EX-99.2

EX-99.2 3 bnl-ex99_2.htm EX-99.2 EX-99.2

Exhibit 99.2

toneet Lease, Inc. (NYSE: BNL) is a Real Estate Investment Trust (REIT) that acquires, owns, and manages single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. www.broadstone.com

Table of Contents


Section	Page
About the Data	3
Company Overview	4
Quarterly Financial Summary	5
Balance Sheet	6
Income Statement Summary	7
Funds From Operations (FFO), Core Funds From Operations (Core FFO), and Adjusted Funds From Operations (AFFO)	8
Lease Revenues Detail	9
Capital Structure	10
Equity Rollforward	11
Debt Outstanding	12
Interest Rate Swaps	13
EBITDA, EBITDAre, and Other Non-GAAP Operating Measures	14
Net Debt Metrics & Covenants	15
Debt & Swap Maturities	16
Investment Activity	17
Transitional Capital & Built-to-Suit Development Projects	18
Dispositions	19
Portfolio at a Glance: Key Metrics	20
Diversification: Tenants and Brands	21-24
Diversification: Property Type	25-26
Key Statistics by Property Type	27
Diversification: Tenant Industry	28
Diversification: Geography	29
Lease Expirations	30
Portfolio Occupancy	31
Definitions and Explanations	32-33

About the Data

This data and other information described herein are as of and for the three months ended December 31, 2024 unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should be read in conjunction with Broadstone Net Lease, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2024, including the financial statements and the management’s discussion and analysis of financial condition and results of operations sections.

Forward Looking Statements

Information set forth herein contains forward-looking statements, which reflect our current views regarding our business, financial performance, growth prospects and strategies, market opportunities, and market trends. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “would be,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. All of the forward-looking statements herein are subject to various risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, performance, and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from such forward-looking statements. These factors include, but are not limited to, risks and uncertainties related to general economic conditions, including but not limited to increases in the rate of inflation and/or interest rates, local real estate conditions, tenant financial health, and property acquisitions and the timing of these investments and acquisitions. These and other risks, assumptions, and uncertainties are described in our filings with the SEC, which are available on the SEC’s website at www.sec.gov.

You are cautioned not to place undue reliance on any forward-looking statements included herein. All forward-looking statements are made as of the date of this document and the risk that actual results, performance, and achievements will differ materially from the expectations expressed or referenced herein will increase with the passage of time. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

IP Disclaimer

This document contains references to copyrights, trademarks, trade names, and service marks that belong to other companies. Broadstone Net Lease is not affiliated or associated with, and is not endorsed by and does not endorse, such companies or their products or services.

Company Overview

Broadstone Net Lease, Inc. (NYSE:BNL) (the “Company”, “BNL”, “us”, “our”, and “we”) is an industrial-focused, diversified net lease real estate investment trust (“REIT”) that invests in primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. We primarily, and selectively, invest in real estate across industrial and retail property types. We target properties with credit worthy tenants in industries characterized by positive business drivers and trends, where the properties are an integral part of the tenants’ businesses and there are opportunities to secure long-term net leases. Through long-term net leases, our tenants are able to retain operational control of their strategically important locations, while allocating their debt and equity capital to fund core business operations rather than real estate ownership.

    Executive Team
John D. Moragne
Chief Executive Officer and Member, Board of Directors
Ryan M. Albano
President and Chief Operating Officer
Kevin M. Fennell
Executive Vice President, Chief Financial Officer and Treasurer
John D. Callan, Jr.
Senior Vice President, General Counsel, and Secretary
Michael B. Caruso
Senior Vice President, Underwriting & Strategy
Will D. Garner
Senior Vice President, Acquisitions
Jennie L. O’Brien 
Senior Vice President and Chief Accounting Officer
Molly Kelly Wiegel
Senior Vice President, Human Resources & Administration
 

     

    Board of Directors
Laurie A. Hawkes
Chairman of the Board
John D. Moragne
Chief Executive Officer
Denise Brooks-Williams
Michael A. Coke
Jessica Duran
Laura Felice
Richard Imperiale
David M. Jacobstein
Shekar Narasimhan
Joseph Saffire
James H. Watters
 
 

   

    Company Contact Information
Brent Maedl
Director, Corporate Finance & Investor Relations
[email protected]
585-382-8507
 
Transfer Agent
Computershare Trust Company, N.A.
150 Royall Street
Canton, Massachusetts 02021
800-736-3001

Quarterly Financial Summary

(unaudited, dollars in thousands except per share data)


	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023
Financial Summary
Investment in rental property	$	4,994,057		$	5,018,626		$	4,840,961		$	4,666,969		$	4,915,911
Less accumulated depreciation		(672,478	)		(644,214	)		(627,871	)		(606,225	)		(626,597	)
Property under development		18,784			—			165,014			133,064			94,964
Investment in rental property, net		4,340,363			4,374,412			4,378,104			4,193,808			4,384,278
Cash and cash equivalents		14,845			8,999			18,282			221,740			19,494
Restricted cash		1,148			2,219			1,614			1,038			1,138
Total assets		5,216,417			5,263,286			5,264,557			5,269,655			5,268,735
Unsecured revolving credit facility		93,014			125,482			79,096			73,820			90,434
Mortgages, net		76,846			77,416			77,970			78,517			79,068
Unsecured term loans, net		897,201			896,887			896,574			896,260			895,947
Senior unsecured notes, net		846,064			845,875			845,687			845,498			845,309
Total liabilities		2,074,993			2,124,927			2,067,147			2,051,951			2,074,394
Total Broadstone Net Lease, Inc. equity		3,003,745			2,999,074			3,054,802			3,073,622			3,049,241
Total equity (book value)		3,141,424			3,138,359			3,197,410			3,217,704			3,194,341

Revenues		112,130			108,397			105,907			105,366			105,000
General and administrative - other		7,951			6,893			7,831			7,957			7,982
Stock based compensation		1,977			1,829			2,073			1,475			1,401
General and administrative		9,928			8,722			9,904			9,432			9,383
Total operating expenses		77,369			54,811			56,463			79,264			84,457
Interest expense		19,564			18,178			17,757			18,578			18,972
Net income		27,607			37,268			35,937			68,177			6,797
Net earnings per common share, diluted	$	0.14		$	0.19		$	0.19		$	0.35		$	0.03

FFO		80,003			73,818			73,725			73,135			69,443
FFO per share, diluted	$	0.41		$	0.37		$	0.37		$	0.37		$	0.35
Core FFO		74,427			73,971			73,001			74,072			75,275
Core FFO per share, diluted	$	0.38		$	0.37		$	0.37		$	0.38		$	0.38
AFFO		70,532			70,185			70,401			70,873			71,278
AFFO per share, diluted	$	0.36		$	0.35		$	0.36		$	0.36		$	0.36

Net cash provided by operating activities		63,911			67,303			74,172			70,867			60,582
Capital expenditures and improvements		2,205			1,180			134			132			568
Capital expenditures and improvements - revenue generating		3,755			6,351			38			3,000			16,229
Net cash provided by (used in) investing activities		27,338			(65,618	)		(225,708	)		204,285			(49,536	)
Net cash used in financing activities		(86,474	)		(10,363	)		(51,346	)		(73,006	)		(40,911	)
Distributions declared		57,209			56,354			57,710			57,292			56,433
Distributions declared per diluted share	$	0.290		$	0.290		$	0.290		$	0.285		$	0.285

Balance Sheet

(unaudited, in thousands)


	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Assets
Accounted for using the operating method:
Land	$	778,826		$	784,545		$	773,224		$	724,199		$	748,529
Land improvements		357,142			357,090			324,138			316,170			328,746
Buildings and improvements		3,815,521			3,834,310			3,708,366			3,591,260			3,803,156
Equipment		15,843			15,824			8,248			8,247			8,265
Total accounted for using the operating method		4,967,332			4,991,769			4,813,976			4,639,876			4,888,696
Less accumulated depreciation		(672,478	)		(644,214	)		(627,871	)		(606,225	)		(626,597	)
Accounted for using the operating method, net		4,294,854			4,347,555			4,186,105			4,033,651			4,262,099
Accounted for using the direct financing method		26,154			26,285			26,413			26,522			26,643
Accounted for using the sales-type method		571			572			572			571			572
Property under development		18,784			—			165,014			133,064			94,964
Investment in rental property, net		4,340,363			4,374,412			4,378,104			4,193,808			4,384,278
Investment in rental property and intangible lease assets held for sale, net		—			38,779			—			—			—
Cash and cash equivalents		14,845			8,999			18,282			221,740			19,494
Accrued rental income		162,717			158,350			153,551			149,203			152,724
Tenant and other receivables, net		3,281			2,124			2,604			836			1,487
Prepaid expenses and other assets		41,584			36,230			33,255			33,149			36,661
Interest rate swap, assets		46,220			27,812			56,444			57,900			46,096
Goodwill		339,769			339,769			339,769			339,769			339,769
Intangible lease assets, net		267,638			276,811			282,548			273,250			288,226
Total assets	$	5,216,417		$	5,263,286		$	5,264,557		$	5,269,655		$	5,268,735
Liabilities and equity
Unsecured revolving credit facility	$	93,014		$	125,482		$	79,096		$	73,820		$	90,434
Mortgages, net		76,846			77,416			77,970			78,517			79,068
Unsecured term loans, net		897,201			896,887			896,574			896,260			895,947
Senior unsecured notes, net		846,064			845,875			845,687			845,498			845,309
Interest rate swap, liabilities		—			13,050			—			—			—
Accounts payable and other liabilities		48,983			47,651			42,635			40,655			47,534
Dividends payable		58,317			58,163			58,028			56,871			56,869
Accrued interest payable		5,837			9,642			14,033			9,377			5,702
Intangible lease liabilities, net		48,731			50,761			53,124			50,953			53,531
Total liabilities		2,074,993			2,124,927			2,067,147			2,051,951			2,074,394
Equity
Broadstone Net Lease, Inc. equity:
Preferred stock, $0.001 par value		—			—			—			—			—
Common stock, $0.00025 par value		47			47			47			47			47
Additional paid-in capital		3,450,584			3,450,116			3,444,265			3,446,910			3,440,639
Cumulative distributions in excess of retained earnings		(496,543	)		(467,922	)		(449,893	)		(430,169	)		(440,731	)
Accumulated other comprehensive income		49,657			16,833			60,383			56,834			49,286
Total Broadstone Net Lease, Inc. equity		3,003,745			2,999,074			3,054,802			3,073,622			3,049,241
Non-controlling interests		137,679			139,285			142,608			144,082			145,100
Total equity		3,141,424			3,138,359			3,197,410			3,217,704			3,194,341
Total liabilities and equity	$	5,216,417		$	5,263,286		$	5,264,557		$	5,269,655		$	5,268,735

Income Statement Summary

(unaudited, in thousands except per share data)


	Three Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Revenues
Lease revenues, net	$	112,130		$	108,397		$	105,907		$	105,366		$	105,000
Operating expenses
Depreciation and amortization		42,987			38,016			37,404			37,772			39,278
Property and operating expense		6,764			7,014			5,303			5,660			5,995
General and administrative		9,928			8,722			9,904			9,432			9,383
Provision for impairment of investment in rental properties		17,690			1,059			3,852			26,400			29,801
Total operating expenses		77,369			54,811			56,463			79,264			84,457
Other income (expenses)
Interest income		42			70			649			233			141
Interest expense		(19,564	)		(18,178	)		(17,757	)		(18,578	)		(18,972	)
Gain on sale of real estate		8,196			2,441			3,384			59,132			6,270
Income taxes		(527	)		291			(531	)		(408	)		268
Other income (expenses)		4,699			(942	)		748			1,696			(1,453	)
Net income		27,607			37,268			35,937			68,177			6,797
Net income attributable to non-controlling interests		(1,217	)		(1,660	)		(608	)		(3,063	)		(319	)
Net income attributable to Broadstone Net Lease, Inc.	$	26,390		$	35,608		$	35,329		$	65,114		$	6,478

Weighted average number of common shares outstanding
Basic1		187,592			187,496			187,436			187,290			186,829
Diluted1		196,697			196,932			196,470			196,417			196,373
Net earnings per common share2
Basic and Diluted	$	0.14		$	0.19		$	0.19		$	0.35		$	0.03

1 Excludes 974,256 weighted average shares of unvested restricted common stock for the three months ended December 31, 2024.

2 Excludes $0.3 million from the numerator for the three months ended December 31, 2024, related to dividends declared on shares of unvested restricted common stock.

Funds From Operations (FFO), Core Funds From Operations (Core FFO), and Adjusted Funds From Operations (AFFO)

(unaudited, in thousands except per share data)


	Three Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Net income	$	27,607		$	37,268		$	35,937		$	68,177		$	6,797
Real property depreciation and amortization		42,902			37,932			37,320			37,690			39,115
Gain on sale of real estate		(8,196	)		(2,441	)		(3,384	)		(59,132	)		(6,270	)
Provision for impairment of investment in rental properties		17,690			1,059			3,852			26,400			29,801
FFO	$	80,003		$	73,818		$	73,725		$	73,135		$	69,443
Net write-offs of accrued rental income		120			—			—			2,556			4,161
Other non-core income from real estate transactions1		(1,183	)		(887	)		—			—			—
Severance and employee transition costs		187			98			24			77			218
Other (income) expenses2		(4,700	)		942			(748	)		(1,696	)		1,453
Core FFO	$	74,427		$	73,971		$	73,001		$	74,072		$	75,275
Straight-line rent adjustment		(6,312	)		(5,309	)		(5,051	)		(4,980	)		(5,404	)
Adjustment to provision for credit losses		—			—			(17	)		—			—
Amortization of debt issuance costs		983			983			983			983			983
Non-capitalized transaction costs3		299			25			445			182			—
(Gain) loss on interest rate swaps and other non-cash interest expense		(6	)		(5	)		62			159			319
Amortization of lease intangibles		(991	)		(1,309	)		(1,095	)		(1,018	)		(1,014	)
Stock-based compensation		1,977			1,829			2,073			1,475			1,401
Deferred taxes		155			—			—			—			(282	)
AFFO	$	70,532		$	70,185		$	70,401		$	70,873		$	71,278

Diluted weighted average shares outstanding4		196,697			196,932			196,470			196,417			196,373
Net earnings per diluted share5	$	0.14		$	0.19		$	0.19		$	0.35		$	0.03
FFO per diluted share5		0.41			0.37			0.37			0.37			0.35
Core FFO per diluted share5		0.38			0.37			0.37			0.38			0.38
AFFO per diluted share5		0.36			0.35			0.36			0.36			0.36

1 Amount includes $1.2 million of lease termination fees for the three months ended December 31, 2024.

2 Amount includes $4.7 million of unrealized and realized foreign exchange gain for the three months ended December 31, 2024, primarily associated with our Canadian dollar denominated revolver borrowings.

3 Includes $0.3 million of acquisition costs related to deals that failed to transact for the three months ended December 31, 2024.

4 Excludes 974,256 weighted average shares of unvested restricted common stock for the three months ended December 31, 2024.

5 Excludes $0.3 million from the numerator for the three months ended December 31, 2024, related to dividends declared on shares of unvested restricted common stock.

Lease Revenues Detail

(unaudited, in thousands)


	Three Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Contractual rental amounts billed for operating leases	$	98,193		$	96,596		$	95,736		$	97,549		$	97,182
Adjustment to recognize contractual operating lease billings on a straight- line basis		6,444			5,438			5,177			5,104			5,513
Net write-offs of accrued rental income		—			—			—			(2,556	)		(4,161	)
Variable rental amounts earned		1,098			644			659			598			971
Earned income from direct financing leases		686			691			689			682			685
Interest income from sales-type leases		15			14			15			14			15
Operating expenses billed to tenants		5,400			5,537			4,651			5,105			5,513
Other income from real estate transactions		1,054			907			12			66			—
Adjustment to revenue recognized for uncollectible rental amounts billed, net		(760	)		(1,430	)		(1,032	)		(1,196	)		(718	)
Total Lease revenues, net	$	112,130		$	108,397		$	105,907		$	105,366		$	105,000

Capital Structure

(in thousands, except per share data)


EQUITY
Shares of Common Stock		188,626
OP Units		8,646
Common Stock & OP Units		197,272
Price Per Share / Unit at December 31, 2024	$	15.86
IMPLIED EQUITY MARKET CAPITALIZATION	$	3,128,727
% of Total Capitalization		62.0	%
DEBT
Unsecured Revolving Credit Facility - 2026	$	93,014
Unsecured Term Loans		900,000
Unsecured Term Loan - 2026		400,000
Unsecured Term Loan - 2027		200,000
Unsecured Term Loan - 2029		300,000
Senior Unsecured Notes		850,000
Senior Unsecured Notes - 2027		150,000
Senior Unsecured Notes - 2028		225,000
Senior Unsecured Notes - 2030		100,000
Senior Unsecured Public Notes - 2031		375,000
Mortgage Debt - Various		76,913
TOTAL DEBT	$	1,919,927
% of Total Capitalization		38.0	%
Floating Rate Debt %		2.8	%
Fixed Rate Debt %		97.2	%
Secured Debt %		4.0	%
Unsecured Debt %		96.0	%

Total Capitalization	$	5,048,654
Less: Cash and Cash Equivalents		(14,845	)
Enterprise Value	$	5,033,809

Equity Rollforward

(in thousands)


	Shares of Common Stock			OP Units			Total Diluted Shares
Balance, January 1, 2024		187,614			8,928			196,542
Grants of restricted stock awards - employees		778			—			778
Vesting of performance-based restricted stock units – employees		44			—			44
Retirement of common shares under equity incentive plan		(71	)		—			(71	)
Forfeiture of restricted stock awards		(25	)		—			(25	)
OP unit conversion		95			(95	)		—
Balance, March 31, 2024		188,435			8,833			197,268
Grants of restricted stock awards - employees		55			—			55
Forfeiture of restricted stock awards		(5	)		—			(5	)
OP unit conversion		32			(32	)		—
Balance, June 30, 2024		188,517			8,801			197,318
Grants of restricted stock awards - employees		1			—			1
Forfeiture of restricted stock awards		(57	)		—			(57	)
OP unit conversion		46			(46	)		—
Balance, September 30, 2024		188,507			8,755			197,262
Grants of restricted stock awards - employees		15			—			15
Forfeiture of restricted stock awards		(5	)		—			(5	)
OP unit conversion		109			(109	)		—
Balance, December 31, 2024		188,626			8,646			197,272

Debt Outstanding

(in thousands)


	December 31,			December 31,
	2024			2023			Interest Rate	Maturity Date
Unsecured revolving credit facility	$	93,014		$	90,434		Applicable reference rate + 0.85%1	Mar. 20264
Unsecured term loans:
2026 Unsecured Term Loan		400,000			400,000		one-month adjusted SOFR + 1.00%2	Feb. 2026
2027 Unsecured Term Loan		200,000			200,000		daily simple adjusted SOFR + 0.95%3	Aug. 2027
2029 Unsecured Term Loan		300,000			300,000		daily simple adjusted SOFR + 1.25%3	Aug. 2029
Total unsecured term loans		900,000			900,000
Unamortized debt issuance costs, net		(2,799	)		(4,053	)
Total unsecured term loans, net		897,201			895,947
Senior unsecured notes:
2027 Senior Unsecured Notes - Series A		150,000			150,000		4.84%	Apr. 2027
2028 Senior Unsecured Notes - Series B		225,000			225,000		5.09%	Jul. 2028
2030 Senior Unsecured Notes - Series C		100,000			100,000		5.19%	Jul. 2030
2031 Senior Unsecured Public Notes		375,000			375,000		2.60%	Sep. 2031
Total senior unsecured notes		850,000			850,000
Unamortized debt issuance costs and original issuance discount, net		(3,936	)		(4,691	)
Total senior unsecured notes, net		846,064			845,309
Total unsecured debt, net	$	1,836,279		$	1,831,690

1 At December 31, 2024, a balance of $23.5 million was subject to daily simple SOFR, and at December 31, 2023 a balance of $15.0 million was subject to one-month SOFR. The remaining balances include $100 million Canadian Dollars (“CAD”) borrowings remeasured to $69.5 million and $75.4 million United States Dollar (“USD”) at December 31 2024 and 2023, respectively, which were subject to the daily simple Canadian Overnight Repo Rate Average (“CORRA”) of 3.32% at December 31, 2024 and the one-month Canadian Dollar Offered Rate of 5.46% at December 31, 2023.

2 At December 31, 2024 and December 31, 2023, one-month SOFR was 4.33% and 5.35%, respectively.

3 At December 31, 2024 and December 31, 2023, borrowings were subject to overnight SOFR of 4.49% and one-month SOFR of 5.35%, respectively.

4 Our unsecured revolving credit facility contains two six-month extension options subject to certain conditions, including the payment of an extension fee equal to 0.0625% of the revolving commitments.


	Origination	Maturity	Interest	December 31,			December 31,
Lender	Date	Date	Rate	2024			2023
Wilmington Trust National Association	Apr. 2019	Feb. 2028	4.92%	$	42,838		$	44,207
Wilmington Trust National Association	Jun. 2018	Aug. 2025	4.36%		18,283			18,725
PNC Bank	Oct. 2016	Nov. 2026	3.62%		15,792			16,241
Total mortgages					76,913			79,173
Debt issuance costs, net					(67	)		(105	)
Mortgages, net				$	76,846		$	79,068


Year of Maturity	Revolving Credit Facility		Mortgages		Term Loans		Senior Notes		Total
2025	$	—	$	20,195	$	—	$	—	$	20,195
2026		93,014		16,843		400,000		—		509,857
2027		—		1,596		200,000		150,000		351,596
2028		—		38,279		—		225,000		263,279
2029		—		—		300,000		—		300,000
Thereafter		—		—		—		475,000		475,000
Total	$	93,014	$	76,913	$	900,000	$	850,000	$	1,919,927

Interest Rate Swaps

(dollars in thousands)


						December 31, 2024
Counterparty	Maturity Date1	Fixed Rate2			Variable Rate Index	Notional Amount			Fair Value
Effective Swaps:
Bank of Montreal	January 2025		1.91	%	daily compounded SOFR	$	25,000		$	2
Truist Financial Corporation	April 2025		2.20	%	daily compounded SOFR		25,000			137
Bank of Montreal	July 2025		2.32	%	daily compounded SOFR		25,000			250
Truist Financial Corporation	July 2025		1.99	%	daily compounded SOFR		25,000			290
Truist Financial Corporation	December 2025		2.30	%	daily compounded SOFR		25,000			471
Bank of Montreal	January 2026		1.92	%	daily compounded SOFR		25,000			569
Bank of Montreal	January 2026		2.05	%	daily compounded SOFR		40,000			860
Capital One, National Association	January 2026		2.08	%	daily compounded SOFR		35,000			743
Truist Financial Corporation	January 2026		1.93	%	daily compounded SOFR		25,000			567
Capital One, National Association	April 2026		2.68	%	daily compounded SOFR		15,000			280
Capital One, National Association	July 2026		1.32	%	daily compounded SOFR		35,000			1,454
Bank of Montreal	December 2026		2.33	%	daily compounded SOFR		10,000			346
Bank of Montreal	December 2026		1.99	%	daily compounded SOFR		25,000			1,030
Toronto-Dominion Bank	March 2027		2.46	%	daily compounded CORRA		13,903	3		166
Wells Fargo Bank, N.A.	April 2027		2.72	%	daily compounded SOFR		25,000			757
Bank of Montreal	December 2027		2.37	%	daily compounded SOFR		25,000			1,230
Capital One, National Association	December 2027		2.37	%	daily compounded SOFR		25,000			1,227
Wells Fargo Bank, N.A.	January 2028		2.37	%	daily compounded SOFR		75,000			3,693
Bank of Montreal	May 2029		2.09	%	daily compounded SOFR		25,000			2,024
Regions Bank	May 2029		2.11	%	daily compounded SOFR		25,000			1,999
Regions Bank	June 2029		2.03	%	daily compounded SOFR		25,000			2,085
U.S. Bank National Association	June 2029		2.03	%	daily compounded SOFR		25,000			2,087
Regions Bank	August 2029		2.58	%	one-month SOFR		100,000			5,799
Toronto-Dominion Bank	August 2029		2.58	%	one-month SOFR		45,000			2,642
U.S. Bank National Association	August 2029		2.65	%	one-month SOFR		15,000			835
U.S. Bank National Association	August 2029		2.58	%	one-month SOFR		100,000			5,820
U.S. Bank National Association	August 2029		1.35	%	daily compounded SOFR		25,000			2,894
Regions Bank	March 2032		2.69	%	daily compounded CORRA		13,903	3		358
U.S. Bank National Association	March 2032		2.70	%	daily compounded CORRA		13,903	3		354
Bank of Montreal	March 2034		2.81	%	daily compounded CORRA		27,805	4		846
						$	939,514		$	41,815
Forward Starting Swaps:5
Bank of Montreal	March 2030		3.80	%	daily simple SOFR	$	80,000		$	541
JPMorgan Chase Bank, N.A.	March 2030		3.79	%	daily simple SOFR		50,000			371
U.S. Bank National Association	June 2030		3.73	%	daily simple SOFR		70,000			666
Truist Financial Corporation	June 2030		3.73	%	daily simple SOFR		55,000			508
Manufacturers & Traders Trust Company	September 2030		3.71	%	daily simple SOFR		50,000			512
Regions Bank	September 2030		3.69	%	daily simple SOFR		15,000			159
Truist Financial Corporation	September 2030		3.70	%	daily simple SOFR		15,000			159
Toronto-Dominion Bank	December 2030		3.66	%	daily simple SOFR		70,000			846
Regions Bank	December 2030		3.66	%	daily simple SOFR		55,000			643
						$	460,000		$	4,405

Total Swaps						$	1,399,514		$	46,220

1 The weighted average maturity date of effective swaps and effective swaps and forward starting swaps combined was 3.2 years and 4.0 years, respectively, at December 31, 2024.

2 At December 31, 2024, the weighted average interest rate on all outstanding borrowings was 3.84%, inclusive of a weighted average fixed rate on effective interest rate swaps of 2.28%.

3 The contractual notional amount is $20.0 million CAD.

4 The contractual notional amount is $40.0 million CAD.

5 Forward starting swaps have effective dates that are 5 years prior to each respective maturity date.

EBITDA, EBITDAre, and Other-Non GAAP Operating Measures

(unaudited, in thousands)


	Three Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Net income	$	27,607		$	37,268		$	35,937		$	68,177		$	6,797
Depreciation and amortization		42,987			38,016			37,404			37,772			39,278
Interest expense		19,565			18,178			17,757			18,578			18,972
Income taxes		527			291			531			408			(268	)
EBITDA	$	90,686		$	93,753		$	91,629		$	124,935		$	64,779
Provision for impairment of investment in rental properties		17,690			1,059			3,852			26,400			29,801
Gain on sale of real estate		(8,197	)		(2,441	)		(3,384	)		(59,132	)		(6,270	)
EBITDAre	$	100,179		$	92,371		$	92,097		$	92,203		$	88,310
Adjustment for current quarter investment activity 1		28			4,080			1,241			—			153
Adjustment for current quarter disposition activity 2		(11	)		(66	)		(87	)		(4,712	)		(156	)
Adjustment to exclude non-recurring and other expenses 3		348			(201	)		26			(125	)		128
Adjustment to exclude net write-offs of accrued rental income		120			—			—			2,556			4,161
Adjustment to exclude realized / unrealized foreign exchange (gain) loss		(4,699	)		942			(748	)		(1,696	)		1,453
Other income from real estate transactions 4		(1,183	)		(887	)		—			—			—
Adjusted EBITDAre	$	94,782		$	96,239		$	92,529		$	88,226		$	94,049
Estimated revenues from developments 5		334			—			3,458			2,771			—
Pro Forma Adjusted EBITDAre	$	95,116		$	96,239		$	95,987		$	90,997		$	94,049
Annualized EBITDAre	$	400,716		$	369,484		$	368,388		$	368,812		$	353,240
Annualized Adjusted EBITDAre		379,128			384,956			370,116			352,904			376,196
Pro Forma Annualized Adjusted EBITDAre		380,464			384,956			383,948			363,988			376,196

1 Reflects an adjustment to give effect to all investments during the quarter, including developments that have reached rent commencement, as if they had been made as of the beginning of the quarter.

2 Reflects an adjustment to give effect to all dispositions during the quarter as if they had been sold as of the beginning of the quarter.

3 Amounts include $0.2 million of accelerated lease intangible amortization and $0.1 million of severance and employee transition costs during the three months ended December 31, 2024.

4 Amount includes $1.2 million of lease termination fees for the three months ended December 31, 2024.

5 Represents estimated contractual revenues based on in-process development spend to-date.


	Three Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Adjusted EBITDAre	$	94,782		$	96,239		$	92,529		$	88,226		$	94,049
General and administrative		9,581			8,924			9,878			9,557			9,254
Adjusted Net Operating Income ("NOI")	$	104,363		$	105,163		$	102,407		$	97,783		$	103,303
Straight-line rental revenue, net		(6,317	)		(6,128	)		(5,191	)		(4,929	)		(5,438	)
Other amortization and non-cash charges		(796	)		(1,309	)		(1,095	)		(1,018	)		(1,014	)
Adjusted Cash NOI	$	97,250		$	97,726		$	96,121		$	91,836		$	96,851
Annualized Adjusted NOI	$	417,452		$	420,652		$	409,628		$	391,132		$	413,212
Annualized Adjusted Cash NOI		389,000			390,904			384,484			367,344			387,404

Net Debt Metrics

(in thousands)


	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Debt
Unsecured revolving credit facility	$	93,014		$	125,482		$	79,096		$	73,820		$	90,434
Unsecured term loans, net		897,201			896,887			896,574			896,260			895,947
Senior unsecured notes, net		846,064			845,875			845,687			845,498			845,309
Mortgages, net		76,846			77,416			77,970			78,517			79,068
Debt issuance costs		6,802			7,314			7,825			8,337			8,848
Gross Debt		1,919,927			1,952,974			1,907,152			1,902,432			1,919,606
Cash and cash equivalents		(14,845	)		(8,999	)		(18,282	)		(221,740	)		(19,494	)
Restricted cash		(1,148	)		(2,219	)		(1,614	)		(1,038	)		(1,138	)
Net Debt	$	1,903,934		$	1,941,756		$	1,887,256		$	1,679,654		$	1,898,974
Estimated net proceeds from forward equity agreements 1		(38,514	)		(38,983	)		—			—			—
Pro Forma Net Debt	$	1,865,420		$	1,902,773		$	1,887,256		$	1,679,654		$	1,898,974

Leverage Ratios:
Net Debt to Annualized EBITDAre	4.8x			5.3x			5.1x			4.6x			5.4x
Net Debt to Annualized Adjusted EBITDAre	5.0x			5.0x			5.1x			4.8x			5.0x
Pro Forma Net Debt to Annualized Adjusted EBITDAre	4.9x			4.9x			4.9x			4.6x			5.0x

1 Represents pro forma adjustment for estimated net proceeds from forward sale agreements that have not settled as if they have been physically settled for cash as of the period presented.

Covenants

The following is a summary of key financial covenants for the Company’s unsecured debt instruments. The covenants associated with the Revolving Credit Facility, Unsecured Term Loans with commercial banks, and the Series A-C Senior Unsecured Notes, are reported to the respective lenders via quarterly covenant reporting packages. The covenants associated with the 2031 Senior Unsecured Public Notes are not required to be reported externally to third parties, and are instead calculated in connection with borrowing activity and for financial reporting purposes only. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of December 31, 2024, the Company believes it is in compliance with the covenants.

    Covenants

    Required

    Revolving Credit Facility and Unsecured Term Loans

    Senior Unsecured 
Notes Series 
A, B, & C

    2031 Senior Unsecured Public Notes

Leverage ratio

≤ 0.60 to 1.00

0.32

0.33

Not Applicable

Secured indebtedness ratio

≤ 0.40 to 1.00

0.01

0.01

Not Applicable

Unencumbered coverage ratio

≥ 1.75 to 1.00

5.26

Not Applicable

Not Applicable

Fixed charge coverage ratio

≥ 1.50 to 1.00

4.32

4.32

Not Applicable

Total unsecured indebtedness to 
   total unencumbered eligible 
   property value

≤ 0.60 to 1.00

0.34

0.35

Not Applicable

    Dividends and other restricted 
   payments

    Only applicable 
in case of default

    Not Applicable

    Not Applicable

    Not Applicable

Aggregate debt ratio

≤ 0.60 to 1.00

Not Applicable

Not Applicable

0.35

Consolidated income available for 
   debt to annual debt service 
   charge

≥ 1.50 to 1.00

Not Applicable

Not Applicable

5.30

Total unencumbered assets to 
   total unsecured debt

≥ 1.50 to 1.00

Not Applicable

Not Applicable

2.87

Secured debt ratio

≤ 0.40 to 1.00

Not Applicable

Not Applicable

0.01

Debt Maturities

(dollars in millions)

The Company utilizes diversified sources of debt capital including unsecured bank debt, unsecured notes, and secured mortgages (where appropriate).

    Weighted Average Debt Maturity: 3.6 years1

   

1 Our Revolving Credit Facility reflected above assumes exercise of two six-month extension options subject to certain conditions, including the payment of an extension fee equal to 0.0625% of the revolving commitments.

Swap Maturities

(dollars in millions)

    Weighted Average Effective Swap Maturity: 3.2 years
Weighted Average Effective & Forward Starting Swap Maturity: 4.0 years

Investment Activity

(square feet and dollars in thousands)

The following tables summarize the Company’s investment activity during 2024.


	Q4 2024		Q3 2024			Q2 2024			Q1 2024			YTD 2024
Acquisitions:
Number of transactions		—		2			6			—			8
Number of properties		—		2			21			—			23
Square feet		—		357			1,094			—			1,451
Acquisition price	$	—	$	69,250		$	165,053		$	—		$	234,303
Industrial		—		59,000			103,735			—			162,735
Retail		—		10,250			61,318			—			71,568
Initial cash capitalization rate		—		7.2	%		7.3	%		—			7.3	%
Straight-line yield		—		8.0	%		8.1	%		—			8.1	%
Weighted average lease term (years)		—		9.4			11.5			—			10.9
Weighted average annual rent increase		—		2.8	%		2.3	%		—			2.4	%

Build-to-suit developments:
Number of new properties		4		—			—			—			4
Investments	$	22,962	$	24,667		$	30,583		$	37,107		$	115,319

Revenue generating capital expenditures:
Number of existing properties		—		—			—			1			1
Investments	$	—	$	—		$	—		$	3,000		$	3,000
Retail - Animal Services		—		—			—			3,000			3,000
Initial cash capitalization rate		—		—			—			8.0	%		8.0	%
Weighted average lease term (years)		—		—			—			8.0			8.0
Weighted average annual rent increase		—		—			—			2.5	%		2.5	%

Transitional capital:
Number of transactions		—		—			1			—			1
Investments1	$	—	$	—		$	52,200		$	—		$	52,200
Cash capitalization rate		—		—			8.0	%		—			8.0	%

Total investments	$	22,962	$	93,917		$	247,836		$	40,107		$	404,822
Total initial cash capitalization rate2		—		7.2	%		7.3	%		8.0	%		7.3	%
Total weighted average lease term (years)2		—		9.4			11.5			8.0			10.8
Total weighted average annual rent increase2		—		2.8	%		2.3	%		2.5	%		2.4	%

1 Refer below for property-level statistics relating to our transitional capital investments.

2 Due to the nature of (1) transitional capital representing a contractual yield on invested capital, and (2) build-to-suit developments not generating revenue during construction, these are excluded from the calculation of total cash capitalization rates, weighted average lease terms, and weighted average rent increases.

Transitional Capital

The following table summarizes the Company’s transitional capital investments, which are excluded from real estate investment portfolio statistics:


	Q4 2024
Transitional Capital:
Type	Preferred Equity
Investment (’000s)1	$	52,200
Stabilized cash capitalization rate2		8.0	%
Annualized initial cash NOI yield		7.6	%
Remaining term (years)3		2.5
Property type	Retail Center
Underlying property metrics
Number of retail spaces		28
Rentable square footage (“SF”) (’000s)		332
Weighted average remaining lease term (years)		4.0
Occupancy rate (based on SF)4		98.7	%
Quarterly rent collection		90.7	%

1 Agreement includes commitment to fund up to an additional $7.8 million of preferred capital.

2 Represents stated yield with unpaid amounts accruing with preferential payment.

3 Agreement contains two one-year extension options subject to a 0.50% extension fee. Repayment at end of term subject to a $3.5 million repayment fee.

4 Includes executed leases where rent has not yet commenced.

Build-to-Suit Development Projects

(square feet and dollars in thousands)

The following table summarizes the Company’s in-process developments as of December 31, 2024:


Property	Property Type	Projected Rentable Square Feet		Start Date5	Target Stabilization Date5	Lease Term (Years)	Total Project Commitment5		Estimated Total Project Investment5		Cumulative Investment		QTD Q4 2024 Investment		Estimated Remaining Investment		Estimated Cash Capitalization Rate5			Estimated Straight-line Yield5
7 Brew (High Point - NC)	Retail		1	Dec. 2024	Feb. 2025	15	$	1,975	$	1,975	$	1,173	$	1,173	$	802		8.0	%		8.8	%
Sierra Nevada (Dayton - OH)	Industrial		122	Oct. 2024	Nov. 2025	15		58,563		58,563		4,638		4,638		53,925		7.6	%		9.4	%
Sierra Nevada (Dayton - OH)	Industrial		122	Oct. 2024	Mar. 2026	15		55,525		55,525		4,257		4,257		51,268		7.7	%		9.6	%
Southwire (Bremen - GA)	Industrial		1,200	Dec. 2024	Jul. 2026	10		115,411		107,333		8,285		8,285		99,048		7.6	%		8.6	%
Total			1,445				$	231,474	$	223,396	$	18,353	$	18,353	$	205,043

The following table summarizes the Company’s stabilized developments as of December 31, 2024:


Property	Property Type	Rentable Square Feet		Lease Commencement Date5	Total Project Commitment5		Estimated Total Project Investment5		Cumulative Investment		QTD Q4 2024 Investment		Estimated Remaining Investment			Estimated Cash Capitalization Rate5			Estimated Straight-line Yield5
UNFI (Sarasota - FL)	Industrial		1,016	Sep. 2024	$	204,833	$	200,958	$	190,573	$	4,609	$	10,385	6		7.2	%		8.6	%

5 Refer to definitions and explanations appearing at the end of this supplemental document.

6 Revenue on additional investments will receive a cash capitalization rate of 6.8%.

Dispositions

(square feet and dollars in thousands)

The following table summarizes the Company’s property disposition activity during 2024.


Q1 2024
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Other		37		706	$	250,079		251,700	$	199,098
Total Properties		37		706		250,079		251,700		199,098
Weighted average cash cap rate										7.9	%

Q2 2024
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Industrial		1		187	$	11,330	$	11,750	$	10,753
Other		2		80		21,745		12,600		10,623
Total Properties		3		267		33,075		24,350		21,376
Weighted average cash cap rate										7.3	%

Q3 2024
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Other		6		110	$	36,611	$	31,812	$	29,796
Total Properties		6		110		36,611		31,812		29,796
Weighted average cash cap rate										8.0	%

Q4 2024
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Other		12		374	$	127,820		56,145	$	58,044
Total Properties		12		374		127,820		56,145		58,044
Weighted average cash cap rate										7.9	%

2024 Dispositions
Property Type	Number of Properties		Square Feet		Acquisition Price		Disposition Price		Net Book Value
Industrial		1		187	$	11,330	$	11,750	$	10,753
Other		57		1,269		436,254		352,257		297,561
Total Properties		58		1,456	$	447,584	$	364,007	$	308,314
Weighted average cash cap rate										7.8	%

Portfolio at a Glance: Key Metrics1


	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Properties		765			773			777			759			796
U.S. States		44			44			44			44			44
Canadian Provinces		4			4			4			4			4
Total annualized base rent	$395.5M			$398.2M			$385.5M			$374.1M			$392.2M
Total rentable square footage (“SF”)	39.4M			39.7M			38.5M			37.6M			38.3M
Tenants		202			203			207			200			220
Brands		190			191			196			188			208
Industries		55			55			53			53			53
Occupancy (based on SF)		99.1	%		99.0	%		99.3	%		99.2	%		99.4	%
Rent Collection		99.2	%		99.1	%		99.0	%		99.0	%		99.2	%
Top 10 tenant concentration		21.9	%		21.4	%		20.2	%		20.6	%		19.6	%
Top 20 tenant concentration		35.5	%		34.9	%		33.4	%		34.0	%		32.3	%
Investment grade (tenant/guarantor)		17.4	%		17.0	%		15.5	%		15.7	%		15.3	%
Financial reporting coverage2		94.2	%		94.0	%		94.8	%		95.3	%		93.8	%
Rent coverage ratio (restaurants only)	3.3x			3.3x			3.3x			3.3x			3.4x
Weighted average annual rent increases		2.0	%		2.0	%		2.0	%		2.0	%		2.0	%
Weighted average remaining lease term	10.2 years			10.3 years			10.4 years			10.6 years			10.5 years
Master leases (based on ABR)
Total portfolio		41.4	%		40.2	%		41.7	%		43.0	%		41.5	%
Multi-site tenants		69.1	%		69.0	%		71.0	%		71.0	%		69.0	%

1 Property metrics exclude transitional capital investments.

2 Includes 8.6% related to tenants not required to provide financial information under the terms of our lease, but whose financial statements are available publicly at December 31, 2024.

Diversification: Tenants & Brands

Top 20 Tenants


Tenant	Property Type	# of Properties		ABR (’000s)		ABR as a % of Total Portfolio			Square Feet (’000s)		SF as a % of Total Portfolio
Roskam Baking Company, LLC*	Food Processing		7	$	16,236		4.1	%		2,250		5.7	%
United Natural Foods, Inc.	Distribution & Warehouse		1		13,680		3.5	%		1,016		2.6	%
AHF, LLC*	Distribution & Warehouse/Manufacturing		8		9,612		2.4	%		2,284		5.8	%
Joseph T. Ryerson & Son, Inc	Distribution & Warehouse		11		7,897		2.0	%		1,599		4.1	%
Jack’s Family Restaurants LP*	Quick Service Restaurants		43		7,605		1.9	%		147		0.4	%
Tractor Supply Company	General Merchandise		23		6,449		1.6	%		462		1.2	%
J. Alexander’s, LLC*	Casual Dining		16		6,300		1.6	%		131		0.3	%
Axcelis Technologies, Inc.	Flex and R&D		1		6,263		1.6	%		417		1.1	%
Nestle’ Dreyer's Ice Cream Company	Cold Storage		2		6,219		1.6	%		503		1.3	%
Salm Partners, LLC*	Food Processing		2		6,170		1.6	%		427		1.0	%
Total Top 10 Tenants			114	$	86,431		21.9	%		9,236		23.5	%

Hensley & Company*	Distribution & Warehouse		3	$	6,109		1.5	%		577		1.5	%
Dollar General Corporation	General Merchandise		60		5,992		1.5	%		562		1.4	%
BluePearl Holdings, LLC**	Animal Services		13		5,846		1.5	%		159		0.4	%
Red Lobster Hospitality & Red Lobster Restaurants LLC*	Casual Dining		18		5,563		1.4	%		147		0.4	%
Outback Steakhouse of Florida LLC*	Casual Dining		22		5,544		1.4	%		140		0.4	%
Krispy Kreme Doughnut Corporation	Quick Service Restaurants/ Food Processing		27		5,538		1.4	%		156		0.4	%
Big Tex Trailer Manufacturing Inc.*	Automotive/Distribution & Warehouse/Manufacturing/Office		17		5,157		1.3	%		1,302		3.3	%
Arkansas Surgical Hospital, LLC	Clinical & Surgical		1		4,702		1.2	%		129		0.3	%
Carvana, LLC*	Industrial Services		2		4,672		1.2	%		230		0.6	%
Jelly Belly Candy Company	Distribution & Warehouse/Food Processing/General Merchandise		5		4,648		1.2	%		575		1.4	%
Total Top 20 Tenants			282	$	140,202		35.5	%		13,213		33.6	%

*Subject to a master lease.

**Includes properties leased by multiple tenants, some, not all, of which are subject to master leases.

Top 20 Tenant Descriptions1

Top 20 Tenant Descriptions1 (continued)

Top 20 Brands


Brand	Property Type	# of Properties		ABR (’000s)		ABR as a % of Total Portfolio			Square Feet (’000s)		SF as a % of Total Portfolio
Roskam Baking Company, LLC*	Food Processing		7		16,236		4.1	%		2,250		5.7	%
United Natural Foods, Inc.	Distribution & Warehouse		1		13,680		3.5	%		1,016		2.6	%
AHF Products*	Distribution & Warehouse/ Manufacturing		8		9,612		2.4	%		2,284		5.8	%
Ryerson	Distribution & Warehouse		11		7,897		2.0	%		1,599		4.1	%
Jack's Family Restaurants*	Quick Service Restaurants		43		7,605		1.9	%		147		0.4	%
Tractor Supply Company	General Merchandise		23		6,449		1.6	%		462		1.2	%
Axcelis	Flex and R&D		1		6,263		1.6	%		417		1.1	%
Nestle’	Cold Storage		2		6,219		1.6	%		503		1.3	%
Salm Partners, LLC*	Food Processing		2		6,168		1.6	%		426		1.0	%
Hensley*	Distribution & Warehouse		3		6,110		1.5	%		578		1.4	%
Total Top 10 Brands			101	$	86,239		21.8	%		9,682		24.6	%

Dollar General	General Merchandise		60		5,992		1.5	%		562		1.4	%
BluePearl Veterinary Partners**	Animal Services		13		5,846		1.5	%		159		0.4	%
Bob Evans Farms*	Casual Dining/Food Processing		21		5,608		1.4	%		281		0.7	%
Red Lobster*	Casual Dining		18		5,563		1.4	%		147		0.4	%
Krispy Kreme	Quick Service Restaurants/ Food Processing		27		5,538		1.4	%		156		0.4	%
Big Tex Trailers*	Automotive/Distribution & Warehouse/Manufacturing/Office		17		5,157		1.3	%		1,302		3.3	%
Outback Steakhouse*	Casual Dining		20		4,796		1.2	%		126		0.3	%
Arkansas Surgical Hospital, LLC	Clinical & Surgical		1		4,702		1.2	%		129		0.3	%
Carvana*	Industrial Services		2		4,672		1.2	%		230		0.6	%
Jelly Belly	Distribution & Warehouse/Food Processing/General Merchandise		5		4,649		1.2	%		575		1.5	%
Total Top 20 Brands			285	$	138,762		35.1	%		13,349		33.9	%

*Subject to a master lease.

**Includes properties leased by multiple tenants, some, not all, of which are subject to master leases.

Diversification: Property Type

(rent percentages based on ABR)

Diversification: Property Type (continued)


Property Type	# of Properties		ABR (’000s)		ABR as a % of Total Portfolio			Square Feet (’000s)		SF as a % of Total Portfolio
Industrial
Manufacturing		80	$	69,835		17.7	%		12,319		31.3	%
Distribution & Warehouse		49		69,247		17.5	%		10,446		26.6	%
Food Processing		34		49,613		12.5	%		5,736		14.6	%
Flex and R&D		10		22,088		5.6	%		1,606		4.1	%
Industrial Services		29		14,880		3.8	%		725		1.8	%
Cold Storage		3		10,046		2.5	%		723		1.8	%
In-process Developments		3		—		—			—		—
Untenanted		2		—		—			343		0.9	%
Industrial Total		210		235,709		59.6	%		31,898		81.1	%
Retail
General Merchandise		138		29,427		7.4	%		2,196		5.6	%
Casual Dining		102		27,381		6.9	%		674		1.7	%
Quick Service Restaurants		151		26,617		6.7	%		514		1.3	%
Automotive		65		12,069		3.1	%		764		1.9	%
Animal Services		27		11,326		2.9	%		419		1.1	%
Home Furnishings		13		7,386		1.9	%		797		2.0	%
Healthcare Services		18		6,014		1.5	%		220		0.6	%
Education		5		3,246		0.8	%		128		0.3	%
In-process Developments		1		—		—			—		—
Retail Total		520		123,466		31.2	%		5,712		14.5	%
Other
Office		14		23,642		6.0	%		1,311		3.3	%
Clinical & Surgical		21		12,664		3.2	%		433		1.1	%
Other Total		35		36,306		9.2	%		1,744		4.4	%
Total		765	$	395,481		100.0	%		39,354		100.0	%

Key Statistics by Property Type


	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023
Industrial
Number of properties		210			207			206			197			197
Square feet (000s)		31,898			31,898			30,602			29,980			29,921
Weighted average lease term (years)		11.0			11.1			11.0			11.3			11.5
Weighted average annual rent escalation		2.1	%		2.1	%		2.0	%		2.0	%		2.0	%
Percentage of total ABR		59.6	%		59.1	%		56.0	%		55.8	%		53.1	%

Retail
Number of properties		520			519			518			507			507
Square feet (000s)		5,712			5,692			5,621			5,337			5,337
Weighted average lease term (years)		10.2			10.5			10.8			10.9			11.2
Weighted average annual rent escalation		1.7	%		1.7	%		1.7	%		1.7	%		1.8	%
Percentage of total ABR		31.2	%		30.9	%		31.8	%		31.4	%		30.0	%

Other
Number of properties		35			47			53			55			92
Square feet (000s)		1,744			2,118			2,227			2,307			3,013
Weighted average lease term (years)		5.0			5.3			6.5			6.4			5.9
Weighted average annual rent escalation		2.4	%		2.4	%		2.5	%		2.5	%		2.4	%
Percentage of total ABR		9.2	%		10.0	%		12.2	%		12.8	%		16.9	%

Diversification: Tenant Industry


Industry	# of Properties		ABR (’000s)		ABR as a % of Total Portfolio			Square Feet (’000s)		SF as a % of Total Portfolio
Restaurants		257	$	54,839		13.9	%		1,231		3.1	%
Packaged Foods & Meats		35		48,033		12.1	%		5,541		14.1	%
Food Distributors		7		26,576		6.7	%		2,534		6.4	%
Healthcare Facilities		48		23,990		6.1	%		852		2.2	%
Auto Parts & Equipment		46		20,739		5.2	%		3,168		8.0	%
Specialty Stores		36		18,594		4.7	%		1,637		4.2	%
Distributors		27		17,820		4.5	%		2,757		7.0	%
Home Furnishing Retail		17		12,281		3.1	%		1,692		4.3	%
Specialized Consumer Services		46		12,157		3.1	%		716		1.8	%
Metal & Glass Containers		8		10,696		2.7	%		2,206		5.6	%
Industrial Machinery		20		9,910		2.5	%		1,949		5.0	%
General Merchandise Stores		96		9,819		2.5	%		880		2.2	%
Forest Products		8		9,612		2.4	%		2,284		5.8	%
Healthcare Services		17		9,507		2.4	%		507		1.3	%
Electronic Components		2		7,129		1.8	%		466		1.2	%
Other (40 industries)		93		103,779		26.3	%		10,591		26.9	%
Untenanted properties		2		—		—			343		0.9	%
Total		765	$	395,481		100.0	%		39,354		100.0	%

Diversification: Geography

(rent percentages based on ABR)


State / Province	# of Properties		ABR (’000s)		ABR as a % of Total Portfolio			Square Feet (’000s)		SF as a % of Total Portfolio			State / Province	# of Properties		ABR (’000s)		ABR as a % of Total Portfolio			Square Feet (’000s)		SF as a % of Total Portfolio
TX		67	$	37,815		9.6	%		3,615		9.2	%	MS		12	$	4,120		1.0	%		607		1.5	%
MI		52		36,422		9.2	%		4,019		10.2	%	LA		5		3,786		1.0	%		211		0.5	%
FL		30		25,527		6.5	%		1,661		4.3	%	SC		14		3,519		0.9	%		323		0.8	%
CA		17		24,293		6.1	%		2,282		5.8	%	NE		6		3,363		0.9	%		509		1.3	%
IL		29		22,756		5.8	%		2,364		6.0	%	WA		14		3,289		0.8	%		148		0.4	%
WI		30		19,568		4.9	%		1,945		4.9	%	IA		4		2,884		0.7	%		622		1.6	%
OH		49		16,677		4.2	%		1,582		4.0	%	NM		9		2,749		0.7	%		107		0.3	%
MN		21		15,958		4.0	%		2,500		6.4	%	UT		3		2,748		0.7	%		280		0.7	%
TN		48		15,148		3.8	%		1,084		2.8	%	CO		4		2,589		0.7	%		126		0.3	%
IN		28		14,091		3.6	%		1,852		4.7	%	MD		3		2,112		0.5	%		205		0.5	%
AL		52		12,394		3.1	%		863		2.2	%	CT		2		1,898		0.5	%		55		0.1	%
GA		34		12,055		3.0	%		1,576		4.0	%	MT		7		1,602		0.4	%		43		0.1	%
NC		29		10,485		2.7	%		1,038		2.6	%	DE		4		1,162		0.3	%		133		0.3	%
PA		22		10,002		2.5	%		1,836		4.7	%	ND		2		1,024		0.3	%		24		0.1	%
KY		23		9,127		2.3	%		927		2.4	%	VT		2		432		0.1	%		24		0.1	%
MO		19		8,941		2.3	%		1,260		3.2	%	WY		1		338		0.1	%		21		0.1	%
OK		25		8,908		2.3	%		1,006		2.6	%	NV		1		277		0.1	%		6		0.0	%
AZ		7		8,792		2.2	%		747		1.9	%	OR		1		136		0.0	%		9		0.0	%
NY		24		6,724		1.7	%		514		1.3	%	SD		1		81		0.0	%		9		0.0	%
MA		3		6,692		1.7	%		444		1.1	%	Total U.S.		758	$	387,763		98.1	%		38,925		98.9	%
AR		9		6,675		1.7	%		277		0.7	%	BC		2	$	4,535		1.1	%		253		0.6	%
KS		10		5,530		1.4	%		643		1.6	%	ON		3		1,944		0.5	%		101		0.3	%
WV		17		5,100		1.3	%		884		2.2	%	AB		1		914		0.2	%		51		0.1	%
VA		15		5,056		1.3	%		178		0.5	%	MB		1		325		0.1	%		24		0.1	%
NJ		3		4,918		1.2	%		366		0.9	%	Total Canada		7	$	7,718		1.9	%		429		1.1	%
													Grand Total		765	$	395,481		100.0	%		39,354		100.0	%

Lease Expirations

(rent percentages based on ABR)


Expiration Year	# of Properties		# of Leases		ABR ('000s)		ABR as a % of Total Portfolio			Square Feet ('000s)		SF as a % of Total Portfolio
2025		15		16	$	4,680		1.2	%		251		0.6	%
2026		23		24	$	11,793		3.0	%		915		2.3	%
2027		28		30	$	25,762		6.5	%		2,257		5.7	%
2028		29		28	$	19,824		5.0	%		1,793		4.6	%
2029		61		36	$	18,519		4.7	%		2,596		6.6	%
2030		88		53	$	48,477		12.3	%		4,777		12.1	%
2031		31		26	$	8,181		2.1	%		835		2.1	%
2032		61		46	$	32,450		8.2	%		3,479		8.8	%
2033		49		23	$	18,949		4.8	%		1,409		3.6	%
2034		38		27	$	14,253		3.6	%		1,245		3.2	%
2035		20		16	$	15,184		3.8	%		2,116		5.4	%
2036		89		23	$	29,729		7.5	%		2,877		7.3	%
2037		26		12	$	23,883		6.0	%		1,870		4.8	%
2038		39		35	$	13,972		3.5	%		1,226		3.1	%
2039		11		7	$	21,208		5.4	%		1,758		4.5	%
2040		31		5	$	5,987		1.5	%		312		0.8	%
2041		39		8	$	16,919		4.3	%		1,367		3.5	%
2042		58		13	$	44,037		11.1	%		4,803		12.2	%
2043		12		5	$	11,014		2.8	%		796		2.0	%
2044		2		2	$	910		0.2	%		44		0.1	%
Thereafter		9		2	$	9,750		2.5	%		2,285		5.8	%
Total leased properties		759		437		395,481		100.0	%		39,011		99.1	%
In-process developments		4		4		—		—			—		—
Untenanted properties		2		2		—		—			343		0.9	%
Total properties		765		443	$	395,481		100.0	%		39,354		100.0	%

Occupancy

Occupancy by Rentable Square Footage

Change in Occupancy


	Number of properties
Vacant properties at January 1, 2024		2
Lease expirations1		3
Leasing activities		(2	)
Vacant dispositions		—
Vacant properties at March 31, 2024		3
Lease expirations1		1
Leasing activities		—
Vacant dispositions		(1	)
Vacant properties at June 30, 2024		3
Lease expirations1		4
Leasing activities		(3	)
Vacant dispositions		(1	)
Vacant properties at September 30, 2024		3
Lease expirations1		2
Leasing activities		(1	)
Vacant dispositions		(2	)
Vacant properties at December 31, 2024		2

1 Includes scheduled and unscheduled expirations (including leases rejected in bankruptcy), as well as future expirations resolved and effective in the periods indicated above.

Definitions and Explanations

Adjusted NOI, Annualized Adjusted NOI, Adjusted Cash NOI and Annualized Adjusted Cash NOI: Our reported results and net earnings per diluted share are presented in accordance with accounting principles generally accepted in the United States of America (GAAP). Adjusted NOI and Adjusted Cash NOI are non-GAAP financial measures that we believe are useful to assess property-level performance. We compute Adjusted NOI by adjusting Adjusted EBITDAre (defined below) to exclude general and administrative expenses incurred at the corporate level. Given the net lease nature of our portfolio, we do not incur general and administrative expenses at the property level. To compute Adjusted Cash NOI, we adjust Adjusted NOI to exclude non-cash items included in total revenues and property expenses, such as straight-line rental revenue and other amortization and non-cash items, based on an estimate calculated as if all investment and disposition activity that took place during the quarter had occurred on the first day of the quarter. We then annualize quarterly Adjusted NOI and Adjusted Cash NOI by multiplying each amount by four to compute Annualized Adjusted NOI and Annualized Adjusted Cash NOI, respectively, which are also non-GAAP financial measures. We believe Adjusted NOI and Adjusted Cash NOI provide useful and relevant information because they reflect only those income and expense items that are incurred at the property level and present such items on an unlevered basis. We believe that the exclusion of certain non-cash revenues and expenses from Adjusted Cash NOI is a useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortions created by non-cash revenues or expenses. You should not unduly rely on Annualized Adjusted NOI and Annualized Adjusted Cash NOI as they are based on assumptions and estimates that may prove to be inaccurate. Our actual reported Adjusted NOI and Adjusted Cash NOI for future periods may be significantly different from our Annualized Adjusted NOI and Annualized Adjusted Cash NOI. Additionally, our computation of Adjusted NOI and Adjusted Cash NOI may differ from the methodology for calculating these metrics used by companies in our industry, and, therefore, may not be comparable to similarly titled measures reported by other companies.

Adjusted Secured Overnight Financing Rate (SOFR): We define Adjusted SOFR as the current one month term SOFR plus an adjustment of 0.10% per the terms of our credit facilities.

Annualized Base Rent (ABR): We define ABR as the annualized contractual cash rent due for the last month of the reporting period, excluding the impacts of short-term rent deferrals, abatements, or free rent, and adjusted to remove rent from properties sold during the month and to include a full month of contractual cash rent for investments made during the month.

Cash Capitalization Rate: Cash Capitalization Rate represents either (1) for acquisitions and new build-to-suit developments, the estimated first year cash yield to be generated on a real estate investment, which was estimated at the time of investment based on the contractually specified cash base rent for the first full year after the date of the investment, divided by the purchase price for the property excluding capitalized acquisition costs, or (2) for dispositions, the property’s ABR in effect immediately prior to the disposition, divided by the disposition price, or (3) for transitional capital, the contractual cash yield to be generated on total invested capital.

EBITDA, EBITDAre, Adjusted EBITDAre, Pro Forma Adjusted EBITDAre, Annualized EBITDAre, Annualized Adjusted EBITDAre, and Pro Forma Annualized Adjusted EBITDAre: EBITDA, EBITDAre, Adjusted EBITDAre, Pro Forma Adjusted EBITDAre, Annualized EBITDAre, Annualized Adjusted EBITDAre, and Pro Forma Annualized Adjusted EBITDAre are non-GAAP financial measures. We compute EBITDA as earnings before interest, income taxes and depreciation and amortization. EBITDA is a measure commonly used in our industry. We believe that this ratio provides investors and analysts with a measure of our performance that includes our operating results unaffected by the differences in capital structures, capital investment cycles and useful life of related assets compared to other companies in our industry. We compute EBITDAre in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as EBITDA excluding gains (loss) from the sales of depreciable property and provisions for impairment on investment in real estate. We believe EBITDA and EBITDAre are useful to investors and analysts because they provide important supplemental information about our operating performance exclusive of certain non-cash and other costs. Adjusted EBITDAre represents EBITDAre, adjusted to reflect revenue producing investments and dispositions for the quarter as if such investments and dispositions had occurred at the beginning of the quarter, and to exclude certain GAAP income and expense amounts that are either non-cash, such as cost of debt extinguishments, realized or unrealized gains and losses on foreign currency transactions, or gains on insurance recoveries, or that we believe are one time, or unusual in nature because they relate to unique circumstances or transactions that had not previously occurred and which we do not anticipate occurring in the future, and to eliminate the impact of lease termination fees, and other items that are not a result of normal operations. While investments in build-to-suit developments have an immediate impact to Net Debt, we do not make an adjustment to EBITDAre until the quarter in which the lease commences. We define our Pro Forma Adjusted EBITDAre as Adjusted EBITDAre adjusted to show the impact of estimated contractual revenues based on in-process development spend to-date. Our Pro Forma Net Debt is defined as Net Debt adjusted for estimated net proceeds from forward sale agreements that have not settled as if they have been physically settled for cash as of the period presented. We then annualize quarterly Adjusted EBITDAre and Pro Forma Adjusted EBITDAre by multiplying them by four (“Annualized Adjusted EBITDAre” and “Annualized Pro Forma Adjusted EBITDAre”). You should not unduly rely on this measure as it is based on assumptions and estimates that may prove to be inaccurate. Our actual reported EBITDAre for future periods may be significantly different from our Annualized Adjusted EBITDAre. Adjusted EBITDAre and Annualized Adjusted EBITDAre are not measurements of performance under GAAP, and our Adjusted EBITDAre and Annualized Adjusted EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our Adjusted EBITDAre and Annualized Adjusted EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.

Funds From Operations (FFO), Core Funds From Operations (Core FFO), and Adjusted Funds From Operations (AFFO): FFO, Core FFO, and AFFO are non-GAAP measures. We believe the use of FFO, Core FFO, and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO, Core FFO, and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. We compute Core FFO by adjusting FFO to exclude certain GAAP income and expense amounts that we believe are infrequently recurring, unusual in nature, or not related to its core real estate operations, including write-offs or recoveries of accrued rental income, lease termination fees and other non-core income from real estate transactions, severance and employee transition costs, and other extraordinary items. We compute AFFO by adjusting Core FFO for certain revenues and expenses that are non-cash or unique in nature, including straight-line rents, amortization of lease intangibles, amortization of debt issuance costs, adjustment to provision for credit losses, non-capitalized transaction costs such as acquisition costs related to deals that failed to transact, (gain) loss on interest rate swaps and other non-cash interest expense, deferred taxes, stock-based compensation, and other specified non-cash items.

Definitions and Explanations (continued)

Gross Debt: We define Gross Debt as total debt plus debt issuance costs and original issuance discount.

Net Debt: Net Debt is a non-GAAP financial measure. We define Net Debt as our Gross Debt less cash and cash equivalents and restricted cash.

Occupancy: Occupancy or a specified percentage of our portfolio that is “occupied” or “leased” means as of a specified date the quotient of (1) the total rentable square footage of our properties minus the square footage of our properties that are vacant and from which we are not receiving any rental payment, and (2) the total square footage of our properties.

Rent Coverage Ratio: Rent Coverage Ratio means the ratio of tenant-reported or, when available, management’s estimate, based on tenant-reported financial information, of annual earnings before interest, taxes, depreciation, amortization, and cash rent attributable to the leased property (or properties, in the case of a master lease) to the annualized base rental obligation as of a specified date.

Straight-line Yield: Straight-line yield represents the estimated first year yield to be generated on a real estate investment, which was computed at the time of investment based on the straight-line annual rental income computed in accordance with GAAP, divided by the purchase price.

Definitions Related to Development Properties:

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Estimated Total Project Investment: Represents the estimated costs to be incurred to complete development of each project. We expect to update our estimates upon completion of the project, or sooner if there are any significant changes to expected costs from quarter to quarter. Excludes capitalized costs consisting of capitalized interest and other acquisition costs.

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Estimated Cash Capitalization Rate: Calculated by dividing the estimated first year cash yield to be generated on a real estate investment by the Estimated Project Investment for the property.

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Estimated Straight-line Yield: Represents the estimated first year yield to be generated on a real estate investment, which was computed at the time of investment based on the estimated annual straight-line rental income computed in accordance with GAAP, divided by the Estimated Total Project Investment.

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Lease Commencement Date: The month in which the development was substantially completed and was made available for occupancy.

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Start Date: The Start Date represents the period in which we have begun physical construction on a property.

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Target Stabilization Date: The Target Stabilization Date is our current estimate of the period in which we will have substantially completed a project and the project is made available for occupancy. We expect to update our timing estimates on a quarterly basis.

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Total Project Commitment: Represents the contractual maximum amount of costs that we are committed to fund for the build-to-suit development project.