The Company’s condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of the condensed consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities and contingencies as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company evaluates its assumptions and estimates on an ongoing basis. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Additionally, application of the Company’s accounting policies involves exercising judgments regarding assumptions as to future uncertainties. Actual results may differ from these estimates under different assumptions or conditions.

The condensed consolidated financial statements of the Company include the accounts of Hines Global and the Operating Partnership (over which the Company exercises financial and operating control). All intercompany balances and transactions have been eliminated in consolidation.

The Company holds investments in real estate-related securities, which consist of common equities, preferred equities and debt investments of publicly traded REITs. The Company has elected to classify these investments as trading securities and carry such investments at fair value. These assets are valued on a recurring basis. The Company earns interest and dividend income monthly related to these securities, which is recorded in other income and expenses in the Company’s condensed consolidated statements of operations and comprehensive income (loss). The table below presents the effects of the changes in fair value of the Company’s real estate-related securities in the Company’s condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2026 and 2025 (in thousands):


	Gain (Loss) on Investments in Real Estate-Related Securities
	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Unrealized gain (loss)	$	15,858	$	(2,271)	$	16,967	$	(4,565)
Realized gain (loss)	1,352		(539)		2,302		(702)
Total gain (loss) on real estate-related securities	$	17,210	$	(2,810)	$	19,269	$	(5,267)

Tenant and other receivables consists primarily of base rents, tenant reimbursements and receivables attributable to straight-line rent, and are carried at cost. As of June 30, 2026 and December 31, 2025, the Company had receivables related to base rents and tenant reimbursements of $15.2 million and $9.2 million, respectively. As of June 30, 2026 and December 31, 2025, the Company had other receivables balances of $10.4 million and $9.9 million, respectively.

Straight-line rent receivables were $82.1 million and $69.5 million as of June 30, 2026 and December 31, 2025, respectively. Straight-line rent receivable consists of the difference between the tenants’ rents calculated on a straight-line basis from the date of acquisition or lease commencement over the remaining terms of the related leases and the tenants’ actual rents due under the lease agreements and is included in tenant and other receivables in the accompanying condensed consolidated balance sheets. Individual leases are assessed for collectability and upon the determination that the collection of rents is not probable, accrued rent and accounts receivable are reduced as an adjustment to rental revenues. Revenue from leases where collection is deemed to be less than probable is recorded on a cash basis until collectability is determined to be probable. Further, we assess whether operating lease receivables, at a portfolio level, are appropriately valued based upon an analysis of balances outstanding, historical collection levels and current economic trends. The uncollectible portion of the portfolio is recorded as an adjustment to rental revenues.


	June 30, 2026			December 31, 2025


Prepaid insurance	$	3,954		$	1,267
Prepaid property taxes	3,833			3,477

Deferred tax assets (1)	29,123			25,318
Operating lease right-of-use assets, net	21,746			27,030
Other	10,290		(2)	10,764		(3)
Other assets	$	68,946		$	67,856

The Company has ground lease agreements in which it is the lessee for land at certain of its investment properties. As of June 30, 2026, three of such agreements were accounted for as operating leases and one such agreement was accounted for as a financing lease. As of June 30, 2026, the weighted average remaining lease term of the Company’s operating leases and financing leases was 119 years and 116 years, respectively.

The Company’s estimate of the amount of the right-of-use assets and lease liabilities recorded in the Company’s condensed balance sheets included assumptions for the discount rate, which is based on the incremental borrowing rate of the lease contract. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a term similar to the lease. Since the terms of the ground leases are much longer than those of a typical borrowing, the Company derived the incremental borrowing rate at the inception of each lease as the spread in a current financing quote for the property. If a current financing quote was not available, the Company referenced the borrowing rate on its revolving credit facility, plus the applicable base rate corresponding to the longest term available in the base rate market. The Company has assumed weighted average incremental borrowing rates of 6.1% for its operating leases and 3.4% for its financing lease.


	June 30, 2026		December 31, 2025
Operating lease right-of-use assets, net of accumulated amortization (1)	$	21,746	$	27,030
Operating lease liabilities (2)	$	19,046	$	20,903

Financing lease right-of-use assets, net of accumulated amortization (3)	$	15,281	$	15,348
Financing lease liabilities (4)	$	17,549	$	17,523


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Operating lease costs (1)	$	656	$	152	$	1,321	$	322
Financing lease costs
Amortization of financing lease assets (1)	$	33	$	33	$	66	$	66
Interest expense on lease liabilities (2)	147		147		295		294
Total lease costs	$	836	$	332	$	1,682	$	682

The tables below provide additional information regarding the Company’s lease liabilities for the period from July 1, 2026 through December 31, 2026 and for each of the years ending December 31, 2027 through December 31, 2031 and for the period thereafter (in thousands):


	Lease Payments
	Operating Leases		Financing Leases
July 1, 2026 through December 31, 2026	$	528	$	270
2027	1,149		540
2028	1,149		540
2029	1,149		540
2030	1,149		540
2031	1,149		540
Thereafter	128,134		68,192
Total	$	134,407	$	71,162

Ground Lease Liability	$	19,046	$	17,549
Undiscounted Excess Amount	$	115,361	$	53,613

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Disaggregation of Income Statement Expenses. ASU 2024-03 requires public entities to provide additional disclosures in the notes to the financial statements of certain expense categories which are included in expense line items disclosed on the face of the income statement. Specifically, an entity should provide disclosures in a tabular format for each line item on the income statement which contains any of the following expenses: purchases of inventory, employee compensation, depreciation, intangible asset amortization, and/or depreciation, depletion, and amortization. ASU 2024-03 also requires an entity to disclose total selling expenses. ASU 2024-03 may be adopted on a prospective or retrospective basis. The standard will be effective for annual periods beginning after December 31, 2027. The Company is evaluating the impact that the adoption of the new standard will have on our consolidated financial statements and footnotes.

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements, which clarifies and expands certain aspects of hedge accounting, primarily related to the eligibility and application of cash flow hedge accounting, to better align financial reporting with an entity’s risk management activities. The amendments are effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact that the adoption of the new standard will have on our consolidated financial statements and footnotes.

In December 2025,the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow Scope Improvements which clarifies and consolidates the guidance related to the scope, form and content, and disclosure requirements for interim financial reporting. The amendments are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact that the adoption of the new standard will have on our consolidated financial statements and footnotes.