Global Net Lease, Inc.

Previous wording

This Quarterly Report on Form 10-Q contains “forward-looking statements”, as that term is defined under the Private Securities Litigation Reform Act of 1995 (“PSLRA”), Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include statements regarding the intent, belief or current expectations of Global Net Lease, Inc. (“we,” “our,” or “us”) and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “projects,” “potential,” “predicts,” “expects,” “plans,” “intends,” “would,” “could,” “should” or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those contemplated by such forward-looking statements. We believe these forward-looking statements are reasonable; however, you should not place undue reliance on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.

Current wording

This Quarterly Report on Form 10-Q contains “forward-looking statements”, as that term is defined under the Private Securities Litigation Reform Act of 1995 (“PSLRA”), Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include statements regarding the intent, belief or current expectations of Global Net Lease, Inc. (“we,” “our,” or “us”) and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “projects,” “potential,” “predicts,” “expects,” “plans,” “intends,” “would,” “could,” “should” or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those contemplated by such forward-looking statements. We believe these forward-looking statements are reasonable; however, you should not place undue reliance on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.

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 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, 2025, 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, including the Modiv transaction, 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, 2025, 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

As of March 31, 2026, we owned 809 properties consisting of 40.3 million rentable square feet, which were 97% leased, with a weighted-average remaining lease term of 5.9 years. Based on the percentage of annualized rental income on a straight-line basis as of March 31, 2026, approximately 74% of our properties were located in the U.S. and Canada and approximately 26% were located in Europe. In addition, as of March 31, 2026, our portfolio was comprised of 47% Industrial & Distribution properties, 27% Retail properties and 26% Office properties. The percentages are calculated using annualized straight-line rent converted from local currency into the U.S. Dollar (“USD”) as of March 31, 2026. The straight-line rent includes amounts for tenant concessions.

Current wording

As of June 30, 2026, we owned 798 properties consisting of 39.7 million rentable square feet, which were 97% leased, with a weighted-average remaining lease term of 5.7 years. Based on the percentage of annualized rental income on a straight-line basis as of June 30, 2026, approximately 74% of our properties were located in the U.S. and Canada and approximately 26% were located in Europe. In addition, as of June 30, 2026, our portfolio was comprised of 47% Industrial & Distribution properties, 28% Retail properties and 25% 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, 2026. 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 64.4% of our rental income on an annualized straight-line basis for leases in place as of March 31, 2026 was derived from Investment Grade rated tenants, comprised of 33.5% leased to tenants with an actual investment grade rating and 30.9% 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 Analytics tool, which generates an implied rating by measuring an entity’s probability of default. Ratings information is as of March 31, 2026.

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 63.3% of our rental income on an annualized straight-line basis for leases in place as of June 30, 2026 was derived from Investment Grade rated tenants, comprised of 38.0% leased to tenants with an actual investment grade rating and 25.3% 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, 2026.

Previous wording

Agreement and Plan of Merger

Current wording

Agreement and Plan of Merger with Modiv

Previous wording

In addition, the Merger Agreement requires, among other things, that the Company file with the Securities and Exchange Commission a Registration Statement on Form S-4 registering the issuance of the Modiv Common Stock Merger Consideration under the Securities Act of 1933, as amended, which will contain a prospectus of the Company for the issuance of the Modiv Common Stock Merger Consideration and a proxy statement of Modiv with respect to its special meeting of Modiv’s stockholders convened for purposes of obtaining the approval of the Modiv Merger.

Current wording

In addition, the Merger Agreement requires, among other things, that the Company file with the SEC a Registration Statement on Form S-4 registering the issuance of the Modiv Common Stock Merger Consideration under the Securities Act, containing a prospectus of the Company for the issuance of the Modiv Common Stock Merger Consideration and a proxy statement of Modiv (the “Modiv Transaction S-4”) with respect to its special meeting of Modiv’s stockholders convened for purposes of obtaining the approval of the Modiv Merger. The Company filed the Modiv Transaction S-4 on June 1, 2026, which the SEC declared effective on June 24, 2026, and Modiv set August 10, 2026 as the date for such special meeting.

Previous wording

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

We have three 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 100 multi-tenant retail properties that were sold in 2025 (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, 2026 and 2025 (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 100 multi-tenant retail properties that were sold in 2025 (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, 2026 and 2025 (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 $16.0 million for the three months ended March 31, 2026, as compared to $200.3 million for the three months ended March 31, 2025. 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 $7.5 million for the three months ended June 30, 2026, as compared to $35.1 million for the three months ended June 30, 2025. 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 $49.2 million and $58.0 million for the three months ended March 31, 2026 and 2025, respectively. The decrease in revenue from tenants was due to the loss of revenue of approximately $9.3 million from dispositions, partially offset by higher revenue of approximately $0.5 million from other properties. The net 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 approximately $8.0 million of the decrease. There was minimal impact from the year-over-year change in average exchange rates during the three months ended March 31, 2026, when compared to the same period last year.

Current wording

Revenue from tenants in our Industrial & Distribution segment was $51.7 million and $55.0 million for the three months ended June 30, 2026 and 2025, respectively. The decrease in revenue from tenants was due to the net loss of revenue of approximately $2.0 million from dispositions and lower revenue of approximately $1.3 million from other properties. The net loss of revenue from dispositions primarily resulted from the sale of two groups of properties that were leased by two of our former tenants. There was minimal impact from the year-over-year change in average exchange rates during the three months ended June 30, 2026, when compared to the same period last year.

Previous wording

Revenue from tenants in our Retail segment was $29.5 million and $37.0 million for the three months ended March 31, 2026 and 2025, respectively. The decrease was primarily driven by the loss of revenue of approximately $7.6 million from dispositions, partially offset by an increase in revenue from other properties of $0.1 million. The loss of revenue from dispositions was primarily related to one tenant which comprised approximately $6.1 million of the decrease. There was minimal impact from the year-over-year change in average exchange rates during the three months ended March 31, 2026, when compared to the same period last year.

Current wording

Revenue from tenants in our Retail segment was $30.0 million and $35.4 million for the three months ended June 30, 2026 and 2025, respectively. The decrease was primarily driven by the loss of revenue of approximately $5.6 million from dispositions, partially offset by an increase in revenue from other properties of $0.2 million. The loss of revenue from dispositions was primarily related to one tenant which comprised approximately $3.9 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, 2026, when compared to the same period last year.

Previous wording

Revenue from tenants in our Office segment was $30.6 million and $37.4 million for the three months ended March 31, 2026 and 2025, respectively. The decrease in the first quarter of 2026, when compared to the same period last year, was primarily driven by the net loss of revenue of approximately $8.7 million from dispositions, partially offset by higher revenue from other properties of $1.9 million. The net loss of revenue from dispositions was primarily related to four tenants, which comprised approximately $7.4 million of the decrease. The year-over-year change in foreign exchange rates had a minimal impact.

Current wording

Revenue from tenants in our Office segment was $30.8 million and $34.6 million for the three months ended June 30, 2026 and 2025, respectively. The decrease in the second quarter of 2026, when compared to the same period last year, was primarily driven by the net loss of revenue of approximately $5.9 million from dispositions, partially offset by higher revenue from other properties of $2.1 million. The net loss of revenue from dispositions was primarily related to seven tenants which comprised approximately $5.5 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 for each of the three months ended March 31, 2026 and 2025. Lower costs of $0.9 million from dispositions were offset by higher costs of $0.9 million from properties owned in both periods 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 three months ended March 31, 2026, when compared to the same period last year.

Current wording

Property operating expenses in our Industrial & Distribution segment were $5.6 million and $4.2 million for the three months ended June 30, 2026 and 2025, respectively. Lower costs of $0.5 million from dispositions were offset by higher costs of $1.9 million from properties owned in both periods 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 three months ended June 30, 2026, when compared to the same period last year.

Previous wording

Property operating expenses in our Retail segment were $3.7 million and $3.9 million for the three months ended March 31, 2026 and 2025, respectively. The decrease in the first quarter of 2026 was primarily due to lower costs of $1.1 million from properties sold, partially offset by higher costs of $0.9 million, from properties owned in both periods, primarily due to higher costs absorbed by us at one of our properties located in Europe. There was minimal impact from the year-over-year change in average exchange rates during the three months ended March 31, 2026, when compared to the same period last year.

Current wording

Property operating expenses in our Retail segment were $3.8 million and $3.0 million for the three months ended June 30, 2026 and 2025, respectively. Lower costs in the second quarter of 2026 of $0.3 million from properties sold were offset by higher costs of $1.1 million, from properties owned in both periods primarily due to higher costs absorbed by us at one of our properties located in Europe. There was minimal impact from the year-over-year change in average exchange rates during the three months ended June 30, 2026, when compared to the same period last year.

Previous wording

Property operating expenses in our Office segment were $4.0 million and $4.8 million for the three months ended March 31, 2026 and 2025, respectively. The decrease in the first quarter of 2026 was driven by lower costs of $1.1 million from properties sold, partially offset by an increase in costs of $0.3 million from properties owned in both periods. There was minimal impact from the year-over-year change in average exchange rates during the three months ended March 31, 2026, when compared to the same period last year.

Current wording

Property operating expenses in our Office segment were $3.9 million and $4.8 million for the three months ended June 30, 2026 and 2025, respectively. The decrease in the second quarter of 2026 was driven by lower costs of $1.3 million from properties sold, partially offset by an increase in costs of $0.4 million from properties owned in both periods. There was minimal impact from the year-over-year change in average exchange rates during the three months ended June 30, 2026, when compared to the same period last year.

Previous wording

During the three months ended March 31, 2026, we determined that six of our properties located in the U.S. 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 impairment charges totaling approximately $11.1 million.

Current wording

During the three months ended June 30, 2026, we determined that 4 of our properties (two located in the U.S., one located in the U.K. and one 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 impairment charges totaling approximately $3.7 million.

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

We recognized $4.4 million and $1.6 million of acquisition, transaction and other costs during the three months ended March 31, 2026 and 2025, respectively. The increase was primarily due to costs incurred in connection with a higher volume of transaction-related activity in the first quarter of 2026.

Current wording

We recognized $6.6 million and $2.0 million of merger, transaction and other costs during the three months ended June 30, 2026 and 2025, respectively. The increase was primarily due to costs incurred in the second quarter of 2026 related to the pending acquisition of Modiv.

Previous wording

During the three months ended March 31, 2026 and 2025, we recognized equity-based compensation expense of $4.0 million and $3.1 million, respectively. Equity-based compensation in the quarter ended March 31, 2026 consisted of (i) amortization of restricted shares of our 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 the first quarter of 2026.

Current wording

During the three months ended June 30, 2026 and 2025, we recognized equity-based compensation expense of $3.9 million and $3.3 million, respectively. Equity-based compensation expense consists of (i) amortization of restricted shares of our 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 the first quarter of 2026.

Previous wording

Depreciation and amortization expense was $41.6 million and $56.3 million for the three months ended March 31, 2026 and 2025, respectively. The decrease was due to lower depreciation and amortization due to dispositions during 2026 and 2025, as well as higher amortization expense in the prior year period of approximately $11 million from the accelerated amortization of in-place lease intangibles during the three months ended March 31, 2025.

Current wording

Depreciation and amortization expense was $41.5 million and $45.6 million for the three months ended June 30, 2026 and 2025, respectively. The decrease was due to lower depreciation and amortization due to dispositions during 2026 and 2025.

Previous wording

We did not acquire any properties during the three months ended March 31, 2026. We sold 11 properties (two Industrial and Distribution properties, seven Retail properties and two Office properties), for an aggregate contract price of approximately $70.6 million during the three months ended March 31, 2026.

Current wording

During the three months ended June 30, 2026, we sold 11 properties (three Industrial & Distribution properties, six Retail properties and two Office properties) and recorded a net gain of $23.3 million.

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), and recorded a net loss of $1.7 million. These amounts do not include the properties sold in the first quarter of 2025 that were included in the Multi-Tenant Retail Portfolio, which are part of discontinued operations (see Note 3 — Multi-Tenant Retail Disposition for additional information to our consolidated financial statements included in this Quarterly Report on Form 10-Q).

Current wording

During the three months ended June 30, 2025, we sold 94 properties (five Industrial & Distribution properties, 88 Retail properties and one Office property), and recorded a net gain of $1.5 million. These amounts do not include the properties sold in the second quarter of 2025 that were included in the Multi-Tenant Retail Portfolio, which are part of discontinued operations (see Note 3 — Multi-Tenant Retail Disposition for additional information to our consolidated financial statements included in this Quarterly Report on Form 10-Q).

Previous wording

Interest expense was $39.2 million and $53.4 million for the three months ended March 31, 2026 and 2025, 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, 2026. The amount of our total gross debt outstanding was $2.6 billion as of March 31, 2026, as compared to $3.4 billion as of March 31, 2025. The weighted-average effective interest rate of our total debt was 4.1% as of March 31, 2026 and 4.2% as of March 31, 2025.

Current wording

Interest expense was $38.8 million and $53.3 million for the three months ended June 30, 2026 and 2025, 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, 2026. The amount of our total gross debt outstanding was $2.5 billion as of June 30, 2026, as compared to $3.1 billion as of June 30, 2025. The weighted-average effective interest rate of our total debt was 4.1% as of June 30, 2026 and 4.3% as of June 30, 2025.

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, 2026, when compared to the same period last year. As of March 31, 2026, approximately 15% of our total debt outstanding was denominated in Euros (“EUR”). As of March 31, 2025, approximately 16% of our total debt outstanding was denominated in EUR and 1% was denominated in Canadian Dollars (“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, 2026, when compared to the same period last year. As of June 30, 2026, approximately 22% of our total debt outstanding was denominated in Euros (“EUR”). As of June 30, 2025, approximately 19% of our total debt outstanding was denominated in EUR and 1% was denominated in Canadian Dollars (“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, 2026, approximately 50% of our total debt outstanding was secured and 50% was unsecured, the latter including amounts outstanding under our Revolving Credit Facility, 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, 2026, approximately 41% of our total debt outstanding was secured and 59% 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 $1.7 million and $0.4 million during the quarters ended March 31, 2026 and March 31, 2025, respectively.

Current wording

The loss on extinguishment of debt was $11.9 million and $4.3 million during the quarters ended June 30, 2026 and June 30, 2025, respectively. The loss on extinguishment of debt in the second quarter of 2026 primarily related to accelerated amortization of the discount related to the mortgage notes that were repaid in the second quarter of 2026 and the fees paid upon repayment. 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.

Previous wording

The gain of $3.1 million on derivative instruments for the three months ended March 31, 2026 and the loss of $3.9 million on derivative instruments for the three months ended March 31, 2025, 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 British Pounds Sterling (“GBP”) and EUR compared to the USD. For the three months ended March 31, 2026, the gain on derivative instruments consisted of unrealized gains of $3.5 million and realized losses of $0.4 million. For the three months ended March 31, 2025, the loss on derivative instruments consisted of unrealized losses of$3.3 million and realized losses of$0.6 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 $0.3 million on derivative instruments for the three months ended June 30, 2026 and the loss of $8.8 million on derivative instruments for the three months ended June 30, 2025, 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 British Pounds Sterling (“GBP”) and EUR compared to the USD. For the three months ended June 30, 2026, the loss on derivative instruments consisted of unrealized gains of $0.1 million and realized losses of $0.4 million. For the three months ended June 30, 2025, the loss on derivative instruments consisted of unrealized losses of$7.2 million and realized losses of$1.6 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

Unrealized Losses on Undesignated Foreign Currency Advances and Other Hedge Ineffectiveness

Current wording

Unrealized (Gains) Losses on Undesignated Foreign Currency Advances and Other Hedge Ineffectiveness

Previous wording

We recorded a loss of $6.4 million on undesignated foreign currency advances and other hedge ineffectiveness during the quarter ended March 31, 2025, related to the accelerated reclassification of amounts in accumulated other comprehensive loss to earnings. We did not record any such gains or lossesfor the three months ended March 31, 2026.

Current wording

We recorded a gain of $1.8 million and a loss of $6.3 million on undesignated foreign currency advances and other hedge ineffectiveness during the quarters ended June 30, 2026 and 2025, related to the accelerated reclassification of amounts in accumulated other comprehensive income to earnings.

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 stockholders, 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 $1.6 million and $3.3 million for the three months ended March 31, 2026 and 2025, 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 stockholders, 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 $4.8 million and $3.0 million for the three months ended June 30, 2026 and 2025, respectively.

Previous wording

General and administrative expenses were $12.1 million and $16.2 million for the three months ended March 31, 2026 and 2025, 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 decrease was primarily due to lower compensation costs and professional fees in the first quarter of 2026.

Current wording

General and administrative expenses were $24.0 million and $27.5 million for the six months ended June 30, 2026 and 2025, 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 decrease was primarily due to lower compensation costs and professional fees in the first six months of 2026.

Previous wording

During the three months ended March 31, 2026, we sold 11 properties (two Industrial and Distribution properties, seven Retail properties and two Office properties) and recorded a net gain of $7.9 million. During the three months ended March 31, 2026, we applied $4.6 million of previously received refundable buyer deposits, which had been recorded as a liability, to the consideration received upon sale of real estate. This amount is reflected as a noncash investing activity.

Current wording

During the six months ended June 30, 2026, we sold 22 properties (five Industrial & Distribution properties, 13 Retail properties and four Office properties) and recorded a net gain of $31.1 million. During the six months ended June 30, 2026, we applied $4.6 million of previously received refundable buyer deposits, which had been recorded as a liability, to the consideration received upon sale of real estate. This amount is reflected as a noncash investing activity.

Previous wording

During the three months ended March 31, 2026, net cash provided by operating activities was $39.7 million. Cash flows provided by operating activities during the three months ended March 31, 2026 reflect net loss of $5.1 million, adjusted for non-cash items of $67.3 million (primarily depreciation, amortization of intangibles, amortization of deferred financing costs, amortization of mortgage discounts, amortization of above- and below-market lease and ground 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, derivatives and other non-cash items). In addition, operating cash flow was impacted by lease incentive and commission payments of $2.4 million and a net decrease of $8.9 million in working capital items due to a decrease in accounts payable and accrued expenses of $12.2 million, a decrease in prepaid rent of $1.5 million and a decrease in prepaid expenses and other assets of $4.8 million.

Current wording

During the six months ended June 30, 2026, net cash provided by operating activities was $106.8 million. Cash flows provided by operating activities during the six months ended June 30, 2026 reflect net loss of $1.6 million, adjusted for non-cash items of $139.5 million (primarily depreciation, amortization of intangibles, amortization of deferred financing costs, amortization of mortgage discounts, amortization of above- and below-market lease and ground 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, derivatives, loss on extinguishment and modification of debt, impairments and other non-cash items). In addition, operating cash flow was impacted by lease incentive and commission payments of $4.4 million and a net increase of $9.3 million in working capital items due to an increase in accounts payable and accrued expenses of $3.6 million, a decrease in prepaid expenses and other assets of $7.1 million and a decrease in prepaid rent of $1.3 million.

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, derivatives and 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, derivatives, loss on extinguishment and modification of debt, impairments and 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

Net cash provided by investing activities during the three months ended March 31, 2026 of $70.0 million consisted of net proceeds from dispositions of $63.1 million and cash received from the multi-tenant disposition receivable of $8.5 million, which were partially offset by capital expenditures of $1.6 million.

Current wording

Net cash provided by investing activities during the six months ended June 30, 2026 of $157.6 million consisted of net proceeds from dispositions of $132.2 million and cash received from the multi-tenant disposition receivable of $29.0 million, which were partially offset by capital expenditures of $3.4 million and deposits for real estate investments of $0.3 million.

Previous wording

Net cash provided by investing activities during the three months ended March 31, 2025 of $900.7 million consisted of net proceeds from dispositions of $910.5 million, principally from the properties sold in the first quarter of 2025 that were included in the Multi-Tenant Retail Portfolio, which were partially offset by capital expenditures of $9.8 million.

Current wording

Net cash provided by investing activities during the six 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 used in financing activities of $165.2 million during the three months ended March 31, 2026 was a result of net paydowns of borrowings under our Revolving Credit Facility of $28.1 million, net payments of principal on mortgage notes payable of $44.9 million, $38.4 million of Common Stock repurchases, dividends paid to common stockholders of $41.3 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, and dividends paid to holders of our Series E Preferred Stock of $2.1 million.

Current wording

Net cash used in financing activities of $289.0 million during the six months ended June 30, 2026 was a result of net additional borrowings under our Revolving Credit Facility of $163.1 million, net payments of principal on mortgage notes payable of $294.2 million, $49.5 million of Common Stock repurchases, dividends paid to common stockholders of $81.9 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, and dividends paid to holders of our Series E Preferred Stock of $4.2 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

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, 2026 and December 31, 2025, we had cash and cash equivalents of $125.5 million and $180.1 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, 2026 and December 31, 2025, we had cash and cash equivalents of $153.6 million and $180.1 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, 2026, cash generated from operations covered 76% of our dividends paid. 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

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, 2026, our cash generated from operations was sufficient to fully cover the total dividends paid on our Common Stock and Preferred Stock. 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.