Risk Factors Update Summary

• Inflation has remained elevated for two years, impacting operating costs and potentially reducing future rent spreads.
• Additional costs, operating restrictions, and fines may result from non-compliance with laws and regulations.
• The company recognized a $0.5 million impairment charge related to one investment property in 2023.
• Failure to comply with ADA requirements could lead to substantial capital expenditures.
• Failure to qualify as a REIT could lead to adverse tax consequences.
• The company had $269.6 million of debt principal scheduled to mature through December 31, 2024.
• Increased focus on ESG practices may expose the company to new risks.
• Potential tax liabilities may arise from non-qualifying 1031 exchanges.
• The company invested $29.6 million in development projects and anticipates needing an additional $59.7 million.
• Stakeholders' focus on ESG factors could impact investment decisions and relationships.
• Changes in legislation could impact the company's tax obligations and distribution capabilities.
• The company's interest expense increased by $1.7 million annually due to a 1% increase in variable rate debt.
• The company faces competition from other real estate investors, potentially limiting growth opportunities.
• The company may be unable to dispose of properties on advantageous terms due to factors beyond its control.