From time to time, the Company is a party to various litigation matters incidental to the conduct of the Company’s business. While the resolution of such matters cannot be predicted with certainty, based on currently available information, the Company does not believe that the final outcome of any of these matters will have a material effect on its consolidated financial position, results of operations, or liquidity.

In connection with ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company is not aware of any non-compliance, liability, claim, or other environmental condition that would have a material effect on its consolidated financial position, results of operations, or liquidity.

As of September 30, 2026, the Company has commitments to fund 13 build-to-suit transactions with remaining obligations of $350.7 million expected to fund in multiple draws through November 2027, using a combination of available cash on hand and Revolving Credit Facility borrowings. Rent is contractually scheduled to commence when the properties reach substantial completion and are made available for use by the tenant, which is expected to occur at various dates between October 2026 and November 2027. Additionally, the Company has a $6.5 million remaining commitment to complete infrastructure improvements at a property acquired during 2026.

In July 2026, in connection with our option to purchase land to be developed (see Note 3), the Company entered into a corporate guaranty of the project entity’s payment obligations in support of the project’s development with a maximum potential future payment of $28.8 million plus enforcement costs. The Company would be required to perform upon the project entity’s failure to pay, retains recourse against the project entity for any amounts paid, and has recognized no liability under the guaranty as of September 30, 2026.

The Company is a party to a tax protection agreement with the contributing members of an UPREIT transaction and a second tax protection agreement entered into in connection with the Company’s internalization. The tax protection agreements require the Company to indemnify the beneficiaries in the event of a sale, exchange, transfer, or other disposal of the contributed property, and in the case of the tax protection agreement entered into in connection with the Company’s internalization, the entire Company, in a taxable transaction that would cause such beneficiaries to recognize a gain that is protected under the agreements, subject to certain exceptions. The Company is required to allocate an amount of nonrecourse liabilities to each beneficiary that is at least equal to the minimum liability amount, as contained in the agreements. The minimum liability amount and the associated allocation of nonrecourse liabilities are calculated in accordance with applicable tax regulations, are completed at the OP level, and are not probable. Therefore, there is no impact to the Condensed Consolidated Financial Statements. Based on values as of September 30, 2026, taxable sales of the applicable properties would trigger liability under the agreements of approximately $16.4 million. Based on information available, the Company does not believe that the events resulting in damages as detailed above have occurred or are likely to occur in the foreseeable future.

In the normal course of business, the Company enters into various types of commitments to purchase real estate properties. These commitments are generally subject to the Company’s customary due diligence process and, accordingly, a number of specific conditions must be met before the Company is obligated to purchase the properties.

The Company is a lessee under non-cancelable operating and finance leases associated with its corporate headquarters and other office spaces as well as ground leases. The Company’s obligations under leases primarily consist of a lease for the Company’s corporate office space, which expires in March 2034 and was determined to be an operating lease. The lease contains two five-year extension options, exercisable at the Company’s discretion, that are not reasonably certain to be exercised, and are therefore excluded from our calculation of the lease liability. The remaining lease obligations primarily consist of ground leases that, in accordance with the terms of our leases, are typically required to be reimbursed by our tenants. The Company remains primarily responsible for ground leases in the event a tenant is unable to pay. The weighted average discount rate on our operating and finance leases is 8.4%. The weighted average years remaining on our operating and finance lease liabilities is 27.5 years.


(in thousands)	Financial Statement Presentation	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
		2026		2025		2026		2025
Operating lease costs:
Office leases	General and administrative	$	252	$	215	$	755	$	755
Ground leases	Property and operating expense	81		40		244		106
Ground leases - development properties	Property under development	—		55		21		166
Variable lease costs - ground leases	Property and operating expense	16		17		43		54
Financing lease costs:
Amortization of right-of-use assets	Depreciation and amortization	14		14		41		36
Interest expense on lease liabilities	Interest expense	69		68		206		180
Total lease cost		$	432	$	409	$	1,310	$	1,297


(in thousands)	Operating Leases		Financing Leases
Remainder of 2026	$	327	$	54
2027	1,251		218
2028	1,134		218
2029	1,174		238
2030	1,202		245
Thereafter	14,632		18,061
Total undiscounted lease payments	19,720		19,034
Present value adjustment for remaining lease payments	(10,622)		(16,262)
Total lease liability	$	9,098	$	2,772