From time to time, the Company is a party to various litigation matters incidental to the conduct of the Company’s business. While the resolution of such matters cannot be predicted with certainty, based on currently available information, the Company does not believe that the final outcome of any of these matters will have a material effect on its consolidated financial position, results of operations, or liquidity.

In connection with ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company is not aware of any non-compliance, liability, claim, or other environmental condition that would have a material effect on its consolidated financial position, results of operations, or liquidity.

As of June 30, 2025, the Company has commitments to fund six build-to-suit transactions with remaining obligations of $238.8 million expected to fund in multiple draws through August 2026, using a combination of available cash on hand and revolving credit facility borrowings. Rent is contractually scheduled to commence when the properties reach substantial completion and are made available for use by the tenant, which is expected to occur at various dates between July 2025 and August 2026.

The Company is a party to two separate tax protection agreements with the contributing members of two distinct UPREIT transactions and a third tax protection agreement entered into in connection with the Company’s internalization. The tax protection agreements require the Company to indemnify the beneficiaries in the event of a sale, exchange, transfer, or other disposal of the contributed property, and in the case of the tax protection agreement entered into in connection with the Company’s internalization, the entire Company, in a taxable transaction that would cause such beneficiaries to recognize a gain that is protected under the agreements, subject to certain exceptions. The Company is required to allocate an amount of nonrecourse liabilities to each beneficiary that is at least equal to the minimum liability amount, as contained in the agreements. The minimum liability amount and the associated allocation of nonrecourse liabilities are calculated in accordance with applicable tax regulations, are completed at the OP level, and are not probable. Therefore, there is no impact to the Condensed Consolidated Financial Statements. Based on values as of June 30, 2025, taxable sales of the applicable properties would trigger liability under the agreements of approximately $20.4 million. Based on information available, the Company does not believe that the events resulting in damages as detailed above have occurred or are likely to occur in the foreseeable future.

In the normal course of business, the Company enters into various types of commitments to purchase real estate properties. These commitments are generally subject to the Company’s customary due diligence process and, accordingly, a number of specific conditions must be met before the Company is obligated to purchase the properties.

As described in Note 2, the Company is a lessee under non-cancelable operating and finance leases associated with its corporate headquarters and other office spaces as well as ground leases. The Company’s obligations under leases primarily consist of a lease for the Company’s corporate office space, which expires in October 2033 and was determined to be an operating lease. The lease contains two five-year extension options, exercisable at the Company’s discretion, that are not reasonably certain to be exercised, and are therefore excluded from our calculation of the lease liability. The remaining lease obligations primarily consist of ground leases that, in accordance with the terms of our leases, are typically required to be reimbursed by our tenants. The Company remains primarily responsible for ground leases in the event a tenant is unable to pay. The weighted average discount rate on our operating and finance leases is 8.3%. The weighted average years remaining on our operating and finance lease liabilities is 27.2 years.


(in thousands)	Financial Statement Presentation	For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2025		2024		2025		2024
Operating lease costs:
Office leases	General and administrative	$	288	$	249	$	540	$	504
Ground leases	Property and operating expense	33		33		66		76
Ground leases - development properties	Property under development	55		—		111		—
Variable lease costs - ground leases	Property and operating expense	17		16		37		28
Financing lease costs:
Amortization of right-of-use assets	Depreciation and amortization	14		—		23		—
Interest expense on lease liabilities	Interest expense	67		—		112		—
Total lease cost		$	474	$	298	$	889	$	608


(in thousands)	Operating Leases		Financing Leases
Remainder of 2025	$	650	$	109
2026	1,306		218
2027	1,251		218
2028	1,134		218
2029	1,174		238
Thereafter	15,834		18,306
Total undiscounted lease payments	21,349		19,307
Present value adjustment for remaining lease payments	(11,461)		(16,605)
Total lease liability	$	9,888	$	2,702