10. NON-CONTROLLING INTERESTS

Non-controlling interests are comprised of OP Units. The OP Units are economically equivalent to the Company's common stock and, subject to certain restrictions, are redeemable into the Company's common stock at the option of the respective unit holders on a one-for-one basis. Holders of the OP Units do not have voting rights in the Company. The OP Units are redeemable at the option of the holder, in which case however, the Company may issue common stock or cash, at the Company’s election. Therefore, the OP Units are considered to be permanent equity. Redemption of OP Units held by non-controlling interest holders are recorded by reducing non-controlling interest at historical cost basis with a corresponding increase in common stock and additional paid-in capital.

For the three months ended June 30, 2026 and 2025, there were 255,565 OP Units and 2,898,389 OP Units redeemed, respectively, which the Company settled by issuing 255,565 and 2,898,389 shares of common stock, respectively.

For the six months ended June 30, 2026 and 2025, there were 552,521 OP Units and 3,127,589 OP Units redeemed, respectively, which the Company settled by issuing 552,521 and 3,127,589 shares of common stock, respectively.