Women

INLAND REAL ESTATE INCOME TRUST, INC. Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations (kind 10-Q)

Certain statements on this Quarterly Report on Kind 10-Q symbolize
“forward-looking statements” contained in the which suggests of Half 27A of the Securities
Act of 1933, as amended (the “Securities Act”), and Half 21E of the
Securities Alternate Act of 1934, as amended (the “Exchange Act”). Phrases much like
“may,” “could,” “should,” “expect,” “intend,” “plan,” “goal,” “seek,”
“anticipate,” “believe,” “estimate,” “predict,” “variables,” “potential,”
“continue,” “expand,” “maintain,” “create,” “strategies,” “likely,” “will,”
“would” and variations of these phrases and comparable expressions, or the opposed
of these phrases or comparable expressions, are supposed to find out forward-looking
statements.

These forward-looking statements often usually are not historic data nevertheless replicate the
intent, notion or current expectations of the administration of Inland Precise Property
Income Perception, Inc. (which we check with herein as a result of the “Company,” “we,” “our” or
“us”) based mostly totally on their knowledge and understanding of the enterprise and commerce,
the financial system and completely different future circumstances. These statements often usually are not ensures of
future effectivity, and we warning stockholders to not place undue reliance on
forward-looking statements. Exact outcomes might differ materially from these
expressed or forecasted inside the forward-looking statements due to various
risks, uncertainties and completely different parts, along with nevertheless not restricted to the weather
listed and described beneath “Risk Factors” on this Quarterly Report on Kind 10-Q,
our Quarterly Report on Kind 10-Q for the quarter ended March 31, 2022, as filed
with the Securities and Alternate Price on May 11, 2022 and in our Annual
Report on Kind 10-Okay for the yr ended December 31, 2021, as filed with the
Securities and Alternate Price on March 16, 2022, just a few of which are
summarized below:

• We’re matter to risks associated to a pandemic, epidemic or outbreak

of a contagious sickness, much like the continued worldwide COVID-19 pandemic,

along with opposed impacts on our tenants and their respective corporations,

and we agreed in 2020 and 2021 to defer a giant amount of rent owed

to us, which tenants have been obligated to pay over time together with their

frequent rent. If there’s a resurgence of COVID-19, we might agree as soon as extra to

defer rent owed to us, and our tenants won’t be able or eager to pay
the deferred portions on excessive of their frequent rent, considerably if their

outcomes of operations or future prospects have been materially adversely

affected by the COVID-19 pandemic or develop into so affected;

• Market disruptions ensuing from the monetary outcomes of the COVID-19

pandemic have adversely impacted many aspects of our working outcomes and

financial scenario, and ongoing or future disruptions from the pandemic,

the warfare in Ukraine, will enhance in charges of curiosity and supply chain shortage

or in another case might as soon as extra adversely impression our outcomes and financial

scenario, along with our ability to service our debt obligations, borrow

additional monies or pay distributions;

• Now we’ve got incurred net losses on a U.S. often accepted accounting

guidelines (“U.S. GAAP”) basis for the three and 6 months ended June 30,

2022 and 2021 and for the yr ended December 31, 2021;

• There isn’t any established public shopping for and promoting market for our shares, our

stockholders can’t at current promote their shares beneath our share repurchase

program (as amended, “SRP”), which was suspended in the midst of the COVID-19

pandemic and may be suspended as soon as extra, amended or terminated in our sole
discretion, and even when repurchases are made pursuant to the SRP, the

SRP is matter to limits, and stockholders couldn’t have the power to advertise all of

the shares they want to promote;

• Even when our stockholders are able to promote their shares beneath the SRP, or

in another case, they might not have the power to recuperate the amount of their funding

in our shares;

• There isn’t any assurance our board of directors will pursue a listing or

completely different liquidity event at any time in the end, considerably in delicate of

the COVID-19 pandemic;

• Inland Precise Property Funding Firm (our “Sponsor”) might face a

battle of curiosity in allocating personnel and sources between its

associates, our Enterprise Supervisor (as outlined below) and Inland Enterprise

Precise Property Firms LLC, referred to herein as our “Real Estate Manager”;

• We don’t have arm’s-length agreements with our Enterprise Supervisor, our Precise

Property Supervisor or another associates of our Sponsor;

• We pay expenses, which will be necessary, to our Enterprise Supervisor, Precise

Property Supervisor and completely different associates of our Sponsor;

• Our Enterprise Supervisor and its associates face conflicts of curiosity triggered

by, amongst completely different points, their compensation preparations with us, which

could finish in actions that aren’t inside the long-term most interesting pursuits of

our stockholders;

• Our properties might compete with the properties owned by completely different purposes

sponsored by our Sponsor or Inland Personal Capital Firm or completely different
associates for, amongst completely different points, tenants;

• Our Enterprise Supervisor is beneath no obligation, and won’t agree, to forgo

or defer its enterprise administration cost;

• If we fail to proceed to qualify as a REIT, our operations and

distributions to stockholders, if any, will probably be adversely affected; and

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• The Agency’s strategic plan might proceed to evolve or change over time,

and there’s no assurance we are going to effectively get hold of our

board’s targets beneath the strategic plan, along with making strategic

product sales or purchases of properties, redeveloping properties or itemizing our

frequent stock, contained in the timeframe we depend on or would favor or the least bit;

• We might pursue redevelopment actions, which are matter to varied

risks, along with, nevertheless not restricted to: expending sources to search out out the

feasibility of the enterprise or duties which will be then not pursued or

completed; growth delays or value overruns; failure to fulfill

anticipated occupancy or rent ranges contained in the projected timeframe, if

the least bit; publicity to fluctuations inside the frequent financial system due to the
necessary time lag between commencing and ending the enterprise; and
lowered rental earnings in the midst of the time-frame we’re redeveloping an
asset or property;

• Utilizing the online by customers to purchase is predicted to proceed to

enhance, and this development has seemingly been accelerated by the outcomes of

the COVID-19 pandemic, which can finish in an extra downturn inside the

enterprise of our current tenants of their “brick and mortar” areas and

could affect their ability to pay rent and their demand for home at our

retail properties; and

• We’re matter to risks associated to any dislocations or liquidity

disruptions that may exist or occur in credit score rating markets of the USA
occasionally, along with disruptions and dislocations attributable to the
ongoing COVID-19 pandemic.

Forward-looking statements on this Quarterly Report on Kind 10-Q replicate our
administration’s view solely as of the date of this Quarterly Report, and can
lastly present to be incorrect or false. We undertake no obligation to exchange
or revise forward-looking statements to copy modified assumptions, the
incidence of unanticipated events or modifications to future working outcomes moreover
as required by related regulation. We intend for these forward-looking statements to
be coated by the related protected harbor provisions created by Half 27A of
the Securities Act and Half 21E of the Alternate Act.

The subsequent dialogue and analysis pertains to the three and 6 months ended
June 30, 2022 and 2021 and as of June 30, 2022 and December 31, 2021. It’s best to
be taught the subsequent dialogue and analysis along with our consolidated financial
statements and the related notes included on this report.

We routinely submit very important particulars about us and our enterprise, along with
financial and completely different knowledge for merchants, on our website online. We encourage
merchants to go to our website online at inland-investments.com/inland-income-trust
occasionally, as knowledge is updated and new knowledge is posted.

Overview

We’ve been formed as a Maryland firm on August 24, 2011 and elected to be
taxed as an precise property funding perception for U.S. federal earnings tax capabilities
(“REIT”) beneath Sections 856 by way of 860 of the Inside Revenue Code of 1986, as
amended, commencing with the yr ended December 31, 2013. Now we’ve got no workers.
We’re managed by our enterprise supervisor, IREIT Enterprise Supervisor & Advisor, Inc.,
referred to herein as our “Business Manager.”

We’re primarily focused on shopping for and proudly proudly owning retail properties and intend to
aim a portfolio significantly comprised of grocery-anchored properties as
described below. Now we’ve got invested in joint ventures and can proceed to take a position
in additional joint ventures or buy completely different precise property property much like office
and medical office buildings, multi-family properties and
industrial/distribution and warehouse facilities if administration believes the
anticipated returns from these investments exceed that of retail properties. We
moreover might spend cash on precise estate-related equity securities of every publicly traded
and private precise property firms, along with enterprise mortgage-backed
securities.

On March 4, 2022, our board of directors determined an estimated per share net
asset value of our frequent stock of $20.20 as of December 31, 2021, as compared with
the sooner estimated value of $18.08 as of December 31, 2020. At June 30,
2022, we had full property of $1.4 billion on our steadiness sheet and owned 52
properties positioned in 24 states containing 7.2 million sq. toes. On May 17,
2022, we acquired eight retail shopping for center properties (the “IRPF
Properties”) from certain subsidiaries of Inland Retail Property Fund, LP. The
IRPF Properties are positioned all through seven states and mixture roughly
686,851 sq. toes. As seven of the eight properties are grocery-anchored, this
acquisition will enhance our portfolio of grocery-anchored properties, which is our
focus as described above. We acquired the IRPF Properties for an mixture
purchase value of $278 million, excluding closing costs. A majority of our
properties are multi-tenant, necessity-based retail shopping for amenities primarily
positioned in foremost regional markets and rising secondary markets all via the
United States. As of June 30, 2022, 88% of our annualized base rental earnings was
generated from grocery-anchored or grocery shadow-anchored shopping for amenities. A
grocery shadow-anchored shopping for center is a shopping center which we private that
is positioned near a grocery retailer that we don’t private nevertheless that we think about generates
website guests for our purchasing center. The portfolio properties have staggered lease
maturity dates. Grocery tenants accounted for 17% of our annualized base rent
(“ABR”) as of June 30, 2022.

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COVID-19 Pandemic

We proceed to look at the impression of the novel coronavirus (“COVID-19”) pandemic
on all aspects of our enterprise and areas, along with the way it’s impacting our
tenants and distributors. The Agency’s deferrals, modifications and rent abatements
have confirmed environment friendly serving to our tenants endure the monetary impacts of the
pandemic. As of June 30, 2022, our deferred rent steadiness was $0.1 million, down
from $0.4 million at December 31, 2021 and $4.5 million at December 31, 2020,
due primarily to collections of such rent. As of June 30, 2022, except for one
1,144 sq. foot tenant, now we’ve got not obtained any uncover of, and often usually are not
in another case aware of any of our tenants being in chapter, voluntarily or
in another case. Tenants with which now we’ve got agreed to defer rent have often been
paying every their frequent rental obligations along with the portions of deferred
rent in the midst of the three and 6 months ended June 30, 2022. See Discover 5 – “Leases”
for further knowledge.

Nonetheless, we’re unable to predict with certainty the long term impression that the
COVID-19 pandemic might have on our financial scenario, outcomes of operations
and cash flows due to fairly just a few uncertainties, along with the outcomes of the
Omicron variant or of the emergence and potential and exact spreading of any
completely different variant of COVID-19 inside the U.S. or anyplace from which our tenants might
get hold of gadgets or suppliers.

We rely on the Enterprise Supervisor to deal with our day-to-day operations. Though many
people have been able to work remotely efficiently, the enterprise and operations
of our Enterprise Supervisor and its associates may also be adversely impacted by
extra coronavirus outbreaks, along with illness or quarantine of members of its
workforce, which might negatively impression on its ability to produce us suppliers to
the an identical diploma as a result of it had earlier to the outbreak.

Inflation and Curiosity Expenses

Inflationary pressures and rising charges of curiosity could finish in reductions in
shopper spending and retailer profitability which can impression the Agency’s
ability to develop rents and tenant demand for model new and current retailer areas.
Irrespective of accelerating inflation ranges, base rent beneath quite a lot of the
Agency’s long-term anchor leases will keep fastened (matter to tenants’
practice of renewal selections at pre-negotiated rent will enhance) until the
expiration of their lease phrases. Whereas lots of these leases require tenants to
pay their share of shopping for center working payments (along with frequent house
repairs, precise property tax and insurance coverage protection payments), the Agency’s ability to
collect the passed-through expense will enhance to tenants is determined by their
ability to absorb and pay these will enhance. Inflation may also impression completely different
aspects of the Agency’s working costs, along with expenses paid to service
suppliers, the value to complete redevelopments and build-outs of simply currently leased
vacancies and price of curiosity costs referring to variable value loans and
refinancing of lower fixed-rate indebtedness. Whereas the Agency has not been
significantly impacted by any of this stuff up to now, no assurances might be
supplied that these inflationary pressures gained’t have a material opposed
affect on the Agency’s enterprise in the end.

Agency Exchange – Strategic Plan

The Agency has a strategic plan that options the targets of providing a future
liquidity event to merchants and creating long-term stockholder value. The
strategic plan amenities spherical proudly proudly owning a portfolio of grocery-anchored properties
with lower publicity to giant area retailers. As part of this method, our
administration crew incessantly evaluates potentialities for the opportunistic sale
of certain property with the aim of redeploying capital into the acquisition of
strategically positioned grocery-anchored amenities. Of the Agency’s 948 leasable
areas, there are 118 occupied non-grocery giant area (anchor areas of a minimal of
10,000 sq. toes) and 5 vacant giant area areas inside the portfolio as of July
31, 2022. As part of the strategic plan, we supplied three properties inside the first
quarter of 2020. We used the proceeds to pay down the Revolving Credit score rating Facility.
We’re not actively promoting and advertising and marketing any properties as of the date of this quarterly
report on Kind 10-Q. We think about rising the size and profitability of the
Agency would enhance our ability to complete a worthwhile liquidity event, and
to that end we search and contemplate potential acquisitions and can, for example,
opportunistically buy a portfolio of retail properties that we think about
enhances our current portfolio in relation to associated traits much like
tenant mix, demographics and geography and is in line with our plan to private a
portfolio significantly all of which is comprised of grocery-anchored or
shadow-anchored properties. On May 17, 2022, the Agency acquired, inside the
mixture, the IRPF Properties from certain subsidiaries of Inland Retail
Property Fund, LP, for roughly $278 million. We’d additionally ponder completely different
transactions, much like redeveloping certain of our properties or elements of
certain of our properties, for example, big-box areas, to repurpose them for
completely different enterprise or multifamily residential makes use of. We depend on to ponder
liquidity events, along with itemizing our frequent stock on a nationwide securities
change, nevertheless given our intention to opportunistically develop the portfolio,
execute redevelopment alternate options, and execute strategic product sales and
acquisitions all inside the context of (i) modifications in retail market circumstances
ensuing from the outcomes of the COVID-19 pandemic and completely different difficult parts
much like (ii) opponents for our tenants from evolving net corporations,
(iii) the state of the enterprise precise property market and financial markets, (iv)
our ability to carry capital or borrow on phrases which will be acceptable to the
Agency in delicate of the utilization of the proceeds and (v) frequent monetary circumstances,
amongst completely different parts, we do not know as soon as we are going to full a liquidity event. The
timing of the completion of the strategic plan has already extended previous our
distinctive expectations and might’t be predicted with certainty. There isn’t any
assurance that the Agency will probably be able

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to effectively implement its strategic plan, for example by making strategic
product sales or purchases of properties or itemizing the Agency’s frequent stock, inside
the timeframe we might favor or the least bit.

SELECT PROPERTY INFORMATION (All dollar portions in lots of, moreover per sq.
foot portions)

Funding Properties

As of June 30, 2022
Number of properties 52
Purchase value $ 1,624,667
Full sq. footage 7,167,822
Weighted frequent bodily occupancy 92.8 %
Weighted frequent monetary occupancy 93.0 %
Weighted frequent remaining lease time interval (years) 4.7

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The desk below presents knowledge for each of our funding properties as of
June 30, 2022.

Sq. Bodily Monetary Mortgage Curiosity
Property Location Footage Occupancy Occupancy Steadiness Price (b)
Newington Truthful (a) Newington, CT 186,205 100.0 % 100.0 % – –
Wedgewood Commons (a) Olive Division, MS 169,558 97.9 % 100.0 % – –
Park Avenue (a) Little Rock, AR 79,131 66.7 % 66.7 % – –
North Hills Sq. (a) Coral Springs, FL 63,829 97.5 % 97.5 % – –
Mansfield Procuring Coronary heart
(a) Mansfield, TX 148,529 95.0 % 95.0 % – –
Lakeside Crossing (a) Lynchburg, VA 67,034 97.8 % 97.8 % – –
MidTowne Procuring Coronary heart
(a) Little Rock, AR 126,288 70.3 % 70.3 % – –
Dogwood Competitors (a) Flowood, MS 187,468 81.7 % 81.7 % – –
Select N Save Coronary heart (a) West Bend, WI 94,446 98.9 % 98.9 % – –
Harris Plaza (a) Layton, UT 125,965 75.1 % 75.1 % – –
Dixie Valley (a) Louisville, KY 119,981 76.8 % 76.8 % – –
The Landings at Ocean
Isle (a) Ocean Isle, NC 53,203 94.9 % 94.9 % – –
Shoppes at Prairie Ridge
(a) Good Prairie, WI 232,606 98.8 % 98.8 % – –
Harvest Sq. (a) Harvest, AL 70,590 92.1 % 92.1 % – –
Heritage Sq. (a) Conyers, GA 22,510 95.8 % 95.8 % – –
The Shoppes at Branson
Hills (a) Branson, MO 256,244 95.5 % 95.5 % – –
Branson Hills Plaza (a) Branson, MO 210,201 100.0 % 100.0 % – –
Copps Grocery Retailer (a) Stevens Stage, WI 69,911 100.0 % 100.0 % – –
Fox Stage Plaza (a) Neenah, WI 171,121 100.0 % 100.0 % – –
Shoppes at Lake Park (a) W. Valley Metropolis, UT 52,997 90.6 % 90.6 % – –
Plaza at Prairie Ridge
(a) Good Prairie,WI 9,035 100.0 % 100.0 % – –
Inexperienced Tree Procuring
Coronary heart (a) Katy, TX 147,621 98.3 % 98.3 % – –
Eastside Junction (a) Athens, AL 79,675 91.0 % 91.0 % – –
Fairgrounds Crossing (a) Scorching Springs, AR 155,127 100.0 % 100.0 % – –
Prattville Metropolis Coronary heart
(a) Prattville, AL 168,842 100.0 % 100.0 % – –
Regal Court docket docket Shreveport, LA 363,061 96.2 % 96.2 % 26,000 4.50 %
Retailers at Hawk Ridge (a) St. Louis, MO 75,951 100.0 % 100.0 % – –
Walgreens Plaza (a) Jacksonville, NC 42,219 79.0 % 79.0 % – –
Frisco Market (a) Frisco, TX 112,024 89.7 % 89.7 % – –
White Metropolis (a) Shrewsbury, MA 256,974 94.7 % 94.7 % – –
Yorkville Market (a) Yorkville, IL 111,591 94.7 % 94.7 % – –
Shoppes at Market Pointe Papillion, NE 253,903 95.6 % 95.6 % 13,700 3.30 %
Market at El Paseo Fresno, CA
(a) 224,683 95.1 % 95.9 % – –
The Village at Burlington Kansas Metropolis, MO
Creek 157,937 88.9 % 88.9 % 17,244 4.25 %
Milford Market Milford, CT 111,959 89.2 % 89.2 % 18,727 4.02 %
Settlers Ridge Pittsburgh, PA 473,763 91.2 % 91.2 % 76,532 3.70 %
Blossom Valley Plaza (a) Turlock, CA 111,435 100.0 % 100.0 % – –
Oquirrh Mountain South Jordan, UT
Market (a) 75,950 97.2 % 97.2 % – –
Market at Tech Newport Info, VA
Coronary heart 210,505 74.9 % 79.9 % 36,089 3.15 %
Coastal North Metropolis Coronary heart Myrtle Seaside, SC 304,662 95.3 % 95.3 % 41,348 3.17 %
Oquirrh Mountain South Jordan, UT
Market II (a) 10,150 100.0 % 100.0 % – –
Wilson Market (a) Wilson, NC 311,030 100.0 % 100.0 % – –
Pentucket Procuring Coronary heart Plaistow, NH
(a) 198,469 98.0 % 98.0 % – –
Hickory Tavern (a) Myrtle Seaside, SC 6,588 100.0 % 100.0 % – –
New Metropolis (a) Owings Mill, MD 117,593 45.7 % 45.7 % – –
Olde Ivy Village (a) Smyrna, GA 46,500 93.7 % 93.7 % – –
Northpark Village Sq. Santa Clarita, CA
(a) 87,103 97.2 % 97.2 % – –
Lower Makefield Procuring Lower Makefield, PA
Coronary heart (a) 74,953 94.9 % 94.9 % – –
Denton Village (a) Denton, TX 48,280 100.0 % 100.0 % – –
Rusty Leaf Plaza (a) Orange, CA 59,188 95.7 % 97.0 % – –
Northville Park Place (a) Northville, MI 78,421 100.0 % 100.0 % – –
CityPlace (a) Woodbury, MN 174,813 95.1 % 95.1 % – –
Portfolio full 7,167,822 92.8 % 93.0 % $ 229,640 3.65 %

(a) Property is included inside the pool of unencumbered properties beneath our

Credit score rating Facility.

(b) Portfolio full is similar because the weighted frequent price of curiosity.

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Tenancy Highlights

The subsequent desk presents knowledge regarding the highest ten tenants in our
portfolio based mostly totally on annualized base rent for leases in-place as of June 30, 2022.

% of % of
Full Annualized Full
Amount Portfolio Base Rent Portfolio
of Annualized Annualized Per Sq. Sq. Sq.
Tenant Title Leases Base Rent Base Rent Foot Footage Footage
The Kroger Co 5 $ 4,735 4.3 % $ 15.99 296,150 4.1 %
The TJX Companies, Inc. 13 3,730 3.4 % 11.34 329,067 4.6 %
Albertsons/Jewel/Shaw’s 2 2,436 2.2 % 19.05 127,892 1.8 %
Ulta Salon, Cosmetics & Fragrance Inc. 11 2,428 2.2 % 21.88 110,958 1.5 %
Amazon/Complete Meals Market Group, Inc. 3 2,340 2.1 % 20.27 115,410 1.6 %
Ross Robe for A lot much less, Inc. 10 2,340 2.1 % 8.93 262,080 3.7 %
Sprouts Farmers Market, LLC 4 2,159 2.0 % 19.09 113,092 1.6 %
PetSmart 7 2,032 1.9 % 14.67 138,578 1.9 %
Dicks Sporting Objects, Inc. 4 2,012 1.8 % 11.13 180,766 2.5 %
LA Well being (Well being Worldwide) 2 1,966 1.8 % 21.94 89,600 1.3 %
Excessive ten tenants 61 $ 26,178 23.8 % $ 14.84 1,763,593 24.6 %

The subsequent desk models forth a summary of our tenant vary for our complete
portfolio and is based on leases in-place at June 30, 2022.

Gross Leasable % of % of
House – Full Gross Full Annualized
Tenant Kind Sq. Footage Leasable House Base Rent
Low value and Division Retailers 1,359,536 20.4 % 10.2 %
Grocery 1,331,589 20.0 % 17.4 %
Dwelling Objects 925,070 13.9 % 7.4 %
Life-style, Nicely being Golf tools, Books & Telephones 813,192 12.2 % 15.3 %
Restaurant 641,990 9.6 % 18.4 %
Apparel & Tools 424,407 6.3 % 8.3 %
Shopper Firms, Salons, Cleaners, Banks 345,783 5.2 % 9.2 %
Pet Gives 258,889 3.9 % 4.0 %
Sporting Objects 219,387 3.3 % 2.6 %
Nicely being, Docs & Nicely being Meals 212,900 3.2 % 5.4 %
Completely different 136,740 2.0 % 1.8 %
Full 6,669,483 100.0 % 100.0 %

The subsequent desk models forth a summary, as of June 30, 2022, of the % of
full annualized base rent and the weighted frequent lease expiration by dimension of
tenant.

% of Weighted
Full Frequent Lease
Description – Annualized Base Expiration –
Measurement of Tenant Sq. Footage Rent Years
Anchor 10,000 and over 50 % 5.6
Junior Area 5,000-9,999 13 % 4.5
Small Retailer Decrease than 5,000 37 % 3.7
Full 100 % 4.7

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Lease Expirations

The subsequent desk models forth a summary, as of June 30, 2022, of lease
expirations scheduled to occur in the midst of the the remainder of 2022 and each of the
calendar years from 2023 to 2031 and thereafter, assuming no practice of renewal
selections or early termination rights for leases commenced on or earlier to June 30,
2022. Annualized base rent represents the rent in-place of the related
property at June 30, 2022. The desk below consists of flooring leases. If flooring
leases are excluded, annualized base rent would equal $100,040 or $19.19 per
sq. foot for full expiring leases.

Gross
Leasable % of % of
House of Full Gross Full Full
Expiring Leasable Annualized Annualized Annualized
Number of Leases – House of Base Rent Base Rent Base Rent
Expiring Sq. Expiring of Expiring of Expiring per Leased
Lease Expiration 12 months Leases Footage Leases Leases Leases Sq. Foot
2022 (along with month-to-month) 73 270,246 4.0 % $ 4,663 4.3 % $ 17.26
2023 119 814,583 12.2 % 12,212 11.1 % 14.99
2024 128 874,428 13.1 % 16,055 14.6 % 18.36
2025 135 854,267 12.8 % 16,997 15.5 % 19.90
2026 107 595,905 8.9 % 10,985 10.0 % 18.43
2027 105 838,729 12.6 % 15,161 13.8 % 18.08
2028 45 758,961 11.4 % 8,502 7.7 % 11.20
2029 22 210,161 3.2 % 3,410 3.1 % 16.23
2030 23 230,283 3.5 % 4,366 4.0 % 18.96
2031 20 191,813 2.9 % 3,662 3.3 % 19.09
Thereafter 47 1,030,107 15.4 % 13,803 12.6 % 13.40
Leased Full 824 6,669,483 100.0 % $ 109,816 100.0 % $ 16.47

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Liquidity and Capital Sources

Regular

Our foremost makes use of and sources of cash are as follows:

Makes use of Sources

• Curiosity and principal funds on • Cash receipts from our tenants

mortgage loans and

Credit score rating Facility
• Property working payments • Sale of shares by way of the DRP
• • Proceeds from new or

refinanced

Regular and administrative payments mortgage loans
• Distributions to stockholders

• Borrowing on our Credit score rating

Facility

• Expenses payable to our Enterprise Supervisor • Proceeds from product sales of precise property (if

and Precise Property any)*

Supervisor

• Repurchases of shares beneath the SRP • Proceeds from issuance of securities

(if any) aside from by way of the DRP*
• Acquisitions of precise property instantly
or by way of joint ventures*
• Capital expenditures, tenant
enhancements and leasing commissions
• Redevelopments of complete properties
or certain areas inside our
properties*

*We are able to’t current any assurance that we are going to promote properties or
concern new securities to carry capital after we want, for example, to
enhance the proportion of grocery-anchored or shadow-anchored properties or
enhance the size of our portfolio of properties, or beneath phrases that may be
acceptable to us considering parts such as a result of the anticipated use of the
proceeds. Because of the Agency’s frequent stock simply isn’t listed on a securities
change, its ability to entry most people or private securities markets is
extra prone to be very restricted, considerably for equity capital.

We’re not at current actively promoting and advertising and marketing any properties.

At June 30, 2022, we had $58 million glorious beneath the Revolving Credit score rating
Facility and $575 million glorious beneath the Time interval Mortgage. At June 30, 2022 the
charges of curiosity on the Revolving Credit score rating Facility and the Time interval Mortgage have been 2.65% and
3.62%, respectively. On February 3, 2022, we extended the Revolving Credit score rating
Facility maturity date to February 3, 2026 plus a twelve month extension, on the
Agency’s chance. We moreover elevated the Time interval Mortgage glorious steadiness to $275
million which now matures on February 3, 2027. On May 17, 2022, we amended our
Credit score rating Settlement to increase the size of the Time interval Mortgage by $300 million to $575
million and modify a variety of covenants in each case to fund our acquisition of a
portfolio of eight retail shopping for center properties from Inland Retail Property
Fund, LP, a Delaware restricted partnership. As of August 10, 2022, we had $138
million obtainable for borrowing beneath the Revolving Credit score rating Facility, matter to
the phrases and circumstances, along with compliance with the covenants, of the Credit score rating
Settlement that governs the Credit score rating Facility. Although $138 million is the utmost
obtainable, covenant limitations affect what we’re capable of actually draw, and we depend on
to have significantly decrease than $138 million actually obtainable to draw or
in another case undertake as additional debt on account of, amongst completely different points,
ending the aforementioned acquisition of the eight properties and rising
the amount of the Time interval Mortgage. By “additional debt,” we suggest debt together with
current debt much like current mortgages. The properties comprising the
borrowing base for the Credit score rating Facility often usually are not obtainable to be used as
collateral for various debt besides far from the borrowing base, which could
shrink availability beneath the Credit score rating Facility.

As of June 30, 2022, we had full debt glorious of $862.6 million, excluding
mortgage premiums and unamortized debt issuance costs, which bore curiosity at a
weighted frequent price of curiosity of three.56% yearly. As of June 30, 2022, the
weighted frequent years to maturity for our debt was 4.2 years. As of June 30,
2022 and December 31, 2021, our borrowings have been 53% and 44%, respectively, of
the acquisition value of our funding properties. At June 30, 2022 our cash and
cash equivalents steadiness was $2.6 million.

As of August 10, 2022, inside the subsequent twelve months, now we’ve got three mortgage loans
maturing with an mixture principal steadiness of $91.1 million, which we intend
to repay with cash flows from working actions or by drawing on the
Revolving Credit score rating Facility.

To guard cash for the payment of working and completely different payments, much like debt
funds, in the midst of the second quarter of 2020 our board of directors rescinded the
distribution that was declared inside the first quarter of 2020, and we didn’t
declare one different distribution until June 29, 2021. We moreover suspended our DRP and
SRP. The suspension of the DRP was environment friendly on June 6, 2020 and the suspension
of the SRP was environment friendly on June 26, 2020. On June 29, 2021, we reinstated the
DRP and the SRP. The environment friendly date of the DRP reinstatement was July 22, 2021.
All through the six months ended June 30, 2022, we repurchased $1.8 million of shares
of frequent stock.

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Now we’ve got delayed making non-essential capital enhancements and completely different
non-essential capital expenditures at our properties given that onset of the
pandemic in 2020, the place attainable, to guard cash and depend on to proceed to
delay non-essential capital expenditures until they modify into necessary or until
the possibility of opposed outcomes of the COVID-19 pandemic on our tenants subsides and
there’s readability on our tenants’ ability and willingness to pay rent and meet
completely different lease obligations and, lastly, on the effectivity of our purchasing
amenities. As now we’ve got seen rent collections rising all through 2021 and into 2022,
now we’ve got been funding capital expenditures at our properties, and we don’t
depend on the prior delay in making these capital expenditures to have any supplies
affect on our tenants or our ability to lease home. Throughout the six months ended
June 30, 2022, we spent $1.8 million (76%) further on capital expenditures than we
did inside the six months ended June 30, 2021. Furthermore, we don’t anticipate a
supplies affect on our liquidity from returning to pre-pandemic ranges of
capital expenditures, assuming the businesses of our tenants negatively affected
by the COVID-19 pandemic proceed to boost or they in another case pay their rent.

As of June 30, 2022, now we’ve got paid all curiosity and principal portions when due,
and are in compliance with all financial covenants beneath the Credit score rating Facility as
amended.

Cash Transfer Analysis

Six Months Ended
June 30, Change
2022 2021 2022 vs. 2021
(Buck portions in lots of)
Internet cash flows supplied by working
actions $ 27,428 $ 23,698 $ 3,730
Internet cash flows utilized in investing actions $ (282,080 ) $ (2,317 ) $ (279,763 )
Internet cash flows supplied by (utilized in)
financing actions $ 250,817 $ (19,806 ) $ 270,623

Working actions

The rise in cash from working actions in the midst of the six months ended June
30, 2022 as compared with the six months ended June 30, 2021 was primarily due to the
undeniable fact that in the midst of the six months ended June 30, 2021, we paid portions due to the
enterprise supervisor for Q3 2020 enterprise administration expenses that had been deferred by
the enterprise supervisor offset partially by lowered collections of deferred rent
from our tenants in the midst of the six months ended June 30, 2022 as a result of the overwhelming majority
of fantastic deferred rent was collected by the highest of 2021.

Investing actions

Six Months Ended
June 30, Change
2022 2021 2022 vs. 2021
(Buck portions in lots of)
Purchase of funding properties $ (277,772 ) $ – $ (277,772 )
Capital expenditures (4,087 ) (2,317 ) (1,770 )
Completely different property (221 ) –

(221 )
Internet cash utilized in investing actions $ (282,080 ) $ (2,317 ) $ (279,763 )

The rise in cash used for investing actions in the midst of the six months ended
June 30, 2022 as compared with the six months ended June 30, 2021 was primarily due
to the acquisition of the IRPF Properties.

Financing actions

Six Months Ended
June 30, Change
2022 2021 2022 vs. 2021
(Buck portions in lots of)
Full modifications related to debt $ 259,784 $ (19,806 ) $ 279,590
Proceeds from the distribution reinvestment
plan, net of shares repurchased 1,836 – 1,836
Distributions paid (9,782 ) – (9,782 )
Early termination of price of curiosity swap
agreements (1,021 ) – (1,021 )
Internet cash supplied by (utilized in) financing
actions $ 250,817 $ (19,806 ) $ 270,623

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All through the six months ended June 30, 2022, modifications in full debt elevated
$279.6 million from the six months ended June 30, 2021 primarily due to an
enhance of $300 million beneath our time interval mortgage that’s part of our credit score rating facility
and the utilization of proceeds from the time interval mortgage for the acquisition of the IRPF
Properties. All through the six months ended June 30, 2022, we generated proceeds
from the sale of shares pursuant to the DRP of $3.6 million. For the six months
ended June 30, 2022, share repurchases have been $1.8 million. All through the six months
ended June 30, 2022, we paid $9.8 million in distributions. The DRP and the SRP
have been every reinstated in the midst of the second half of 2021.

Distributions

Distributions when declared are paid quarterly in arrears. A summary of the
distributions declared, distributions paid and cash flows supplied by operations
for the six months ended June 30, 2022 and 2021 follows (Buck portions in
lots of moreover per share portions):

Distributions Paid (1)
Six Months Distributions Cash Flows
Ended Distributions Declared Per Reinvested From
June 30, Declared Share Cash via DRP Full Operations
2022 $ 9,792 $ 0.271200 $ 6,111 $ 3,671 $ 9,782 $ 27,428
2021 $ 4,886 $ 0.135600 $ – $ – $ – $ 23,698

(1) Distributions have been funded by cash circulation from working actions and cash on

hand in the midst of the six months ended June 30, 2022.

Because of uncertainty surrounding the COVID-19 pandemic and the need to
defend cash for the payment of working and completely different payments, much like debt
funds, we had not paid any distributions given that first quarter of 2020. On
or about July 26, 2021, we resumed paying distributions on our frequent stock with
this main distribution inside the amount of $0.135600 per share to stockholders of
doc as of June 30, 2021.

Outcomes of Operations

The subsequent discussions are based mostly totally on our consolidated financial statements for
the six months ended June 30, 2022 and 2021. Buck portions are acknowledged in
lots of.

This half describes and compares our outcomes of operations for the three and
six months ended June 30, 2022 and 2021. We generate primarily all of our net
working earnings from property operations. In an effort to contemplate our basic
portfolio, administration analyzes the net working earnings of properties that we
have owned and operated for every durations supplied. An entire of 44 funding
properties which have been acquired on or sooner than January 1, 2021 symbolize our “identical
retailer” properties in the midst of the three and 6 months ended June 30, 2022 and 2021.
“Non-same store,” as mirrored inside the desk below, consists of properties
acquired after January 1, 2021. For the three and 6 months ended June 30,
2022, eight properties which have been acquired on May 17, 2022 constituted non-same
retailer properties.

Internet working earnings is a supplemental non-GAAP effectivity measure that we
think about is useful to merchants in measuring the working effectivity of our
property portfolio on account of our foremost enterprise is the possession of precise property,
and net working earnings excludes various objects included in GAAP net earnings that
don’t relate to, or often usually are not indicative of, our property working effectivity,
much like depreciation and amortization and parent-level firm payments
(along with frequent and administrative payments). Similar retailer net working earnings
is useful on account of it eliminates variations in net working earnings ensuing
from the acquisition or disposition of properties in the midst of the durations supplied
and subsequently provides a better comparability of the working effectivity of our
properties between durations.

The subsequent tables present the property net working earnings earlier to
straight-line earnings (expense), net, amortization of intangibles, curiosity, and
depreciation and amortization for the three and 6 months ended June 30, 2022
and 2021, along with a reconciliation to net loss, calculated in accordance with
U.S. GAAP.

30

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Comparability of the three months ended June 30, 2022 and June 30, 2021

Full Similar Retailer Non-Similar Retailer
Three Months Ended Three Months Ended Three Months Ended
June 30, June 30, June 30,
2022 2021 Change 2022

2021 Change 2022 2021 Change
Rental earnings

$ 31,587 $ 29,147 $ 2,440 $ 28,793

$ 29,147 $ (354 ) $ 2,794 $ – $ 2,794
Completely different property earnings 51

62 (11 ) 34 62 (28 ) 17 – 17
Full earnings $ 31,638 $ 29,209 $ 2,429 $ 28,827

$ 29,209 $ (382 ) $ 2,811 $ – $ 2,811

Property working
payments $ 5,545 $ 4,857 $ 688 $ 5,197

$ 4,857 $ 340 $ 348 $ – $ 348
Precise property tax expense 4,243 3,678 565 3,643

3,678 (35 ) 600 – 600
Full property
working payments $ 9,788 $ 8,535 $ 1,253 $ 8,840

$ 8,535 $ 305 $ 948 $ – $ 948

Property net working
earnings $ 21,850 $ 20,674 $ 1,176 $ 19,987

$ 20,674 $ (687 ) $ 1,863 $ – $ 1,863

Straight-line earnings
(expense), net $ (23 ) $ (115 ) $ 92
Amortization of
intangibles and lease
incentives 336 139 197
Regular and
administrative payments (1,351 ) (918 ) (433 )
Enterprise administration cost (2,549 ) (2,236 ) (313 )
Depreciation and
amortization (13,789 ) (12,218 ) (1,571 )
Curiosity expense (7,106 ) (5,801 ) (1,305 )
Curiosity and completely different
(expense) earnings – 29 (29 )
Internet loss $ (2,632 ) $ (446 ) $ (2,186 )

Internet loss. Internet loss was $2,632 and $446 for the three months ended June 30, 2022
and 2021, respectively.

Full property net working earnings. On a “same store” basis, evaluating the
outcomes of operations of funding properties owned in the midst of the three months
ended June 30, 2022 with the outcomes of the an identical funding properties owned
in the midst of the three months ended June 30, 2021, property net working earnings
decreased $687, full property earnings decreased $382, and full property
working payments along with precise property tax expense elevated $305.

The decrease in “same store” full property earnings is primarily due to a
decrease in restoration earnings due to a lower restoration proportion in the midst of the three
months ended June 30, 2022.

“Non-same store” full property net working earnings elevated $1,863 in the midst of the
three months ended June 30, 2022 as as compared with 2021. The rise is a finish end result
of shopping for eight properties on May 17, 2022. On a “non-same store” basis,
full property earnings elevated $2,811 and full property working payments
elevated $948 in the midst of the three months ended June 30, 2022 as as compared with 2021
on account of those acquisitions.

Straight-line earnings (expense), net. Straight-line earnings (expense), net
decreased $92 in 2022 as compared with 2021. This decrease is primarily due to lower
rent abatements in the midst of the three months ended June 30, 2022 partially offset by
the acquisition of eight properties on May 17, 2022.

Amortization of intangibles and lease incentives. Income from the amortization
of intangibles and lease incentives elevated $197 in 2022 as compared with 2021. The
enhance is primarily due to the acquisition of IRPF Properties.

Regular and administrative payments. Regular and administrative payments
elevated $433 in 2022 as compared with 2021. The rise is primarily due to bigger
licensed {{and professional}} expenses in the midst of the three months ended June 30, 2022.

Enterprise administration cost. Enterprise administration expenses elevated $313 in 2022
as compared with 2021. The rise is primarily due to the acquisition of IRPF
Properties.

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Depreciation and amortization. Depreciation and amortization elevated $1,571 in
2022 as compared with 2021. The rise is primarily due to the acquisition of eight
properties on May 17, 2022, partially offset by completely amortized property in 2022
as compared with 2021.

Curiosity expense. Curiosity expense elevated $1,305 in 2022 as compared with 2021.
The rise is primarily due to an increase in frequent debt glorious pushed
by the acquisition of IRPF Properties.

Curiosity and completely different earnings. Curiosity and completely different earnings decreased $29 in 2022
as compared with 2021.

Comparability of the six months ended June 30, 2022 and June 30, 2021

Full Similar Retailer Non-Similar Retailer
Six Months Ended Six Months Ended Six Months Ended
June 30, June 30, June 30,
2022 2021 Change 2022

2021 Change 2022 2021 Change
Rental earnings

$ 60,612 $ 58,821 $ 1,791 $ 57,818

$ 58,821 $ (1,003 ) $ 2,794 $ – $ 2,794
Completely different property earnings 80

110 (30 ) 63 110 (47 ) 17 – 17
Full earnings $ 60,692 $ 58,931 $ 1,761 $ 57,881

$ 58,931 $ (1,050 ) $ 2,811 $ – $ 2,811

Property working
payments $ 10,936 $ 10,375 $ 561 $ 10,588 $ 10,375 $ 213 $ 348 – $ 348

Precise property tax expense 7,973 7,348 625 7,373

7,348 25 600 – 600
Full property
working payments $ 18,909 $ 17,723 $ 1,186 $ 17,961 $ 17,723 $ 238 $ 948 $ – $ 948

Property net working
earnings $ 41,783 $ 41,208 $ 575 $ 39,920

$ 41,208 $ (1,288 ) $ 1,863 $ – $ 1,863

Straight-line earnings
(expense), net $ (274 ) $ (136 ) $ (138 )
Intangible amortization
and inducement 474 285 189
Regular and
administrative payments (2,763 ) (2,231 ) (532 )
Enterprise administration cost (4,793 ) (4,470 ) (323 )
Depreciation and
amortization (25,643 ) (24,673 ) (970 )
Curiosity expense (12,673 ) (11,843 ) (830 )
Curiosity and completely different
earnings (1 ) 86 (87 )
Internet loss $ (3,890 ) $ (1,774 ) $ (2,116 )

Internet loss. Internet loss was $3,890 and $1,774 for the six months ended June 30, 2022
and 2021, respectively.

Full property net working earnings. On a “same store” basis, evaluating the
outcomes of operations of funding properties in the midst of the complete six months ended
June 30, 2022 with the outcomes of the an identical funding properties owned all through
the full six months ended June 30, 2021 property net working earnings decreased
$1,288, full property earnings decreased $1,050, and full property working
payments along with precise property tax expense elevated $238.

The decrease in “same store” full property earnings is primarily due to a
decrease in restoration earnings due to a lower restoration proportion in the midst of the six
months ended June 30, 2022.

“Non-same store” full property net working earnings elevated $1,863 all through
2022 as as compared with 2021. The rise is a outcomes of shopping for eight retail
properties on May 17, 2022. On a “non-same store” basis, full property earnings
elevated $2,811 and full property working payments elevated $948 in the midst of the
six months ended June 30, 2022 as as compared with 2021 on account of those
acquisitions.

Straight-line earnings (expense), net. Straight-line earnings (expense), net
elevated $138 in 2022 as compared with 2021. This enhance is primarily due to the
acquisition of eight properties on May 17, 2022, partially offset by lower rent
abatements in the midst of the six months ended June 30, 2022.

Amortization of intangibles and lease incentives. Income from the amortization
of intangibles and lease incentives elevated $189 in 2022 as compared with 2021. The
enhance is primarily due to the acquisition of IRPF Properties.

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Regular and administrative payments. Regular and administrative payments
elevated $532 in 2022 as compared with 2021. The rise is primarily due to bigger
licensed {{and professional}} expenses in the midst of the six months ended June 30, 2022.

Enterprise administration cost. Enterprise administration expenses elevated $323 in 2022
as compared with 2021. The rise is primarily due to the acquisition of IRPF
Properties.

Depreciation and amortization. Depreciation and amortization elevated $970 in
2022 as compared with 2021. The decrease is primarily due to the acquisition of eight
properties on May 17, 2022, partially offset by completely amortized property in 2022
as compared with 2021.

Curiosity expense. Curiosity expense elevated $830 in 2022 as compared with 2021. The
enhance is primarily due to an increase in frequent debt glorious pushed by
the acquisition of IRPF Properties.

Curiosity and completely different earnings. Curiosity and completely different earnings decreased $87 in 2022
as compared with 2021.

Off-Steadiness Sheet Preparations

We at current haven’t any off-balance sheet preparations which will be pretty seemingly
to have a material current or future affect on our financial scenario, modifications
in financial scenario, revenues or payments, outcomes of operations, liquidity,
capital expenditures or capital sources.

Leasing Train

The subsequent desk models forth leasing train in the midst of the six months ended June
30, 2022. Leases with phrases of decrease than 12 months have been excluded from the
desk.

% Change
Number of Gross New Contractual Prior Contractual over Prior Weighted Tenant
Leases Leasable Rent per Sq.

Rent per Sq. Annualized Frequent Lease Allowances per

Signed House Foot Foot Base Rent Time interval Sq. Foot

Comparable Renewal
Leases 49 293,310 $ 17.88 $ 17.00 5.2 % 5.1 $ 1.46
Comparable New
Leases 4 6,031 $ 29.59 $ 25.86 14.4 % 6.3 $ 22.41
Non-Comparable New
and Renewal Leases
(a) 33 119,390 $ 16.68 N/A N/A 7.1 $ 13.80
Full 86 418,731

(a) Consists of leases signed on gadgets which have been vacant for over 12 months, leases

signed with out mounted rent portions and leases signed the place the sooner and

current lease don’t have comparable lease constructions.

Non-GAAP Financial Measures

Accounting for precise property property in accordance with U.S. GAAP assumes the price
of precise property property is lowered over time due primarily to non-cash
depreciation and amortization expense. Because of precise property values might rise and
fall with market circumstances, working outcomes from precise property firms that
use U.S. GAAP accounting couldn’t present an entire view of their effectivity.
We use Funds from Operations, or “FFO”, a extensively accepted metric to evaluate our
effectivity. FFO provides a supplemental measure to verify our effectivity and
operations to completely different REITs. Attributable to certain distinctive working traits of
precise property firms, the Nationwide Affiliation of Precise Property Funding
Trusts, or “NAREIT”, has promulgated a daily typically often known as FFO, which it believes
further exactly shows the working effectivity of a REIT. On November 7,
2018, NAREIT’s Govt Board accepted the White Paper restatement, environment friendly
December 15, 2018. The intention of the restatement was to not change the
primary definition of FFO nevertheless to clarify current steering. The restated
definition of FFO by NAREIT is net earnings (loss) computed in accordance with
U.S. GAAP, excluding depreciation and amortization related to precise property,
excluding constructive components (or losses) from product sales of certain precise property property, excluding
impairment write-downs of certain precise property property and investments in entities
when the impairment is straight away attributable to decreases inside the value of
depreciable precise property and excluding constructive components and losses from change in administration.
Now we’ve got adopted the restated NAREIT definition for computing FFO. Beforehand
supplied durations weren’t impacted.

Beneath U.S. GAAP, acquisition related costs are dealt with differently if the
acquisition is a enterprise combination or an asset acquisition. An acquisition of
a single property will seemingly be dealt with as an asset acquisition versus a
enterprise combination and acquisition related costs will probably be capitalized comparatively
than expensed when incurred. Publicly registered, non-listed REITs often
work together in a giant amount of acquisition train inside the early years of
their operations, and thus incur necessary acquisition related costs, all through
these preliminary years. Although completely different start up entities might work together in necessary
acquisition train all through their preliminary years,

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publicly registered, non-listed REITs are distinctive in that they often have a
restricted timeframe all through which they buy a wide selection of properties
and thus incur necessary acquisition related costs. Because of above parts
and completely different distinctive choices of publicly registered, non-listed REITs, the
Institute for Portfolio Choices, or “IPA”, an commerce commerce group,
revealed a standardized measure typically often known as Modified Funds from Operations, or
“MFFO”, which the IPA has promulgated as a supplemental measure for publicly
registered non-listed REITs and which will be one different relevant supplemental
measure to copy the working effectivity of a non-listed REIT. We think about it
is suitable to utilize MFFO as a supplemental measure of working effectivity
on account of we think about that, as compared year-over-year, every sooner than and after we
have deployed all of our Offering proceeds and are actually not incurring a
necessary amount of acquisition expenses or completely different related costs, it shows the
impression on our operations from developments in occupancy expenses, rental expenses, working
costs, frequent and administrative payments, and curiosity costs, which won’t be
immediately apparent from net earnings.

MFFO excludes expensed costs associated to investing actions, just a few of which
are acquisition related costs that affect our operations solely in durations in
which properties are acquired, and completely different non-operating objects which will be included
in FFO, much like straight-lining of rents as required by U.S. GAAP. By excluding
costs that we ponder further reflective of acquisition actions and completely different
non-operating objects, the utilization of MFFO provides one different measure of our working
effectivity as quickly as our portfolio is stabilized. Because of MFFO may be a acknowledged
measure of working effectivity contained in the non-listed REIT commerce, MFFO and
the modifications used to calculate it may be useful with the intention to contemplate our
effectivity in opposition to completely different non-listed REITs. Like FFO, MFFO simply isn’t equal to
our net earnings or loss as determined beneath U.S. GAAP, as detailed inside the desk
below, and MFFO won’t be a useful measure of the impression of long-term working
effectivity on value if we proceed to build up a giant amount of
properties. MFFO must solely be used as a measurement of our working
effectivity whereas we’re shopping for a giant amount of properties on account of it
excludes, amongst completely different points, acquisition costs incurred in the midst of the durations in
which properties have been acquired.

We think about our definition of MFFO, a non-U.S. GAAP measure, is in line with
the IPA’s Guideline 2010-01, Supplemental Effectivity Measure for Publicly
Registered, Non-Listed REITs: Modified Funds from Operations, or the “Apply
Guideline,” issued by the IPA in November 2010. The Apply Guideline defines
MFFO as FFO extra adjusted for the subsequent objects, as related, included in
the willpower of U.S. GAAP net earnings: acquisition expenses and payments;
portions referring to straight-line rents and amortization of above and below
market lease property and liabilities, accretion of reductions and amortization of
premiums on debt investments; mark-to-market modifications included in net earnings;
nonrecurring constructive components or losses included in net earnings from the extinguishment or
sale of debt, hedges, abroad change, derivatives or securities holdings the place
shopping for and promoting of such holdings simply isn’t a primary attribute of the advertising and marketing technique,
unrealized constructive components or losses ensuing from consolidation from, or deconsolidation
to, equity accounting, and after modifications for consolidated and unconsolidated
partnerships and joint ventures, with such modifications calculated to copy
MFFO on the an identical basis.

Our presentation of FFO and MFFO won’t be much like completely different equally titled
measures supplied by completely different REITs. We think about that the utilization of FFO and MFFO
provides a further full understanding of our working effectivity to
stockholders and to administration, and as compared yr over yr, shows the
impression on our operations from developments in occupancy expenses, rental expenses, working
costs, frequent and administrative payments, and curiosity costs. Neither FFO nor
MFFO is supposed to be another choice to “net income” or to “money flows from
working actions” as determined by U.S. GAAP as a measure of {our capability} to
pay distributions. Administration makes use of FFO and MFFO to verify our working
effectivity to that of various REITs and to guage our working effectivity.

Our FFO and MFFO for the six months ended June 30, 2022 and 2021 are calculated
as follows:

Six Months Ended
June 30,
2022 2021
(Buck portions in lots of)
Internet loss $ (3,890 ) $ (1,774 )
Depreciation and amortization related to
Add: funding properties 25,643 24,673
Funds from operations (FFO) 21,753 22,899

Amortization of acquired market lease
A lot much less: intangibles, net (529 ) (334 )
Straight-line earnings (expense), net 274 136
Modified funds from operations (MFFO) $ 21,498 $ 22,701

Subsequent Events

For knowledge related to subsequent events, reference is made to Discover 15 –
“Subsequent Events” which is included in our June 30, 2022 Notes to Consolidated
Financial Statements in Merchandise 1.

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