Global Medical REIT Inc.

Previous wording

See Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024 and Item 1A. Risk Factors in this Quarterly Report on Form 10-Q for further discussion of these and other risks, as well as the risks, uncertainties and other factors discussed in this Report and identified in other documents we may file with the SEC from time to time. You should carefully consider these risks before making any investment decisions in our company. New risks and uncertainties may also emerge from time to time that could materially and adversely affect us. While forward-looking statements reflect our good faith beliefs, they are not

Current wording

See Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024 and Item 1A. Risk Factors in this Quarterly Report on Form 10-Q for further discussion of these and other risks, as well as the risks, uncertainties and other

Previous wording

guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes after the date of this Report, except as required by applicable law. You should not place undue reliance on any forward-looking statements that are based on information currently available to us or the third parties making the forward-looking statements.

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factors discussed in this Report and identified in other documents we may file with the SEC from time to time. You should carefully consider these risks before making any investment decisions in our company. New risks and uncertainties may also emerge from time to time that could materially and adversely affect us. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes after the date of this Report, except as required by applicable law. You should not place undue reliance on any forward-looking statements that are based on information currently available to us or the third parties making the forward-looking statements.

Previous wording

Global Medical REIT Inc. (the “Company,” “us,” “we,” or “our”) is a Maryland corporation and internally managed REIT that acquires healthcare facilities and leases those facilities to physician groups and regional and national healthcare systems. We hold our facilities and conduct our operations through a Delaware limited partnership subsidiary, Global Medical REIT L.P. (the “Operating Partnership”). Our wholly owned subsidiary, Global Medical REIT GP LLC, is the sole general partner of our Operating Partnership and, as of March 31, 2025, we owned 92.19% of the outstanding common operating partnership units (“OP Units”) of our Operating Partnership, with an aggregate of 7.81% of the Operating Partnership owned by holders of long-term incentive plan units (“LTIP Units”) and third-party limited partners who contributed properties or services to the Operating Partnership in exchange for OP Units.

Current wording

Global Medical REIT Inc. (the “Company,” “us,” “we,” or “our”) is a Maryland corporation and internally managed REIT that acquires healthcare facilities and leases those facilities to physician groups and regional and national healthcare systems. We hold our facilities and conduct our operations through a Delaware limited partnership subsidiary, Global Medical REIT L.P. (the “Operating Partnership”). Our wholly owned subsidiary, Global Medical REIT GP LLC, is the sole general partner of our Operating Partnership and, as of June 30, 2025, we owned 91.92% of the outstanding common operating partnership units (“OP Units”) of our Operating Partnership, with an aggregate of 8.08% of the Operating Partnership owned by holders of long-term incentive plan units (“LTIP Units”) and third-party limited partners who contributed properties or services to the Operating Partnership in exchange for OP Units.

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Our business values integrate environmental sustainability, social responsibility, and strong governance practices throughout our Company.

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Our business values integrate environmental sustainability, social responsibility, and strong governance practices throughout our Company. Our Board of Directors’ (the “Board”) approach to these practices is viewed through the lens of reducing and controlling the Company’s risk profile.

Previous wording

Our Board of Directors (the “Board”) continues to lead our environmental, social and governance (“ESG”) efforts through a standing ESG committee. The primary purpose of the ESG committee is to assist the Board in fulfilling its responsibilities to provide oversight and support of our commitment to ESG matters by overseeing: (1) our general ESG strategy and policies as set by our management, (2) communications with our employees, investors, and other stakeholders with respect to ESG matters, (3) developments relating to, and improving our understanding of, ESG matters, (4) our compliance with certain ESG-related legal and regulatory requirements, and (5) coordination with our other Board committees on ESG matters of common import.

Current wording

Our Board continues to lead our sustainability efforts, and our Board has a standing committee focused on such efforts. The primary purpose of this committee is to assist the Board in fulfilling its responsibilities to provide oversight and support of our efforts and goals regarding sustainability matters by overseeing: (1) our general sustainability strategy and policies as set by our management, (2) communications with our employees, investors, and other stakeholders with respect to sustainability matters, (3) developments relating to, and improving our understanding of, sustainability matters, (4) our compliance with certain sustainability-related legal and regulatory requirements, and (5) coordination with our other Board committees on sustainability matters of common import.

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In June 2024, we released our third Corporate Social Responsibility Report, which detailed our progress and areas of focus in the ESG realm. The contents of our Corporate Social Responsibility Report are not incorporated by reference into this Report or in any other report or document we file with the SEC.

Current wording

In June 2024, we released our third Corporate Social Responsibility Report, which detailed our progress and areas of focus in the sustainability realm. The contents of our Corporate Social Responsibility Report are not incorporated by reference into this Report or in any other report or document we file with the SEC.

Previous wording

We take climate change and the risks associated with climate change seriously, including both physical and transitional risks. We utilize software to help us identify and measure the potential climate risk exposure for our properties. The software analysis summarizes the climate change-related risks, groups them by onset potential and identifies opportunities for risk mitigation. We prioritize energy efficiency and sustainability when evaluating investment opportunities and have begun to monitor our portfolio for climate risk factors. We utilize utility and energy audits that are performed by third-party engineering consultants during the due diligence phase of our acquisitions. The energy consumption data that we collect is used to assess our facilities’ carbon emission levels. Capturing and tracking this information may help inform future mitigation and remediation efforts when possible. To that end, we continue to explore ways to mitigate climate risk, should it be present, in our acquisition strategy, as well as ways to contribute to the reduction of climate impact through proactive asset management that looks for ways to incorporate renewable energy resources and energy utilization reduction.

Current wording

We take climate change and the risks associated with climate change seriously, including both physical and transitional risks. We utilize software to help us identify and measure the potential climate risk exposure for our properties. The software analysis summarizes the climate change-related risks, groups them by onset potential and identifies opportunities for risk mitigation. We assess energy efficiency and sustainability when evaluating investment opportunities and have begun to monitor our portfolio for climate risk factors. We utilize utility and energy audits that are performed by third-party engineering consultants during the due diligence phase of our acquisitions. The energy consumption data that we collect is used to calculate our facilities’ carbon emission levels. Capturing and tracking this information may help inform future mitigation and remediation efforts when possible. To that end, we continue to explore ways to mitigate climate risk, should it be present, in our acquisition strategy, as well as ways to contribute to the reduction of climate impact through proactive asset management that looks for ways to incorporate renewable energy resources and energy utilization reduction.

Previous wording

During 2024, the U.S. Federal Reserve (the “Fed”) began lowering the Federal Funds Rate after many quarters of increasing the target range for the rate to combat inflation. Beginning in September 2024 through December 2024, the Federal Funds Rate dropped from a range of 5.25% – 5.50% to 4.25% - 4.50%. However, U.S. Treasury yields and Secured Overnight Financing Rate (“SOFR”) swap rates have not responded in kind with 10-Year U.S. Treasury yields increasing from 3.79% at September 30, 2024 to 4.21% at March 31, 2025 and the five-year forward SOFR swap rates increasing from 3.21% to 3.59%, during the same period. The difference between the changes in the Federal Funds Rate and U.S. Treasury yields and forward SOFR swap rates reflect market expectations of increased inflationary pressures in the coming months and years as well as the effects of recently enacted global tariffs. Consequently, the Fed may maintain an elevated Federal Funds Rate, or determine to raise the Federal Funds Rate again, in 2025 and beyond if inflation begins to rise.

Current wording

During 2024, the U.S. Federal Reserve (the “Fed”) began lowering the Federal Funds Rate after many quarters of increasing the target range for the rate to combat inflation. Beginning in September 2024 through December 2024, the Federal Funds Rate dropped from a range of 5.25% – 5.50% to 4.25% - 4.50%. However, U.S. Treasury yields and Secured Overnight Financing Rate (“SOFR”) swap rates have not responded in kind with 10-Year U.S. Treasury yields increasing from 3.79% at September 30, 2024 to 4.23% at June 30, 2025 and the five-year forward SOFR swap rates increasing from 3.21% to 3.38%, during the same period. The difference between the changes in the Federal Funds Rate and U.S. Treasury yields and forward SOFR swap rates reflect market expectations of increased inflationary pressures in the coming months and years as well as the effects of recently enacted global tariffs. Consequently, the Fed may maintain an elevated Federal Funds Rate, or determine to raise the Federal Funds Rate again, in 2025 and beyond if inflation begins to rise.

Previous wording

In summary, interest expense on our Revolver, which is based on the short-term interest rate of one-month SOFR, decreased during the fourth quarter of 2024 along with the decrease in the Federal Funds Rate. With respect to our Term Loan A and its related interest rate swaps, if we refinance that loan and wish to hedge our prospective interest rate risk by entering into new interest rate swaps, the swap rates at the time of refinancing will be significantly higher than our current interest rate swaps due to (i) the general increase in SOFR since 2021 and (ii) the widening between short-term and long-term rates based on renewed inflationary pressures.

Current wording

In summary, the interest rate on our Revolver, which is based on one-month SOFR, decreased during the fourth quarter of 2024 along with the decrease in the Federal Funds Rate but has been relatively unchanged during 2025. With respect to our Term Loan A and its related interest rate swaps, if we refinance that loan (which we expect to complete during the fourth quarter of 2025) and hedge our prospective interest rate risk by entering into new interest rate swaps, the swap rates at the time of refinancing are expected to be significantly higher than our current interest rate swaps due to (i) the general increase in SOFR since 2021 and (ii) the widening between short-term and long-term rates based on renewed inflationary pressures.

Previous wording

As of March 31, 2025, we had gross investments of approximately $1.5 billion in real estate properties, consisting of 191 buildings with an aggregate of approximately 4.9 million leasable square feet and approximately $113 million of annualized base rent. This data does not include amounts for properties held in our unconsolidated joint venture.

Current wording

As of June 30, 2025, we had gross investments of approximately $1.5 billion in real estate, consisting of 193 buildings with an aggregate of approximately 5.2 million leasable square feet and approximately $118 million of annualized base rent. This data does not include amounts for properties held in our unconsolidated joint venture.

Previous wording

During the three months ended March 31, 2025, we completed two dispositions that generated aggregate gross proceeds of $8.2 million, resulting in an aggregate gain of $1.4 million.

Current wording

During the six months ended June 30, 2025, we completed three dispositions that generated aggregate gross proceeds of $9.6 million, resulting in an aggregate gain of $1.6 million.

Previous wording

In January 2024, the Company and the Operating Partnership implemented a $300 million “at-the-market” equity offering program, pursuant to which we may offer and sell (including through forward sales), from time to time, shares of our common stock (the “2024 ATM Program”). No shares were sold under the 2024 ATM Program during the three months ended March 31, 2025.

Current wording

In January 2024, the Company and the Operating Partnership implemented a $300 million “at-the-market” equity offering program, pursuant to which we may offer and sell (including through forward sales), from time to time, shares of our common stock (the “2024 ATM Program”). No shares were sold under the 2024 ATM Program during the six months ended June 30, 2025.

Previous wording

During the three months ended March 31, 2025, we borrowed $44.0 million under the Credit Facility and repaid $13.5 million, for a net amount borrowed of $30.5 million. During the three months ended March 31, 2024, we borrowed $14.0 million under the Credit Facility and repaid $7.8 million, for a net amount borrowed of $6.2 million. As of March 31, 2025, the net outstanding Credit Facility balance was $662.8 million and as of May 6, 2025, we had unutilized borrowing capacity under the Revolver of $187 million.

Current wording

During the six months ended June 30, 2025, we borrowed $94.5 million under the Credit Facility and repaid $28.5 million, for a net amount borrowed of $66.0 million. During the six months ended June 30, 2024, we borrowed $38.5 million under the Credit Facility and repaid $25.9 million, for a net amount borrowed of $12.6 million. As of June 30, 2025, the net outstanding Credit Facility balance was $698.8 million and as of August 4, 2025, we had unutilized borrowing capacity under the Revolver of $177 million.

Previous wording

March 31, 2024 and through the three months ended March 31, 2025, partially offset by acquisitions that were completed during that period. Within that decrease, $5.2 million in revenue was recognized from net lease expense recoveries during the three months ended March 31, 2025, compared to $5.0 million for the same period in 2024.

Current wording

Total revenue for the three months ended June 30, 2025 was $38.0 million, compared to $34.2 million for the same period in 2024, an increase of $3.8 million. The increase primarily resulted from the impact of acquisitions that were completed subsequent to June 30, 2024 and through the three months ended June 30, 2025, partially offset by dispositions during that period. Within that increase, $5.4 million in revenue was recognized from net lease expense recoveries during the three months ended June 30, 2025, compared to $4.9 million for the same period in 2024. Additionally, the prior year period included the recognition of reserves for $0.8 million of rent and the write-off of $0.1 million of deferred rent.

Previous wording

General and administrative expenses for the three months ended March 31, 2025 was $3.6 million, compared to $4.4 million for the same period in 2024, a decrease of $0.8 million. The decrease primarily resulted from a decrease in non-cash LTIP compensation expense, which was $0.2 million for the three months ended March 31, 2025, compared to $1.2 million for the same period in 2024. This decrease in non-cash LTIP compensation expense resulted from the required accounting treatment of compensation expense for the unvested LTIP units of Mr. Jeffery Busch, our Chairman and Chief Executive Officer, pursuant to the Transition and Separation Agreement and General Release of Claims, dated January 8, 2025, by and among the Company, Inter-American Management LLC and Mr. Busch (the “Transition and Separation Agreement”). The decrease in non-cash LTIP compensation expense was partially offset by additional general and administrative expenses incurred during the current period related to the Transition and Separation Agreement with Mr. Busch.

Current wording

General and administrative expenses for the three months ended June 30, 2025 were $6.0 million, compared to $4.6 million for the same period in 2024, an increase of $1.4 million. The increase primarily resulted from costs incurred during the current period pursuant to the Transition and Separation Agreement and General Release of Claims, dated January 8, 2025, by and among the Company, Inter-American Management LLC and Jeffrey Busch, our former Chief Executive Officer (the “Transition and Separation Agreement”). Additionally, there was an increase in non-cash LTIP compensation expense, which was $1.7 million for the three months ended June 30, 2025, compared to $1.3 million for the same period in 2024.

Previous wording

Operating expenses for the three months ended March 31, 2025 were $7.6 million, compared to $7.4 million for the same period in 2024, an increase of $0.2 million. While the increase compared to 2024 is not significant, the increase relative to revenue reflects changes in our portfolio between the periods, including increased costs from properties acquired in 2024 and during the three months ended March 31, 2025, partially offset by a net reduction in costs at other properties. Included in these amounts were $5.2 million of recoverable property operating expenses incurred during the three months ended March 31, 2025, compared to $5.0 million for the same period in 2024. In addition, our operating expenses included $1.4 million of property operating expenses from gross leases for the three months ended March 31, 2025, compared to $1.5 million for the same period in 2024.* *

Current wording

Operating expenses for the three months ended June 30, 2025 were $8.2 million, compared to $7.2 million for the same period in 2024, an increase of $1.0 million. The increase primarily resulted from the impact of acquisitions that were completed subsequent to June 30, 2024 and through the three months ended June 30, 2025, partially offset by dispositions during that period and a net reduction in costs at other properties. Included in these amounts were $5.4 million of recoverable property operating expenses incurred during the three months ended June 30, 2025, compared to $4.9 million for the same period in 2024. In addition, our operating expenses included $1.8 million of property operating expenses from gross leases for the three months ended June 30, 2025, compared to $0.9 million for the same period in 2024.* *

Previous wording

Depreciation expense for the three months ended March 31, 2025 was $10.3 million, compared to $10.1 million for the same period in 2024, an increase of $0.2 million. The increase primarily resulted from the impact of acquisitions that were completed subsequent to March 31, 2024 and through the three months ended March 31, 2025, partially offset by dispositions that were completed during that period.

Current wording

Depreciation expense for the three months ended June 30, 2025 was $11.3 million, compared to $10.1 million for the same period in 2024, an increase of $1.2 million. The increase primarily resulted from the impact of acquisitions that were completed subsequent to June 30, 2024 and through the three months ended June 30, 2025, partially offset by dispositions during that period.

Previous wording

Interest expense for the three months ended March 31, 2025 was $7.2 million, compared to $6.9 million for the same period in 2024, an increase of $0.3 million. The increase was primarily due to higher average borrowings, partially offset by lower interest rates during the three months ended March 31, 2025, compared to the same period in 2024.

Current wording

Interest expense for the three months ended June 30, 2025 was $8.0 million, compared to $7.0 million for the same period in 2024, an increase of $1.0 million. The increase was primarily due to higher average borrowings and slightly higher interest rates during the three months ended June 30, 2025, compared to the same period in 2024.

Previous wording

The weighted average interest rate of our debt for the three months ended March 31, 2025 was 3.83% compared to 3.90% for the same period in 2024. Additionally, the weighted average interest rate and term of our debt was 3.84% and 1.8 years at March 31, 2025.

Current wording

The weighted average interest rate of our debt for the three months ended June 30, 2025 was 4.03% compared to 3.93% for the same period in 2024. Additionally, the weighted average interest rate and term of our debt was 4.09% and 1.6 years at June 30, 2025.

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Gain on Sale of Investment Properties

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Gain (Loss) on Sale of Investment Properties

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During the three months ended March 31, 2025, we recognized a loss from the Joint Venture of $40 thousand, which represented our 12.5% ownership interest in the net loss of the Joint Venture during that period.

Current wording

During the three months ended June 30, 2025, we recognized a loss from the Joint Venture of $50 thousand, which represented our 12.5% ownership interest in the net loss of the Joint Venture during that period.

Previous wording

Amortization expense for the three months ended March 31, 2025 was $3.5 million, compared to $4.0 million for the same period in 2024, a decrease of $0.5 million. The decrease primarily resulted from the impact of dispositions that were completed subsequent to March 31, 2024 and through the three months ended March 31, 2025, partially offset by acquisitions that were completed during that period.

Current wording

Amortization expense for the six months ended June 30, 2025 was $7.5 million, compared to $7.8 million for the same period in 2024, a decrease of $0.3 million. The decrease primarily resulted from the impact of dispositions that were completed subsequent to June 30, 2024 and through the six months ended June 30, 2025, partially offset by acquisitions that were completed during that period.

Previous wording

During the three months ended March 31, 2025, we completed two dispositions resulting in an aggregate gain of $1.4 million. During the three months ended March 31, 2024 we had no property dispositions.

Current wording

During the six months ended June 30, 2025, we completed three dispositions resulting in an aggregate gain of $1.6 million. During the six months ended June 30, 2024, we completed one disposition resulting in a loss of $3.4 million.

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Net income for the three months ended March 31, 2025 was $3.7 million, compared to $2.3 million for the same period in 2024, an increase of $1.4 million*.*

Current wording

Net income for the six months ended June 30, 2025 was $4.3 million, compared to $0.4 million for the same period in 2024, an increase of $3.9 million*.*

Previous wording

As of March 31, 2025 and December 31, 2024, our principal assets consisted of investments in real estate, net, of $1.2 billion. We completed three acquisitions and completed two dispositions during the three months ended March 31, 2025. Our liquid assets consisted primarily of cash and cash equivalents and restricted cash of $7.6 million and $8.9 million, as of March 31, 2025 and December 31, 2024, respectively.

Current wording

As of June 30, 2025 and December 31, 2024, our principal assets consisted of investments in real estate, net, of $1.2 billion. We completed five acquisitions and three dispositions during the six months ended June 30, 2025. Our liquid assets consisted primarily

Previous wording

The decrease in our cash and cash equivalents and restricted cash balances to $7.6 million as of March 31, 2025, compared to $8.9 million as of December 31, 2024, was primarily due to funds used to acquire investment properties, the payment of dividends to common and preferred stockholders as well as holders of OP Units and LTIP Units, and funds used for capital expenditures on existing real estate investments and leasing commissions, partially offset by net borrowings on our Credit Facility, net proceeds received from the sale of investment properties, and net cash provided by operating activities.

Current wording

The increase in our cash and cash equivalents and restricted cash balances to $9.2 million as of June 30, 2025, compared to $8.9 million as of December 31, 2024, was primarily due to net borrowings on our Credit Facility, net proceeds received from the sale of investment properties, and net cash provided by operating activities, partially offset by funds used to acquire investment properties, the payment of dividends to common and preferred stockholders as well as holders of OP Units and LTIP Units, and funds used for capital expenditures on existing real estate investments and leasing commissions.

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The increase in our total liabilities to $731.5 million as of March 31, 2025 compared to $700.6 million as of December 31, 2024, was primarily the result of higher net borrowings outstanding on our Credit Facility.

Current wording

The increase in our total liabilities to $772.0 million as of June 30, 2025 compared to $700.6 million as of December 31, 2024, was primarily the result of higher net borrowings outstanding on our Credit Facility.

Previous wording

In January 2024, the Company and the Operating Partnership implemented the 2024 ATM Program, pursuant to which we may offer and sell (including through forward sales), from time to time, shares of our common stock. No shares were sold under the 2024 ATM Program during the three months ended March 31, 2025 or from April 1, 2025 through May 6, 2025.

Current wording

In January 2024, the Company and the Operating Partnership implemented the 2024 ATM Program, pursuant to which we may offer and sell (including through forward sales), from time to time, shares of our common stock. No shares were sold under the 2024 ATM Program during the six months ended June 30, 2025 or from July 1, 2025 through August 4, 2025.

Previous wording

*Credit Facility.*Our Credit Facility consists of (i) the $350 million Term Loan A, (ii) the $150 million Term Loan B, and (iii) the $400 million Revolver. The Credit Facility also contains a $500 million accordion feature. As of May 6, 2025, we had unutilized borrowing capacity under the Credit Facility of $187 million.

Current wording

*Credit Facility.*Our Credit Facility consists of (i) the $350 million Term Loan A, (ii) the $150 million Term Loan B, and (iii) the $400 million Revolver. The Credit Facility also contains a $500 million accordion feature. As of August 4, 2025, we had unutilized borrowing capacity under the Credit Facility of $177 million.

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*Other Fixed Debt.*We have $14.3 million in gross notes payable as of March 31, 2025. This debt is comprised of two instruments.

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*Other Fixed Debt.*We have $14.2 million in gross notes payable as of June 30, 2025. This debt is comprised of two instruments.

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*Hedging Instruments.As of March 31, 2025, *we had nine interest rate swaps that are used to manage our interest rate risk. Five of our interest rate swaps related to Term Loan A with a combined notional value of $350 million that fix the SOFR component on Term

Current wording

*Hedging Instruments.As of June 30, 2025, *we had nine interest rate swaps that are used to manage our interest rate risk. Five of our interest rate swaps related to Term Loan A with a combined notional value of $350 million that fix the SOFR component on Term Loan A through April 2026 at 1.36%. Four of our interest rate swaps related to Term Loan B with a combined notional value of $150 million that fix the SOFR component on Term Loan B through January 2028 at 2.54%.

Previous wording

Total Fixed Debt. Our fixed debt totaled $514.3 million on a gross basis at March 31, 2025, with a weighted average interest rate of 3.18% based on our interest rate swaps and at current leverage. The weighted average maturity of our fixed debt was 1.6 years at March 31, 2025.

Current wording

Total Fixed Debt. Our fixed debt totaled $514.2 million on a gross basis at June 30, 2025, with a weighted average interest rate of 3.33% based on our interest rate swaps and at current leverage. The weighted average maturity of our fixed debt was 1.4 years at June 30, 2025.

Previous wording

Net cash provided by operating activities for the three months ended March 31, 2025 was $12.3 million, compared to $14.3 million for the same period in 2024. During the 2025 period, non-cash LTIP compensation expense and amortization expense were lower.

Current wording

Net cash provided by operating activities for the six months ended June 30, 2025 was $34.4 million, compared to $33.2 million for the same period in 2024. During the 2025 period, net income was higher, partially offset by an aggregate gain on the sale of investment properties.

Previous wording

Net cash used in investing activities for the three months ended March 31, 2025 was $27.2 million, compared to $2.7 million for the same period in 2024. During the 2025 period, we used funds to acquire investment properties and more funds were used for capital expenditures on existing real estate investments, partially offset by net proceeds received from the sale of investment properties and less funds used to pay leasing commissions.

Current wording

Net cash used in investing activities for the six months ended June 30, 2025 was $66.4 million, compared to $0.9 million for the same period in 2024. During the 2025 period, we used significant funds to acquire investment properties, partially offset by more net proceeds received from the sale of investment properties and less funds used for capital expenditures on existing real estate investments and leasing commissions.

Previous wording

Net cash provided by financing activities for the three months ended March 31, 2025 was $13.6 million, compared to net cash used in financing activities of $10.5 million for the same period in 2024. During the 2025 period, we had higher net borrowings on our Credit Facility, partially offset by slightly higher dividends paid to common and preferred stockholders as well as holders of OP Units and LTIP Units.

Current wording

Net cash provided by financing activities for the six months ended June 30, 2025 was $32.3 million, compared to net cash used in financing activities of $31.2 million for the same period in 2024. During the 2025 period, we had higher net borrowings on our Credit Facility and lower repayment of our notes payable.

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Funds from Operations and Adjusted Funds from Operations

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Funds from Operations and Adjusted Funds from Operations and Funds Available for Distribution

Previous wording

Funds from operations attributable to common stockholders and noncontrolling interest (“FFO”) and adjusted funds from operations attributable to common stockholders and noncontrolling interest (“AFFO”) are non-GAAP financial measures within the meaning of the rules of the SEC. The Company considers FFO and AFFO to be important supplemental measures of its operating performance and believes FFO is frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results.

Current wording

Funds from operations attributable to common stockholders and noncontrolling interest (“FFO”) and adjusted funds from operations attributable to common stockholders and noncontrolling interest (“AFFO”) and funds available for distribution attributable to common stockholders and noncontrolling interest (“FAD”) are non-GAAP financial measures within the meaning of the rules of the SEC. The Company considers FFO and AFFO and FAD to be important supplemental measures of its operating performance and believes FFO is frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results.

Previous wording

Management believes that reporting AFFO in addition to FFO is a useful supplemental measure for the investment community to use when evaluating the operating performance of the Company on a comparative basis.

Current wording

Management believes that reporting AFFO in addition to FFO and FAD is a useful supplemental measure for the investment community to use when evaluating the operating performance of the Company on a comparative basis.

Previous wording

A reconciliation of net income to FFO and AFFO for the three months ended March 31, 2025 and 2024 is as follows:

Current wording

A reconciliation of net income to FFO and AFFO and FAD for the three and six months ended June 30, 2025 and 2024 is as follows:

Previous wording

The Company calculates EBITDAre in accordance with standards established by NAREIT and defines EBITDAre as net income or loss computed in accordance with GAAP plus depreciation and amortization, interest expense, gain or loss on the sale of investment properties, property impairment losses, andadjustments for unconsolidated partnerships and joint ventures to reflect EBITDAre on the same basis, as applicable. The Company defines Adjusted EBITDAreas EBITDAre plus loss on extinguishment of debt, non-cash stock compensation expense, non-cash intangible amortization related to above and below market leases, severance and transition related expense, transaction expense, adjustments related to our investments in unconsolidated joint ventures, and other normalizing items. Management considers EBITDAre and Adjusted EBITDAre important measures because they provide additional information to allow management, investors, and our current and potential creditors to evaluate and compare our core operating results and our ability to service debt.

Current wording

The Company calculates EBITDAre in accordance with standards established by NAREIT and defines EBITDAre as net income or loss computed in accordance with GAAP plus depreciation and amortization, interest expense, gain or loss on the sale of investment properties, property impairment losses, andadjustments for unconsolidated partnerships and joint ventures to reflect EBITDAre on the same basis, as applicable. The Company defines Adjusted EBITDAreas EBITDAre plus loss on extinguishment of debt, non-cash stock compensation expense, non-cash intangible amortization related to above and below market leases, severance and