Shareholders' Equity and Share-Based Compensation (Notes)

Preferred Stock. The Company's articles of incorporation authorize the issuance of up to 50,000,000 shares

of preferred stock. During the three months ended September 30, 2026, the Company’s Board of Directors

designated 5,520,000 shares for issuance of 9.375% Series D Fixed-Rate Cumulative Redeemable Preferred Stock

and subsequently sold 4,800,000 shares through a public offering for which it received proceeds of $116 million, net

of $4 million in broker commissions and other expenses. The Series D Preferred Stock has no stated maturity, is not

subject to any sinking fund or mandatory redemption, and will remain outstanding indefinitely unless redeemed,

repurchased, or converted into common stock pursuant to the terms of the Series D Preferred Stock. On or after

October 15, 2031, the Series D Preferred Stock may be redeemed at any time and from time to time at the

Company's option at a cash redemption price of $25.00 per share plus any accumulated and unpaid dividends. The

Series D Preferred Stock will pay a quarterly cumulative cash dividend of 9.375% of its $25.00 liquidation value per

share beginning on January 15, 2027.

The Company’s Board of Directors has designated 6,600,000 shares of the Company’s preferred stock for

issuance as Series C Preferred Stock, of which the Company has 4,460,000 of such shares outstanding as of

September 30, 2026. The Series C Preferred Stock has no stated maturity, is not subject to any sinking fund or

mandatory redemption, and will remain outstanding indefinitely unless redeemed, repurchased, or converted into

common stock pursuant to the terms of the Series C Preferred Stock. As of April 15, 2025, the Series C Preferred

Stock may be redeemed at any time and from time to time at the Company's option at a cash redemption price of

$25.00 per share plus any accumulated and unpaid dividends. In addition, the Series C Preferred Stock now pays a

quarterly cumulative cash dividend at a percentage of its $25.00 liquidation value per share equal to 3-month term

SOFR plus the statutorily prescribed tenor spread adjustment of 0.26161% in addition to the spread pursuant to the

terms of the Series C Preferred Stock of 5.461% for a total spread of 5.723%. The Company paid a quarterly

dividend of $0.60793 per share of Series C Preferred Stock on October 15, 2026 to shareholders of record as of

Common Stock. During the nine months ended September 30, 2026, the Company issued 83,119,388 shares

of its common stock through its at-the-market (“ATM”) program at an aggregate value of $1.1 billion, net of broker

commissions and fees. The Company declared monthly dividends on its common stock totaling $0.51 for the three

months ended September 30, 2026. The Company’s timing, frequency, and amount of dividends declared on its

common stock are determined by its Board of Directors. When declaring dividends, the Board of Directors considers

the Company’s taxable income, management’s view on long-term returns, the REIT distribution requirements of the

Tax Code, and maintaining compliance with dividend requirements of the Series C Preferred Stock and Series D

Preferred Stock, along with other factors that the Board of Directors may deem relevant from time to time.

Share-Based Compensation. The following table presents a rollforward of share-based awards for the

periods indicated:


	Nine Months Ended
	September 30,
	2026		2025
Type of Award	Shares	Weighted Average Grant Date Fair Value Per Share	Shares	Weighted Average Grant Date Fair Value Per Share
Restricted stock:
Awards outstanding, beginning of period	25,105	$12.34	93,595	$12.78
Granted	—	—	—	—
Vested	(16,809)	12.26	(66,860)	12.96
Awards outstanding, end of period	8,296	$12.50	26,735	$12.34

Target RSUs: (1)
Awards outstanding, beginning of period	738,223	$12.79	463,070	$12.64
Granted	569,942	13.59	399,096	12.78
Vested	(436,053)	12.63	(227,483)	12.69
Awards outstanding, end of period	872,112	$13.40	634,683	$12.71

Target PSUs: (2)
Awards outstanding, beginning of period	693,414	$12.26	482,409	$12.32
Granted	590,231	13.68	371,282	12.05
Vested	(129,870)	12.26	—	—
Forfeited	(60,129)	13.68	—	—
Awards outstanding, end of period	1,093,646	$12.95	853,691	$12.20

(1)The number of RSUs shown represent the target number of awards. Actual number of shares that will potentially settle may

range from 0% if the recipient’s service-based vesting condition is not met to 100% if the service-based vesting condition is

met.

(2)The number of PSUs shown represent the target number of awards. Actual number of shares that will potentially settle may

range from 0% to 200% based on the achievement of the performance goals defined in each grant award.

Restricted stock granted to employees generally vests in equal installments over a period of 3 years. RSUs

generally vest in equal installments over a period of 3 years if granted to employees and one year if granted to a non-

employee director. PSUs cliff vest based on performance results measured over a period of 3 years. The Company

expects 89% of the remaining target PSUs outstanding as of September 30, 2026 will be settled on their vesting

dates compared to 134% as of June 30, 2026. As a result, the Company recorded a net credit of $(2) million to

share-based compensation expense for the three months ended September 30, 2026. Total share-based compensation

expense for the three months ended September 30, 2025 was $3 million. Total share-based compensation expense

was $8 million for the nine months ended September 30, 2026 and September 30, 2025. The following table

discloses the Company’s remaining compensation expense related to stock awards it has granted as of September 30,

2026, which will be amortized over the period disclosed:


	September 30, 2026
($s in thousands)	Remaining Compensation Cost	WAVG Period of Recognition
Restricted stock	$42	0.4 years
RSUs	5,948	2.0 years
PSUs	3,361	1.9 years
Total	$9,351	1.9 years

The following table discloses the dividends payable to the Company’s shareholders for common and

preferred stock as well as to its employees and directors for DERs related to its outstanding RSUs and PSUs as of

the dates indicated:


Dividends Payable	September 30, 2026	December 31, 2025
($s in thousands)
RSU DERs	$1,628	$1,578
PSU DERs	2,741	3,423
Accrued DERs	4,369	5,001

Common stock dividends	$43,850	$29,877
Preferred stock dividends	2,361	2,293
Accrued dividends	46,211	32,170

Total dividends payable	$50,580	$37,171