Investments in Real Estate

6 Months Ended

Jun. 30, 2026

A.Acquisitions of Real Estate

Below is a summary of our acquisitions for the six months ended June 30, 2026 (unaudited):


	Number of Properties	Investment ($ in millions)	Weighted Average Lease Term (Years)
Acquisitions
U.S. real estate	198	$2,137.9	11.0
Europe real estate	48	1,245.8	8.0
Total real estate acquisitions	246	$3,383.7	9.9
Real estate properties under development
U.S. real estate	45	$75.8	16.9
Europe real estate	37	118.0	10.0
Total real estate properties under development	82	$193.8	12.7
Total (1)	328	$3,577.5	10.0

(1)Our clients occupying the new properties are 51.8% retail, 48.1% industrial, and 0.1% other property types based on net operating income.

Approximately 48% of the net operating income generated from acquisitions during the six months ended June 30, 2026 was from investment

grade rated clients, their subsidiaries, or affiliated companies at the date of acquisition.

The aggregate purchase price, including properties acquired through takeout financing and reported in properties

under development in the table above, was allocated as follows (in millions):


	Acquisitions - USD	Acquisitions - Sterling	Acquisitions - Euro
Land	$390.8	£136.9	€139.0
Buildings and improvements	1,474.2	256.3	356.4
Lease intangible assets (1)	275.9	85.7	65.7
Other assets (2)	44.3	—	—
Lease intangible liabilities (3)	(37.4)	(7.8)	(19.0)
Other liabilities (4)	(10.6)	—	(1.6)
Total	$2,137.2	£471.1	€540.5

(1)The weighted average amortization period for acquired lease intangible assets is 10.7 years.

(2)USD-denominated other assets consists entirely of $44.3 million of financing receivables allocated to sale-leaseback transactions.

(3)The weighted average amortization period for acquired lease intangible liabilities is 13.5 years.

(4)USD-denominated other liabilities consists entirely of $10.6 million deferred rent on certain below-market leases.

The aggregate Sterling-denominated purchase price of the assets acquired during the six months ended June 30,

2026 included contingent consideration obligations related to leasing activities for four U.K. retail park properties

acquired during this period. At June 30, 2026, we had accrued $11.5 million for remaining amounts deemed

probable and estimable.

The properties acquired during the six months ended June 30, 2026 generated total revenue and net income of

$49.8 million and $17.6 million, respectively.

B.Investments in Existing Properties

During the six months ended June 30, 2026, we capitalized costs of $81.0 million on existing properties in our

portfolio, consisting of $76.2 million for building improvements, $4.7 million for re-leasing costs, and $0.1 million for

recurring capital expenditures. In comparison, during the six months ended June 30, 2025, we capitalized costs of

$62.2 million on existing properties in our portfolio, consisting of $59.1 million for building improvements, $2.9

million for re-leasing costs, and $0.2 million for recurring capital expenditures.

C.Properties with Existing Leases

The value of the in-place and above-market leases is recorded to 'Lease intangible assets, net' on our consolidated

balance sheets, and the value of the below-market leases is recorded to 'Lease intangible liabilities, net' on our

consolidated balance sheets.

The values of the in-place leases are amortized as depreciation and amortization expense. The amounts amortized

to expense for all of our in-place leases for the six months ended June 30, 2026 and 2025 were $413.7 million and

$453.5 million, respectively.

The values of the above-market and below-market leases are amortized over the term of the respective leases,

including any bargain renewal options, as an adjustment to rental revenue in our consolidated statements of income

and comprehensive income. The amounts amortized as a net decrease to rental revenue for capitalized above-

market and below-market leases for the six months ended June 30, 2026 and 2025 were $15.0 million and $9.3

million, respectively.

The following table presents the estimated impact during the next five years and thereafter related to the

amortization of the above-market and below-market lease intangibles and the amortization of the in-place lease

intangibles as of June 30, 2026 (in thousands):


	Net increase (decrease) to rental revenue	Increase to amortization expense
2026	$(21,066)	$382,061
2027	(40,628)	676,275
2028	(32,435)	577,552
2029	(29,335)	497,831
2030	(17,337)	418,795
Thereafter	333,708	1,797,923
Total	$192,907	$4,350,437

D.Gain on Sales of Real Estate

The following table summarizes our properties sold during the periods indicated below (dollars in millions):