Global Net Lease, Inc.

Previous wording

These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the risks that any potential future acquisition or disposition (including the proposed closing of the encumbered properties portion of the Multi-Tenant Retail Portfolio) (as defined below)) by the Company is subject to market conditions, capital availability and timing considerations and may not be identified or completed on favorable terms, or at all. Some of the additional risks and uncertainties, although not all risks and uncertainties, that could cause the Company’s actual results to differ materially from those presented in its forward-looking statements are set forth in the “Risk Factors” and “Quantitative and Qualitative Disclosures about Market Risk” in our Annual Report on Form 10-K for the year ended December 31, 2024, this and our other Quarterly Reports on Form 10-Q, and our other filings with the U.S. Securities and Exchange Commission (the “SEC”), as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent reports.

Current wording

These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the risks that any potential future acquisition or disposition by the Company is subject to market conditions, capital availability and timing considerations and may not be identified or completed on favorable terms, or at all. Some of the additional risks and uncertainties, although not all risks and uncertainties, that could cause the Company’s actual results to differ materially from those presented in its forward-looking statements are set forth in the “Risk Factors” and “Quantitative and Qualitative Disclosures about Market Risk” in our Annual Report on Form 10-K for the year ended December 31, 2024, this and our other Quarterly Reports on Form 10-Q, and our other filings with the U.S. Securities and Exchange Commission (the “SEC”), as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent reports.

Previous wording

On March 25, 2025, we completed the sale of 59 of our multi-tenant retail properties (the “First Closing”) to RCG Venture Holdings, LLC (“RCG”) pursuant to a purchase and sale agreement (“Multi-Tenant Retail PSA”) to sell 100 multi-tenant retail properties (the “Multi-Tenant Retail Portfolio”) to RCG (the “Multi-Tenant Retail Disposition”) for approximately $1.780 billion. The remainder of the Multi-Tenant Retail Disposition is expected to close in two additional phases during the second quarter of 2025 (for additional information, see Note 3 —Multi-Tenant Retail Dispositionto our consolidated financial statements in this Quarterly Report on Form 10-Q).

Current wording

•On March 25, 2025, we completed the sale of 59 unencumbered properties (the “First Closing”).

Previous wording

As of March 31, 2025, we owned 1,045 properties consisting of 51.3 million rentable square feet, which were 95% leased, with a weighted-average remaining lease term of 6.3 years. Based on the percentage of annualized rental income on a straight-line basis as of March 31, 2025, approximately 76% of our properties were located in the U.S. and Canada and approximately 24% were located in Europe. In addition, as of March 31, 2025, our portfolio was comprised of 40% Industrial & Distribution properties, 25% Retail (formerly known as “Single-Tenant Retail”) properties, 22% Office properties and 13% related to the remaining 41 properties in the Multi-Tenant Retail Portfolio that are expected to be sold in the second quarter of 2025 and are currently reported as part of discontinued operations (for additional information, see Note 3 —Multi-Tenant Retail Dispositionto our consolidated financial statements in this Quarterly Report on Form 10-Q). The percentages are calculated using annualized straight-line rent converted from local currency into the U.S. Dollar (“USD”) as of March 31, 2025. The straight-line rent includes amounts for tenant concessions.

Current wording

As of June 30, 2025, we owned 911 properties consisting of 44.0 million rentable square feet, which were 98% leased, with a weighted-average remaining lease term of 6.2 years. Based on the percentage of annualized rental income on a straight-line basis as of June 30, 2025, approximately 70% of our properties were located in the U.S. and Canada and approximately 30% were located in Europe. In addition, as of June 30, 2025, our portfolio was comprised of 47% Industrial & Distribution properties, 26% Retail properties and 27% Office properties. The percentages are calculated using annualized straight-line rent converted from local currency into the U.S. Dollar (“USD”) as of June 30, 2025. The straight-line rent includes amounts for tenant concessions.

Previous wording

Our portfolio is leased to primarily “Investment Grade” rated tenants in well established markets in the U.S. and Europe. A total of 60.1% of our rental income on an annualized straight-line basis for leases in place as of March 31, 2025 was derived from Investment Grade rated tenants, comprised of 33.3% leased to tenants with an actual investment grade rating and 26.8% leased to tenants with an implied investment grade rating. For our purposes, “Investment Grade” includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of the tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant’s obligation under the lease) or tenants that are identified as investment grade by using a proprietary Moody’s analytical tool, which generates an implied rating by measuring an entity’s probability of default. Ratings information is as of March 31, 2025.

Current wording

Our portfolio is leased to primarily “Investment Grade” rated tenants in well established markets in the U.S. and Europe. A total of 60% of our rental income on an annualized straight-line basis for leases in place as of June 30, 2025 was derived from Investment Grade rated tenants, comprised of 30% leased to tenants with an actual investment grade rating and 30% leased to tenants with an implied investment grade rating. For our purposes, “Investment Grade” includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of the tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant’s obligation under the lease) or tenants that are identified as investment grade by using a proprietary Moody’s analytical tool, which generates an implied rating by measuring an entity’s probability of default. Ratings information is as of June 30, 2025.

Previous wording

As a result of the agreement to sell 100 of the 101 properties in our former Multi-Tenant Retail segment in connection with the Multi-Tenant Retail Disposition, we determined that, as of March 31, 2025, we have three remaining reportable segments based on property type: (1) Industrial & Distribution, (2) Retail and (3) Office (for additional information, see Note 15 — Segment Reporting to our consolidated financial statements included in this Quarterly Report on Form 10-Q).

Current wording

As a result of the agreement to sell 100 of the 101 properties in our former Multi-Tenant Retail segment in connection with the Multi-Tenant Retail Disposition, we determined, during the first quarter of 2025, that we had three remaining reportable segments based on property type: (1) Industrial & Distribution, (2) Retail and (3) Office (for additional information, see Note 15 — Segment Reporting to our consolidated financial statements included in this Quarterly Report on Form 10-Q).

Previous wording

Due to the classification of the Multi-Tenant Retail Portfolio as a discontinued operation, the tables below do not include the results of the Multi-Tenant Retail Portfolio, which are classified within loss from discontinued operations in our consolidated statements of operations for the three months ended March 31, 2025 and 2024 (for additional information, see Note 3 —Multi-Tenant Retail Disposition to our consolidated financial statements included in this Quarterly Report on Form 10-Q).

Current wording

Due to the classification of the Multi-Tenant Retail Portfolio as a discontinued operation, the tables below do not include the results of the Multi-Tenant Retail Portfolio, which are classified within loss from discontinued operations in our consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 (for additional information, see Note 3 —Multi-Tenant Retail Disposition to our consolidated financial statements included in this Quarterly Report on Form 10-Q).

Previous wording

Net loss attributable to common stockholders was $200.3 million for the three months ended March 31, 2025, as compared to $34.7 million for the three months ended March 31, 2024. The change in net loss attributable to common stockholders is discussed in detail for each line item of the consolidated statements of operations in the sections that follow.

Current wording

Net loss attributable to common stockholders was $35.1 million for the three months ended June 30, 2025, as compared to $46.6 million for the three months ended June 30, 2024. The change in net loss attributable to common stockholders is discussed in detail for each line item of the consolidated statements of operations in the sections that follow.

Previous wording

Revenue from tenants in our Industrial & Distribution segment was $58.0 million and $62.0 million for the three months ended March 31, 2025 and 2024, respectively. The decrease in revenue from tenants was due to the loss of revenue of approximately $3.9 million from dispositions, primarily resulting from the sale of a group of properties that were leased by one of our former tenants. There was minimal impact from the year-over-year change in average exchange rates during the three months ended March 31, 2025, when compared to the same period last year.

Current wording

Revenue from tenants in our Industrial & Distribution segment was $55.0 million and $61.4 million for the three months ended June 30, 2025 and 2024, respectively. The decrease in revenue from tenants was due to the loss of revenue of approximately $5.8 million from dispositions and lower revenue of approximately $0.6 million from other properties. The loss of revenue from dispositions primarily resulted from the sale of two groups of properties that were leased by two of our former tenants, which comprised $5.4 million of the decrease. There was minimal impact from the year-over-year change in average exchange rates during the three months ended June 30, 2025, when compared to the same period last year.

Previous wording

Revenue from tenants in our Retail segment was $37.0 million and $42.6 million for the three months ended March 31, 2025 and 2024, respectively. The decrease was primarily driven by the loss of revenue of approximately $4.8 million from dispositions, primarily related to four tenants which comprised approximately $4.3 million of the decrease in revenue from dispositions. There was minimal impact from the year-over-year change in average exchange rates during the three months ended March 31, 2025, when compared to the same period last year.

Current wording

Revenue from tenants in our Retail segment was $35.4 million and $40.7 million for the three months ended June 30, 2025 and 2024, respectively. The decrease was primarily driven by the loss of revenue of approximately $5.8 million from dispositions, partially offset by higher revenue from other properties of $0.5 million. The loss of revenue from dispositions was primarily related to four tenants which comprised approximately $5.0 million of the decrease. There was minimal impact from the year-over-year change in average exchange rates during the three months ended June 30, 2025, when compared to the same period last year.

Previous wording

Property operating expenses in our Retail segment were $3.9 million and $5.1 million for the three months ended March 31, 2025 and 2024, respectively. The decrease in the first quarter of 2025 was primarily driven by lower costs of $1.1 million from properties sold in 2024, with minimal impact from the year-over-year change in average exchange rates during the three months ended March 31, 2025, when compared to the same period last year.

Current wording

Property operating expenses in our Retail segment were $3.0 million and $4.0 million for the three months ended June 30, 2025 and 2024, respectively. The decrease in the second quarter of 2025 was primarily driven by lower costs of $1.2 million from properties sold, partially offset by an increase of $0.1 million from other properties. There was minimal impact from the year-over-year change in average exchange rates during the three months ended June 30, 2025, when compared to the same period last year.

Previous wording

Property operating expenses in our Office segment were $4.8 million and $5.3 million for the three months ended March 31, 2025 and 2024, respectively. The decrease in the first quarter of 2025 was driven by lower costs of $0.5 million from properties sold in 2024, with minimal impact from the year-over-year change in average exchange rates during the three months ended March 31, 2025, when compared to the same period last year.

Current wording

Property operating expenses in our Office segment were $4.8 million and $4.1 million for the three months ended June 30, 2025 and 2024, respectively. The increase in the second quarter of 2025 was driven by an increase of $1.3 million from properties owned in both periods, partially offset by lower costs of $0.6 million from properties sold. There was minimal impact from the year-over-year change in average exchange rates during the three months ended June 30, 2025, when compared to the same period last year.

Previous wording

During the three months ended March 31, 2025, we determined that 69 of our properties (68 located in the US and one located in the U.K.) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price less selling costs of such properties, and as a result, we recorded an impairment charge of approximately $60.3 million.

Current wording

During the three months ended June 30, 2025, we determined that 21 of our properties (20 of which were located in the U.S. and one was located in Europe) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price less selling costs of such properties, and as a result, we recorded an impairment charge of approximately $9.8 million.

Previous wording

During the three months ended March 31, 2024, we determined that the fair values of six of our properties located in the U.S. (all of which were acquired in the acquisition of the Necessity Retail REIT, Inc. (“RTL”) (the “REIT Merger”)) had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price less selling costs of such properties, and as a result, we recorded an impairment charge of approximately $4.3 million.

Current wording

During the three months ended June 30, 2024, we determined that the fair values of six of our properties located in the U.S. (three of which were acquired in the acquisition of the Necessity Retail REIT, Inc. (“RTL”) (the “REIT Merger”), had an estimated fair value that was lower than the carrying value of the properties, based on the estimated selling price of such properties, and as a result, we recorded an impairment charge of approximately $27.4 million. The majority of the impairment charge in the second quarter of 2024 was due to legacy GNL properties.

Previous wording

We recognized $1.6 million and $0.8 million of merger, transaction and other costs during the three months ended March 31, 2025 and 2024, respectively. Merger costs are only reflected in the three months ended March 31, 2024.

Current wording

We recognized $2.0 million and $1.6 million of merger, transaction and other costs during the three months ended June 30, 2025 and 2024, respectively. Merger costs are only reflected in the three months ended June 30, 2024.

Previous wording

General and administrative expenses were $16.2 million and $14.7 million for the three months ended March 31, 2025 and 2024, respectively, primarily consisting of employee compensation/payroll expenses, professional fees including audit and taxation services, board member compensation and directors’ and officers’ liability insurance. The overall increase in general and administrative expenses was primarily due to higher professional and legal costs.

Current wording

General and administrative expenses were $11.3 million and $13.7 million for the three months ended June 30, 2025 and 2024, respectively, primarily consisting of employee compensation/payroll expenses, professional fees including audit and taxation services, board member compensation and directors’ and officers’ liability insurance. The overall decrease in general and administrative expenses was primarily due to higher transition costs in the 2024 period related to the REIT Merger and the internalization of our management functions in September 2023 (the “Internalization”).

Previous wording

During the three months ended March 31, 2025 and 2024, we recognized equity-based compensation expense of $3.1 million and $2.0 million, respectively. Equity-based compensation in the quarter ended March 31, 2025 consisted of (i) amortization of restricted shares of Common Stock (“Restricted Shares”) granted to employees of AR Global Investments, LLC, our former advisor (the “Former Advisor”) or its affiliates who were involved in providing services to us prior to the internalization of our management functions in September 2023 (the “Internalization”); (ii) amortization of restricted stock units in respect of shares of Common Stock (“RSUs”) granted to our employees and our independent directors and; (iii) amortization expense related to performance stock units (“PSUs”) issued in October of 2023 and January 2025. The period over period increase in expense was attributable to RSUs and PSUs granted in late 2024 and early 2025.

Current wording

During the three months ended June 30, 2025 and 2024, we recognized equity-based compensation expense of $3.3 million and $2.3 million, respectively. Equity-based compensation in the quarter ended June 30, 2025 consisted of (i) amortization of restricted shares of Common Stock (“Restricted Shares”) granted to employees of AR Global Investments, LLC, our former advisor (the “Former Advisor”) or its affiliates who were involved in providing services to us prior to the Internalization; (ii) amortization of restricted stock units in respect of shares of Common Stock (“RSUs”) granted to our employees and our independent directors; and (iii) amortization expense related to performance stock units (“PSUs”). The period over period increase in expense was attributable to RSUs and PSUs granted in late 2024 and early 2025.

Previous wording

(Loss) Gain on Dispositions of Real Estate Investments

Current wording

Gain on Dispositions of Real Estate Investments

Previous wording

During the three months ended March 31, 2025, we sold 16 properties (one Industrial and Distribution property, 13 Retail properties and two Office properties), not including the properties sold in the First Closing, which are part of discontinued operations (see Note 3 —Multi-Tenant Retail Dispositionfor additional information to our consolidated financial statements included in this Quarterly Report on Form 10-Q), and as a result, recorded a net loss of $1.7 million.

Current wording

During the three months ended June 30, 2025, we sold 94 properties (five Industrial and Distribution properties, 88 Retail properties and one Office property), not including the properties sold as part of the Multi-Tenant Retail Disposition, which are part of discontinued operations (see Note 3 —Multi-Tenant Retail Dispositionto our consolidated financial statements included in this Quarterly Report on Form 10-Q), and as a result, recorded a net gain of $1.5 million.

Previous wording

During the three months ended March 31, 2024, we sold 19 properties in the U.S., 17 of which were acquired in the REIT Merger, and recorded a net gain of $5.9 million.

Current wording

During the three months ended June 30, 2024, we sold 36 properties, 34 of which were acquired in the REIT Merger, and recorded a net gain of $34.1 million.

Previous wording

Interest expense was $53.4 million and $64.6 million for the three months ended March 31, 2025 and 2024, respectively. The decrease was due to lower gross debt outstanding and a lower weighted-average effective interest rate during the three months ended March 31, 2025. The amount of our total gross debt outstanding was $3.4 billion as of March 31, 2025, as compared to $4.9 billion as of March 31, 2024 (not including debt that will be assumed by the buyer in the Multi-Tenant Retail Disposition), primarily as a result of the strategic disposition initiative we initiated in 2024. The weighted-average effective interest rate of our total debt was 4.8% as of March 31, 2024 and 4.2% (not including debt that will be assumed by the buyer in the Multi-Tenant Retail Disposition) as of March 31, 2025.

Current wording

Interest expense was $53.3 million and $72.0 million for the three months ended June 30, 2025 and 2024, respectively. The decrease was due to lower gross debt outstanding and a lower weighted-average effective interest rate during the three months ended June 30, 2025. The amount of our total gross debt outstanding was $3.1 billion as of June 30, 2025, as compared to $5.1 billion as of June 30, 2024, primarily as a result of the strategic disposition initiative we initiated in 2024. The weighted-average effective interest rate of our total debt was 4.3% as of June 30, 2025 and 4.7% as of June 30, 2024.

Previous wording

The decrease in interest expense was also impacted by the year-over-year change in average foreign exchange rates during the three months ended March 31, 2025, when compared to the same period last year. As of March 31, 2025, approximately 16% of our total debt outstanding was denominated in EUR and 1% was denominated in Canadian Dollars (“CAD”) (not including debt that will be assumed by the buyer in the Multi-Tenant Retail Disposition). As of March 31, 2024, approximately 10% of our total debt outstanding was denominated in EUR, 8% of our total debt outstanding was denominated in GBP and 1% was denominated in CAD.

Current wording

The decrease in interest expense was also impacted by the year-over-year change in average foreign exchange rates during the three months ended June 30, 2025, when compared to the same period last year. As of June 30, 2025, approximately 19% of our total debt outstanding was denominated in EUR and 1% was denominated in Canadian Dollars (“CAD”) (not including debt that will be assumed by the buyer in the Multi-Tenant Retail Disposition). As of June 30, 2024, approximately 10% of our total debt outstanding was denominated in EUR, 9% of our total debt outstanding was denominated in GBP and 1% was denominated in CAD.

Previous wording

We view a combination of secured and unsecured financing as an efficient and accretive means to acquire properties and manage working capital. As of March 31, 2025, approximately 54% of our total debt outstanding was secured and 46% was unsecured, the latter including amounts outstanding under our Revolving Credit Facility (as defined in Note 6 — Revolving Credit Facility to our consolidated financial statements included in this Quarterly Report on Form 10-Q), our $500.0 million aggregate principal amount of 3.75% Senior Notes due 2027 (the “3.75% Senior Notes”) and $500.0 million aggregate principal amount of 4.50% Senior Notes due 2028 (the “4.50% Senior Notes”).

Current wording

We view a combination of secured and unsecured financing as an efficient and accretive means to acquire properties and manage working capital. As of June 30, 2025, approximately 44% of our total debt outstanding was secured and 56% was unsecured, the latter including amounts outstanding under our Revolving Credit Facility (as defined in Note 6 — Revolving Credit Facility to our consolidated financial statements included in this Quarterly Report on Form 10-Q), our $500.0 million aggregate principal amount of 3.75% Senior Notes due 2027 (the “3.75% Senior Notes”) and $500.0 million aggregate principal amount of 4.50% Senior Notes due 2028 (the “4.50% Senior Notes”).

Previous wording

The loss on extinguishment of debt was $0.4 million and $0.1 million during the quarters ended March 31, 2025 and March 31, 2024, respectively.

Current wording

The loss on extinguishment of debt was $4.3 million and $13.1 million during the quarters ended June 30, 2025 and June 30, 2024, respectively. The loss in the second quarter of 2025 primarily related to the accelerated amortization and fees related to the repayment of one of our mortgages in May of 2025. The amount in the second quarter of 2024 was primarily related to the fee required to be paid upon repayment of the mortgage loan that encumbered our McLaren properties in the U.K. This mortgage loan was assumed as part of our acquisition of the McLaren properties in 2021 and included the fee noted above in the terms of the mortgage.

Previous wording

The loss of $3.9 million on derivative instruments for the three months ended March 31, 2025 and the gain of $1.6 million on derivative instruments for the three months ended March 31, 2024, reflect the marked-to-market impact from foreign currency and interest rate derivative instruments used to hedge the investment portfolio from currency and interest rate movements, and was mainly driven by exchange rate changes in the GBP and EUR compared to the USD. For the three months ended March 31, 2025, the loss on derivative instruments consisted of unrealized losses of $3.3 million and realized gains of $0.6 million. For the three months ended March 31, 2024, the gain on derivative instruments consisted of unrealized gains of $1.3 million and realized gains of $0.3 million. The overall gains (or losses) on derivative instruments directly impact our results of operations since they are recorded on the gain on derivative instruments line item in our consolidated results of operations. However, only the realized gains or losses are included in AFFO (as defined below).

Current wording

The loss of $8.8 million on derivative instruments for the three months ended June 30, 2025 and the gain of $0.5 million on derivative instruments for the three months ended June 30, 2024, reflect the marked-to-market impact from foreign currency and interest rate derivative instruments used to hedge the investment portfolio from currency and interest rate movements, and was mainly driven by exchange rate changes in the GBP and EUR compared to the USD. For the three months ended June 30, 2025, the loss on derivative instruments consisted of unrealized losses of $7.2 million and realized gains of $1.6 million. For the three months ended June 30, 2024, the gain on derivative instruments consisted of unrealized gains of $0.2 million and realized gains of $0.3 million. The overall gains (or losses) on derivative instruments directly impact our results of operations since they are recorded on the gain on derivative instruments line item in our consolidated results of operations. However, only the realized gains or losses are included in AFFO (as defined below).

Previous wording

As a result of our foreign investments in Europe, and, to a lesser extent, our investments in Canada, we are subject to risk from the effects of exch ange rate movements in the EUR, GBP and, to a lesser extent, CAD against the USD, which may affect costs and cash flows in our functional currency, the USD. We generally manage foreign currency exchange rate movements by matching our debt service obligation to the lender and the tenant’s rental obligation to us in the same currency. This reduces our overall exposure to currency fluctuations. In addition, we may use currency hedging to further reduce the exposure to our net cash flow. We are generally a net receiver of these currencies (we receive more cash than we pay out), and therefore our results of operations of our foreign properties benefit from a weaker USD, and are adversely affected by a stronger USD, relative to the foreign currency. Conversely, realized gains from derivatives would generally be lower from a weaker USD, and higher from a stronger USD. We maintain our hedging approach by consistently entering into new foreign exchange forwards for three year periods. Interest rate increases could increase the interest expense on our floating rate debt or any new debt and we are constantly evaluating the use of hedging strategies to mitigate this risk.

Current wording

As a result of our foreign investments in Europe, and, to a lesser extent, our investments in Canada, we are subject to risk from the effects of exch ange rate movements in the EUR, GBP and CAD against the USD, which may affect costs and cash flows in our functional currency, the USD. We generally manage foreign currency exchange rate movements by matching our debt service obligation to the lender and the tenant’s rental obligation to us in the same currency. This reduces our overall exposure to currency fluctuations. In addition, we may use currency hedging to further reduce the exposure to our net cash flow. We are generally a net receiver of these currencies (we receive more cash than we pay out), and therefore our results of operations of our foreign properties benefit from a weaker USD, and are adversely affected by a stronger USD, relative to the foreign currency. Conversely, realized gains from derivatives would generally be lower from a weaker USD, and higher from a stronger USD. We maintain our hedging approach by consistently entering into new foreign exchange forwards for three year periods. Interest rate increases could increase the interest expense on our floating rate debt or any new debt and we are constantly evaluating the use of hedging strategies to mitigate this risk.

Previous wording

We recorded losses of $6.4 million and gains of $1.0 million on undesignated foreign currency advances and other hedge ineffectiveness during the quarters ended March 31, 2025 and March 31, 2024, respectively, related to the accelerated reclassification of amounts in accumulated other comprehensive loss to earnings.

Current wording

We recorded losses of $6.3 million and gains of $0.3 million on undesignated foreign currency advances and other hedge ineffectiveness during the quarters ended June 30, 2025 and 2024, respectively, related to the accelerated reclassification of amounts in accumulated other comprehensive loss to earnings.

Previous wording

Revenue from tenants in our Office segment was $37.4 million and $35.1 million for the three months ended March 31, 2025 and 2024, respectively. The increase in the first quarter of 2025 was primarily driven by higher revenue from properties owned in both periods of $5.3 million, partially offset by the loss of revenue of $3.0 million from dispositions. The loss of revenue from dispositions was primarily related to one property, which comprised approximately $2.6 million of the total decrease in revenue from dispositions. The year-over-year change in foreign exchange rates had a minimal impact.

Current wording

Revenue from tenants in our Office segment was $72.0 million and $69.8 million for the six months ended June 30, 2025 and 2024, respectively. The increase in the first six months of 2025 was primarily driven by higher revenue from properties owned in both periods of $4.0 million, partially offset by the loss of revenue of $1.8 million from dispositions. The loss of revenue from dispositions was primarily related to three properties, which comprised approximately $1.5 million of the decrease. The year-over-year change in foreign exchange rates had a minimal impact.

Previous wording

Property operating expenses in our Industrial & Distribution segment were $5.3 million and $4.6 million for the three months ended March 31, 2025 and 2024, respectively. The increase was due to higher costs of $1.1 million from properties owned in each period due to the timing of our reimbursable costs, partially offset by lower costs of $0.5 million from 2024 dispositions. There was minimal impact from the year-over-year change in average foreign exchange rates during the three months ended March 31, 2025, when compared to the same period last year.

Current wording

Property operating expenses in our Industrial & Distribution segment were $9.5 million and $9.6 million for the six months ended June 30, 2025 and 2024, respectively. The decrease was due to lower costs of $0.4 million from dispositions, partially offset by higher costs of $0.3 million from other properties due to the timing of our reimbursable costs. There was minimal impact from the year-over-year change in average foreign exchange rates during the six months ended June 30, 2025, when compared to the same period last year.

Previous wording

Depreciation and amortization expense was relatively flat at $56.3 million and $57.2 million for the three months ended March 31, 2025 and 2024, respectively. Higher amortization expense of approximately $11.0 million from the accelerated amortization of in-place lease intangibles during the three months ended March 31, 2025 was primarily offset by lower depreciation and amortization due to dispositions during 2025 and 2024.

Current wording

Depreciation and amortization expense was $102.0 million and $113.8 million for the six months ended June 30, 2025 and 2024, respectively. Lower depreciation and amortization due to dispositions during 2025 and 2024 was partially offset by higher amortization expense of approximately $11.0 million from the accelerated amortization of in-place lease intangibles during the six months ended June 30, 2025.

Previous wording

Although as a REIT we generally do not pay U.S. federal income taxes on the amount of REIT taxable income that is distributed to shareholders, we recognize income tax benefit (expense) domestically for state taxes and local income taxes incurred, if any, and also in foreign jurisdictions in which we own properties. In addition, we perform an analysis of potential deferred tax or future tax benefit and expense as a result of book and tax differences and timing differences in taxes across jurisdictions. Income tax expense was $3.3 million and $2.4 million for the three months ended March 31, 2025 and 2024, respectively.

Current wording

Although as a REIT we generally do not pay U.S. federal income taxes on the amount of REIT taxable income that is distributed to shareholders, we recognize income tax (expense) benefit domestically for state taxes and local income taxes incurred, if any, and also in foreign jurisdictions in which we own properties. In addition, we perform an analysis of potential deferred tax or future tax benefit and expense as a result of book and tax differences and timing differences in taxes across jurisdictions. Income tax expense was $6.3 million and $2.1 million for the six months ended June 30, 2025 and 2024, respectively.

Previous wording

During the three months ended March 31, 2025, net cash provided by operating activities was $59.2 million. Cash flows provided by operating activities during the three months ended March 31, 2025 reflect net loss of $189.4 million, adjusted for non-cash items of $178.5 million (primarily depreciation, amortization of intangibles, amortization of deferred financing costs, amortization of mortgage discounts, amortization of above- and below-market lease assets and liabilities, amortization of right of use assets, amortization of lease incentives and commissions, unbilled straight-line rent, equity-based compensation, unrealized gains on foreign currency transactions, derivativesand other non-cash items). In addition, operating cash flow was impacted by lease incentive and commission payments of $1.9 million and a net decrease of $14.9 million in working capital items due to a decrease in prepaid expenses and other assets of $6.2 million, a decrease in accounts payable and accrued expenses of $16.5 million and a decrease in prepaid rent of $4.6 million.

Current wording

During the six months ended June 30, 2025, net cash provided by operating activities was $111.2 million. Cash flows provided by operating activities during the six months ended June 30, 2025 reflect net loss of $213.5 million, adjusted for non-cash items of $286.2 million (primarily depreciation, amortization of intangibles, amortization of deferred financing costs, amortization of mortgage discounts, amortization of above- and below-market lease assets and liabilities, amortization of right of use assets, amortization of lease incentives and commissions, unbilled straight-line rent, equity-based compensation, unrealized gains on foreign currency transactions, derivativesand other non-cash items). In addition, operating cash flow was impacted by lease incentive and commission payments of $5.3 million and a net decrease of $22.0 million in working capital items due to an increase in prepaid expenses and other assets of $2.0 million, a decrease in accounts payable and accrued expenses of $28.0 million and an increase in prepaid rent of $8.0 million.

Previous wording

During the three months ended March 31, 2024, net cash provided by operating activities was $92.2 million. Cash flows provided by operating activities during the three months ended March 31, 2024 reflect net loss of $23.8 million, adjusted for non-cash items of $111.7 million (primarily depreciation, amortization of intangibles, amortization of deferred financing costs, amortization of mortgage discounts, amortization of above- and below-market lease assets and liabilities, amortization of right of use assets, amortization of lease incentives and commissions, bad debt expense, unbilled straight-line rent (including the effect of adjustments due to rent deferrals), equity-based compensation, unrealized gains on foreign currency transactions, derivatives and other non-cash items). In addition, operating cash flow was impacted by lease incentive and commission payments of $0.4 million and an increase of $10.5 million in working capital items due to a decrease in prepaid expenses and other assets of $9.3 million, a decrease in accounts payable and accrued expenses of $0.2 million and an increase in prepaid rent of $1.3 million.

Current wording

During the six months ended June 30, 2024, net cash provided by operating activities was $162.5 million. Cash flows provided by operating activities during the six months ended June 30, 2024 reflect net loss of $59.4 million, adjusted for non-cash items of $266.9 million (primarily depreciation, amortization of intangibles, amortization of deferred financing costs, amortization of mortgage discounts, amortization of above- and below-market lease assets and liabilities, amortization of right of use assets, amortization of lease incentives and commissions, bad debt expense, unbilled straight-line rent (including the effect of adjustments due to rent deferrals), equity-based compensation, unrealized gains on foreign currency transactions, derivativesand other non-cash items). In addition, operating cash flow was impacted by lease incentive and commission payments of $0.5 million and a decrease of $4.5 million in working capital items due to a decrease in prepaid expenses and other assets of $9.8 million, a decrease in accounts payable and accrued expenses of $13.9 million and a decrease in prepaid rent of $0.5 million.

Previous wording

Net cash provided by investing activities during thethree months ended March 31, 2025 of $900.7 million consisted of net proceeds from dispositions of $910.5 million, principally from the First Closing of the Multi-Tenant Retail Disposition, which were partially offset by capital expenditures of $9.8 million.

Current wording

Net cash provided by investing activities during thesix months ended June 30, 2025 of $1.3 billion consisted of net proceeds from dispositions of $1.3 billion, principally from the Multi-Tenant Retail Disposition, which were partially offset by capital expenditures of $19.6 million.

Previous wording

Net cash provided by investing activities during the three months ended March 31, 2024 of $35.2 million consisted of net proceeds from dispositions of $43.1 million, partially offset by capital expenditures of $8.0 million.

Current wording

Net cash provided by investing activities during the six months ended June 30, 2024 of $281.1 million consisted of net proceeds from dispositions of $299.6 million, partially offset by capital expenditures of $18.5 million.

Previous wording

Net cash used in financing activities of $975.6 million during the three months ended March 31, 2025 was a result of net paydowns of borrowings under our Revolving Credit Facility of $875.2 million, net payments of principal on mortgage notes payable of $6.2 million, $19.4 million of Common Stock repurchases, dividends paid to common stockholders of $63.9 million, dividends paid to holders of our Series A Preferred Stock of $3.1 million, dividends paid to holders of our Series B Preferred Stock of $2.0 million, dividends paid to holders of our Series D Preferred Stock of $3.7 million, dividends paid to holders of our Series E Preferred Stock of $2.1 million.

Current wording

Net cash used in financing activities of $1.4 billion during the six months ended June 30, 2025 was a result of net paydowns of borrowings under our Revolving Credit Facility of $722.2 million, net payments of principal on mortgage notes payable of $490.0 million, $76.0 million of Common Stock repurchases, dividends paid to common stockholders of $107.4 million, dividends paid to holders of our Series A Preferred Stock of $6.2 million, dividends paid to holders of our Series B Preferred Stock of $4.0 million, dividends paid to holders of our Series D Preferred Stock of $7.4 million, dividends paid to holders of our Series E Preferred Stock of $4.2 million.

Previous wording

Net cash used in financing activities of $107.9 million during the three months ended March 31, 2024 was a result of net payments of principal on mortgage notes payable of $41.5 million, dividends paid to common stockholders of $81.7 million, dividends paid to holders of our Series A Preferred Stock of $3.1 million, dividends paid to holders of our Series B Preferred Stock of $2.0 million, dividends paid to holders of our Series D Preferred Stock of $3.7 million, dividends paid to holders of our Series E Preferred Stock of $2.1 million and cash paid for financing costs of $0.9 million. These cash outflows were partially offset by net proceeds from borrowings under our Revolving Credit Facility of $27.3 million

Current wording

Net cash used in financing activities of $450.1 million during the six months ended June 30, 2024 was a result of net payments of principal on mortgage notes payable of $266.3 million, dividends paid to common stockholders of $145.2 million, dividends paid to holders of our Series A Preferred Stock of $6.2 million, dividends paid to holders of our Series B Preferred Stock of $4.0 million, dividends paid to holders of our Series D Preferred Stock of $7.4 million, dividends paid to holders of our Series E Preferred Stock of $4.2 million, payments for early extinguishment of debt charges of $13.1 million and cash paid for financing costs of $7.6 million. These cash outflows were partially offset by net proceeds from borrowings under our Revolving Credit Facility of $4.5 million.

Previous wording

Our principal future needs for cash and cash equivalents include the purchase of additional properties or other investments, payment of related acquisition costs, improvement costs, operating and administrative expenses, repayment of certain debt obligations, which includes our continuing debt service obligations and dividends to holders of our Common Stock and Preferred Stock, as well as to any future class or series of preferred stock we may issue. As of March 31, 2025 and December 31, 2024, we had cash and cash equivalents of $147.0 million and $159.7 million, respectively. See discussion above for how our cash flows from various sources impacted our cash.

Current wording

Our principal future needs for cash and cash equivalents include the purchase of additional properties or other investments, payment of related acquisition costs, improvement costs, operating and administrative expenses, repayment of certain debt obligations, which includes our continuing debt service obligations and dividends to holders of our Common Stock and Preferred Stock, as well as to any future class or series of preferred stock we may issue. As of June 30, 2025 and December 31, 2024, we had cash and cash equivalents of $144.8 million and $159.7 million, respectively. See discussion above for how our cash flows from various sources impacted our cash.

Previous wording

Management expects that cash generated from operations, supplemented by our existing cash will be sufficient to fund, in the near term and long term, the payment of quarterly dividends to our common stockholders and holders of our Preferred Stock, as well as anticipated capital expenditures. During the three months ended March 31, 2025, cash generated from operations covered 79% of our dividends paid. In addition, we plan to continue to manage our leverage by using proceeds from dispositions to reduce our debt pursuant to our previously announced 2024 strategic disposition initiative, and we currently have entered into purchase and sale agreements (“PSAs”) and non-binding letters of intent (“LOIs”) totaling an aggregate of $188.8 million (excluding the remaining 41 properties to be sold in the Multi-Tenant Retail Disposition). The PSAs and LOIs are subject to conditions and there can be no assurance we will be able to complete these dispositions on their contemplated terms, or at all.

Current wording

Management expects that cash generated from operations, supplemented by our existing cash will be sufficient to fund, in the near term and long term, the payment of quarterly dividends to our common stockholders and holders of our Preferred Stock, as well as anticipated capital expenditures. During the six months ended June 30, 2025, cash generated from operations covered 86% of our dividends paid. In addition, we plan to continue to manage our leverage by using proceeds from dispositions to reduce our debt pursuant to our previously announced 2024 strategic disposition initiative, and we currently have entered into purchase and sale agreements (“PSAs”) and non-binding letters of intent (“LOIs”) totaling an aggregate of $206.9 million. The PSAs and LOIs are subject to conditions and there can be no assurance we will be able to complete these dispositions on their contemplated terms, or at all.

Previous wording

Our other sources of capital, which we have used and may use in the future, include proceeds received from our Revolving Credit Facility, proceeds from secured or unsecured financings (which may include note issuances), proceeds from our offerings of equity securities (including Common Stock and Preferred Stock), proceeds from any future sales of properties and undistributed cash flows from operations, if any.

Current wording

Our other sources of capital, which we have used and may use in the future, include proceeds received from our August 2025 Revolving Credit Facility, proceeds from secured or unsecured financings (which may include note issuances), proceeds from our offerings of equity securities (including Common Stock and Preferred Stock), proceeds from any future sales of properties and undistributed cash flows from operations, if any.

Previous wording

We are in the business of acquiring real estate properties and leasing the properties to tenants. Generally, we fund our acquisitions through a combination of cash and cash equivalents, proceeds from offerings of equity securities, borrowings under our Revolving Credit Facility and proceeds from mortgage or other debt secured by the acquired or other assets at the time of acquisition or at some later point. In addition, to the extent we dispose of properties, we have used and may continue to use the net proceeds from the dispositions (after repayment of any mortgage debt, if any) for future acquisitions or other general corporate purposes.

Current wording

We are in the business of acquiring real estate properties and leasing the properties to tenants. Generally, we fund our acquisitions through a combination of cash and cash equivalents, proceeds from offerings of equity securities, borrowings under our August 2025 Revolving Credit Facility and proceeds from mortgage or other debt secured by the acquired or other assets at the time of acquisition or at some later point. In addition, to the extent we dispose of properties, we have used and may continue to use the net proceeds from the dispositions (after repayment of any mortgage debt, if any) for future acquisitions or other general corporate purposes.