The Company acquires, owns, and manages primarily single-tenant, investment-grade net-leased real estate. The Company owned 359 properties in 34 states as of June 30, 2025. As of June 30, 2025, the Company’s portfolio was 99.1% leased and is occupied by 39 different primarily national investment-grade necessity-based retail tenants, and is additionally diversified by industry, geographic region, and lease term.

Real estate activity for the six months ended June 30, 2025 is composed of the following:


	Six months ended June 30, 2025
Balance - beginning of year	$	1,194,937,000
Acquisitions (a)		43,295,000
Dispositions		(26,388,000	)
Improvements		376,000
Balance - end of period	$	1,212,220,000

Accumulated depreciation
Balance - beginning of year	$	(89,628,000	)
Dispositions		2,762,000
Depreciation expense		(15,549,000	)
Balance - end of period	$	(102,415,000	)

Net book value - end of period	$	1,109,805,000

The Company acquired the following properties for cash from unaffiliated entities during the six months ended June 30, 2025:


Location	Acquisition date	Purchase price
Branson, MO	3/18/2025	$	2,602,000
Bellefontaine, OH	3/26/2025	$	4,781,000
Marion, OH	4/15/2025	$	5,101,000
Noblesville, IN	4/23/2025	$	8,549,000
Texarkana, AR	6/24/2025	$	10,995,000
Garden City, KS	6/25/2025	$	3,909,000

Per the asset management agreement, the Company paid a 1.0% acquisition fee on these property acquisitions totaling $0.4 million to ExchangeRight at the time of the acquisition (see Note 10. Related and Affiliated Party Transactions for further details).

On April 4, 2025, the Company, through the Operating Partnership, acquired four properties for a total purchase price of $7.3 million, that were previously managed by the Sponsor on behalf of its investor. There were no acquisition fees related to this portfolio acquisition. In connection with this acquisition, the Operating Partnership issued 267,886 OP Units totaling $7.3 million.

On May 7, 2025, the Company, through the Operating Partnership, acquired one property for a total purchase price of $2.1 million, that was previously managed by the Sponsor on behalf of its investor. There were no acquisition fees related to this acquisition. In connection with this acquisition, the Operating Partnership issued 77,572 OP Units totaling $2.1 million.

An allocation of the purchase price, including acquisition costs, for all acquisitions during the six months ended June 30, 2025 are as follows:


Land	$	6,067,000
Building		33,127,000
Building and site improvements		4,101,000
Lease in-place intangible assets		4,340,000
Lease above-market intangible assets		53,000
		47,688,000
Liabilities assumed:
Lease below-market intangible liabilities		(2,298,000	)
Purchase price (including acquisition costs)	$	45,390,000

On April 14, 2025, the Company contributed six properties into a wholly-owned DST and simultaneously sold 100% of its ownership interest in the DST to ExchangeRight for a total sales price of $12.2 million, recognizing a gain of $2.0 million, which is included in gain on sales, net on the condensed consolidated statements of operations and comprehensive income (loss). In connection with the disposition, the Operating Partnership entered into a guaranty agreement with this wholly-owned DST of which ExchangeRight serves as the master lessee via a master lease agreement. In this guaranty agreement, the Operating Partnership is the guarantor on the master lease agreement entered into between this DST and ExchangeRight as the master lessee. The guaranty is for the full term of the master lease, which is 20 years. Under this guaranty, the Operating Partnership guaranties the payment of all obligations and liabilities of the master lessee as outlined in the master lease agreement. The contractual payments under this lease agreement totaled $27.4 million, $27.1 million of which was still outstanding as of June 30, 2025. The Company has not been obligated to make any payments under this guaranty as of the date of this report (see Note 10. Related and Affiliated Party Transactions for further details).

On June 12, 2025, the Company sold one property for cash to an unaffiliated entity for $0.7 million, recognizing a loss of $0.4 million, which is included in gain on sales, net on the condensed consolidated statements of operations and comprehensive income (loss).

On June 17, 2025, the Company contributed seven properties into a wholly-owned DST and simultaneously sold 100% of its ownership interest in the DST to ExchangeRight for a total sales price of $16.3 million, recognizing a gain of $3.7 million, which is included in gain on sales, net on the condensed consolidated statements of operations and comprehensive income (loss). In connection with the disposition, the Operating Partnership entered into a guaranty agreement with this wholly-owned DST of which ExchangeRight serves as the master lessee via a master lease agreement. In this guaranty agreement, the Operating Partnership is the guarantor on the master lease agreement entered into between this DST and ExchangeRight as the master lessee. The guaranty is for the full term of the master lease, which is 20 years. Under this guaranty, the Operating Partnership guaranties the payment of all obligations and liabilities of the master lessee as outlined in the master lease agreement. The contractual

payments under this lease agreement totaled $35.0 million, $34.9 million of which was still outstanding as of June 30, 2025. The Company has not been obligated to make any payments under this guaranty as of the date of this report (see Note 10. Related and Affiliated Party Transactions for further details).

Substantially all of the Company’s tenants are subject to net-lease agreements where the tenant is generally responsible for minimum monthly rent and actual property operating expenses incurred, including property taxes, insurance, and maintenance. In addition, certain of the Company’s tenants are subject to future rent increases based on fixed amounts or, in limited cases, increases in the consumer price index. In addition, certain leases provide for additional rent calculated as a percentage of the tenants’ gross sales above a specified level. The Company recorded no percentage rent revenue for the three and six months ended June 30, 2025 and 2024. Certain of the Company’s properties are subject to leases under which it retains responsibility for specific costs and expenses of the property. The Company’s leases typically provide the tenant one or more multi-year renewal options to extend their leases, subject to generally the same terms and conditions, including rent increases.

All lease-related income is reported as a single line item, rental revenue, in the condensed consolidated statements of operations and comprehensive income (loss). Rental revenue is comprised of the following:


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Base rents	$	18,804,000	$	17,039,000	$	37,328,000	$	34,060,000
Tenant reimbursables		2,245,000		2,124,000		4,845,000		4,730,000
Straight-line rent adjustments		201,000		199,000		435,000		417,000
Above/below market lease amortization, net		626,000		701,000		1,236,000		1,325,000
Total rental revenue	$	21,876,000	$	20,063,000	$	43,844,000	$	40,532,000

As of June 30, 2025, the Company’s portfolio is occupied by 39 different primarily national investment-grade necessity-based retail tenants, and is additionally diversified by industry, geographic region, and lease term. The following tenants contributed more than 10% of contractual base rents during the six months ended June 30, 2025: