SWDR 10-K & 10-Q changes, risk factors and insider trading

We have held certain of our current investments for a limited period of time and are not able to provide you with any information relating to any future properties, real estate debt or real estate-related equity securities that we may acquire in the future. BecauseSince we have not held certain of our current investments for a long period of time, it may be difficult for you to evaluate our success in achieving our investment objectives. We will continue to seek to invest substantially all of the future net offering proceeds from our offering, after the payment of fees and expenses, in the acquisition of or investment in interests in properties, real estate debt or real estate-related equity securities. However, becauseSince you are unable to evaluate the economic merit of our future investments before we make them, you have to rely entirely on the ability of the Advisor to select suitable and successful investment opportunities. Furthermore, the Advisor has broad discretion in selecting the types of properties we will invest in and the tenants of those properties, and you do not have the opportunity to evaluate potential investments. These factors increase the risk that your investment in our common stock may not generate returns comparable to other real estate investment alternatives.

Economic events affecting the U.S. economy, such as the general negative performance of the real estate sector (including as a result of inflation or higher interest rates), actual or perceived instability in the U.S. banking system, disruptions in the labor market (including labor shortages and unemployment), stock market volatility, trade conflict, civil unrest, national and international security events, geopolitical events, military conflicts and war (including the ongoing conflicts in the Middle East and Ukraine) could cause our stockholders to seek to sell their shares to us pursuant to our share repurchase plan at a time when such events are adversely affecting the performance of our assets. Even if we decide to satisfy all resulting repurchase requests, our cash flow could be materially adversely affected. In addition, if we determine to sell assets to satisfy repurchase requests, we may not be able to realize the return on such assets that we may have been able to achieve had we sold at a more favorable time, and our results of operations and financial condition, including, without limitation, breadth of our portfolio by property type and location, could be materially adversely affected.

AnnualWe appraisalsexpect to receive an appraisal for each of our properties arefrom conductedan onindependent athird-party rollingappraisal basis,firm suchno thatless than annually, which can be considered in determining the value of our properties are appraised at different times, but each propertyquarter-end. would be appraised at least once per year. In addition, ourThe independent valuation advisor willalso conductreviews quarterlyand provides an opinion as to the reasonableness of the valuations of our single-familyproperties rentalprepared investments.by the Advisor for each month that is not a quarter-end. When these appraisalsvalues are reflectedincluded in our NAV calculations, there may be a material change in our NAV per share amounts for each class of our common stock from those previously reported. The changes in a property’s value may be as a result of property-specific changes or as a result of more general changes to real estate values resulting from local, national or global economic changes. In addition, actual operating results for a given month may differ from what we originally budgeted for that month, which may cause a material increase or decrease in the NAV per share amounts. We will not retroactively adjust the NAV per share of each class reported for the previous month. Therefore, because a new annualproperty appraisalvalues may differ materially from the prior appraisalvalues or the actual results from operations may be better or worse than what we previously budgeted for a particular month, the adjustment to reflect the new appraisalvalue or actual operating results may cause the NAV per share for each class of our common stock to increase or decrease, and such increase or decrease will occur in the month the adjustment is made.

The Advisor’s determination of our monthly NAV per share is based in part on appraisals of each of our properties provided at least annually by independent third-party appraisal firms in individual appraisal reports reviewed by our independent valuation advisor in accordance with valuation guidelinesguidelines. approvedThe independent valuation advisor also reviews and provides an opinion as to the reasonableness of the valuations of our properties prepared by ourthe boardAdvisor offor directors.each month that is not a quarter-end. As a result, our published NAV per share in any given month may not fully reflect any or all changes in value that may have occurred since the most recent appraisal or valuation. The Advisor will review appraisal reports and monitor our properties, and iswill responsible for notifyingnotify the independent valuation advisor of the occurrence of any property-specific or market-driven event it believes may cause a material valuation change in the real estateproperty valuation, but it may be difficult to reflect fully and accurately, rapidly changing market conditions or material events that may impact the value of our assets or liabilities between valuations, or to obtain quickly, complete information regarding any such events. For example, an unexpected termination or renewal of a material lease, a material increase or decrease in vacancies or an unanticipated structural or environmental event at a property may cause the value of a property to change materially, yet obtaining sufficient relevant information after the occurrence has come to light and/or analyzing fully the financial impact of such an event may be difficult to do and may require some time. As a result, the NAV per share may not reflect a material event until such time as sufficient information is available and analyzed, and the financial impact is fully evaluated, such that our NAV may be appropriately adjusted in accordance with our valuation guidelines. Depending on the circumstance, the resulting potential disparity in our NAV may be in favor or to the detriment of either stockholders who repurchase their shares, or stockholders who buy new shares, or existing stockholders.

These provisions may discourage an extraordinary transaction, such as a merger, tender offer or sale of all or substantially all of our assets, all of which might provide a premium price for stockholders’ shares. In our charter, we have elected that vacancies on our board of directors be filled only by the remaining directors and for the remainder of the full term of the directorship in which the vacancy occurred. Through other provisions in our charter and bylaws, we vest in our board of directors the exclusive power to fix the number of directorships, provided that the number is not less than three. We have not elected to be subject to any of the other provisions described above, but our charter does not prohibit our board of directors from opting into any of these provisions in the future.above.

Our board of directors is permitted, subject to certain restrictions set forth in our charter, to authorize the issuance of shares of preferred stock without stockholder approval. Further, our board of directors may classify or reclassify any unissued shares of common or preferred stock into other classes or series of stock and establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms or conditions of redemption of the stock and may amend our charter from time to time to increase or decrease the aggregate number of shares of stock or the number of shares of any class or series of stock that we have authority to issue without stockholder approval. Thus, subject to the provisions of our charter and any applicable laws or regulations, our board of directors could authorize us to issue shares of preferred stock ranking senior to our common stock with respect to distribution rights upon our liquidation, dissolution or winding up or with terms and conditions that could have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction such as a merger, tender offer or sale of all or substantially all of our assets, that might provide a premium price for holders of our common stock.

We rely heavily on our and Starwood Capital’s financial, accounting, treasury, communications and other data processing systems. Such systems may fail to operate properly or become disabled as a result of tampering or a breach of the network security systems or otherwise. In addition, such systems are from time to time subject to cyberattacks which may continue to increase in sophistication and frequency in the future. The risk of cybersecurity incidents may additionally be heightened by the increased prevalence and use of artificial intelligence and machine-learning technology. Attacks on Starwood Capital and its affiliates and their portfolio companies’entities and service providers’ systems could involve and, in some instances, have in the past involved attempted attacks that are intended to obtain unauthorized access to our proprietary information or personal identifying information of our stockholders, destroy data or disable, degrade or sabotage our systems, through the introduction of computer viruses or other malicious code.

Cyber security incidents and cyber-attacks have been occurring globally at a more frequent and severe level and will likely continue to increase in frequency in the future. Our information and technology systems as well as those of Starwood Capital, its portfolio entities and other related parties, such as service providers, may be vulnerable to damage or interruptions from cyber security breaches, computer viruses, network failures, computer and telecommunication failures, infiltration by unauthorized persons and other security breaches, usage errors by their respective professionals or service providers, power, communications or other service outages and catastrophic events such as fires, tornadoes, floods, hurricanes and earthquakes. Cyberattacks and other security threats could originate from a wide variety of sources, including cyber criminals, nation state hackers, hacktivists and other outside parties. There has been an increase in the frequency and sophistication of the cyber and securitycybersecurity threats Starwood Capital faces, with attacks ranging from those common to businesses generally to those that are more advanced and persistent, which may target Starwood Capital because Starwood Capital holds a significant amount of confidential and sensitive information about its investors, its portfolio companiesentities and potential investments. As a result, Starwood Capital may face a heightened risk of a securitycybersecurity breach or disruption with respect to this information. If successful, these types of attacks on Starwood Capital’s network or other systems could have a material adverse effect on our business and results of operations, due to, among other things, the loss of investor or proprietary data, interruptions or delays in the operation of our business and damage to our reputation. There can be no assurance that measures Starwood Capital takes to ensure the integrity of its systems will provide protection, especially because cyberattack techniques used change frequently or are not recognized until successful.

Additionally, there continues to be significant evolution and developments in the use of artificial intelligence, including machine learning and similar tools and technologies that collect, aggregate, analyze or generate data or other materials (collectively “AI”). Starwood Capital has taken meaningful steps to integrate AI into its business operations and continues to expand its use across the firm. The Company has deployed enterprise-scale large language model platforms firm-wide, enabling employees to leverage AI for research, analysis, drafting, and operational workflows. While Starwood Capital has notmade integratedand expects to continue making investments in AI capabilities, the use of AI in its business currently, it could integrate it in the future and at this time cannot fully determine thefull impact of suchthese evolving technologytechnologies toon our industry or business.business cannot be fully determined at this time, and there can be no assurance that such investments will yield expected efficiencies or competitive advantages.

Use of AI could include the input of confidential information in contravention of applicable policies, contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by other third-party AI applications and users. While the Advisor does not currently use AI to make investment recommendations, theThe use of AI could also exacerbate or create new and unpredictable risks to our business, the Advisor’s business, and the business of our portfolio companies, including by potentially significantly disrupting the markets in which we and our portfolio companies operate or subjecting us, our portfolio companies and the Advisor to increased competition and regulation, which could materially and adversely affect the business, financial condition or results of operations of us, our portfolio companies and the Advisor. In addition, the use of AI by bad actors could heighten the sophistication and effectiveness of cyber and security attacks experienced by our portfolio companies and the Advisor.

changes in global, national, regional or local economic, demographic or capital market conditions, including economic impacts resulting from trade conflict, civil unrest, national and international security events, geopolitical events, military conflicts, war (including the ongoing conflicts in the Middle East and Ukraine) and actual or perceived instability in the U.S. banking system;

We face competition from various entities for investment opportunities in properties, including other REITs, real estate operating companies, pension funds, insurance companies, investment funds and companies, partnerships and developers. In addition to third-party competitors, other programs sponsored by the Advisor and its affiliates, particularly those with investment strategies that overlap with ours, may seek investment opportunities under Starwood Capital’s prevailing policies and procedures. Many of these entities may have greater access to capital to acquire properties than we have. Competition from these entities may reduce the number of suitable investment opportunities offered to us or increase the bargaining power of property owners seeking to sell. Additionally, disruptions and dislocations in the credit markets could have a material impact on the cost and availability of debt to finance real estate acquisitions, which is a key component of our acquisition strategy. The lack of available debt on reasonable terms or at all could result in a further reduction of suitable investment opportunities and create a competitive advantage for other entities that have greater financial resources than we do. In addition, over the past several years, a number of real estate funds and publicly traded and non-listed REITs have been formed and others have been consolidated (and many such existing funds have grown in size) for the purposes of investing in real estate debt. Additional real estate funds, vehicles and REITs with similar investment objectives may be formed in the future by other unrelated parties and further consolidations may occur (resulting in larger funds and vehicles). Consequently, it is expected that competition for appropriate investment opportunities may reduce the number of investment opportunities available to us and adversely affect the terms, including price, upon which investments can be made. Additionally, rapid advances in AI may intensify competition and disrupt traditional operating models, creating pressures and operational uncertainties across industries. This competition may cause us to acquire properties and other investments at higher prices or by using less-than-ideal capital structures, and in such case our returns will be lower and the value of our assets may not appreciate or may decrease significantly below the amount we paid for such assets. If such events occur, you may experience a lower return on your investment.

Rental income from real property, directly or indirectly, constitutes a significant portion of our income. Delays in collecting accounts receivable from tenants could adversely affect our cash flows and financial condition. In addition, the inability of a single major tenant or a number of smaller tenants to meet their rental obligations would adversely affect our income. Therefore, our financial success is indirectly dependent on the success of the businesses operated by the tenants in our properties or in the properties securing loans we own. Our tenants may be negatively affected by continued market volatility, trade conflict, civil unrest, national and international security events, geopolitical events, military conflicts, war, disruptions in global supply chains, natural disasters, public health or pandemic crises, actual or perceived instability in the U.S. banking system, labor shortages, tariffs, elevated consumer prices or broad inflationary pressures, any of which may have a negative impact on our tenant’s ability to execute on their business plans and their ability to perform under the terms of their obligations. This risk may be magnified in the case of the ongoing war between Russia and Ukraine, due to the significant sanctions and other restrictive actions taken against Russia by the United States and other countries, as well as the cessation of all business in Russia by many global companies. The weakening of the financial condition of or the bankruptcy or insolvency of a significant tenant or a number of smaller tenants and vacancies caused by defaults of tenants or the expiration of leases may adversely affect our operations and our ability to pay distributions.

We may invest from time-to-time in real estate debt investments. Any deterioration of real estate fundamentals generally, and in the United States in particular, could negatively impact our performance by making it more difficult for issuers to satisfy their debt payment obligations, increasing the default risk applicable to issuers, or making it relatively more difficult for us to generate attractive risk-adjusted returns. Changes in general economic conditions will affect the creditworthiness of issuers or real estate collateral relating to our investments and may include economic or market fluctuations, changes in environmental and zoning laws, casualty or condemnation losses, regulatory limitations on rents, decreases in property values, changes in the appeal of properties to tenants, changes in supply and demand for competing properties in an area (as a result, for instance, of overbuilding), fluctuations in real estate fundamentals (including average occupancy, operating income and room rates for hospitality properties), the financial resources of tenants, changes in availability of debt financing which may render the sale or refinancing of properties difficult or impracticable, changes in building, environmental and other laws, energy, supply, and labor shortages, various uninsured or uninsurable risks, natural disasters, political elections and other events, government shutdowns, trade barriers, tariffs, currency exchange controls, changes in government regulations (such as rent control), changes in real property tax rates and operating expenses, changes in interest rates, changes in the availability of debt financing or mortgage funds which may render the sale or refinancing of properties difficult or impracticable, increased mortgage defaults, increases in borrowing rates, outbreaks of an infectious disease, epidemics/pandemics or other serious public health concerns, negative developments in the economy or political climate that depress travel activity (including restrictions on travel or quarantine imposed), environmental liabilities, contingent liabilities on disposition of assets, acts of God, terrorist attacks, geopolitical events, military conflicts, war (including the ongoing conflicts in the Middle East and Ukraine), demand and/or real estate values generally and other factors that are beyond the control of the Advisor. Such changes may develop rapidly and it may be difficult to determine the comprehensive impact of such changes on our investments, particularly for investments that may have inherently limited liquidity. This risk may be magnified in the case of the war between Russia and Ukraine, due to the significant sanctions and other restrictive actions taken against Russia by the U.S. and other countries, as well as the cessation of all business in Russia by many global companies. These changes may also create significant volatility in the markets for our investments which could cause rapid and large fluctuations in the values of such investments. There can be no assurance that there will be a ready market for the resale of investments because investments may not be liquid. Illiquidity may result from the absence of an established market for the investments, as well as legal or contractual restrictions on their resale by us. The value of securities of companies which service the real estate business sector may also be affected by such risks.

The Advisor is paid a management fee for its services based on our NAV, which is calculated by The Bank of New York Mellon,York, our fund administrator, based on valuations provided by the Advisor. In addition, the distributions to be received by the Special Limited Partner with respect to its performance participation interest in the Operating Partnership are based in part upon the Operating Partnership’s net assets (which is a component of our NAV). The calculation of our NAV includes certain subjective judgments with respect to estimating, for example, the value of our portfolio and our accrued expenses, net portfolio income and liabilities, and therefore, our NAV may not correspond to realizable value upon a sale of those assets. The Advisor may benefit by us retaining ownership of our assets at times when our stockholders may be better served by the sale or disposition of our assets in order to avoid a reduction in our NAV. If our NAV is calculated in a way that is not reflective of our actual NAV, then the purchase price of shares of our common stock or the price paid for the repurchase of your shares of common stock on a given date may not accurately reflect the value of our portfolio, and your shares may be worth less than the purchase price or more than the repurchase price.

OneCertain Other Starwood Account,Accounts a privatetarget real estate debt fundinvestments (“EuropeanStarwood Debt FundFunds”) generally targets performing debt investments related to properties in the U.S. and Europe. We do not expect to target thesuch samedebt commercial real estate loansinvestments as Europeanour Debtprimary Fund,investment strategy, but to the extent that we do, Europeansuch Starwood Debt FundFunds will have priority with respect to a minority portion of such Europeaninvestment debt investmentopportunities, and, as such, will result in less of an investment opportunity being made available to us.

We intend to hold certain limited partner or non-managing member interests in partnerships or limited liability companies that are joint ventures or investment funds. Such investments may be substantial and may take the form of non-managing, non-controlling interests. Our ability to qualify as a REIT will be affected by such investments. To the extent that our investment in an entity that is classified as a partnership for U.S. federal income tax purposes is not held through one of our TRSs, our share of the gross income of the entity will be taken into account for purposes of determining whether we satisfy the gross income tests and our share of the assets of the entity will be taken into account for purposes of determining whether we satisfy the asset tests that apply to REITs. In certain cases, common commercial practices outside the United States may be inconsistent with the REIT rules for qualifying “rents from real property,” and sale and exchange gains are likely to be recognized that may or may not be treated as non-qualifying income for purposes of the gross income tests. If a partnership or limited liability company in which we own an interest takes or expects to take actions that could jeopardize our qualification as a REIT or require us to pay tax, we may be forced to dispose of our interest in such entity or contribute such interest to a TRS. In addition, it is possible that a partnership or limited liability company could take an action that could cause us to fail a gross income or asset test, and that we would not become aware of such action in time to dispose of our interest in the partnership or limited liability company or take other corrective action on a timely basis. In addition, we will have to take into account our share of the income of such joint ventures and investment funds that are classified as partnerships for tax purposes, without regard to whether such joint ventures or funds make distributions to us to fund our distribution requirements. We may avoid some of these risks by investing in joint ventures or funds that are classified as partnerships for U.S. federal income tax purposes through one of our TRSs. Under the asset tests, however, no more than 20% of our assets may consist of TRS securities.securities for taxable years ended on or before December 31, 2025. For taxable years beginning after December 31, 2025, that percentage limit is increased from 20% to 25%. In addition, in the case of any non-U.S. TRSs, we would expect to have to take into income the net income of such a TRS each year under the “subpart F income” rules applicable to “controlled foreign corporations” without regard to whether we receive any distributions from the TRS. Such subpart F income inclusions will be treated as qualifying income for purposes of the 95% gross income test, but not for purposes of the 75% gross income test.

In recent years, numerous legislative, judicial and administrative changes have been made in the provisions of U.S. federal income tax laws applicable to investments similar to an investment in shares of our common stock. The TaxOne CutsBig andBeautiful JobsBill Act, enactedwhich inwas Decembersigned 2017,into resultedlaw inon fundamentalJuly 4, 2025, made significant changes to the CodeU.S. withfederal manyincome oftax thelaws changesin applicablevarious to individuals applying only through December 31, 2025.areas. Among the numerousnotable changeschanges, includedthe One Big Beautiful Bill Act permanently extended certain provisions that were enacted in the Tax Cuts and Jobs Act isof a2017, deductionmost of upwhich were set to 20%expire ofafter qualifiedDecember REIT31, dividends for non-corporate U.S. taxpayers for taxable years beginning before January 1, 2026.2025. Further changes to the tax laws are possible. In particular, the federal income taxation of REITs may be modified, possibly with retroactive effect, by legislative, administrative or judicial action at any time.

In addition, as of January 1, 2024, we and our subsidiaries,subsidiaries in principle, wouldcould be subject to the Organization for Economic Cooperation and Development (OECD) Global Anti-Base Erosion Rules (more commonly referred to as the “Pillar 2 Rules”) as promulgated by certain non-U.S. jurisdictions. The Pillar 2 Rules can potentially lead to additional taxes (“Top-Up Tax”) when the effective tax rate (as defined by the Pillar 2 Rules) in a jurisdiction is below 15%. The Pillar 2 Rules, however, do not apply to “Excluded Entities” and certain subsidiaries of Excluded Entities. We are currently analyzing our qualification as an Excluded Entity as a “Real Estate Investment Vehicle.” In the event we do not qualify as a Real Estate Investment Vehicle, Top-Up Taxes may apply beginning in fiscal year 2026 on our United States income and may be material. Safe harbor exceptions are expected to apply for the majority of our non-United States income, and for those entities that do not meet certain safe harbor tests, the impact to us as a whole is expected to be immaterial. It is noted that the Pillar 2 Rules are still yet to be implemented in most of the jurisdictions in which we operate. Developments will be monitored as guidance and local implementation progresses.

We cannot assure stockholders that any suchfuture changes will not adversely affect the taxation of our stockholders. Any such changes could have an adverse effect on an investment in our shares or on the market value or the resale potential of our assets. Stockholders are urged to consult with their tax advisors with respect to the impact of these legislative changes on their investment in our shares and the status of legislative, regulatory or administrative developments and proposals and their potential effect on an investment in our shares. Although REITs generally receive certain tax advantages compared to entities taxed as regular corporations, it is possible that future legislation would result in a REIT having fewer tax advantages, and it could become more advantageous for a company that invests in real estate to elect to be treated for U.S. federal income tax purposes as a “C” corporation rather than a REIT. As a result, our charter authorizes our board of directors to revoke or otherwise terminate our REIT election, without the approval of our stockholders, if it determines that changes to U.S. federal income tax laws and regulations or other considerations mean it is no longer in our best interests to qualify as a REIT.

To qualify as a REIT, at the end of each calendar quarter, at least 75% of the value of our assets must consist of cash, cash items, government securities and qualified real estate assets. The remainder of our investments in securities (other than qualified real estate assets and government securities) generally cannot include more than 10% of the voting securities of any one issuer or more than 10% of the value of the outstanding securities (other than securities that qualify for the straight debt safe harbor) of any one issuer unless we and such issuer jointly elect for such issuer to be treated as a TRS under the Code. Debt will generally meet the “straight debt” safe harbor if the debt is a written unconditional promise to pay on demand or on a specified date a certain sum of money, the debt is not convertible, directly or indirectly, into stock, and the interest rate and the interest payment dates of the debt are not contingent on profits, the borrower’s discretion, or similar factors. Additionally, no more than 5% of the value of our assets (other than government securities and qualified real estate assets) can consist of the securities of any one issuerissuer, and for taxable years ended on or before December 31, 2025, no more than 20% of the value of our assets may be represented by securities of one or more TRSs. For taxable years beginning after December 31, 2025, no more than 25% of the value of our assets may be represented by securities of one or more TRSs. If we fail to comply with these requirements at the end of any calendar quarter, we must dispose of a portion of our assets within 30 days after the end of such calendar quarter (or within 6 months if certain requirements are met) or qualify for certain statutory relief provisions, in order to avoid losing our REIT qualification and suffering adverse tax consequences. In order to satisfy these requirements and maintain our qualification as a REIT, we may be forced to liquidate assets from our portfolio or not make otherwise attractive investments. These actions could have the effect of reducing our income and amounts available for distribution to our stockholders.

In addition to any potential withholding tax on ordinary dividends, a non-U.S. holder other than a “qualified shareholder” or a “qualified foreign pension fund,” as each is defined for purposes of the Code, that disposes of a “United States real property interest” (“USRPI”) (which includes shares of stock of a U.S. corporation whose assets consist principally of USRPIs), is generally subject to U.S. federal income tax under the Foreign Investment in Real Property Tax Act of 1980, as amended (“FIRPTA”), on the gain from such disposition. FIRPTA gains must be reported on U.S. federal income tax returns and are taxable at regular U.S. federal income tax rates. Such tax does not apply, however, to the gain on disposition of stock in a REIT that is “domestically controlled.” Generally, a REIT is domestically controlled if less than 50% of its stock, by value, has been owned directly or indirectly by non-U.S. persons during a continuous five-year period ending on the date of disposition or, if shorter, during the entire period of the REIT’s existence. We cannot assure our stockholders that we will qualify as or that we will remain a domestically controlled REIT. Final Treasury regulations effective April 25, 2024 (the “Final Regulations”) modify the existing prior tax guidance relating to the manner in which we determine whether we are a domestically controlled REIT. These regulations provide a look through rule for our stockholders that are non-publicly traded partnerships, non-public REITs, non-public regulated investment companies or domestic C corporations owned more than 50% or more directly or indirectly by foreign persons (“foreign-controlled domestic corporations”) treat “qualified foreign pension funds” as foreign persons. The look-through rule in the Final Regulations applicable to foreign-controlled domestic corporations will not apply to a REIT for a period of up to ten years if the REIT is able to satisfy certain requirements during that time, including not undergoing a significant change in its ownership and not acquiring a significant amount of new U.S. real property interests, in each case since April 24, 2024, the date the Final Regulations were issued. If a REIT fails to satisfy such requirements during the ten-year period, the look-through rule in the Final Regulations applicable to foreign-controlled domestic corporations will apply to such REIT beginning on the day immediately following the date of such failure. While we cannot predict when we will commence being subject to such look-through rule in the Final Regulations, we may not be able to satisfy the applicable requirements for the duration of the ten-year period. Prospective investors are urged to consult with their tax advisors regarding the application and impact of these rules.

Even if we are domestically controlled, aA non-U.S. holder, other than a “qualified shareholder” or a “qualified foreign pension fund” that receives a distribution from a REIT attributable to gains from the disposition of a USRPI as described above, including in connection with a repurchase of our common stock, is generally subject to U.S. federal income tax under FIRPTA to the extent such distribution is attributable to gains from such disposition, regardless of whether the difference between the fair market value and the tax basis of the USRPI giving rise to such gains is attributable to periods prior to or during such non-U.S. holder’s ownership of our common stock unless the relevant class of stock is regularly traded on an established securities market in the United States and such non-U.S. holder did not own more than 10% of such class at any time during the one-year period ending on the date of such distribution. In addition, a repurchase of our common stock, to the extent not treated as a sale or exchange, may be subject to withholding as an ordinary dividend.

Rules enacted as part of the Tax Cuts and Jobs Act may limit ourOur ability (and the ability of entities that are not treated as disregarded entities for U.S. federal income tax purposes and in which we hold an interest) to deduct interest expense.expense may be limited under the Code. The deduction for business interest expense is limited to the amount of the taxpayer’s business interest income plus 30% of the taxpayer’s “adjusted taxable income” unless the taxpayer’s gross receipts do not exceed $25 million per year during the applicable testing period or the taxpayer qualifies to elect and elects to be treated as an “electing real property trade or business.” A taxpayer’s adjusted taxable income will start with its taxable income and add back items of non-business income and expense, business interest income and business interest expense, net operating losses, and any deductions for “qualified business income.income,” and any deductions for depreciation, amortization, or depletion. A taxpayer that is exempt from the interest expense limitations as an electing real property trade or business is ineligible for certain expensing benefits and is subject to less favorable depreciation rules for real property. The rules for business interest expense will apply to us and at the level of each entity in which or through which we invest that is not a disregarded entity for U.S. federal income tax purposes. To the extent that our interest expense is not deductible, our taxable income will be increased, as will our REIT distribution requirements and the amounts we need to distribute to avoid incurring income and excise taxes.

Currently, the maximum tax rate applicable to qualified dividend income payable to certain non-corporate U.S. stockholders, including individuals, is 20% (excluding the 3.8% net investment income tax). Dividends payable by REITs, however, generally are not eligible for the reduced rates. REIT dividends that are not designated as qualified dividend income or capital gain dividends are taxable as ordinary income. Although this does not adversely affect the taxation of REITs or dividends payable by REITs, the more favorable rates applicable to regular corporate qualified dividend income could cause certain non-corporate investors to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends. However, under the Tax Cuts and Jobs Act, for taxable years beginning before January 1, 2026, non-corporate U.S. taxpayers may be entitled to claim a deduction in determining their taxable income of up to 20% of qualified REIT dividends (which are dividends other than capital gain dividends and qualified dividend income). Such non-corporate U.S. taxpayers are urged to consult with their tax advisor regarding the effect of this change on their effective tax rate with respect to REIT dividends.

NoFor taxable years ended on or before December 31, 2025, no more than 20% of the value of a REIT’s total assets may consist of stock or securities of one or more TRSs. For taxable years beginning after December 31, 2025, that percentage limit is increased from 20% to 25%. This requirement limits the extent to which we can conduct our activities through TRSs. The values of some of our assets, including assets that we hold through TRSs, may not be subject to precise determination, and values are subject to change in the future. In addition, as a REIT, we must pay a 100% penalty tax on IRS adjustments to certain payments that we made or receive if the economic arrangements between us and any of our TRSs are not comparable to similar arrangements between unrelated parties. We intend to structure transactions with any TRS on terms that we believe are arm’s length to avoid incurring the 100% excise tax described above:; however, the IRS may successfully assert that the economic arrangements of any of our intercompany transactions are not comparable to similar arrangements between unrelated parties.

On December 27, 2017, we commenced our initial public offering of up to $5.0 billion in shares of our common stock. On June 2, 2021, our initial public offering terminated and we commenced our follow-on public offering of up to $10.0 billion in shares of common stock. On August 10, 2022, the follow-on public offering terminated and we commenced our third public offering of up to $18.0 billion in shares of common stock. On February 4, 2026, our third public offering terminated, and we commenced our fourth public offering of up to $10.0 billion in shares of common stock, consisting of up to $16.0$9.5 billion in shares in our primary offering and up to $2.0$0.5 billion in shares pursuant to our distribution reinvestment plan. We intend to continue selling shares in our thirdfourth public offering on a monthly basis.

Business Outlook

Sold seven43 industrial properties, 13 multifamily properties, two hotelhospitality properties, one net-leaseretail property, and 8355 single-family rental units for total net proceeds of $204.9approximately million$0.3 billion during the year ended December 31, 2024.2025.

Includes a 100% interest in a subsidiary with 2419 single-family rental units and a 95% interest in a consolidated joint venture with 909859 single-family rental units. These are excluded from the number of consolidated properties count.

Includes 0.7approximately 2.3 million sq. ft. across our self-storage, medical office and retail propertiesproperties, and 431150 keys at our consolidated hospitality properties.property and 878 single-family rental units.

For multifamily, single-family rental, and self-storagemultifamily properties, average effective annual base rent per leased unit represents the annualized base rent for the year ended December 31, 2024.2025. The average effective annual base rent includes the effects of rent concessions and abatements and excludes tenant recoveries, straight-line rent, and above-market and below-market lease amortization.

The occupancy rate for our industrial, officemultifamily and self-storagecertain other properties, including single-family rental investments, is defined as the number of leased units divided by the total unit count as of December 31, 2025. The occupancy rate for our industrial and office investments is defined as all leased square footage divided by the total available square footage as of December 31, 2024. The occupancy rate for our multifamily and single-family rental investments is defined as the number of leased units divided by the total unit count as of December 31, 2024.2025. The occupancy rate for our other investmentsinvestments, including self-storage investments, is defined as all leased square footage divided by the total available square footage as well as the trailing 12 month12-month average occupancy for hospitality and extended stay investments for the period ended December 31, 2024.2025.

Held through our DST Program as of December 31, 2024.2025. These properties have been consolidated on our Consolidated Balance Sheets. Any profitsprofit interest due to the third-party investors in the DST Program are reported within non-controlling interests in consolidated joint ventures on our Consolidated Balance Sheets.

Includes 0.7approximately 2.3 million sq. ft. across our self-storage, medical office and retail propertiesproperties, and 25,60225,188 keys at our hospitality and extended stay properties.properties and 878 single-family rental units.

Investment in unconsolidated real estate ventures.venture.

During the year ended December 31, 2025, we recognized a $5.1 million impairment charge on one hospitality property. During the year ended December 31, 2024, we recognized an aggregate $150.4 million of impairment charges related predominantly to 10 multifamily properties and, to a lesser extent, one hospitality property and one industrial property. During the year ended December 31, 2023, we recognized an aggregate of $188.8 million of impairment charges related predominantly to single-family rental properties and, to a lesser extent, two hospitality properties, in the Consolidated Statements of Operations and Comprehensive Loss. During the year ended December 31, 2022, we did not recognize any impairment charges on investments in real estate. The estimated fair values of the impaired properties held as of December 31, 2024, were primarily based on recently completed sales transactions, letters of intent, or non-binding purchase and sales contracts. These inputs are considered Level 2 inputs for purposes of the fair value hierarchy. There are inherent uncertainties in making these estimates such as current and future macroeconomic conditions.

Management reviews ourits investments in unconsolidated joint ventures for impairment each quarter and will record impairment charges when events or circumstances change indicating that a decline in the fair values below the carrying values has occurred and such decline is other-than-temporary. The ultimate realization of the investment in unconsolidated joint ventures is dependent on a number of factors, including the performance of each investment and market conditions.

The symbol “BBBSY” refers to the relevant benchmark rate, which is the three-month Bank Bill Swap Bid Rate (“BBSY”).

During June 2022, we provided financing in the form of a term loan to an unaffiliated entity in connection with its acquisition of Australia’s largest hotel and casino company. The loan is in the amount of AUD 1,377 million and has an initial term of five years, with a two-year extension option. The loan is pre-payable at the option of the borrower at any time. During June 2025, we extended the loan term by three years to June 2030.

The following table details the expiring leases at our industrial, office, and other properties by annualized base rent as of December 31, 20242025 ($ in thousands). The table below excludes our multifamily,multifamily and certain other properties, including single-family rental and self-storage properties, as substantially all leases at such properties expire within 12 months:months.

Rental revenue primarily consists of base rent arising from tenant leases at our multifamily, single-family rental, industrial, office, self-storage, and other properties. Rental revenue is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. During the years ended December 31, 20242025 and 2023,2024, rental revenue was $1.6approximately $1.5 billion and $1.7$1.6 billion, respectively. The decrease in rental revenue was driven by athe lower average investment in real estate balance as a resultimpact of asset dispositions,sales slightlyduring the year ended December 31, 2025, offset by an increase in average rental rates for multifamily and industrial assets for the year ended December 31, 20242025 compared to the year ended December 31, 2023.2024.

Other revenue primarily consists of revenue generated by our hospitality properties. Hospitality revenue consists primarily of room revenue. During the years ended December 31, 20242025 and 2023,2024, other revenue was $38.5$31.3 million and $58.4$38.5 million, respectively, resulting in a year over year decrease of $19.9approximately $7.2 million asdriven aby result of dispositionssales of hospitality properties.assets.

Property operating expenses consist of the costs of ownership and operation of our real estate investments. Examples of property operating expenses include real estate taxes, insurance, utilities and repair and maintenance expenses. Property operating expenses also include general and administrative expenses unrelated to the operations of the properties. During the years ended December 31, 20242025 and 2023,2024, property operating expenses were $715.0approximately $676.6 million and $748.5$715.0 million, respectively. The decrease was driven primarily by athe lower average investment in real estate balance as a resultimpact of asset dispositions,sales offsetduring bythe anyear increaseended inDecember insurance31, and real estate tax expenses.2025.

General and administrative expenses are corporate-level expenses that relate mainly to our compliance and administration costs and consist primarily of legal fees, accounting fees, transfer agent fees and other professional fees. During the year ended December 31, 2024,2025, general and administrative expenses increaseddecreased approximately $1.9$8.0 million compared to the year ended December 31, 20232024 and was primarily driven by ana increasereduction in legal and other professional fees.fee expenses.

Management fees are earned by our Advisor for providing services pursuant to the Advisory Agreement. During the years ended December 31, 20242025 and 2023,2024, management fees were $105.4$87.6 million and $153.4$105.4 million, respectively. The decrease was primarily due to the reduction in our average NAV from December 31, 20232024 to December 31, 2024.2025. The decrease was also driven by the 20%Advisor’s waiver of the20% Advisor’sof its management fee effective in May 2024, thereby reducing management fees from 1.25% of NAV to 1% of NAV, until our share repurchase plan has been reinstated to the monthly repurchase limit of 2% of NAV and quarterly repurchase limit of 5% of NAV.

During the year ended December 31, 2025, we recognized a $5.1 million impairment charge on one hospitality property. During the year ended December 31, 2024, the Companywe recognized an aggregate of $150.4 million of impairment charges related predominantly to 10 multifamily properties and, to a lesser extent, one hospitality and one industrial property. During the year ended December 31, 2023, the Company recognized an aggregate of $188.8 million of impairment charges related primarily to single-family rental properties.

Depreciation and amortization expenses are impacted by the values assigned to buildings, personal property and in-place lease assets as part of the initial purchase price allocation. During the years ended December 31, 20242025 and 2023,2024, depreciation and amortization expenses were $742.2$704.8 million and $811.8$742.2 million, respectively. The decrease in depreciation expense was driven by a lowerreduction averagein investmentinvestments in real estateestate, balancenet as a result of asset dispositionssales during the year ended December 31, 20242025 and throughout the year ended December 31, 2023.2024.

During the years ended December 31, 20242025 and 2023,2024, income from investments in real estate debt was $95.8$74.7 million and $123.1$95.8 million, respectively, which consisted of interest income, realized losses, and unrealized gains/(losses) and realized gains/(losses) resulting from changes in the fair value of our real estate debt investments and related hedges. The decrease was primarily driven by the disposition of our investments in real estate debt securities and the disposition of our GBP-denominated term loan investment.

During the years ended December 31, 20242025 and 2023,2024, interest expense was $641.4$636.1 million and $583.5$641.4 million, respectively, which primarily consisted of interest expense incurred on our mortgage notes, secured credit facilities, unsecuredline revolvingof credit facility and borrowings under our secured financingsfinancing on investments in real estate debt. The increasedecrease was primarily driven by an increasedecrease in borrowings onunder our unsecuredsecured linefinancing ofon credit.investments in real estate debt during the year ended December 31, 2025 compared to the year ended December 31, 2024.

During the years ended December 31, 20242025 and 2023,2024, other expenseexpense, net was ($180.0$241.7) million and ($299.9$180.0) million, respectively. These results were primarily driven by unrealized losses relating to the changes in the fair value of our foreign exchange market forwards of ($85.3) million during the year ended December 31, 2025, compared to unrealized gains of $62.7 million during the year ended December 31, 2024. This was offset by unrealized losses relating to the changes in the fair value of our interest rate caps and swaps of ($175.9) million during the year ended December 31, 2025, compared to unrealized losses of ($221.7) million during the year ended December 31, 2024, compared to unrealized losses of ($332.2) million during the year ended December 31, 2023, relating to the change in the fair value of our interest rate caps and interest rate swaps.2024. The interest rate caps and swaps are used primarily to limit our interest rate payments on certain of our variable rate borrowings.

Refer to Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our AnnualCurrent Report on Form 10-K8-K/A (filed on July 11, 2025) for the year ended December 31, 20232024 for discussion of our consolidated results of operations for the year ended December 31, 20232024 compared to the year ended December 31, 2022,2023, which specific discussion is incorporated herein by reference.

Our primary needs for liquidity and capital resources are to fund our investments, to make distributions to our stockholders, to repurchase shares of our common stock pursuant to our share repurchase plan, to pay our offering and operating expenses and capital expenditures andexpenditures, to pay debt service on the outstanding indebtedness we incur.incur, and to repay principal on outstanding indebtedness as it comes due. Since October 2022, share repurchase requests from our stockholders have exceeded the limits of our share repurchase plan. Our operating expenses include, among other things, fees and expenses related to managing our properties and other investments, the management fee we pay to the Advisor (to the extent the Advisor elects to receive the management fee in cash), the performance participation allocation that the Operating Partnership will pay to the Special Limited Partner (when earned and to the extent that the Special Limited Partner elects to receive the performance participation allocation in cash) and general corporate expenses.

Our cash needs for acquisitions and other investments will be funded primarily from the sale of shares of our common stock and through the assumption or incurrence of debt. For the year ended December 31, 2024, we raised $0.2 billion of gross proceeds in our public offering. In addition, for the year ended December 31, 2024, we have repurchased $1.1 billion in shares of our common stock under our share repurchase plan.

Other potential future sources of capital include secured or unsecured financings from banks or other lenders and proceeds from the sale of assets and investments in real estate-related debt securities.debt. If necessary, we may use financings or other sources of capital in the event of unforeseen significant capital expenditures. From inception through December 31, 2024,2025, our distributions have been entirelyprimarily funded from cash flowflows from operating activities in addition to certain cash flows from interest rate derivatives, classified as cash flows from investing activities. In addition, for the years ended December 31, 2025 and 2024, we have repurchased $0.5 billion and $1.1 billion in shares of our common stock under our share repurchase plan.

The symbol “B” refers to the relevant floating benchmark rates, which includes one-month SOFR, NYFED 30 day30-day SOFR, three-month EURIBOREURIBOR, three-month CIBOR and three-month CIBOR,BBSY, as applicable to each loan.

Excludes a $12.6 million mortgage loan on a property classified as held-for-sale as of December 31, 2024. As of December 31, 2023,2025, there were no properties, and their related mortgage loans,loans secured by our properties, that met the criteria to be classified as held-for-sale.

The repayment of the unsecured line of credit facility is guaranteed by us.

Except as set forth below, there were no material changes during the period covered by this Quarterly Report to the risk factors previously disclosed under Item 1A. of our Annual Report on Form 10-K for the year ended December 31, 2025.2025 and Item 1A. of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

As of MayAugust 11,12, 2026, we had received net proceeds of $14.3 billion from the sale of our common stock through our public offerings. We have contributed the net proceeds from our public offerings to the Operating Partnership in exchange for a corresponding number of Class T, Class S, Class D and Class I units. The Operating Partnership has primarily used the net proceeds to make investments in real estate and real estate debt as further described below under “Portfolio.”

As of MarchJune 31,30, 2026, we have raised approximately $63.5$66.2 million in gross offering proceeds through the DST Program.

WhileIn addition, we wait for revenue growth to return to this sector, we have been very busy over the past 12 months positioning the Company to havecompleted a solidfive-year balanceextension sheet.of Sinceour corporate revolving credit facility and, since the beginning of 2025, we have refinanced approximately $6.1$6.5 billion of property-level mortgage financingdebt, and extendedextending the average remaining term of our property-level debt to roughlyapproximately five years,years while lowering financing spreadsspreads. byCollectively, approximatelythese 12actions basishave points.substantially Thisaddressed longer-termour financingnear-term positionsdebt usmaturities, wellreduced forrefinancing long-termrisk, sustainablelowered performance.leverage and enhanced our financial flexibility.

Declared monthly net distributions totaling $119.5$86.4 million for the three months ended MarchJune 31,30, 2026. The details of the average annualized distribution rates and total returns are shown in the following table:

Refinanced and closed an aggregate of $1.7$168.6 billionmillion in property-level financing.

The following chart outlines the percentage of our assets across investments in real estate and our investment in a real estate loan based on fair value as of MarchJune 31,30, 2026:

The following charts further describe the composition of our investments in real estate and our investment in a real estate loan based on fair value as of MarchJune 31,30, 2026:

The following table provides a summary of our portfolio as of MarchJune 31,30, 2026 ($ in thousands):

The occupancy rate for our multifamily investments is defined as the number of leased units divided by the total unit count as of MarchJune 31,30, 2026. The occupancy rate for our industrial and office investments is defined as all leased square footage divided by the total available square footage as of MarchJune 31,30, 2026.

Based on fair value as of MarchJune 31,30, 2026.

The following table provides a summary of the average effective annual base rents across our portfolio as of MarchJune 31,30, 2026:

For multifamily properties, average effective annual base rent per leased unit represents the annualized base rent for the threesix months ended MarchJune 31,30, 2026. The average effective annual base rent includes the effects of rent concessions and abatements and excludes tenant recoveries, straight-line rent and above-market and below-market lease amortization.

For industrial and office properties, average effective annual base rent represents the annualized base rent per leased square foot for the threesix months ended MarchJune 31,30, 2026. The average effective annual base rent includes the effects of rent concessions and abatements and excludes tenant recoveries, straight-line rent and above-market and below-market lease amortization.

The following table provides information regarding our portfolio of real estate properties as of MarchJune 31,30, 2026:

The occupancy rate for our multifamily and certain other properties, including single-family rental investments, is defined as the number of leased units divided by the total unit count as of MarchJune 31,30, 2026. The occupancy rate for our industrial and office investments is defined as all leased square footage divided by the total available square footage as of MarchJune 31,30, 2026. The occupancy rate for our other investments, including self-storage investments, is defined as all leased square footage divided by the total available square footage as well as the trailing 12 month average occupancy for hospitality and extended stay investments for the period ended MarchJune 31,30, 2026.

Held through our DST Program as of MarchJune 31,30, 2026. These properties have been consolidated on our Condensed Consolidated Balance Sheets. Any profit interest due to the third-party investors in the DST Program are reported within non-controlling interests in consolidated joint ventures on our Condensed Consolidated Balance Sheets.

During the three and six months ended MarchJune 31,30, 2026 and 2025, we did not recognize any impairments on our investments in real estate.

During the three and six months ended MarchJune 31,30, 2026 and 2025, we did not recognize any impairments on our investments in unconsolidated real estate ventures.

The following table details our investment in real estate debt as of MarchJune 31,30, 2026 ($ in thousands):

During June 2022, we provided financing in the form of a term loan to an unaffiliated entity in connection with its acquisition of Australia’s largest hotel and casino company. The loan is in the amount of AUD 1,377 million and has an initial term of five years, with a two-year extension option. The loan is pre-payable at the option of the borrower at any time. During June 2025, we extended the loan term by three years to June 2030. During the three and six months ended June 30, 2026, we received principal repayments of $2.4 million on our investment in real estate debt.

The following table details the expiring leases at our industrial, office and other properties by annualized base rent as of MarchJune 31,30, 2026 ($ in thousands). The table below excludes our multifamily and certain other properties, including single-family rental and self-storage properties, as substantially all leases at such properties expire within 12 months.

Certain operating leases contain early termination options that require advance notification and may include payment of penalty, which, in most cases, is substantial enough to be deemed economically disadvantageous by a tenant to exercise. As of MarchJune 31,30, 2026, approximately 1% of our industrial portfolio square footage and approximately 15% of our office portfolio square footage is subject to early termination provisions. Approximately 52%64% of our office portfolio that is subject to these early termination provisions havehas early termination dates prior to January 1, 2030.

During the threesix months ended MarchJune 31,30, 2026, thereone were no tenants whotenant exercised early lease termination provisionsprovisions, impacting 2,637 square feet across our industrial and office properties, which represents an insignificant percentage of our combined square footage owned across our industrial and office properties. During the year ended December 31, 2025, three tenants exercised early lease termination provisions, impacting 34,202 square feet across our industrial and office properties, which represents approximately 0.3% of our combined square footage owned across our industrial and office properties.

Rental revenue primarily consists of base rent arising from tenant leases at our multifamily, industrial, office and other properties. Rental revenue is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. During the three months ended MarchJune 31,30, 2026 and 2025, rental revenue was $385.7$390.0 million and $394.1$386.8 million, respectively. The decreaseincrease in rental revenue was driven by thean impactincrease ofin assetaverage salesrental duringrates for multifamily and industrial assets for the yearthree months ended DecemberJune 31,30, 2026 compared to the three months ended June 30, 2025.

Other revenue primarily consists of revenue generated by our hospitality properties. Hospitality revenue consists primarily of room revenue. During the three months ended MarchJune 31,30, 2026 and 2025, other revenue was $6.6$7.9 million and $6.2$7.7 million, respectively, resulting in a year over year increase of approximately $0.4$0.2 million, driven by an increase in other revenue at our multifamily properties, partially offset by a reduction in other revenue at our hospitality properties due to an asset sale during the three months ended March 31, 2025.properties.

Property operating expenses consist of the costs of ownership and operation of our real estate investments. Examples of property operating expenses include real estate taxes, insurance, utilities and repair and maintenance expenses. Property operating expenses also include general and administrative expenses unrelated to the operations of the properties. During the three months ended MarchJune 31,30, 2026 and 2025, property operating expenses were $160.1$165.1 million and $171.1$166.9 million, respectively. The decrease was driven primarily by the impact of asset sales during the year ended December 31, 2025.

General and administrative expenses are corporate-level expenses that relate mainly to our compliance and administration costs and consist primarily of legal fees, accounting fees, transfer agent fees and other professional fees. During the three months ended MarchJune 31,30, 2026, general and administrative expenses increased $0.6 million compared to the three months ended MarchJune 31,30, 2025 primarily due to an increase in legal and other professional fee expenses associated with property-level refinancings.

Management fees are earned by our Advisor for providing services pursuant to the Advisory Agreement. During the three months ended MarchJune 31,30, 2026 and 2025, management fees were $20.4$20.1 million and $22.8$22.2 million, respectively. The decrease was primarily driven by the reduction in our average NAV from MarchJune 31,30, 2025 to MarchJune 31,30, 2026.

Performance participation allocation relates to allocations from the Operating Partnership to the Special Limited Partner based on the total return of the Operating Partnership. Total return is defined as distributions paid or accrued plus the change in NAV. The performance participation allocation is measured annually and any amount earned by the Special Limited Partner becomes payable as of December 31 of the applicable year. During the three months ended MarchJune 31,30, 2026 and 2025, there was no performance participation allocation as the return hurdle was not achieved.

During the three months ended MarchJune 31,30, 2026 and 2025, we did not recognize any impairments on our investments in real estate.

Depreciation and amortization expenses are impacted by the values assigned to buildings, personal property and in-place lease assets as part of the initial purchase price allocation. During the three months ended MarchJune 31,30, 2026 and 2025, depreciation and amortization expenses were $177.6$177.3 million and $172.9$173.7 million, respectively. The increase in depreciation expense was driven by an increase in depreciation expense on our multifamily properties during the three months ended MarchJune 31,30, 2026 compared to the three months ended MarchJune 31,30, 2025.

During the three months ended MarchJune 31,30, 2026 and 2025, loss from unconsolidated real estate ventures was ($2.9) million and ($1.8$4.5) million, respectively, driven by lowerimproved property net operating income on one of our unconsolidated real estate venture investments.

During the three months ended MarchJune 31,30, 2026 and 2025, income from investmentsinvestment in real estate debt, net was $20.1$22.2 million and $19.6$18.5 million, respectively, which consisted of interest income, realized losses, and unrealized gains and losses resulting from changes in the fair value of our real estate debt investments and related hedges. The increase was primarily attributable to an increase in interest income on our one floating-rate term loan investment.

During the three months ended MarchJune 31,30, 2026, we did not sell any investments in real estate. We recorded ($0.1) million of net losses fromof ($1.0) million on the dispositionretirement of onecertain single-familyfurniture, rentalfixtures unit.and equipment in connection with capital improvement activities at certain of our properties. No proceeds were received in connection with these retirements. During the three months ended MarchJune 31,30, 2025, we recorded $9.7$14.1 million of net gains from the disposition of 43 industrial properties, 13 multifamily properties, one hospitalityretail property,property and 1626 single-family rental units.

During the three months ended MarchJune 31,30, 2026 and 2025, interest expense was $172.3$182.8 million and $152.2$150.9 million, respectively, which primarily consisted of interest expense incurred on our mortgage notes, secured credit facilities, line of credit and borrowings under our secured financing on investmentsinvestment in real estate debt. The increase was primarily driven by an increase in interest expense of $17.0$24.9 million on our mortgage notesnotes, an increase in interest expense of $5.5 million on our unsecured line of credit, and an increase in interest expense of $1.8$1.7 million on borrowings under our unsecuredsecured linefinancing ofon creditinvestment in real estate debt during the three months ended MarchJune 31,30, 2026 compared to the three months ended MarchJune 31,30, 2025.

During the three months ended MarchJune 31,30, 2026, the loss on extinguishment of debt was ($2.4$1.8) million as a result of refinancing activities. During the three months ended MarchJune 31,30, 2025 there were no losses on extinguishment of debt recorded.

During the three months ended MarchJune 31,30, 2026 and 2025, other income (expense),expense, net was $13.8($12.6) million and ($86.7$105.3) million, respectively. These results were primarily driven by unrealized gainslosses relating to the changes in the fair value of our interest rate caps and swaps of $28.6($7.5) million during the three months ended MarchJune 31,30, 2026, compared to unrealized losses of ($68.9$48.1) million during the three months ended MarchJune 31,30, 2025. These results were also driven by unrealized gainslosses relating to the changes in the fair value of our foreign exchange market forwards of $12.5($9.0) million during the three months ended MarchJune 31,30, 2026, compared to unrealized losses of ($21.1$74.7) million during the three months ended MarchJune 31,30, 2025. These results were partially offset by realized losses of ($33.0) million relating to the settlement of certain interest rate caps during the three months ended March 31, 2026, compared to $0.6 million of realized gains recognized during the three months ended March 31, 2025. The interest rate caps and swaps are used primarily to limit our interest rate payments on certain of our variable rate borrowings.