately 0.6 million square feet and one building held for sale with a gross book value of approximately $12.9 million.

Previous wording

As of June 30, 2026, we owned four properties under development or redevelopment that, upon completion, will consist of four buildings aggregating approximately 0.7 million square feet, with a total expected investment of approximately $268.5 million, including redevelopment costs, capitalized interest and other costs.

Current wording

As of September 30, 2026, we owned three properties under development or redevelopment that, upon completion, will consist of three buildings aggregating approximately 0.6 million square feet, with a total expected investment of approximately $165.1 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, 2026 and 2025 (dollars in thousands):

Current wording

The following table summarizes our capital expenditures incurred during the three and nine months ended September 30, 2026 and 2025 (dollars in thousands):

Previous wording

2 Includes a net increase in accrued capital expenditures for the operating portfolio of approximately $13.5 million during the three months ended June 30, 2026 and a net increase of approximately $2.7 million during the three months ended June 30, 2025.

Current wording

2 Includes a net decrease in accrued capital expenditures for the operating portfolio of approximately $4.0 million during the three months ended September 30, 2026 and a net increase of approximately $0.3 million during the three months ended September 30, 2025.

Previous wording

3 Includes a net increase in accrued capital expenditures for the operating portfolio of approximately $20.0 million during the six months ended June 30, 2026 and a net decrease of approximately $5.5 million during the six months ended June 30, 2025.

Current wording

3 Includes a net increase in accrued capital expenditures for the operating portfolio of approximately $15.9 million during the nine months ended September 30, 2026 and a net decrease of approximately $5.2 million during the nine months ended September 30, 2025.

Previous wording

5 Includes a net increase in accrued capital expenditures for properties under development and redevelopment of approximately $4.4 million during the three months ended June 30, 2026 and a net increase of approximately $3.2 million during the three months ended June 30, 2025.

Current wording

5 Includes a net decrease in accrued capital expenditures for properties under development and redevelopment of approximately $6.4 million during the three months ended September 30, 2026 and a net decrease of approximately $2.8 million during the three months ended September 30, 2025.

Previous wording

6 Includes a net increase in accrued capital expenditures for properties under development and redevelopment of approximately $15.1 million during the six months ended June 30, 2026 and a net decrease of approximately $4.1 million during the six months ended June 30, 2025.

Current wording

6 Includes a net increase in accrued capital expenditures for properties under development and redevelopment of approximately $8.7 million during the nine months ended September 30, 2026 and a net decrease of approximately $6.9 million during the nine months ended September 30, 2025.

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 97.4% 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 97.2% 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, 2026 and month-to-month leases totaling approximately 54,439 square feet. Approximately 1.2 million square feet of the space expiring during 2026 has either been renewed or pre-leased as of June 30, 2026.

Current wording

1 Includes leases that expire on or after September 30, 2026 and month-to-month leases totaling approximately 36,944 square feet. Approximately 0.8 million square feet of the space expiring during 2026 has either been renewed or pre-leased as of September 30, 2026.

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, 2026, leases representing approximately 9.3% of the total annualized base rent of our portfolio are scheduled to expire during the remainder of the year ending December 31, 2026. We currently expect that, on average, the rental rates we are likely to achieve on new (re-leased) or renewed leases for our remaining 2026 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 7.5 acres of improved land commencing during the three months ended June 30, 2026 were approximately 27.7% higher as compared to the previous rental rates for that same space, and cash rent changes on new and renewed leases totaling approximately 1.5 million square feet and 14.7 acres commencing during the six months ended June 30, 2026 were approximately 25.3% higher as compared to the previous rental rates for that same space. We had a tenant retention ratio for the operating portfolio of 55.6% and 63.2%, respectively, for the three and six months ended June 30, 2026. We had a tenant retention ratio for the improved land portfolio of 100.0% and 60.3%, respectively, for the three and six months ended June 30, 2026. 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, 2026, leases representing approximately 4.6% of the total annualized base rent of our portfolio are scheduled to expire during the remainder of the year ending December 31, 2026. We currently expect that, on average, the rental rates we are likely to achieve on new (re-leased) or renewed leases for our remaining 2026 expirations will be above the rates currently being paid for the same space. Cash rent changes on new and renewed leases totaling approximately 1.1 million square feet and 3.6 acres of improved land commencing during the three months ended September 30, 2026 were approximately 27.7% higher as compared to the previous rental rates for that same space, and cash rent changes on new and renewed leases totaling approximately 2.6 million square feet and 18.3 acres commencing during the nine months ended September 30, 2026 were approximately 26.1% higher as compared to the previous rental rates for that same space. We had a tenant retention ratio for the operating portfolio of 66.7% and 64.6%, respectively, for the three and nine months ended September 30, 2026. We had a tenant retention ratio for the improved land portfolio of 0.0% and 58.5%, respectively, for the three and nine months ended September 30, 2026. 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, 2026, we acquired four industrial properties, for a total purchase price of approximately $172.3 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 June 30, 2026:

Current wording

During the three months ended September 30, 2026, we acquired three industrial properties, for a total purchase price of approximately $49.0 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, 2026:

Previous wording

1 Excludes intangible liabilities. The total aggregate initial investment was approximately $179.7 million, including $2.3 million in capitalized closing costs and acquisition costs and $5.1 million in assumed intangible liabilities.

Current wording

1 Excludes intangible liabilities. The total aggregate initial investment was approximately $49.8 million, including $1.0 million in capitalized closing costs and acquisition costs, $0.2 million in assumed intangible liabilities and $0.4 million in other credits related to near term capital expenditures.

Previous wording

As of June 30, 2026, we had four properties under development or redevelopment that, upon completion, will consist of four buildings aggregating approximately 0.7 million square feet. The following table summarizes certain information with respect to the properties under development or redevelopment as of June 30, 2026:

Current wording

As of September 30, 2026, we had three properties under development or redevelopment that, upon completion, will consist of three buildings aggregating approximately 0.6 million square feet. The following table summarizes certain information with respect to the properties under development or redevelopment as of September 30, 2026:

Previous wording

1 Excludes below-market lease adjustments recorded at acquisition, if any. Total expected investment for the properties includes the initial purchase price, buyer’s due diligence and closing costs, estimated near-term redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization.

Current wording

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

Previous wording

During the six months ended June 30, 2026, we completed the development of two properties. The following table summarizes certain information with respect to the development properties completed during the six months ended June 30, 2026:

Current wording

During the nine months ended September 30, 2026, we completed the development of three properties. The following table summarizes certain information with respect to the development properties completed during the nine months ended September 30, 2026:

Previous wording

1 Total investment for the properties 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 expected investment for the properties includes 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 $2.0 million and $1.1 million during the three months ended June 30, 2026 and 2025, respectively, and approximately $3.5 million and $2.4 million during the six months ended June 30, 2026 and 2025, respectively.

Current wording

We capitalized interest associated with development, redevelopment and expansion activities of approximately $1.5 million and $1.4 million during the three months ended September 30, 2026 and 2025, respectively, and approximately $5.0 million and $3.8 million during the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

The following table summarizes the properties we sold during the six months ended June 30, 2026 (dollars in thousands):

Current wording

The following table summarizes the properties we sold during the nine months ended September 30, 2026 (dollars in thousands):

Previous wording

In addition to the properties sold, we recorded a net gain of approximately $0.1 million during the six months ended June 30, 2026 related to the settlement of eminent domain proceedings at the Terreno North Hackensack property.

Current wording

In addition to the properties sold, we recorded a net gain of approximately $0.5 million and $0.6 million during the three and nine months ended September 30, 2026, respectively, related to the settlement of eminent domain proceedings at the Terreno North Hackensack property.

Previous wording

The following summarizes the condensed results of operations of the properties sold during the three and six months ended June 30, 2026 (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, 2026 (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 (approximately $359.0 million remaining as of June 30, 2026) in amounts and at times to be determined by us from time to time. Prior to the implementation of the $500 Million ATM Program, we had a previous at-the-market equity offering program (the “Previous $500 Million ATM Program”), which was substantially utilized as of February 16, 2026 and is no longer active. Actual sales under the $500 Million ATM Program, if any, will depend on a variety of factors to be determined by us from time to time, including, among others, market conditions, the trading price of our common stock, determinations by us of the appropriate sources of funding for us and potential uses of funding available to us. During the three and six months ended June 30, 2026, we issued an aggregate of 1,992,940 and 4,074,228 shares, respectively, of common stock at a weighted average offering price of $66.46 and $65.64 per share, respectively, under the Previous $500 Million ATM Program and the $500 Million ATM Program, resulting in net proceeds of approximately $130.5 million and $263.5 million, respectively, and paying total compensation to the applicable sales agents of approximately $1.9 million and $3.9 million, respectively.

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 (approximately $227.5 million remaining as of September 30, 2026) in amounts and at times to be determined by us from time to time. Prior to the implementation of the $500 Million ATM Program, we had a previous at-the-market equity offering program (the “Previous $500 Million ATM Program”), which was substantially utilized as of February 16, 2026 and is no longer active. Actual sales under the $500 Million ATM Program, if any, will depend on a variety of factors to be determined by us from time to time, including, among others, market conditions, the trading price of our common stock, determinations by us of the appropriate sources of funding for us and potential uses of funding available to us. During the three and nine months ended September 30, 2026, we issued an aggregate of 1,958,245 and 6,032,473 shares, respectively, of common stock at a weighted average offering price of $67.12 and $66.12 per share, respectively, under the Previous $500 Million ATM Program and the $500 Million ATM Program, resulting in net proceeds of approximately $129.5 million and $393.1 million, respectively, and paying total compensation to the applicable sales agents of approximately $1.9 million and $5.8 million, respectively.

Previous wording

We have a share repurchase program authorizing us to repurchase up to 3,000,000 shares of our outstanding common stock from time to time through December 31, 2026. Purchases made pursuant to this program, if any, will be made in either the open market or in privately negotiated transactions as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by us in our discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The program may be suspended or discontinued at any time. As of June 30, 2026, we had not repurchased any shares of our common stock pursuant to our share repurchase program.

Current wording

On November 3, 2026, our Board of Directors approved a share repurchase program authorizing us to repurchase up to 3,000,000 shares of our outstanding common stock through December 31, 2028, which replaces our prior program scheduled to expire December 31, 2026. Purchases made pursuant to this program, if any, will be made in either the open market or in privately negotiated transactions as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by us in our discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The program may be suspended or discontinued at any time. We did not repurchase any shares under our prior program.

Previous wording

As of August 4, 2026, we had five outstanding contracts with third-party sellers to acquire five industrial properties for a total purchase price of approximately $89.5 million. There is no assurance that we will acquire the properties under contract because the proposed acquisitions are subject to due diligence and various closing conditions.

Current wording

As of November 3, 2026, we had three outstanding contracts with third-party sellers to acquire three industrial properties for a total purchase price of approximately $53.3 million. There is no assurance that we will acquire the properties under contract because the proposed acquisitions are subject to due diligence and various closing conditions.

Previous wording

As of August 4, 2026, 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 $23.1 million. In the normal course of our 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.

Current wording

As of November 3, 2026, we had executed one non-binding access agreement or letter of intent with a third-party seller to acquire one industrial property for a total anticipated purchase price of approximately $22.0 million. In the normal course of our business, we enter into non-binding access agreements or 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 prospective 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 62.3% 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. Approximately 97.4% of our leased space includes fixed rental increases or Consumer Price Index-based rental increases.

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 57.8% 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. Approximately 97.2% of our leased space includes fixed rental increases or Consumer Price Index-based rental increases.

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 97.4% 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 97.2% 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, 2026 and 2025 includes the changes attributable to same store properties. The same store pool for the comparison of the three and six months ended June 30, 2026 and 2025 includes all properties that were owned and in operation as of June 30, 2026 and since January 1, 2025 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, 2026. As of June 30, 2026, the same store pool consisted of 280 buildings aggregating approximately 17.5 million square feet representing approximately 85.1% of our total square feet owned and 44 improved land parcels consisting of approximately 146.4 acres representing approximately 99.6% of our total acreage owned. As of June 30, 2026, the non-same store properties, which we acquired, developed or redeveloped, or sold during 2026 and 2025 or which were held for sale or in development or redevelopment as of June 30, 2026, consisted of 36 buildings aggregating approximately 3.1 million square feet, two improved land parcels consisting of approximately 0.6 acres and four properties under development or redevelopment. As of June 30, 2026 and 2025, our consolidated same store pool occupancy was approximately 97.8% and 97.7%, respectively.

Current wording

The analysis of our results below for the three and nine months ended September 30, 2026 and 2025 includes the changes attributable to same store properties. The same store pool for the comparison of the three and nine months ended September 30, 2026 and 2025 includes all properties that were owned and in operation as of September 30, 2026 and since January 1, 2025 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, 2026. As of September 30, 2026, the same store pool consisted of 278 buildings aggregating approximately 17.3 million square feet representing approximately 84.4% of our total square feet owned and 44 improved land parcels consisting of approximately 145.9 acres representing approximately 99.6% of our total acreage owned. As of September 30, 2026, the non-same store properties, which we acquired, developed or redeveloped, or sold during 2026 and 2025 or which were held for sale or in development or redevelopment as of September 30, 2026, consisted of 40 buildings aggregating approximately 3.3 million square feet, two improved land parcels consisting of approximately 0.6 acres and three properties under development or redevelopment. As of September 30, 2026 and 2025, our consolidated same store pool occupancy was approximately 97.9% and 98.0%, respectively.

Previous wording

1 Accounting Standards Update (“ASU”) No. 2018-11, Leases (Topic 842), allows us to elect not to separate lease and non-lease rental income. All rental income earned pursuant to tenant leases is reflected as one line, “Rental revenues and tenant expense reimbursements” on our accompanying consolidated statements of operations. We believe that the above presentation of rental revenues and tenant expense reimbursements is not, and is not intended to be, a presentation in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and a reconciliation to total revenue is provided above. We believe this information is frequently used by management, investors, and other interested parties to evaluate our performance. See “Note 2 - Significant Accounting Policies” in our condensed notes to consolidated financial statements for more information regarding our adoption of this standard.

Current wording

1 Accounting Standards Update (“ASU”) No. 2018-11, Leases (Topic 842), Targeted Improvements, allows us to elect not to separate lease and non-lease rental income. All rental income earned pursuant to tenant leases is reflected as one line, “Rental revenues and tenant expense reimbursements” on our accompanying consolidated statements of operations. We believe that the above presentation of rental revenues and tenant expense reimbursements is not, and is not intended to be, a presentation in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and a reconciliation to total revenue is provided above. We believe this information is frequently used by management, investors, and other interested parties to evaluate our performance. See “Note 2 - Significant Accounting Policies” in our condensed notes to consolidated financial statements for more information regarding our adoption of this standard.

Previous wording

Revenues. Total revenues increased approximately $12.5 million for the three months ended June 30, 2026 compared to the same period from the prior year due primarily to increased revenue on new and renewed leases during 2026 and 2025 and property acquisitions during 2025. The increase in total revenues was partially offset by property dispositions during 2026. Cash rents on new and renewed leases totaling approximately 0.8 million square feet and 7.5 acres of improved land commencing during the three months ended June 30, 2026 increased approximately 27.7% compared to the previous rental rates. For the three months ended June 30, 2026 and 2025, approximately $5.7 million and $3.0 million, respectively, was recorded in straight-line rental revenues related to contractual rent abatements given to certain tenants and approximately $0.5 million and $0.5 million, respectively, was recorded in lease termination revenue.

Current wording

Revenues. Total revenues increased approximately $16.0 million for the three months ended September 30, 2026 compared to the same period from the prior year due primarily to increased revenue on new and renewed leases during 2026 and 2025, property acquisitions during 2026 and 2025 and increased occupancy. The increase in total revenues was partially offset by property dispositions during 2026. Cash rents on new and renewed leases totaling approximately 1.1 million square feet and 3.6 acres of improved land commencing during the three months ended September 30, 2026 increased approximately 27.7% compared to the previous rental rates. For the three months ended September 30, 2026 and 2025, approximately $5.3 million and $3.5 million, respectively, was recorded in straight-line rental revenues related to contractual rent abatements given to certain tenants and approximately $2.1 million and $0.1 million, respectively, was recorded in lease termination revenue. The increase in lease termination revenue was primarily due to a lease termination which occurred during the three months ended September 30, 2026 of approximately $2.0 million. Total revenues for the three months ended September 30, 2026 and 2025 were partially offset by approximately $1.5 million and $0.8 million, respectively, of bad debt expense and straight-line rent write-offs for terminated leases.

Previous wording

Property operating expenses. Total property operating expenses increased approximately $1.7 million during the three months ended June 30, 2026 compared to the same period from the prior year. The increase in total property operating expenses was primarily due to an increase of approximately $1.4 million attributable to property acquisitions during 2025 as well as increases in real estate taxes. The increase in total property operating expenses was partially offset by property dispositions during 2026 as well as decreases in insurance premiums.

Current wording

Property operating expenses. Total property operating expenses increased approximately $4.5 million during the three months ended September 30, 2026 compared to the same period from the prior year. The increase in total property operating expenses was primarily due to an increase of approximately $2.0 million attributable to property acquisitions during 2026 and 2025 as well as increases in real estate taxes. The increase in total property operating expenses was partially offset by property dispositions during 2026 as well as decreases in insurance premiums.

Previous wording

Depreciation and amortization. Depreciation and amortization increased approximately $1.1 million during the three months ended June 30, 2026 compared to the same period from the prior year primarily due to property acquisitions during 2026 and 2025, partially offset by property dispositions during 2026 and 2025.

Current wording

Depreciation and amortization. Depreciation and amortization increased approximately $2.2 million during the three months ended September 30, 2026 compared to the same period from the prior year primarily due to property acquisitions during 2026 and 2025, partially offset by property dispositions during 2026 and 2025.

Previous wording

General and administrative expenses. General and administrative expenses increased approximately $1.5 million during the three months ended June 30, 2026 compared to the same period from the prior year primarily due to increased compensation expenses, including increased restricted stock amortization, and an increase in salaries compared to the same period from the prior year.

Current wording

General and administrative expenses. General and administrative expenses increased approximately $0.5 million during the three months ended September 30, 2026 compared to the same period from the prior year primarily due to increased compensation expenses, including increased LTIP expense, and an increase in salaries compared to the same period from the prior year.

Previous wording

Interest and other income. Interest and other income decreased approximately $0.2 million for the three months ended June 30, 2026 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 $0.3 million for the three months ended September 30, 2026 compared to the same period from the prior year primarily due to lower interest rates on our cash and cash equivalent balances.

Previous wording

Interest expense, including amortization. Interest expense increased approximately $2.4 million for the six months ended June 30, 2026 compared to the same period from the prior year. This was primarily due to higher outstanding debt during the six months ended June 30, 2026.

Current wording

Interest expense, including amortization. Interest expense increased approximately $0.1 million for the three months ended September 30, 2026 compared to the same period from the prior year. This was primarily due to increased amortization of deferred financing costs in connection with the new term loan issued in 2026 during the three months ended September 30, 2026 compared to the same period from the prior year.

Previous wording

Gain on sales of real estate investments. Gain on sales of real estate investments decreased approximately $42.6 million for the three months ended June 30, 2026 compared to the same period from the prior year. We recognized an aggregate gain of approximately $12.0 million from the sale of one property during the three months ended June 30, 2026 compared to an aggregate gain of approximately $54.6 million from the sale of two properties during the three months ended June 30, 2025.

Current wording

Gain on sales of real estate investments. Gain on sales of real estate investments decreased approximately $42.7 million for the three months ended September 30, 2026 compared to the same period from the prior year. We recognized an aggregate gain of approximately $19.3 million from the sale of two properties during the three months ended September 30, 2026 compared to an aggregate gain of approximately $62.4 million from the sale of three properties during the three months ended September 30, 2025.

Previous wording

Revenues. Total revenues increased approximately $26.5 million for the six months ended June 30, 2026 compared to the same period from the prior year primarily due to property acquisitions during 2026 and 2025, increased revenue on new and renewed leases and lease termination fees. The increase in total revenues was partially offset by property dispositions during 2026. Cash rents on new and renewed leases totaling approximately 1.5 million square feet and 14.7 acres commencing during the six months ended June 30, 2026 increased approximately 25.3% compared to the previous rental rates. For the six months ended June 30, 2026 and 2025, approximately $11.5 million and $6.5 million, respectively, was recorded in straight-line rental revenues related to contractual rent abatements given to certain tenants and approximately $1.0 million and $0.7 million, respectively, was recorded in lease termination revenue. Total revenues for the six months ended June 30, 2026 and 2025 were partially offset by approximately $0.6 million and $3.3 million, respectively, of bad debt expense and straight-line rent write-offs for terminated leases.

Current wording

Revenues. Total revenues increased approximately $42.5 million for the nine months ended September 30, 2026 compared to the same period from the prior year primarily due to property acquisitions during 2026 and 2025, increased revenue on new and renewed leases, lease termination fees and increased occupancy. The increase in total revenues was partially offset by property dispositions during 2026. Cash rents on new and renewed leases totaling approximately 2.6 million square feet and 18.3 acres commencing during the nine months ended September 30, 2026 increased approximately 26.1% compared to the previous rental rates. For the nine months ended September 30, 2026 and 2025, approximately $16.8 million and $10.0 million, respectively, was recorded in straight-line rental revenues related to contractual rent abatements given to certain tenants and approximately $3.1 million and $0.7 million, respectively, was recorded in lease termination revenue. The increase in lease termination revenue was primarily due to a lease termination which occurred during the three months ended September 30, 2026 of approximately $2.0 million. Total revenues for the nine months ended September 30, 2025 were partially offset by approximately $4.0 million of bad debt expense and straight-line rent write-offs for terminated leases.

Previous wording

Property operating expenses. Total property operating expenses increased approximately $4.7 million during the six months ended June 30, 2026 compared to the same period from the prior year. The increase in total property operating expenses was primarily due to property acquisitions during 2026 and 2025 as well as increases in real estate taxes. The increase in total property operating expenses was partially offset by property dispositions during 2026.

Current wording

Property operating expenses. Total property operating expenses increased approximately $9.2 million during the nine months ended September 30, 2026 compared to the same period from the prior year. The increase in total property operating expenses was primarily due to property acquisitions during 2026 and 2025 as well as increases in real estate taxes. The increase in total property operating expenses was partially offset by property dispositions during 2026 as well as decreases in insurance premiums.

Previous wording

Depreciation and amortization. Depreciation and amortization increased approximately $3.7 million during the six months ended June 30, 2026 compared to the same period from the prior year primarily due to property acquisitions during 2026 and 2025, partially offset by property dispositions during 2026.

Current wording

Depreciation and amortization. Depreciation and amortization increased approximately $5.9 million during the nine months ended September 30, 2026 compared to the same period from the prior year primarily due to property acquisitions during 2026 and 2025, partially offset by property dispositions during 2026.