Financial Analysis

NOTE 22. COMMITMENTS AND CONTINGENCIES MINIMUM FUTURE RENTAL PAYMENTS The Company leases, as lessee, certain equipment under operating leases. Minimum future rental payments under non-cancelable operating leases having remaining terms in excess of one year as of December 31, 2025, are summarized as follows (in thousands): Year Ending December 31, Amounts 2026 $ 129 2027 131 2028 19 2029 6 2030 2031 and Thereafter (Cumulative) Total Lease Payments $ 285 Imputed Interest (56) Operating Leases - Liability $ 229 Rental expense under all operating leases amounted to $0.1 million for each of the years ended December 31, 2025, 2024, and 2023. LEGAL PROCEEDINGS From time to time, the Company may be a party to certain legal proceedings, incidental to the normal course of its business. While the outcome of legal proceedings cannot be predicted with certainty, the Company is not currently a party to any pending or threatened legal proceedings that we believe could have a material adverse effect on the Companys business or financial condition. CONTRACTUAL COMMITMENTS EXPENDITURES The Company has committed to fund the following capital improvements. The improvements, which are related to several properties, are estimated to be generally completed within twelve months. These commitments, as of December 31, 2025, are as follows (in thousands): As of December 31, 2025 Total Commitment (1) $ 23,105 Less Amount Funded (2,612) Remaining Commitment $ 20,493 (1) Commitment includes tenant improve …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 20. STOCK-BASED COMPENSATION SUMMARY OF STOCK-BASED COMPENSATION A summary of share activity for all equity classified stock compensation during the year ended December 31, 2025, is presented below. Type of Award Shares Outstanding at 1/1/2025 Granted Shares Vested / Exercised Shares Expired Shares Forfeited Shares Shares Outstanding at 12/31/2025 Equity Classified - Performance Share Awards - Peer Group Market Condition Vesting 208,003 110,270 (55,386) 262,887 Equity Classified - Three Year Vest Restricted Shares 197,794 117,739 (112,009) (272) 203,252 Total Shares 405,797 228,009 (167,395) (272) 466,139 Amounts recognized in the financial statements for stock-based compensation are as follows (in thousands): Year Ended December 31, 2025 2024 2023 Total Cost of Share-Based Plans Charged Against Income $ 4,158 $ 3,637 $ 3,673 EQUITY-CLASSIFIED STOCK COMPENSATION Performance Share Awards Peer Group Market Condition Vesting Performance shares have been granted to certain employees under the 2010 Plan. The performance share awards entitle the recipient to receive, upon the vesting thereof, shares of common stock of the Company equal to between 0% and 150% of the number of performance shares awarded. The number of shares of common stock ultimately received by the award recipient is determined based on the Companys total stockholder return as compared to the total stockholder return of a certain peer group during a three-year performance period. The Company granted a total of …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 9. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the carrying value and estimated fair value of the Companys financial instruments not carried at fair value on the consolidated balance sheets at December 31, 2025 and 2024 (in thousands): December 31, 2025 December 31, 2024 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Cash and Cash Equivalents - Level 1 $ 6,467 $ 6,467 $ 9,017 $ 9,017 Restricted Cash - Level 1 $ 34,652 $ 34,652 $ 8,344 $ 8,344 Commercial Loans and Investments - Level 2 $ 104,804 $ 109,828 $ 105,043 $ 110,665 Long-Term Debt - Level 2 $ 616,345 $ 608,419 $ 518,993 $ 508,309 To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, were used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts. The following table presents the fair value of assets (liabilities) measured on a recurring basis by level as of December 31, 2025 and 2024 (in thousands). See Note 17, Interest Rate Swaps for further disclosure related to the Companys interest rate swaps. Fair Value at Reporting Date Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 21. INCOME TAXES The Company elected to be taxed as a REIT for U.S. federal income tax purposes, commencing with its taxable year ended December 31, 2020. The Company believes that, commencing with such taxable year, it has been organized and has operated in such a manner as to qualify for taxation as a REIT under the U.S. federal income tax laws. The Company intends to continue to operate in such a manner. As a REIT, the Company will be subject to U.S. federal and state income taxation at corporate rates on its net taxable income; the Company, however, may claim a deduction for the amount of dividends paid to its stockholders. Amounts distributed as dividends by the Company will be subject to taxation at the stockholder level only. While the Company must distribute at least 90% of its REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain, to qualify as a REIT, the Company intends to distribute all of its net taxable income. The Company is allowed certain other non-cash deductions or adjustments, such as depreciation expense, when computing its REIT taxable income and distribution requirement. These deductions permit the Company to reduce its dividend payout requirement under U.S. federal income tax laws. Certain states may impose minimum franchise taxes. To comply with certain REIT requirements, the Company holds certain of its non-REIT assets and operations through taxable REIT subsidiaries (TRSs) and subsidia …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 16. LONG-TERM DEBT As of December 31, 2025, the Companys outstanding indebtedness, at face value, was as follows (in thousands): Face Value Debt Maturity Date Interest Rate Wtd. Avg. Rate Credit Facility (1) $ 151,000 January 2027 SOFR + 0.10% + [1.25% - 2.20%] 5.00% 2027 Term Loan (2) 100,000 January 2027 SOFR + 0.10% + [1.25% - 2.20%] 2.80% 2028 Term Loan (3) 100,000 January 2028 SOFR + 0.10% + [1.20% - 2.15%] 5.18% 2029 Term Loan (4) 125,000 September 2029 SOFR + [1.20% - 2.15%] 4.21% 2030 Term Loan (5) 125,000 September 2030 SOFR + [1.20% - 2.15%] 4.24% Mortgage Note Payable 17,800 August 2026 4.060% 4.06% Total Long-Term Face Value Debt $ 618,800 4.33% (1) The Company utilized interest rate swaps on $65.0 million of the Credit Facility balance to fix SOFR and achieve a weighted average fixed swap rate of 3.12% plus the 10 bps SOFR adjustment plus the applicable spread. (2) The Company utilized interest rate swaps on the $100.0 million 2027 Term Loan balance to fix SOFR and achieve a fixed swap rate of 1.35% plus the 10 bps SOFR adjustment plus the applicable spread. (3) The Company utilized interest rate swaps on the $100.0 million 2028 Term Loan balance to fix SOFR and achieve a weighted average fixed swap rate of 3.78% plus the 10 bps SOFR adjustment plus the applicable spread. (4) The Company utilized interest rate swaps on the $125.0 million 2029 Term Loan balance to fix SOFR and achieve a weighted average fixed swap rate of 2.91% plus the applicable spread. (5) …

LongTermDebtTextBlock · excerpt; the full note is in the filing

RECENTLY ISSUED ACCOUNTING STANDARDS Income Taxes . In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures (ASU 2023-09) ASU 2023-09 requires annual disclosure of specific categories in the rate reconciliation and the provision of additional information for reconciling items that meet a quantitative threshold within the rate reconciliation. In addition, ASU 2023-09 requires annual disclosure of income taxes paid disaggregated by federal, state and foreign jurisdictions as well as individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis, however early adoption and retrospective application is permitted. The Company determined that the adoption of ASU 2023-09 did not have a material impact on the consolidated financial statements of the Company. Interim Reporting. In December 2025, the FASB issued ASU 2025-11 to provide clarity and enhance the navigability of interim reporting disclosures in accordance with FASB ASC 270, Interim Reporting. The update focuses on improving the guidance for disclosure requirements for interim reporting periods by (i) listing interim disclosures required under ASC 270 as well as all other ASC topics and (ii) requiring disclosure of events or transactions since the prior annual reporting period that are expected to have a material im …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 23. BUSINESS SEGMENT DATA The Company operates in four primary business segments: income properties, management services, commercial loans and investments, and real estate operations. The management services segment consists of the revenue generated from managing PINE, the Portfolio Management Agreement and the Subsurface Management Agreement, as described further in Note 5, Management Services Business Our income property operations consist of income-producing properties, and our business plan is focused on investing in additional income-producing properties. Our income property operations accounted for 87.2% and 88.0% of our identifiable assets as of December 31, 2025 and 2024, respectively, and 88.4%, 88.8%, and 88.6%, of our consolidated revenues for the years ended December 31, 2025, 2024, and 2023, respectively. Our management fee income consists primarily of the management fees earned for the management of PINE during the three years ended December 31, 2025, 2024, and 2023, as well as from the Portfolio Management Agreement during the three years ended December 31, 2025, 2024, and 2023, and the Subsurface Management Agreement during the years ended December 31, 2025 and 2024. As of December 31, 2025, our commercial loan and investment portfolio consisted of four commercial loan investments and two preferred equity investments which are classified as commercial loan investments. Our real estate operations consists of revenues generated from the sale of and royalty …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 13. EQUITY SHELF REGISTRATION On October 11, 2022, the Company filed a shelf registration statement on Form S-3, relating to the registration and potential issuance of its common stock, preferred stock, debt securities, warrants, rights, and units with a maximum aggregate offering price of up to $500.0 million (the 2022 Registration Statement). The Securities and Exchange Commission declared the 2022 Registration Statement effective on October 26, 2022. On October 16, 2024, the Company filed a new shelf registration statement on Form S-3, relating to the registration and potential issuance of its common stock, preferred stock, debt securities, warrants, rights, and units with a maximum aggregate offering price of up to $500.0 million (the 2024 Registration Statement). The Securities and Exchange Commission declared the 2024 Registration Statement effective on November 12, 2024. The 2022 Registration Statement was terminated concurrently with the effectiveness of the 2024 Registration Statement. EQUITY OFFERING On December 5, 2022, the Company completed a follow-on public offering of 3,450,000 shares of common stock, which included the full exercise of the underwriters option to purchase an additional 450,000 shares of common stock. Upon closing, the Company issued 3,450,000 shares and received net proceeds of $62.4 million, after deducting the underwriting discount and expenses. ATM PROGRAM On April 30, 2021, the Company implemented a $150.0 million at-the-market equity …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 24. SUBSEQUENT EVENTS Subsequent events and transactions were evaluated through February 19, 2026, the date the consolidated financial statements were issued. There were no reportable subsequent events or transactions. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

NOTE 20. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company may be a party to certain legal proceedings, incidental to the normal course of its business. While the outcome of legal proceedings cannot be predicted with certainty, the Company is not currently a party to any pending or threatened legal proceedings that we believe could have a material adverse effect on the Companys business or financial condition. Contractual Commitments Expenditures The Company has committed to fund the following capital improvements. The improvements, which are related to several properties, are estimated to be generally completed within twelve months. These commitments, as of June 30, 2026, are as follows (in thousands): As of June 30, 2026 Total Commitment (1) $ 37,555 Less Amount Funded (9,301) Remaining Commitment $ 28,254 (1) Commitment includes tenant improvements, leasing commissions, rebranding, facility expansion and other capital improvements. The Company has unfunded loan commitments under two construction loans as described in Note 4, Commercial Loans and Investments. The unfunded portion of these construction loans totaled $33.5 million as of June 30, 2026. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 18. STOCK-BASED COMPENSATION SUMMARY OF STOCK-BASED COMPENSATION A summary of share activity for all equity classified stock compensation during the six months ended June 30, 2026 is presented below. Type of Award Shares Outstanding at 1/1/2026 Granted Shares Vested / Exercised Shares Expired Shares Forfeited Shares Shares Outstanding at 6/30/2026 Equity Classified - Performance Share Awards - Peer Group Market Condition Vesting 262,887 121,053 (69,558) 314,382 Equity Classified - Three Year Vest Restricted Shares 203,252 134,642 (94,648) (1,703) 241,543 Total Shares 466,139 255,695 (164,206) (1,703) 555,925 Amounts recognized in the financial statements for stock-based compensation are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Total Cost of Share-Based Plans Charged Against Income $ 1,116 $ 1,003 $ 2,522 $ 2,286 EQUITY-CLASSIFIED STOCK COMPENSATION Performance Share Awards Peer Group Market Condition Vesting Performance shares have been granted to certain employees under the Companys 2010 Equity Incentive Plan (as amended and/or restated from time to time, the 2010 Plan). The performance share awards entitle the recipient to receive, upon the vesting thereof, shares of common stock of the Company equal to (a) in the case of performance share awards granted in 2024 and 2025, between 0% and 150% of the number of performance shares awarded, and (b) in the case of performance share awards granted in 2026, between 0% …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 7. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the carrying value and estimated fair value of the Companys financial instruments not carried at fair value on the consolidated balance sheets at June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 December 31, 2025 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Cash and Cash Equivalents - Level 1 $ 8,056 $ 8,056 $ 6,467 $ 6,467 Restricted Cash - Level 1 $ 35,447 $ 35,447 $ 34,652 $ 34,652 Commercial Loans and Investments - Level 2 $ 187,388 $ 194,905 $ 104,804 $ 109,828 Long-Term Debt - Level 2 $ 658,705 $ 658,872 $ 616,345 $ 608,419 To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, were used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts. The following table presents the fair value of assets (liabilities) measured on a recurring basis by level as of June 30, 2026 and December 31, 2025 (in thousands). See Note 15, Interest Rate Swaps for further disclosure related to the Companys interest rate swaps. Fair Value at Reporting Date Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 19. INCOME TAXES The Company elected to be taxed as a REIT for U.S. federal income tax purposes, commencing with its taxable year ended December 31, 2020. The Company believes that, commencing with such taxable year, it has been organized and has operated in such a manner as to qualify for taxation as a REIT under the U.S. federal income tax laws. The Company intends to continue to operate in such a manner. As a REIT, the Company will be subject to U.S. federal and state income taxation at corporate rates on its net taxable income; the Company, however, may claim a deduction for the amount of dividends paid to its stockholders. Amounts distributed as dividends by the Company will be subject to taxation at the stockholder level only. While the Company must distribute at least 90% of its REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain, to qualify as a REIT, the Company intends to distribute all of its net taxable income. The Company is allowed certain other non-cash deductions or adjustments, such as depreciation expense, when computing its REIT taxable income and distribution requirement. These deductions permit the Company to reduce its dividend payout requirement under U.S. federal income tax laws. Certain states may impose minimum franchise taxes. To comply with certain REIT requirements, the Company holds certain of its non-REIT assets and operations through TRSs and subsidiaries of TRSs, which are subj …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 14. LONG-TERM DEBT As of June 30, 2026, the Companys outstanding indebtedness, at face value, was as follows (in thousands): Face Value Debt Maturity Date Interest Rate Wtd. Avg. Rate Revolving Credit Facility (1) $ 193,000 January 2027 SOFR + 0.10% + [1.25% - 2.20%] 5.17% 2027 Term Loan (2) 100,000 January 2027 SOFR + 0.10% + [1.25% - 2.20%] 2.80% 2028 Term Loan (3) 100,000 January 2028 SOFR + 0.10% + [1.20% - 2.15%] 5.18% 2029 Term Loan (4) 125,000 September 2029 SOFR + [1.20% - 2.15%] 4.67% 2030 Term Loan (5) 125,000 September 2030 SOFR + [1.20% - 2.15%] 4.69% Mortgage Note Payable 17,800 August 2026 4.060% 4.06% Total Long-Term Face Value Debt $ 660,800 4.60% (1) The Company utilized interest rate swaps on $50.0 million of the Credit Facility balance to fix SOFR and achieve a weighted average fixed swap rate of 3.85% plus the 10 bps SOFR adjustment plus the applicable spread. (2) The Company utilized interest rate swaps on the $100.0 million 2027 Term Loan balance to fix SOFR and achieve a weighted average fixed swap rate of 1.35% plus the 10 bps SOFR adjustment plus the applicable spread. (3) The Company utilized interest rate swaps on the $100.0 million 2028 Term Loan balance to fix SOFR and achieve a fixed swap rate of 3.78% plus the 10 bps SOFR adjustment plus the applicable spread. (4) The Company utilized interest rate swaps on the $125.0 million 2029 Term Loan balance to fix SOFR and achieve a weighted average fixed swap rate of 3.37% plus the applicable sprea …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recent Accounting Developments In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) which requires additional disclosures regarding a public companys expenses and addresses requests from investors for more detailed information about the types of expenses (e.g., purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (e.g., cost of sales; selling, general, and administrative (SG&A); and research and development (R&D)). ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 21. BUSINESS SEGMENT DATA The Company operates in three primary business segments: income properties, management services, and commercial loans and investments. The management services segment consists of the revenue generated from managing PINE, the Portfolio Management Agreement and a subsurface management agreement, as described further in Note 5, Management Services Business. Our income property operations consist of income-producing properties, and our business plan is focused on investing in additional income-producing properties. Our income property operations accounted for 81.7% and 87.2% of our identifiable assets as of June 30, 2026 and December 31, 2025, respectively. Our income property operations accounted for 86.7% and 88.6% of our consolidated revenues for the six months ended June 30, 2026 and 2025, respectively. Our management fee income consists of the management fees earned for the management of PINE, the Portfolio Management Agreement and a subsurface management agreement during the six months ended June 30, 2026 and 2025. As of June 30, 2026, our commercial loan and investment portfolio consisted of four commercial loan investments and three preferred equity investments which are classified as commercial loan investments. Information about the Companys operations in different segments for the three months ended June 30, 2026 is as follows (in thousands): Income Properties Management Services Commercial Loans and Investments Total Revenues: Income Pro …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 11. EQUITY SHELF REGISTRATION On October 11, 2022, the Company filed a shelf registration statement on Form S-3, relating to the registration and potential issuance of its common stock, preferred stock, debt securities, warrants, rights, and units with a maximum aggregate offering price of up to $500.0 million (the 2022 Registration Statement). The Securities and Exchange Commission declared the 2022 Registration Statement effective on October 26, 2022. On October 16, 2024, the Company filed a new shelf registration statement on Form S-3, relating to the registration and potential issuance of its common stock, preferred stock, debt securities, warrants, rights, and units with a maximum aggregate offering price of up to $500.0 million (the 2024 Registration Statement). The Securities and Exchange Commission declared the 2024 Registration Statement effective on November 12, 2024. The 2022 Registration Statement was terminated concurrently with the effectiveness of the 2024 Registration Statement. EQUITY OFFERING On December 5, 2022, the Company completed a follow-on public offering of 3,450,000 shares of common stock, which included the full exercise of the underwriters option to purchase an additional 450,000 shares of common stock. Upon closing, the Company issued 3,450,000 shares and received net proceeds of $62.4 million, after deducting the underwriting discount and expenses. ATM PROGRAM On April 30, 2021, the Company implemented a $150.0 million at-the-market equity …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 22. SUBSEQUENT EVENTS Subsequent events and transactions were evaluated through July 28, 2026, the date the consolidated financial statements were issued. On July 15, 2026, the Company originated a $37.0 million loan, of which $29.8 million was funded at closing. The investment is secured by a leasehold interest in a mixed-use property located in Austin, Texas, bears an initial cash yield of 9.75%, and has a two-year term.

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