Risk Factors Update Summary

• Net investment in direct financing leases decreased from $27,045 to $26,643, a decrease of $402.
• Net income increased from $129,475 to $163,312, a significant rise of $33,837.
• Adoption of a compensation clawback policy to comply with Dodd-Frank and SEC regulations.
• Decrease in the number of properties from 804 to 796 in the portfolio.
• Our growth depends on acquisitions, with an increase from an average of $500 million to $580 million per year.
• Dividend amounts declared and accrued increased from $54.5 million to $56.9 million.
• Undiscounted estimated lease payments decreased from $3,496 to $3,426, a decrease of $70.
• Cash paid for income taxes increased from $0.3 million to $0.4 million.
• Depreciation and amortization increased to $152,781 from $149,998, a notable increase of $2,783.
• Addition of further dilution to owners of common stock through future issuances or sales.
• The departure of key personnel could significantly and adversely affect the company's operations.
• Restricted Stock Units may be terminated for material breaches, including non-disclosure, non-disparagement, and non-solicitation obligations.
• Change in certification signatories from Christopher J. Czarnecki to John D. Moragne.
• The company's growth strategy changed to focus on the business model, not just acquisitions.
• Increase in net income from $129,475 to $163,312 primarily due to gains on real estate sales.
• Borrowings now bear interest at SOFR or CDOR, with an aggregate notional amount of $975 million.
• Policy applies to all current and former executive officers for financial reporting measures.
• Conversion of OP Units to shares increased significantly from 118,400 to 1,277,070.
• Termination for Cause or without Good Reason results in immediate forfeiture of all unvested Restricted Stock Units.
• Net cash provided by financing activities decreased to $334,820 for the year ended December 31, 2023.
• Provision for impairment of investment in rental properties rose from $5,535 to $31,274, a substantial increase of $25,739.
• Commitment for a building expansion increased from $17.4 million to $111.0 million.
• The company's ability to manage risks associated with new transaction structures, like speculative development projects, is crucial.
• Increase in the number of holders of record of common stock from 502 to 527.
• The company's growth through acquisitions may be impeded, affecting cash flow, financial condition, and operations.
• Increase in total unsecured debt from $1,947,831 to $2,190,322.
• Adjustment to recognize contractual operating lease billings increased from $22,353 to $27,154.
• Interest rate swaps outstanding increased to 32 with an aggregate notional amount of $975 million.
• Carrying value adjustments decreased from $6.3 million to $0.5 million.
• Change in Total Real Estate Assets decreased from $5,008.2 million to $4,983.7 million.
• Net cash provided by operating activities increased to $271,074 for the year ended December 31, 2023.
• Funds From Operations (FFO) increased to $298,622 for the year ended December 31, 2023.
• Increase in lease revenues from $407,513 to $442,888 due to property acquisitions.
• Increase in total outstanding borrowings by $116 million to fund acquisitions.
• Net lease revenues increased from $407,513 to $442,888, an increase of $35,375.
• The company's business model relies significantly on acquiring new properties, with a historical average of $500 million to $580 million per year.
• The Company has the right to terminate Restricted Stock Units for various breaches, including felony convictions against the Company.
• The company's ability to monitor and respond to ESG practices may result in unexpected costs or negative impacts.
• Stock-based compensation expense increased to $6,359 from $5,316, a significant rise of $1,043.
• Net cash used in investing activities decreased to $582,304 for the year ended December 31, 2023.
• Gain on sale of real estate decreased from $54,310 to $15,953, a notable decrease of $38,357.
• Amortization of intangible lease assets and liabilities decreased from $40,090 to $34,487.
• Taxable sales of properties increased from $533.7 million to $626.6 million.
• The Company may withhold taxes from amounts payable to cover Federal, state, or local withholding taxes related to Restricted Stock Units.
• Adjusted Funds From Operations (AFFO) increased to $277,725 for the year ended December 31, 2023.
• Cash paid for earnout liability decreased from $6,440 to $0, a significant decrease of $6,440.
• Mortgages, net decreased from $86,754 to $79,068, a decrease of $7,686.
• The Grantee may pay withholding tax obligations by cash payment to the Company or through withholding a portion of Shares.
• Cash distributions paid to stockholders increased from $181,224 to $207,522, a notable increase of $26,298.
• Weighted average interest rate on all outstanding borrowings decreased from 4.82% to 3.73%.
• The Grantee's remedies under the agreement do not prevent the Company from seeking injunctive or equitable relief for breach of obligations.
• The Grantee's rights as a stockholder are only effective upon issuance of Shares and entry as a shareholder.