Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. senior Avg
|
New words:
aforementioned, Broadstone, category, concentration, custom, enhanced, EPR, Finland, goal, LXP, McLaren, MSCI, NNN, noncompliance, opportunistic, PSU, redesignated, retired, test, transition, unclassified, uncollectible, yield
Removed:
activism, activist, administered, advanced, agenda, al, announced, appeal, attention, attributed, Baltimore, Bingley, Bradford, brand, Bulk, cancelled, cap, capped, captioned, cast, chair, choose, Circuit, collected, committing, complaint, consultant, continuance, continuity, convertible, converting, correct, corrective, costly, count, court, credited, cured, damage, Dec, declare, decreased, defendant, defer, deferral, deficit, delay, delegated, delegation, delivering, delivery, demonstrate, direction, discretion, disrupting, District, diverting, DSCR, enjoin, entitled, experience, exploited, expressed, face, Facilitation, failed, failure, faith, fashion, favor, flexibility, forfeiture, fraction, full, funded, Germany, good, governance, governed, granting, hand, hold, holding, indemnification, indemnify, instability, Interbank, interpreting, investor, lack, lead, Lexington, lieu, LOI, London, maturing, misstating, nominated, nominating, nomination, notice, offer, offered, omitting, Onshore, opposition, optional, owner, perception, permanently, permit, positive, practical, preclude, preliminarily, preliminary, proposed, prospectively, publicly, publishing, purported, putting, realize, Realty, recalculated, recipient, recommended, redeemed, reform, reject, rejecting, relief, renew, replacement, reputation, request, resignation, restatement, restore, retainer, rollover, RSP, RSU, run, scope, serving, shown, solicitation, soliciting, sought, Southern, substantial, suffer, suitable, swept, takeover, targeted, tender, timely, trailing, transact, turn, unable, unenforceable, unregistered, unsolicited, unspecified, violated, void, volatility, voluntary, voting, York
Financial report summary
?Risks
- We may be unable to enter into contracts for and complete property acquisitions on advantageous terms or our property acquisitions may not perform as we expect.
- Our ability to continue implementing our growth strategy depends on our ability to access capital from external sources, and there can be no assurance we will be able to so on favorable terms or at all.
- If we are not able to increase the amount of cash we have available to pay dividends, we may have to reduce dividend payments or identify other financing sources to fund the payment of dividends at their current levels.
- Market and economic challenges experienced by the U.S. and global economies may adversely impact our operating results and financial condition.
- We are subject to additional risks from our international investments.
- Geopolitical instability due to the ongoing military conflict between Russia and Ukraine may further adversely impact the U.S., European and global economies.
- Investments in properties or other real estate investments outside the U.S. subject us to foreign currency risk.
- We are subject to risks associated with proxy contests and other actions of activist stockholders.
- Brexit and other events that create, or give the impression they could create, economic or political instability in Europe could adversely affect us.
- A sale-leaseback transaction may be recharacterized in a tenant’s bankruptcy proceeding.
- If a tenant or lease guarantor declares bankruptcy or becomes insolvent, we may be unable to collect balances due under relevant leases.
- The credit profile of our tenants may create a higher risk of lease defaults and therefore lower revenues.
- Long-term leases may result in income lower than short term leases.
- Properties may have vacancies for a significant period.
- We generally obtain only limited warranties when we purchase a property and would therefore have only limited recourse if our due diligence did not identify any issues that lower the value of our property.
- We may be unable to secure funds for future tenant improvements or capital needs, which could impact the value of the applicable property or our ability to lease the applicable property on favorable terms.
- We may be unable to sell a property when we desire to do so.
- We have acquired or financed, and may continue to acquire or finance, properties with lock-out provisions which may prohibit us from selling a property, or may require us to maintain specified debt levels for a period of years on some properties.
- Rising expenses could reduce cash flow.
- Real estate-related taxes may increase and if these increases are not passed on to tenants, our cash flow will be reduced.
- Our properties and our tenants may face competition that may affect tenants’ ability to pay rent.
- We may incur significant costs to comply with governmental laws and regulations, including those related to environmental matters.
- Damage from catastrophic weather and other natural events and climate change could result in losses to us.
- If we sell properties by providing financing to purchasers, we will be exposed to defaults by the purchasers.
- We may incur a material amount of costs associated with complying with the Americans with Disabilities Act.
- Actual or threatened terrorist attacks and other acts of violence, civilian unrest, or war may affect the markets in which we operate our business and our profitability.
- Inflation and continuing increases in the inflation rate may have an adverse effect on our investments and results of operations.
- We depend on the Advisor and Property Manager to provide us with executive officers, key personnel and all services required for us to conduct our operations and our operating performance may be impacted by any adverse changes in the financial health or reputation of the Advisor.
- We may terminate the agreements with our Advisor and Property Manager in only limited circumstances, and may have to pay a termination fee in some cases.
- Our business and operations could suffer if our Advisor or any other party that provides us with services essential to our operations experiences system failures or cyber incidents or a deficiency in cybersecurity.
- We may acquire or originate commercial real estate debt or invest in commercial real estate-related securities which would expose us to additional risks.
- We may be unable to service our indebtedness.
- Changes in the debt markets could have a material adverse impact on our earnings and financial condition.
- The Advisor faces conflicts of interest relating to the purchase and leasing of properties, and these conflicts may not be resolved in our favor, which could adversely affect our investment opportunities.
- The Advisor faces conflicts of interest relating to joint ventures, which could result in a disproportionate benefit to the other venture partners at our expense.
- Our officers and directors face conflicts of interest related to the positions they hold with related parties.
- The Advisor faces conflicts of interest relating to the structure of the compensation it may receive.
- We depend on our OP and its subsidiaries for cash flow and are structurally subordinated in right of payment to the obligations of our OP and its subsidiaries.
- We may issue additional equity securities in the future thereby diluting the holdings of existing stockholders.
- The limit on the number of shares a person may own may discourage a third party from acquiring us in a manner that might result in a premium price to our stockholders.
- The terms of our Series A Preferred Stock and Series B Preferred Stock, and the terms other preferred stock we may issue, may discourage a third party from acquiring us in a manner that might result in a premium price to our stockholders.
- We have a classified board, which may discourage a third party from acquiring us in a manner that might result in a premium price to our stockholders.
- The stockholder rights plan adopted by our board of directors may discourage a third party from acquiring us in a manner that might result in a premium price to our stockholders.
- Maryland law prohibits certain business combinations, which may make it more difficult for us to be acquired and may discourage a third party from acquiring us in a manner that might result in a premium price to our stockholders.
- Our bylaws designate the Circuit Court for Baltimore City, Maryland as the sole and exclusive forum for certain actions and proceedings that may be initiated by our stockholders.
- Maryland law limits the ability of a third-party to buy a large stake in us and exercise voting power in electing directors, which may discourage a third party from acquiring us in a manner that might result in a premium price to our stockholders.
- Certain provisions in our bylaws and agreements may deter, delay or prevent a change in our control.
- Our failure to remain qualified as a REIT would subject us to U.S. federal income tax and potentially state and local tax.
- To qualify as a REIT, we must meet annual distribution requirements, which may force us to forgo otherwise attractive opportunities or borrow funds during unfavorable market conditions. This could delay or hinder our ability to meet our investment objectives and reduce our stockholders’ overall return.
- Recharacterization of sale-leaseback transactions may cause us to lose our REIT status.
- Certain of our business activities are potentially subject to the prohibited transaction tax.
- TRSs are subject to corporate-level taxes and our dealings with TRSs may be subject to a 100% excise tax.
- If the OP failed to qualify as a partnership or is not otherwise disregarded for U.S. federal income tax purposes, we would cease to qualify as a REIT.
- We may choose to make distributions in shares of our Common Stock, in which case our stockholders may be required to pay U.S. federal income taxes in excess of the cash portion of distributions they receive.
- The taxation of distributions can be complex; however, distributions to stockholders that are treated as dividends for U.S. federal income tax purposes generally will be taxable as ordinary income, which may reduce our stockholders’ after-tax anticipated return from an investment in us.
- Complying with REIT requirements may limit our ability to hedge our liabilities effectively and may cause us to incur tax liabilities.
- Complying with REIT requirements may force us to forgo or liquidate otherwise attractive investment opportunities.
- The ability of our board of directors to revoke our REIT qualification without stockholder approval may subject us to U.S. federal income tax and reduce distributions to our stockholders.
- We may be subject to adverse legislative or regulatory tax changes that could increase our tax liability, reduce our operating flexibility and reduce the market price of shares of our stock.
- The share ownership restrictions for REITs and the 9.8% share ownership limit in our charter may inhibit market activity in shares of our stock and restrict our business combination opportunities.
- Non-U.S. stockholders will be subject to U.S. federal withholding tax and may be subject to U.S. federal income tax on dividends and other distributions received from us and upon the disposition of shares of our stock.
- Potential characterization of dividends and other distributions or gain on sale may be treated as unrelated business taxable income to tax-exempt investors.
Management Discussion
- We operates in four reportable segments consistent with our current management internal financial reporting purposes: (1) Industrial & Distribution, (2) Multi-Tenant Retail, (3) Single-Tenant Retail and (4) Office (see Note 15 — Segment Reporting to our consolidated financial statements included in this Quarterly Report on Form 10-Q, for additional details on our reportable segments).
- In our Industrial & Distribution, Single-Tenant Retail and Office segments, we own, manage and lease single-tenant properties where in addition to base rent, our tenants are required to pay for their property operating expenses or reimburse us for property operating expenses that we incur (primarily property insurance and real estate taxes). However, some limited property operating expenses that are not the responsibility of the tenant are absorbed by us. The main exceptions are properties leased to the Government Services Administration, which do not require the tenant to reimburse the costs.
- In our Multi-Tenant Retail segment, we own, manage and lease multi-tenant properties where we generally pay for the property operating expenses for those properties and most of our tenants are required to pay their pro rata share of property operating expenses.