We have interests in various real estate joint ventures that are evaluated for consolidation under the variable interest entity (“VIE”) model or the voting interest model, depending on the facts and circumstances of each joint venture. For our unconsolidated affiliates that are evaluated under the VIE model, we determined that we hold variable interests, but we are not the primary beneficiary because we do not have the power to direct the activities that most significantly impact the entities’ economic performance. Accordingly, these entities are not consolidated. For our unconsolidated affiliates that are evaluated under the voting interest model, we determined through evaluation of our voting rights that control does not rest with us. Accordingly, these entities are not consolidated. For our consolidated affiliates that are evaluated under the VIE model, we determined that we hold variable interests, and we are the primary beneficiary because we have the power to direct the activities that most significantly affect the entities’ economic performance. Accordingly, these entities are consolidated.

Our unconsolidated joint ventures are accounted for under the equity method of accounting because we have the ability to exercise significant influence over the operating and financial policies of the entities. Our maximum exposure to loss from our unconsolidated VIEs is generally limited to the carrying value of our investments and any loans or other advances we have provided to the joint ventures. The assets of these unconsolidated VIEs may be used only to settle their own obligations, and their creditors have no recourse to our wholly owned assets.

Unconsolidated Affiliate

Location

Ownership Interest

VIE
(Y/N)

Carrying Value as of

June 30,
2026

Granite Park Six JV, LLC (1)

Dallas

50.0%

42,283

GPI 23Springs JV, LLC (2)

Dallas

50.0%

107,588

M+O JV, LLC

Dallas

50.0%

180,459

Midtown East Tampa, LLC (3)

Tampa

50.0%

50,452

Brand/HRLP 2827 Peachtree LLC (4)

Atlanta

50.0%

61,829

Plaza Colonnade, Tenant-in-Common

Kansas City

50.0%

4,317

446,928

(1)During the second quarter of 2026, Granite Park Six JV, LLC (“Granite Park Six joint venture”) obtained a secured loan for up to $100.0 million with a maturity date of April 2028 (but can be extended for one additional year at the joint venture’s option assuming no defaults have occurred). In connection with this loan, the Granite Park Six joint venture obtained an interest rate hedge contract that effectively fixed the overall interest rate at 5.9%. As of June 30, 2026, $86.6 million was drawn on this loan. The joint venture used the net proceeds from the secured loan to redeem the preferred equity that we contributed during the first quarter of 2026 and distributed the remainder equally to us and our partner, Granite Properties (“Granite”). As a result of these reconsideration events, the Granite Park Six joint venture is no longer a VIE since it now has sufficient equity at risk. This joint venture is now evaluated under the voting interest model, and the entity remains unconsolidated.

As of June 30, 2026, our consolidated VIEs consisted of the following: HRLP Bloc 83, L.P. (“Bloc 83 joint venture”) in Raleigh in which we own a 10.0% interest (but retain an option to increase our ownership interest to 50.0% in the future), Terraces JV, LLC (“Terraces joint venture”) in Dallas in which we own an 80.0% interest and HRLP MTW, LLC (“Midtown West joint venture”) in Tampa in which we own an 80.0% interest. The assets of these consolidated VIEs may be used only to settle their own obligations, and their creditors have no recourse to our wholly owned assets.

During the first quarter of 2026, we acquired Bloc83, a two-building, 492,000 square foot mixed-use asset in CBD Raleigh, through the formation of the Bloc 83 joint venture with the North Carolina Investment Authority (“NCIA”). The joint venture’s planned total investment of $210.5 million, which includes planned near-term building improvements and transaction costs, has been or will be funded with $21.0 million of common equity contributed by us and $189.5 million of common equity contributed by the NCIA. The assets acquired and liabilities assumed were recorded at relative fair value as determined by management based on information available at the acquisition date and on current assumptions as to future operations.


	June 30, 2026

Net real estate assets	$	173,158

Cash and cash equivalents	$	8,782
Restricted cash	$	5,388
Accounts receivable	$	267
Accrued straight-line rents receivable	$	546
Deferred leasing costs, net	$	28,111


Accounts payable, accrued expenses and other liabilities	$	9,405

During the first quarter of 2026, we expanded our Dallas market presence by acquiring The Terraces, a 173,000 square foot office building in the Preston Center BBD of Dallas, through the formation of the Terraces joint venture with Granite. The joint venture’s planned total investment of $109.3 million, which includes planned near-term building improvements and transaction costs, has been or will be funded with $64.3 million of preferred equity contributed by us, $36.0 million of common equity contributed by us and $9.0 million of common equity contributed by Granite. The preferred equity contributed by us is entitled to receive monthly distributions from available cash at a rate of 5.75%. The assets acquired and liabilities assumed were recorded at relative fair value as determined by management based on information available at the acquisition date and on current assumptions as to future operations.


	June 30, 2026

Net real estate assets	$	93,661

Cash and cash equivalents	$	3,600

Accounts receivable	$	536
Accrued straight-line rents receivable	$	655
Deferred leasing costs, net	$	13,178


Accounts payable, accrued expenses and other liabilities	$	5,713


	June 30, 2026		December 31, 2025

Net real estate assets	$	55,302	$	56,299

Cash and cash equivalents	$	1,936	$	1,361

Accounts receivable	$	67	$	203
Accrued straight-line rents receivable	$	5,165	$	5,254
Deferred leasing costs, net	$	2,038	$	2,211
Prepaid expenses and other assets, net	$	83	$	124
Mortgages and notes payable, net	$	43,912	$	44,059
Accounts payable, accrued expenses and other liabilities	$	1,355	$	1,170