Supplemental Information Second Quarter 2023
2 Table of Contents Page Company Highlights 5 Financial Information 8 Debt & Capitalization 23 Leasing Activity & Asset Management 29 Components of Net Asset Value 31 Property Information 33 Portfolio Characteristics 38 Notes & Definitions 58
3 Disclaimer Disclaimer on Forward-Looking Statements This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward- looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. The forward-looking statements contained in this document reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from those expressed in any forward-looking statement. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: general economic and financial conditions; market volatility; inflation; any potential recession or threat of recession; interest rates; recent and ongoing disruption in the debt and banking markets; occupancy, rent deferrals and the financial condition of our tenants; whether work-from-home trends or other factors will impact the attractiveness of industrial and/or office assets; whether we will be successful in renewing leases as they expire; future financial and operating results, plans, objectives, expectations and intentions; expected sources of financing, including the ability to maintain the commitments under our revolving credit facility, and the availability and attractiveness of the terms of any such financing; legislative and regulatory changes that could adversely affect our business; our future capital expenditures, operating expenses, net income, operating income, cash flow and developments and trends of the real estate industry; whether we will be successful in the pursuit of our business plan, including any dispositions; whether we will succeed in our investment objectives; any fluctuation and/or volatility of the trading price of our common shares; risks associated with our dependence on key personnel whose continued service is not guaranteed; and other factors, including those risks disclosed in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission. While forward-looking statements reflect our good faith beliefs, assumptions and expectations, they are not guarantees of future performance. The forward-looking statements speak only as of the date of this document. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes after the date of this document, except as required by applicable law. We caution investors not to place undue reliance on any forward-looking statements, which are based only on information currently available to us. Notice Regarding Non-GAAP Financial Measures. In addition to U.S. GAAP financial measures, this presentation contains and may refer to certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures and statements of why management believes these measures are useful to investors are included in this Appendix if the reconciliation is not presented on the page in which the measure is published.
Company Highlights
5 High-Quality Portfolio of Office & Industrial Properties Net-Leased to a Diversified Pool of Creditworthy Tenants4 73 Properties 18.2M Square Feet 24 States 96.0%3 Leased 24%/56%/20%1 Industrial/ Office/Other 6.5 Years1 WALT 63.5%1,2 Investment Grade 2.0% Avg. Annual Rent Escalations 1 Weighted average based on ABR. 2 Represents ratings of tenants, guarantors or non-guarantor parent entities. There can be no assurance that such guarantors or parent entities will satisfy the tenant’s lease obligations. For more information, see definition of investment grade in "Notes and Definitions." 3 Based on rentable square feet. 4 Peakstone Realty Trust has no affiliation, connection or association with and is not sponsored or approved by the tenants of its properties. Peakstone Realty Trust has not approved or sponsored its tenants or their products and services. All product and company names, logos and slogans are the trademarks or service marks of their respective owners. Office Industrial Wholly-Owned Portfolio Snapshot As of June 30, 2023 Unaudited Unaudited
6 (Unaudited, USD in thousands) Number of Properties Economic Occupancy1 Total Rentable Square Feet WALT (years)2 Annualized Base Rent Investment Grade by Segment3 Industrial4 19 100.0 % 9,001,800 6.6 $ 48,358 73.9 % Office5 35 97.0 5,684,400 7.9 112,304 64.9 TOTAL / WEIGHTED AVERAGE INDUSTRIAL AND OFFICE 54 98.8 % 14,686,200 7.5 160,662 67.6 % Other6 19 81.2 3,559,700 2.7 41,143 47.7 TOTAL / WEIGHTED AVERAGE PORTFOLIO 73 95.4 % 18,245,900 7 6.5 $ 201,805 63.5 % 1 Based on rentable square feet. 2 Weighted average based on ABR. 3 Weighted average based on ABR. Represents ratings of tenants, guarantors or non-guarantor parent entities. There can be no assurance that such guarantors or parent entities will satisfy the tenant’s lease obligations. For more information, see definition of investment grade in "Notes and Definitions." 4 The Industrial segment consists of high-quality, well-located industrial properties with modern specifications. 5 The Office segment consists of newer, high-quality, and business-essential office properties. 6 The Other segment consists of vacant and non-core properties, together with other properties in the same cross-collateralized loan pools. This segment includes properties that are either non-stabilized, leased to tenants with shorter lease terms or are being evaluated for repositioning, re-leasing or potential sale. 7 Excludes approximately 9K of square feet subject to leases with third parties for building amenities that do not generate net rent (e.g., health clubs and management offices). Wholly-Owned Portfolio As of June 30, 2023
7 Consolidated Leverage $394.6 million40.8% Net Debt + Preferred / Total Gross Real Estate (consol.) $(0.27) / $0.73 FFO/AFFO Per Share/Unit2 6.6x Net Debt + Preferred / Normalized EBITDAre (consol.)4 Total Revenues $62.5 million Same Store Cash NOI3 Liquidity5 1 Calculated based on weighted average number of common shares outstanding - basic and diluted of 35,922,706. Net Income Attributable to Common Shareholders includes $21.3 million of transaction expenses related to the Listing, $2.0 million of expenses related to employee separation, and $397.4 million of non-cash impairment. 2 Calculated based on weighted average number of common shares outstanding - basic and diluted of 35,922,706 and weighted average number of OP Units outstanding of 3,528,666 for a total of 39,451,372 shares. Excluding the approximately $28.3 million of non- recurring expenses, FFO for the second quarter would have been approximately $17.6 million, or $0.45 per basic and diluted share. FFO and AFFO are non-GAAP financial measures. See slide 19 for reconciliations. 3 Same Store Cash NOI is a non-GAAP financial measure. See slide 18 for reconciliation. 4 See slide 24 for Net Debt + Preferred details. See Slide 20 for Normalized EBITDAre calculation. 5 See"Debt & Capitalization" section for liquidity calculation. 6 Based on rentable square feet. 95.4%/96.0% Occupied/Leased6 Second Quarter Highlights • Sold five properties for $130.8 million of gross disposition proceeds. • Redeemed all issued and outstanding preferred shares (being 5 million Series A Preferred Shares which were issued and held by a third-party international investor). • Listed our common shares on the New York Stock Exchange ("NYSE") under the ticker "PKST" (the "Listing"). • Board of Trustees declared $0.225 per common share dividend for the second quarter. Second Quarter 2023 Highlights (unaudited) Net Income Attributable to Common Shareholders Per Share1 $(11.59) Debt Ratio $48.0 million
Financial Information
9 1 Calculated based on weighted average number of common shares outstanding - basic and diluted of 35,922,706. 2 Calculated based on weighted average number of common shares outstanding - basic and diluted of 35,922,706 and weighted average number of OP Units outstanding of 3,528,666 for a total of 39,451,372 shares. FFO and AFFO are non-gaap financial measures. See slide 19 for reconciliations. 3 EBITDA is a non-GAAP financial measure. See slide 20 for reconciliations. 4 Excludes approximately 9K of square feet subject to leases with third parties for building amenities that do not generate net rent (e.g., health clubs and management offices). 5 On April 10, 2023, the Company redeemed all issued and outstanding preferred shares (5mm Series A Preferred Shares which were issued to and held by a third-party international investor). For the Quarter Ended (Unaudited, USD in thousands, except per share metrics) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 SELECTED FINANCIAL DATA Net income attributable to common shareholders per share - basic and diluted1 $ (11.59) $ 0.17 $ (6.34) $ (3.08) $ (2.00) FFO per share/unit - basic and diluted2 $ (0.27) $ 0.37 $ (3.09) $ 0.68 $ 1.43 AFFO per share/unit - basic and diluted2 $ 0.73 $ 0.68 $ 0.75 $ 1.08 $ 1.57 Interest expense $ 16,068 $ 17,014 $ 16,501 $ 24,283 $ 22,366 Operating margin 76.1 % 79.9 % 78.9 % 76.0 % 78.2 % Normalized EBITDAre3 $ 56,898 $ 58,383 $ 57,924 $ 64,350 $ 86,861 Adjusted EBITDA3 $ 40,095 $ 41,144 $ 42,553 $ 67,968 $ 84,151 WHOLLY-OWNED PORTFOLIO STATISTICS Rentable Square Feet 4 18,245,900 18,973,500 19,889,700 21,058,200 29,159,400 Economic Occupancy 95.4 % 94.6 % 94.8 % 95.1 % 92.7 % Leased (based on rentable square feet) 96.0 % 95.3 % 95.5 % 95.6 % 93.0 % CAPITALIZATION Outstanding Common Shares 35,924,476 36,006,922 35,999,898 36,007,433 36,082,283 Weighted average number of common shares outstanding - basic and diluted 35,922,706 35,999,325 35,999,203 36,081,363 36,079,905 Weighted-average outstanding OP Units 3,528,666 3,537,654 3,537,654 3,537,654 3,537,654 Series A Preferred Shares5 — 5,000,000 5,000,000 5,000,000 5,000,000 Total Consolidated Debt $ 1,467,146 $ 1,468,930 $ 1,489,803 $ 1,491,689 $ 2,536,910 Total Cash, Cash Equivalents and Restricted Cash $ 363,668 $ 370,209 $ 237,944 $ 87,883 $ 222,293 Selected Financial Data
10 For the Quarter Ended (Unaudited, USD in thousands) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 REVENUES BY SEGMENT Industrial $ 13,981 $ 14,594 $ 15,945 $ 15,095 $ 14,807 Office 34,999 39,189 45,643 72,128 93,494 Industrial and Office Total 48,980 53,783 61,588 87,223 108,301 Other 13,560 13,190 14,305 14,107 14,772 Total Revenues $ 62,540 $ 66,973 $ 75,893 $ 101,330 $ 123,073 NOI BY SEGMENT1 Industrial $ 12,320 $ 12,630 $ 13,564 $ 13,389 $ 13,111 Office 28,923 32,852 37,320 54,374 72,784 Industrial and Office Total 41,243 45,482 50,884 67,763 85,895 Other 8,403 8,037 8,998 9,291 10,316 Total NOI $ 49,646 $ 53,519 $ 59,882 $ 77,054 $ 96,211 CASH NOI BY SEGMENT1 Industrial $ 12,117 $ 12,394 $ 13,300 $ 12,846 $ 12,798 Office 26,885 29,396 32,723 52,782 71,071 Industrial and Office Total 39,002 41,790 46,023 65,628 83,869 Other 8,564 8,226 8,626 8,336 9,687 Total Cash NOI $ 47,566 $ 50,016 $ 54,649 $ 73,964 $ 93,556 Selected Financial Data (continued) 1 NOI and Cash NOI are non-gaap financial measures. See slide 16 for reconciliations of net income to NOI and Cash NOI for the periods ending 6/30/2023 and 6/30/2022 and slide 62 for reconciliations of net income to NOI and Cash NOI for the interim periods ending 3/31/2023, 12/31/2022, and 9/30/2022.
11 For the Quarter Ended (Unaudited, USD in thousands, except per share metrics) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 REVENUES Rental income $ 62,540 $ 66,973 $ 75,893 $ 101,330 $ 123,073 EXPENSES Property operating expense 6,919 7,110 9,357 13,716 14,335 Property tax expense 5,545 5,822 6,065 9,737 11,482 Property management fees 430 522 589 823 1,045 General and administrative expenses 12,030 1 9,728 11,532 9,521 8,750 Corporate operating expenses to related parties 341 378 284 140 416 Depreciation and amortization 30,472 31,356 35,275 42,628 59,980 Real estate impairment provision 397,373 — 41,323 10,697 75,557 Total expenses 453,110 54,916 104,425 87,262 171,565 (Loss) Income before other income and (expenses) (390,570) 12,057 (28,532) 14,068 (48,492) OTHER INCOME (EXPENSES) Interest expense (16,068) (17,014) (16,501) (24,283) (22,366) Other income (loss), net 2,747 1,212 (355) (162) (196) Extinguishment of debt — — — (13,249) — Net loss from investment in unconsolidated entity (17,508) (14,661) (9,993) — — Gain (loss) from disposition of assets, net (9,701) 30,610 (43,767) (95,513) — Goodwill impairment provision — — (135,270) — — Transaction expenses (21,303) 2 (3,187) (13,724) (234) (5,545) NET (LOSS) INCOME (452,403) 9,017 (248,142) (119,373) (76,599) Distributions to redeemable preferred shareholders — (2,376) (2,516) (2,516) (2,516) Preferred units redemption (4,970) 3 — — — — Net loss (income) attributable to noncontrolling interests 40,909 (585) 22,071 10,710 6,952 Net (loss) income attributable to controlling interests (416,464) 6,056 (228,587) (111,179) (72,163) Distributions to redeemable noncontrolling interests attributable to common shareholders (13) (23) (45) (45) (44) NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (416,477) $ 6,033 $ (228,632) $ (111,224) $ (72,207) NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS PER BASIC & DILUTED SHARE $ (11.59) $ 0.17 $ (6.34) $ (3.08) $ (2.00) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC & DILUTED 35,922,706 35,999,325 35,999,203 36,081,363 36,079,905 Consolidated Statement of Operations 1 Includes approximately $2.0 million of employee severance related to the recent departure of one of the Company's former officers and $0.3 million due to the timing of deferred compensation. 2 Includes approximately $21.3 million in various banking, advisory, legal, and filing fees for the Listing. 3 Represents write-off of capitalized offering costs related to the initial issuance of the Series A Preferred Shares, which were written off during the quarter as a non-cash expense as a result of the redemption.
12 As of (Unaudited, USD in thousands) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 ASSETS Cash and cash equivalents $ 360,626 $ 368,210 $ 233,180 $ 75,838 $ 202,655 Restricted cash 3,042 1,999 4,764 12,045 19,638 Real estate Land 245,872 316,341 327,408 380,998 573,306 Building and improvements 2,045,409 2,523,243 2,631,965 2,865,548 4,029,828 Tenant origination and absorption cost 421,795 524,750 535,889 598,662 853,542 Construction in progress 1,576 8,223 1,994 2,795 4,581 TOTAL REAL ESTATE 2,714,652 3,372,557 3,497,256 3,848,003 5,461,257 Less accumulated depreciation and amortization (526,085) (638,428) (644,639) (682,814) (1,066,176) Total real estate, net 2,188,567 2,734,129 2,852,617 3,165,189 4,395,081 Investments in unconsolidated entity 146,395 164,876 178,647 194,485 — Intangible assets, net 31,315 32,870 33,861 35,281 40,179 Deferred rent receivable 63,053 69,677 79,572 81,156 111,507 Deferred leasing costs, net 17,432 20,262 26,507 26,268 48,835 Goodwill 94,678 94,678 94,678 229,948 229,948 Due from related parties — — — 226 226 Right of use asset 34,615 35,013 35,453 35,894 39,997 Interest rate swap asset 41,046 33,038 41,404 42,724 21,905 Other assets 29,457 29,854 31,877 35,347 39,045 Real estate assets and other assets held for sale, net — — 20,816 — — TOTAL ASSETS $ 3,010,226 $ 3,584,606 $ 3,633,376 $ 3,934,401 $ 5,149,016 Consolidated Balance Sheet
13 As of (Unaudited, USD in thousands) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 LIABILITIES AND EQUITY Debt, net $ 1,460,536 $ 1,461,584 $ 1,485,402 $ 1,486,783 $ 2,529,228 Restricted reserves 627 627 627 7,150 8,417 Distributions payable 8,295 5,164 12,402 12,111 12,078 Due to related parties 1,043 876 1,458 1,636 1,690 Intangible liabilities, net 17,989 19,818 20,658 22,989 27,420 Lease liability 46,368 46,320 46,519 46,598 52,244 Accrued expenses and other liabilities 80,542 79,114 80,175 85,096 110,815 TOTAL LIABILITIES 1,615,400 1,613,503 1,647,241 1,662,363 2,741,892 Perpetual convertible preferred shares1 — 125,000 125,000 125,000 125,000 Noncontrolling interests subject to redemption — 3,801 3,812 3,812 4,671 SHAREHOLDERS’ EQUITY Common Shares 36 36 36 36 36 Additional paid-in capital 2,959,011 2,950,706 2,948,600 2,952,907 2,955,221 Cumulative distributions (1,059,668) (1,051,551) (1,036,678) (1,007,957) (979,028) Accumulated (loss) income (680,369) (263,893) (269,926) (41,293) 69,927 Accumulated other comprehensive income (loss) 40,282 33,847 40,636 40,097 21,078 TOTAL SHAREHOLDERS’ EQUITY 1,259,292 1,669,145 1,682,668 1,943,790 2,067,234 Noncontrolling interests 135,534 173,157 174,655 199,436 210,219 TOTAL EQUITY 1,394,826 1,842,302 1,857,323 2,143,226 2,277,453 TOTAL LIABILITIES AND EQUITY $ 3,010,226 $ 3,584,606 $ 3,633,376 $ 3,934,401 $ 5,149,016 Consolidated Balance Sheet (continued) 1 On April 10, 2023, the Company redeemed all issued and outstanding preferred shares (5mm Series A Preferred Shares which were issued to and held by a third-party international investor).
14 For the Quarter Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 (Unaudited, USD in thousands) Net (loss) income $ (452,403) $ 9,017 $ (248,142) $ (119,373) $ (76,599) General and administrative 12,030 9,728 11,532 9,521 8,750 Corporate operating expenses to related parties 341 378 284 140 416 Real estate impairment provision 397,373 — 41,323 10,697 75,557 Depreciation and amortization 30,472 31,356 35,275 42,628 59,980 Interest expense 16,068 17,014 16,501 24,283 22,366 Debt breakfage cost — — — 13,249 — Other loss (income), net (2,747) (1,212) 355 162 196 Loss from investment in unconsolidated entities 17,508 14,661 9,993 — Loss (gain) from disposition of assets 9,701 (30,610) 43,767 95,513 — Goodwill impairment provision — — 135,270 — — Transaction expenses 21,303 3,187 13,724 234 5,545 Total NOI $ 49,646 $ 53,519 $ 59,882 $ 77,054 $ 96,211 Non-GAAP Financial Measures Reconciliation of Net Income to Total NOI Quarter Ended 1The decrease in NOI of $3.9 million from Q1'23 to Q2'23 is primarily due to a a decrease of $4.4 million in rental income, offset by a decrease of $0.6 million in expenses, driven by the dispositions of properties in Q2 and Q1.
15 For the Six Months Ended 6/30/2023 6/30/2022 (Unaudited, USD in thousands) Net (loss) income $ (443,384) $ (73,869) General and administrative 21,758 17,942 Corporate operating expenses to related parties 718 926 Real estate impairment provision 397,373 75,557 Depreciation and amortization 61,827 112,843 Interest expense 33,082 44,032 Other loss (income), net (3,959) 426 Loss from investment in unconsolidated entities 32,169 — Loss (gain) from disposition of assets (20,909) — Transaction expenses 24,490 8,428 Total NOI $ 103,165 $ 186,285 Non-GAAP Financial Measures Reconciliation of Net Income to Total NOI Six Months Ended
16 For the Quarter Ended For the Quarter Ended 6/30/2023 6/30/2022 (Unaudited, USD in thousands) Industrial Office Industrial and Office Total Other Total Portfolio Industrial Office Industrial and OfficeTotal Other Total Portfolio Revenue $ 13,981 34,999 $ 48,980 $ 13,560 $ 62,540 $ 14,807 $ 93,494 $ 108,301 $ 14,772 $ 123,073 Operating Property Expense (585) (3,448) (4,033) (2,886) (6,919) (602) (11,377) (11,979) (2,356) (14,335) Property Tax Expense (1,013) (2,480) (3,493) (2,052) (5,545) (1,031) (8,582) (9,613) (1,869) (11,482) Property Management Fees (63) (148) (211) (219) (430) (63) (751) (814) (231) (1,045) TOTAL NOI 12,320 28,923 41,243 8,403 49,646 13,111 72,784 85,895 10,316 96,211 NON-CASH ADJUSTMENTS: Straight Line Rent (107) (2,831) (2,938) 293 (2,645) (211) (2,666) (2,877) 245 (2,632) In-Place Lease Amortization (96) (67) (163) (128) (291) (102) (213) (315) (117) (432) Deferred Termination Income — — — — — — — — (758) (758) Deferred Ground/Office Lease — 439 439 (4) 435 — 510 510 1 511 Other Intangible Amortization — 372 372 — 372 — 372 372 — 372 Inducement Amortization — 49 49 — 49 — 284 284 — 284 TOTAL CASH NOI $ 12,117 $ 26,885 $ 39,002 $ 8,564 $ 47,566 $ 12,798 $ 71,071 $ 83,869 $ 9,687 $ 93,556 Non-GAAP Financial Measures (continued) NOI and Cash NOI Quarter Ended
17 For the Six Months Ended For the Six Months Ended 6/30/2023 6/30/2022 (Unaudited, USD in thousands) Industrial Office Industrial and Office Total Other Total Portfolio Industrial Office Industrial and Office Total Other Total Portfolio Revenue $ 28,575 $ 74,188 $ 102,763 $ 26,750 $ 129,513 $ 30,307 $ 179,339 $ 209,646 $ 29,616 $ 239,262 Operating Property Expense (1,427) (6,842) (8,269) (5,760) (14,029) (1,598) (22,828) (24,426) (4,952) (29,378) Property Tax Expense (2,072) (5,186) (7,258) (4,109) (11,367) (2,059) (15,745) (17,804) (3,711) (21,515) Property Management Fees (126) (386) (512) (440) (952) (126) (1,497) (1,623) (461) (2,084) TOTAL NOI 24,950 61,774 86,724 16,441 103,165 26,524 139,269 165,793 20,492 186,285 NON-CASH ADJUSTMENTS: Straight Line Rent (224) (7,288) (7,512) 608 (6,904) (426) (5,183) (5,609) 438 (5,171) In-Place Lease Amortization (190) 31 (159) (254) (413) (189) (424) (613) (233) (846) Deferred Termination Income (24) — (24) — (24) — — — (1,516) (1,516) Deferred Ground/Office Lease — 872 872 (4) 868 — 1,022 1,022 5 1,027 Other Intangible Amortization — 741 741 — 741 — 741 741 — 741 Inducement Amortization — 150 150 — 150 — 353 353 — 353 TOTAL CASH NOI $ 24,512 $ 56,280 $ 80,792 $ 16,791 $ 97,583 $ 25,909 $ 135,778 $ 161,687 $ 19,186 $ 180,873 Non-GAAP Financial Measures (continued) NOI and Cash NOI Six Months Ended
18 1 For both the three and six months ended June 30, 2023, the decrease in same store Cash NOI is primarily due to $8.2 million decrease in termination income received in connection with certain tenants exercising early lease termination rights and offset by a net increase in cash rent for the remaining assets in both periods. 2 Excludes $8.2 million of termination income. For the Quarter Ended For the Six Months Ended (Unaudited, USD in thousands) 6/30/2023 6/30/2022 6/30/2023 6/30/2022 CASH NOI ALLOCATION � Industrial $ 12,117 $ 12,798 $ 24,512 $ 25,909 Office 26,885 71,071 56,280 $ 135,778 Industrial and Office Total $ 39,002 $ 83,869 $ 161,687 $ 161,687 � Other 8,564 9,687 16,791 19,186 TOTAL CASH NOI $ 47,566 $ 93,556 $ 97,583 180,873 SAME STORE CASH NOI ADJUSTMENTS � � Recently acquired properties — — — — Recently disposed properties 529 (38,249) (672) (76,665) Inducement Adjustment (49) (284) (150) (353) TOTAL SAME STORE CASH NOI ADJUSTMENTS 480 (38,533) (822) (77,018) TOTAL SAME STORE CASH NOI $ 48,046 $ 55,023 $ 96,761 $ 103,855 SAME STORE CASH NOI � Industrial $ 12,124 $ 11,655 $ 24,205 $ 23,626 Office 26,999 33,737 54,918 60,995 Industrial and Office Total $ 39,123 $ 45,392 $ 79,123 $ 84,621 Other 8,923 9,631 17,638 19,234 TOTAL SAME STORE CASH NOI $ 48,046 $ 55,023 $ 96,761 $ 103,855 Change in Same Store Cash NOI ($) $ (6,977) $ (7,094) Change in Same Store Cash NOI (%) (12.7) % 1 (6.8) % 1 Change in Same Store Cash NOI excluding non-recurring items2 2.5 % 2 1.1 % 2 NUMBER OF SAME STORE PROPERTIES 73 73 TOTAL SAME STORE SQUARE FEET 18,245,900 18,245,900 SAME STORE ECONOMIC OCCUPANCY 95.4 % 95.4 % Non-GAAP Financial Measures (continued) Same Store NOI and Cash NOI
19 For the Quarter Ended (Unaudited, USD in thousands, except per share metrics) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Reconciliation of Net Income to Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) GAAP NET (LOSS) INCOME $ (452,403) $ 9,017 $ (248,142) $ (119,373) $ (76,599) Depreciation of building and improvements 19,538 20,054 22,336 26,268 32,494 Amortization of leasing costs and intangibles 11,031 11,397 13,037 16,456 27,575 Impairment provision, real estate 397,373 — 41,323 10,697 75,557 Equity interest of depreciation of building and improvements - unconsolidated entities 9,020 7,238 4,643 — — (Gain)/Loss from disposition of assets, net 9,701 (30,610) 43,767 95,513 — Company's share of loss on sale of unconsolidated entity — — 3,558 — — FFO $ (5,740) $ 17,096 $ (119,478) $ 29,561 $ 59,027 Distribution to redeemable preferred shareholders — (2,375) (2,515) (2,516) (2,516) Preferred unit redemption charge (4,970) — — — — FFO attributable to common shareholders and limited partners $ (10,710) $ 14,721 $ (121,993) $ 27,045 $ 56,511 Reconciliation of FFO to AFFO: FFO attributable to common shareholders and limited partners $ (10,710) $ 14,721 $ (121,993) $ 27,045 $ 56,511 Revenues in excess of cash received, net (2,644) (4,283) (5,199) (3,521) (3,389) Amortization of share-based compensation 2,626 2,556 3,433 2,698 1,685 Deferred rent - ground lease 435 433 433 490 511 Unrealized loss (gain) on investments (5) (32) 15 22 68 Amortization of above/(below) market rent, net (291) (122) (923) (436) (432) Amortization of debt premium/(discount), net 83 102 103 103 102 Amortization of ground leasehold interests (97) 368 (98) (95) (90) Amortization of below tax benefit amortization 372 (96) 377 377 372 Amortization of deferred financing costs 655 1,274 993 920 840 Company's share of amortization of deferred financing costs- unconsolidated entity 10,655 9,632 3,740 — — Company's share of revenues in excess of cash received (straight-line rents) - unconsolidated entity (750) (826) (257) — — Company's share of amortization of above market rent - unconsolidated entity (26) (288) (58) — — Write-off of transaction costs — 32 — — 10 Employee separation expense 2,042 1 — — — 2 Loss on debt breakage costs — write-off of deferred financing costs — — — 1,771 — Transaction expenses 21,303 1 3,187 13,724 234 5,545 Impairment provision, goodwill — — 135,270 — — Debt breakage costs — — — 13,249 — Amortization of lease inducements 49 101 79 105 284 Preferred unit redemption charge 4,970 1 — — — — AFFO available to common shareholders and limited partners $ 28,667 $ 26,759 $ 29,639 $ 42,962 $ 62,019 FFO per share, basic and diluted $ (0.27) 2 $ 0.37 $ (3.09) $ 0.68 $ 1.43 AFFO per share, basic and diluted $ 0.73 $ 0.68 $ 0.75 $ 1.08 $ 1.57 Weighted-average common shares outstanding - basic and diluted EPS 35,922,706 35,999,325 35,999,203 36,081,363 36,079,905 Weighted-average OP Units 3,528,666 3,537,654 3,537,654 3,537,654 3,537,654 Weighted-average common shares and OP Units outstanding - basic and diluted FFO/AFFO 39,451,372 39,536,979 39,536,857 39,619,017 39,617,559 Non-GAAP Financial Measures (continued) FFO and AFFO 1Non-recurring expenses include $21.3 million of transaction expenses related to the Listing, $5.0 million of expenses related to the preferred redemption, and $2.0 million of expenses related to employee separation. 2Excluding the approximately $28.3 million of non-recurring expenses, FFO for the second quarter would have been approximately $17.6 million, or $0.45 per basic and diluted share.
20 For the Quarter Ended (Unaudited, USD in thousands) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Reconciliation of Net income (loss) to EBITDAre Net (loss) income $ (452,403) $ 9,017 $ (248,142) $ (119,373) $ (76,599) Interest 16,068 17,014 16,501 24,283 22,366 Depreciation and amortization 30,472 31,356 35,275 42,628 59,980 EBITDA (405,863) 57,387 (196,366) (52,462) 5,747 Loss (Gain) on sales of real estate, net 9,701 (30,610) 43,767 95,513 — Extinguishment of debt — — — 13,249 — Loss on investment in unconsolidated entity 17,508 14,661 9,993 — — Impairment provision, real estate 397,373 — 41,323 10,697 75,557 Proportion share of adjustments for unconsolidated entities 15,251 2 13,468 2 5,121 2 — — EBITDAre 33,970 54,906 (96,162) 66,997 81,304 Adjustment for acquisitions and dispositions (417) (1,694) (2,578) (2,881) — Write-off of transaction costs — — — — 10 Employee separation expense 2,042 — — — 2 Adjustment for joint venture acquisition — 1,984 7,670 — — Impairment provision, goodwill — — 135,270 — — Transaction expenses 21,303 1 3,187 13,724 234 5,545 Normalized EBITDAre 56,898 58,383 57,924 64,350 86,861 Reconciliation of Normalized EBITDAre to Adjusted EBITDA (per the credit facility) Amortization of deferred financing costs 655 1,274 993 2,691 840 Amortization of debt premium/(discount), net 83 102 103 103 102 Amortization of above/(below) market rent, net (291) (122) (923) (436) (432) Amortization of other intangibles 372 368 377 377 372 Income taxes 285 184 174 251 142 Property management fees 430 522 589 823 1,045 Deferred rent (2,210) (3,850) (4,765) (3,031) (2,879) Adjustment to Interest (737) (1,376) (1,096) 613 (932) Adjustment for write-off of transaction costs — — — — (10) Adjustment for unconsolidated joint venture (15,251) (15,452) (12,791) — — Reversal of adjustment for acquisitions and dispositions 417 1,694 2,578 2,881 — Less: Capital reserves (556) (583) (610) (654) (958) Adjusted EBITDA (per the credit facility) $ 40,095 $ 41,144 $ 42,553 $ 67,968 $ 84,151 Non-GAAP Financial Measures (continued) EBITDA, EBITDAre, Normalized EBITDAre & Adjusted EBITDA (per the credit facility) 1Include $21.3 million of strategic transaction expenses related to the listing. 2Refer to slide 21 for details around the Office Joint Venture. The Company's approximate 49% share of the Office Joint Venture's EBITDA, a non-GAAP measure, adjusts for amounts related to depreciation and amortization, interest, and other income (expenses), net.
21 For the Quarter Ended (Unaudited, USD in thousands) 6/30/2023 1 3/31/20231 12/31/20221 9/30/2022 6/30/2022 Total revenues $ 49,917 $ 44,789 $ 16,500 $ — $ — Expenses: Operating expenses (16,611) (15,822) (5,550) — — General and administrative (2,174) (1,481) (500) — — Depreciation and amortization (18,411) (14,774) (9,476) — — Interest expense (49,990) 2 (42,992) 3 (15,735) 4 — — Other income (expenses), net 1,531 352 (387) — — Total Expenses (85,655) (74,717) (31,648) — — Net Loss $ (35,738) $ (29,928) $ (15,148) $ — $ — Pro rata share - Net Loss $ (17,508) $ (14,662) $ (7,421) $ — $ — Unconsolidated Office Joint Venture - Condensed Financial Information 1Amounts represent 100% of the Office Joint Venture and are presented on a one quarter lag. 2 Includes $21.8 million of amortization of deferred financing costs. 3Includes $19.7 million of amortization of deferred financing costs. 4Includes $7.6 million of amortization of deferred financing costs.
22 For the Quarter Ended (Unaudited, USD in thousands) 6/30/2023 % of NOI1 3/31/2023 % of NOI1 12/31/2022 % of NOI1 9/30/2022 % of NOI1 6/30/2022 % of NOI1 Maintenance Capital Expenditures by segment: Industrial $ 513 1.0 % $ 83 0.2 % $ 358 0.6 % $ — — % $ — — % Office — — — — 776 1.3 409 0.6 882 0.9 Total Industrial and Office $ 513 1.0 % $ 83 0.2 % $ 1,134 1.9 % $ 409 0.6 % $ 882 0.9 % Other 35 0.1 % 69 0.1 % 12 — 2 — — — Total Maintenance Capital Expenditures $ 548 1.1 % $ 152 0.3 % $ 1,147 1.9 % $ 411 0.6 % $ 882 0.9 % Value Enhancing Expenditures by segment: Industrial $ — — % $ — — % $ — — % $ 5,879 7.9 % $ 8 — % Office — — — — 1,799 3.0 — — 2,714 2.8 Total Industrial and Office $ — — % $ — — % $ 1,799 3.0 % $ 5,879 7.9 % $ 2,722 2.8 % Other 325 0.7 694 1.3 548 0.9 1,926 2.6 — — Total Value Enhancing Expenditures $ 325 0.7 % $ 694 1.3 % $ 2,347 3.9 % $ 7,805 10.5 % $ 2,722 2.8 % Total Capital Expenditures $ 873 1.8 % $ 846 1.6 % $ 3,494 5.8 % $ 8,216 11.1 % $ 3,604 3.7 % 1 Represents percentage of capital expenditures compared to consolidated NOI. Capital Expenditures Summary (Cash Basis)
Debt & Capitalization
24 1 Excludes the impact of fixed-rate swaps. 2 As of 9/28/22, the Secured Overnight Financing Rate ("SOFR" or "SOF rate") replaced LIBOR as the applicable reference rate for our variable rate debt. The amounts listed in this section use the applicable SOF rate (inclusive of a five day look-back per the credit facility agreement), of 5.05%, plus spread of 1.25% (Term Loans) or 1.30% (Revolver) and 0.1% index. The effective interest rate of the $950 million of term loans are inclusive of the Company's fixed-rate interest swaps. Interest rate swaps only apply to the Company's unsecured debt. 3 The Revolver Loan is subject to a series of extension options through January 31, 2026, which can be utilized if certain conditions are met and upon payment of an extension fee. 4 Percentage of floating-rate debt includes impact of fixed-rate swaps. 5 On April 10, 2023, the Company redeemed all issued and outstanding preferred shares (5mm Series A Preferred Shares which were issued to and held by a third-party international investor). 6 Refer to the next section for "Unconsolidated Net Debt", which is presented separately since PKST has no obligation to contribute capital to the unconsolidated joint venture and has no guarantee requirement related to the debt of the unconsolidated joint venture. (Unaudited, USD in thousands, except for shares) Capitalization - Consolidated Debt Ratios - Consolidated Contractual Rate1 Effective Rate (including swaps)2 Term1 Net Debt + Series A Preferred Equity /Total Gross Real Estate5 40.8 % SECURED DEBT Net Debt / Total Gross Real Estate 40.8 % Fixed-Rate Mortgages 4.49% 4.49% 4.0 $ 517,146 Net Debt + Series A Preferred Equity / Normalized EBITDAre (Consolidated)5 6.6x TOTAL SECURED DEBT 517,146 Net Debt / Normalized EBITDAre (Consolidated) 6.6x UNSECURED DEBT 2 Unsecured Debt / Total Gross Real Estate 35.0 % Revolver Loan 3 6.45% 3.80% 2.6 400,000 Unsecured properties / Total properties (based on ABR) 57.4 % 2025 Term Loan 6.40% 4.16% 2.5 400,000 Unsecured properties / Total properties (based on acquisition price) 61.7 % 2026 Term Loan 6.40% 2.14% 2.8 150,000 Percentage of Floating-Rate Debt 4 13.6 % Total Unsecured Debt 950,000 TOTAL CONSOLIDATED DEBT 4.16% 3.1 1,467,146 Less: Cash & cash equivalents - excl. restricted (360,626) NET DEBT6 1,106,520 Liquidity - Consolidated Series A Preferred Equity5 — TOTAL REVOLVER BORROWING BASE COMMITMENTS $ 984,019 NET DEBT + SERIES A PREFERRED EQUITY $ 1,106,520 Borrowing base availability (leverage at 60%) $ 984,019 Outstanding revolver and term loan (950,000) COMMON EQUITY & OP UNITS REVOLVER AVAILABLE CAPACITY $ 34,019 Common Equity 35,924,476 Cash and cash equivalents (excl. restricted) $ 360,626 OP Units 3,534,089 Revolver available capacity 34,019 COMMON EQUITY & OP UNITS 39,458,565 TOTAL LIQUIDITY $ 394,645 Capitalization & Liquidity Overview - Consolidated As of June 30, 2023
25 1 Unconsolidated Net debt is presented separately since PKST has no obligation to contribute capital to the unconsolidated joint venture and has no guarantee requirement related to the debt of the unconsolidated joint venture. 2 On April 10, 2023, the Company redeemed all issued and outstanding preferred shares (5mm Series A Preferred Shares which were issued to and held by a third-party international investor). (Unaudited, USD in thousands) Capitalization - Pro Rata TOTAL CONSOLIDATED DEBT $ 1,467,146 Less: Cash & cash equivalents - excl. restricted (360,626) NET DEBT 1,106,520 Unconsolidated Debt - pro rata share 525,573 Unconsolidated Cash & cash equivalents - excl. restricted - pro rata share (9,231) UNCONSOLIDATED NET DEBT (PRO RATA SHARE)1 516,342 NET DEBT (PRO RATA SHARE) 1,622,862 Series A Preferred Equity2 — NET DEBT (PRO RATA SHARE) + SERIES A PREFERRED EQUITY $ 1,622,862 Debt Ratios - Pro Rata Net Debt (pro rata share) + Series A Preferred Equity / Normalized EBITDAre 7.1x Net Debt (pro rata share) / Normalized EBITDAre 7.1x Capitalization & Liquidity Overview - Consolidated (Pro Rata Share) As of June 30, 2023
26 As of (Unaudited, USD in thousands) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 SECURED FIXED-RATE DEBT Mortgage borrowings on wholly-owned portfolio $ 517,146 $ 518,930 $ 539,803 $ 541,689 $ 1,013,410 Total Secured Fixed-Rate Debt 517,146 518,930 539,803 541,689 1,013,410 UNSECURED FLOATING-RATE DEBT Revolving Credit Facility: Revolver Loan 400,000 400,000 — — 373,500 2023 Term Loan — — — — 200,000 2024 Term Loan — — 400,000 400,000 400,000 2025 Term Loan 400,000 400,000 400,000 400,000 400,000 2026 Term Loan 150,000 150,000 150,000 150,000 150,000 Total Unsecured Floating-Rate Debt 950,000 950,000 950,000 950,000 1,523,500 TOTAL CONSOLIDATED DEBT $ 1,467,146 $ 1,468,930 $ 1,489,803 $ 1,491,689 $ 2,536,910 Fixed charge coverage (per the credit facility) 3.5x 1.8x 2.2x 2.3x 3.4x Interest coverage ratio (per the credit facility) 2.6x 2.6x 2.8x 2.7x 3.9x Consolidated Debt Summary
27 (Unaudited, USD in thousands) SECURED DEBT Collateral Contractual Interest Rate Maturity Date Outstanding Balance INDUSTRIAL AND OFFICE Samsonite Mortgage Loan 6.08% 9/1/2023 $ 17,414 Pepsi Bottling Ventures Mortgage Loan 3.69% 10/1/2024 17,640 BOA II Loan 1 4.32% 5/1/2028 250,000 Total Industrial and Office 285,054 OTHER Highway 94 Mortgage Loan 3.75% 8/1/2024 12,229 AIG Loan II 2 4.15% 11/1/2025 121,153 AIG Loan 3 4.96% 2/1/2029 98,710 Total Other 232,092 Total 4.49% Total Consolidated Secured Debt $ 517,146 1 The BOA II portfolio includes the following properties: IGT, 3M, Amazon, and Southern Company. 2 The AIG II portfolio includes the following properties: Owens Corning, Westgate II (Wood Group), Administrative Offices of the Pennsylvania Courts, Wyndham Worldwide, MGM Corporate Center, and Hitachi Astemo 3 The AIG portfolio includes the following properties: Northrop Grumman, Schlumberger, Raytheon Technologies, Avnet, and 30 Independence. Consolidated Secured Debt Schedule As of June 30, 2023
28 1 Represents the Samsonite mortgage loan. | 2 Represents the Highway 94 mortgage loan. | 3 Represents the Pepsi Bottling Ventures mortgage loan. | 4 Represents the AIG II mortgage loan. | 5 Represents the 2025 Term Loan. | 6 Represents the 2026 Term Loan. | 7 Represents the Revolving Line of Credit. The Revolver has a maturity date of September 2023 and can be extended through January 2026, subject to the satisfaction certain customary conditions and payment of extension fees. | 8Represents the BOA II Loan. | 9 Represents the AIG Loan. | 10 Principal repayments on the individual mortgages do not include the net debt premium/(discount) of $0.4 million and deferred financing costs of $(7.0) million. $141,194(1) $200,000(3) $400,000(5) $17,414 $— $250,000 $29,869 $521,153 $98,710 2025 and 2026 Term loans Mortgage loans (Industrial and Office) Mortgage loans (Other) Revolver 2023 2024 2025 2026 2027 2028 2029 (Unaudited, USD in thousands) Statistics (Including Effect of Swaps) Fixed Floating Total Amount $1,267,146 $200,000 $1,467,146 Percentage of Total Consolidated Debt 86% 14% 100% W.A. Term Remaining (Yrs) 3.2 2.6 3.1 W.A. Interest Rate (%) 3.8% 6.5% 4.2% (1) 8 9 $121,1534 $400,0005 1 17,640 3 12,229 2 Consolidated Debt Maturity Schedule (Including Effect of Interest Rate Swaps) As of June 30, 2023 $150,0006 $400,000 7 10 10 $550,000
Leasing Activity & Asset Management
30 1 Occupancy changes reflect leases with commencements during the quarter. 2 Expiring square footage includes square footage for tenants who have expiring leases but have signed renewal leases. 3 Retention rate: Renewal leases divided by expiring square footage. For the Quarter Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 PORTFOLIO SQUARE FOOTAGE CHANGES Total square feet at beginning of period 18,973,500 19,889,700 21,057,700 29,159,000 29,157,000 Acquisitions — — — — — Dispositions (727,500) (918,000) (1,168,700) (8,101,300) — Remeasurements / other — 1,800 700 — 2,000 Total square feet at end of period 18,246,000 18,973,500 19,889,700 21,057,700 29,159,000 OCCUPANCY CHANGES 1 Occupied square feet beginning of period / Occupancy Rate 17,951,600 / 94.6 % 18,850,400 / 94.8 % 20,030,200 / 95.1 % 27,023,400 / 92.7 % 27,223,000 / 93.4 % Expirations: Expiring square footage2 (60,000) (193,700) — (453,200) (335,200) Lease terminations — — (70,300) (32,000) (135,030) Total expirations (60,000) (193,700) (70,300) (485,200) (470,230) Leases commencing: Renewal leases — 193,700 — — 72,200 New leases 17,000 19,200 58,800 362,100 190,900 Expansion leases — — — — 7,500 Other — — — — — Total leasing activity 17,000 212,900 58,800 362,100 270,600 Occupied acquired square feet — — — — — Occupied disposed square feet (500,000) (918,000) (1,169,400) (6,870,100) — Total occupancy activity from acquisitions & dispositions (500,000) / 68.7 % (918,000) / 100.0 % (1,169,400) / 100.0 % (6,870,100) / 85.0 % — Other occupancy activity — — 700 — — Total occupancy activity (543,000) (898,800) (1,180,200) (6,993,200) (199,630) Occupied square feet at end of period / Occupancy Rate 17,408,600 / 95.4 % 17,951,600 / 94.6 % 18,850,400 / 94.8 % 20,030,200 / 95.1 % 27,023,400 / 92.7 % Retention3 —% 100% —% —% 22% Economic Occupancy Summary
Components of Net Asset Value
32 (Unaudited, USD in thousands) Annualized Base Rent Balance Sheet Components (cont'd) ABR Percentage of ABR LIABILITIES Industrial � � � Revolving credit facility and term loans2 $ 950,000 Investment grade1 $ 35,738 17.7 % Mortgages payable2 517,000 � Sub-investment grade1 7,756 3.8 Accrued tenant improvements 7,008 Unrated credit 4,864 2.4 � Prepaid tenant rent 12,799 48,358 23.9 Real estate taxes payable 4,924 Office � Restricted reserves 627 Investment grade1 72,895 36.1 Deferred compensation 8,682 Sub-Investment grade1 33,121 16.4 � Distributions payable 8,295 Unrated credit 6,288 3.1 Interest payable 15,982 112,304 55.6 Other liabilities 27,531 Industrial and Office 160,662 79.5 Other TOTAL LIABILITIES $ 1,552,848 Investment grade1 19,608 9.7 Sub-investment grade1 20,101 10.0 SERIES A PREFERRED SHARES3 $ — Unrated credit 1,434 0.8 41,143 20.5 COMMON SHARES + OP UNITS OUTSTANDING 39,459,000 WHOLLY-OWNED PORTFOLIO $ 201,805 100.0 % Balance Sheet Components Real Estate Net Book Value NON-OPERATING, NON-COMMERCIAL REAL ESTATE ASSETS REAL ESTATE NET BOOK VALUE Net Book Value � Cash and cash equivalents $ 360,626 Industrial $ 601,011 Restricted cash 3,042 Office 1,300,893 � Construction in progress 1,576 Industrial and Office Total 1,901,904 Investments in unconsolidated entity 146,395 Other 286,663 Goodwill/operating company 94,678 WHOLLY-OWNED PORTFOLIO $ 2,188,567 � Cash - surrender value (DCP) 12,881 Tenant rent receivable 1,225 � Prepaid insurance 5,583 Swap assets 41,046 Other assets 9,768 TOTAL NON-OPERATING, NON-COMMERCIAL REAL ESTATE ASSETS $ 676,820 Components of Net Asset Value As of June 30, 2023 1 Weighted average based on ABR. Represents ratings of tenants, guarantors or non guarantor parent entities. There can be no assurance that such guarantors or parent entities will satisfy the tenant’s lease obligations. For more information, see definition of investment grade in "Notes and Definitions." 2 Excludes debt premium and deferred financing costs. 3 On April 10, 2023, the Company redeemed all issued and outstanding preferred shares (5mm Series A Preferred Shares which were issued to and held by a third-party international investor).
Property Information
34 USD in thousands, except Annualized Base Rent / SF metrics Segment Property/Tenant Name Address Property Market Property State Building Square Feet Tenancy Type % Leased2 Property Sub Type Year Built/ Renovated1 Property WALT3 % of Total ABR3 1 Industrial RH 825 Rogers Road Stockton/Modesto CA 1,501,400 Single Tenant 100.0 % Warehouse 2015 7.2 3.6 % 2 Industrial Amazon (Etna) 11999 National Road Columbus OH 856,300 Single Tenant 100.0 % Warehouse 2016 — 4 3.0 % 3 Industrial 3M 1650 Macom Drive Chicago IL 978,100 Single Tenant 100.0 % Warehouse 2016 3.3 2.4 % 4 Industrial Samsonite 10480 Yeager Road Jacksonville FL 817,700 Single Tenant 100.0 % Warehouse 2008 1.4 2.0 % 5 Industrial Shaw Industries 445 Northport Parkway Savannah GA 1,001,500 Single Tenant 100.0 % Warehouse 2018 9.8 1.7 % 6 Industrial PepsiCo 8060 State Road 33 North Tampa FL 605,400 Single Tenant 100.0 % Warehouse 2018 5.1 1.6 % 7 Industrial Amcor 975 West Main Street Cleveland OH 586,700 Single Tenant 100.0 % Manufacturing 1986 9.3 1.3 % 8 Industrial Amazon (Arlington Heights) 1455 West Cellular Drive Chicago IL 182,900 Single Tenant 100.0 % Warehouse 2020 — 4 1.2 % 9 Industrial Pepsi Bottling Ventures 390 Business Park Drive Winston-Salem NC 526,300 Single Tenant 100.0 % Warehouse 2008 9.1 0.9 % 10 Industrial Roush Industries 333/777 Republic Drive Detroit MI 169,200 Single Tenant 100.0 % Industrial/R&D 2000 5.4 0.8 % 11 Industrial OceanX 6390 Commerce Court Columbus OH 312,000 Single Tenant 100.0 % Warehouse 2015 6.1 0.7 % 12 Industrial Berry Global 1515 Franklin Boulevard Chicago IL 193,700 Single Tenant 100.0 % Manufacturing 2003 9.5 0.7 % 13 Industrial Atlas Copco 3301 Cross Creek Parkway Detroit MI 120,000 Single Tenant 100.0 % Industrial/R&D 2014 2.3 0.7 % 14 Industrial Huntington Ingalls (500 W. Park Lane) 500 West Park Lane Hampton Roads VA 258,300 Single Tenant 100.0 % Warehouse 1999 4.5 0.6 % 15 Industrial Huntington Ingalls (300 W. Park Lane) 300 West Park Lane Hampton Roads VA 257,200 Single Tenant 100.0 % Warehouse 2000 4.5 0.6 % 16 Industrial ZF WABCO 8225 Patriot Boulevard Charleston SC 145,200 Single Tenant 100.0 % Warehouse 2016 10.2 0.6 % 17 Industrial TransDigm 110 Algonquin Parkway Northern New Jersey NJ 114,300 Single Tenant 100.0 % Manufacturing 1986 4.8 0.5 % 18 Industrial Hopkins 428 Peyton Street Emporia KS 320,800 Single Tenant 100.0 % Manufacturing 2000 13.5 0.5 % 19 Industrial Fidelity Building Services 25 Loveton Circle Baltimore MD 54,800 Single Tenant 100.0 % Industrial/R&D 1981 11.5 0.4 % INDUSTRIAL TOTAL 9,001,800 100.0 % 6.6 $ 48,358 (1) Year shown is either the year built or year substantially renovated. (2) Total calculated as a weighted average based on rentable square feet. (3) Total calculated as a weighted average based on ABR. (4) Lease restricts certain disclosures. Property List As of June 30, 2023
35 USD in thousands, except Annualized Base Rent / SF metrics Segment Property / Tenant Name Address Property Market Property State Building Square Feet Tenancy Type Leased %2 Property Sub Type Year Built/ Renovated1 Property WALT3 % of Total ABR3 20 Office Southern Company 3525 Colonnade Parkway Birmingham AL 669,400 Single Tenant 100.0 % Office 2018 20.7 4.6 % 21 Office Keurig Dr. Pepper (53 South Avenue) 53 South Avenue Boston MA 280,600 Single Tenant 100.0 % Office 2014 6.4 4.3 % 22 Office Freeport McMoRan 333 N. Central Ave Phoenix AZ 249,000 Single Tenant 100.0 % Office 2010 3.9 3.9 % 23 Office Maxar Technologies 1300 West 120th Avenue Denver CO 430,000 Single Tenant 100.0 % Office 2002 7.0 3.7 % 24 Office LPL (1055 & 1060 LPL Way) 1055 & 1060 LPL Way Charlotte SC 307,200 Single Tenant 100.0 % Office 2016 13.3 2.9 % 25 Office Travel & Leisure, Co. 14 Sylvan Way Northern New Jersey NJ 203,500 Single Tenant 100.0 % Office 2013 6.2 2.8 % 26 Office IGT 6355 South Buffalo Drive Las Vegas NV 222,300 Single Tenant 100.0 % Office 2008 7.5 2.5 % 27 Office International Paper 1740 International Drive Memphis TN 238,600 Single Tenant 100.0 % Office 2015 — 4 2.5 % 28 Office Terraces at Copley Point 5887 Copley Drive San Diego CA 201,700 Multi-Tenant 70.3 % Office 2009 7.4 2.3 % 29 Office onsemi (5701 N. Pima Road) 5701 N. Pima Road Phoenix AZ 133,400 Single Tenant 100.0 % Office 2017 — 4 1.6 % 30 Office Zoetis 10 Sylvan Way Northern New Jersey NJ 125,700 Single Tenant 100.0 % Office 2016 — 4 1.5 % 31 Office McKesson (5801 N. Pima Road) 5801 North Pima Road Phoenix AZ 124,900 Single Tenant 100.0 % Office 2019 — 4 1.5 % 32 Office McKesson (5601 N. Pima Road) 5601 North Pima Road Phoenix AZ 138,200 Single Tenant 100.0 % Office 2017 — 4 1.5 % 33 Office York Space Systems (East Village) 6060 South Willow Drive Denver CO 138,100 Single Tenant 100.0 % Office/R&D 2020 8.5 1.5 % 34 Office 40 Wight 40 Wight Avenue Baltimore MD 132,200 Multi Tenant 93.2 % Office 2017 9.3 1.5 % 35 Office Corteva Agriscience 8501 NW 62nd Ave Des Moines IA 184,300 Single Tenant 100.0 % Office/Lab 2014 3.4 1.4 % 36 Office Keurig Dr. Pepper (63 South Avenue) 63 South Avenue Boston MA 150,700 Single Tenant 100.0 % Office/Lab/R&D 2013 6.4 1.4 % 37 Office LPL (1040 LPL Way) 1040 LPL Way Charlotte SC 144,400 Single Tenant 100.0 % Office 2016 13.3 1.4 % 38 Office Toshiba TEC 3901 South Miami Boulevard Raleigh/Durham NC 200,800 Single Tenant 100.0 % Office 2016 4.8 1.3 % Property List (continued) As of June 30, 2023 (1) Year shown is either the year built or year substantially renovated. (2) Total calculated as a weighted average based on rentable square feet. (3) Total calculated as a weighted average based on ABR. (4) Lease restricts certain disclosures.
36 USD in thousands, except Annualized Base Rent / SF metrics Segment Property/Tenant Name Address Property Market Property State Building Square Feet Tenancy Type % Leased2 Property Sub Type Year Built/ Renovated1 Property WALT3 % of Total ABR3 39 Office Occidental Petroleum 501 North Division Street Platteville CO 114,500 Single Tenant 100.0 % Office 2013 10.3 1.1 % 40 Office PPG 400 Bertha Lamme Drive Pittsburgh PA 118,000 Single Tenant 100.0 % Office 2010 7.5 1.1 % 41 Office Avnet (Phoenix) 2211 S 47th Street Phoenix AZ 176,400 Single Tenant 100.0 % Office 1997 3.2 1.1 % 42 Office MISO 720 City Center Drive Indianapolis IN 133,400 Single Tenant 100.0 % Office 2016 4.8 1.0 % 43 Office Amentum (Heritage III) 13500 Heritage Parkway Dallas/Fort Worth TX 119,000 Single Tenant 100.0 % Office 2006 — 4 0.9 % 44 Office Fresenius Medical Care 3355 Earl Campbell Pkwy Tyler TX 81,000 Single Tenant 100.0 % Office 2016 8.3 0.9 % 45 Office Cigna (500 Great Circle Road) 500 Great Circle Road Nashville TN 72,200 Single Tenant 100.0 % Office 2012 4.0 0.7 % 46 Office Cigna (Express Scripts) 501 Ronda Court Pittsburgh PA 70,500 Single Tenant 100.0 % Office/Data Center 2015 2.0 0.7 % 47 Office Parallon 6451 126th Avenue North Tampa FL 83,200 Single Tenant 100.0 % Office 2013 1.8 0.7 % 48 Office AT&T (14500 NE 87th Street) 14500 NE 87th Street Seattle/Puget Sound WA 60,000 Single Tenant 100.0 % Office/Data Center 1995 4.2 0.7 % 49 Office AT&T (14520 NE 87th Street) 14520 NE 87th Street Seattle/Puget Sound WA 59,800 Single Tenant 100.0 % Office/Data Center 1995 4.2 0.7 % 50 Office Tech Data 19031 Ridgewood Parkway San Antonio TX 58,000 Single Tenant 100.0 % Office 2014 1.4 0.5 % 51 Office Rapiscan Systems 23 Frontage Road Boston MA 64,200 Single Tenant 100.0 % Office/Lab 2014 3.9 0.4 % 52 Office 136 & 204 Capcom 136 & 204 Capcom Avenue Raleigh/Durham NC 63,000 Multi Tenant 100.0 % Office/R&D 2010 2.7 0.4 % 53 Office AT&T (14560 NE 87th Street) 14560 NE 87th Street Seattle/Puget Sound WA 36,000 Single Tenant 100.0 % Office/Data Center 1995 4.2 0.4 % 54 Office 530 Great Circle Road 530 Great Circle Road Nashville TN 100,200 Single Tenant 100.0 % Office/Lab 2011 — 4 — % OFFICE TOTAL 5,684,400 98.8 % 7.9 $ 112,304 (1) Year shown is either the year built or year substantially renovated. (2) Total calculated as a weighted average based on rentable square feet. (3) Total calculated as a weighted average based on ABR. (4) Lease restricts certain disclosures. Property List (continued) As of June 30, 2023
37 Property List (continued) As of June 30, 2023 (1) Year shown is either the year built or year substantially renovated. (2) Total calculated as a weighted average based on rentable square feet. (3) Total calculated as a weighted average based on ABR. (4) Lease restricts certain disclosures. USD in thousands, except Annualized Base Rent / SF metrics Segment Property / Tenant Name Address Property Market Property State Building Square Feet Tenancy Type % Leased2 Property Sub- Type Year Built/ Renovated1 Property WALT3 % of Total ABR3 55 Other Wyndham Hotels & Resorts 22 Sylvan Way Northern New Jersey NJ 249,400 Single Tenant 100.0 % Office 2009 6.2 3.6 % 56 Other Wood Group (Westgate II) 17320 Katy Freeway Houston TX 186,300 Single Tenant 100.0 % Office 2014 0.8 2.3 % 57 Other Schlumberger 1200 Enclave Parkway Houston TX 149,700 Single Tenant 98.6 % Office 1999 — 4 1.8 % 58 Other Level 3 (ParkRidge One) 10475 Park Meadows Drive Denver CO 166,700 Single Tenant 100.0 % Office 1999 — 4 1.7 % 59 Other Raytheon Technologies 2730 West Tyvola Road Charlotte NC 198,900 Single Tenant 100.0 % Office 1999 — 4 1.6 % 60 Other Hitachi Energy USA 500 West Highway 94 Jefferson City MO 660,000 Single Tenant 100.0 % Manufacturing 1972 1.2 1.4 % 61 Other Avnet (Chandler) 6700 West Morelos Place Phoenix AZ 231,500 Single Tenant 100.0 % Industrial/R&D 2008 — 4 1.3 % 62 Other Franklin Center 6841 Benjamin Franklin Drive Baltimore MD 202,500 Multi-Tenant 55.4 % Office 2008 3.1 1.3 % 63 Other KBR 345 Bob Heath Drive Huntsville AL 120,000 Single Tenant 100.0 % Office 2013 0.2 1.0 % 64 Other 30 Independence 30 Independence Boulevard Northern New Jersey NJ 207,300 Multi-Tenant 52.0 % Office 2020 7.4 1.0 % 65 Other Northrop Grumman 4065 Colonel Glenn Highway Cincinnati/Dayton OH 99,200 Single Tenant 100.0 % Office 2012 1.2 0.8 % 66 Other MGM Corporate Center (880 Grier Drive) 880 Grier Drive Las Vegas NV 81,000 Single Tenant 100.0 % Office 1988 1.2 0.6 % 67 Other Hitachi Astemo 9296 Intermodal North Court Columbus OH 304,600 Single Tenant 100.0 % Warehouse 2014 1.8 0.6 % 68 Other MGM Corporate Center (840 Grier Drive) 840 Grier Drive Las Vegas NV 60,500 Single Tenant 100.0 % Office 1997 1.2 0.4 % 69 Other Administrative Office of Pennsylvania Courts 5035 Ritter Road Harrisburg PA 56,600 Single Tenant 100.0 % Office/Data Center 1988 1.0 0.4 % 70 Other Owens Corning 4535 Enterprise Drive Northwest Charlotte NC 61,200 Single Tenant 100.0 % Manufacturing 1998 1.5 0.2 % 71 Other Crosspoint 20022 North 31st Avenue Phoenix AZ 351,600 Multi-Tenant 7.8 % Office 2021 — 4 0.2 % 72 Other MGM Corporate Center (950 Grier Drive) 950 Grier Drive Las Vegas NV 26,800 Single Tenant 100.0 % Office 1989 1.2 0.1 % 73 Other Gold Pointe Corp Ctr Bldg C 11971 Foundation Place Sacramento CA 145,900 Vacant 3.2 % Office 2002 — — % OTHER TOTAL 3,559,700 81.5 % 2.7 $ 41,143 TOTAL CONSOLIDATED PORTFOLIO 18,245,900 96.0 % 6.5 $ 201,805
Portfolio Characteristics
39 1 Weighted average rental increase is based on the remaining term of each lease as of June 30, 2023. Excludes leases with remaining term less than one year. Lease Escalation Frequency % Annualized Base Rent Wtd. Avg. Annual Growth Rate 1 Annually 85.5% 2.1% Every 5 Years 11.6 0.6 Other Frequencies 1.2 7.0 No Escalations 1.7 — PORTFOLIO TOTAL / WEIGHTED AVERAGE 100.0% 2.0% Rent Growth As of June 30, 2023 Annually 84.5% Every 5 Years 12.1% Other Frequencies 1.4% No Escalations 2.1% Annually 93.1% No Escalations 6.9% Annually 90.9% Every 5 Years 9.1% Annually 80.8% Every 5 Years 17.3% Other Frequencies 2.0% Industrial Industrial and OfficeOffice Other Lease Escalations by Segment
40 Top 10 Tenants Tenant/Major Tenant Rating1 % of Annualized Base Rent2 WALT (years)3 1 Keurig Dr. Pepper Baa14 5.7% 6.4 2 Southern Company Services BBB+ 4.6 20.7 3 LPL Holdings BBB- 4.2 13.3 4 Amazon5 AA 4.2 8.1 5 Freeport McMoRan Baa24 3.9 3.9 6 Maxar Technologies B+ 3.7 7.0 7 RH IG106 3.6 7.2 8 Wyndham Hotels & Resorts BB- 3.6 6.2 9 McKesson A- 3.0 5.3 10 Travel & Leisure, Co. BB- 2.8 6.2 Top 10 Total/Average Lease Term 39.3% 8.7 Investment Grade Calculation Based On:2 Tenant Profile Tenant 34.7 % Number of Tenants 70 Guarantor 9.1 Average Square Footage Leased per Tenant 250,239 Tenant/Guarantor 43.8 Average Annualized Base Rent per Sq Ft - Industrial $5.37 Non-Guarantor Parent 19.7 Average Annualized Base Rent per Sq Ft - Office $19.76 Total Investment Grade 63.5 % Average Annualized Base Rent per Sq Ft - Other $11.56 Weighted Average Lease Term (WALT)3 6.5 Tenant Concentration: Consolidated As of June 30, 2023 1 Represents S&P ratings of tenants, guarantors, or non-guarantor parent entities, issued at http://www.spgglobal.com, unless otherwise noted. 2 Based on Annualized Base Rent by tenant as compared to consolidated total. 3 Weighted average based on ABR. 4 Represents a rating issued by Moody's at http://www.moodys.com. 5 Represents the combined base rental revenue for two properties leased to the tenant/major tenant. 6 Represents a rating issued by Bloomberg services.
41 Top 10 Tenants Tenant/Major Tenant Rating1 % of Annualized Base Rent2 WALT (years)3 1 Keurig Dr. Pepper Baa14 7.2% 6.4 2 Southern Company Services BBB+ 5.7 20.7 3 LPL Holdings BBB- 5.3 13.3 4 Amazon5 AA 5.3 8.1 5 Freeport McMoRan Baa24 4.9 3.9 6 Maxar Technologies B+ 4.7 7.0 7 RH IG106 4.6 7.2 8 McKesson A- 3.8 5.3 9 Travel & Leisure, Co. BB- 3.6 6.2 10 IGT BB+ 3.2 7.5 Top 10 Total/Average Lease Term 48.3% 8.9 Investment Grade Calculation Based On:2 Tenant Profile Tenant 37.3 % Number of Tenants 48 Guarantor 9.7 Average Square Footage Leased per Tenant 304,525 Tenant/Guarantor 47.0 Average Annualized Base Rent per Sq Ft: Industrial and Office $11.05 Non-Guarantor Parent 20.6 Weighted Average Lease Term (WALT)3 7.6 Total Investment Grade 67.6 % Tenant Concentration: Industrial and Office As of June 30, 2023 1 Represents S&P ratings of tenants, guarantors, or non-guarantor parent entities, issued at http://www.spgglobal.com, unless otherwise noted. 2 Based on Annualized Base Rent by tenant for industrial and office segments. 3 Weighted average based on ABR. 4 Represents a rating issued by Moody's at http://www.moodys.com. 5 Represents the combined base rental revenue for two properties leased to the tenant/major tenant. 6 Represents a rating issued by Bloomberg services.
42 Top 10 Tenants Tenant/Major Tenant Rating1 % of Annualized Base Rent2 WALT (years)3 1 Amazon4 AA 17.5% 8.1 2 RH IG10 5 15.2 7.2 3 3M Company A2 6 10.1 3.3 4 Samsonite BB 8.5 1.4 5 Shaw Industries AA 6.9 9.8 6 PepsiCo A+ 6.6 5.1 7 Amcor BBB 5.5 9.3 8 Huntington Ingalls BBB- 5.3 4.5 9 Pepsi Bottling Ventures, LLC A2 6 3.9 9.1 10 Roush Industries, Inc. NR 7 3.4 5.4 Top 10 Total/Average Lease Term 82.9% 6.3 Investment Grade Calculation Based On:2 Tenant Profile Tenant 25.3 % Number of Tenants 17 Guarantor 20.3 Average Square Footage Leased per Tenant 529,518 Tenant/Guarantor 45.6 Average Annualized Base Rent per Sq Ft: Industrial $5.37 Non-Guarantor Parent 28.3 Weighted Average Lease Term (WALT)3 6.6 Total Investment Grade 73.9 % Tenant Concentration: Industrial As of June 30, 2023 1 Represents S&P ratings of tenants, guarantors, or non-guarantor parent entities, issued at http://www.spgglobal.com, unless otherwise noted. 2 Based on Annualized Base Rent by tenant for industrial segment. 3 Weighted average based on ABR. 4 Represents the combined base rental revenue for two properties leased to the tenant/major tenant. 5 Represents a rating issued by Bloomberg services. 6 Represents a rating issued by Moody's at http://www.moodys.com. 7 Indicates that the tenant is not rated by the major credit agencies used.
43 Top 10 Tenants Tenant/Major Tenant Rating1 % of Annualized Base Rent2 WALT (years)3 1 Keurig Dr. Pepper Baa14 10.3% 6.4 2 Southern Company Services BBB+ 8.2 20.7 3 LPL Holdings BBB- 7.6 13.3 4 Freeport McMoRan Baa2 4 7.0 3.9 5 Maxar Technologies B+ 6.7 7.0 6 McKesson A- 5.5 5.3 7 Travel & Leisure, Co. BB- 5.1 6.2 8 IGT BB+ 4.6 7.5 9 International Paper Company BBB 4.5 6.7 10 Guild Mortgage Company HY15 4.1 7.4 Top 10 Total/Average Lease Term 63.6% 8.9 Investment Grade Calculation Based On:2 Tenant Profile Tenant 42.4 % Number of Tenants 31 Guarantor 5.1 Average Square Footage Leased per Tenant 181,142 Tenant/Guarantor 47.5 Average Annualized Base Rent per Sq Ft: Office $19.76 Non-Guarantor Parent 17.4 Weighted Average Lease Term (WALT)3 7.9 Total Investment Grade 64.9 % Tenant Concentration: Office As of June 30, 2023 1 Represents S&P ratings of tenants, guarantors, or non-guarantor parent entities, issued at http://www.spgglobal.com, unless otherwise noted. 2 Based on Annualized Base Rent by tenant for office segment. 3 Weighted average based on ABR. 4 Represents a rating issued by Moody's at http://www.moodys.com.
44 Industry Concentration: Consolidated As of June 30, 2023,�2021 Top 10 Industries Top 20 Sub-Industries Industry % of Annualized Base Rent1 Sub-Industry % of Annualized Base Rent1 1 Capital Goods 15.9 % 1 Aerospace & Defense 10.3 % 2 Consumer Services 10.6 2 Soft Drinks 8.2 3 Materials 9.9 3 Hotels, Resorts & Cruise Lines 6.4 4 Food, Beverage & Tobacco 8.2 4 Health Care Services 4.6 5 Commercial & Professional Services 6.2 5 Renewable Electricity 4.6 6 Health Care Equipment & Services 6.0 6 Investment Banking & Brokerage 4.2 7 Utilities 5.6 7 Internet & Direct Marketing Retail 4.2 8 Energy 5.2 8 Oil & Gas Equipment & Services 4.1 9 Retailing 4.7 9 Copper 3.9 10 Diversified Financials 4.4 10 Paper Packaging 3.8 � Top 10 total 76.7 % 11 Casinos & Gaming 3.7 All others 23.3 % 12 Commercial & Professional Services 3.7 � � � 13 Homefurnishing Retail 3.6 14 Technology Distributors 2.9 � � � 15 Industrial Conglomerates 2.4 16 IT Consulting & Other Services 2.3 � � � 17 Apparel, Accessories & Luxury Goods 2.0 18 Integrated Telecommunication Services 1.8 � � � 19 Semiconductors 1.7 20 Alternative Carriers 1.7 � � � � Top 20 total 80.1 % All others 19.9 % 1 Based on Annualized Base Rent for wholly-owned portfolio.
45 Industry Concentration: Industrial and Office As of June 30, 2023,�2021 Top 10 Industries Top 20 Sub-Industries Industry % of Annualized Base Rent1 Sub-Industry % of Annualized Base Rent1 1 Capital Goods 14.5 % 1 Soft Drinks 10.4 % 2 Materials 12.4 2 Aerospace & Defense 9.9 3 Food, Beverage & Tobacco 10.4 3 Health Care Services 5.8 4 Health Care Equipment & Services 7.5 4 Renewable Electricity 5.7 5 Utilities 7.0 5 Investment Banking & Brokerage 5.3 6 Consumer Services 6.8 6 Internet & Direct Marketing Retail 5.3 7 Commercial & Professional Services 6.0 7 Copper 4.9 8 Retailing 6.0 8 Paper Packaging 4.8 9 Diversified Financials 5.4 9 Commercial & Professional Services 4.6 10 E-Commerce 5.3 10 Homefurnishing Retail 4.6 � Top 10 total 81.3 % 11 Hotels, Resorts & Cruise Lines 3.6 All others 18.7 % 12 Casinos & Gaming 3.2 � � � 13 Industrial Conglomerates 3.1 14 Apparel, Accessories & Luxury Goods 2.5 � � � 15 Integrated Telecommunication Services 2.2 16 Textiles 2.1 � � � 17 Semiconductors 2.1 18 Technology Distributors 2.0 � � � 19 Pharmaceuticals 1.9 20 Fertilizers & Agricultural Chemicals 1.8 � � � � Top 20 total 85.8 % All others 14.2 % 1 Based on Annualized Base Rent for the industrial and office segments.
46 Industry Concentration: Industrial As of June 30, 20232021 Top 8 Industries Top 14 Sub-Industries Industry % of Annualized Base Rent1 Sub-Industry % of Annualized Base Rent1 1 Capital Goods 22.8 % 1 Internet & Direct Marketing 17.5 % 2 E-Commerce 17.5 2 Homefurnishing Retail 15.2 3 Consumer Durables & Apparel 15.4 3 Soft Drinks 10.6 4 Retailing 15.2 4 Industrial Conglomerates 10.1 5 Food, Beverage & Tobacco 10.6 5 Apparel, Accessories & Luxury Goods 8.5 6 Materials 8.5 6 Aerospace & Defense 7.6 7 Automobiles & Components 5.5 7 Textiles 6.9 8 Commercial & Professional Services 4.5 8 Paper Packaging 5.5 � Top 8 total 100.0 % 9 Diversified Support Services 4.5 All others — % 10 Auto Components 3.4 � � � 11 Metal & Glass Containers 3.0 12 Industrial Machinery 2.8 � � � 13 Construction Machinery & Heavy Trucks 2.3 14 Auto Parts & Equipment 2.1 Top 14 total 100.0 % � � � All others — % 1 Based on Annualized Base Rent for industrial segment.
47 Industry Concentration: Office As of June 30, 2023 2021 Top 10 Industries Top 20 Sub-Industries Industry % of Annualized Base Rent1 Sub-Industry % of Annualized Base Rent1 1 Materials 14.1 % 1 Aerospace & Defense 10.9 % 2 Capital Goods 10.9 2 Soft Drinks 10.3 3 Health Care Equipment & Services 10.8 3 Health Care Services 8.3 4 Food, Beverage & Tobacco 10.3 4 Renewable Electricity 8.2 5 Utilities 10.1 5 Investment Banking & Brokerage 7.6 6 Consumer Services 9.7 6 Copper 7.0 7 Diversified Financials 7.7 7 Commercial & Professional Services 6.6 8 Commercial & Professional Services 6.6 8 Hotels, Resorts & Cruise Lines 5.1 9 Technology Hardware & Equipment 5.2 9 Casinos & Gaming 4.6 10 Telecommunication Services 3.2 10 Paper Packaging 4.5 Top 10 total 88.6 % 11 Integrated Telecommunication Services 3.2 All others 11.4 % 12 Semiconductors 2.9 13 Technology Distributors 2.8 14 Pharmaceuticals 2.8 15 Fertilizers & Agricultural Chemicals 2.6 16 Technology Hardware, Storage & Peripherals 2.3 17 Oil & Gas Exploration & Production 2.0 18 Home Improvement Retail 2.0 19 Electric Utilities 1.8 20 IT Consulting & Other Services 1.7 � � Top 20 total 97.2 % All others 2.8 % 1 Based on Annualized Base Rent for office segment.
48 Geographic Distribution (% of Annualized Base Rent1) Market Concentration: Consolidated As of June 30, 2023 (USD in thousands) Top 10 Markets (% of Annualized Base Rent) Markets Annualized Base Rent % of Annualized Base Rent1 1 Phoenix $ 22,591 11.2 % 2 Northern New Jersey 19,231 9.5 3 Denver 13,912 6.9 4 Boston 12,425 6.2 5 Charlotte 12,117 6.0 6 Birmingham 9,224 4.6 7 Columbus 8,752 4.3 8 Chicago 8,719 4.3 9 Houston 8,233 4.1 10 Las Vegas 7,538 3.7 Top 10 total $ 122,742 60.8 % 11.2% 9.5% 8.0% 6.5% 6.4% 6.2% 5.9% 5.6% 4.8% 4.4% 31.5% Arizona New Jersey Colorado Ohio Texas Massachusetts California Alabama South Carolina North Carolina All Others 1 Based on Annualized Base Rent for wholly-owned portfolio.
49 Geographic Distribution (% of Annualized Base Rent1) Market Concentration: Industrial and Office As of June 30, 2023 (USD in thousands) Top 10 Markets (% of Annualized Base Rent) Markets Annualized Base Rent % of Annualized Base Rent1 1 Phoenix $ 19,545 12.2 % 2 Boston 12,425 7.7 3 Denver 10,523 6.5 4 Northern New Jersey 9,933 6.2 5 Birmingham 9,224 5.7 6 Chicago 8,719 5.4 7 Charlotte 8,552 5.3 8 Columbus 7,557 4.7 9 Stockton/Modesto 7,340 4.6 10 Las Vegas 5,121 3.2 Top 10 total $ 98,939 61.5 % 12.2% 8.0% 7.7% 7.4% 6.4% 6.2% 6.0% 5.7% 5.4% 5.4% 29.5% Arizona Colorado Massachusetts California Ohio New Jersey South Carolina Alabama Illinois Florida All Others 1 Based on Annualized Base Rent for the industrial and office segments.
50 Geographic Distribution (% of Annualized Base Rent1) Market Concentration: Industrial As of June 30, 2023 (USD in thousands) Top 10 Markets (% of Annualized Base Rent) Markets Annualized Base Rent % of Annualized Base Rent1 1 Chicago $ 8,719 18.0 % 2 Columbus 7,557 15.6 3 Stockton/Modesto 7,340 15.2 4 Jacksonville 4,094 8.5 5 Savannah 3,335 6.9 6 Tampa 3,214 6.6 7 Detroit 3,042 6.3 8 Cleveland 2,662 5.5 9 Hampton Roads 2,564 5.3 10 Winston-Salem 1,893 3.9 Top 10 total $ 44,420 91.8 % 21.1% 18.0% 15.2% 15.1% 6.9% 6.3% 5.3% 3.9% 2.3% 2.3% 3.6% Ohio Illinois California Florida Georgia Michigan Virginia North Carolina South Carolina New Jersey All Others 1 Based on Annualized Base Rent for industrial segment.
51 Geographic Distribution (% of Annualized Base Rent1) Market Concentration: Office As of June 30, 2023 (USD in thousands) Top 10 Markets (% of Annualized Base Rent) Markets Annualized Base Rent % of Annualized Base Rent1 1 Phoenix $ 19,545 17.4 % 2 Boston 12,425 11.1 3 Denver 10,523 9.4 4 Birmingham 9,224 8.2 5 Northern New Jersey 8,842 7.9 6 Charlotte 8,552 7.6 7 Las Vegas 5,121 4.6 8 Memphis 5,030 4.5 9 San Diego 4,597 4.1 10 Pittsburgh 3,654 3.3 Top 10 total $ 87,513 78.1 % 17.4% 11.4% 11.1% 8.2% 7.9% 7.6% 5.8% 4.6% 4.1% 4.1% 17.9% Arizona Colorado Massachusetts Alabama New Jersey South Carolina Tennessee Nevada Texas California All Others 1 Based on Annualized Base Rent for office segment.
52 Lease Expirations: Consolidated As of June 30, 2023 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rent) 1 Based on Annualized Base Rent for wholly-owned portfolio. 2 Excludes approximately 2K of SF related to cafes. $2,110 $24,313 $9,444 $12,723 $14,179 $19,636 $34,095 $25,936 $17,545 $10,519 $31,305 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 >2032 Expiring Leases Year Industrial Office Other Total Approx. Square Feet Annualized Base Rent % of Annualized Base Rent1 Remaining 2023 — — 1 1 120,000 $ 2,110 1.0 % 2024 1 1 9 11 2,357,400 24,313 12.0 2025 1 4 3 8 871,900 9,444 4.7 2026 1 2 1 4 1,449,100 12,723 6.3 2027 — 7 — 7 570,700 14,179 7.0 2028 5 3 5 13 2,152,100 19,636 9.7 2029 1 6 1 8 1,565,800 34,095 16.9 2030 1 3 3 7 2,385,100 25,936 12.9 2031 2 3 — 5 1,460,500 17,545 8.7 2032 2 3 — 5 1,374,300 10,519 5.2 >2032 5 6 1 12 3,203,200 31,305 15.6 Vacant — — — — 726,000 — — Totals 19 38 24 81 18,236,100 2 $ 201,805 100.0 %
53 Lease Expirations: Industrial and Office As of June 30, 2023 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rent) $— $5,076 $4,684 $10,031 $14,179 $16,293 $26,830 $24,502 $17,545 $10,519 $31,003 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 >2032 Expiring Leases Year Industrial Office Approx. Square Feet Annualized Base Rent % of Annualized Base Rent1 Remaining 2023 — — — $ — — % 2024 1 1 875,700 5,076 3.2 2025 1 4 307,200 4,684 2.9 2026 1 2 1,338,800 10,031 6.2 2027 — 7 570,700 14,179 8.8 2028 5 3 1,876,800 16,293 10.1 2029 1 6 1,316,400 26,830 16.7 2030 1 3 2,311,700 24,502 15.3 2031 2 3 1,460,500 17,545 10.9 2032 2 3 1,374,300 10,519 6.5 >2032 5 6 3,185,100 31,003 19.4 Vacant — — 69,000 — — Totals 19 38 14,686,200 $ 160,662 100.0 % 1 Based on Annualized Base Rent for the industrial and office segments.
54 Lease Expirations: Industrial As of June 30, 2023 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rent) $— $4,094 $1,377 $4,902 $— $8,534 $1,482 $7,340 $8,451 $4,555 $7,623 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 >2032 Expiring Leases Year Leases Approx. Square Feet Annualized Base Rent % of Annualized Base Rent1 Remaining 2023 — — $ — — % 2024 1 817,700 4,094 8.5 2025 1 120,000 1,377 2.8 2026 1 978,100 4,902 10.1 2027 — — — — 2028 5 1,404,400 8,534 17.6 2029 1 312,000 1,482 3.1 2030 1 1,501,400 7,340 15.2 2031 2 1,039,200 8,451 17.5 2032 2 1,113,000 4,555 9.4 >2032 5 1,716,000 7,623 15.8 Vacant — — — — Totals 19 9,001,800 $ 48,358 100.0 % 1 Based on annualized base rent for industrial segment.
55 Lease Expirations: Office As of June 30, 2023 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rent) $— $982 $3,307 $5,129 $14,179 $7,759 $25,348 $17,162 $9,094 $5,964 $23,380 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 >2032 Expiring Leases Year Leases Approx. Square Feet Annualized Base Rent % of Annualized Base Rent1 Remaining 2023 — — $ — — % 2024 1 58,000 982 0.9 2025 4 187,200 3,307 2.9 2026 2 360,700 5,129 4.6 2027 7 570,700 14,179 12.6 2028 3 472,400 7,759 6.9 2029 6 1,004,400 25,348 22.6 2030 3 810,300 17,162 15.3 2031 3 421,300 9,094 8.1 2032 3 261,300 5,964 5.3 >2032 6 1,469,100 23,380 20.8 Vacant — 70,000 — — Totals 38 5,685,400 $ 112,304 100.0 % 1 Based on Annualized Base Rent for office segment.
56 Lease Expirations: Other As of June 30, 2023 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rent1) $2,110 $19,237 $4,760 $2,692 $— $3,343 $7,265 $1,434 $— $— $302 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 >2032 Expiring Leases Year Total Approx. Square Feet Annualized Base Rent % of Annualized Base Rent1 Remaining 2023 1 120,000 $ 2,110 5.1 % 2024 9 1,481,700 19,237 46.8 2025 3 564,700 4,760 11.6 2026 1 110,300 2,692 6.5 2027 — — — — 2028 5 275,300 3,343 8.1 2029 1 249,400 7,265 17.7 2030 3 73,400 1,434 3.5 2031 — — — — 2032 — — — — >2032 1 18,100 302 0.7 Vacant — 657,000 — — Totals 24 3,549,900 $ 41,143 100.0 % 1 Based on Annualized Base Rent by expiring leases for other segment.
57 Geographic Distribution (% of Annualized Base Rent1) Market Concentrations: Other As of June 30, 2023 (USD in thousands) Top 10 Markets (% of Annualized Base Rent) Markets Annualized Base Rent % of Annualized Base Rent1 1 Northern New Jersey $ 9,298 22.6 % 2 Houston 8,233 20.0 3 Charlotte 3,565 8.7 4 Denver 3,389 8.2 5 Phoenix 3,046 7.4 6 Jefferson City 2,798 6.8 7 Baltimore 2,692 6.5 8 Las Vegas 2,417 5.9 9 Huntsville 2,110 5.1 10 Cincinnati/Dayton 1,632 4.0 Top 10 total $ 39,180 95.2 % 22.6% 20.0% 8.7% 8.2% 7.4% 6.9% 6.8% 6.5% 5.9% 5.1% 1.9% New Jersey Texas North Carolina Colorado Arizona Ohio Missouri Maryland Nevada Alabama All Others 1 Based on Annualized Base Rent for other segment.
Notes & Definitions
59 Notes & Definitions ABR (Annualized Base Rent) “Annualized Base Rent” or “ABR” means the contractual base rent excluding abatement periods and deducting base year operating expenses for gross and modified gross leases as of June 30, 2023, unless otherwise specified, multiplied by 12 months. For properties in the Company's portfolio that had rent abatement periods as of June 30, 2023, we used the monthly contractual base rent payable following expiration of the abatement. Adjusted EBITDA "Adjusted EBITDA" means an amount, as defined in the Company's Credit Facility, derived from (a) net income before (b) interest, taxes, depreciation and amortization (EBITDA), plus (c) acquisition fees and expenses, (d) asset and property management fees, (e) straight-line rents and in-place lease amortization for the period, further adjusted for (f) acquisitions that have closed during the period, (g) certain reserves for capital expenditures, and (h) excluding activity relating to any partnership to the extent we are not a general partner and to the extent we are not liable for the associated indebtedness. We use Adjusted EBITDA, EBITDA and EBITDAre as non-GAAP supplemental performance measures to evaluate the operating performance of the Company. We believe these measures are helpful to investors because they are direct measures of the actual operating results of our properties. However, because Adjusted EBITDA, EBITDA and EBITDAre are calculated before recurring cash charges including interest expense and income taxes, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our liquidity is limited. Accordingly, Adjusted EBITDA, EBITDA and EBITDAre should not be considered alternatives to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our liquidity. Average Annual Rent Escalations "Average Annual Rent Escalations" is defined as weighted average rental increase is based on the remaining term of each lease, excluding leases that expire within one year. EBITDA “EBITDA” is earnings before interest, tax, depreciation and amortization. We use EBITDA as a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. We believe this measure is helpful to investors because it is adirect measure of the actual operating results of our properties. However, because EBITDA is calculated before recurring cash charges, including interest expense and income taxes, and is not adjusted for capital expenditures or other recurring cash requirements of our business, its utility as a measure of our liquidity is limited. Accordingly, EBITDA should not be considered an alternative to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our liquidity or as an alternative to net income, as computed in accordance with GAAP. EBITDA may not be comparable to similarly titled measures of other companies. EBITDAre “EBITDAre” is defined by The National Association of Real Estate Investment Trusts ("NAREIT") as follows: (a) GAAP Net Income plus (b) interest expense plus (c) income tax expense plus (d) depreciation and amortization plus/minus (e) losses and gains on the disposition of depreciated property, including losses/ gains on change of control plus (f) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, plus (g) adjustments to reflect the entity's share of EBITDAre of consolidated affiliates. We use EBITDAre as a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. We believe this measure is helpful to investors because it is a direct measure of the actual operating results of our properties. However, because EBITDAre is calculated before recurring cash charges, including interest expense and income taxes, and is not adjusted for capital expenditures or other recurring cash requirements of our business, its utility as a measure of our liquidity is limited. Accordingly, EBITDAre should not be considered an alternative to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our liquidity or as an alternative to net income, as computed in accordance with GAAP. EBITDAre may not be comparable to similarly titled measures of other companies. Economic Occupancy "Economic Occupancy" means leases effective as of the reporting date. Fixed Charge Coverage "Fixed Charge Coverage" is Adjusted EBITDA annualized divided by sum of principal paid and due, interest expense, and cash dividends on preferred shares.
60 Notes & Definitions (continued) Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO") "FFO" and "AFFO" are non-GAAP financial measures that we believe are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). FFO is defined as net income or loss computed in accordance with GAAP, excluding extraordinary items, as defined by GAAP, and gains and losses from sales of depreciable real estate assets, adding back impairment write-downs of depreciable real estate assets, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustment for unconsolidated partnerships, joint ventures and preferred distributions. Because FFO calculations exclude such items as depreciation and amortization of depreciable real estate assets and gains and losses from sales of depreciable real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), they facilitate comparisons of operating performance between periods and between other REITs. As a result, the Company believes that the use of FFO, together with the required GAAP presentations, provides a more complete understanding of the Company's performance relative to its competitors and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities. 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. Additionally, the Company uses AFFO as a non-GAAP financial measure to evaluate the Company's operating performance. AFFO excludes non-routine and certain non-cash items such as revenues in excess of cash received, amortization of share-based compensation net, deferred rent, amortization of in-place lease valuation, acquisition-related costs, financed termination fee, net of payments received, gain or loss from the extinguishment of debt, unrealized gains (losses) on derivative instruments, write-off transaction costs and other one-time transactions. FFO and AFFO have been revised to include amounts available to both common shareholders and limited partners for all periods presented. AFFO is a measure used among the Company's peer group. The Company also believes that AFFO is a recognized measure of sustainable operating performance by the REIT industry. Further, the Company believes AFFO is useful in comparing the sustainability of its operating performance with the sustainability of the operating performance of other real estate companies.
61 Notes & Definitions (continued) FFO and AFFO - cont. Management believes that AFFO is a beneficial indicator of its ongoing portfolio performance and ability to sustain its current distribution level. More specifically, AFFO isolates the financial results of the Company's operations. AFFO, however, is not considered an appropriate measure of historical earnings as it excludes certain significant costs that are otherwise included in reported earnings. Further, since the measure is based on historical financial information, AFFO for the period presented may not be indicative of future results or the Company's future ability to make or sustain distributions. By providing FFO and AFFO, the Company presents information that assists investors in aligning their analysis with management’s analysis of long-term operating activities. For all of these reasons, the Company believes the non-GAAP measures of FFO and AFFO, in addition to net income (loss) are helpful supplemental performance measures and useful to investors in evaluating the performance of the Company's real estate portfolio. However, a material limitation associated with FFO and AFFO is that they are not indicative of the Company's cash available to fund distributions since other uses of cash, such as capital expenditures at the Company's properties and principal payments of debt, are not deducted when calculating FFO and AFFO. The use of AFFO as a measure of long-term operating performance on value is also limited if the Company does not continue to operate under its current business plan as noted above. FFO and AFFO should not be viewed as a more prominent measure of performance than net income (loss) and each should be reviewed in connection with GAAP measurements. Neither the SEC, NAREIT, nor any other applicable regulatory body has opined on the acceptability of the adjustments contemplated to adjust FFO in order to calculate AFFO and its use as a non-GAAP performance measure. In the future, NAREIT may decide to standardize the allowable exclusions across the REIT industry, and the Company may have to adjust the calculation and characterization of this non-GAAP measure. Investment Grade “Investment grade” means an investment grade credit rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO investment grade rating; management can provide no assurance as to the comparability of these ratings methodologies or that any particular rating for a company is indicative of the rating that a single NRSRO would provide in the event that it rated all companies for which the Company provides credit ratings; to the extent such companies are rated only by non-NRSRO ratings providers, such ratings providers may use methodologies that are different and less rigorous than those applied by NRSROs. In the context of Peakstone’s portfolio, references to “investment grade” include, and credit ratings provided by Peakstone may refer to, tenants, guarantors, and non-guarantor parent entities. There can be no assurance that such guarantors or non- guarantor parent entities will satisfy the tenant’s lease obligations, and accordingly, any such credit ratings may not be indicative of the creditworthiness of the Company's tenants. Net Debt “Net Debt” is total consolidated debt less cash and cash equivalents (excluding restricted cash). Net Debt (pro rata share) “Net Debt (pro rata share)” is total consolidated debt plus unconsolidated debt (pro rata share), less cash and cash equivalents (excluding restricted cash).
62 Notes & Definitions (continued) Net Operating Income (NOI), Cash NOI, and Same Store Cash NOI “NOI” is a non-GAAP measure calculated as net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP, excluding equity in the earnings of our unconsolidated real estate joint ventures, general and administrative expenses, interest expense, depreciation and amortization, impairment of real estate, gains or losses on early extinguishment of debt, gains or losses on sales of real estate, investment income or loss and termination income. Net operating income on a cash basis (“Cash NOI”) is net operating income adjusted to exclude the effect of straight-line rent and amortization of acquired above-and below market lease intangibles adjustments required by GAAP. Net operating income on a cash basis for our Same Store portfolio (“Same Store Cash NOI”) is Cash NOI for properties held for the entirety of all periods presented. We believe that NOI, Cash NOI and Same-Store Cash NOI are helpful to investors as additional measures of operating performance because we believe they help both investors and management to understand the core operations of our properties excluding corporate and financing-related costs and non-cash depreciation and amortization. NOI, Cash NOI and Same Store Cash NOI are unlevered operating performance metrics of our properties and allow for a useful comparison of the operating performance of individual assets or groups of assets. These measures thereby provide an operating perspective not immediately apparent from GAAP income from operations or net income (loss). In addition, NOI, Cash NOI and Same Store Cash NOI are considered by many in the real estate industry to be useful starting points for determining the value of a real estate asset or group of assets. Because NOI, Cash NOI and Same Store Cash NOI exclude depreciation and amortization and capture neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations, the utility of NOI, Cash NOI and Same Store Cash NOI as measures of our performance is limited. Therefore, NOI, Cash NOI and Same Store Cash NOI should not be considered as alternatives to net income (loss), as computed in accordance with GAAP. NOI, Cash NOI and Same Store Cash NOI may not be comparable to similarly titled measures of other companies. The table below represents a reconciliation of NOI to Cash NOI for the interim periods presented in the "Selected Financial Data" on page 9. For the Quarter Ended 3/31/2023 12/31/2022 9/30/2022 (Unaudited, USD in thousands) Industrial Office Other Total Portfolio Industrial Office Other Total Portfolio Industrial Office Other Total Portfolio Revenue $ 14,594 $ 39,189 $ 13,190 $ 66,973 $ 15,945 $ 45,643 $ 14,305 $ 75,893 $ 15,095 $ 72,128 $ 14,107 $ 101,330 Operating Property Expense (842) (3,394) (2,874) (7,110) (1,083) (5,071) (3,203) (9,357) (638) (10,301) (2,777) (13,716) Property Tax Expense (1,059) (2,706) (2,057) (5,822) (1,235) (2,940) (1,890) (6,065) (1,005) (6,906) (1,826) (9,737) Property Management Fees (63) (237) (222) (522) (63) (312) (214) (589) (63) (547) (213) (823) TOTAL NOI 12,630 32,852 8,037 53,519 13,564 37,320 8,998 59,882 13,389 54,374 9,291 77,054 NON-CASH ADJUSTMENTS: Straight Line Rent (117) (4,457) 315 (4,259) (135) (4,784) 264 (4,655) (456) (2,239) (68) (2,763) In-Place Lease Amortization (95) 99 (126) (122) (93) (702) (128) (923) (87) (220) (129) (436) Deferred Termination Income (24) — — (24) (36) — (508) (544) — — (758) (758) Deferred Ground/Office Lease — 433 — 433 — 433 — 433 — 490 — 490 Other Intangible Amortization — 368 — 368 — 377 — 377 — 377 — 377 Inducement Amortization — 101 — 101 — 79 — 79 — — — — TOTAL CASH NOI $ 12,394 $ 29,396 $ 8,226 $ 50,016 $ 13,300 $ 32,723 $ 8,626 $ 54,649 $ 12,846 $ 52,782 $ 8,336 $ 73,964
63 Notes & Definitions Normalized EBITDAre “Normalized EBITDAre” is a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. Normalized EBITDAre, as defined by the Company, represents EBITDAre(as defined by NAREIT), modified to exclude items such as acquisition-related expenses, employee separation expenses and other items that we believe are not indicative of the performance of our portfolio. Normalized EBITDAre also excludes the Normalized EBITDAre impact of properties sold during the period and extrapolate the operations of acquired properties to estimate a full quarter of ownership (in each case, as if such disposition or acquisition had occurred on the first day of the quarter). We may also exclude the annualizing of other large transaction items such as termination income recognized during the quarter. Management believes these adjustments to reconcile to Normalized EBITDAre provides investors with supplemental performance information that is consistent with the performance models and analysis used by management and provides investors a view of the performance of our portfolio over time. However, because Normalized EBITDAre is calculated before recurring cash charges, including interest expense and income taxes, and is not adjusted for capital expenditures or other recurring cash requirements of our business, its utility as a measure of our liquidity is limited. Therefore, Normalized EBITDAre should not be considered as an alternative to net income, as computed in accordance with GAAP. Normalized EBITDAre may not be comparable to similarly titled measures of other companies. Normalized EBITDAre (Consolidated) "Normalized EBITDAre (Consolidated)" represents Normalized EBITDAre adjusted to exclude items related to any unconsolidated entities. We calculated Normalized EBITDAre (Consolidated) as follows: Management believes these adjustments to reconcile to Normalized EBITDAre (Consolidated) provides investors a view of the performance of our consolidated portfolio over time. However, because Normalized EBITDAre (Consolidated) is calculated before recurring cash charges, including interest expense and income taxes, and is not adjusted for capital expenditures or other recurring cash requirements of our business, its utility as a measure of our liquidity is limited. Therefore, Normalized EBITDAre (Consolidated) should not be considered as an alternative to net income, as computed in accordance with GAAP. Normalized EBITDAre(Consolidated) may not be comparable to similarly titled measures of other companies. For the Quarter Ended (Unaudited, USD in thousands) 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Normalized EBITDAre $ 56,898 $ 58,383 $ 57,924 $ 64,350 $ 86,861 Adjustment for unconsolidated joint venture (15,251) (15,452) (12,791) — — Normalized EBITDAre (Consolidated) $ 41,647 $ 42,931 $ 45,133 $ 64,350 $ 86,861
64 Notes & Definitions (continued) Operating Margin "Operating Margin" is NOI/Revenue. Per Share "Per Share" data represents basic and diluted shares and reflects the impact of the Company's one-for-nine reverse share split. Pro Rata "Pro rata" represents the Company's share of the unconsolidated joint venture. Same Store "Same store" portfolio means properties which were held for a full period compared to the same period in the prior year. Unencumbered Assets "Unencumbered Assets" are properties not secured by a mortgage debt or included in the Revolver's borrowing base calculation. WALT “WALT” is weighted average lease term (in years). This is the average remaining lease term for all leases combined, weighted based on Annualized Base Rent.