EXHIBIT 99.2
Q4 | 2023 This presentation contains certain financial information not derived in accordance with the United States generally accepted accounting principles (GAAP). These items include, but are not limited to, earnings before interest, income taxes, depreciation and amortization (EBITDA), EBITDA for real estate (EBITDAre), earnings before interest, income taxes, depreciation, amortization, rent and management fees (EBITDARM), funds from operations (FFO), core funds from operations (Core FFO), adjusted funds from operations (AFFO), liquidity, net debt, net operating income (NOI), and cash NOI, as well as ratios derived from the foregoing. These measures (and the methodologies used to derive them) may not be comparable to those used by other companies. Refer to the glossary for a detailed explanation of these terms and reconciliations to the most directly comparable GAAP measures, as well as others appearing in the supplement. Management considers each item an important supplemental measure of operating and financial performance and believes they are frequently used by interested parties in the evaluation of real estate investment trusts. These measures should not be considered as alternatives, or superior measures, to net income or loss as an indicator of the Company's performance and should be considered only as a supplement to net income or loss and cash flows from operating, investing or financing activities as measures of profitability and/or liquidity, computed in accordance with GAAP. Certain statements contained herein, other than historical fact, may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provided by the same. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties. No forward-looking statement is intended to, nor shall it, serve as a guarantee of future performance. You can identify the forward-looking statements by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will” and other similar terms and phrases, including references to extensions of the Company's term loan and revolving line of credit. Forward-looking statements are subject to various risks and uncertainties and factors that could cause actual results to differ materially from the expectations of Sila Realty Trust, Inc. (the "Company"), and investors should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond the Company’s control and could materially affect the Company’s results of operations, financial condition, cash flows, performance or future achievements or events, including those described under the section entitled Part I, Item 1A. “Risk Factors” of the Company's 2023 Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Forward Looking Statements Non-GAAP Measures Unaudited Financial Information Disclosures All quarterly information presented in this supplement is unaudited and should be read in conjunction with the Company’s audited consolidated financial statements (and the notes thereto) included in the Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on March 6, 2024. See the glossary for a description of the Company's non-GAAP financial and operating metrics.
Q4 | 2023 Section Page Corporate Address 1001 Water Street Suite 800 Tampa, FL 33602 Transfer Agent By Regular Mail: Computershare P.O. Box 43007 Providence, RI 02940-3007 By Overnight Delivery: Computershare 150 Royall Street, Suite 101 Canton, MA 02021 Contact Information Investor Support 833-404-4107 Miles Callahan, Senior Vice President of Capital Markets and Investor Relations IR@silarealtytrust.com www.silarealtytrust.com Quarterly Financial Summary ..................................................................... 3 Financial Statistics and Ratios ................................................................... 4 Consolidated Balance Sheets .................................................................... 5 Consolidated Statements of Net (Loss) Income ................................... 6 Reconciliations of Non-GAAP Measures - FFO, Core FFO, and AFFO ................................................................................................................. 7 Reconciliations of Non-GAAP Measures - EBITDA and EBITDAre ... 8 Reconciliations of Non-GAAP Measures - Net Operating Income (NOI) ................................................................................................................. 9 Same Store Cash NOI and Leasing Trends ............................................ 10 Debt .................................................................................................................. 11 Acquisitions and Dispositions .................................................................... 12 Property Map .................................................................................................. 13 Real Estate Diversification .......................................................................... 14 Portfolio ........................................................................................................... 16 Glossary ........................................................................................................... 20 Supplemental Information as of December 31, 2023 See the glossary for a description of the Company's non-GAAP financial and operating metrics.
Q4 | 2023 Three Months Ended Financial Results December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Rental revenue $ 45,914 $ 48,542 $ 44,965 $ 49,644 $ 43,905 Net (loss) income attributable to common stockholders $ (8,996) $ 14,983 $ 3,855 $ 14,200 $ (34,762) Net (loss) income per common share - diluted $ (0.04) $ 0.06 $ 0.02 $ 0.06 $ (0.15) EBITDAre $ 33,560 $ 38,732 $ 34,686 $ 38,697 $ 33,864 FFO $ 27,366 $ 33,055 $ 28,999 $ 33,054 $ 28,005 FFO per common share - diluted $ 0.11 $ 0.15 $ 0.13 $ 0.14 $ 0.12 Core FFO $ 30,928 $ 33,377 $ 31,032 $ 33,510 $ 30,721 Core FFO per common share - diluted $ 0.12 $ 0.15 $ 0.14 $ 0.15 $ 0.14 AFFO $ 32,697 $ 34,128 $ 31,585 $ 34,247 $ 30,975 AFFO per common share - diluted $ 0.14 $ 0.15 $ 0.14 $ 0.15 $ 0.14 As of Portfolio Metrics December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Number of properties1 131 132 132 131 132 Rentable square feet (in thousands) 5,114 5,487 5,420 5,395 5,535 Weighted average rent escalation 2.2% 2.1% 2.1% 2.1% 2.2% Weighted average leased rate 99.4% 99.4% 99.6% 99.4% 99.5% Weighted average remaining lease term 8.5 years 8.8 years 9.1 years 9.2 years 9.3 years The following tables summarize the Company's quarterly financial results and portfolio metrics. | Page (1) Excludes two undeveloped land parcels. Quarterly Financial Summary (dollars in thousands, except share data and per share amounts) 3 See the glossary for a description of the Company's non-GAAP financial and operating metrics.
Q4 | 2023 Three Months Ended Interest Coverage Ratio December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Interest expense $ 6,171 $ 5,653 $ 5,664 $ 5,622 $ 5,833 EBITDAre 33,560 38,732 34,686 38,697 33,864 Interest coverage ratio 5.4 x 6.9 x 6.1 x 6.9 x 5.8 x As of Net Debt Ratios December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Principal debt outstanding $ 525,000 $ 605,000 $ 565,000 $ 575,000 $ 583,000 Less: cash and cash equivalents 202,019 14,563 21,497 22,230 12,917 Net debt 322,981 590,437 543,503 552,770 570,083 EBITDAre annualized1 152,580 148,512 143,832 131,172 136,212 Net debt to EBITDAre ratio 2.1 x 4.0 x 3.8 x 4.2 x 4.2 x Net debt $ 322,981 $ 590,437 $ 543,503 $ 552,770 $ 570,083 Adjusted fair value of real estate investments 2,001,202 2,447,094 2,387,442 2,383,635 2,400,885 Net debt leverage ratio 16.1 % 24.1 % 22.8 % 23.2 % 23.7 % Financial Metrics December 31, 2023 Other Key Metrics December 31, 2023 Net debt leverage ratio 16.1 % Total real estate investments at cost $ 2,138,585 Net debt to EBITDAre ratio 2.1 x Net asset value per share3 $ 7.48 Interest coverage ratio 5.4 x Class A, I and T annualized distribution per share $ 0.40 Liquidity2 $ 702,019 (1) EBITDAre is annualized by taking the current month amount, removing lease termination income, severance, accelerated stock-based compensation and write-off of straight- line rent receivables related to prior periods, and multiplying by twelve months. (2) Liquidity represents cash and cash equivalents of $202.0 million and borrowing base availability on the Company’s credit facility of $500.0 million as of December 31, 2023. (3) The estimated net asset value per share was calculated as of October 31, 2023. Financial Statistics and Ratios (dollars in thousands, except per share amounts) | Page4 See the glossary for a description of the Company's non-GAAP financial and operating metrics.
Q4 | 2023 December 31, 2023 December 31, 2022 ASSETS Real estate: Land $ 157,821 $ 163,419 Buildings and improvements, less accumulated depreciation of $227,156 and $209,118, respectively 1,470,831 1,716,663 Total real estate, net 1,628,652 1,880,082 Cash and cash equivalents 202,019 12,917 Intangible assets, less accumulated amortization of $102,456 and $90,239, respectively 134,999 167,483 Goodwill 17,700 21,710 Right-of-use assets 36,384 37,443 Other assets 79,825 100,167 Total assets $ 2,099,579 $ 2,219,802 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Credit facility, net of deferred financing costs of $1,847 and $2,412, respectively $ 523,153 $ 580,588 Accounts payable and other liabilities 30,381 30,619 Intangible liabilities, less accumulated amortization of $7,417 and $5,923, respectively 10,452 11,946 Lease liabilities 41,158 41,554 Total liabilities 605,144 664,707 Stockholders’ equity: Preferred stock, $0.01 par value per share, 100,000,000 shares authorized; none issued and outstanding — — Common stock, $0.01 par value per share, 510,000,000 shares authorized; 244,617,615 and 241,425,332 shares issued, respectively; 227,934,254 and 226,255,969 shares outstanding, respectively 2,279 2,263 Additional paid-in capital 2,042,741 2,024,176 Distributions in excess of accumulated earnings (567,188) (499,334) Accumulated other comprehensive income 16,603 27,990 Total stockholders’ equity 1,494,435 1,555,095 Total liabilities and stockholders’ equity $ 2,099,579 $ 2,219,802 | Page5 Consolidated Balance Sheets (dollars in thousands, except share data) See the glossary for a description of the Company's non-GAAP financial and operating metrics.
Q4 | 2023 (Unaudited) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Revenue: Rental revenue $ 45,914 $ 43,905 $ 189,065 $ 179,986 Expenses: Rental expenses 5,468 4,731 20,196 17,950 General and administrative expenses 7,418 5,313 23,896 22,079 Depreciation and amortization 18,841 22,756 74,293 77,199 Impairment losses 17,544 40,037 24,252 47,424 Total operating expenses 49,271 72,837 142,637 164,652 Gain on real estate dispositions — — 22 460 Interest and other income 532 7 702 305 Interest expense 6,171 5,837 23,110 24,077 Net (loss) income attributable to common stockholders $ (8,996) $ (34,762) $ 24,042 $ (7,978) Weighted average number of common shares outstanding: Basic 227,806,489 226,112,737 227,199,543 225,320,043 Diluted 227,806,489 226,112,737 229,046,546 225,320,043 Net (loss) income per common share attributable to common stockholders: Basic $ (0.04) $ (0.15) $ 0.11 $ (0.03) Diluted $ (0.04) $ (0.15) $ 0.10 $ (0.03) Distributions declared per common share $ 0.10 $ 0.10 $ 0.40 $ 0.40 | Page6 Consolidated Statements of Net (Loss) Income (dollars in thousands, except share data and per share amounts) See the glossary for a description of the Company's non-GAAP financial and operating metrics.
Q4 | 2023 Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net (loss) income attributable to common stockholders $ (8,996) $ (34,762) $ 24,042 $ (7,978) Adjustments: Depreciation and amortization of real estate assets 18,818 22,730 74,202 77,099 Gain on real estate dispositions — — (22) (460) Impairment losses 17,544 40,037 24,252 47,424 FFO $ 27,366 $ 28,005 $ 122,474 $ 116,085 Adjustments: Severance 1,318 — 1,401 889 Write-off of straight-line rent receivables related to prior periods 1,650 2,434 3,268 2,434 Accelerated stock-based compensation 318 — 318 402 Amortization of above (below) market lease intangibles, including ground leases 276 282 1,386 1,044 Loss on extinguishment of debt — — — 3,367 Core FFO $ 30,928 $ 30,721 $ 128,847 $ 124,221 Adjustments: Deferred rent 456 738 1,644 1,535 Straight-line rent adjustments (1,357) (2,042) (5,465) (9,695) Amortization of deferred financing costs 425 412 1,665 1,679 Stock-based compensation 2,245 1,146 5,966 3,778 AFFO $ 32,697 $ 30,975 $ 132,657 $ 121,518 Net income per common share - diluted $ (0.04) $ (0.15) $ 0.10 $ (0.03) FFO per common share - diluted $ 0.11 $ 0.12 $ 0.53 $ 0.51 Core FFO per common share - diluted $ 0.12 $ 0.14 $ 0.56 $ 0.55 AFFO per common share - diluted $ 0.14 $ 0.14 $ 0.58 $ 0.54 | Page7 Reconciliations of Non-GAAP Measures - FFO, Core FFO and AFFO (dollars in thousands, except share data and per share amounts) See the glossary for a description of the Company's non-GAAP financial and operating metrics.
Q4 | 2023 Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net (loss) income attributable to common stockholders $ (8,996) $ (34,762) $ 24,042 $ (7,978) Adjustments: Interest expense1 6,171 5,833 23,110 24,077 Depreciation and amortization 18,841 22,756 74,293 77,199 EBITDA $ 16,016 $ (6,173) $ 121,445 $ 93,298 Gain on real estate dispositions — — (22) (460) Impairment losses 17,544 40,037 24,252 47,424 EBITDAre $ 33,560 $ 33,864 $ 145,675 $ 140,262 (1) Includes loss on extinguishment of debt of $3.4 million for the year ended December 31, 2022, in connection with the repayment of our prior credit facility. | Page8 Reconciliations of Non-GAAP Measures - EBITDA and EBITDAre (dollars in thousands) See the glossary for a description of the Company's non-GAAP financial and operating metrics.
Q4 | 2023 Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Rental revenue $ 45,914 $ 43,905 $ 189,065 $ 179,986 Rental expenses (5,468) (4,731) (20,196) (17,950) Net operating income $ 40,446 $ 39,174 $ 168,869 $ 162,036 Adjustments: Straight-line rent adjustments, net of write-offs 293 392 (2,197) (7,261) Amortization of above (below) market lease intangibles, including ground leases 276 282 1,386 1,044 Internal property management fee 1,332 1,268 5,250 5,220 Deferred rent 456 738 1,644 1,535 Cash NOI $ 42,803 $ 41,854 $ 174,952 $ 162,574 Cash NOI margin1 93.2 % 95.3 % 92.5 % 90.3 % Cash NOI yield2 8.0 % 7.1 % 8.3 % 7.1 % (1) Calculated by dividing Cash NOI by rental revenue. (2) Calculated using annualized Cash NOI for the three months ended December 31, 2023 and 2022, respectively, (determined by multiplying actual Cash NOI excluding lease termination income by four quarters, then adding lease termination income collected for the quarter) to weighted average total real estate investments at cost. Calculated using actual Cash NOI for the year ended December 31, 2023 and 2022, respectively, to weighted average total real estate investments at cost. | Page9 Reconciliations of Non-GAAP Measures - Net Operating Income (NOI) (dollars in thousands) See the glossary for a description of the Company's non-GAAP financial and operating metrics.
Q4 | 2023 128 Properties1 (1) Each period's results reflect only properties owned and operated for the entirety of all calendar periods being compared. Sa m e St or e C as h N et O pe ra tin g In co m e End of Period Leased Rate $37.6 $37.0 $38.2 $38.1 $38.4 99.5% 99.3% 99.6% 99.4% 99.4% 4Q22 1Q23 2Q23 3Q23 4Q23 $0M $9M $18M $27M $36M $45M 40% 50% 60% 70% 80% 90% 100% | Page10 Same Store Cash NOI and Leasing Trends See the glossary for a description of the Company's non-GAAP financial and operating metrics.
Q4 | 2023 $250M $275M 2023 2024 2025 2026 2027 2028+ $0M $125M $250M $375M $500M Unsecured Credit Facility Key Covenants Required Actual Ratio of total indebtedness to total gross asset value ≤ 60.0% 22.4 % Ratio of secured indebtedness to total gross asset value ≤ 30.0% 0.0 % Ratio of adjusted EBITDA to fixed charges ≥ 1.50x 6.98 x Ratio of adjusted NOI from unencumbered properties under the credit facility to total unsecured interest expense ≥ 1.75x 4.07 x The table above includes a summary of key financial covenants for the Company's credit facility, as defined and calculated within the terms of the agreements. These calculations are presented to reflect the Company's compliance with the covenants and are not intended to be measures of the Company's liquidity or performance. Debt Summary Hedged debt Amount Rate1 % of Total Credit facility term loans, fixed through interest rate swaps $ 525.0 3.3 % 100.0 % Total debt $ 525.0 3.3 % 100.0 % Debt Maturities (1) Weighted average interest rate as of December 31, 2023. (2) The 2024 term loan, at the Company's election, may be extended for a period of six-months on no more than two occasions, subject to the satisfaction of certain conditions, including the payment of an extension fee. We currently meet these conditions and therefore may exercise our option to extend the maturity date if we so choose. (3) The revolving line of credit, at the Company's election, may be extended for a period of six-months on no more than two occasions, subject to the satisfaction of certain conditions, including the payment of an extension fee. Credit Facility Term Loan - Fixed Through Swaps 2 3 | Page11 See the glossary for a description of the Company's non-GAAP financial and operating metrics. Debt (dollars in millions) Re vo lv er (U nd ra w n $5 00 M )
Q4 | 2023 2023 Acquisitions Date Acquired Property Rentable Square Feet Market State Acquisition Price (in thousands) 06/15/2023 West Palm Beach Healthcare Facility 25,150 Miami FL $ 9,920 09/27/2023 Burr Ridge Healthcare Facility 104,912 Chicago IL 59,902 Total 2023 Acquisitions 130,062 $ 69,822 2023 Dispositions Date Disposed Property Rentable Square Feet Market State Sale Price (in thousands) 03/31/2023 Cincinnati Healthcare Facility II 139,428 Cincinnati OH $ 12,500 09/29/2023 Harlingen Healthcare Facility 38,111 Brownsville TX 250 12/14/2023 Webster Healthcare Facility II 373,070 Houston TX 258,357 Total 2023 Dispositions 550,609 $ 271,107 | Page12 See the glossary for a description of the Company's non-GAAP financial and operating metrics. Acquisitions and Dispositions
Q4 | 2023 (1) Surgical and Specialty Facilities includes Surgical Facilities, Long-Term Acute Care Hospitals, Behavioral, Transitional Care, and Short-Term Acute Care Hospitals. (2) Based on annualized December 2023 contractual base rent. (3) Excludes two undeveloped land parcels. | Page13 See the glossary for a description of the Company's non-GAAP financial and operating metrics. Property Map (as of December 31, 2023) 39.8% 27.2% 33.0% Property Diversification Medical Outpatient Building Inpatient Rehabilitation Facility Surgical and Specialty Facilities1 68.0% 13.7% 18.3% Properties3Annualized Base Rent2 89.3% 10.7% 90.7% 9.3% Annualized Base Rent2 Properties3 Single/Multi-Tenant Concentration Single Tenant Multi-Tenant
Q4 | 2023 8.0% 7.3% 5.4% 4.3% 4.0% 3.5% 3.3% 3.0% 2.9% 2.8% Dallas Oklahoma City San Antonio Akron Des Moines Philadelphia Riverside Houston Chicago Austin Total Statistics As of December 31, 2023 2022 Rentable square feet 5,113,959 5,534,508 Number of properties1 131 132 Weighted average annualized base rent per leased square foot $31.75 $30.75 Weighted average remaining lease term 8.5 years 9.3 years Weighted average leased rate 99.4 % 99.5 % Top 10 Markets2 As of December 31, 2023 As of December 31, 2022 Rentable Square Feet % Leased4 Rentable Square Feet % Leased4 Dallas 312,590 100.0 % 312,590 100.0 % Oklahoma City 479,137 100.0 % 479,137 100.0 % San Antonio 293,782 96.3 % 293,782 100.0 % Akron 191,269 100.0 % 191,269 100.0 % Des Moines 244,548 100.0 % 244,548 100.0 % Philadelphia 89,139 100.0 % 89,139 100.0 % Riverside 73,643 100.0 % 73,643 100.0 % Houston 117,672 100.0 % 490,742 100.0 % Chicago 129,634 100.0 % 24,722 100.0 % Austin 125,269 100.0 % 125,271 100.0 % Total 2,056,683 99.5 % 2,324,843 100.0 % Top 10 Markets2,3 (1) Excludes two undeveloped land parcels as of December 31, 2023 and December 31, 2022. (2) Based on annualized December 2023 contractual base rent. (3) Represents each market's annualized December 2023 contractual base rent as a percentage of total annualized December 2023 contractual base rent. (4) Weighted average based on rentable square feet. | Page14 See the glossary for a description of the Company's non-GAAP financial and operating metrics. Real Estate Diversification
Q4 | 2023 15.8% 8.0% 7.0% 5.9% 5.7% 5.6% 5.0% 4.6% 3.4% 2.8% Post Acute Medical, LLC Baylor Scott and White Health Community Health Systems, Inc. Integris Health, Inc. Genesis Care Pty Ltd Trinity Health Select Medical Holdings Corporation Surgery Partners, Inc. Vibra Healthcare, LLC Cleveland Clinic Foundation 22.3% 37.4% 40.3% A nn ua liz ed B as e Re nt Square Feet 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Thereafter $0M $10M $20M $30M $40M $50M $60M 0.0M 0.5M 1.0M 1.5M 2.0M 2.5M Tenant Diversification1,2 Lease Expirations (1) Based on annualized December 2023 contractual base rent. (2) Includes tenants under common control. (3) All credit ratings are from major credit rating agencies. Parent credit rating is used where tenant is not rated. (4) Specialty Facility includes Behavioral, Transitional Care, and Short-Term Acute Care Hospitals. (5) Included within non-reporting properties is the Company’s portfolio of properties operated by Genesis Care Pty Limited, which filed for Chapter 11 bankruptcy protection in June 2023. Annualized Base Rent Expiring Leased Square Feet Tenant Credit Concentrations1,3 Investment Grade Rated Tenant/ Guarantor or Affiliate Rated Tenant/Guarantor or Affiliate Non-Rated Tenant/Guarantor 1 Real Estate Diversification | Page15 See the glossary for a description of the Company's non-GAAP financial and operating metrics. % of ABR1 EBITDARM Coverage Medical Outpatient Building 16.3% 5.73x Inpatient Rehabilitation Facility 23.8% 3.37x Long-Term Acute Care Hospital 9.1% 2.96x Surgical Facility 14.7% 4.59x Specialty Facility4 3.1% 5.51x Reporting Properties 67.0% 4.26x Non-Reporting Properties5 33.0% Total Portfolio 100.0% EBITDARM Coverage Ratio
Q4 | 2023 Market Property Name State Rentable Square Feet Date Acquired % Leased Property Subtype Akron Akron Healthcare Facility OH 98,705 10/4/2019 100.0 % Medical Outpatient Building Akron Akron Healthcare Facility II OH 38,564 10/4/2019 100.0 % Medical Outpatient Building Akron Akron Healthcare Facility III OH 54,000 10/4/2019 100.0 % Long-Term Acute Care Hospital Alexandria Alexandria Healthcare Facility LA 15,600 10/4/2019 100.0 % Medical Outpatient Building Appleton Appleton Healthcare Facility WI 7,552 10/4/2019 100.0 % Medical Outpatient Building Augusta Augusta Healthcare Facility ME 51,000 7/22/2015 100.0 % Medical Outpatient Building Augusta Oakland Healthcare Facility ME 20,000 7/22/2015 100.0 % Medical Outpatient Building Austin Austin Healthcare Facility TX 66,095 3/31/2017 100.0 % Inpatient Rehabilitation Facility Austin Austin Healthcare Facility II TX 18,273 10/4/2019 100.0 % Medical Outpatient Building Austin Luling Healthcare Facility TX 40,901 7/30/2015 100.0 % Long-Term Acute Care Hospital Beaumont Beaumont Healthcare Facility TX 61,000 3/31/2017 100.0 % Inpatient Rehabilitation Facility Beckley Fairlea Healthcare Facility WV 5,200 10/4/2019 100.0 % Medical Outpatient Building Boston Stoughton Healthcare Facility MA 180,744 12/23/2014 100.0 % Long-Term Acute Care Hospital Bremerton Silverdale Healthcare Facility WA 26,127 8/25/2017 100.0 % Medical Outpatient Building Bremerton Silverdale Healthcare Facility II WA 19,184 9/20/2017 100.0 % Medical Outpatient Building Chicago Aurora Healthcare Facility IL 24,722 3/30/2017 100.0 % Medical Outpatient Building Chicago Burr Ridge Healthcare Facility IL 104,912 9/27/2023 100.0 % Medical Outpatient Building Cincinnati Cincinnati Healthcare Facility OH 14,868 10/29/2014 100.0 % Medical Outpatient Building Cincinnati Cincinnati Healthcare Facility III OH 41,600 7/22/2015 100.0 % Medical Outpatient Building Cincinnati Florence Healthcare Facility KY 41,600 7/22/2015 100.0 % Medical Outpatient Building Corpus Christi Corpus Christi Healthcare Facility TX 25,102 12/22/2016 100.0 % Medical Outpatient Building Covington Covington Healthcare Facility LA 43,250 10/4/2019 100.0 % Long-Term Acute Care Hospital Dallas Allen Healthcare Facility TX 42,627 3/31/2017 100.0 % Inpatient Rehabilitation Facility Dallas Carrollton Healthcare Facility TX 21,990 4/27/2018 100.0 % Medical Outpatient Building Dallas Dallas Healthcare Facility TX 62,390 10/4/2019 100.0 % Surgical Facility Dallas Fort Worth Healthcare Facility TX 83,464 12/31/2014 100.0 % Surgical Facility Dallas Fort Worth Healthcare Facility II TX 8,268 12/31/2014 100.0 % Medical Outpatient Building Dallas Fort Worth Healthcare Facility III TX 36,800 12/23/2015 100.0 % Medical Outpatient Building Dallas Frisco Healthcare Facility TX 57,051 10/4/2019 100.0 % Inpatient Rehabilitation Facility Denver Denver Healthcare Facility CO 131,210 10/4/2019 100.0 % Long-Term Acute Care Hospital Des Moines Clive Healthcare Facility IA 58,156 11/26/2018 100.0 % Medical Outpatient Building Des Moines Clive Healthcare Facility II IA 63,224 12/8/2021 100.0 % Medical Outpatient Building Des Moines Clive Healthcare Facility III IA 33,974 12/8/2021 100.0 % Medical Outpatient Building Des Moines Clive Healthcare Facility IV IA 35,419 12/8/2021 100.0 % Medical Outpatient Building Des Moines Clive Undeveloped Land IA — 12/8/2021 — % Undeveloped Land Des Moines Clive Undeveloped Land II IA — 12/8/2021 — % Undeveloped Land Des Moines Grimes Healthcare Facility IA 14,669 2/19/2020 100.0 % Medical Outpatient Building Des Moines Indianola Healthcare Facility IA 18,116 9/26/2018 100.0 % Medical Outpatient Building Des Moines Indianola Healthcare Facility II IA 20,990 9/26/2018 100.0 % Medical Outpatient Building Destin Crestview Healthcare Facility FL 5,685 10/4/2019 100.0 % Medical Outpatient Building Destin Fort Walton Beach Healthcare Facility FL 9,017 10/4/2019 100.0 % Medical Outpatient Building | Page16 See the glossary for a description of the Company's non-GAAP financial and operating metrics. Portfolio (as of December 31, 2023)
Q4 | 2023 Market Property Name State Rentable Square Feet Date Acquired % Leased Property Subtype Destin Santa Rosa Beach Healthcare Facility FL 5,000 10/4/2019 100.0 % Medical Outpatient Building Elkhart Goshen Healthcare Facility IN 15,462 10/4/2019 100.0 % Medical Outpatient Building Fayetteville Fayetteville Healthcare Facility AR 55,740 10/4/2019 100.0 % Surgical Facility Fort Myers Bonita Springs Healthcare Facility FL 9,800 10/4/2019 100.0 % Medical Outpatient Building Fort Myers Fort Myers Healthcare Facility FL 32,148 10/4/2019 100.0 % Medical Outpatient Building Fort Myers Fort Myers Healthcare Facility II FL 47,089 10/4/2019 100.0 % Medical Outpatient Building Fort Myers Lehigh Acres Healthcare Facility FL 5,746 10/4/2019 100.0 % Medical Outpatient Building Frankfort Frankfort Healthcare Facility KY 4,000 10/4/2019 100.0 % Medical Outpatient Building Grand Rapids Grand Rapids Healthcare Facility MI 108,014 12/7/2016 83.5 % Medical Outpatient Building Green Bay Bellevue Healthcare Facility WI 5,838 10/4/2019 100.0 % Medical Outpatient Building Green Bay De Pere Healthcare Facility WI 7,100 10/4/2019 100.0 % Medical Outpatient Building Green Bay Howard Healthcare Facility WI 7,552 10/4/2019 100.0 % Medical Outpatient Building Green Bay Sturgeon Bay Healthcare Facility WI 3,100 10/4/2019 100.0 % Medical Outpatient Building Hammond Hammond Healthcare Facility LA 63,000 10/4/2019 100.0 % Surgical Facility Hammond Hammond Healthcare Facility II LA 23,835 10/4/2019 100.0 % Long-Term Acute Care Hospital Hot Springs Hot Springs Healthcare Facility AR 8,573 10/17/2018 100.0 % Medical Outpatient Building Houston Houston Healthcare Facility TX 13,645 7/31/2014 100.0 % Medical Outpatient Building Houston Houston Healthcare Facility III TX 16,217 10/4/2019 100.0 % Medical Outpatient Building Houston Katy Healthcare Facility TX 34,296 6/8/2018 100.0 % Specialty Facility Houston Webster Healthcare Facility TX 53,514 6/5/2015 100.0 % Inpatient Rehabilitation Facility Indianapolis Greenwood Healthcare Facility IN 53,560 4/19/2021 100.0 % Inpatient Rehabilitation Facility Jacksonville Jacksonville Healthcare Facility FL 13,082 10/4/2019 100.0 % Medical Outpatient Building Kansas City Overland Park Healthcare Facility KS 54,568 2/17/2015 100.0 % Inpatient Rehabilitation Facility Lafayette Lafayette Healthcare Facility LA 73,824 10/4/2019 100.0 % Surgical Facility Lakeland Winter Haven Healthcare Facility FL 7,560 1/27/2015 100.0 % Medical Outpatient Building Laredo Laredo Healthcare Facility TX 61,677 9/19/2019 100.0 % Medical Outpatient Building Laredo Laredo Healthcare Facility II TX 118,132 9/19/2019 100.0 % Medical Outpatient Building Las Vegas Henderson Healthcare Facility NV 6,685 10/4/2019 100.0 % Medical Outpatient Building Las Vegas Las Vegas Healthcare Facility NV 56,220 6/24/2016 100.0 % Inpatient Rehabilitation Facility Las Vegas Las Vegas Healthcare Facility II NV 6,963 10/4/2019 100.0 % Medical Outpatient Building Little Rock Benton Healthcare Facility AR 104,419 10/17/2018 100.0 % Medical Outpatient Building Little Rock Benton Healthcare Facility II AR 11,350 10/17/2018 100.0 % Medical Outpatient Building Little Rock Bryant Healthcare Facility AR 23,450 10/17/2018 100.0 % Medical Outpatient Building | Page17 See the glossary for a description of the Company's non-GAAP financial and operating metrics. Portfolio (Continued)
Q4 | 2023 Market Property Name State Rentable Square Feet Date Acquired % Leased Property Subtype Little Rock Bryant Healthcare Facility II AR 16,425 8/16/2019 100.0 % Medical Outpatient Building Los Angeles El Segundo Healthcare Facility CA 12,163 10/4/2019 100.0 % Medical Outpatient Building Lubbock Lubbock Healthcare Facility TX 102,143 10/4/2019 100.0 % Surgical Facility Manitowoc Manitowoc Healthcare Facility WI 7,987 10/4/2019 100.0 % Medical Outpatient Building Manitowoc Manitowoc Healthcare Facility II WI 36,090 10/4/2019 100.0 % Medical Outpatient Building Marinette Marinette Healthcare Facility WI 4,178 10/4/2019 100.0 % Medical Outpatient Building Miami West Palm Beach Healthcare Facility FL 25,150 6/15/2023 100.0 % Medical Outpatient Building Oklahoma City Edmond Healthcare Facility OK 17,700 1/20/2016 100.0 % Medical Outpatient Building Oklahoma City Newcastle Healthcare Facility OK 7,424 2/3/2016 100.0 % Medical Outpatient Building Oklahoma City Oklahoma City Healthcare Facility OK 94,076 12/29/2015 100.0 % Specialty Facility Oklahoma City Oklahoma City Healthcare Facility II OK 41,394 12/29/2015 100.0 % Medical Outpatient Building Oklahoma City Oklahoma City Healthcare Facility III OK 5,000 1/27/2016 100.0 % Medical Outpatient Building Oklahoma City Oklahoma City Healthcare Facility IV OK 8,762 1/27/2016 100.0 % Medical Outpatient Building Oklahoma City Oklahoma City Healthcare Facility V OK 43,676 2/11/2016 100.0 % Medical Outpatient Building Oklahoma City Oklahoma City Healthcare Facility VI OK 14,676 3/7/2016 100.0 % Medical Outpatient Building Oklahoma City Oklahoma City Healthcare Facility VII OK 102,978 6/22/2016 100.0 % Surgical Facility Oklahoma City Oklahoma City Healthcare Facility VIII OK 62,857 6/30/2016 100.0 % Surgical Facility Oklahoma City Oklahoma City Healthcare Facility IX OK 34,970 10/4/2019 100.0 % Medical Outpatient Building Oklahoma City Yukon Healthcare Facility OK 45,624 3/10/2022 100.0 % Medical Outpatient Building Omaha Omaha Healthcare Facility NE 40,402 10/14/2015 100.0 % Specialty Facility Oshkosh Oshkosh Healthcare Facility WI 8,717 10/4/2019 100.0 % Medical Outpatient Building Philadelphia Marlton Healthcare Facility NJ 89,139 11/1/2016 100.0 % Inpatient Rehabilitation Facility Pittsburgh Clarion Healthcare Facility PA 33,000 6/1/2015 100.0 % Medical Outpatient Building Pittsburgh Pleasant Hills Healthcare Facility PA 33,712 5/12/2022 100.0 % Medical Outpatient Building Poplar Bluff Poplar Bluff Healthcare Facility MO 71,519 9/19/2019 100.0 % Medical Outpatient Building Prosser Prosser Healthcare Facility I WA 6,000 5/20/2022 100.0 % Medical Outpatient Building Prosser Prosser Healthcare Facility II WA 9,230 5/20/2022 100.0 % Medical Outpatient Building Prosser Prosser Healthcare Facility III WA 5,400 5/20/2022 100.0 % Medical Outpatient Building Providence New Bedford Healthcare Facility(1) MA 70,657 10/4/2019 100.0 % Long-Term Acute Care Hospital Providence North Smithfield Healthcare Facility RI 92,944 10/4/2019 100.0 % Inpatient Rehabilitation Facility Reading Wyomissing Healthcare Facility PA 33,217 7/24/2015 100.0 % Surgical Facility Riverside Palm Desert Healthcare Facility CA 6,963 10/4/2019 100.0 % Medical Outpatient Building Riverside Rancho Mirage Healthcare Facility CA 47,008 3/1/2016 100.0 % Inpatient Rehabilitation Facility Riverside Rancho Mirage Healthcare Facility II CA 7,432 10/4/2019 100.0 % Medical Outpatient Building Riverside Yucca Valley Healthcare Facility CA 12,240 10/4/2019 100.0 % Medical Outpatient Building Saginaw Saginaw Healthcare Facility MI 87,843 12/21/2017 100.0 % Medical Outpatient Building | Page18 See the glossary for a description of the Company's non-GAAP financial and operating metrics. Portfolio (Continued) (1) On January 31, 2024, the Company sold the New Bedford Healthcare Facility for $1.5 million, generating net proceeds of $1.4 million, after transaction costs and other prorations, subject to additional transaction costs paid subsequent to the closing.
Q4 | 2023 Market Property Name State Rentable Square Feet Date Acquired % Leased Property Subtype San Antonio New Braunfels Healthcare Facility TX 27,971 10/4/2019 100.0 % Long-Term Acute Care Hospital San Antonio San Antonio Healthcare Facility TX 44,746 6/29/2017 100.0 % Specialty Facility San Antonio San Antonio Healthcare Facility III TX 50,000 10/4/2019 100.0 % Inpatient Rehabilitation Facility San Antonio San Antonio Healthcare Facility IV TX 113,136 10/4/2019 100.0 % Inpatient Rehabilitation Facility San Antonio San Antonio Healthcare Facility V TX 57,929 10/4/2019 81.3 % Medical Outpatient Building San Diego Escondido Healthcare Facility CA 56,800 7/21/2022 100.0 % Inpatient Rehabilitation Facility Sarasota Lakewood Ranch Healthcare Facility FL 10,919 10/4/2019 100.0 % Medical Outpatient Building Savannah Savannah Healthcare Facility GA 48,184 10/4/2019 100.0 % Long-Term Acute Care Hospital Scranton Wilkes-Barre Healthcare Facility PA 15,996 10/4/2019 100.0 % Medical Outpatient Building Sherman Sherman Healthcare Facility TX 57,576 11/20/2015 100.0 % Surgical Facility Sherman Sherman Healthcare Facility II TX 8,055 11/20/2015 100.0 % Medical Outpatient Building St. Louis Bridgeton Healthcare Facility MO 66,914 10/4/2019 100.0 % Inpatient Rehabilitation Facility Tampa Tampa Healthcare Facility FL 33,822 9/8/2020 100.0 % Medical Outpatient Building Tampa Tampa Healthcare Facility II FL 87,649 7/20/2022 100.0 % Inpatient Rehabilitation Facility Tucson Tucson Healthcare Facility AZ 34,009 9/19/2019 100.0 % Medical Outpatient Building Tucson Tucson Healthcare Facility II AZ 60,913 12/26/2019 100.0 % Inpatient Rehabilitation Facility Tucson Tucson Healthcare Facility III AZ 20,000 12/27/2019 100.0 % Medical Outpatient Building Tucson Tucson Healthcare Facility IV AZ 44,692 12/22/2020 100.0 % Medical Outpatient Building Valdosta Valdosta Healthcare Facility GA 24,750 11/28/2018 100.0 % Medical Outpatient Building Valdosta Valdosta Healthcare Facility II GA 12,745 11/28/2018 100.0 % Medical Outpatient Building Victoria Victoria Healthcare Facility TX 34,297 10/4/2019 100.0 % Inpatient Rehabilitation Facility Victoria Victoria Healthcare Facility II TX 28,752 10/4/2019 100.0 % Long-Term Acute Care Hospital Winston Winston-Salem Healthcare Facility NC 22,200 12/17/2014 100.0 % Medical Outpatient Building | Page19 See the glossary for a description of the Company's non-GAAP financial and operating metrics. Portfolio (Continued)
Q4 | 2023 Contractual Annualized Base Rent The sum of each tenant’s contractual base rent in the last month of the period multiplied by twelve months, unless otherwise specified. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre) These supplemental non-GAAP performance measures are defined as net income or loss, calculated in accordance with GAAP, adjusted for interest expense, income tax expense (benefit), depreciation and amortization. EBITDAre also includes adjustments for impairments of real estate assets and gains or losses from the disposition of properties. EBITDAre is a definition promulgated by the National Association of Real Estate Investment Trusts (NAREIT). The Company believes these metrics are important indicators of the Company’s operating performance and its ability to service debt. The following is a reconciliation of net (loss) income attributable to common stockholders, which is the most directly comparable GAAP financial measure, to EBITDA and EBITDAre for the following quarterly periods (amounts in thousands): Adjusted Fair Value of Real Estate Investments Adjusted fair value of real estate investments is calculated using the real estate values determined as of the most recent NAV (as defined below), adjusted for property acquisitions and dispositions, major capital expenditures, and impairments. Three Months Ended December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Net (loss) income attributable to common stockholders $ (8,996) $ 14,983 $ 3,855 $ 14,200 $ (34,762) Adjustments: Interest expense 6,171 5,653 5,664 5,622 5,833 Depreciation and amortization 18,841 18,097 18,803 18,552 22,756 EBITDA $ 16,016 $ 38,733 $ 28,322 $ 38,374 $ (6,173) Gain on real estate dispositions — (1) — (21) — Impairment losses 17,544 — 6,364 344 40,037 EBITDAre $ 33,560 $ 38,732 $ 34,686 $ 38,697 $ 33,864 Glossary | Page20 Earnings Before Interest, Taxes, Depreciation, Amortization, Rent and Management Fees (EBITDARM) EBITDARM Coverage The Company utilizes EBITDARM, a supplemental non-GAAP performance measure, to evaluate the core operations of our tenants and/or guarantors (together, the “Obligor”) of our properties. An Obligor’s reported EBITDARM may be adjusted for certain non-recurring items or items not core to operations. Management believes such adjustments are reasonable and necessary to evaluate Obligor performance. Most Obligor financial statements are unaudited, and we have not independently verified any financial information received from Obligors and, therefore, we cannot confirm that such information is accurate or complete. Represents the ratio of EBITDARM of our reporting Obligors, divided by either (i) in the case of tenant individual property level reporting, the rent payable to the Company for the related period, or (ii) in the case of tenant multiple property level reporting, or in the case of guarantor reporting, total rent reported in its financial statements. EBITDARM Coverage is one indicator of an Obligor’s ability to generate sufficient cash flows to cover its rental obligations. This ratio is based on the latest financial statements available to the Company and is calculated on a trailing twelve-month basis, when available and appropriate. For reporting purposes, the ratio for each Obligor is then weighted based on the annualized base rent of the reporting property. Properties for which Obligor financial statements are excluded include those (i) that are either not available or not sufficiently detailed, (ii) are not operating or are currently unoccupied, (iii) where the Obligor has filed for bankruptcy, or (iv) properties which are not stabilized. Properties with new operations are considered stabilized only upon the earlier to occur of (i) the Obligor generating a 1.25x EBITDARM Coverage ratio, or (ii) twenty-four months after the property has been open for operations.
Q4 | 2023 Three Months Ended December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Net (loss) income attributable to common stockholders $ (8,996) $ 14,983 $ 3,855 $ 14,200 $ (34,762) Adjustments: Depreciation and amortization of real estate assets 18,818 18,073 18,780 18,531 22,730 Gain on real estate dispositions — (1) — (21) — Impairment losses 17,544 — 6,364 344 40,037 FFO $ 27,366 $ 33,055 $ 28,999 $ 33,054 $ 28,005 Adjustments: Severance 1,318 43 8 32 — Write-off of straight-line rent receivables related to prior periods 1,650 — 1,479 139 2,434 Accelerated stock-based compensation 318 — — — — Amortization of above (below) market lease intangibles, including ground leases 276 279 546 285 282 Core FFO $ 30,928 $ 33,377 $ 31,032 $ 33,510 $ 30,721 Adjustments: Deferred rent 456 325 344 519 738 Straight-line rent adjustments (1,357) (1,217) (1,454) (1,437) (2,042) Amortization of deferred financing costs 425 415 412 413 412 Stock-based compensation 2,245 1,228 1,251 1,242 1,146 AFFO $ 32,697 $ 34,128 $ 31,585 $ 34,247 $ 30,975 The following is a reconciliation of net (loss) income attributable to common stockholders, which is the most directly comparable GAAP financial measure, to FFO, Core FFO and AFFO for the following quarterly periods (amounts in thousands): Funds From Operations (FFO), Core Funds From Operations, and Adjusted Funds From Operations (AFFO) FFO, a non-GAAP financial measure, is calculated consistent with NAREIT’s definition, as net income (loss) (calculated in accordance with GAAP), excluding gains (or losses) from sales of real estate assets and impairments of real estate assets and goodwill, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. It should be noted, however, that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than the Company does, making comparisons less meaningful. The Company calculates Core FFO by adjusting FFO to remove the effect of items that are not expected to impact its operating performance on an ongoing basis and consider it to be a useful supplemental measure because it provides investors with additional information to understand our sustainable performance. These include severance, write-off of straight-line rent receivables related to prior periods, accelerated stock-based compensation, amortization of above- and below-market lease intangibles (including ground leases), and loss on extinguishment of debt. Other REITs may use different methodologies for calculating Core FFO and, accordingly, the Company’s Core FFO may not be comparable to other REITs. In addition to FFO and Core FFO, the Company uses AFFO as a non-GAAP supplemental financial performance measure because the Company believes it provides to investors appropriate supplemental information to evaluate the ongoing operations of the Company. AFFO is a metric used by management to evaluate the Company's dividend policy. The Company calculates AFFO by further adjusting Core FFO for the following items: deferred rent, current period straight-line rent adjustments, amortization of deferred financing costs and stock-based compensation. Other REITs may use different methodologies for calculating AFFO and, accordingly, the Company’s AFFO may not be comparable to other REITs. FFO, Core FFO and AFFO should not be considered to be more relevant or accurate than the GAAP methodology in calculating net income (loss) or in its applicability in evaluating our operational performance. The method used to evaluate the value and performance of real estate under GAAP should be considered as a more relevant measure of operating performance and considered more prominent than the non-GAAP FFO, Core FFO and AFFO measures and the adjustments to GAAP in calculating FFO, Core FFO and AFFO. Glossary | Page21
Q4 | 2023 Net Debt Net debt, a non-GAAP financial measure, represents principal debt outstanding less cash and cash equivalents. Net debt provides useful information by calculating and monitoring the Company’s leverage metrics. The following is a reconciliation of total credit facility debt, net, which is the most directly comparable GAAP financial measure to net debt, for the following quarterly periods (amounts in thousands): As of December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Total credit facility debt, net $ 523,153 $ 603,052 $ 562,893 $ 572,734 $ 580,588 Deferred financing costs, net 1,847 1,948 2,107 2,266 2,412 Principal debt outstanding 525,000 605,000 565,000 575,000 583,000 Less: cash and cash equivalents 202,019 14,563 21,497 22,230 12,917 Net debt $ 322,981 $ 590,437 $ 543,503 $ 552,770 $ 570,083 Net Asset Value (NAV) NAV is determined by the board of directors, at the recommendation of the Company's audit committee, and based on the estimated fair value of the Company’s assets, less the estimated fair value of the Company’s liabilities, divided by the number of shares outstanding on a diluted basis. This valuation is performed in accordance with the provisions of Practice Guideline 2013-01, Valuations of Publicly Registered Non-Listed REITs, issued by the IPA in April 2013, in addition to guidance from the SEC. Liquidity A financial metric that represents the outstanding cash and cash equivalents combined with the remaining borrowing base availability on the Company’s credit facility at a point in time. Glossary | Page22
Q4 | 2023 The following is a reconciliation from net (loss) income attributable to common stockholders, which is the most directly comparable GAAP financial measure, to NOI, Cash NOI and Same Store Cash NOI, for the following periods (amounts in thousands): Net Operating Income (NOI), Cash NOI and Same Store Cash NOI NOI, a non-GAAP financial measure, is defined as rental revenue, less rental expenses, on an accrual basis. Cash NOI is calculated to exclude the impact of GAAP adjustments to rental revenue and rental expenses, consisting of straight-line rent adjustments, net of write-offs, amortization of above- and below-market lease intangibles (including ground leases), and internal property management fees, then including deferred rent received in cash, and is used to evaluate the cash-based performance of the Company’s real estate portfolio. Same store cash NOI is calculated to exclude non-same store cash NOI. The Company believes that NOI and Cash NOI both serve as useful supplements to net income (loss) because they allow investors and management to measure unlevered property-level operating results and to compare these results to the comparable results of other real estate companies on a consistent basis. The Company uses both NOI and Cash NOI to make decisions about resource allocations and to assess the property-level performance of the real estate portfolio. As an indicator of financial performance, neither metric should be considered as an alternative to net income (loss), determined in accordance with GAAP. The Company believes that in order to facilitate a clear understanding of the consolidated historical operating results, both metrics should be evaluated in conjunction with net income (loss) as presented in the consolidated financial statements included on the Company’s Annual Report on Form 10-K filed with the SEC on March 6, 2024. Three Months Ended December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Rental revenue $ 45,914 $ 48,542 $ 44,965 $ 49,644 $ 43,905 Rental expenses (5,468) (5,005) (4,873) (4,850) (4,731) Net operating income 40,446 43,537 40,092 44,794 39,174 Adjustments: Straight-line rent adjustments, net of write-offs 293 (1,217) 25 (1,298) 392 Amortization of above (below) market lease intangibles, including ground leases 276 279 546 285 282 Internal property management fee 1,332 1,237 1,345 1,336 1,268 Deferred rent 456 325 344 519 738 Cash NOI 42,803 44,161 42,352 45,636 41,854 Non-same store cash NOI (4,359) (6,020) (4,200) (8,669) (4,248) Same store cash NOI 38,444 38,141 38,152 36,967 37,606 General and administrative expenses (7,418) (4,828) (5,547) (6,103) (5,313) Depreciation and amortization (18,841) (18,097) (18,803) (18,552) (22,756) Impairment losses (17,544) — (6,364) (344) (40,037) Gain on real estate dispositions — 1 — 21 — Interest and other income 532 23 141 6 3 Interest expense (6,171) (5,653) (5,664) (5,622) (5,833) Straight-line rent adjustments, net of write- offs (293) 1,217 (25) 1,298 (392) Amortization of above (below) market lease intangibles, including ground leases (276) (279) (546) (285) (282) Internal property management fee (1,332) (1,237) (1,345) (1,336) (1,268) Deferred rent (456) (325) (344) (519) (738) Non-same store cash NOI 4,359 6,020 4,200 8,669 4,248 Net (loss) income attributable to common stockholders $ (8,996) $ 14,983 $ 3,855 $ 14,200 $ (34,762) Glossary | Page23
Q4 | 2023 Total Real Estate Investments at Cost Represents the contractual purchase price of real estate properties acquired, including capitalized acquisition costs, and capital expenditures incurred since acquisition, reduced by the cost basis of properties sold. Same Store Properties Operating properties that were owned and operated for the entirety of all calendar periods being compared, excluding properties under development, re-development, or classified as held for sale. To evaluate properties on a comparable basis, management analyzes metrics of same store properties in order to assess the core operations of the portfolio. By evaluating same store properties, management is able to monitor the operations of the Company's existing properties for comparable periods to measure the performance of the current portfolio and the effects of new acquisitions and dispositions on net income (loss). Remaining Lease Term The number of periods remaining of each tenant’s lease, calculated on a weighted average basis on annualized base rent. Rent Escalation The amount of base rent increases that are included within each tenant’s lease, calculated on a weighted average basis on annualized base rent. Glossary | Page24