Jim Kammert

Jim Kammert asked for visibility into the 2026 and 2027 lease expirations, specifically what percentage is actively being discussed with tenants versus those left until the last moment. He also inquired about any organic tilting towards industrial or retail across those two years.

Answer

Head of Asset Management Brooks Gordon confirmed that virtually all 2026 and 2027 expiring ABR is actively being worked on, as the company engages with tenants three to five years out. He noted that both years have a similar property type breakdown, with approximately 60% warehouse and industrial. Mr. Gordon highlighted opportunities in 2026 to re-lease high-quality warehouses in the Lehigh Valley at significantly higher rents, while other leases may have renewal options at continuing rents.

Jim Kammert asked for clarification on the accounting mechanics and calculation of the $1.1 billion non-cash charge related to the new compensation plan.

Answer

Co-President and CFO Tim McHugh explained that the $1.1 billion charge is an upfront expense piece of the plan, as detailed in the 10-Q, with an additional $200 million to be amortized over the subsequent 10 years of the plan.