DST PROGRAM

12 Months Ended

Dec. 31, 2025

The following table summarizes our DST Program Loans as of December 31, 2025 and 2024:


($ in thousands)	Outstanding Principal		Unrealized Loss, Net (1)		Book Value		Weighted-Average Interest Rate		Weighted-Average Remaining Life (Years)
As of December 31, 2025
DST Program Loans, carried at cost	$	20,637	N/A		$	20,637	6.1	%	7.8
DST Program Loans, carried at fair value	170,865		—		170,865		6.6		9.2
Total	$	191,502	$	—	$	191,502	6.6	%	9.1
As of December 31, 2024
DST Program Loans, carried at cost	$	49,785	N/A		$	49,785	6.0	%	8.5
DST Program Loans, carried at fair value	71,085		(17)		71,068		7.0		9.6
Total	$	120,870	$	(17)	$	120,853	6.6	%	9.1

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(1)Represents cumulative unrealized gain or loss on DST Program Loans carried at fair value.

The following table summarizes our financing obligations, net as of December 31, 2025 and 2024:


(in thousands)	DST Interests Sold, Net (1)		Unamortized Program Costs		Total Appreciation (2)		Unrealized Gain, Net (3)		Book Value
As of December 31, 2025
Financing obligations, carried at cost	$	223,800	$	(17)	$	—	N/A		$	223,783
Financing obligations, carried at fair value	2,070,389		N/A		N/A		$	55,878	2,126,267
Total	$	2,294,189	$	(17)	$	—	$	55,878	$	2,350,050
As of December 31, 2024
Financing obligations, carried at cost	$	507,607	$	(373)	$	—	N/A		$	507,234
Financing obligations, carried at fair value	877,284		N/A		N/A		$	1,102	878,386
Total	$	1,384,891	$	(373)	$	—	$	1,102	$	1,385,620

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(1)DST Interests sold are presented net of upfront fees.

(2)Represents cumulative financing obligation liability appreciation on financing obligations carried at cost.

(3)Represents cumulative unrealized gain or loss on financing obligations carried at fair value.

The following table presents our DST Program activity for the years ended December 31, 2025, 2024, and 2023:


	For the Year Ended December 31,
(in thousands)	2025		2024		2023
DST Interests sold	$	1,219,305	$	797,022	$	479,155
DST Interests financed by DST Program Loans	99,780		63,332		51,360
Income earned from DST Program Loans (1)	10,949		6,793		5,155
Unrealized gain (loss) on DST Program Loans (2)	17		(17)		—
Unrealized (loss) gain on financing obligations (3)	(54,776)		(2,034)		932
Gain on extinguishment of financing obligations (4)	33,407		41,050		—
Decrease in financing obligation liability appreciation (5)	—		(69)		(459)
Rent obligation incurred under master lease agreements (5)	92,937		62,549		57,916

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(1)Included in other income and expenses on the consolidated statements of operations.

(2)Included in gain (loss) on financial assets on the consolidated statements of operations.

(3)Included in (loss) gain on financing obligations on the consolidated statements of operations.

(4)Included in gain (loss) on extinguishment of debt and financing obligations, net on the consolidated statements of operations and recorded upon extinguishment of our financing obligations in accordance with our UPREIT structure.

(5)Included in interest expense on the consolidated statements of operations

We record DST Interests as financing obligation liabilities for accounting purposes. If we exercise our option to reacquire a DST Property by issuing OP Units, cash or a combination of OP Units and cash in exchange for DST Interests, we extinguish the related financing obligation liability and DST Program Loans and record the issuance of the OP Units as an issuance of equity. During the years ended December 31, 2025, 2024 and 2023, 27.8 million OP Units, 83.6 million OP Units and 27.3 million OP Units, respectively, were issued in exchange for DST Interests for a net investment of $220.7 million, $639.1 million and $228.3 million, respectively, in accordance with our UPREIT structure. In addition, we paid $0.5 million and $3.9 million in cash in exchange for DST Interests during the years ended December 31, 2025 and 2024, respectively. There was no cash paid in exchange for DST Interests during the year ended December 31, 2023

Refer to “Note 14” for detail relating to the fees paid to the Advisor, Ares Management Capital Markets LLC, the dealer manager for our securities offerings (the “Dealer Manager”) and their affiliates for raising capital through the DST Program.