Portfolio Overview - As of September 30, 2025, the company's portfolio comprised 86 properties, with 70 in the Industrial segment and 16 in the Office segment, which were classified as held for sale and reported within discontinued operations[9] - The Industrial segment's occupancy rate was 100.0% based on rentable square feet and 99.6% based on usable acres, with a weighted average lease term (WALT) of 4.7 years and annualized base rent (ABR) of $74.632 million, representing 50.9% of the total ABR[10] - The Office segment had an occupancy rate of 97.9%, a WALT of 4.6 years, and an ABR of $72.003 million, accounting for 49.1% of the total ABR[10] - In 2025, the company acquired industrial outdoor storage (IOS) assets totaling 38.7 usable acres for a contractual purchase price of $57.718 million[12] - Dispositions from continuing operations in the quarter ended September 30, 2025, included 3 industrial segment properties with 761,500 square feet, resulting in gross sales price of $71.584 million and a gain of $6.641 million[12] - Dispositions from discontinued operations in the quarter ended September 30, 2025, included 8 office segment properties with 1,224,800 square feet, resulting in gross sales price of $247.450 million and a gain of $24.767 million[13] Financial Performance - For the quarter ended September 30, 2025, the company reported a net loss attributable to common shareholders from continuing operations of $0.18 per share and net income attributable to common shareholders from discontinued operations of $0.27 per share[19] - FFO per share/unit was $0.46, Core FFO per share/unit was $0.48, and AFFO per share/unit was $0.47[19] - Adjusted EBITDAre for the quarter ended September 30, 2025, was $33.397 million[19] - Total Industrial segment revenue for the quarter ended September 30, 2025, was $25.800 million, with $11.484 million from IOS and $14.316 million from Traditional Industrial[22] - Total Industrial segment NOI for the quarter ended September 30, 2025, was $22.520 million, with $10.245 million from IOS and $12.275 million from Traditional Industrial[23]

Business Strategy - The company is accelerating its shift to an Industrial REIT, focusing on Industrial Outdoor Storage (IOS) and traditional industrial assets, with the intention to scale IOS and exit the office sector[12] - The company is committed to selling all remaining office properties, having already completed approximately $2.2 billion in office dispositions since 2022, with an expected acceleration in the pace of sales[13] Portfolio Performance and Acquisitions - The company increased IOS Annualized Base Rent (ABR) by over 25% since the beginning of the year[16] - The company acquired two IOS assets for approximately $52 million, encompassing approximately 36.2 usable acres and generating $3.2 million in ABR, with an estimated 13% mark-to-market opportunity[5] - The company completed $158 million in sales during the quarter and an additional $24 million subsequent to quarter-end, bringing the year-to-date sales total to $216 million[5] Financial Position - The company is targeting a Net Debt / EBITDAre ratio at or below 6.0x and is using interest rate swaps to manage floating-rate exposure[13] - The company's Net Debt / Adjusted EBITDAre was 7.0x in Q1 2025, 6.4x in Q2 2025, and a pro forma 6.6x for Q2 2025[5] - The remaining office net book value is $615 million, representing approximately 35% of the real estate net book value[5] Industrial Portfolio Composition - The industrial portfolio consists of 53 IOS properties and 19 traditional industrial assets[48] - The industrial portfolio is approximately 100% leased, with a weighted average lease term (WALT) of 5.1 years and in-place ABR of $78.7 million[43] - The industrial portfolio has embedded growth potential, driven by an estimated 38% mark-to-market opportunity and contractual rent escalations averaging 2.5%[43]