Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations

In this Quarterly Report on Form 10-Q, references to "we," "us," "our," "the Company," or "STORE Capital," are references to STORE Capital LLC, a Delaware limited liability company, as defined below, unless we specifically state otherwise or the context indicates otherwise.

Special Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of 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"). Such forward-looking statements include, without limitation, statements concerning our business and growth strategies, investment, financing and leasing activities and trends in our business, including trends in the market for long-term, triple-net leases of freestanding, single-tenant properties. Words such as "expects," "anticipates," "intends," "plans," "likely," "will," "believes," "seeks," "estimates," and variations of such words and similar expressions are intended to identify such forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from the results of operations or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such statements included in this Quarterly Report on Form 10-Q may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved. For a further discussion of these and other factors that could impact future results, performance or transactions, see "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission on March 6, 2026.

Forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this Quarterly Report on Form 10-Q. New risks and uncertainties may arise over time and it is not possible for us to predict those events or how they may affect us. We expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in our expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required by law.

Overview

We invest in Single Tenant Operational Real Estate, or STORE Property, which is our target market and the inspiration for our name. A STORE Property is a property location at which a company operates its business and generates sales and profits, which makes the location a profit center and, therefore, fundamentally important to that business. Due to the long-term nature of our leases, we focus our acquisition activity on properties that operate in industries we believe have long-term relevance, the majority of which are service industries. By acquiring the real estate from the operators and then leasing the real estate back to them, the operators become our long-term tenants, and we refer to them as our customers. Through the execution of these sale-leaseback transactions, we fill a need for our customers by providing them a source of long-term capital that enables them to avoid the need to incur debt and/or employ equity in order to finance the real estate that is essential to their business.

All the real estate we acquire is held by our wholly or majority owned subsidiaries, many of which are special purpose bankruptcy remote entities formed to facilitate the financing of our real estate. We predominantly acquire our single-tenant properties directly from our customers in sale-leaseback transactions where our customers sell us their operating properties and then simultaneously enter into long-term triple-net leases with us to lease the properties back. Accordingly, our properties are fully occupied and under lease from the moment we acquire them.

We generate our cash from operations primarily through the monthly lease payments, or "base rent," we receive from our customers under their long-term leases with us. We also receive interest payments on loans and financing receivables, which are a smaller part of our portfolio. We refer to the monthly scheduled lease and interest payments due from our customers as "base rent and interest." Most of our leases contain lease escalations every year or every several years that are based on the increase in the Consumer Price Index or a stated percentage, which allows the monthly lease payments we receive to increase over the life of the lease contracts. As of June 30, 2026, approximately 99% of our leases (based on base rent and interest) were "triple-net" leases, which means that our customers are responsible for all the operating costs such as maintenance, insurance and property taxes associated with the properties they lease from us, including any increases in those costs that may occur as a result of inflation. The remaining leases have some landlord responsibilities, generally related to maintenance and structural component replacement that may be required on such properties in the future, although we do not currently anticipate incurring significant capital expenditures or property-level operating costs under such leases. Because our properties are single tenant properties, almost all of which are under long-term leases, it is not necessary for us to perform any significant ongoing leasing activities on our properties.

We have a dedicated internal team that reviews and analyzes ongoing customer financial performance, both at the corporate level and with respect to each property we own, to identify properties that may no longer be part of our long-term strategic plan and as such, we may from time to time decide to sell properties.

Liquidity and Capital Resources

As of June 30, 2026, our investment portfolio stood at approximately $17.6 billion, consisting of investments in 3,590 property locations. Substantially all of our cash from operations is generated by our investment portfolio.

Our primary cash expenditures are the principal and interest payments we make on the debt we use to finance our real estate investment portfolio and the general and administrative expenses of managing the portfolio and operating our business. Since substantially all our leases are triple net, our tenants are generally responsible for the maintenance, insurance and property taxes associated with the properties they lease from us. When a property becomes vacant through a tenant default or expiration of the lease term with no tenant renewal, we incur the property costs not paid by the tenant, as well as those property costs accruing during the time it takes to locate a substitute tenant or sell the property. We expect to incur some property-level operating costs from time to time in periods during which properties that become vacant are being remarketed. In addition, we may recognize an expense for certain property costs, such as real estate taxes billed in arrears, if we believe the tenant is likely to vacate the property before making payment on those obligations or may be unable to pay such costs in a timely manner. Property costs are generally not significant to our operations, but the amount of property costs can vary quarter to quarter based on the timing of property vacancies and the level of underperforming properties. We may advance certain property costs on behalf of our tenants but expect that the majority of these costs will be reimbursed by the tenant and do not anticipate that they will be significant to our operations.

We intend to continue to grow through additional real estate investments. To accomplish this objective, we must continue to identify real estate acquisitions that are consistent with our underwriting guidelines and raise future additional capital to make such acquisitions. We acquire real estate with a combination of debt and equity capital, proceeds from the sale of properties and cash from operations that is not otherwise distributed to our members in the form of distributions. We also periodically commit to fund the construction of new properties for our customers or to provide them funds to improve and/or renovate properties we lease to them. These additional investments will generally result in increases to the rental revenue or interest income due under the related contracts.

Financing Strategy

Our debt capital is initially provided on a short-term, temporary basis through a multi-year, variable-rate unsecured revolving credit facility with a group of banks. We manage our long-term leverage position through the strategic and economic issuance of long-term fixed-rate debt on both a secured and unsecured basis. By matching the expected cash inflows from our long-term real estate leases with the expected cash outflows of our long-term fixed-rate debt, we "lock in", for as long as is economically feasible, the expected positive difference between our scheduled cash inflows on the leases and the cash outflows on our debt payments. By locking in this difference, or spread, we seek to reduce the risk that increases in interest rates would adversely impact our profitability. In addition, we use various financial instruments designed to mitigate the impact of interest rate fluctuations on our cash flows and earnings, including hedging strategies such as interest rate swaps and caps, depending on our analysis of the interest rate environment and the costs and risks of such strategies. We also ladder our debt maturities in order to minimize the gap between our free cash flow (which we define as our cash from operations less distributions) and our annual debt maturities.

Unsecured Revolving Credit Facility

We have an unsecured credit agreement with a group of lenders which provides for an unsecured revolving credit facility. The facility has a borrowing capacity of $1.25 billion, matures in September 2029 and includes two six-month extension options, subject to certain conditions and the payment of a 0.075% extension fee. As of June 30, 2026, we had $525.6 million outstanding under our unsecured revolving credit facility.

Borrowings under the facility require monthly payments of interest at a rate selected by us of either (1) Daily Simple SOFR plus a spread ranging from 0.70% to 1.40%, or (2) the Base Rate, as defined in the credit agreement, plus a spread ranging from 0.00% to 0.40%. The spread used is based on our credit rating as defined in the credit agreement. We are also required to pay a facility fee on the total commitment amount ranging from 0.10% to 0.30% based on our credit rating. As of June 30, 2026, the applicable spread for SOFR-based borrowings is 0.85% and the facility fee is 0.20%. As of June 30, 2026, we had five interest rate swap agreements with an aggregate notional value of $373.6 million that effectively convert a portion of the outstanding borrowings on the facility to an all-in fixed rate of 4.7360%.

Under the terms of the facility, we are subject to various restrictive financial and nonfinancial covenants which, among other things, require us to maintain certain leverage ratios, cash flow and debt service coverage ratios and secured borrowing ratios. Certain

of these ratios are based on our pool of unencumbered assets, which aggregated approximately $11.9 billion at June 30, 2026. The facility is recourse to us, and, as of June 30, 2026, we were in compliance with the financial and nonfinancial covenants under the facility.

Senior Unsecured Term Debt

In February 2026, we completed an issuance of five-year senior notes with an aggregate principal amount of $450.0 million and a coupon rate of 4.95%. In April 2026, we filed a registration statement with the SEC to offer to exchange these notes for a new issue of public notes registered under the Securities Act of 1933, as amended (the "Securities Act"). The exchange offer expired May 27, 2026 and the tendered 4.95% senior unsecured notes were exchanged for new registered notes with substantially identical terms.

As of June 30, 2026, we had an aggregate principal amount of $2.2 billion of public senior unsecured notes outstanding. These senior unsecured notes bear a weighted average coupon rate of 4.17% and interest on these notes is paid semi-annually. The supplemental indentures governing our senior unsecured notes contain various restrictive covenants, including limitations on our ability to incur additional secured and unsecured indebtedness. As of June 30, 2026, we were in compliance with these covenants.

Prior to the inaugural issuance of public debt in March 2018, unsecured long-term debt had been issued through the private placement of notes to institutional investors. The remaining privately placed notes were repaid at maturity in April 2026, and as of June 30, 2026, no such privately placed notes remained outstanding. The financial covenants of the privately placed notes were similar to our current unsecured revolving credit facility. We were in compliance with these covenants through the final repayment of the privately placed notes in April 2026.

We have a credit agreement with a group of lenders which provides for two senior unsecured, variable-rate term loans (collectively the "Unsecured Term Loans"). As of June 30, 2026, the Tranche A-1 Term Loan ("Tranche A-1 Term Loan") had a balance of $1.0 billion and matures in September 2030. The Tranche A-2 Term Loan ("Tranche A-2 Term Loan") had a balance of $650.0 million and matures in September 2028 and includes two six-month extension options, subject to certain conditions and the payment of a 0.075% extension fee.

The interest rate on each of the Unsecured Term Loans resets at Daily Simple SOFR plus a credit rating-based spread ranging from 0.75% to 1.60%. At June 30, 2026, our spread was 0.95%. As of June 30, 2026, we had ten interest rate swap agreements, with an aggregate notional value of $1.0 billion, which effectively convert the Tranche A-1 Term Loan borrowings to an all-in fixed rate of 4.0263% and six interest rate swap agreements, with an aggregate notional value of $650.0 million, which effectively convert the Tranche A-2 Term Loan borrowings to an all-in fixed rate of 4.8878%.

The aggregate outstanding principal amount of our senior unsecured notes and term loans payable was $3.9 billion as of June 30, 2026.

Non-recourse Secured Debt

As of June 30, 2026, approximately 31% of our real estate investment portfolio served as collateral for outstanding borrowings under our STORE Master Funding debt program. We believe our STORE Master Funding program allows for flexibility not commonly found in non-recourse debt, often making it preferable to traditional debt issued in the commercial mortgage-backed securities market. Under the program, STORE Capital serves as both master and special servicer for the collateral pool, allowing for active portfolio monitoring and prompt issue resolution. In addition, features of the program allowing for the sale or substitution of collateral, provided certain criteria are met, facilitate active portfolio management. Through this debt program, we arrange for bankruptcy remote, special purpose entity subsidiaries to issue multiple series of investment-grade asset backed net lease mortgage notes, or ABS notes, from time to time as additional collateral is added to the collateral pool and leverage can be added in incremental note issuances based on the value of the collateral pool.

The ABS notes are generally issued by our wholly owned special purpose entity subsidiaries to institutional investors through the asset backed securities market. These ABS notes are typically issued in two classes, Class A and Class B. At the time of issuance, the Class A notes generally represent approximately 70% of the appraised value of the underlying real estate collateral owned by the issuing subsidiaries and are currently rated AAA or AA by S&P Global Ratings.

In May 2026, our consolidated special purpose entities issued Series 2026-1 of net-lease mortgage notes under the STORE Master Funding debt program consisting of an aggregate $567.0 million notes issued in four Class A tranches as summarized below:

The aggregate outstanding principal amount of our secured mortgage notes payable was $3.3 billion as of June 30, 2026.

Debt Summary

As of June 30, 2026, our aggregate secured and unsecured term debt had an outstanding principal balance of $7.2 billion, a weighted average maturity of 4.2 years and a weighted average interest rate of 4.4%. The following is a summary of the outstanding balance of our borrowings as well as a summary of the portion of our real estate investment portfolio that is either pledged as collateral for these borrowings or is unencumbered as of June 30, 2026:

Our decision to use either senior unsecured term debt, STORE Master Funding or other non-recourse traditional mortgage loan borrowings depends on our view of the most strategic blend of unsecured versus secured debt that is needed to maintain our targeted level of overall corporate leverage, as well as on borrowing costs, debt terms, debt flexibility and the tenant and industry diversification levels of our real estate assets. Our acquisition of real estate assets will increase our financial flexibility by providing us with additional assets that can support senior unsecured financing or that can serve as substitute collateral for existing debt. Should market factors, which are beyond our control, adversely impact our access to these debt sources at economically feasible rates, our ability to grow through additional real estate acquisitions will be limited to any undistributed amounts available from our operations and equity contributions from our members.

For additional details and terms regarding these debt instruments, see Note 4 to the June 30, 2026 unaudited condensed consolidated financial statements.

Equity

In connection with the Merger, we issued 1,000 common units to our common members for an aggregate cash amount of $8.3 billion. Prior to the Merger, 125 Series A Preferred Units were issued to our preferred members for an aggregate cash amount of $125,000. Additionally, during the three months ended March 31, 2025, one of our wholly-owned subsidiaries issued 125 Series B Preferred Units for an aggregate cash amount of $125,000. In accordance with our operating agreement, our common members receive distributions monthly and are subject to capital calls. Our preferred members receive distributions bi-annually and are not subject to capital calls.

Cash Flows

Substantially all our cash from operations is generated by our investment portfolio. As shown in the following table, net cash provided by operating activities for the six months ended June 30, 2026 was $31.9 million more than the six months ended June 30,

2025. The increase is primarily driven by additional rental revenue and interest income generated by the increase in size of our real estate portfolio. During the six months ended June 30, 2026 and 2025, our investments in real estate, loans and financing receivables were funded with a combination of cash on hand, net proceeds from asset dispositions, net proceeds from the issuance of long-term debt and capital contributions from our members.

From a financing perspective, net cash provided by our activities was $131.0 million higher during the six months ended June 30, 2026 as compared to the same period in 2025 primarily as a result of capital contributions from our members. Financing activities during the six months ended June 30, 2026 included $450.0 million of additional senior unsecured note borrowings, $567.0 million of STORE Master Funding Series 2026-1 notes issued, the repayment of an aggregate of $520.3 million of STORE Master Funding Series 2023-1 notes and $58.0 million net reduction in borrowings on the unsecured revolving credit facility. Capital contributions from our members totaled $115.0 million and cash distributions to our members totaled $414.8 million for the six months ended June 30, 2026.

As of June 30, 2026, we had liquidity of $43.3 million on our balance sheet. Management believes that our current cash balance, the $724.4 million of immediate borrowing capacity available as of June 30, 2026 on our unsecured revolving credit facility and the cash generated by our operations is sufficient to fund our operations for the next twelve months and beyond and allow us to acquire the real estate for which we currently have made commitments. In order to continue growing our real estate portfolio in the future, beyond the excess cash generated by our operations and our ability to borrow, we would expect to raise additional equity capital from our members.

Recently Issued Accounting Pronouncements

See Note 2 to the June 30, 2026 unaudited condensed consolidated financial statements.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires our management to use judgment in the application of accounting policies, including making estimates and assumptions. We base estimates on the best information available to us at the time, our experience and on various other assumptions believed to be reasonable under the circumstances. These estimates affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. If our judgment or interpretation of the facts and circumstances relating to various transactions or other matters had been different, it is possible that different accounting would have been applied, resulting in a different presentation of our condensed consolidated financial statements. From time to time, we reevaluate our estimates and assumptions. In the event estimates or assumptions prove to be different from actual results, adjustments are made in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. A summary of our critical accounting policies is included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations." There have been no material changes to the Company's critical accounting estimates since our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Real Estate Portfolio Information

As of June 30, 2026, our total investment in real estate and loans approximated $17.6 billion, representing investments in 3,590 property locations, substantially all of which are profit centers for our customers. The weighted average non-cancellable remaining term of our leases was approximately 14.8 years.

Results of Operations

Overview

As of June 30, 2026, our real estate investment portfolio had grown to approximately $17.6 billion, consisting of investments in 3,590 property locations in 49 states, operated by 683 customers in various industries. Approximately 80% of the real estate investment portfolio represents commercial real estate properties subject to long-term leases, approximately 20% represents mortgage loans and financing receivables on commercial real estate properties and a nominal amount represents loans receivable secured by our customers' other assets.

Three and Six Months Ended June 30, 2026 Compared to Three and Six Months Ended June 30, 2025:

Revenues

The increase in revenues period over period was driven primarily by the growth in the size of our real estate investment portfolio, which generated additional rental revenues and interest income. Our real estate investment portfolio grew from approximately $16.2 billion in gross investment amount representing 3,404 properties at June 30, 2025 to approximately $17.6 billion in gross investment amount representing 3,590 properties at June 30, 2026. Our real estate investments were made throughout the periods presented and were not all outstanding for the entire period; accordingly, a portion of the increase in revenues between periods is related to recognizing revenue for the full periods in 2026 on acquisitions that were made during 2025. Similarly, the full revenue impact of acquisitions made during the first half of 2026 will not be seen until the second half of 2026. A smaller component of the increase in revenues between periods is related to rent escalations recognized on our lease contracts; over time, these rent increases can provide a strong source of revenue growth.

The majority of our investments are made through sale-leaseback transactions in which we acquire the real estate from the owner-operators and then simultaneously lease the real estate back to them through long-term leases based on the tenant's business needs. The initial rental or capitalization rates we achieve on sale-leaseback transactions, calculated as the initial annualized base rent divided by the purchase price of the properties, vary from transaction to transaction based on many factors, such as the terms of the lease, the property type including the property's real estate fundamentals and the market rents in the area on the various types of properties we target across the United States. There are also online commercial real estate auction marketplaces for real estate transactions; properties acquired through these online marketplaces are often subject to existing leases and offered by third party sellers. In general, because we provide tailored customer lease solutions in sale-leaseback transactions, our lease rates historically have been higher and subject to less short-term market influences than what we have seen in the auction marketplace as a whole. In addition, since our real estate lease contracts are a substitute for both borrowings and equity that our customers would otherwise have to commit to their real estate locations, we believe there is a relationship between lease rates and market interest rates and that lease rates are also influenced by overall capital availability.

Interest Expense

We fund the growth in our real estate investment portfolio primarily with members' contributions, net proceeds from sales of real estate and net proceeds from issuances of debt.

The following table summarizes our interest expense for the periods presented:

Interest expense associated with our secured and unsecured debt increased compared to the periods ended June 30, 2025 as a result of an increase in outstanding borrowings of secured and unsecured debt. Long-term debt added after June 30, 2025 consisted of $625.0 million of STORE Master Funding Series 2025-1 notes issued in September 2025 at a weighted average coupon rate of 5.06%, $450.0 million of senior unsecured notes issued in February 2026 with a coupon rate of 4.95% and $567.0 million of STORE Master Funding Series 2026-1 notes issued in May 2026 at a weighted average coupon rate of 5.28%. In connection with the Series 2026-1 note issuance, we prepaid STORE Master Funding Series 2023-1 notes aggregating $520.3 million; these notes were scheduled to mature in 2028 and bore a weighted average interest rate of 6.44%. Other secured and unsecured debt repaid in full since June 30, 2025 included $82.0 million of unsecured privately placed notes repaid in April 2026 at maturity. As of June 30, 2026, we had $7.2 billion of secured and unsecured debt outstanding with a weighted average interest rate of 4.4%.

Property Costs

Approximately 99% of our leases are triple net, meaning that our tenants are generally responsible for the property-level operating costs such as taxes, insurance and maintenance. Accordingly, we generally do not expect to incur property-level operating costs or capital expenditures, except during any period when one or more of our properties is no longer under lease or when our tenant is unable to meet their lease obligations. Our need to expend capital on our properties is further reduced due to the fact that some of our tenants will periodically refresh the property at their own expense to meet their business needs or in connection with franchisor requirements. As of June 30, 2026, we owned 22 properties that were vacant and not subject to a lease and the lease contracts related to just 44 properties we own are due to expire during the remainder of 2026. We expect to incur some property costs related to the vacant properties until such time as those properties are either leased or sold. The amount of property costs can vary quarter to quarter based on the timing of property vacancies and the level of underperforming properties.

As of June 30, 2026, we had entered into operating ground leases as part of several real estate investment transactions. The ground lease payments made by our tenants directly to the ground lessors are presented on a gross basis in the condensed consolidated statements of operations, both as rental revenues and as property costs. For the few lease contracts where we collect property taxes from our tenants and remit those taxes to governmental authorities, we reflect those payments on a gross basis as both rental revenue and as property costs.

The following is a summary of property costs (in thousands):

General and Administrative Expenses

General and administrative expenses include compensation and benefits; professional fees such as portfolio servicing, legal, accounting and rating agency fees; and general office expenses such as insurance, office rent and travel costs. General and administrative costs totaled $18.2 million and $38.4 million for the three and six months ended June 30, 2026, respectively, as compared to $17.0 million and $34.5 million for the three and six months ended June 30, 2025, respectively.

Generally, we expect that general and administrative expenses will rise in some measure as our real estate investment portfolio grows. Certain expenses, such as property related insurance costs and the costs of servicing the properties and loans comprising our real estate portfolio, increase in direct proportion to the increase in the size of the portfolio. However, general and administrative expenses as a percentage of the portfolio have historically decreased over time due to efficiencies and economies of scale.

Depreciation and Amortization Expense

Depreciation and amortization expense decreased from $148.1 million and $296.2 million for the three and six months ended June 30, 2025, respectively, to $144.3 million and $289.0 million for the three and six months ended June 30, 2026, respectively, as a result of real estate dispositions and real estate assets reclassified to loans and financing receivables as a result of certain lease modifications, partially offset by increases due to acquisitions of and additions to real estate.

Provisions for Impairment

During the three and six months ended June 30, 2026, we recognized $4.6 million and $13.0 million, respectively, in provisions for the impairment of real estate and $2.4 million and $2.7 million, respectively, in provisions for credit losses related to our loans and financing receivables. During the three and six months ended June 30, 2025, we recognized $6.3 million and $12.7 million, respectively, in provisions for the impairment of real estate and $0.8 million and $1.8 million, respectively, in provisions for credit losses related to our loans and financing receivables.

Net Gain (Loss) on Dispositions of Real Estate

As part of our ongoing active portfolio management process, we sell properties from time to time in order to enhance the diversity and quality of our real estate portfolio and to take advantage of opportunities to recycle capital. During the three months ended June 30, 2026, we recognized an $2.3 million aggregate net gain on the sale of 23 properties. In comparison, during the three months ended June 30, 2025, we recognized a $0.8 million aggregate net gain on the sale of 27 properties. For the six months ended June 30, 2026, we recognized a $13.6 million net gain on the sale of 62 properties compared to $3.4 million net gain on the sale of 45 properties for the six months ended June 30, 2025.

Additionally, during the three and six months ended June 30, 2026, we recognized a net $26.4 million and $25.0 million non-cash gain, respectively, associated primarily with certain acquisitions whereby the lease term on existing properties was extended and other lease modifications. During the three and six months ended June 30, 2025, we also recognized a net $5.4 million non-cash loss associated with certain lease modifications.

Net Income

For the three and six months ended June 30, 2026, our net income was $101.7 million and $174.1 million, respectively, as compared to net income of $27.7 million and $80.4 million during the three and six months ended June 30, 2025, respectively. The increase in net income for the three months ended June 30, 2026 as compared to 2025 primarily resulted from the growth in our real estate investment portfolio, which generated additional rental revenues and interest income and an increase in the net gain on dispositions of real estate, partially offset by an increase in interest expense. The increase in net income for the six months ended June 30, 2026 as compared to 2025 primarily resulted from the growth in our real estate investment portfolio, which generated additional rental revenues and interest income, an increase in the net gain on dispositions of real estate and a decrease in depreciation and amortization, partially offset by increases in interest and income tax expense, property costs and general and administrative expense.