Note 5 – Leases

Lessor Disclosures

Lessee Disclosures

As of June 30, 2026 and December 31, 2025, the Company has one ground lease which is classified as an operating lease. As of June 30, 2026, and December 31, 2025, the outstanding amount of right of use (“ROU”) assets was $10.1 million and $10.2 million, respectively, which is included in prepaid expenses, deferred expenses and other assets, net on the condensed consolidated balance sheets. As of June 30, 2026, and December 31, 2025, respectively, the outstanding lease liabilities was $0.6 million, which is included in accounts payable, accrued expenses and other liabilities on the condensed consolidated balance sheets.

The Company recorded rent expense related to leased corporate office space of $56.6 thousand and $0.5 million for the three months ended June 30, 2026 and 2025, respectively, and $0.1 million and $0.9 million for the six months ended June 30, 2026 and 2025, respectively. Such rent expense is classified within general and administrative expenses on the condensed consolidated statements of operations.

On July 28, 2025, the Company entered into a one year extension for a portion of its office space at a cost of $19.0 thousand per month. The Company elected a short term lease exemption permissible under ASC 842 as the lease has no options to additionally extend and there are no costs associated with the end of the lease.

On July 27, 2026, the Company entered into an amendment to its office lease which provides for a one year extension of its office space at a cost of $20.2 thousand per month. The Company elected a short term lease exemption permissible under ASC 842 as the lease has no options to additionally extend and there are no costs associated with the end of the lease.

In addition, the Company recorded ground rent expense of approximately $11.2 thousand for the three months ended June 30, 2026 and 2025, respectively, and $22.5 thousand for the six months ended June 30, 2026 and 2025, respectively. Such ground rent expense is

classified within property operating expenses on the condensed consolidated statements of operations. The ground lease requires the Company to make fixed annual rental payments and expires in 2073 assuming all extension options are exercised.

As of June 30, 2026, the Company expects to make cash payments on operating leases of $41.3 thousand in 2026, $45.0 thousand in 2027, $45.0 thousand in 2028, $45.0 thousand in 2029, $45.0 thousand in 2030, $45.0 thousand in 2031, and $1.9 million for the periods thereafter. The present value discount is ($0.6) million.