# EDGAR Filing Document

**Accession Number:** 0001966394
**File Stem:** 0000950170-25-108035
**Filing Date:** 2025-8
**Character Count:** 436547
**Document Hash:** 20dcb248be6d0582a80d9adb3977325e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-25-108035.hdr.sgml**: 20250813

**ACCESSION NUMBER**: 0000950170-25-108035

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 87

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250813

**DATE AS OF CHANGE**: 20250813

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Fortress Net Lease REIT
- **CENTRAL INDEX KEY:** 0001966394
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 921937121
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56632
- **FILM NUMBER:** 251211713

**BUSINESS ADDRESS:**
- **STREET 1:** 1345 AVENUE OF THE AMERICAS
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10105
- **BUSINESS PHONE:** 212-798-6100

**MAIL ADDRESS:**
- **STREET 1:** 1345 AVENUE OF THE AMERICAS
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10105

?xml version='1.0' encoding='ASCII'? 10-Q

[**<u>**Table of Contents**</u>**](#toc_page)

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM** 10-Q

**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended** **June 30,** 2025

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ___ to _______** 

**Commission File Number** 000-56536

Fortress Net Lease REIT

(Exact name of registrant as specified in its charter)

<u>Maryland</u>   <u>92-1937121</u> <br> (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)

---

| | |
|:---|:---|
| 1345 Avenue of the Americas<br>New York**,** NY | 10105 |
| (Address of principal executive offices) | (Zip Code) |

---

**Registrant's telephone number, including area code: (**212**)** 798-6100

**Not Applicable**

(Former name, former address and former fiscal year, if changed since last report)

**Securities registered pursuant to Section 12(b) of the Act: None**

---

| | | |
|:---|:---|:---|
| **Title of each class:** | **Trading Symbol(s):** | **Name of each exchange on which** <br>**registered:** |
| N/A | N/A | N/A |

---

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 13, 2025, the issuer had the following shares outstanding: 6,907,992 Class I shares, 13,192,268 Class F-S shares, 61,472,834 Class F-I shares, 37,453,432 Class D-S shares and 2,492,405 Class E shares.

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**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This quarterly report on Form 10-Q (this "Form 10-Q") contains forward-looking statements, which relate to future events or the future performance or financial condition of Fortress Net Lease REIT (the "Company," "we," "us," or "our"). We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Some of the statements in this Form 10-Q constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this Form 10-Q may include statements as to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our future operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our business prospects and the prospects of the assets in which we may invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of the investments that we expect to make;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to raise sufficient capital to execute our investment strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to source adequate investment opportunities to efficiently deploy capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our current and expected financing arrangements and investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the effect of global and national economic and market conditions generally upon our operating results, including, but not limited to, changes with respect to inflation, interest rate changes and supply chain disruptions, and changes in government rules, regulations and fiscal policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the adequacy of our cash resources, financing sources and working capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing and amount of cash flows, distributions and dividends, if any, from our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our contractual arrangements and relationships with third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•actual and potential conflicts of interest with FNLR Management LLC, a Delaware limited liability company (the "Adviser"), or any of its affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the dependence of our future success on the general economy and its effect on the assets in which we may invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our use of financial leverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability of the Adviser to locate suitable investments for us and to monitor and administer our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability of the Adviser or its affiliates to attract and retain highly talented professionals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to structure investments in a tax-efficient manner and the effect of changes to tax legislation and our tax position; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our tax status and the tax status and attributes of entities and assets in which we may invest.

In addition, forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "anticipate," "target," "project," "estimate," "intend," "continue" or "believe" or the negatives thereof or other variations thereon or comparable terminology, although not all forward-looking statements include these words. The forward-looking statements contained in this Form 10-Q involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in "Item 1A. Risk Factors," "Item 2. Financial Information—Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "Annual Report") filed with the Securities and Exchange Commission (the "SEC") on March 28, 2025 and Part II. Item 1A. "Risk Factors" in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, filed with the SEC on May 13, 2025. Other factors that could cause our actual results to differ materially include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in the economy, particularly those affecting the real estate industry;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with possible disruption in our operations or the economy generally due to terrorism, natural disasters, epidemics or other events having a broad impact on the economy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•investing in commercial real estate assets involves certain risks, including but not limited to: tenants' inability to pay rent; increases in interest rates and lack of availability of financing; tenant turnover and vacancies; and changes in supply of or demand for similar properties in a given market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•adverse conditions in the areas where our investments or the properties underlying such investments are and may be located and local real estate conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•limitations on our business and our ability to satisfy requirements to maintain our exclusion from registration under the Investment Company Act of 1940, as amended, or to maintain our qualification as a real estate investment trust (a "REIT"), for U.S. federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•certain economic events may cause our shareholders to request that we repurchase their shares, and if we decide to satisfy any or all of such requests, our cash flow and our results of operations and financial condition could be materially adversely affected. Further, our board of trustees may make exceptions to, modify or suspend our share repurchase plan (including to make exceptions to the repurchase limitations or purchase fewer shares than such repurchase limitations) if it deems such action to be in our best interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•distributions are not guaranteed and may be funded from sources other than cash flow from operations, including, without limitation, borrowings, offering proceeds (including from sales of our shares or units of our Operating Partnership (as defined below)), and the sale of our assets, and we have no limits on the amounts we may fund from such sources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the purchase and repurchase prices for our shares are generally based on our prior month's net asset value ("NAV") and are not based on any public trading market. The Adviser will value our properties monthly, based on current material market data and other information deemed relevant, subject to the review and confirmation for reasonableness by our independent valuation advisor. The valuation of properties is inherently subjective and our NAV may not accurately reflect the actual price at which our properties could be liquidated on any given day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•future changes in laws or regulations and conditions in our operating areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our limited opportunities to increase rents under long-term leases with tenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to raise additional funds to enable us to make additional investments and diversify the risk profile of our portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to capitalize on potential investment opportunities, or identify and purchase suitable properties on attractive terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to integrate newly acquired investments into our existing portfolio or otherwise effectively manage our assets or growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to accurately identify or adequately evaluate potential risks in volatile investing environments with limited market liquidity or price transparency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of macroeconomic and/or microeconomic developments on our tenants and potential tenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with the construction and renovation of our properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to adequately maintain properties in accordance with the terms of the applicable leases or agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the advent of any future epidemics, pandemics, or any other public health crises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with the termination or expiration of leases and tenant defaults, which may be further exacerbated in the case whereby a single tenant is the counterparty to more than a single property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with our use of single master leases and the enforceability of any such master leases under applicable law and/or in bankruptcy proceedings;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with investing outside of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the incurrence of contingent liabilities as a result of our investments, including our assumption of default risk or other third-party risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our use of financing arrangements, including seller financing, secured and unsecured leveraged and other one-off financing solutions, could subject us to financial covenants and other covenants that could restrict our operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to forecast correlations between the value of our portfolio and the direction of exchange rates, interest rates and the price of securities in order to effectively or appropriately mitigate risks associated with our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with our hedging program, including our use of options and forward trading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to accurately predict the pre-determined fixed repurchase price vis-à-vis the fair value of a property as of a future date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•certain risks associated with limitations on our remedies under bankruptcy laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our limited rights and liquidity associated with our investments in non-controlling equity positions and other real-estate related interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•system failures and cybersecurity breaches;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•substantial compliance costs that may be required to meet the constantly evolving legal and regulatory landscape for data protection and privacy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•competition in our markets, which may prevent our ability to increase the occupancy and rental rates of our properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•potential misconduct and unauthorized conduct from third-party providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•substantial capital expenditures that may be required to comply with regulations and/or to obtain necessary permits and licenses to invest in certain properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to maintain our qualification as a REIT requires us to annually distribute at least 90% of our taxable income, and therefore, we may not be able to fund future capital needs, including financing for acquisitions, from our operating cash flow, and may need to rely on third-party sources for capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our properties and properties underlying our investments may have design, construction or other defects or problems that require unforeseen capital expenditures, special repair or maintenance expenses, or the payment of damages to third parties, which may also affect their valuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•compliance with state and local laws, statutes, regulations and ordinances relating to pollution, the protection of the environment and human health and safety;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to obtain insurance for our properties at competitive market rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any limitations on our recourse under purchase and sale agreements to acquire properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with joint ventures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with litigation or threatened litigation for damages that occur on, or liabilities derived from, the acquisition, ownership and disposition of our properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•risks associated with our relationship with Fortress Investment Group LLC, a Delaware limited liability company ("Fortress"), and the Adviser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes to United States federal income tax laws.

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions

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could also be inaccurate. In light of these and other uncertainties, the inclusion of a forward-looking statement in this Form 10-Q should not be regarded as a representation by us that our plans and objectives will be achieved.

You should read this Form 10-Q and the documents that we reference herein and have filed as exhibits hereto with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this Form 10-Q. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this Form 10-Q, whether as a result of any new information, future events or otherwise.

For more information regarding these and other risks and uncertainties that we face, see the section entitled "Item 1A. Risk Factors" in our Annual Report, Part II. Item 1A. "Risk Factors" in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, filed with the SEC on May 13, 2025 and any such updated factors included in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document (or our other filings).

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| [**<u>PART I - FINANCIAL INFORMATION</u>**](#part_i_financial_information) | [**<u>PART I - FINANCIAL INFORMATION</u>**](#part_i_financial_information) | **1** |
|  | [<u>ITEM 1. FINANCIAL STATEMENTS</u>](#item_1_financial_statements) | 1 |
|  | [<u>Condensed Consolidated Financial Statements (Unaudited):</u>](#item_1_financial_statements) | 1 |
|  | [<u>Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024</u>](#condensed_consolidated_balance_sheets) | 1 |
|  | [<u>Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024</u>](#condensed_statements_of_operations) | 2 |
|  | [<u>Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024</u>](#statements_of_comprehensive_income) | 3 |
|  | [<u>Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2025 and 2024</u>](#consolidated_statements_changes_equity) | 4 |
|  | [<u>Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024</u>](#consolidated_statements_of_cash_flows) | 8 |
|  | [<u>Notes to Condensed Consolidated Financial Statements (Unaudited)</u>](#notes_condensed_consolidated_financia) | 9 |
|  | [<u>ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</u>](#mda) | 29 |
|  | [<u>ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.</u>](#item_3) | 43 |
|  | [<u>ITEM 4. CONTROLS AND PROCEDURES</u>](#item_4) | 45 |
| [**<u>PART II - OTHER INFORMATION</u>**](#part_ii) | [**<u>PART II - OTHER INFORMATION</u>**](#part_ii) | **46** |
|  | [<u>ITEM 1. LEGAL PROCEEDINGS</u>](#item_1_legal) | 46 |
|  | [<u>ITEM 1A. RISK FACTORS</u>](#item_1a_risk_factors) | 46 |
|  | [<u>ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</u>](#item_2_unregistered_sales) | 47 |
|  | [<u>ITEM 3. DEFAULTS UPON SENIOR SECURITIES.</u>](#item_3_defaults_upon_se) | 48 |
|  | [<u>ITEM 4. MINE SAFETY DISCLOSURES</u>](#item_4_mine_safety_disclo) | 48 |
|  | [<u>ITEM 5. OTHER INFORMATION</u>](#item_5_other_information) | 48 |
|  | [<u>ITEM 6. EXHIBITS</u>](#item_6_exhibits) | 49 |
| [**<u>SIGNATURES</u>**](#signatures) | [**<u>SIGNATURES</u>**](#signatures) | **50** |

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**PART I - FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS**

**Fortress Net Lease REIT** 

**Condensed Consolidated Balance Sheets (Unaudited)** 

**(in thousands, except per share data)**

---

| | | |
|:---|:---|:---|
| **Assets** | **June 30, 2025** | **December 31, 2024** |
| Investments in real estate, net | $1572287 | $1143748 |
| Intangible assets, net | 315607 | 207574 |
| Cash and cash equivalents | 5509 | 127225 |
| Restricted cash | 45810 | 87737 |
| Other assets | 42482 | 22237 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $1981695 | $1588521 |
| **Liabilities and Equity** |  |  |
| **Liabilities** |  |  |
| Subscriptions received in advance | 41689 | 80573 |
| Due to affiliate | 28143 | 17868 |
| Revolving credit facility | 622000 | 562500 |
| Term loan, net | 180897 | 121154 |
| Distribution payable | 6770 | 4260 |
| Other liabilities | 14463 | 26361 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | $893962 | 812716 |
| Commitments and contingencies (Note 11) |  |  |
| Redeemable common stock (Note 8) | 26062 | 5479 |
| Redeemable non-controlling interests (Note 8) | 4257 |  |
| **Equity** |  |  |
| Common stock - Class I shares, $0.01 par value per share, 5,506 and 0 shares <br> issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 54 |  |
| Common stock - Class F-S shares, $0.01 par value per share, 10,164 and 2,988<br> shares issued and outstanding as of June 30, 2025 and December 31, 2024,<br> respectively | 102 | 30 |
| Common stock - Class F-I shares, $0.01 par value per share, 58,645 and 40,463<br> shares issued and outstanding as of June 30, 2025 and December 31, 2024,<br> respectively | 588 | 405 |
| Common stock - Class D-S shares, $0.01 par value per share, 37,323 and 35,613<br> shares issued and outstanding as of June 30, 2025 and December 31, 2024,<br> respectively | 372 | 355 |
| Common stock - Class D-X shares, $0.01 par value per share, 0 and 1,347<br> shares issued and outstanding as of June 30, 2025 and December 31, 2024,<br> respectively |  | 13 |
| Additional paid-in capital | 1107136 | 796992 |
| Accumulated other comprehensive income (loss) | (33) | 948 |
| Accumulated deficit | (50805) | (28417) |
| **Total equity** | 1057414 | 770326 |
| **Total liabilities and equity** | $1981695 | $1588521 |

---

See accompanying notes to the condensed consolidated financial statements.

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**Fortress Net Lease REIT**

**Condensed Consolidated Statements of Operations (Unaudited)**

**(in thousands, except per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| **Revenue** |  |  |  |  |
| Rental revenue | $39356 | $7473 | $71953 | $10150 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total revenue** | 39356 | 7473 | 71953 | 10150 |
| **Expenses** |  |  |  |  |
| Organizational costs |  | 204 |  | 1957 |
| General and administrative | 2837 | 1994 | 6460 | 3055 |
| Management fee | 2827 | 357 | 5173 | 357 |
| Performance participation allocation | 1855 | 154 | 3143 | 154 |
| Depreciation and amortization | 15438 | 2548 | 26400 | 3350 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total expenses** | 22957 | 5257 | 41176 | 8873 |
| **Other income (expense)** |  |  |  |  |
| Interest income | 452 | 1630 | 618 | 4025 |
| Interest expense, net | (10519) |  | (19033) |  |
| &nbsp;&nbsp;**Total other income (expense)** | (10067) | 1630 | (18415) | 4025 |
| **Net income** | $6332 | $3846 | $12362 | $5302 |
| Net income attributable to non-controlling interests | 39 |  | 64 |  |
| **Net income attributable to FNLR stockholders** | $6293 | $3846 | $12298 | $5302 |
| **Earnings per share of common stock - basic<br> and diluted - (Note 12)** | $0.06 | $0.08 | $0.12 | $0.13 |
| **Weighted-average shares of common stock outstanding<br> - basic - (Note 12)** | 109662 | 50803 | 101318 | 42269 |
| **Weighted average number of common shares<br> outstanding - diluted - (Note 12)** | 110031 | 50803 | 101627 | 42269 |

---

See accompanying notes to the condensed consolidated financial statements.

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**Fortress Net Lease REIT**

**Condensed Consolidated Statements of Comprehensive Income (Unaudited)**

**(in thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| Net income | $6332 | $3846 | $12362 | $5302 |
| Other comprehensive loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of interest rate swaps | (430) |  | (986) |  |
| Other comprehensive loss | (430) |  | (986) |  |
| Comprehensive income | 5902 | 3846 | 11376 | 5302 |
| Comprehensive income attributable to non-controlling interests | 36 |  | 59 |  |
| **Comprehensive income attributable to FNLR stockholders** | $5866 | $3846 | $11317 | $5302 |

---

See accompanying notes to the condensed consolidated financial statements.

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**Fortress Net Lease REIT**

**Condensed Consolidated Statements of Changes in Equity (Unaudited)**

**(in thousands)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
|  | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** |  |  |  |  |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class D-S** | **Class D-X** | **Additional <br>Paid-in<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Accumulated<br>Deficit** | **Total <br>Equity** |
| **Balance at March 31, 2025** | $19 | $66 | $513 | $367 | $3 | $960613 | $394 | $(37933) | $924042 |
| Common stock issued | 35 | 35 | 73 |  |  | 142631 |  |  | 142774 |
| Offering costs |  |  |  |  |  | (530) |  |  | (530) |
| Distribution reinvestment |  | 1 | 4 | 2 |  | 7206 |  |  | 7213 |
| Share class exchange |  |  |  | 3 | (3) | (512) |  |  | (512) |
| Common stock redeemed |  |  | (2) |  |  | (2010) |  |  | (2012) |
| Other comprehensive loss (other<br> comprehensive loss of $3 allocated<br> to redeemable NCI) |  |  |  |  |  |  | (427) |  | (427) |
| Net income (net income of $39 allocated<br> to redeemable NCI) |  |  |  |  |  |  |  | 6293 | 6293 |
| Distributions declared on common stock<br> ($0.1937 gross per share) |  |  |  |  |  |  |  | (19165) | (19165) |
| Allocation to redeemable common shares |  |  |  |  |  | (188) |  |  | (188) |
| Allocation to redeemable non-controlling<br> interests |  |  |  |  |  | (74) |  |  | (74) |
| **Balance at June 30, 2025** | $54 | $102 | $588 | $372 | $— | $1107136 | $(33) | $(50805) | $1057414 |

---

See accompanying notes to the condensed consolidated financial statements.

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[**<u>**Table of Contents**</u>**](#toc_page)

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
|  | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** |  |  |  |  |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class F-I X** | **Class B-X** | **Class C** | **Class D-S** | **Class D-X** | **Class E** | **Additional <br>Paid-in<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Accumulated<br>Deficit** | **Total <br>Equity** |
| **Balance at March 31, 2024** | $— | $— | $29 | $30 | $48 | $— | $— | $311 | $2 | $415965 | $— | $(9893) | $406492 |
| Common stock issued |  |  | 82 |  |  |  |  | 41 |  | 122552 |  |  | 122675 |
| Offering costs |  |  |  |  |  |  |  |  |  | (725) |  |  | (725) |
| Distribution reinvestment |  |  |  |  |  |  |  | 1 |  | 2182 |  |  | 2183 |
| Share class exchange |  |  | 37 | 11 | (48) |  | 88 | (88) |  |  |  |  |  |
| Net income |  |  |  |  |  |  |  |  |  |  |  | 3846 | 3846 |
| Distributions declared on<br> common stock ($0.1464<br> gross per share) |  |  |  |  |  |  |  |  |  |  |  | (7446) | (7446) |
| **Balance at June 30, 2024** | $— | $— | $148 | $41 | $— | $— | $88 | $265 | $2 | $539974 | $— | $(13493) | $527025 |

---

See accompanying notes to the condensed consolidated financial statements.

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---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
|  | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** |  |  |  |  |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class D-S** | **Class D-X** | **Additional <br>Paid-in<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Accumulated<br>Deficit** | **Total <br>Equity** |
| **Balance at December 31, 2024** | $— | $30 | $405 | $355 | $13 | $796992 | $948 | $(28417) | $770326 |
| Common stock issued | 54 | 71 | 177 |  |  | 301582 |  |  | 301884 |
| Offering costs |  |  |  |  |  | (815) |  |  | (815) |
| Distribution reinvestment |  | 1 | 8 | 4 |  | 12381 |  |  | 12394 |
| Share class exchange |  |  |  | 13 | (13) | (512) |  |  | (512) |
| Common stock redeemed |  |  | (2) |  |  | (2127) |  |  | (2129) |
| Other comprehensive loss (other comprehensive<br> loss of $5 allocated to redeemable NCI) |  |  |  |  |  |  | (981) |  | (981) |
| Net income (net income of $64 allocated<br> to redeemable NCI) |  |  |  |  |  |  |  | 12298 | 12298 |
| Distributions declared on common stock<br> ($0.3615 gross per share) |  |  |  |  |  |  |  | (34686) | (34686) |
| Allocation to redeemable common shares |  |  |  |  |  | (248) |  |  | (248) |
| Allocation to redeemable non-controlling<br> interests |  |  |  |  |  | (117) |  |  | (117) |
| **Balance at June 30, 2025** | $54 | $102 | $588 | $372 | $— | $1107136 | $(33) | $(50805) | $1057414 |

---

See accompanying notes to the condensed consolidated financial statements.

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---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|  | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** |  |  |  |  |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class F-I X** | **Class B-X** | **Class C** | **Class D-S** | **Class D-X** | **Class E** | **Additional <br>Paid-in<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Accumulated<br>Deficit** | **Total <br>Equity** |
| **Balance at December 31, 2023** | $— | $— | $— | $23 | $21 | $73 | $— | $— | $2 | $115952 | $— | $(6982) | $109089 |
| Common stock issued |  |  | 111 | 7 | 37 | 10 |  | 258 |  | 422315 |  |  | 422738 |
| Offering costs |  |  |  |  |  |  |  |  |  | (1407) |  |  | (1407) |
| Distribution reinvestment |  |  |  |  |  |  |  | 2 |  | 3114 |  |  | 3116 |
| Share class exchange |  |  | 37 | 11 | (58) | (83) | 88 | 5 |  |  |  |  |  |
| Net income |  |  |  |  |  |  |  |  |  |  |  | 5302 | 5302 |
| Distributions declared on<br> common stock ($0.2739<br> gross per share) |  |  |  |  |  |  |  |  |  |  |  | (11813) | (11813) |
| **Balance at June 30, 2024** | $— | $— | $148 | $41 | $— | $— | $88 | $265 | $2 | $539974 | $— | $(13493) | $527025 |

---

See accompanying notes to the condensed consolidated financial statements.

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**Fortress Net Lease REIT**

**Condensed Consolidated Statements of Cash Flows (Unaudited)**

**(in thousands)**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** |
| **Cash flows from operating activities:** |  |  |
| Net income | $12362 | $5302 |
| **Adjustments to reconcile net income to net cash provided by operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Organizational costs |  | 1957 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 26400 | 3350 |
| &nbsp;&nbsp;&nbsp;Straight-line rent adjustment | (14640) | (2746) |
| &nbsp;&nbsp;&nbsp;Management fee | 5173 | 357 |
| &nbsp;&nbsp;&nbsp;Performance participation allocation | 3143 | 154 |
| &nbsp;&nbsp;&nbsp;Other items | 1692 | 861 |
| **Changes in assets and liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Decrease in other assets | 244 | 172 |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in other liabilities | (1497) | 648 |
| **Net cash provided by operating activities** | 32877 | 10055 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Acquisitions of real estate | (541224) | (268065) |
| &nbsp;&nbsp;&nbsp;Capital expenditures and improvements | (34746) | (59392) |
| &nbsp;&nbsp;&nbsp;**Net cash used in investing activities** | (575970) | (327457) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Borrowings under revolving credit facility | 442000 |  |
| &nbsp;&nbsp;&nbsp;Repayment of revolving credit facility | (382500) |  |
| &nbsp;&nbsp;&nbsp;Borrowings under term loan | 60000 |  |
| &nbsp;&nbsp;&nbsp;Payment of deferred financing costs | (3342) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock | 227457 | 299384 |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of redeemable common stock | 22646 |  |
| &nbsp;&nbsp;&nbsp;Offering costs paid | (968) |  |
| &nbsp;&nbsp;&nbsp;Redemptions of common stock | (5808) |  |
| &nbsp;&nbsp;&nbsp;Redemptions of non-controlling interests | (1891) |  |
| &nbsp;&nbsp;&nbsp;Subscriptions received in advance | 41689 | 36883 |
| &nbsp;&nbsp;&nbsp;Payment of distributions to common shareholders | (19729) | (6435) |
| &nbsp;&nbsp;&nbsp;Payment of distributions to non-controlling interests | (104) |  |
| &nbsp;&nbsp;&nbsp;**Net cash provided by financing activities** | 379450 | 329832 |
| &nbsp;&nbsp;&nbsp;**Net change in cash, cash equivalents and restricted cash** | (163643) | 12430 |
| **Cash, cash equivalents and restricted cash, beginning of period** | 214962 | 132404 |
| **Cash, cash equivalents and restricted cash, end of period** | $51319 | $144834 |
| **Reconciliation of cash, cash equivalents and restricted cash to the<br> consolidated balance sheet:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $5509 | $101496 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 45810 | 43338 |
| &nbsp;&nbsp;&nbsp;Total cash, cash equivalents and restricted cash | $51319 | $144834 |
| **Supplemental disclosures:** |  |  |
| &nbsp;&nbsp;&nbsp;Interest paid | $19066 | $— |
| **Non-cash investing and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Changes in accrued capital expenditures | $7665 | $10321 |
| &nbsp;&nbsp;&nbsp;Accrued distributions | $6770 | $2730 |
| &nbsp;&nbsp;&nbsp;Distribution reinvestment | $12447 | $3118 |
| &nbsp;&nbsp;&nbsp;Offering costs due to affiliate | $291 | $1407 |
| &nbsp;&nbsp;&nbsp;Other offering costs payable | $528 | $— |
| &nbsp;&nbsp;&nbsp;Issuance of Class E shares as settlement of the management fee and board of directors compensation | $991 | $162 |
| &nbsp;&nbsp;&nbsp;Issuance of Class A shares as settlement of the management fee and performance participation allocation | $6079 | $— |
| &nbsp;&nbsp;&nbsp;Share class exchange | $14 | $141 |
| &nbsp;&nbsp;&nbsp;Allocation to redeemable common shares | $248 | $— |
| &nbsp;&nbsp;&nbsp;Allocation to redeemable non-controlling interests | $117 | $— |
| &nbsp;&nbsp;&nbsp;Change in fair value of interest rate swap | $(986) | $— |
| &nbsp;&nbsp;&nbsp;Accrued unpaid stockholders servicing fee | $8771 | $— |
| &nbsp;&nbsp;&nbsp;Redemptions payable | $188 | $— |

---

See accompanying notes to the condensed consolidated financial statements.

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**Fortress Net Lease REIT**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

**1.** **Organization and Business Purpose** 

Fortress Net Lease REIT ("FNLR" or the "Company") was formed on January 24, 2023 (the "Date of Formation") as a Maryland statutory trust and has elected to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes commencing with the year ended December 31, 2023. The Company was organized to invest primarily in single-tenant commercial real estate properties subject to long-term net leases with investment grade and other creditworthy tenants or guarantors located in the United States and, to a lesser extent, Canada, Europe or other jurisdictions as the Company sees fit. The Company, through FNLR GP LLC (a wholly owned subsidiary of the Company), is the sole general partner of FNLR OP LP, a Delaware limited partnership ("FNLR OP"), and FNLR SLP LLC (the "Special Limited Partner"), a wholly owned subsidiary of Fortress Investment Group LLC ("Fortress"), owns a special limited partner interest in FNLR OP. Substantially all of the Company's business is conducted through FNLR OP. The Company and FNLR OP are externally managed by FNLR Management LLC (the "Adviser"), an affiliate of Fortress.

On May 1, 2023, the Company initiated the offering of its shares through a continuous private placement offering, under Regulation D of the Securities Act of 1933 (the "Securities Act"), as amended. The Company is authorized to issue an unlimited number of common shares of beneficial interests, par value $0.01 per share, including, but not limited to, common shares classified as Class S, Class D, Class I, Class F-S, Class F-D, Class F-I, Class D-S and Class E. The share classes have different upfront selling commissions, dealer manager fees, ongoing shareholder servicing fees, management fees and performance participation allocation. For the three and six months ended June 30, 2025, the Company had received aggregate proceeds of $175.8 million and $343.4 million, respectively, from the sales of shares of its common stock through the private offering. For the three and six months ended June 30, 2024, the Company had received aggregate proceeds of $124.7 million and $425.7 million, respectively, from the sales of shares of its common stock through the private offering. The purchase price per share for each class of our common shares will vary and will generally equal the Company's prior month's net asset value ("NAV") per share as calculated monthly.

The Company's principal business is the acquisition, ownership and leasing of single tenant properties subject to long-term net leases with creditworthy tenants or guarantors. The principal business and operations are not distinguished by geography or property type for purposes of measuring performance. Accordingly, the Company has only one reportable segment. See Note 2 - Summary of Significant Accounting Policies for additional information on segment reporting. As of June 30, 2025, the Company owned 39 investments in real estate, of which three are subject to build-to-suit leases, and 36 for which the Company executed triple net lease agreements to fully lease the properties. All acquisitions are industrial, retail and office properties located in the United States.

**2.**Summary of Significant Accounting Policies

The Company believes the following significant accounting policies, among others, affect its more significant estimates and assumptions used in the preparation of the condensed consolidated financial statements.

**Principles of Consolidation and Basis of Presentation**

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. All intercompany balances and transactions, if any, have been eliminated in consolidation. Management believes it has made all necessary adjustments, consisting of only normal recurring items, so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 (the "Annual Report"), filed with the U.S. Securities and Exchange Commission (the "SEC") on March 28, 2025.

The Company consolidates all entities in which it has a controlling financial interest through majority ownership or voting rights and variable interest entities whereby the Company is the primary beneficiary. In determining whether the Company has a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, the Company considers whether the entity is a variable interest entity ("VIE") and whether it is the primary beneficiary. The Company is the primary beneficiary of a VIE when it has (i) the power to direct the most significant activities impacting the economic performance of the VIE and (ii) the obligation to absorb losses or receive benefits significant to the VIE.

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FNLR OP is considered to be a VIE. The Company consolidates this entity because it has the ability to direct the most significant activities of the entity such as purchases, dispositions, financings, budgets and overall operating plans and it has the obligation to absorb losses or receive benefits. The Company meets the VIE disclosure exemption criteria, as the Company's interest in FNLR OP is considered a majority voting interest.

**Reclassifications**

Certain amounts in the Company's prior period Condensed Consolidated Statement of Cash Flows included in Other items of $2.7 million for the six months ended June 30, 2024 have been reclassified to Straight-line rent adjustment to conform to the six months ended June 30, 2025 presentation.

**Use of Estimates**

The preparation of condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may ultimately differ materially from those estimates.

**Investments in Real Estate**

In accordance with Accounting Standards Codification ("ASC") 805, *Business Combinations*, the Company determines whether the acquisition of a property qualifies as a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the property acquired does not constitute a business, the Company accounts for the transaction as an asset acquisition. The guidance for business combinations states that when substantially all of the fair value of the gross assets to be acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset or set of assets is not a business. All property acquisitions to date have been accounted for as asset acquisitions.

Whether the acquisition of a property acquired is considered a business combination or asset acquisition, the Company recognizes the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquired entity. In addition, for transactions that are business combinations, the Company evaluates the existence of goodwill or a gain from a bargain purchase. The Company capitalizes acquisition-related costs associated with asset acquisitions.

Upon acquisition of a property, the Company assesses the fair value of acquired tangible and intangible assets (including land, buildings, tenant improvements, "above-market" and "below-market" leases, acquired in-place leases, other identifiable intangible assets and assumed liabilities) and allocates the purchase price to the acquired assets and assumed liabilities on a relative fair value basis. The Company assesses and considers fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as other available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends, and market and economic conditions.

The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company records acquired above-market and below-market leases at their fair values (using a discount rate which reflects the risks associated with the leases acquired) equal to the difference between (1) the contractual amounts to be paid pursuant to each in-place lease and (2) management's estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases. The Company records acquired in-place lease values based on the Company's evaluation of the specific characteristics of each tenant's lease. Factors to be considered include costs to execute similar leases or estimated carrying costs during hypothetical expected lease-up periods considering current market conditions. In estimating costs to execute similar leases, the Company considers leasing commissions, legal and other related expenses. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses, if any, and estimates of lost rentals at market rates during the expected lease-up periods, depending on local market conditions. The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place leases that may have a customer relationship intangible value, including but not limited to, the nature and extent of the existing relationship with the tenants, the tenants' credit quality and expectations of lease renewals.

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The cost of building and improvements includes the purchase price of the Company's properties and any acquisition-related costs, along with any subsequent improvements to such properties. The Company's investments in real estate are stated at cost and are generally depreciated on a straight-line basis over the estimated remaining useful lives of the assets as follows:

---

| | |
|:---|:---|
| **Description** | **Depreciable Life** |
| Buildings | 35 - 40 years |
| Tenant improvements | 15 - 25 years |
| Land improvements | 1 - 14 years |
| In-place lease intangibles | Over lease term |

---

The Company determines a tenant improvement's depreciable useful life as the shorter of the tenant's lease term or the economic useful life associated with the tenant improvement.

During the three and six months ended June 30, 2025 the Company recognized depreciation expense in the amount of $10.7 million and $18.9 million, respectively, as Depreciation and amortization expense in the Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2024, the Company recognized depreciation expense in the amount of $1.9 million and $2.5 million, respectively, as Depreciation and amortization expense in the Condensed Consolidated Statements of Operations.

The Company capitalizes certain costs related to the development of real estate, including pre-construction costs, construction costs, real estate taxes and insurance. Capitalization of these costs begin when the activities and related expenditures commence and cease when the project is substantially complete and ready for its intended use, at which time the project is placed in service and depreciation commences but no later than one year after substantial completion.

The Company reviews real estate properties for impairment quarterly or when there is an event or change in circumstances that indicates an impaired value. Since cash flows on real estate properties considered to be "long-lived assets to be held and used" are evaluated on an undiscounted basis to determine whether an asset has been impaired, the Company's strategy of holding properties over the long term directly decreases the likelihood of recording an impairment loss. If the Company's strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized, and such loss could be material to our results. If the Company determines that an impairment has occurred, the affected assets must be reduced to their fair value. No impairments occurred during the periods presented.

Definite-lived intangible lease assets are recorded as Intangible assets on the Company's Condensed Consolidated Balance Sheets and amortized at lease commencement over the life of the lease. The amortization of in-place leases is recorded as an adjustment to Depreciation and amortization expense in the Company's Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2025, the Company recognized amortization expense in the amount of $4.7 million and $7.5 million, respectively, as Depreciation and amortization expense in the Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2024, the Company recognized amortization expense in the amount of $0.6 million and $0.8 million, respectively, as Depreciation and amortization expense in the Condensed Consolidated Statements of Operations.

The Company reviews indefinite-lived intangible assets for impairment annually or when there is an event or change in circumstances that indicate a decrease in value. If there are qualitative factors that indicate it is more likely than not that the indefinite-lived intangible asset is impaired, the Company calculates the fair value of the asset and will record the impairment charge if the carrying amount exceeds the fair value. This new cost basis will be used for future periods when recording subsequent loss and cannot be written up to a higher value as a result of increases in fair value. No impairments occurred during the periods presented.

**Cash and Cash Equivalents**

The Company considers all highly liquid investments with original maturities at date of purchase of three months or less to be cash equivalents, which are stated at cost and approximates fair value.

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**Restricted Cash**

As of June 30, 2025 and December 31, 2024, the restricted cash balances of $45.8 million and $87.7 million, respectively, primarily consist of amounts held for future construction draws and subscriptions received in advance.

**Deferred Charges**

The Company's deferred charges include financing costs for legal and other loan costs incurred by the Company for its financing agreements. In accordance with ASC 835, *Interest*, the Company records deferred financing costs as a component of Other assets for the Secured Revolving Credit Facility (as defined below) and as a reduction of the Term Loan Facility (as defined below) on the Condensed Consolidated Balance Sheets and amortizes using the straight-line method, which approximates the effective interest method, over the term of the applicable financing agreements.

**Derivatives and Hedging Activities**

The Company uses interest rate swaps to limit exposure to changes in interest rates, primarily on the variable interest rate debt disclosed in "Note 5 – Debt." The Company does not use derivative instruments for speculative or trading purposes. The interest rate swaps qualify as cash flow hedges under ASC 815, *Derivatives and Hedging*, and are recorded at fair value on the Condensed Consolidated Balance Sheets in Other assets and Other liabilities. Gains and losses due to changes in fair value are recorded in accumulated other comprehensive income (loss) on the Condensed Consolidated Balance Sheets and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income (loss) for interest rate swaps will be reclassified to interest expense, net when the periodic swap settlements are made.

**Fair Value Measurement**

In accordance with ASC 820, *Fair Value Measurement*, the Company defines fair value based on the price that would be received upon sale of an asset or the exit price that would be paid to transfer or settle a liability in an orderly transaction between market participants at the measurement date. The Company uses a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of the three broad levels described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Level 1 – Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Level 2 – Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed.

*Valuation of assets and liabilities measured at fair value*

The Company's interest rate swaps are valued by the Adviser utilizing a pricing model and valuation provided by the counterparty. The rates used are publicly available and therefore these instruments are generally classified within Level 2 of the fair value hierarchy. The following table details the Company's interest rate swaps measured at fair value on a recurring basis ($ in thousands):

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Counterparty** | **Maturity Date** | **Fixed Rate** | **Variable Rate Index** | **Notional Amount** | **Fair Value** | **Notional Amount** | **Fair Value** |
| Goldman Sachs Bank USA | 10/21/2026 | 3.70% | One-month SOFR | $250000 | $(110) | $— | $— |
| Bank of America, National Association | 8/13/2027 | 3.35% | Daily simple SOFR | 60000 | 72 | 60000 | 948 |
| **Total Swaps** |  |  |  | $310000 | $(38) | $60000 | $948 |

---

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*Valuation of liabilities not measured at fair value*

As of June 30, 2025, the Company's Secured Revolving Credit Facility and Term Loan Facility are carried at cost which approximates fair value. Fair value of the Company's indebtedness is estimated by modeling the cash flows required by the Company's debt agreements and discounting them back to the present value using an estimated market yield. The inputs used in determining the fair value of the Company's indebtedness are considered Level 3.

**Redeemable Common Stock**

The Company classifies common shares held by an affiliate of the Company as redeemable common stock on the Condensed Consolidated Balance Sheets at the greater of their carrying amount or their redemption value. Redemption value is determined based on the Company's NAV per share of the applicable share class as of the reporting date. Changes in the value of redeemable common stock are recorded to additional paid-in capital.

**Redeemable Non-Controlling Interests** 

The Company classifies OP Units held by the Adviser and the Special Limited Partner as redeemable non-controlling interests on the Condensed Consolidated Balance Sheets at the greater of the carrying amount, adjusted for the share of the allocation of income or loss and distributions, or the redemption value, which is equivalent to fair value, of such OP Units at the end of each measurement period. Changes in the value of redeemable non-controlling interests are recorded to additional paid-in capital.

**Rental Revenue**

The Company accounts for rental revenue in accordance with ASC 842, *Leases*. Rental revenue primarily consists of fixed contractual base rent arising from the tenant leases at our properties under operating leases. Revenue under leases that are deemed probable of collection is recognized as revenue on a straight-line basis over the non-cancelable term of the related leases. The Company begins to recognize revenue upon the acquisition of the related property or when a tenant takes possession of the leased space. Base rent arising from tenant leases at our properties is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. For leases that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental revenue in the period of the change in the collectability determination. Our estimate of collectability includes, but is not limited to, factors such as the tenant's payment history, financial condition, industry and geographic area. These estimates could differ materially from actual results.

**Income Taxes**

The Company has elected to be taxed as a REIT for U.S. federal income tax purposes commencing with the year ended December 31, 2023. The Company's qualification as a REIT will depend upon its ability to meet, on a continuing basis, through actual investment and operating results, various complex requirements under the Internal Revenue Code of 1986, as amended (the "Code"), relating to, among other things, the sources of the Company's gross income, the composition and value of the Company's assets, the Company's distribution levels and the diversity of ownership of the Company's capital shares. The Company believes that it is organized in conformity with the requirements for qualification as a REIT under the Code and that its intended manner of operation has enabled the Company to meet the requirements for qualification and taxation as a REIT for U.S. federal income tax purposes.

As a REIT, the Company generally will not be subject to U.S. federal income tax on its net taxable income that it distributes currently to its shareholders. Under the Code, REITs are subject to numerous organizational and operational requirements, including a requirement that they distribute each year at least 90% of their REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gains. If the Company fails to qualify for taxation as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company's income for that year will be taxed at regular corporate rates, and the Company would be disqualified from taxation as a REIT for the four taxable years following the year during which the Company ceased to qualify as a REIT. Even if the Company qualifies as a REIT for U.S. federal income tax purposes, it may still be subject to state and local taxes on its income and assets and to U.S. federal income and excise taxes on its undistributed income.

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**Earnings Per Share**

Basic earnings/(loss) per share of common shares is determined by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. All classes of common shares are allocated income/(loss) at the same rate per share and receive the same gross distribution per share before class-specific fees and accruals/allocations. To the extent that class-specific fees and accruals/allocations are applicable they will be deducted to arrive at class specific net income/(loss) per share and net distribution rate per share. Diluted earnings/(loss) per share is computed by dividing net earnings/(loss) attributable to shareholders for the period by the weighted average number of common shares and common share equivalents outstanding (unless their effect is antidilutive) for the period.

**Share-Based Compensation**

Each of the trustees who are not affiliated with the Adviser or Fortress receive $100,000 of Class E shares for services provided annually. The Company accounts for stock-based compensation in accordance with ASC 718, *Compensation – Stock Compensation* and recognizes compensation expense based on the fair value of the award on the date of grant. The award of common shares vests immediately upon issuance. See "Note 8 – Equity" for additional information regarding share-based compensation.

**Segment Reporting**

The Company operates and reports its business as a single reportable segment, which includes the acquisition, leasing, and ownership of net leased properties. The Company's chief operating decision maker ("CODM") is the Co-Chief Executive Officers. The CODM makes key operating decisions, evaluates financial results, and allocates resources at the consolidated level for the entire portfolio based on consolidated revenues, expenses, and net income as reported on the Condensed Consolidated Statements of Operations. Accordingly, the Company has a single operating and reportable segment and the CODM evaluates profitability using net income. Net income is used by the CODM in assessing the operating performance of the segment. All expense categories on the Condensed Consolidated Statements of Operations are significant and there are no significant segment expenses that require disclosure.

**Concentration of Credit Risk**

As the Company's revenues predominantly consist of rental payments, the Company is dependent on its tenants for its source of revenues. Concentration of credit risk arises when the source of revenue is highly concentrated from certain tenants. The Company had two tenants from which it derived 10% or more of its revenue for the three and six months ended June 30, 2025, as follows ($ in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Rental Income** | **Percentage of Total<br>Rental Income** | **Rental Income** | **Percentage of Total<br>Rental Income** |
| **Tenant** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| Tenant A | $7124 | 18.10% | $14247 | 19.80% |
| Tenant B | $3490 | 8.87% | $7002 | 10.00% |

---

The Company had five tenants from which it derived 10% or more of its revenue for the three and six months ended June 30, 2024, as follows ($ in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Rental Income** | **Percentage of Total<br>Rental Income** | **Rental Income** | **Percentage of Total<br>Rental Income** |
| **Tenant** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| Tenant C | $1970 | 26.37% | $3967 | 39.09% |
| Tenant D | $2778 | 37.18% | $2778 | 27.37% |
| Tenant E | $1054 | 14.10% | $1087 | 10.71% |
| Tenant F | $620 | 8.29% | $1053 | 10.37% |
| Tenant G | $851 | 11.39% | $935 | 9.22% |

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**Recent Accounting Pronouncements**

In November 2024, the Financial Accounting Standards Board ("FASB*"*) issued ASU 2024-03, *"Income Statement (Topic 220-40): Reporting Comprehensive Income - Expense Disaggregation Disclosures"* (*"*Topic 220-40*"*). Topic 220-40 requires the disaggregation of expenses into required categories in disclosures within the footnotes of the financial statements. The FASB identified the required expense categories as: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion and amortization recognized as part of oil- and gas producing activities or other depletion expenses. The guidance is effective for annual periods beginning after December 15, 2026. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. This guidance should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the impact of adopting this new guidance on its financial statement disclosures.

**3.**Investments in Real Estate, net

Investments in real estate, net consisted of the following ($ in thousands):

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Buildings and tenant improvements | $1166925 | $725711 |
| Land | 305198 | 259466 |
| Land improvements | 129599 | 97389 |
| Construction in progress |  | 71714 |
| **Total** | 1601722 | 1154280 |
| Accumulated depreciation | (29435) | (10532) |
| **Investments in real estate, net** | $1572287 | $1143748 |

---

During the six months ended June 30, 2025, $90.9 million of construction in progress was placed into service, including $84.3 million of buildings and $6.6 million of land improvements. No construction in progress was placed into service during the six months ended June 30, 2024.

*Acquisitions*

During the six months ended June 30, 2025, the Company acquired 10 industrial, 39 retail properties and two office properties for $532.6 million. The total rentable square feet of gross leasable area ("GLA") of the Company was 13,747 thousand and 8,329 thousand square feet as of June 30, 2025 and December 31, 2024, respectively, all of which is fully occupied.

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The following table sets forth the purchase price, number of properties and total rentable square feet of GLA of the Company for the six months ended June 30, 2025 ($ and square feet in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Property Type** | **Location** | **Purchase Price** | **Number of<br>Properties** | **Square Feet** |
| **Industrial Properties:** |  |  |  |  |
| Industrial | Various | $79777 | 3<br><sup>(1)</sup> | 1153 |
| Industrial | Various | 27742 | 3<br><sup>(1)</sup> | 275 |
| Industrial | Michigan | 55874 | 1 | 1120 |
| Industrial | Florida | 15002 | 1 | 170 |
| Industrial | Various | 34594 | 2<br><sup>(1)</sup> | 458 |
| Total Industrial Properties |  | 212989 | 10 | 3176 |
| **Retail Properties:** |  |  |  |  |
| Retail | Washington | 26982 | 5<br><sup>(1)</sup> | 40 |
| Retail | Michigan | 2305 | 1<br><sup>(1)</sup> | 4 |
| Retail | Connecticut | 3868 | 1 | 10 |
| Retail | Texas | 33606 | 7<br><sup>(1)</sup> | 92 |
| Retail | Missouri | 56513 | 25<br><sup>(1)</sup> | 135 |
| Total Retail Properties |  | 123274 | 39 | 281 |
| **Office Properties:** |  |  |  |  |
| Office / Headquarters | Ohio | 196379 | 2 | 1609 |
| Total Office Properties |  | 196379 | 2 | 1609 |
| **Total** |  | $532642 | 51 | 5066 |

---

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<sup>(1)</sup> Properties subject to master lease agreement.

Additionally, during the six months ended June 30, 2025, the Company acquired additional land adjacent to an existing industrial property in Texas for $1.5 million. The property was acquired in connection with an upsize to an existing industrial property subject to a master lease agreement.

The following table sets forth the purchase price, number of properties and total rentable square feet of GLA of the Company for the six months ended June 30, 2024 ($ and square feet in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Property Type** | **Location** | **Purchase Price** | **Number of<br>Properties** | **Square Feet** |
| **Industrial Properties:** |  |  |  |  |
| Industrial | Pennsylvania | $21884 | 1 | 242 |
| Industrial | Various | 25402 | 2<br><sup>(1)</sup> | 401 |
| Industrial | Utah | 45524 | 3<br><sup>(1)</sup> | 254 |
| Industrial | Various | 133294 | 27<br><sup>(1)</sup> | 1094 |
| Total Industrial Properties |  | 226104 | 33 | 1991 |
| **Retail Properties:** |  |  |  |  |
| Retail | Washington | 15148 | 6<br><sup>(1)</sup> | 25 |
| Retail | New Hampshire | 7822 | 4<br><sup>(1)</sup> | 20 |
| Retail | Kentucky | 12149 | 7<br><sup>(1)</sup> | 25 |
| Retail | Illinois | 6842 | 3<br><sup>(1)</sup> | 21 |
| Total Retail Properties |  | 41961 | 20 | 91 |
| **Total** |  | $268065 | 53 | 2082 |

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<sup>(1)</sup> Properties subject to master lease agreement.

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The following table details the purchase price allocation for the properties acquired during the six months ended June 30, 2025 ($ in thousands):

---

| | |
|:---|:---|
|  | **Amount** |
| Buildings and building improvements | $347910 |
| Land | 45732 |
| Land improvements | 24969 |
| In-place lease intangibles | 115519 |
| **Total Purchase Price** | $534130 |

---

During the six months ended June 30, 2025, the Company made deposits of $5.1 million for future acquisitions, which are included in Other assets on the Condensed Consolidated Balance Sheets.

The following table details the purchase price allocation for the properties acquired during the six months ended June 30, 2024 ($ in thousands):

---

| | |
|:---|:---|
|  | **Amount** |
| Buildings and building improvements | $131422 |
| Land | 63884 |
| Land improvements | 26396 |
| In-place lease intangibles | 46363 |
| **Total Purchase Price** | $268065 |

---

**4.**Intangible Assets, net

The gross carrying amount and accumulated amortization of the Company's identified intangible lease assets consisted of the following ($ in thousands):

---

| | | |
|:---|:---|:---|
| **Intangible lease assets** | **June 30, 2025** | **December 31, 2024** |
| In-place lease intangibles | $319092 | $203574 |
| Condominium interest | 7492 | 7492 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intangible lease assets | 326584 | 211066 |
| **Accumulated amortization** |  |  |
| In-place lease intangibles | (10977) | (3492) |
| **Intangible lease assets, net** | $315607 | $207574 |

---

The estimated future amortization of the Company's in-place lease intangible assets for each of the next five years and thereafter as of June 30, 2025 is as follows ($ in thousands):

---

| | |
|:---|:---|
| **Year** | **Amount** |
| 2025 (Remaining) | $9886 |
| 2026 | 19773 |
| 2027 | 19773 |
| 2028 | 19773 |
| 2029 | 19773 |
| 2030 | 18643 |
| Thereafter | 200494 |
| **Total** | $308115 |

---

**5.**Debt

On August 13, 2024, FNLR OP (the "Borrower") entered into a credit agreement (as most recently amended on April 11, 2025, and as may be further amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), with the Company, as guarantor, the other guarantors party thereto (together with the Company, the "Guarantors" and, collectively with the Borrower, the "Loan Parties"), the lenders, the L/C Issuer (each party thereto) and Bank

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of America, N.A. ("BofA"), as administrative agent (in such capacity, the "Administrative Agent"). The Credit Agreement initially provided for (i) a $120.0 million revolving credit facility, of which $25.0 million was available for standby letters of credit and (ii) a $5.0 million term loan credit facility.

On April 11, 2025, the Loan Parties entered into that certain Second Amendment to Credit Agreement and Incremental Facilities Confirmation (the "Second Amendment"), with each lender and L/C Issuer party thereto and the Administrative Agent. Pursuant to the Second Amendment, the Borrower's right to request that the principal amount of the Credit Facilities be increased, subject to certain conditions, was amended from an amount not exceeding $1.0 billion to an amount not exceeding $1.5 billion (such amount, the "Incremental Facility Maximum"). In connection with the effectiveness of the increase to the Incremental Facility Maximum, the aggregate principal amount of the Credit Facilities was increased from $900.0 million to $1.1 billion in the form of (i) an increase in the aggregate commitments to the revolving credit facility from $755.0 million to $892.5 million, of which $25.0 million is available for standby letters of credit (the "Secured Revolving Credit Facility") and (ii) an increase in the aggregate outstanding principal amount of the term loan from $145.0 million to $182.5 million (the "Term Loan Facility" and, together with the Secured Revolving Credit Facility, the "Credit Facilities").

The following table details key terms of the Credit Facilities as of June 30, 2025 ($ in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Indebtedness** | **Principal Balance<br>Outstanding** | **Weighted<br>Average Interest<br>Rate** | **Maturity Date** | **Maximum<br>Facility Size** |
| Secured Revolving Credit Facility <sup>(1)</sup> | $622000 | 5.89% | 10/17/2025 | $892500 |
| Total Secured Revolving Credit Facility | 622000 |  |  |  |
| Term Loan Facility | $182500 | 5.89% | 10/17/2025 | $182500 |
| Deferred financing costs, net | (1603) |  |  |  |
| Term Loan Facility, net | 180897 |  |  |  |
| **Total Borrowings, net** | $802897 |  |  |  |

---

The following table details key terms of the Credit Facilities as of December 31, 2024 ($ in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Indebtedness** | **Principal Balance<br>Outstanding** | **Weighted<br>Average Interest<br>Rate** | **Maturity Date** | **Maximum<br>Facility Size** |
| Secured Revolving Credit Facility <sup>(1)</sup> | $562500 | 6.26% | 10/17/2025 | $677500 |
| Total Secured Revolving Credit Facility | 562500 |  |  |  |
| Term Loan Facility | $122500 | 6.32% | 10/17/2025 | $122500 |
| Deferred financing costs, net | (1346) |  |  |  |
| Term Loan Facility, net | 121154 |  |  |  |
| **Total Borrowings, net** | $683654 |  |  |  |

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<sup>(1)</sup> Includes a $25.0 million sublimit of standby letters of credit.

At the option of the Borrower, the Credit Facilities will bear interest at either (i) a rate equal to term secured overnight financing rate ("SOFR") or daily simple SOFR plus a margin rate ranging from 1.40% to 1.90% or (ii) a base rate based on the highest of (A) Federal Fund's Rate plus half of 1%, (B) Bank of America's prime rate, (C) Term SOFR plus 1.00% and (D) 1.00%. The Secured Revolving Credit Facility is subject to a per annum fee based on the daily unused portion of the facility ranging from 0.15% to 0.25% to and is payable quarterly in arrears. The Credit Facilities are prepayable, in whole or in part, at any time without premium or penalty. The Company may extend the maturity date of the Credit Facilities by utilizing three one-year extension options, which are exercisable at the Company's discretion. Prior to October 17, 2025, the Company plans to exercise the first extension option in order to extend the maturity date to October 17, 2026.

The Company is subject to various financial and operational covenants under the Credit Facilities. These covenants require the Company to maintain certain financial ratios, which include leverage and fixed charge coverage, among others. As of June 30, 2025, the Company was in compliance with all of its loan covenants.

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**6.**Related Party Transactions

*Due to Affiliate*

The following table details the components of due to affiliate ($ in thousands):

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| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Advanced organizational and offering costs | $12889 | $14048 |
| General and administrative expenses | 2372 | 1255 |
| Accrued management fee | 968 | 691 |
| Performance participation allocation | 3143 | 1874 |
| Accrued shareholder servicing fee | 8771 |  |
| **Total** | $28143 | $17868 |

---

*Advanced Organizational and Offering Costs*

The Adviser agreed to advance all of the organization and offering costs on behalf of the Company (including legal, marketing, due diligence, administrative, accounting, transfer agent fees and other expenses attributable to the Company's organization) through November 1, 2024. Such costs are being reimbursed to the Adviser on a pro-rata basis over a 60-month period beginning November 1, 2024, the first anniversary of the date on which the Company broke escrow for its private offering, and are recorded as a component of Due to affiliate on the Company's Condensed Consolidated Balance Sheets. Approximately $12.9 million and $14.0 million of reimbursable costs were payable to the Adviser at June 30, 2025 and December 31, 2024, respectively.

*General and Administrative Expenses*

The Adviser agreed to advance certain general and administrative expenses on behalf of the Company. General and administrative expenses primarily consist of legal fees, accounting and admin-related fees, audit fees, appraisal/valuation fees and other professional fees. Approximately $2.2 million and $0.9 million in general and administrative expenses were payable to the Adviser at June 30, 2025 and December 31, 2024, respectively. Approximately $0.2 million and $0.4 million were payable to members of the Company's board of trustees related to compensation expense at June 30, 2025 and December 31, 2024, respectively.

*Accrued Management Fee*

The Company pays the Adviser a management fee ranging from 1.00% to 1.25% of NAV per annum payable monthly. However, the Adviser has waived the management fee for six months for certain investors measured from the later of (i) the day on which such shareholder first purchased any waiver-eligible shares and (ii) if applicable, the day on which such shares were released from escrow (such later date in respect of any investor, the "Issuance Date"). The Adviser agreed to waive the management fee in respect of any Class E shares issued for so long as the Company qualifies as a "publicly offered REIT".

The management fee may be paid, at the Adviser's election, in cash, Class E shares or Class A units of FNLR OP (the "Class A OP Units"). To date, the Adviser has elected to receive the management fee in the Company's Class E shares or Class A units of FNLR OP, resulting in a non-cash expense.

During the three months ended June 30, 2025, the Company issued 257,267 Class A OP units and recognized management fees of $2.8 million in the Condensed Consolidated Statements of Operations. During the six months ended June 30, 2025, the Company issued 400,746 Class A OP units and 67,171 Class E shares and recognized management fees of $5.2 million in the Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2024, the Company issued 16,070 Class E shares and recognized management fees of $0.4 million in the Condensed Consolidated Statements of Operations.

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*Performance Participation Allocation*

The Special Limited Partner holds a performance participation interest in FNLR OP that entitles it to receive an allocation of total return. This allocation is an expense to the Company as it represents a liability payable for services rendered relating to ongoing operations of the Company. Total return is defined as total distributions plus the change in the Company's NAV per share, adjusted for subscriptions and repurchases. The Special Limited Partner is entitled to an allocation from FNLR OP equal to (i) for the Class F-S units, Class F-D units, Class F-I units (including Class F-I X units which are eligible for a waiver of performance participation allocation), Class B units and Class E units of FNLR OP, 10% of total return and (ii) for the Class C units of FNLR OP, 5% of total return in each case, after the other unit holders have received a total return of 5% (after recouping any loss carryforward amount). The allocation of the performance participation interest is measured on a calendar year basis, made annually and accrued monthly, and is payable in Class A units of FNLR OP, Class E shares or cash at the election of the Special Limited Partner. The Special Limited Partner has waived the performance participation for six months for certain investors measured from the applicable Issuance Date. In addition, the Special Limited Partner's performance participation interest with respect to Class E units of FNLR OP has been waived by the Special Limited Partner for so long as the Company qualifies as a "publicly offered REIT" for U.S. federal income tax purposes. During the three and six months ended June 30, 2025, the Company issued 181,062 Class A OP units to the Special Limited Partner as payment for $1.9 million of performance participation allocation expense earned during the fiscal year end 2024.

During the three and six months ended June 30, 2025, the Company recognized $1.9 million and $3.1 million, respectively, of performance participation allocation expense in the Company's Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2024, the Company recognized $0.2 million of performance participation allocation expense in the Company's Condensed Consolidated Statements of Operations.

*Accrued Shareholder Servicing Fees*

On April 11, 2025, the Company appointed Fortress Wealth Solutions LLC (the "Dealer Manager"), an affiliate of the Adviser, as dealer manager in connection with its ongoing private offering of securities. The Company accrues ongoing shareholder servicing fees payable to the Dealer Manager for ongoing services rendered to Class F-S shareholders equal to 0.85% per annum of the aggregate NAV of the outstanding shares. The ongoing servicing fees are paid monthly in arrears.

Prior to April 11, 2025, the accrued ongoing shareholder servicing fees were recorded as a component of Other liabilities on the Company's Condensed Consolidated Balance Sheets. Subsequent to April 11, 2025, the accrued ongoing shareholder servicing fees are recorded as a component of Due to affiliates on the Company's Condensed Consolidated Balance Sheets.

*Real Estate Transactions*

Investments in real estate, net and Intangible assets, net include properties that were acquired from affiliates of the Adviser. During the three and six months ended June 30, 2025, the Company acquired one industrial property located in Michigan for approximately $55.9 million, two office properties located in Ohio for approximately $196.4 million and two industrial properties located in Alabama and Ohio for approximately $34.6 million from affiliates of the Adviser. During the three and six months ended June 30, 2024, the Company did not acquire any properties from a related party.

**7.**Derivative Financial Instruments

The Company purchased interest rate swaps to minimize the interest rate risk associated with the Company's Credit Facilities variable interest expense.

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The following table is a summary of the Company's outstanding interest rate swap agreements ($ in thousands):

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Counterparty** | **Maturity Date** | **Fixed Rate** | **Variable Rate Index** | **Notional Amount** | **Fair Value** | **Notional Amount** | **Fair Value** |
| Goldman Sachs Bank USA | 10/21/2026 | 3.70% | One-month SOFR | $250000 | $(110) | $— | $— |
| Bank of America, National Association | 8/13/2027 | 3.35% | Daily simple SOFR | 60000 | 72 | 60000 | 948 |
| **Total Swaps** |  |  |  | $310000 | $(38) | $60000 | $948 |

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The following table details the effect of the Company's derivative financial instruments on the Condensed Consolidated Statements of Operations during the three months ended June 30, 2025 ($ in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **Amount of Unrealized Gain (Loss)<br>Recognized in OCI** | **Location of Gain (Loss)<br>Recognized in Income on Derivatives** | **Amount of Gain (Loss) <br>Reclassified from <br>Accumulated OCI into Income** |
|  | **June 30, 2025** |  | **June 30, 2025** |
| Interest rate swap | $(430) | Interest Expense | $518 |
| **Total** | $(430) |  | $518 |

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The following table details the effect of the Company's derivative financial instruments on the Condensed Consolidated Statements of Operations during the six months ended June 30, 2025 ($ in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **Amount of Unrealized Gain (Loss)<br>Recognized in OCI** | **Location of Gain (Loss)<br>Recognized in Income on Derivatives** | **Amount of Gain (Loss) <br>Reclassified from <br>Accumulated OCI into Income** |
|  | **June 30, 2025** |  | **June 30, 2025** |
| Interest rate swap | $(986) | Interest Expense | $660 |
| **Total** | $(986) |  | $660 |

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**8.**Equity

*Authorized Capital*

As of June 30, 2025, the Company had the authority to issue an unlimited number of preferred shares and six classes of common shares including Class F-S, Class F-D, Class F-I, Class B, Class D-S, and Class E. Class E shares are classified as redeemable common stock on the Company's Condensed Consolidated Balance Sheets. The Company also presents Class F-I X, Class B-X and Class D-X which represent Class F-I shares, Class B shares and Class D shares, respectively, that were purchased during the period from the commencement of the Company's private offering until the Company accepted subscriptions up to $300.0 million in the Company's private offering, which amount may be increased at the Company's discretion (the "Initial Share Offering Period") and entitled to a fee waiver while they were outstanding, as described in the Annual Report. The Initial Share Offering Period ended as of February 1, 2024. Class D shares were renamed to Class D-S shares effective November 14, 2024. Each class of common shares and preferred shares has a par value of $0.01. The Company's board of trustees has the ability to establish the preferences and rights of each class or series of preferred shares, without shareholder approval, and as such, it may afford the holders of any series or class of preferred shares preferences, powers and rights senior to the rights of holders of common shares. The differences among the common share classes relate to ongoing servicing fees, management fees, performance participation allocation and share repurchase rights. Other than differences in fees and repurchase rights, each class of common shares has the same economic and voting rights.

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*Common Shares*

The following tables detail the movement in the Company's outstanding shares of common shares (in thousands):

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class D-S**<sup>(1)</sup> | **Class D-X** | **Class E** | **Total** |
| **March 31, 2025** | 1939 | 6597 | 51222 | 36829 | 306 | 630 | 97523 |
| Common shares issued | 3532 | 3488 | 7267 |  |  | 2167 | 16454 |
| Distribution reinvestment | 35 | 79 | 403 | 185 |  | 3 | 705 |
| Class transfers |  |  | (50) | 309 | (306) | 49 | 2 |
| Common shares repurchased |  |  | (197) |  |  | (370) | (567) |
| **June 30, 2025** | 5506 | 10164 | 58645 | 37323 |  | 2479 | 114117 |

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class F-I X** | **Class B-X** | **Class C**<sup>(2)</sup> | **Class D-S**<sup>(1)</sup> | **Class D-X** | **Class E** | **Total** |
| **March 31, 2024** |  |  | 2861 | 2992 | 4785 |  |  | 31088 | 211 | 41937 |
| Common shares issued |  |  | 8187 |  |  |  |  | 4000 | 34 | 12221 |
| Distribution reinvestment |  |  | 38 | 24 | 16 |  | 8 | 130 | 2 | 218 |
| Class transfers |  |  | 3693 | 1117 | (4801) |  | 8750 | (8747) |  | 12 |
| Common shares<br> repurchased |  |  |  |  |  |  |  |  |  |  |
| **June 30, 2024** |  |  | 14779 | 4133 |  |  | 8758 | 26471 | 247 | 54388 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class D-S**<sup>(1)</sup> | **Class D-X** | **Class E** | **Total** |
| **December 31, 2024** |  | 2988 | 40463 | 35613 | 1347 | 529 | 80940 |
| Common shares issued | 5468 | 7061 | 17738 |  |  | 2266 | 32533 |
| Distribution reinvestment | 38 | 115 | 702 | 354 |  | 5 | 1214 |
| Class transfers |  |  | (50) | 1356 | (1347) | 49 | 8 |
| Common shares repurchased |  |  | (208) |  |  | (370) | (578) |
| **June 30, 2025** | 5506 | 10164 | 58645 | 37323 |  | 2479 | 114117 |

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class F-I X** | **Class B-X** | **Class C**<sup>(2)</sup> | **Class D-S**<sup>(1)</sup> | **Class D-X** | **Class E** | **Total** |
| **December 31, 2023** |  |  | **—** | 2346 | 2102 | 7227 |  |  | 202 | 11877 |
| Common shares issued |  |  | 11048 | 630 | 3669 | 1052 |  | 25748 | 41 | 42188 |
| Distribution reinvestment |  |  | 38 | 40 | 30 | 26 | 8 | 165 | 4 | 311 |
| Class transfers |  |  | 3693 | 1117 | (5801) | (8305) | 8750 | 558 |  | 12 |
| Common shares<br> repurchased |  |  |  |  |  |  |  |  |  |  |
| **June 30, 2024** |  |  | 14779 | 4133 |  |  | 8758 | 26471 | 247 | 54388 |

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<sup>(1)</sup> Class D shares were renamed to Class D-S shares effective November 14, 2024.

<sup>(2)</sup> As of June 30, 2025, pursuant to the terms of the Class C shares and Class D shares, all outstanding Class C shares were automatically converted into Class D shares.

*Redeemable Common Stock*

In connection with the Company's payment of its management fee, the Adviser holds Class E shares. Additionally, certain affiliates of the Adviser hold Class E shares. See Note 6 - Related Party Transactions for further details on the management fee. The ability of the Class E holders to redeem the Class E shares for cash is outside of the Company's control. Therefore, the Company has classified these Class E shares that are held by affiliates of the Adviser as redeemable common stock outside of equity on the Company's Condensed Consolidated Balance Sheets. The Company received proceeds from the issuance of redeemable common stock of $22.6 million for the three and six months ended June 30, 2025 and $0 for the three and six months ended June 30, 2024. As of June 30, 2025, the Company has 2,479,245 redeemable Class E shares issued and outstanding.

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The redeemable Class E shares are recorded at the greater of (i) their carrying amount, or (ii) their redemption value, which is equivalent to the fair value of the shares at the end of each measurement period. Accordingly, the Company recorded an allocation adjustment of $0.2 million during the six months ended June 30, 2025.

*Share and Unit Repurchases*

The Company has adopted a share repurchase plan whereby, subject to certain limitations, shareholders may request, on a monthly basis, that the Company repurchase all or any portion of their shares. The aggregate NAV of total repurchases of the Company's common shares under the Company's share repurchase plan and redemptions of Operating Partnership units is limited to no more than 2% of the Company's aggregate NAV per month (measured using the aggregate NAV attributable to shareholders as of the end of the immediately preceding month) and no more than 5% of the Company's aggregate NAV per calendar quarter (measured using the average aggregate NAV attributable to shareholders as of the end of the immediately preceding three months). Shares or units issued to the Adviser and its affiliates as payment for management fees or as reimbursements of expenses or for the Special Limited Partner's performance participation interest are subject to the repurchase plan but exempt from the redemption limitations.

Other than as described for redeemable common stock and redeemable non-controlling interests, the Company is not obligated to repurchase any shares or units, including shares or units held by the Adviser acquired as payment of the Adviser's management fee or held by the Special Limited Partner for its performance participation interest, and may choose to repurchase fewer shares than have been requested to be repurchased, or none at all, in its discretion at any time. Further, the Company's board of trustees may make exceptions to, modify or suspend the Company's share repurchase plan (including to make exceptions to the repurchase limitations or purchase fewer shares than such repurchase limitations) if it deems such action to be in the Company's best interest. In the event that the Company determines to repurchase some but not all of the shares submitted for repurchase during any month, shares repurchased at the end of the month will be repurchased on a pro-rata basis.

During the three months ended June 30, 2025, the Company repurchased 566,813 shares of common shares for a total of $5.9 million. During the six months ended June 30, 2025, the Company repurchased 578,217 shares of common shares for a total of $6.0 million.

Additionally, during the three and six months ended June 30, 2025, the Company repurchased 181,062 Class A OP units for a total of $1.9 million. The Company had no unfulfilled repurchase requests during the three and six months ended June 30, 2025.

The Company did not repurchase common shares and had no outstanding repurchase requests during the three and six months ended June 30, 2024.

*Distributions*

The Company generally intends to distribute substantially all of its taxable income, which does not necessarily equal net income in accordance with GAAP, to its shareholders each year to comply with the REIT provisions of the Code. Each class of common shares receive the same gross distribution per share during the period the Adviser and Special Limited Partner have waived the management fee and performance participation allocation, respectively.

The following table details the aggregate net distributions declared for each applicable class of common shares for the three months ended June 30, 2025 and 2024:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class D-S**<sup>(1)</sup> | **Class D-X** | **Class E** |
| Aggregate net distributions declared per share | $0.1723 | $0.1550 | $0.1765 | $0.1763 | $— | $0.1937 |

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class F-I X** | **Class B-X** | **Class C**<sup>(2)</sup> | **Class D-S**<sup>(1)</sup> | **Class D-X** | **Class E** |
| Aggregate net distributions declared per share | $— | $— | $0.1464 | $0.1464 | $0.0481 | $— | $0.0983 | $0.1464 | $0.1464 |

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The following table details the aggregate net distributions declared for each applicable class of common shares for the six months ended June 30, 2025 and 2024:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
|  | **Class I**<sup>(3)</sup> | **Class F-S** | **Class F-I** | **Class D-S**<sup>(1)</sup> | **Class D-X** | **Class E** |
| Aggregate net distributions declared per share | $0.2849 | $0.3012 | $0.3443 | $0.3441 | $0.1678 | $0.3615 |

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class F-I X** | **Class B-X** | **Class C**<sup>(2)</sup> | **Class D-S**<sup>(1)</sup> | **Class D-X** | **Class E** |
| Aggregate net distributions declared per share | $— | $— | $0.1904 | $0.2739 | $0.1756 | $0.0835 | $0.0983 | $0.2739 | $0.2739 |

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<sup>(1)</sup> Class D shares were renamed to Class D-S shares effective November 14, 2024.

<sup>(2)</sup> As of June 30, 2025, pursuant to the terms of the Class C shares and Class D shares, all outstanding Class C shares were automatically converted into Class D shares.

<sup>(3)</sup> Shares were outstanding for a portion of the six months ended June 30, 2025.

*Redeemable Non-Controlling Interests* 

In connection with its performance participation interest, the Special Limited Partner receives Class A units of FNLR OP. Additionally, in connection with the payment of management fees, the Adviser owns 400,746 Class A units of FNLR OP. See Note 6 - Related Party Transactions for further details on the performance participation allocation and management fees. Because the Special Limited Partner and the Adviser have the ability to redeem the Class A units for either Class E shares in the Company or cash at their election, the Company has classified these Class A units as Redeemable non-controlling interests outside of equity on the Company's Condensed Consolidated Balance Sheets. Redeemable non-controlling interests are recorded at the greater of (i) their carrying amount, adjusted for their share of the allocation of income or loss and distributions, or their redemption value, which is equivalent to fair value, of such Class A units at the end of each measurement period. Accordingly, the Company recorded an allocation adjustment of $74,203 and $116,932 during the three and six months ended June 30, 2025, respectively.

The following table details the redeemable non-controlling interest activity for the six months ended June 30, 2025 and 2024 ($ in thousands):

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| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** |
| **Balance at beginning of period** | $— | $— |
| Settlement of prior performance participation allocation and management fee | 6079 |  |
| Repurchases | (1891) |  |
| Offering costs | (3) |  |
| Net income | 64 |  |
| Other comprehensive loss | (5) |  |
| Distributions | (104) |  |
| Redemption value allocation | 117 |  |
| **Ending balance** | $4257 | $— |

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*Share-Based Compensation*

The Company accrued $0.2 million and $0.3 million of non-cash compensation expense at June 30, 2025 and December 31, 2024, respectively.

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**9.** **Other Assets and Other Liabilities** 

The following table summarizes the components of Other Assets ($ in thousands):

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| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Straight-line rent receivable | $24243 | $9603 |
| Deposits | 10050 | 4941 |
| Deferred financing costs, net | 6967 | 5573 |
| Derivative swap asset | 73 | 948 |
| Lease commissions, net | 684 | 696 |
| Prepaid expenses | 218 |  |
| Other receivables | 247 | 476 |
| &nbsp;&nbsp;**Total Other Assets** | $42482 | $22237 |

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The following table summarizes the components of Other Liabilities ($ in thousands):

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| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Accounts payable | $6309 | $13974 |
| Prepaid rental income | 4880 | 5474 |
| Accrued shareholder servicing fee |  | 2626 |
| Derivative swap liability | 110 |  |
| Accrued interest payable | 461 | 1526 |
| Other accrued expenses | 2703 | 2761 |
| &nbsp;&nbsp;**Total Other Liabilities** | $14463 | $26361 |

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**10.**Leases

*Lessor – Operating leases*

The Company's rental revenue primarily consists of rent earned from operating leases at the Company's triple net lease, fully occupied properties which consist of fixed annual rent that escalates annually throughout the term of the applicable leases. The tenant is generally responsible for all property-related expenses, including taxes, insurance and maintenance, and the Company has rights in accordance with the lease agreement to protect the value of the leased property. The Company's triple net lease properties are each occupied by a single tenant.

The following table details the components of operating lease income from leases in which the Company is the lessor ($ in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| Base rent<sup>(1)</sup> | $31557 | $5550 | $57313 | $7404 |
| Straight-line rental revenue | 7799 | 1923 | 14640 | 2746 |
| &nbsp;&nbsp;**Total Rental Revenue** | $39356 | $7473 | $71953 | $10150 |

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<sup>(1)</sup> Base rent consists of fixed lease payments

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The following table presents the undiscounted future minimum rents the Company expects to receive for its net lease properties classified as operating leases as of June 30, 2025 ($ in thousands):

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| | |
|:---|:---|
| **Year** | **Future Minimum Receipts** |
| 2025 (Remaining) | $75218 |
| 2026 | 154880 |
| 2027 | 160222 |
| 2028 | 163959 |
| 2029 | 167796 |
| 2030 | 170150 |
| Thereafter | 2725664 |
| **Total** | $3617889 |

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**11.**Commitments and Contingencies

In the normal course of business, the Company may, directly or indirectly, enter into agreements that contain representations and warranties and which provide indemnifications. Future events could occur that lead to the execution of these provisions against the Company. The Company's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Company had outstanding commitments of $61.5 million and $99.6 million as of June 30, 2025 and December 31, 2024, respectively, in connection with its properties under development.

**12.**Earnings Per Share

Basic earnings/(loss) per common share is determined by dividing net income/(loss) attributable to common shareholders by the weighted average number of common shares outstanding during the period. All classes of common shares are allocated income/(loss) at the same rate per share and receive the same gross distribution per share before class-specific fees and accruals/allocations. To the extent that class-specific fees and accruals/allocations are applicable they will be deducted to arrive at class specific net income/(loss) per share and net distribution rate per share.

The following tables detail net income/(loss) per common share ($ in thousands, except per share data):

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class D-S** | **Class D-X** | **Class E** | **Total** |
| Net income | $163 | $444 | $2755 | $2757 | $— | $174 | $6293 |
| Weighted average number<br> of common shares<br> outstanding - basic | 4376 | 9044 | 57126 | 37258 |  | 1858 | 109662 |
| Net income per common<br> share - basic | $0.04 | $0.05 | $0.05 | $0.07 | $— | $0.09 | $0.06 |
| Net income attributable to<br> non-controlling interests<br> - OP units |  |  |  |  |  |  | $39 |
| Net income per common<br> share - diluted |  |  |  |  |  |  | $6332 |
| Weighted average number<br> of OP units |  |  |  |  |  |  | 369 |
| Weighted average number<br> of common shares<br> outstanding - diluted |  |  |  |  |  |  | 110031 |
| Net income per common<br> share - diluted |  |  |  |  |  |  | $0.06 |

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class F-I X** | **Class B-X** | **Class C** | **Class D-S** | **Class D-X** | **Class E** | **Total** |
| Net income (loss) | $— | $— | $391 | $355 | $164 | $— | $194 | $2722 | $20 | $3846 |
| Weighted average<br> number of common<br> shares outstanding |  |  | 9995 | 4124 | 1580 |  | 4210 | 30661 | 233 | 50803 |
| Net income (loss)<br> per common share<br> - basic and diluted | $— | $— | $0.04 | $0.09 | $0.10 | $— | $0.05 | $0.09 | $0.09 | $0.08 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class D-S** | **Class D-X** | **Class E** | **Total** |
| Net income | $182 | $727 | $5449 | $5624 | $77 | $239 | $12298 |
| Weighted average number<br> of common shares<br> outstanding - basic | 2634 | 7245 | 53027 | 36831 | 335 | 1246 | $101318 |
| Net income per common<br> share - basic | $0.07 | $0.10 | $0.10 | $0.15 | $0.23 | $0.19 | $0.12 |
| Net income attributable to<br> non-controlling interests<br> - OP units |  |  |  |  |  |  | $64 |
| Net income per common<br> share - diluted |  |  |  |  |  |  | $12362 |
| Weighted average number<br> of OP units |  |  |  |  |  |  | 309 |
| Weighted average number of<br> common shares<br> outstanding - diluted |  |  |  |  |  |  | 101627 |
| Net income per common<br> share - diluted |  |  |  |  |  |  | $0.12 |

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|  | **Class I** | **Class F-S** | **Class F-I** | **Class F-I X** | **Class B-X** | **Class C** | **Class D-S** | **Class D-X** | **Class E** | **Total** |
| Net income (loss) | $— | $— | $363 | $502 | $333 | $217 | $194 | $3662 | $31 | $5302 |
| Weighted average<br> number of<br> common shares<br> outstanding |  |  | 5485 | 3505 | 2716 | 1165 | 2105 | 27074 | 219 | 42269 |
| Net income (loss) per<br> common share -<br> basic and diluted | $— | $— | $0.07 | $0.14 | $0.12 | $0.19 | $0.09 | $0.14 | $0.14 | $0.13 |

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**13.**Economic Dependency

The Company is dependent on the Adviser and its affiliates for certain services that are essential to it, including the sale of the Company's common shares, origination, acquisition and disposition decisions, and certain other responsibilities. In the event that the Adviser and its affiliates are unable to provide such services, the Company would be required to find alternative service providers**.**

**14.**Subsequent Events

In preparation of the accompanying condensed consolidated financial statements, the Company has evaluated events and transactions that occurred after June 30, 2025 for recognition or disclosure purposes. Based on this evaluation, the Company

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identified the following subsequent events, from June 30, 2025 through the date the condensed consolidated financial statements were issued.

*Proceeds from the Issuance of Common Shares*

On July 1, 2025, the Company issued and sold 4,312,433 common shares, consisting of 636,394 Class I shares, 1,818,179 Class F-S shares, 1,780,785 Class F-I shares, 65,049 Class D-S shares and 12,026 Class E shares, to accredited investors in the Company's private offering, amounting to proceeds of $44.2 million to the Company as payment for such shares, including shares issued pursuant to the Company's distribution reinvestment plan.

In addition, on July 16, 2025 the Company issued 91,178 Class A OP units to the Adviser as payment for $1.0 million of management fees.

On August 1, 2025, the Company issued and sold 3,133,884 common shares, consisting of 775,548 Class I shares, 1,210,200 Class F-S shares, 1,081,800 Class F-I shares, 65,203 Class D-S shares and 1,134 Class E shares, to accredited investors in the Company's private offering, amounting to proceeds of $32.1 million to the Company as payment for such shares, including shares issued pursuant to the Company's distribution reinvestment plan.

*Borrowings*

On July 25, 2025, the Borrower, the Company, as guarantor and the other guarantors party thereto, entered into that certain Third Amendment to Credit Agreement and New Lender Joinder Agreement (the "Third Amendment") with each lender and letter of credit issuer party thereto, Bank of America, N.A. as administrative agent, and each of JPMorgan Chase Bank, N.A. and M&T Bank, as a Joint Leader Arranger and revolving credit facility lender and term loan lender thereunder, amending the Credit Agreement.

Pursuant to the Third Amendment, the aggregate principal amount of the Credit Facilities was increased from $1.075 billion to $1.275 billion in the form of (i) an increase in the aggregate commitments to the Secured Revolving Credit Facility from $892.5 million to $1.0475 billion, of which $25.0 million is available for standby letters of credit, and (ii) an increase in the aggregate outstanding principal amount of the Term Loan Facility from $182.5 million to $227.5 million. In addition, pursuant to the Third Amendment, subject to the satisfaction of certain criteria and conditions, the Loan Parties may offer Loan Assets (as defined in the Third Amendment) that qualify as First Mortgage Investments (as defined in the Third Amendment) to be included in the calculation of Borrowing Base Value (as defined in the Third Amendment).

Subsequent to June 30, 2025, the Company paid $114.0 million towards the outstanding principal balance on the Secured Revolving Credit Facility.

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*References herein to "Fortress Net Lease REIT," "we," "us," "our," "FNLR," and the "Company" refer to Fortress Net Lease REIT, together with its consolidated subsidiaries, unless the context specifically requires otherwise.*

*The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto appearing elsewhere in this Form 10-Q. In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Our actual results may differ materially from those in this discussion as a result of various factors, including but not limited to those discussed under "Special Note Regarding Forward-Looking Statements" and in "Item 1A.—Risk Factors" in our Annual Report.*

References to "Class F-I X," "Class B-X" and "Class D-X" in this section represent Class F-I, Class B and Class D-S shares (formerly Class D shares), respectively, that were purchased during the Initial Share Offering Period and entitled to a fee waiver while they were outstanding, as described in the Annual Report. As of June 30, 2025, there were no Class F-I X, Class B, Class B-X or Class D-X shares outstanding. All Class F-I X, Class B and Class B-X shares were automatically converted into Class F-I shares. All Class D-X shares were automatically converted into Class D-S shares.

**Overview**

Fortress Net Lease REIT invests primarily in single-tenant, net leased assets. We own all or substantially all of our assets through FNLR OP LP, a subsidiary of the Company (the "Operating Partnership"). FNLR GP LLC is a wholly-owned subsidiary of the Company and is the sole general partner of the Operating Partnership. We are externally managed by FNLR Management, LLC. The Company's principal business is the acquisition, ownership, financing and leasing of single-tenant commercial real estate properties subject to long-term net leases with investment grade and other creditworthy tenants or guarantors, and our management does not distinguish our principal business, or group our operations, by geography or property type for purposes of measuring performance. Accordingly, we have only one reportable segment.

The Company was formed on January 24, 2023 (the "Date of Formation") as a Maryland statutory trust; however, no activity occurred until we acquired our first property on September 28, 2023 (the "Inception").

The Company is a non-listed, perpetual life REIT that has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code") for U.S. federal income tax purposes. The Company generally will not be subject to U.S. federal income taxes on our taxable income to the extent we annually distribute all of our net taxable income to shareholders and maintain our qualification as a REIT.

As of June 30, 2025, we have received aggregate proceeds of $1.2 billion from the sale of our common shares. The Company has contributed the proceeds to the Operating Partnership in exchange for a corresponding number of Operating Partnership units that correspond to the classes of our shares sold. The Operating Partnership has primarily used the proceeds to make investments in real estate as further described below under "—Overall Portfolio." The Company intends to continue selling shares on a monthly basis.

**Market Conditions and Trends**

The Company's businesses are materially affected by conditions in the financial markets and economic conditions in the U.S. and, to a lesser extent, elsewhere in the world.

During the second quarter of 2025, the persistence of both elevated inflation and interest rates, in conjunction with tariff risks, political uncertainty, geopolitical uncertainty (including the conflict between Russia and Ukraine and the conflict in the Middle East, including between Israel and Hamas and other developing conflicts), and uncertainty around future capital availability continued to weigh on industry deal activity and market valuations.

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Our real estate business, focused on triple net leases, continued to deploy significant capital. Our investors continue to benefit from the inflation-mitigating characteristics and long term risk adjusted returns of the net lease structure, including contractually guaranteed and highly predictable net rent growth and long-duration income flows across the portfolio.

We are continuing to closely monitor developments related to the macroeconomic factors that have contributed to market volatility, and to assess the impact of these factors on financial markets and on our business. Our future results may be adversely affected by slowdowns in fundraising activity and the pace of capital deployment. It remains difficult to predict the ultimate effects of these events on the financial markets, overall economy, and our financial statements. See "Item 1A. Risk Factors — Risks Related to Our Business and Operations" in our Annual Report.

**Recent Developments**

Since June 30, 2025, through and including the date hereof, we (i) amended the Credit Facilities as described below, (ii) paid $114.0 million towards the outstanding principal balance on the Secured Revolving Credit Facility (iii) borrowed an additional $45.0 million on the Term Loan Facility and (iv) issued and sold an aggregate of 7,446,317 common shares in our private offering, resulting in proceeds of $76.3 million (see "Item 1. Financial Statements—Notes to Condensed Consolidated Financial Statements—Note 14. Subsequent Events" and the section titled "Item 2. Unregistered Sales of Equity Securities and Use of Proceeds").

*Borrowings*

On July 25, 2025, FNLR OP LP, as borrower (the "Borrower"), the Company, as guarantor and the other guarantors party thereto (together with the Company, the "Guarantors" and, collectively with the Borrower, the "Loan Parties"), entered into that certain Third Amendment to Credit Agreement and New Lender Joinder Agreement (the "Third Amendment") with each lender and letter of credit issuer party thereto, Bank of America, N.A. as administrative agent (the "Administrative Agent"), and each of JPMorgan Chase Bank, N.A. and M&T Bank, as a Joint Leader Arranger and revolving credit lender and term loan lender thereunder, amending that certain Credit Agreement, initially dated August 13, 2024 and as most recently amended on April 11, 2025, among the Loan Parties, the lenders and the letter of credit issuer party thereto and the Administrative Agent.

Pursuant to the Third Amendment, the aggregate principal amount of the Credit Facilities was increased from $1.075 billion to $1.275 billion in the form of (i) an increase in the aggregate commitments to the revolving credit facility from $892.5 million to $1.0475 billion, of which $25.0 million is available for standby letters of credit (the "Secured Revolving Credit Facility"), and (ii) an increase in the aggregate outstanding principal amount of the term loan from $182.5 million to $227.5 million (the "Term Loan Facility" and, together with the Secured Revolving Credit Facility, the "Credit Facilities"). In addition, pursuant to the Third Amendment, subject to the satisfaction of certain criteria and conditions, the Loan Parties may offer Loan Assets (as defined in the Third Amendment) that qualify as First Mortgage Investments (as defined in the Third Amendment) to be included in the calculation of Borrowing Base Value (as defined in the Third Amendment).

**Emerging Growth Company Status**

We are and will remain an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") until the earlier of (a) the last day of the fiscal year (i) following the fifth anniversary of the date of an initial public offering pursuant to an effective registration statement under the Securities Act, (ii) in which we have total annual gross revenue of at least $1.235 billion, or (iii) in which we are deemed to be a large accelerated filer, which means the market value of our shares that is held by non-affiliates exceeds $700 million as of the date of our most recently completed second fiscal quarter, and (b) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period. For so long as we remain an "emerging growth company" we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act. We cannot predict if investors will find our shares less attractive because we may rely on some or all of these exemptions.

In addition, Section 107 of the JOBS Act also provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We will take advantage of the extended transition period for complying with new or revised accounting standards, which may make it more difficult for investors and securities analysts to evaluate us since our financial statements may not be comparable to companies that comply with public company effective dates. Also, because we are not a large accelerated filer or an accelerated filer under Section 12b-2 of the Exchange Act, and will not be for

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so long as our common shares are not traded on a securities exchange, we will not be subject to auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act even once we are no longer an emerging growth company.

**Q2 2025 Highlights**

***Operating Results***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Declared monthly net distributions totaling $19.2 million for the three months ended June 30, 2025. The details of our total returns are shown in the following table:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class S** | **Class D** | **Class I** | **Class F-S** | **Class F-D** | **Class F-I** | **Class D-S** | **Class E** |
| Inception-to-Date<br> Total Return<sup>(1)</sup> | —% | —% | 3.29% | 6.87% | —% | 8.44% | 10.01% | 9.42% |

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<sup>(1)</sup> Inception-to-Date Total Return is calculated as the change in NAV per share during the respective periods plus any distributions per share declared in the period and assumes any distributions are reinvested in accordance with our distribution reinvestment plan. Shares were initially issued for Class I on February 1, 2025. Shares were initially issued for Class D-X, Class F-I, Class D-S and Class F-S on January 1, 2024, March 1, 2024, May 1, 2024 and September 1, 2024, respectively. Class E shares were initially issued on November 1, 2023. Total return for periods greater than one year are annualized. The Company believes total return is a useful measure of the overall investment performance of our shares.

***Investments***

Acquired 38 properties with a total purchase price of $392.0 million during the three months ended June 30, 2025. The acquisitions are consistent with our strategy of acquiring diversified, income-producing, single-tenant, net leased commercial properties.

***Capital Activity and Financings***

Raised proceeds of $175.8 million from the sale of our common shares for the three months ended June 30, 2025.

***Overall Portfolio***

As of June 30, 2025, our portfolio was comprised of 97 industrial properties, 88 retail properties and two office properties with (i) buildings, (ii) land and (iii) properties under development, representing 73%, 27% and 0%, respectively, of our total portfolio value based on historical cost.

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**Investment Portfolio**

***Real Estate Investments***

As of June 30, 2025, we had 100% ownership interest in all our properties in our portfolio. The following table provides a summary of our portfolio as of June 30, 2025 ($ and square feet in thousands):

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Property Type**<sup>(1)</sup> | **Location** | **Number<br>of Properties** | **Number<br>of Properties** | **Gross Asset Cost** | **Annual<br>Escalations** | **Lease<br>Term <br>(Years)** | **Square<br>Feet** | **Acquisition<br>Date** | **Occupancy<br>Rate** |
| **Industrial Properties:** | **Industrial Properties:** |  |  |  |  |  |  |  |  |
| Industrial | Pennsylvania | 1 | 1<br><sup>(2)</sup> | $70026 | 3.25% | 30 | 650 | 9/28/2023 | 100% |
| Industrial | Missouri | 1 | 1<br><sup>(2)</sup> | 103854 | 2.85% | 25 | 352 | 11/1/2023 | 100% |
| Industrial | Tennessee | 1 | 1<br><sup>(2)</sup> | 34533 | 3.00% | 10 | 141 | 12/1/2023 | 100% |
| Industrial | Wisconsin | 1 | 1 | 66497 | 3.00% | 25 | 983 | 12/28/2023 | 100% |
| Industrial | Pennsylvania | 1 | 1 | 21897 | 3.00% | 25 | 242 | 1/29/2024 | 100% |
| Industrial | Various | 2 | 2<br><sup>(3)</sup> | 26415 | 3.00% | 20 | 401 | 2/29/2024 | 100% |
| Industrial | Utah | 3 | 3<br><sup>(3)</sup> | 45619 | 2.50% | 20 | 254 | 3/29/2024 | 100% |
| Industrial | Various | 27 | 27<br><sup>(3)</sup> | 133859 | 2.75% | 20 | 1094 | 4/11/2024 | 100% |
| Industrial | Various | 22 | 22<br><sup>(3)</sup> | 173490 | 2.80% | 20 | 1331 | 8/13/2024 | 100% |
| Industrial | Various | 2 | 2<br><sup>(3)</sup> | 9869 | 2.75% | 20 | 137 | 8/22/2024 | 100% |
| Industrial | Georgia | 3 | 3<br><sup>(3)</sup> | 29723 | 1.25 X CPI | 20 | 343 | 9/26/2024 | 100% |
| Industrial | Various | 3 | 3<br><sup>(3)</sup> | 207097 | 1.25 X CPI | 17 | 786 | 10/23/2024 | 100% |
| Industrial | Various | 2 | 2<br><sup>(3)</sup> | 81763 | 3.00% | 20 | 567 | 12/9/2024 | 100% |
| Industrial | Various | 16 | 16<br><sup>(3)</sup> | 132838 | 2.75% | 20 | 847 | 12/20/2024 | 100% |
| Industrial | Various | 2 | 2<br><sup>(3)</sup> | 101969 | 3.00% | 20 | 224 | 12/31/2024 | 100% |
| Industrial | Various | 3 | 3<br><sup>(3)</sup> | 79777 | 3.00% | 20 | 1153 | 2/12/2025 | 100% |
| Industrial | Various | 3 | 3<br><sup>(3)</sup> | 27742 | 2.50% | 25 | 275 | 2/26/2025 | 100% |
| Industrial | Michigan | 1 | 1<br><sup>(4)</sup> | 55874 | 1.75% | 5 | 1120 | 4/1/2025 | 100% |
| Industrial | Florida | 1 | 1 | 15002 | 3.00% | 20 | 170 | 5/8/2025 | 100% |
| Industrial | Various | 2 | 2<br> <sup>(3),(4)</sup> | 34594 | 3.00% | 18 | 458 | 6/18/2025 | 100% |
| Total Industrial Properties | Total Industrial Properties |  | 97 | 1452439 |  |  | 11528 |  |  |
| **Retail Properties:** |  |  |  |  |  |  |  |  |  |
| Retail | Washington | 6 | 6<br><sup>(3)</sup> | 15283 | 2.00% | 15 | 25 | 5/7/2024 | 100% |
| Retail | Kentucky | 7 | 7<br><sup>(3)</sup> | 12241 | 2.00% | 15 | 25 | 6/11/2024 | 100% |
| Retail | New Hampshire | 4 | 4<br><sup>(3)</sup> | 7907 | 2.50% | 15 | 20 | 6/11/2024 | 100% |
| Retail | Illinois | 3 | 3<br><sup>(3)</sup> | 6934 | 2.00% | 15 | 21 | 6/28/2024 | 100% |
| Retail | Alabama | 4 | 4<br><sup>(3)</sup> | 8143 | 2.00% | 15 | 38 | 7/9/2024 | 100% |
| Retail | Louisiana | 5 | 5<br><sup>(3)</sup> | 13521 | 2.00% | 15 | 30 | 8/27/2024 | 100% |
| Retail | South Carolina | 1 | 1 | 2740 | 2.00% | 15 | 7 | 9/6/2024 | 100% |
| Retail | Florida | 3 | 3<br><sup>(3)</sup> | 9957 | 2.00% | 15 | 19 | 9/25/2024 | 100% |
| Retail | Michigan | 3 | 3<br><sup>(3)</sup> | 7276 | 2.00% | 15 | 11 | 12/3/2024<br><sup>(5)</sup> | 100% |
| Retail | New Jersey | 3 | 3<br><sup>(3)</sup> | 12974 | 2.00% | 15 | 25 | 12/9/2024 | 100% |
| Retail | Minnesota | 1 | 1 | 6751 | 2.00% | 15 | 18 | 12/18/2024 | 100% |
| Retail | Pennsylvania | 2 | 2<br><sup>(3)</sup> | 5735 | 2.00% | 15 | 7 | 12/27/2024 | 100% |
| Retail | Washington | 7 | 7<br><sup>(3)</sup> | 43080 | 2.00% | 15 | 75 | 12/27/2024<br><sup>(6)</sup> | 100% |
| Retail | West Virginia | 4 | 4<br><sup>(3)</sup> | 18141 | 2.00% | 15 | 29 | 12/30/2024 | 100% |
| Retail | Florida | 2 | 2<br><sup>(3)</sup> | 15512 | 2.00% | 15 | 23 | 12/31/2024 | 100% |
| Retail | Connecticut | 1 | 1 | 3868 | 2.00% | 15 | 10 | 3/26/2025 | 100% |
| Retail | Texas | 7 | 7<br><sup>(3)</sup> | 33606 | 2.00% | 15 | 92 | 6/27/2025 | 100% |
| Retail | Missouri | 25 | 25<br><sup>(3)</sup> | 56513 | 2.00% | 15 | 135 | 6/30/2025 | 100% |
| Total Retail Properties | Total Retail Properties | 88 | 88 | 280182 |  |  | 610 |  |  |
| **Office Properties:** |  |  |  |  |  |  |  |  |  |
| Office / Headquarters | Ohio |  | 2<br><sup>(4)</sup> | 196379 | 2.00% | 14 | 1609 | 4/29/2025 | 100% |
| Total Office Properties |  |  | 2 | 196379 |  |  | 1609 |  |  |
| **Total** |  |  | 187 | $1929000 |  |  | 13747 |  |  |

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<sup>(1)</sup> Retail includes critical retail properties that provide items or services that are fundamental to the daily life of the surrounding community.

<sup>(2)</sup> Properties subject to build-to-suit agreement. See table on the following page.

<sup>(3)</sup> Properties subject to master lease agreements.

<sup>(4)</sup> Properties acquired from an affiliate to the Adviser.

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<sup>(5)</sup> Two properties acquired on December 3, 2024 and one property acquired on February 26, 2025.

<sup>(6)</sup> Two properties acquired on December 27, 2024 and five properties acquired on February 19, 2025.

The following table summarizes the Company's build-to-suit development projects as of June 30, 2025 ($ in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Property Type** | **Location** | **Number<br>of Properties** | **Total<br>Project<br>Commitment** | **Cumulative<br>Investment** | **Estimated<br>Remaining<br>Investment** |
| Industrial | Pennsylvania | 1<br> September 2023<sup>(1)</sup> | $72301 | $70011 | $2290 |
| Industrial | Missouri | 1<br> November 2023<sup>(2)</sup> | $124021 | $101653 | $22368 |
| Industrial | Tennessee | 1<br> November 2023<sup>(3)</sup> | $35939 | $34518 | $1421 |
| Industrial | New York | 1<br> September 2024<sup>(4)</sup> | $45372 | $10000 | $35372 |

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<sup>(1)</sup> Property placed into service December 2024.

<sup>(2)</sup> Property placed into service June 2025.

<sup>(3)</sup> Property placed into service October 2024.

<sup>(4)</sup> The Company began advancing the future purchase price for the acquisition of this property in September 2024.

***Lease Expirations***

The following schedule details the expiring leases at our real estate properties by annualized base rent and square footage as of June 30, 2025 ($ and square feet in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year** | **Number of<br>Expiring<br>Leases**<sup>(1)</sup> | **Annualized <br>Base Rent**<sup>(1)</sup> | **% of Total<br>Annualized Base<br>Rent Expiring** | **Square Feet**<sup>(1)</sup> | **% of Total<br>Square Fee<br>Expiring** |
| 2025 |  |  | —% |  | —% |
| 2026 |  |  | —% |  | —% |
| 2027 |  |  | —% |  | —% |
| 2028 |  |  | —% |  | —% |
| 2029 |  |  | —% |  | —% |
| 2030 | 1 | 4000 | 2.68% | 1120 | 8.15% |
| 2031 |  |  | —% |  | —% |
| 2032 |  |  | —% |  | —% |
| 2033 |  |  | —% |  | —% |
| Thereafter | 39 | 145280 | 97% | 12627 | 92% |
| **Total** | 40 | 149280 | 100% | 13747 | 100% |

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<sup>(1)</sup> Information includes properties under development.

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**Results of Operations**

The following table sets forth the results of our operations for the three months ended June 30, 2025 and 2024 (in thousands, except per share data):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** |
| **Revenue** |  |  |
| Rental revenue | $39356 | $7473 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total revenue** | 39356 | 7473 |
| **Expenses** |  |  |
| Organizational costs |  | 204) |
| General and administrative | 2837 | 1994 |
| Management fee | 2827 | 357 |
| Performance participation allocation | 1855 | 154 |
| Depreciation and amortization | 15438 | 2548 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total expenses** | 22957 | 5257 |
| **Other income (expense)** |  |  |
| Interest income | 452 | 1630) |
| Interest expense, net | (10519) | —) |
| **Total other income (expense)** | (10067) | 1630) |
| **Net income** | $6332 | $3846 |
| Net income attributable to non-controlling interests | 39 |  |
| **Net income attributable to FNLR stockholders** | $6293 | $3846 |

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***Revenue***

*Rental Revenue*

Rental revenue increased $31.9 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 from $7.5 million to $39.4 million. The increase is primarily due to an increase in the real estate portfolio from 54 properties as of June 30, 2024 to 187 properties as of June 30, 2025.

***Expenses***

*Organizational costs*

Organizational costs decreased by $0.2 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 from $0.2 million to $0. The decrease is primarily due to us incurring the majority of various one-time organizational costs in 2023 and 2024.

*General and Administrative Expenses*

General and administrative expenses increased $0.8 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 from $2.0 million to $2.8 million. The increase is primarily due to increases in legal fees, accounting and admin-related fees, audit fees, appraisal/valuation fees, and other professional fees.

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*Management Fee*

Management fee expense increased by $2.5 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 from $0.4 to $2.8 million. The increase is primarily due to the expiration of the six month waiver in 2024.

*Performance Participation Allocation*

Performance participation allocation expense increased $1.7 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 from $0.2 to $1.9 million. The increase is primarily due to the expiration of the six month waiver in 2024.

*Depreciation and Amortization*

Depreciation and amortization expense increased $12.9 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 from $2.5 million to $15.4 million. The increase is primarily due to an increase in our real estate portfolio from 54 properties as of June 30, 2024 to 187 properties as of June 30, 2025.

***Other Income (Expense)***

*Interest Income*

Interest income decreased $1.2 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 from $1.6 million to $0.5 million. The decrease is primarily due to a decrease in cash deposited into an interest earning money market account.

*Interest Expense, net*

Interest expense, net increased $10.5 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 from $0 to $10.5 million. The increase is primarily due to borrowings on the our Credit Facilities that were entered into on August 13, 2024.

The following table sets forth the results of our operations for the six months ended June 30, 2025 and 2024 (in thousands, except per share data):

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| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** |
| **Revenue** |  |  |
| Rental revenue | $71953 | $10150 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total revenue** | 71953 | 10150 |
| **Expenses** |  |  |
| Organizational costs |  | 1957) |
| General and administrative | 6460 | 3055 |
| Management fee | 5173 | 357 |
| Performance participation allocation | 3143 | 154 |
| Depreciation and amortization | 26400 | 3350 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total expenses** | 41176 | 8873 |
| **Other income (expense)** |  |  |
| Interest income | 618 | 4025) |
| Interest expense, net | (19033) | —) |
| &nbsp;&nbsp;**Total other income (expense)** | (18415) | 4025) |
| **Net income** | $12362 | $5302 |
| Net income attributable to non-controlling interests | 64 |  |
| **Net income attributable to FNLR stockholders** | $12298 | $5302 |

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***Revenue***

*Rental Revenue*

Rental revenue increased $61.8 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 from $10.2 million to $72.0 million. The increase is primarily due to an increase in the real estate portfolio from 54 properties as of June 30, 2024 to 187 properties as of June 30, 2025.

***Expenses***

*Organizational costs*

Organizational costs decreased by $2.0 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 from $2.0 million to $0. The decrease is primarily due to us incurring the majority of various one-time organizational costs in 2023 and 2024.

*General and Administrative Expenses*

General and administrative expenses increased $3.4 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 from $3.1 million to $6.5 million. The increase is primarily due to increases in legal fees, accounting and admin-related fees, audit fees, appraisal/valuation fees, and other professional fees.

*Management Fee*

Management fee expense increased by $4.8 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024 from $0.4 million to $5.2 million. The increase is primarily due to the expiration of the six month waiver in 2024.

*Performance Participation Allocation*

Performance participation allocation expense increased $2.9 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024 from $0.2 million to $3.1 million. The increase is primarily due to the expiration of the six month waiver in 2024.

*Depreciation and Amortization*

Depreciation and amortization expense increased $23.1 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024 from $3.4 million to $26.4 million. The increase is primarily due to an increase in our real estate portfolio from 54 properties as of June 30, 2024 to 187 properties as of June 30, 2025.

***Other Income (Expense)***

*Interest Income*

Interest income decreased $3.4 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024 from $4.0 million to $0.6 million. The decrease is primarily due to a decrease in cash deposited into an interest earning money market account.

*Interest Expense, net*

Interest expense, net increased $19.0 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024 from $0 to $19.0 million. The increase is primarily due to borrowings on the our Credit Facilities that were entered into on August 13, 2024.

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**Net Asset Value**

EA RESIG, LLC, a subsidiary of Eisner Advisory Group LLC, calculates our NAV per share, which our Advisor subsequently reviews and confirms the calculations in connection therewith, in each case, in accordance with the valuation guidelines that have been approved by our board of trustees. Our total NAV presented in the following tables includes the NAV of our outstanding classes of common shares, which includes Class I, Class F-S, Class F-I, Class D-S and Class E common shares, as well as the partnership interests ("OP Units") of the Operating Partnership, if any, held by parties other than the Company. The following table provides a breakdown of the major components of our NAV as of June 30, 2025 ($ in thousands):

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| | |
|:---|:---|
| **Components of NAV** | **Amount** |
| Investments in real estate | $1723224 |
| Intangible assets | 261192 |
| Cash and cash equivalents | 5509 |
| Restricted cash | 45810 |
| Other assets | 18254 |
| Revolving credit facility | (622000) |
| Term loan | (180897) |
| Subscriptions received in advance | (41689) |
| Distribution payable | (6770) |
| Due to affiliate | (6751) |
| Other liabilities | (12276) |
| **Net Asset Value** | $1183606 |
| Number of outstanding shares/units<sup>(1)</sup> | 114518 |

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<sup>(1)</sup> Includes 2,479,245 of Class E shares of common stock and 400,746 of Class A units held by the Adviser and affiliates that are classified as Redeemable common stock and redeemable non-controlling interests, respectively.

The following table provides a breakdown of our total NAV and NAV per share/unit by class as of June 30, 2025 ($ in thousands, except per share data):

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| | | | |
|:---|:---|:---|:---|
|  | **NAV** | **Number of Outstanding<br>Shares/Units** | **NAV Per Share/Unit** |
| Class S<sup>(1)</sup> | $— |  |  |
| Class D<sup>(1)</sup> |  |  |  |
| Class I | 56359 | 5506 | $10.2359 |
| Class F-S | 103948 | 10164 | $10.2272 |
| Class F-D<sup>(1)</sup> |  |  |  |
| Class F-I | 602921 | 58645 | $10.2809 |
| Class D-S | 390059 | 37323 | $10.4508 |
| Class D-X<sup>(2)</sup> |  |  |  |
| Class E<sup>(3)</sup> | 26062 | 2479 | $10.5120 |
| OP Units<sup>(4)</sup> | 4257 | 401 | $10.6233 |
| **Total** | $1183606 | 114518 |  |

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<sup>(1)</sup> As of June 30, 2025, there were no Class S, Class D or Class F-D shares outstanding.

<sup>(2)</sup> All outstanding Class D-X shares were automatically converted to Class D-S shares effective April 1, 2025.

<sup>(3)</sup> Class E shares are classified as Redeemable common stock. The ability of the Class E holders to redeem the Class E shares for cash is outside of the Company's control, therefore, the Company has classified these Class E shares held by an affiliate of the Company as redeemable common shares.

<sup>(4)</sup> Includes the Class A OP Units held by the Adviser.

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The following table details the weighted average capitalization rate by property type, which is the key assumption used in the valuations as of June 30, 2025:

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| | |
|:---|:---|
| **Property Type** | **Capitalization Rate** |
| Industrial | 7.26% |
| Retail | 8.37% |

---

The capitalization rates are determined by the Adviser and reviewed by the Company's independent valuation advisor. A change in the capitalization rates would impact the calculation of the value of our real estate investments. For example, assuming all other factors remain unchanged, the changes listed below would result in the following effects on our investment values:

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| | | | |
|:---|:---|:---|:---|
| **Input** | **Hypothetical Change** | **Industrial** | **Retail** |
| Capitalization Rate | 0.25% Decrease | +3.66% | +3.08% |
| (Weighted Average) | 0.25% Increase | (3.41%) | (2.90%) |

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Recently acquired properties are carried at cost, which approximates fair value.

The following table reconciles equity per our Condensed Consolidated Balance Sheets to our NAV ($ in thousands):

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| | |
|:---|:---|
|  | **June 30, 2025** |
| Stockholder's equity | $1057414 |
| Redeemable common stock | 26062 |
| Redeemable non-controlling interest | 4257 |
| Total partners' capital and redeemable non-controlling interests | 1087733 |
| Adjustments: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued organizational and offering costs | 12693 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized real estate appreciation | 58297 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization under GAAP | 40428 |
| &nbsp;&nbsp;&nbsp;&nbsp;Straight-line rent | (24243) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued shareholder servicing fee | 8698 |
| **NAV** | $1183606 |

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The following details the adjustments to reconcile accounting principles generally accepted in GAAP equity and total partners' capital of the Operating Partnership to our NAV:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Accrued organization and offering costs: The Adviser agreed to advance certain organization and offering costs on our behalf through November 1, 2024. The Adviser will be reimbursed for such costs on a pro-rata basis over a 60-month period beginning November 1, 2024, the first anniversary of the date on which the Company broke escrow for its private offering. Under GAAP, organization costs have been accrued as a liability. For purposes of calculating NAV, such costs will be recognized as paid over the 60-month reimbursement period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Unrealized real estate appreciation: Investments in real estate, net are presented at their depreciated cost basis in the GAAP condensed consolidated financial statements. For purposes of calculating NAV, operating properties will be initially valued at cost and subsequently measured at fair value. Properties under development are recorded at the transaction price plus gross fundings, which include construction interest paid to the Company until the applicable construction is completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Accumulated depreciation and amortization under GAAP: The Company depreciates investments in real estate and amortize certain other assets and liabilities in accordance with GAAP. Such depreciation and amortization is not recorded for purposes of calculating our NAV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Straight-line rent: The Company recognizes rental revenue on a straight-line basis under GAAP. Such straight-line rent adjustments are excluded for purposes of calculating NAV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Accrued shareholder servicing fee: Under GAAP, we accrue the ongoing shareholder servicing fee as an offering cost at the time we sell Class F-S shares. For purposes of calculating NAV, we recognize the ongoing servicing fee as a reduction of NAV on a monthly basis.

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**Distributions**

Beginning on November 30, 2023, we declared monthly distributions for each class of our common shares, which are generally paid four days after month-end. The net distribution may vary for each class based on the applicable shareholder servicing fee, which is deducted from the monthly distribution per share and paid directly to Independent Brokerage Solutions LLC (the prior dealer manager) or, after April 11, 2025, the Dealer Manager, for further remittance to the applicable distributor.

The following table details the total net distribution for each of our share classes for the six months ended June 30, 2025:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Record Date** | **Class S** | **Class D** | **Class I** | **Class F-S** | **Class F-D** | **Class F-I** | **Class D-S** | **Class D-X** | **Class E** |
| January 31, 2025 | $— | $— | $— | $0.0480 | $— | $0.0552 | $0.0552 | $0.0552 | $0.0552 |
| February 28, 2025 |  |  | 0.0552 | 0.0480 |  | 0.0552 | 0.0552 | 0.0552 | 0.0552 |
| March 31, 2025 |  |  | 0.0574 | 0.0502 |  | 0.0574 | 0.0574 | 0.0574 | 0.0574 |
| April 30, 2025 |  |  | 0.0573 | 0.0501 |  | 0.0573 | 0.0573 |  | 0.0573 |
| May 31, 2025 |  |  | 0.0575 | 0.0524 |  | 0.0596 | 0.0594 |  | 0.0681 |
| June 30, 2025 |  |  | 0.0576 | 0.0525 |  | 0.0597 | 0.0596 |  | 0.0683 |
| **Total** | $— | $— | $0.2849 | $0.3012 | $— | $0.3443 | $0.3441 | $0.1678 | $0.3615 |

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For the six months ended June 30, 2025, we declared distributions in the amount of $34.8 million, respectively. The Company intends for long-term cumulative distributions to be funded primarily from operating cash flows. The following table details our distributions declared for the six months ended June 30, 2025 ($ in thousands):

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| | | |
|:---|:---|:---|
|  | **Six Months Ended<br>June 30, 2025** | **Six Months Ended<br>June 30, 2025** |
| **Distributions** | **Amount** | **Percentage** |
| &nbsp;&nbsp;&nbsp;&nbsp;Payable in cash | $21117 | 61% |
| &nbsp;&nbsp;&nbsp;&nbsp;Reinvested in shares | 13671 | 39% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total distribution | $34788 | 100% |
| **Sources of Distributions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash flows from operating activities | $32877 | 95% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other proceeds<sup>(1)</sup> | 1911 | 5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total sources of distributions | $34788 | 100% |
| Cash flows from operating activities | $32877 |  |

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<sup>(1)</sup> For the six months ended June 30, 2025, build-to-suit construction interest of $5.6 million was used as a source to support the dividend payments. Build-to-suit construction interest is not recognized as operating cash flow under GAAP.

**Funds from Operations**

We believe funds from operations ("FFO") is a meaningful non-GAAP supplemental measure of our operating results. Our condensed consolidated financial statements are presented using historical cost accounting which, among other things, requires depreciation of real estate investments to be calculated on a straight-line basis. As a result, our operating results imply that the value of our real estate investments have decreased over time. However, we believe that the value of our real estate investments will fluctuate over time based on market conditions and, as such, depreciation under historical cost accounting may be less informative as a measure of our performance. FFO is an operating measure defined by the National Association of Real Estate Investment Trusts ("NAREIT") that is broadly used in the REIT industry. FFO, as defined by NAREIT and presented below, is calculated as net income or loss (computed in accordance with GAAP), excluding (i) depreciation and amortization, (ii) impairment of investments in real estate, (iii) net gains or losses from sales of real estate, and (iv) similar adjustments for non-controlling interests and unconsolidated entities.

FFO should not be considered more relevant or accurate than GAAP net income (loss) in evaluating our performance. In addition, FFO should not be considered as an alternative to net income (loss) as an indication of our performance or as an alternative to cash flows from operating activities as an indication of our liquidity, but rather should be reviewed in conjunction with these and other GAAP measurements. Further, FFO is not intended to be used as liquidity measures indicative of cash flow available to fund our cash needs, including our ability to make distributions to our shareholders. In addition, our methodology for calculating FFO may differ from the methodologies employed by other companies to calculate the same or

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similar supplemental performance measures, and accordingly, our reported FFO may not be comparable to the FFO reported by other companies.

The following table presents a reconciliation of net income to FFO ($ in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| Net income attributable to FNLR stockholders | $6293 | $3846 | $12298 | $5302 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to arrive at FFO: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 15438 | 2548 | 26400 | 3350 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of investments in real estate |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net gain or loss from sale of real estate |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount attributable to non-controlling interests<br> for above adjustments | (54) |  | (92) |  |
| FFO attributable to FNLR stockholders | $21677 | $6394 | $38698 | $8652 |

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**Liquidity and Capital Resources**

***Liquidity***

We believe we have sufficient liquidity to operate our business, with immediate liquidity comprised of cash and cash equivalents of $5.5 million and $270.5 million available under the Credit Facilities as of June 30, 2025. In addition to our immediate liquidity, we obtain incremental liquidity through the sale of our common shares, from which we generated proceeds of $343.4 million for the six months ended June 30, 2025. We may incur indebtedness secured by our real estate and real estate debt investments, borrow money through unsecured financings, or incur other forms of indebtedness. We may also generate incremental liquidity through the sale of our real estate and other real estate investments. We closely monitor our liquidity position and believe we have sufficient current liquidity and access to additional liquidity to meet our financial obligations and comply with our debt covenants for at least 12 months.

Our primary liquidity needs are to fund our investments, make distributions to our shareholders, repurchase common shares pursuant to our share repurchase plan, pay operating expenses, fund capital expenditures, and repay indebtedness. Our operating expenses include, among other things, the management fee we pay to the Adviser and the performance participation allocation that the Operating Partnership pays to the Special Limited Partner, both of which will impact our liquidity to the extent the Adviser or the Special Limited Partner elect to receive such payments in cash, or subsequently redeem shares or Operating Partnership units previously issued to them.

Our cash needs for acquisitions and other capital investments will be funded primarily from the sale of common shares and through the incurrence or assumption of debt. We plan on fulfilling our outstanding commitment obligations for properties under development from the sale of common shares. Other potential future sources of capital include secured or unsecured financings from banks or other lenders and proceeds from the sale of assets. If necessary, we may use financings or other sources of capital in the event of unforeseen significant capital expenditures. We continue to believe that our current liquidity position is sufficient to meet the need of our expected investment activity.

***Capital Resources***

For the six months ended June 30, 2025, we issued and sold 33,650,839 common shares, consisting of 5,505,972 Class I shares, 7,175,643 Class F-S shares, 18,439,609 Class F-I shares, 354,419 Class D-S shares and 2,175,195 Class E shares to accredited investors in our private offering, amounting to proceeds of $343.4 million as payment for such shares, including shares issued pursuant to our distribution reinvestment plan. Additionally, 67,171 Class E shares were issued as a payment of $0.7 million of management fees incurred. 29,155 Class E shares were also issued to the board of trustees as payment for $0.3 million compensation expense for 2024 fiscal year service. We also issued 181,062 Class A units of the Operating Partnership (the "Class A OP units") to the Special Limited Partner as payment for $1.9 million 2024 performance participation allocation fees and 400,746 Class A OP units to the Adviser as payment for $4.3 million of management fees incurred. During the six months ended June 30, 2025, the Company repurchased 578,217 common shares for $6.0 million.

As of June 30, 2025, we had received aggregate proceeds of $1.2 billion from the issuance and sale of common shares in our private offering and pursuant to our distribution reinvestment program. As of June 30, 2025, after giving effect to shares issued pursuant to our distribution reinvestment plan, share transfers, conversions, and redemptions we had an aggregate of

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114,116,806 common shares outstanding, consisting of 5,505,972 Class I shares, 10,163,889 Class F-S shares, 58,644,520 Class F-I shares, 37,323,180 Class D-S shares and 2,479,245 Class E shares.

See "Recent Developments" for information relating to our Credit Facilities.

***Cash Flows***

Cash flows provided by operating activities increased $22.8 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024 from $10.1 million to $32.9 million. The increase is primarily attributable to the growth of our real estate portfolio, which increased by 133 properties for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 from 54 properties to 187 properties.

Cash flows used in investing activities increased $248.5 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 from $327.5 million to $576.0 million. The increase is primarily attributable to the growth of our real estate portfolio, of which $534.1 million was used to acquire 51 operating properties and $34.7 million was used to fund construction in progress for the three build-to-suit properties for the six months ended June 30, 2025.

Cash flows provided by financing activities increased $49.6 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 from $329.8 million to $379.5 million. The increase is primarily attributable to $119.5 million of net cash inflows from borrowings and repayments of the credit facility offset by $71.9 million decrease in proceeds from the issuance of common stock for the six months ended June 30, 2025.

**Future Cash Requirements**

The following table aggregates our contractual obligations and commitments as of June 30, 2025 ($ in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Obligations** | **Total** | **Less than 1 year** | **1-3 years** | **3-5 years** | **More than 5 years** |
| Secured Revolving Credit Facility and Term Loan Facility | $804500 | $804500 | $— | $— | $— |
| Advanced organizational and<br> offering costs | 12889 | 1487 | 8923 | 2479 |  |
| Commitments | 61451 | 26079 | 35372 |  |  |
| **Total** | $878840 | $832066 | $44295 | $2479 | $— |

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**Critical Accounting Estimates**

The preparation of our financial statements in accordance with GAAP involve significant judgments and assumptions and require estimates about matters that are inherently uncertain. These judgments will affect our reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in our condensed consolidated financial statements. The following is a summary of our significant accounting policies that we believe are the most affected by our judgments, estimates, and assumptions. See "Item 1. Financial Statements—Notes to Condensed Consolidated Financial Statements—Note 2. Summary of Significant Accounting Policies" for further descriptions of the below accounting policies.

**Investments in Real Estate**

We expect that most of our acquisitions will qualify as asset acquisitions rather than business combinations pursuant to ASC 805, *Business Combinations*. Upon the acquisition of a property, we assess the fair value of the acquired tangible and intangible assets (including land, buildings, tenant improvements, "above-market" and "below-market" leases, acquired in-place leases, other identified intangible assets and assumed liabilities) and we allocate the purchase price to the acquired assets and assumed liabilities, on a relative fair value basis. The most significant portion of the allocation is to buildings, land, and construction in process and requires the use of market based estimates and assumptions. We assess and consider fair value based on estimated cash flow projections that utilize appropriate discount and/or capitalization rates, as well as other available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions.

The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. We also consider an allocation of purchase price of other acquired intangibles, including acquired in-place leases that may have

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intangible value, such as customer relationships, including (but not limited to) the nature and extent of the existing relationship with the tenants, the tenants' credit quality and expectations of lease renewals.

Acquired above-market and below-market leases are recorded at their fair values (using a discount rate which reflects the risks associated with the leases acquired) equal to the difference between (1) the contractual amounts to be paid pursuant to each in-place lease and (2) management's estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases.

Other intangible assets acquired include amounts for in-place lease values that are based on our evaluation of the specific characteristics of each tenant's lease. Factors to be considered include estimates of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases. In estimating carrying costs, we include real estate taxes, insurance and other operating expenses, if any, and estimates of lost rentals at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, we consider leasing commissions, legal and other related expenses.

***Impairment of Investments in Real Estate and Intangible Assets***

We review real estate properties for impairment each quarter or when there is an event or change in circumstances that indicates an impaired value. If the carrying amount of the real estate investment is no longer recoverable and exceeds the fair value of such investment, an impairment loss is recognized. The impairment loss is recognized based on the excess of the carrying amount of the asset over its fair value. The evaluation of anticipated future cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Since cash flows on real estate properties considered to be "long-lived assets to be held and used" are considered on an undiscounted basis to determine whether an asset has been impaired, our strategy of holding properties over the long term directly decreases the likelihood of recording an impairment loss. If our strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized, and such loss could be material to our results. If we determine that an impairment has occurred, the affected assets must be reduced to their fair value.

We review indefinite-lived intangible assets for impairment annually or when there is an event or change in circumstances that indicates a decrease in value. If there are qualitative factors that indicate it is more likely than not that the indefinite-lived intangible asset is impaired, we calculate the fair value of the asset and record the impairment charge if the carrying amount exceeds the fair value. This new cost basis will be used for future periods when recording subsequent income or loss and cannot be written up to a higher value as a result of increases in fair value.

**Recent Accounting Pronouncements**

See "Notes to Condensed Consolidated Financial Statements—2. Summary of Significant Accounting Policies" for a discussion concerning recent accounting pronouncements.

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**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

**Quantitative and Qualitative Disclosures about Market Risk**

The primary components of our market risk are related to interest rates, credit risk, credit market values, liquidity and foreign currency exchange rates. While we do not seek to avoid risk completely, we believe that risk can be quantified from historical experience, and we seek to actively manage that risk, to earn sufficient compensation to justify taking those risks and to maintain capital levels consistent with the risks we undertake.

***Interest Rate Risk***

Through our investment portfolio and floating rate leverage facilities that we may use to finance our investment portfolio, we are exposed to risk from changes in interest rates and inflation. An increase in interest rates could increase the cost of variable rate debt that we may incur in the future, which may affect our ability to make distributions or payments to our investors. During times when inflation is greater than the increases in rent provided by many of our leases, rent increases will not keep up with the rate of inflation, which could cause the value of our properties to decline. Increased costs may have an adverse impact on our tenants if increases in their operating expenses exceed increases in revenue, which may adversely affect the tenants' ability to pay rent owed to us, which in turn could materially and adversely affect us. Inflationary expectations or periods of rising inflation could also be accompanied by rising prices of commodities that are critical to the construction and/or operation of real estate properties. The market value of our investments could potentially decline in value in times of higher inflation rates. Some of our investments could have income linked to inflation, whether by regulation or contractual arrangement or other means. However, as inflation could affect both income and expenses, any increase in income could potentially not be sufficient to cover increases in expenses. Moreover, as inflation increases, the real value of our investments and distributions therefrom can decline. If we are unable to increase the revenue and profits of our investments at times of higher inflation, we could be unable to pay out higher distributions to shareholders to compensate for the relative decrease in the value of money, thereby affecting the expected return of investors.

We generally expect to mitigate this exposure to interest rate risk by purchasing or selling various financial instruments, including interest rate cap or collar agreements and interest rate swap agreements. While we have not experienced any significant credit losses since we commenced operations, in the event of a significant rising interest rate environment and/or economic downturn, tenant vacancies or defaults could increase and result in losses, which could adversely affect our operating results and liquidity, including our ability to pay any debt obligations we may incur. However, our interest rate hedging strategies may not eliminate all of our interest rate risk due to, among other things, uncertainties in the timing and/or amounts of inflation or the general interest rate environment and/or unequal, inaccurate, or unavailable hedges to offset changes in future interest rates.

We are exposed to interest rate risk with respect to our variable rate indebtedness, where an increase in interest rates would directly result in higher interest expense costs. We may seek to manage or mitigate our exposure to interest rate risk through interest rate protection agreements to fix or cap a portion of our variable rate debt. As of June 30, 2025, the outstanding principal balance of our variable rate indebtedness was $804.5 million.

The Company's Secured Revolving Credit Facility and Term Loan Facility are indexed to SOFR. We have executed interest rate swaps with an aggregate notional amount of $310.0 million as of June 30, 2025 to hedge the risk of increasing interest rates. Assuming no changes in the balance of the Secured Revolving Credit Facility and Term Loan Facility as of June 30, 2025, a 10% increase in SOFR would result in increased interest expense of $1.6 million over a 12 month period, net of the impact of our interest rate swaps.

***Credit Risk***

We are exposed to credit risk in our investments with respect to a tenant's ability to make required rent payments to us. We intend to manage this risk by employing a credit-first approach to understanding the financial wherewithal of a tenant prior to entering into a lease and by actively monitoring the macro- and micro-economic and industry trends that impact our tenants as well as their financial statements when available.

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***Market Value Risks***

We may also be exposed to market value risk with respect to the fair value of our investments, including debt securities, and borrowings due to changes in market conditions, including real estate property values, interest rates and property cash flows. The fair value of our investments may fluctuate, therefore the amount we will realize upon any repayment, sale, or an alternative liquidation event is unknown. Within the parameters of our valuation guidelines, the valuation methodologies used to value our properties and certain of our investments will involve subjective judgments and projections and may not be accurate. Valuation methodologies will also involve assumptions and opinions about future events, which may or may not turn out to be correct. Valuations and appraisals of our properties and other investments will be only estimates of fair value. Ultimate realization of the value of an asset depends to a great extent on economic, market and other conditions beyond our control and the control of the Adviser and our independent valuation advisor. In addition, commercial property values are subject to volatility and may be adversely affected by a number of factors, including, but not limited to national, regional and local economic conditions; local real estate conditions; changes or continued weakness in specific industry segments; construction quality, age and design; demographic factors; and retroactive changes to building or similar codes and/or tax and legal considerations.

In accordance with ASC 820, *Fair Value Measurement*, the Company defines fair value based on the price that would be received upon sale of an asset or the exit price that would be paid to transfer or settle a liability in an orderly transaction between market participants at the measurement date. The Company uses a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of the three broad levels described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Level 1 – Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Level 2 – Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed.

*Valuation of assets and liabilities measured at fair value*

The Company's interest rate swap is valued by the Adviser utilizing a pricing model and valuation provided by the counterparty. The rates used are publicly available and therefore these instruments are generally classified within Level 2 of the fair value hierarchy. The following table details the Company's interest rate swaps measured at fair value on a recurring basis ($ in thousands):

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **Counterparty** | **Maturity Date** | **Fixed Rate** | **Variable Rate Index** | **Notional Amount** | **Fair Value** | **Notional Amount** | **Fair Value** |
| Goldman Sachs Bank USA | 10/21/2026 | 3.70% | One-month SOFR | $250000 | $(110) | $— | $— |
| Bank of America, National Association | 8/13/2027 | 3.35% | Daily simple SOFR | 60000 | 72 | 60000 | 948 |
| **Total Swaps** |  |  |  | $310000 | $(38) | $60000 | $948 |

---

*Valuation of liabilities not measured at fair value*

As of June 30, 2025, the Company's Secured Revolving Credit Facility and Term Loan Facility are carried at cost which approximates fair value. Fair value of the Company's indebtedness is estimated by modeling the cash flows required by the Company's debt agreements and discounting them back to the present value using an estimated market yield. The inputs used in determining the fair value of the Company's indebtedness are considered Level 3.

***Liquidity Risk***

Market disruptions may lead to a significant decline in transaction activity in all or a significant portion of the asset classes in which we intend to invest and may at the same time lead to a significant contraction in short-term and long-term debt and equity funding sources. A decline in liquidity of real estate and real estate-related investments, as well as a lack of

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availability of observable transaction data and inputs, may make it more difficult to sell our investments or determine their fair values. As a result, we may be unable to sell investments, or only be able to sell investments at a price that may be materially different from the fair values presented. In addition, a decline in market value of our assets may have particular adverse consequences in instances where we borrowed money based on the fair value of our assets.

***Foreign Currency Risk***

Any of our investments that may be denominated in a foreign currency will also be subject to risks related to fluctuations in exchange rates. We generally expect to mitigate this exposure by hedging the net currency exposure of our foreign currency assets to the U.S. Dollar. As a result, we expect to reduce our exposure to changes in portfolio value related to changes in foreign exchange rates. However, our currency hedging strategies may not eliminate all of our currency risk due to, among other things, uncertainties in the timing and/or amounts of payments received on the related investments, and/or unequal, inaccurate, or unavailable hedges to offset changes in future exchange rates.

**ITEM 4. CONTROLS AND PROCEDURES**

***Disclosure Controls and Procedures***

An evaluation of the effectiveness of the design and operation of our "disclosure controls and procedures" (as defined in Rule 13a-15(e) under the Exchange Act), as of the end of the period covered by this quarterly report on Form 10-Q was made under the supervision and with the participation of our management, including our Co-Chief Executive Officers ("Co-CEOs"), who are our principal executive officers, and our Chief Financial Officer ("CFO"), who is our principal financial officer. Based upon this evaluation, our Co-CEOs and CFO have concluded that our disclosure controls and procedures (a) are effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Co-CEOs and CFO, as appropriate to allow timely decisions regarding required disclosure.

***Changes in Internal Control over Financial Reporting***

During the period covered by this report, there have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) identified in connection with the evaluation described above that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II - OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

From time to time, we, the Adviser or Fortress may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. We may also be subject to regulatory proceedings. While the outcome of these legal or regulatory proceedings cannot be predicted with certainty, we may incur significant costs and expenses in connection with any such proceedings.

**ITEM 1A. RISK FACTORS**

For information regarding factors that could affect our results of operations, financial condition and liquidity, see the risk factors discussed in Part I. Item 1A. "Risk Factors" in our Annual Report and Part II. Item 1A. "Risk Factors" in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, filed with the SEC on May 13, 2025.

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**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

*Unregistered Sales of Equity Securities*

Except as previously reported by the Company on its current reports on Form 8-K, the Company did not sell any securities during the period covered by this Form 10-Q that were not registered under the Securities Act.

*Share Repurchases*

The Company has adopted a share repurchase plan whereby, subject to certain limitations, shareholders may request, on a monthly basis, that the Company repurchase all or any portion of their shares. The aggregate NAV of total repurchases of the Company's common shares under the Company's share repurchase plan and redemptions of Operating Partnership units is limited to no more than 2% of the Company's aggregate NAV per month (measured using the aggregate NAV attributable to shareholders as of the end of the immediately preceding month) and no more than 5% of the Company's aggregate NAV per calendar quarter (measured using the average aggregate NAV attributable to shareholders as of the end of the immediately preceding three months). Shares or units issued to the Adviser and its affiliates as payment for management fees or as reimbursements of expenses or for the Special Limited Partner's performance participation interest are not subject to these repurchase plan but exempt from the redemption limitations.

The Company is not obligated to repurchase any shares and may choose to repurchase fewer shares than have been requested to be repurchased, or none at all, in its discretion at any time. Further, the Company's board of trustees may make exceptions to, modify or suspend the Company's share repurchase plan (including to make exceptions to the repurchase limitations or purchase fewer shares than such repurchase limitations) if it deems such action to be in the Company's best interest. In the event that the Company determines to repurchase some but not all of the shares submitted for repurchase during any month, shares repurchased at the end of the month will be repurchased on a pro-rata basis.

The following table sets forth shares repurchased by the Company during the six months ended June 30, 2025 under the share repurchase plan:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total number of<br>shares purchased** | **Average price<br>paid per share** | **Total number of<br>shares purchased as<br>part of publicly<br>announced plans<br>or programs** | **Maximum number of<br>shares that may yet be<br>purchased under the<br>plans or programs**<sup>(1)</sup> |
| January 1 — January 31, 2025 |  |  |  |  |
| February 1 — February 28, 2025 |  |  |  |  |
| March 1 — March 31, 2025 | 11404 | $10.2237 | 11404 |  |
| April 1 — April 30, 2025 | 589792 | $10.4205 | 589792 |  |
| May 1 — May 30, 2025 | 137185 | $10.2739 | 137185 |  |
| June 1 — June 30, 2025 | 20898 | $10.2768 | 20898 |  |
| **Total** | 759279 |  | 759279 |  |

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<sup>(1)</sup> Repurchases are limited as set forth in our share repurchase plan described above. All requests under the share repurchase plan were satisfied.

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**ITEM 3. DEFAULTS UPON SENIOR SECURITIES.**

None.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

**ITEM 5. OTHER INFORMATION**

During the three months ended June 30, 2025, none of the Company's trustees or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, (as such terms are defined in Item 408(a) of Regulation S-K of the Securities Act).

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**ITEM 6 EXHIBITS**

*(b) Exhibits*

---

| | |
|:---|:---|
| 4.1 | [<u>Amended and Restated Share Repurchase Plan, dated April 11, 2025 (filed as Exhibit 4.1 to the Company's Current Report on April 15, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1966394/000114036125013999/ef20047394_ex4-1.htm) |
| 10.1 | [<u>Dealer Manager Agreement, dated April 11, 2025, by and among Fortress Net Lease REIT, FNLR Management LLC, as the adviser, and Fortress Wealth Solutions LLC, as the dealer manager (filed as Exhibit 10.1 to the Company's Current Report on April 15, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1966394/000114036125013999/ef20047394_ex10-1.htm) |
| 10.2 | [<u>Form of Participating Broker-Dealer Agreement by and between Fortress Wealth Solutions LLC, as the dealer manager, and participating broker-dealers (filed as Exhibit 10.2 to the Company's Current Report on April 15, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1966394/000114036125013999/ef20047394_ex10-2.htm) |
| 10.3 | [<u>Second Amendment to Credit Agreement and Incremental Facility Confirmation, dated April 11, 2025, by and among FNLR OP LP, as borrower, Fortress Net Lease REIT, as guarantor, the other guarantors party thereto, each lender and L/C Issuer party thereto, and Bank of America, N.A., as administrative agent (filed as Exhibit 10.1 to the Company's Current Report on April 15, 2025)</u>](https://www.sec.gov/Archives/edgar/data/1966394/000114036125013979/ef20047431_ex10-1.htm) |
| 10.4 | [<u>Third Amendment to Credit Agreement and New Lender Joinder Agreement, dated July 25, 2025, by and among FNLR OP LP, as borrower, Fortress Net Lease REIT, as guarantor, the other guarantors party thereto, each lender and L/C Issuer party thereto, and Bank of America, N.A., as administrative agent.</u>](ck0001966394-ex10_4.htm) |
| 31.1 | [<u>Certification of the Co-Chief Executive Officer pursuant to Exchange Act Rules Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith\*</u>](ck0001966394-ex31_1.htm) |
| 31.2 | [<u>Certification of the Co-Chief Executive Officer pursuant to Exchange Act Rules Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith\*</u>](ck0001966394-ex31_2.htm) |
| 31.3 | [<u>Certification of the Chief Financial Officer pursuant to Exchange Act Rules Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith\*</u>](ck0001966394-ex31_3.htm) |
| 32.1 | [<u>Certification of the Co-Chief Executive Officer pursuant to 18 U.S.C. Section 1350, filed herewith\*</u>](ck0001966394-ex32_1.htm) |
| 32.2 | [<u>Certification of the Co-Chief Executive Officer pursuant to 18 U.S.C. Section 1350, filed herewith\*</u>](ck0001966394-ex32_2.htm) |
| 32.3 | [<u>Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, filed herewith\*</u>](ck0001966394-ex32_3.htm) |
| 101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the inline XBRL document\*\* |
| 101.SCH | Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents\*\* |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)\*\* |

---

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\*The certifications furnished in Exhibits 32.1, 32.2 and 32.3 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.

\*\*The financial information contained in these XBRL documents is unaudited.

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**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 13, 2025

---

| | | |
|:---|:---|:---|
| **Fortress Net Lease REIT** | **Fortress Net Lease REIT** | **Fortress Net Lease REIT** |
| By: | /s/ Avraham Dreyfuss  | /s/ Avraham Dreyfuss  |
|  | Name: | Avraham Dreyfuss |
|  | Title: | Chief Financial Officer |

---

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## Exhibit 10.4

**THIRD AMENDMENT TO CREDIT AGREEMENT<br>AND NEW LENDER JOINDER AGREEMENT**

This THIRD AMENDMENT TO CREDIT AGREEMENT AND NEW LENDER JOINDER AGREEMENT (this "<u>Agreement</u>") is entered into as of July 25, 2025, by and among FNLR OP LP, a Delaware limited partnership (the "<u>Borrower</u>"), FORTRESS NET LEASE REIT, a Maryland statutory trust (the "<u>Parent</u>"), certain subsidiaries of the Parent party hereto (collectively with the Parent, the "<u>Guarantors</u>" and each individually, a "<u>Guarantor</u>"), each Lender and L/C Issuer party hereto that immediately prior to the effectiveness of this Agreement is a Lender or L/C Issuer, as the case may be, under the Credit Agreement (defined below), BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the "<u>Administrative Agent</u>") under the Credit Agreement, each of the institutions listed under "New Revolving Credit Lenders" on <u>Exhibit A</u> hereto (the "<u>New Revolving Credit Lenders</u>"), each of the lenders listed under "New Term Lenders" on <u>Exhibit A</u> hereto (the "<u>New Term Lenders</u>"; the New Term Lenders and the New Revolving Credit Lenders, referred to herein collectively, the "<u>New Lenders</u>" and each individually, a "<u>New Lender</u>"). Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.

WITNESSETH

WHEREAS, the Borrower, the Guarantors, the Lenders, the L/C Issuer and the Administrative Agent entered into a Credit Agreement, dated as of August 13, 2024 (as heretofore amended, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>" and, as amended by this Agreement, the "<u>Amended Credit Agreement</u>"), providing to the Borrower a Revolving Credit Facility and Term Facility on the terms set forth therein;

WHEREAS, pursuant to Section 2.15 of the Credit Agreement the Borrower has the right to request an increase in the aggregate principal amount of the Facilities to an amount not exceeding $1,500,000,000 through one or more increases in the existing Revolving Credit Facility and/or increases in the principal amount of the Term Facility and/or the addition of one or more new pari passu tranches of term loans;

WHEREAS, the Borrower has requested to increase the aggregate principal amount of the Facilities from $1,075,000,000 to $1,275,000,000 in the form of (i) an increase in the aggregate commitments to the Revolving Credit Facility from $892,500,000 to $1,047,500,000 (the "<u>Incremental Revolving Increase</u>") and (ii) an increase in the aggregate outstanding principal amount of the Term Loan from $182,500,000 to $227,500,000 (the "<u>Incremental Term Increase</u>"; the Incremental Revolving Increase and the Incremental Term Increase referred to herein collectively as the "<u>Incremental Facilities</u>"); and

WHEREAS, subject to the terms and conditions set forth herein and in Section 2.15 of the Credit Agreement, (i) each New Revolving Credit Lender is willing to participate in the Incremental Revolving Increase in the amount set forth opposite such New Revolving Credit Lender's name on <u>Exhibit A</u> hereto under the caption "Amount of Participation in Incremental Revolving Increase", and (ii) each New Term Lender is willing to participate in the Incremental Term Increase in the amount set forth opposite such New Term Lender's name on <u>Exhibit A</u> hereto under the caption "Amount of Participation in Incremental Term Increase".

254305524

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NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Joinder of New Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each New Revolving Credit Lender hereby agrees that from and after the Increase Effective Date (defined below), it shall have a Revolving Credit Commitment in the amount set forth opposite its name on <u>Exhibit B</u> hereto under the caption "Revolving Credit Commitment". Each New Term Lender hereby agrees that from and after the Increase Effective Date, it shall have a Term Commitment in the amount set forth opposite its name on <u>Exhibit B</u> hereto under the caption "Term Commitment". The Loan Parties and each New Lender hereby acknowledge, agree and confirm that each New Lender shall from and after the Increase Effective Date be a party to the Credit Agreement and a "Lender" for all purposes of the Credit Agreement and the other Loan Documents, and shall have all of the rights and obligations of a Lender under the Credit Agreement and the other Loan Documents as if such New Lender had executed the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each New Term Lender hereby agrees to make a Term Loan to the Borrower on the Increase Effective Date in an amount equal to the amount set forth opposite its name on <u>Exhibit B</u> hereto under the caption "Term Commitment" in accordance with the conditions and procedures set forth in Section 2.02 and 4.02 of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Each New Lender (i) represents and warrants that it (x) meets the requirements to be an Eligible Assignee (subject to such consents, if any, as may be required under Section 10.06(b)(iii) of the Credit Agreement), (y) has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 6.01(a) or (b) of the Credit Agreement, as applicable, and such documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Agreement, and (z) has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement; and (ii) agrees that it will (x) independently and without reliance upon the Administrative Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents and (y) perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Commitments and Applicable Percentages; Reallocations and Settlements.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Commitments and Applicable Percentages</u>. Each of the Administrative Agent, each Loan Party and each New Lender hereby acknowledges and agrees that the Commitments and Applicable Percentages with respect to each Lender as set forth on <u>Exhibit B</u> hereto will be the Commitments and Applicable Percentages of such Lender on the Increase Effective Date immediately after giving effect to this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Reallocations of Revolving Credit Loans and Letters of Credit</u>. If there are Revolving Credit Loans or Letters of Credit outstanding on the Increase Effective Date, the Administrative Agent shall take those steps which it deems necessary and appropriate (in its sole discretion) to result in each Revolving Credit Lender holding its Applicable Percentage (immediately after giving effect to this Agreement) of all outstanding Revolving Credit Loans and Letters of Credit, including effectuating the settlement contemplated by Section 2(c) of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Settlement Procedures</u>. If on the Increase Effective Date immediately after giving effect to this Agreement there are any Revolving Credit Loans or Letters of Credit outstanding, then (i) the participation interests of the Revolving Credit Lenders in any outstanding Letters of Credit shall be automatically reallocated among the Revolving Credit Lenders in accordance with their respective Applicable Percentages immediately after giving effect to the Incremental Revolving Increase, (ii) each New Revolving Credit Lender, shall pay to the Administrative Agent such amounts as are necessary to fund its new Applicable Percentage of all existing Revolving Credit Loans, (iii) the Administrative Agent will use the proceeds thereof to pay to the existing Revolving Credit Lenders (whose Applicable Percentage is decreasing) such amounts as are necessary so that each Revolving Credit Lender's participation in existing Revolving Credit Loans will be equal to its adjusted Applicable Percentage and (iv) if the Increase Effective Date occurs on a date other than the last day of an Interest Period applicable to any outstanding Revolving Credit Loan that is a Term SOFR Loan, then the Borrower shall pay any amounts required pursuant to Section 3.05 of the Credit Agreement on account of the payments made pursuant to clause (iii) of this clause (c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Amendments to Credit Agreement</u>. It is agreed that effective as of the Increase Effective Date the Credit Agreement shall be amended:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: <u>double-underlined text</u>), in each case, as set forth on the pages of the Credit Agreement attached as <u>Exhibit D</u> hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)by replacing Schedule 2.01A to the Credit Agreement with the Schedule 2.01A attached hereto as <u>Exhibit B</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)by replacing Exhibit B to the Credit Agreement with the Exhibit B attached hereto as <u>Exhibit C</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Titles for New Lenders</u>. On and after the Increase Effective Date, each of M&T Bank and JPMorgan Chase Bank, N.A. shall be a Joint Lead Arranger in respect of the Facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Conditions Precedent</u>. This Agreement shall be deemed effective as of the first date (such date being referred to herein as the "<u>Increase Effective Date</u>") on which all of the following conditions precedent have been satisfied or waived in writing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Administrative Agent shall have received, in each case, in form and substance reasonably satisfactory to the Administrative Agent:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.counterparts of this Agreement, duly executed by each of the Loan Parties, each New Lender, the L/C Issuer, the Administrative Agent and Lenders constituting Required Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.if requested by a New Lender, executed copies of a Revolving Credit Note and/or a Term Note, as applicable, in favor of such New Lender (which, to the extent delivered via e-mail (in a .pdf format), shall be followed promptly by originals);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.a certificate of the Borrower dated as of the Increase Effective Date signed by a Responsible Officer of the Borrower (x) certifying and attaching the resolutions adopted by each Loan Party approving or consenting to the Incremental Facilities, and (y) certifying that, before and after giving pro forma effect to the Incremental Facilities (including, all Credit Extensions to occur on the Increase Effective Date and the use of proceeds thereof), (1) the representations and warranties contained in Article V of the Credit Agreement and the other Loan Documents are true and correct in all material respects (or, (A) with respect to representations and warranties set forth in Sections 5.15(b) and 5.19 of the Credit Agreement and (B) representations and warranties qualified as to materiality or Material Adverse Effect, true and correct in all respects) on and as of the Increase Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date, and except that for purposes hereof, the representations and warranties contained in clauses (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement, (2) no Default exists or would result therefrom and (3) Availability equals or exceeds zero ($0);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.a Compliance Certificate dated as of the Increase Effective Date demonstrating compliance with the financial covenants set forth in Section 7.11 of the Credit Agreement, determined on a pro forma basis immediately after giving effect to closing of the Incremental Facilities and the Credit Extensions to be made on the Increase Effective Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.a Borrowing Base Certificate dated as of the Increase Effective Date demonstrating that Availability equals or exceeds zero ($0), determined on a pro forma basis immediately after giving effect to closing of the Incremental Facilities and the Credit Extensions to be made on the Increase Effective Date, including reasonably detailed calculations of Availability, the Borrowing Base Value and the Borrowing Base Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)All fees required to be paid by the Borrower in order for this Agreement to become effective shall have been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)(i) Upon the reasonable request of any New Lender made at least ten (10) days prior to the Increase Effective Date, the Borrower shall have provided to such New Lender, and such New Lender shall be reasonably satisfied with, the documentation and other information so requested in connection with applicable "know your customer" and anti-money-laundering rules and regulations, including, without limitation, the PATRIOT Act, in each case at least five (5) days prior to the Increase Effective Date and (ii) at least ten (10) days prior to the Increase Effective

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Date, any Loan Party that qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, shall have delivered, to each New Lender that so requests, a Beneficial Ownership Certification in relation to such Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The conditions to the making of a Credit Extension set forth in Section 4.02 of the Credit Agreement shall be satisfied or waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Ratifications</u>*.* The amendments to the Credit Agreement made pursuant to this Agreement shall be limited precisely as written and, except as expressly provided herein, shall not be deemed (i) to be a consent granted pursuant to, or a waiver, modification or forbearance of, any term or condition of the Credit Agreement or the Amended Credit Agreement or any of the instruments or agreements referred to therein or a waiver of any Default or Event of Default under the Credit Agreement or the Amended Credit Agreement, whether or not known to the Administrative Agent or any of the Lenders, or (ii) to prejudice any right or remedy which the Administrative Agent or any of the Lenders may now have or have in the future against any Person under or in connection with the Amended Credit Agreement, any of the instruments or agreements referred to therein or any of the transactions contemplated thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Reaffirmation of Obligations</u>. The Borrower and each of the other Loan Parties, acknowledges and consents to all of the terms and conditions of this Agreement and the transactions contemplated by this Agreement and agrees and affirms that all of its obligations under the Loan Documents, including in the case of each Guarantor, its guarantee of the Obligations, continues to be in full force and effect and is hereby ratified and confirmed in all respects and that such obligations shall continue to be in full force and effect and are hereby confirmed and ratified in all respects, in each case, as modified hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Loan Document</u>. The parties hereto agree that this Agreement is a Loan Document. Without limiting the foregoing, the provisions of Sections 10.04, 10.14(b), 10.14(c), 10.14(d), 10.15 and10.17 of the Credit Agreement are hereby incorporated into this Agreement as if set forth herein in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>References</u>. Each reference in the Amended Credit Agreement to "this Amendment," "hereunder," "hereof," "herein," or words of like import, and each reference in each other Loan Document (and the other documents and instruments delivered pursuant to or in connection therewith) to the "Credit Agreement", "thereunder", "thereof" or words of like import, shall mean and be a reference to the Amended Credit Agreement as the Amended Credit Agreement may in the future be amended, restated, supplemented or modified from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Governing Law</u>. THIS AGREEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS THEREOF (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

## [Signature Pages Immediately Follow]

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IN WITNESS WHEREOF, the Borrower, the Guarantors, each New Lender, each Lender party hereto, the Administrative Agent and the L/C Issuer have caused this Agreement to be executed by their officers thereunto duly authorized as of the date hereof.

FNLR OP LP, a Delaware limited partnership

By: FNLR GP LLC, its general partner

By: <u>/s/ William Turner</u> 

Name: William Turner

Title: Authorized Signatory

FORTRESS NET LEASE REIT, a Maryland statutory trust

By: <u>/s/ William Turner</u> 

Name: William Turner

Title: Authorized Signatory

[FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement]

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FNLR HOLDINGS LLC

FNLR PFG HOLDINGS LLC

SP HERN AVE ST. LOUIS MO, LLC

FNLR COMPOUNDS MATTER LLC

FNLR UNDER PRESSURE LLC

FNLR NON-FRICTION LLC

FNLR CIBM LLC

FNLR CHIPS ON THE TABLE LLC

FNLR 1SEA LLC

FNLR IBKY LLC

FNLR 1BAL LLC

FNLR 1NWB LLC

FNLR FFSC LLC

FNLR FUJI LLC

FNLR GOOD VIBRATIONS LLC

FNLR REX BANNER LLC

FNLR STEEL ROLLING LLC

FNLR URSA MINOR LLC

FNLR MSCU LLC

FNLR DEBUGGED LLC

FNLR OFCU LLC

FNLR NEED FOR SEED LLC

FNLR INCU LLC

FNLR JLCU LLC

FNLR BGSB LLC

FNLR PIPE DREAM LLC

FNLR COMPOUNDS MATTER TOO LLC

FNLR HSCU LLC

FNLR BFNB LLC

FNLR API LLC

FNLR 1SUM LLC

FNLR NSBC LLC

FNLR MVBB LLC

FNLR PINAFORE LLC

FNLR GOOD CHEMISTRY LLC

FNLR SFCU LLC

FNLR STRAIGHT SIX LLC,

each a Delaware limited liability company

By: <u>/s/ William Turner</u> 

Name: William Turner

Title: Authorized Signatory

of each of the 37 entities listed above

[FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement]

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FNLR BOMO LLC

FNLR FSBB LLC

FNLR HERE IN MY CAR LLC

FNLR EVEN FLOW LLC

FNLR DIRIGIBLE LLC,

each a Delaware limited liability company

By: <u>/s/ William Turner</u> 

Name: William Turner

Title: Authorized Signatory

of each of the 5 entities listed above

[FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement]

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**BANK OF AMERICA, N.A.**, as Administrative Agent

By: <u>/s/ Charles Troyanovski</u> 

Name: Charles Troyanovski

Title: Senior Vice President

[FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement]

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**BANK OF AMERICA, N.A.**, as a Lender and L/C Issuer

By: <u>/s/ Charles Troyanovski</u> 

Name: Charles Troyanovski

Title: Senior Vice President

[FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement]

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**CAPITAL ONE, NATIONAL ASSOCIATION**, as a Lender

By: <u>/s/ Jessica W. Phillips</u> 

Name: Jessica W. Phillips

Title: Authorized Signatory

[FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement]

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**KEYBANK NATIONAL ASSOCIATION**, as a Lender

By: <u>/s/ Tom Schmitt</u> 

Name: Tom Schmitt

Title: Senior Vice President

[FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement]

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**WELLS FARGO BANK, NATIONAL ASSOCIATION,** as a Lender

By: <u>/s/ Jackson Helms</u> 

Name: Jackson Helms

Title: Vice President

[FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement]

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**TRUIST BANK,** as a Lender

By: <u>/s/ Richard de la Vega</u> 

Name: Richard de la Vega

Title: Director

[FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement]

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**THE HUNTINGTON NATIONAL BANK,** as a Lender

By: <u>/s/ Joe White</u> 

Name: Joe White

Title: Senior Vice President

[FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement]

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**GOLDMAN SACHS BANK USA,** as a Lender

By: <u>/s/ Priyankush Goswami</u> 

Name: Priyankush Goswami

Title: Authorized Signatory

[FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement]

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**JPMORGAN CHASE BANK, N.A.,** as a New Lender

By: <u>/s/ Leonard Ho</u> 

Name: Leonard Ho

Title: Vice President

[FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement]

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**M&T BANK,** as a New Lender

By: <u>/s/ Cameron Daboll</u> 

Name: Cameron Daboll

Title: SVP / Director

[FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement]

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**<u>EXHIBIT D</u>**

**<u>TO THIRD AMENDMENT TO CREDIT AGREEMENT</u>**

**<u>AND NEW LENDER JOINDER AGREEMENT</u>**

MARKED PAGES OF THE CREDIT AGREEMENT

(See Attached)

Exhibit D to FNLR – Third Amendment to Credit Agreement and New Lender Joinder Agreement

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***EXECUTION COPY<br>CONFORMED THROUGH SECOND<u>THIRD</u> AMENDMENT***

**Deal CUSIP Number: 30339DAA8**

**Term Facility CUSIP Number: 30339DAB6**

**Revolver Facility CUSIP Number: 30339DAC4**

**CREDIT AGREEMENT**

Dated as of August 13, 2024

among

**FNLR OP LP**,<br>as the Borrower,

**FORTRESS NET LEASE REIT**<br> and**<br>CERTAIN SUBSIDIARIES OF FORTRESS NET LEASE REIT<br>FROM TIME TO TIME PARTY HERETO,**<br> as Guarantors

**BANK OF AMERICA, N.A.**,<br>as Administrative Agent<br>and<br>an L/C Issuer,

The Other L/C Issuers Party Hereto,

and

The Other Lenders Party Hereto

**CAPITAL ONE, NATIONAL ASSOCIATION,<br>KEYBANK NATIONAL ASSOCIATION,<br>and<br>WELLS FARGO BANK, NATIONAL ASSOCIATION,<br>as Syndication Agents**

**BofA SECURITIES, INC.**,<br>**CAPITAL ONE, NATIONAL ASSOCIATION**,<br>**KEYBANC CAPITAL MARKETS, INC.**,<br>**and**<br>**WELLS FARGO SECURITIES, LLC**,<br>as Joint Lead Arrangers and Joint Bookrunners

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252553357

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**TABLE OF CONTENTS**

<u>Section</u> <u>Page</u>

**Page**

Article I. DEFINITIONS AND ACCOUNTING TERMS 1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.01 Defined Terms** 1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.02 Other Interpretive Provisions** 45<u>46</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.03 Accounting Terms.** 46<u>47</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.04 Rounding** 46<u>48</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.05 Times of Day** 46<u>48</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.06 Letter of Credit Amounts** 47<u>48</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.07 Interest Rates** 47<u>48</u>

Article II. the COMMITMENTS and Credit Extensions 47<u>49</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.01 The Loans** 47<u>49</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.02 Borrowings, Conversions and Continuations of Loans.** 48<u>49</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.03 Letters of Credit.** 49<u>51</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.04 [Reserved].** 58<u>60</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.05 Prepayments.** 58<u>60</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.06 Termination or Reduction of Commitments** 59<u>61</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.07 Repayment of Loans**. 60<u>62</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.08 Interest**. 60<u>62</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.09 Fees** 61<u>62</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.10 Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate.** 61<u>63</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.11 Evidence of Debt.** 62<u>63</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.12 Payments Generally; Administrative Agent's Clawback**. 62<u>64</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13 Sharing of Payments by Lenders** 64<u>66</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.14 Extension of Maturity Date.** 65<u>66</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.15 Increase in Facilities.** 66<u>68</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.16 Cash Collateral**. 70<u>71</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.17 Defaulting Lenders**. 71<u>72</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.18 Inclusions, Exclusions and Removals of Borrowing Base Properties <u>and First Mortgage Investments</u>; Releases of Collateral and Guarantors**. 73<u>74</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.19 Appraisals; Additional Appraisals; Reappraisal Rights.** 76<u>80</u>

Article III. TAXES, YIELD PROTECTION AND ILLEGALITY 77<u>81</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.01 Taxes.** 77<u>81</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.02 Illegality** 81<u>84</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.03 Inability to Determine Rates**. 81<u>85</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.04 Increased Costs.** 83<u>87</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.05 Compensation for Losses** 84<u>88</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.06 Mitigation Obligations; Replacement of Lenders**. 85<u>88</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.07 Survival** 85<u>89</u>

Article IV. CONDITIONS PRECEDENT TO Credit Extensions 85<u>89</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.01 Conditions of Initial Credit Extension** 85<u>89</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.02 Conditions to all Credit Extensions** 88<u>92</u>

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Article V. REPRESENTATIONS AND WARRANTIES 89<u>92</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.01 Existence, Qualification and Power** 89<u>93</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.02 Authorization; No Contravention** 89<u>93</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.03 Governmental Authorization; Other Consents** 89<u>93</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.04 Binding Effect** 90<u>93</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.05 Financial Statements; No Material Adverse Effect**. 90<u>93</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.06 Litigation** 90<u>94</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.07 No Default** 90<u>94</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.08 Ownership of Property; Liens** 90<u>94</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.09 Environmental Compliance** 91<u>94</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.10 Insurance** 91<u>94</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.11 Taxes** 91<u>94</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.12 ERISA Compliance**. 91<u>95</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.13 Subsidiaries; Equity Interests** 92<u>95</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.14 Margin Regulations; Investment Company Act**. 92<u>96</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.15 Disclosure**. 92<u>96</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.16 Compliance with Laws** 93<u>96</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.17 Taxpayer Identification Number** 93<u>96</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.18 Solvency** 93<u>96</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.19 OFAC** 93<u>97</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.20 Anti-Corruption Laws; Anti-Money Laundering Laws** 93<u>97</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.21 Affected Financial Institutions** 93<u>97</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.22 Covered Entities** 93<u>97</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.23 Collateral Documents** 93<u>97</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.24 Borrowing Base Properties; Subsidiary Guarantors** 93<u>97</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.25 REIT Status** 94<u>97</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.26 Representations as to Foreign Obligors** 94<u>97</u>

Article VI. AFFIRMATIVE COVENANTS 94<u>98</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.01 Financial Statements** 95<u>98</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.02 Certificates; Other Information** 95<u>99</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.03 Notices** 97<u>101</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.04 Payment of Obligations** 98<u>101</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.05 Preservation of Existence, Etc** 98<u>102</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.06 Maintenance of Properties** 98<u>102</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.07 Maintenance of Insurance** 98<u>102</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.08 Compliance with Laws** 98<u>102</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.09 Books and Records** 99<u>102</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.10 Inspection Rights** 99<u>102</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.11 Use of Proceeds** 99<u>103</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.12 Additional Guarantors** 99<u>103</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.13 Anti-Corruption Laws; Sanctions; Anti-Money Laundering Laws** 100<u>104</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.14 Compliance with Environmental Laws** 100<u>104</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.15 Approvals and Authorizations** 100<u>104</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.16 Information Regarding Collateral** 100<u>104</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.17 Further Assurances** 101<u>105</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.18 Minimum Aggregate Leasing Requirement; Minimum Borrowing Base Property Requirement** 101<u>105</u>

Article VII. NEGATIVE COVENANTS 101<u>105</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.01 Liens** 101<u>105</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.02 Investments** 102<u>105</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.03 Indebtedness** 102<u>106</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.04 Fundamental Changes** 102<u>106</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.05 Dispositions** 103<u>106</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.06 Restricted Payments** 103<u>107</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.07 Change in Nature of Business** 104<u>108</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.08 Transactions with Affiliates** 104<u>108</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.09 Burdensome Agreements** 104<u>108</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.10 Use of Proceeds** 104<u>108</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.11 Financial Covenants.** 105<u>108</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.12 Amendments of Organization Documents** 105<u>109</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.13 Accounting Changes; Fiscal Year** 106<u>109</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.14 Compliance with Environmental Laws** 106<u>110</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.15 Sanctions** 106<u>110</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.16 Anti-Corruption Laws; Anti-Money Laundering** 106<u>110</u>

Article VIII. EVENTS OF DEFAULT AND REMEDIES 106<u>110</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.01 Events of Default** 106<u>110</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.02 Remedies Upon Event of Default** 108<u>112</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.03 Application of Funds** 109<u>113</u>

Article IX. ADMINISTRATIVE AGENT 110<u>114</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.01 Appointment and Authority** 110<u>114</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.02 Rights as a Lender** 110<u>114</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.03 Exculpatory Provisions** 111<u>114</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.04 Reliance by Administrative Agent** 112<u>116</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.05 Delegation of Duties** 112<u>116</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.06 Resignation of Administrative Agent.** 112<u>116</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.07 Non-Reliance on the Administrative Agent, the Arrangers and the Other Lenders** 114<u>117</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.08 No Other Duties, Etc** 114<u>118</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.09 Administrative Agent May File Proofs of Claim; Credit Bidding** 114<u>118</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.10 Collateral and Guaranty Matters** 116<u>119</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.11 Certain ERISA Matters.** 116<u>120</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.12 Recovery of Erroneous Payments** 117<u>121</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.13 Secured Hedge Agreements** 117<u>121</u>

Article X. MISCELLANEOUS 118<u>121</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.01 Amendments, Etc** 118<u>121</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.02 Notices; Effectiveness; Electronic Communication.** 120<u>124</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.03 No Waiver; Cumulative Remedies; Enforcement** 122<u>126</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.04 Expenses; Indemnity; Damage Waiver.** 122<u>126</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.05 Payments Set Aside** 124<u>128</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.06 Successors and Assigns.** 125<u>128</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.07 Treatment of Certain Information; Confidentiality** 130<u>134</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.08 Right of Setoff** 131<u>135</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.09 Interest Rate Limitation** 132<u>135</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.10 Integration; Effectiveness** 132<u>136</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.11 Survival of Representations and Warranties** 132<u>136</u>

iii

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.12 Severability** 132<u>136</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.13 Replacement of Lenders** 132<u>136</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.14 Governing Law; Jurisdiction; Etc.** 133<u>137</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.15 Waiver of Jury Trial** 135<u>138</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.16 No Advisory or Fiduciary Responsibility** 135<u>139</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.17 Electronic Execution; Electronic Records; Counterparts** 135<u>139</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.18 USA PATRIOT Act** 136<u>140</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.19 Authorized Persons and Authorized Signers** 137<u>140</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.20 ENTIRE AGREEMENT** 137<u>140</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.21 Acknowledgement and Consent to Bail-In of Affected Financial Institutions** 137<u>141</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.22 Acknowledgement Regarding Any Supported QFCs** 137<u>141</u>

Article XI. CONTINUING GUARANTY 138<u>142</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.01 Guaranty** 138<u>142</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.02 Rights of Lenders** 139<u>143</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.03 Certain Waivers** 139<u>143</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.04 Obligations Independent** 140<u>144</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.05 Subrogation** 140<u>144</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.06 Termination; Reinstatement** 140<u>144</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.07 Subordination** 140<u>144</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.08 Stay of Acceleration** 141<u>144</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.09 Condition of the Borrower** 141<u>144</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.10 Limitations on Enforcement** 141<u>145</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.11 Contribution** 141<u>145</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.12 Keepwell** 142<u>146</u>

iv

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"<u>Affiliate</u>" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

"<u>Aggregate Commitments</u>" means, at any time, the Commitments of all the Lenders.

"<u>Aggregate Deficit Amount</u>" has the meaning specified in <u>Section 11.11</u>.

"<u>Aggregate Excess Amount</u>" has the meaning specified in <u>Section 11.11</u>.

"<u>Aggregate Facility Amount</u>" means, at any time, the sum of (a) the Revolving Credit Facility then in effect <u>plus</u> (b) the Term Facility then in effect <u>plus</u> (c) with respect to any Incremental Term Facility then in effect, the aggregate amount of the loans of all Lenders participating in such Incremental Term Facility at such time. On the First<u>Third</u> Amendment Effective Date, the Aggregate Facility Amount is $450,000,000<u>1,275,000,000</u>.

"<u>Agreement</u>" has the meaning specified in the introductory paragraph hereto.

"<u>Applicable Fee Rate</u>" means, with respect to any day, the per annum fee rate set forth opposite the Revolver Usage for such day in the following pricing grid:

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| | |
|:---|:---|
| &nbsp;&nbsp;**Revolver Usage** | &nbsp;&nbsp;**Applicable Fee Rate** |
| &nbsp;&nbsp;< 50% | &nbsp;&nbsp;0.25% |
| &nbsp;&nbsp;≥ 50% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.15% |

---

For purposes hereof, "Revolver Usage" means, with respect to any day, the ratio (expressed as a percentage) of (a) the sum of (i) the Outstanding Amount of Revolving Loans on such day and (ii) the Outstanding Amount of L/C Obligations on such day to (b) the Aggregate Revolving Commitments in effect on such day.

"<u>Applicable Law</u>" means, as to any Person, all applicable Laws binding upon such Person or to which such a Person is subject.

"<u>Applicable Percentage</u>" means (a) in respect of the Term Facility, with respect to any Term Lender at any time, the percentage (carried out to the ninth decimal place) of the Term Facility represented by (i) on or prior to the Closing Date, such Term Lender's Term Commitment at such time, subject to adjustment as provided in <u>Section 2.17</u>, and (ii) thereafter, the principal amount of such Term Lender's Term Loans at such time and (b) in respect of the Revolving Credit Facility, with respect to any Revolving Credit Lender at any time, the percentage (carried out to the ninth decimal place) of the Revolving Credit Facility represented by such Revolving Credit Lender's Revolving Credit Commitment at such time, subject to adjustment as provided in <u>Section 2.17</u>. If the commitment of each Revolving Credit Lender to make Revolving Credit Loans and the obligation of the L/C Issuers to make L/C Credit Extensions have been terminated pursuant to <u>Section 8.02</u> or if the Revolving Credit Commitments have expired, then the Applicable Percentage of each Revolving Credit Lender in respect of the Revolving Credit Facility shall be determined based on the Applicable Percentage of such Revolving Credit Lender in respect of the Revolving Credit Facility most recently in effect, giving effect to any subsequent assignments and to any Lender's status as a Defaulting Lender at the time of determination. The initial Applicable Percentage of each Lender in respect of each Facility is set forth opposite the name of such

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Documents for the then most recently ended period of four full fiscal quarters, being not less than 1.50 to 1.00, assuming that all such Indebtedness accrues interest at an interest rate equal to the interest rate (including, for the avoidance of doubt, the relevant Applicable Margin) applicable to Daily SOFR Loans on such date.

<u>"Borrowing Base Cash Flow" means, as of any date of determination, for (subject to the proviso below) the then most recently ended period of four full fiscal quarters, with respect to all First Mortgage Investments properly included in the calculation of Borrowing Base Amount for such period, the aggregate amount of interest payable by the borrowers of, and actually received by the Consolidated Group with respect to, all such First Mortgage Investments; provided, that, the Borrowing Base Cash Flow attributable to a First Mortgage Investment that as of the last day of the relevant period has been a Loan Asset (a) for less than one full fiscal quarter, shall be the Borrowing Base Cash Flow attributable to such First Mortgage Investment for such fiscal quarter determined on a pro forma basis (based on the number of days during such fiscal quarter that such First Mortgage Investment has been a Loan Asset) multiplied by 4, (b) for at least one full fiscal quarter but less than two full fiscal quarters, shall be the Borrowing Base Cash Flow attributable to such First Mortgage Investment for the most recently ended full fiscal quarter multiplied by 4, (c) for at least two full fiscal quarters but less than three full fiscal quarters, shall be the Borrowing Base Cash Flow attributable to such First Mortgage Investment for the most recently ended two full fiscal quarters multiplied by 2, and (d) for at least three full fiscal quarters but less than four full fiscal quarters, shall be the Borrowing Base Cash Flow attributable to such First Mortgage Investment for most recently ended three full fiscal quarters multiplied by 4/3.</u>

"<u>Borrowing Base Certificate</u>" means a certificate substantially in the form of <u>Exhibit B</u>.

"<u>Borrowing Base NOI</u>" means, as of any date of determination, the <u>sum of (i) the Borrowing Base Cash Flow for all First Mortgage Investments as of such date and (ii) the</u> aggregate Net Operating Income for all Borrowing Base Properties for the then most recently ended period of four full fiscal quarters; <u>provided</u> that, for purposes of determining Borrowing Base NOI for any such period of four full fiscal quarters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if as of the last day of the relevant period any Borrowing Base Property has been an Owned Property or a Property that is the subject of an Eligible Ground Lease for less than one full fiscal quarter, the portion of Borrowing Base NOI attributable to such Borrowing Base Property shall be the Net Operating Income of such Borrowing Base Property for such fiscal quarter determined on a pro forma basis (based on the number of days during such fiscal quarter that such Property has been an Owned Property or a Property that is the subject of an Eligible Ground Lease) <u>multiplied by</u> 4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if as of the last day of the relevant period such Borrowing Base Property has been an Owned Property or a Property that is the subject of an Eligible Ground Lease for at least one full fiscal quarter but less than two full fiscal quarters, the portion of Borrowing Base NOI attributable to such Borrowing Base Property shall be the Net Operating Income of such Borrowing Base Property for the most recently ended full fiscal quarter <u>multiplied by</u> 4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if as of the last day of the relevant period such Borrowing Base Property has been an Owned Property or a Property that is the subject of an Eligible Ground Lease for at least two full fiscal quarters but less than three full fiscal quarters, the portion of Borrowing Base NOI attributable to such Borrowing Base Property shall be the Net Operating Income of such Borrowing Base Property for the most recently ended two full fiscal quarters <u>multiplied by</u> 2; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if as of the last day of the relevant period such Borrowing Base Property has been an Owned Property or a Property that is the subject of an Eligible Ground Lease for at least three full fiscal quarters but less than four full fiscal quarters, the portion of Borrowing Base NOI attributable to such Borrowing Base Property shall be the Net Operating Income of such Borrowing Base Property for the most recently ended three full fiscal quarters <u>multiplied by</u> 4/3;

<u>provided</u> that, with respect to Properties that are owned by or ground leased to a Controlled Joint Venture or a Controlled Joint Venture Subsidiary, only the Consolidated Group Pro Rata Share of the foregoing shall be included in the calculation of Borrowing Base NOI.

"<u>Borrowing Base Properties</u>" means, as of any date, all Eligible Properties properly included in the calculation of the Borrowing Base Amount on such date.

"<u>Borrowing Base Value</u>" means, as of any date of determination, an amount equal to the sum (without duplication) of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to any Borrowing Base Property that on such date of determination is a Newly Acquired Property, an amount equal to the acquisition price for such Borrowing Base Property paid by a Consolidated Group Member to a Person that is not a Consolidated Group Member or an affiliate thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any Property (other than a Newly Acquired Property or an Other Asset) that was not a Borrowing Base Property on the day prior to such date of determination and is a Borrowing Base Property as of such date, an amount equal to the Appraised Value of such Borrowing Base Property as reflected in a Current Appraisal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to any Property (other than a Newly Acquired Property or an Other Asset) that was a Borrowing Base Property on the day prior to such date of determination and remains a Borrowing Base Property as of such date, an amount equal to the Appraised Value of such Borrowing Base Property as reflected in a Current Appraisal or Current Valuation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) on and after the Collateral Release Date, with respect to any Eligible Other Asset that on such date of determination is a Borrowing Base Property, an amount equal to the aggregate undepreciated book value of such Borrowing Base Property, as adjusted in accordance with GAAP to reflect impairment charges, write-downs and losses; <u>and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(e) with respect to any First Mortgage Investment, an amount equal to one hundred percent (100%) of the then current book value thereof, as adjusted in accordance with GAAP to reflect impairment charges, write-downs and losses.</u> 

<u>provided</u> that, with respect to Properties that are owned by or ground leased to a Controlled Joint Venture or a Controlled Joint Venture Subsidiary, only the Consolidated Group Pro Rata Share of the foregoing shall be included in the calculation of Borrowing Base Value;

<u>provided</u> <u>further</u> that, notwithstanding anything to the contrary contained herein,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) on and after the Collateral Release Date, not more than fifteen percent (15%) of Borrowing Base Value at any time may be in respect of Borrowing Base Properties that are Eligible Other Assets, with any excess over such limit being excluded from calculations of Borrowing Base Value;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not more than thirty five percent (35%) of Borrowing Base Value at any time may be in respect of any single Borrowing Base Property, with any excess over such limit being excluded from calculations of Borrowing Base Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) not more than twenty percent (20%) of Borrowing Base Value at any time may be in respect of Borrowing Base Properties that are Eligible Ground Leased Properties, with any excess over such limit being excluded from calculations of Borrowing Base Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) (x) prior to the first anniversary of the Closing Date, not more than forty five percent (45%) of Borrowing Base Value and (y) on and after the first anniversary of the Closing Date, not more than thirty five (35%) of Borrowing Base Value, at any time may be attributable to Borrowing Base Properties that have related Commercial Net Leases with one or more tenants that are members of the same consolidated group for purposes of financial reporting, with any excess over such limit being excluded from calculations of Borrowing Base Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) not more than ten percent (10%) of Borrowing Base Value at any time may be in respect of Borrowing Base Properties <u>and First Mortgage Investments</u> that are located in a Specified Jurisdiction, with any excess over such limit being excluded from calculations of Borrowing Base Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) not more than ten percent (10%) of Borrowing Base Value at any time may be in respect of Borrowing Base Properties the Direct Owners of which are Controlled Joint Ventures or Controlled Joint Venture Subsidiaries, with any excess over such limit being excluded from calculations of Borrowing Base Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) not more than fifteen percent (15%) of Borrowing Base Value at any time may be in respect of Borrowing Base Properties that have Commercial Net Leases with tenants that are retail branches of banks, credit unions or other financial institutions where financial products and services are offered to the public, with any excess over such limit being excluded from calculations of Borrowing Base Value; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(viii) not more than the amount equal to the lesser of (A) ten percent (10%) of the Borrowing Base Value and (B) $200,000,000 may at any time be in respect of First Mortgage Investments, with any excess over such limit being excluded from calculations of Borrowing Base Value; and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(ix)</u> (viii) on and after the Collateral Release Date, not more than forty five percent (45%) of Borrowing Base Value at any time may be in respect of Borrowing Base Properties <u>and First Mortgage Investments, as applicable,</u> of the types set forth in clauses (i), (iii), (v), (vi) and<u>,</u> (vii) <u>and (viii)</u> above.

For the avoidance of doubt, the Borrowing Base Value of any Borrowing Base Property that is not, or at any time ceases to be, an Eligible Property, is zero ($0)<u>, and the Borrowing Base Value of any First Mortgage Investment that does not, or at any time ceases to, satisfy all of the criteria set forth in the definition of First Mortgage Investment is zero ($0)</u>.

"<u>BTS Property</u>" means an Owned Property (other than a Development Property) (a) that is being "built-to-suit" pursuant to specifications of a particular tenant (the "<u>BTS Tenant</u>") that has agreed to lease such Property from a Consolidated Group Member upon completion pursuant to a Commercial Net Lease,

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policies of the Parent, or control over the equity securities of the Parent entitled to vote for members of the board of directors or equivalent governing body of the Parent on a fully-diluted basis (and taking into account all such securities that such Person or Persons have the right to acquire pursuant to any option right) representing more than 50% of the combined voting power of such securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i) the Parent or a Wholly Owned Subsidiary of the Parent shall cease to (x) be the sole general partner of the Borrower, (y) directly or indirectly, have the power to exercise management and control of the Borrower, or (z) own, directly or indirectly, (1) 100% of the general partnership interests of the Borrower and (2) Equity Interests of the Borrower representing at least 50.1% of the total economic interests of the Equity Interests of the Borrower, in each case free and clear of all Liens (other than Permitted Equity Encumbrances) or (ii) any holder of a limited partnership interest in the Borrower is provided with or obtains voting rights with respect to such limited partnership interest that are more expansive in any respect than the voting rights afforded to limited partners of the Borrower under the Organization Documents of the Borrower in effect on the Closing Date.

"<u>Class</u>" when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Credit Loans or Term Loans and, when used in reference to any Commitment, refers to whether such Commitment is a Revolving Credit Commitment or Term Commitment.

"<u>Closing Date</u>" means the first date all the conditions precedent in <u>Section 4.01</u> are satisfied or waived in accordance with <u>Section 10.01</u>.

"<u>CME</u>" means CME Group Benchmark Administration Limited.

"<u>Code</u>" means the Internal Revenue Code of 1986.

"<u>Collateral</u>" means all of the "Collateral" or other similar term referred to in the Collateral Documents and all of the other property that is or is intended under the terms of the Collateral Documents to be subject to Liens in favor of the Administrative Agent for the benefit of the Secured Parties.

"<u>Collateral Account</u>" has the meaning specified in <u>Section 2.03(o)</u>.

"<u>Collateral Documents</u>" means, collectively, the Pledge Agreement, pledge agreement supplements or other similar agreements delivered to the Administrative Agent pursuant to <u>Section 6.12</u>, and each of the other agreements, instruments or documents that creates or perfects or purports to create or perfect a Lien in favor of the Administrative Agent for the benefit of the Secured Parties.

"<u>Collateral Release Date</u>" means the first Business Day, if any, on which each of the following conditions have been satisfied:<u>April 11, 2025.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on or prior to such date the Administrative Agent shall have received consolidated financial statements of the Parent in accordance with Section 6.01(a) or (b), as applicable, for the period of four fiscal quarters ended on such date (if such date is the last day of a fiscal quarter) or for the then most recently ended period of four full fiscal quarters (if such date is not the last day of a fiscal quarter), which financial statements demonstrate that the Total Asset Value as of the date of such financial statements was equal to or greater than $1,000,000,000;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Administrative shall have received a written notice certifying that the Collateral Release Date has occurred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no Default has occurred and is continuing on such date.

"<u>Commercial Net Lease</u>" means a lease of a Property (or a portion thereof) that is an Eligible Owned Property or Eligible Ground Leased Property that contains market terms and conditions under which the lessor is the Borrower or another Consolidated Group Member and the tenant is not a Consolidated Group Member or affiliate thereof (provided that if an affiliate of the Borrower that is not a Consolidated Group Member is an investor in any such tenant, such affiliate of the Borrower will not, as a result of such investment, be deemed to be an affiliate of such tenant), which lease is either (i) a "triple net" lease, such that the lessee is responsible for development costs, substantially all capital expenditures and property operating expenses, including maintenance, real estate taxes and insurance, containing contractual base rent increases (either at a specified percentage or CPI-based, or both) or (ii) a "double net" lease, such that the lessee is responsible for development costs, substantially all capital expenditures and property operating expenses, excluding maintenance, real estate taxes and insurance, containing contractual base rent increases (either at a specified percentage or CPI-based, or both).

"<u>Commitment</u>" means a Term Commitment or a Revolving Credit Commitment, as the context may require.

"<u>Committed Loan Notice</u>" means a notice of (a) a Term Borrowing, (b) a Revolving Credit Borrowing, (c) a conversion of Loans from one Type to the other, or (d) a continuation of Term SOFR Loans, pursuant to <u>Section 2.02(a)</u>, which shall be substantially in the form of <u>Exhibit A</u> or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible Officer of the Borrower.

"<u>Commodity Exchange Act</u>" means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

"<u>Communication</u>" means this Agreement, any Loan Document and any document, any amendment, approval, consent, information, notice, certificate, request, statement, disclosure or authorization related to any Loan Document.

"<u>Competitor</u>" shall mean (i) any Person engaged primarily in the business of net leasing owned or leased commercial real properties to third parties or (ii) any affiliate of the foregoing which is reasonably identifiable as an affiliate solely based upon the name of such affiliate; <u>provided</u>, that neither the Administrative Agent nor any Lender shall have any liability hereunder or otherwise in the event of an assignment pursuant to <u>clause (ii)</u> above to any Person not then actually known by the Administrative Agent or such Lender to be a "Competitor".

"<u>Compliance Certificate</u>" means a certificate substantially in the form of <u>Exhibit D</u>.

"<u>Conforming Changes</u>" means, with respect to the use, administration of or any conventions associated with SOFR or any proposed Successor Rate, Daily Simple SOFR or Term SOFR, as applicable, any conforming changes to the definitions of "Base Rate", "SOFR", "Daily Simple SOFR", "Term SOFR" and "Interest Period", timing and frequency of determining rates and making payments of interest and other technical, administrative or operational matters (including, for the avoidance of doubt, the definitions of "Business Day" and "U.S. Government Securities Business Day", timing of borrowing requests or prepayment, conversion or continuation notices and length of lookback periods) as may be

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funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, any L/C Issuer or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit) within two Business Days of the date when due, (b) has notified the Borrower, the Administrative Agent or any L/C Issuer in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender's obligation to fund a Loan hereunder and states that such position is based on such Lender's determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (<u>provided</u> that such Lender shall cease to be a Defaulting Lender pursuant to this <u>clause (c)</u> upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity, or (iii) become the subject of a Bail-In Action; <u>provided</u> that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of <u>clauses (a)</u> through <u>(d)</u> above, and of the effective date of such status, shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to <u>Section 2.17(b)</u>) as of the date established therefor by the Administrative Agent in a written notice of such determination, which shall be delivered by the Administrative Agent to the Borrower, each L/C Issuer and each other Lender promptly following such determination.

"<u>Designated Jurisdiction</u>" means any country or territory to the extent that such country or territory itself is the subject of any Sanction.

"<u>Development Property</u>" means a<u>an Owned</u> Property (other than a BTS Property) (a) the primary purpose of which is to be leased in the ordinary course of business pursuant to a Commercial Net Lease or to be sold upon completion, (b) as to which the construction, redevelopment or material rehabilitation of material improvements has commenced and is continuing to be performed and (c) that is classified as "development in progress" (or similar reference) on the Parent's consolidated balance sheet or as a redevelopment project (or similar reference) in any publicly filed financial and operating reporting supplement of the Parent, with any such Property remaining as a Development Property until the earlier of (i) the date on which the related Commercial Net Lease(s) with respect to 80% or more of the Property (based on net leasable area) become(s) effective and (ii) the first anniversary of the substantial completion of construction of such Property and material improvements as evidenced by a temporary or permanent certificate of occupancy; for the avoidance of doubt, on the date of the earlier of the occurrence of clause (i) or clause (ii) such Property will cease to be a Development Property.

"<u>Diligence Package</u>" has the meaning specified in <u>Section 2.18</u>.

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"<u>Direct Owner</u>" means, <u>(a)</u> as to any Property, any Person that owns a fee simple interest in such Property, owns all of the condominium interest comprising such Property, or is the lessee of such Property pursuant to a ground lease <u>and (b) as to any Loan Asset, any Person that directly owns or holds an interest in such Loan Asset</u>.

"<u>Disqualified Institution</u>" means, on any date, (a) any Person that is specifically identified by name on a written list that has been delivered to the Administrative Agent on or before the Closing Date and (b) any other Person that is a Competitor of the Borrower or any of its Subsidiaries. "Disqualified Institutions" shall exclude any Person that the Borrower has designated as no longer being a "Disqualified Institution" by written notice delivered to the Administrative Agent from time to time. The list of Disqualified Institutions may be posted on the Platform and shall be made available to a Lender upon reasonable request to the Administrative Agent in connection with a proposed assignment under <u>Section 10.06</u>.

"<u>Disposition</u>" or "<u>Dispose</u>" means the sale, transfer, license, lease or other disposition (in one transaction or in a series of transactions and whether effected pursuant to a Division or otherwise) of any property by any Person (including any sale and leaseback transaction and any issuance of Equity Interests by a Subsidiary of such Person), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

"<u>Dividing Person</u>" has the meaning assigned to it in the definition of "Division."

"<u>Division</u>" means the division of the assets, liabilities and/or obligations of a Person (the "<u>Dividing Person</u>") among two or more Persons (whether pursuant to a "plan of division" or similar arrangement), which may or may not include the Dividing Person and pursuant to which the Dividing Person may or may not survive.

"<u>Division Successor</u>" means any Person that, upon the consummation of a Division of a Dividing Person, holds all or any portion of the assets, liabilities and/or obligations previously held by such Dividing Person immediately prior to the consummation of such Division. A Dividing Person which retains any of its assets, liabilities and/or obligations after a Division shall be deemed a Division Successor upon the occurrence of such Division.

"<u>Dollar</u>" and "<u>$</u>" mean lawful money of the United States.

"<u>Domestic Subsidiary</u>" means any Subsidiary that is incorporated or organized under the laws of any state of the United States or the District of Columbia, other than a CFC. Unless otherwise specified, all references herein to a "Domestic Subsidiary" or to "Domestic Subsidiaries" shall refer to a Subsidiary or Subsidiaries of the Borrower.

"<u>DQ List</u>" has the meaning specified in <u>Section 10.06(g)(iv)</u>.

"<u>EEA Financial Institution</u>" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a Subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

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"<u>EEA Member Country</u>" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>EEA Resolution Authority</u>" means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>Electronic Copy</u>" has the meaning specified in <u>Section 10.17</u>.

"<u>Electronic Record</u>" and "<u>Electronic Signature</u>" shall have the meanings assigned to them, respectively, by 15 USC §7006, as it may be amended from time to time.

"<u>Eligible Assignee</u>" means any Person that meets the requirements to be an assignee under <u>Section 10.06(b)(iii)</u> and <u>(v)</u> (subject to such consents, if any, as may be required under <u>Section 10.06(b)(iii)</u>). For the avoidance of doubt, any Disqualified Institution or Competitor is subject to <u>Section 10.06(g)</u>.

"<u>Eligible Ground Lease</u>" means a ground lease with respect to a Property that at all times satisfies each of the following criteria: (i) the Property that is the subject of such ground lease is located in a state within the United States or the District of Columbia; (ii) <u>each Direct Owner of such ground lease, and each Indirect Owner of each such Direct Owner, is a Wholly Owned Subsidiary that is a Domestic Subsidiary, a Controlled Joint Venture or a Controlled Joint Venture Subsidiary; (iii)</u> no default has occurred and is continuing and no terminating event has occurred under such ground lease by the Borrower or any Guarantor thereunder, no event has occurred which but for the passage of time, or notice, or both would constitute a default or terminating event under such ground lease and to the knowledge of the Consolidated Group Members, there is no default or terminating event under such ground lease by the lessor thereunder, in each case, which event, default or terminating event has caused or otherwise resulted in or could reasonably be expected to cause or otherwise result in any material interference with the applicable Person's occupancy under such ground lease; (iii<u>iv</u>) such ground lease contains terms and conditions customarily required by mortgagees making a loan secured by the interest of the holder of the leasehold estate demised pursuant to a ground lease, including, without limitation, the following: (A) a remaining term (including any unexercised extension options exercisable at the ground lessee's sole election with no veto or approval rights by ground lessor or any lender to such ground lessor other than customary requirements regarding no event of default) of twenty five (25) years or more from the date the Property that is the subject of such ground lease is first included as a Borrowing Base Property (or less if the lessee has the unilateral option to purchase the fee interest (or relevant condominium interest) at the end of the lease term for a de minimis purchase price); (B) the right of the lessee to mortgage and encumber its interest in the ground leased property, and to amend the terms of any such mortgage or encumbrance, in each case, without the consent of the lessor, or if the consent of lessor is required, such consent cannot be unreasonably withheld, conditioned or delayed, whether by contract or applicable law, or is subject to satisfaction of objective criteria not constituting a discretionary approval; (C) the obligation of the lessor to give the holder of any mortgage lien on such leased property written notice of any defaults on the part of the lessee and agreement of such lessor that such lease will not be terminated until such holder has had a reasonable opportunity to cure or complete foreclosures, and fails to do so; (D) acceptable transferability of the lessee's interest under such ground lease, including ability to sublease; (E) acceptable limitations on the use of the ground leased property; (F) such ground lease is not subject to any subordination by contract or otherwise; and (G) clearly determinable rental payment terms which in no event contain profit participation rights; and (iv<u>v</u>) such ground lease is otherwise acceptable to the Administrative Agent in its reasonable discretion.

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"<u>Eligible Ground Leased Property</u>" means a Property that is the subject of an Eligible Ground Lease that (i) has not been excluded or removed as a Borrowing Base Property pursuant to <u>Section 2.18</u> and (ii) all times satisfies each of the following criteria: (a) each Direct Owner of such Eligible Ground Lease, and each Indirect Owner of each such Direct Owner, is a Wholly Owned Subsidiary that is a Domestic Subsidiary, a Controlled Joint Venture or a Controlled Joint Venture Subsidiary; (b) each Subsidiary that is a Direct Owner of such Eligible Ground Lease, or an Indirect Owner of such Direct Owner, is a Guarantor; (c<u>b</u>) at all times prior to the Collateral Release Date, all of the Equity Interests (and the right to any income therefrom or proceeds thereof) of each Subsidiary that is a Direct Owner of such Eligible Ground Lease, or an Indirect Owner of such Direct Owner, shall be pledged in favor of the Administrative Agent for the benefit of the Secured Parties pursuant to the Collateral Documents; (d<u>c</u>) such Property is occupied by tenants that are not Consolidated Group Members or affiliates thereof (provided that if an affiliate of the Borrower that is not a Consolidated Group Member is an investor in any such tenant, such affiliate of the Borrower will not, as a result of such investment, be deemed to be an affiliate of such tenant) and are tenants under Commercial Net Leases that generate income to the Direct Owner of such Eligible Ground Lease; (e<u>d</u>) such Property (and the right to any income therefrom or proceeds thereof) shall not be subject to any lien or negative pledge or any other encumbrance or restriction on the ability of the Direct Owner thereof or any Indirect Owner of such Direct Owner to transfer, finance or encumber such Property or income therefrom or proceeds thereof (in each case, other than Permitted Property Encumbrances); <u>provided</u> that any option to purchase, including any rights of first offer or rights of first refusal, granted to any tenant under a related Commercial Net Lease on customary terms consistent with past practice of the Borrower and its Subsidiaries shall not be deemed such an impermissible encumbrance or restriction under this clause (e<u>d</u>) so long as the Property can be transferred subject to the rights of such tenant; (f<u>e</u>) the related Commercial Net Lease(s) (and the right to any income therefrom or proceeds thereof) is(are) not subject to (x) any lien or negative pledge or any other encumbrance and does not contain any restriction on the ability of the Direct Owner thereof or any Indirect Owner of such Direct Owner to transfer, finance or encumber such ground lease or income therefrom or proceeds thereof or (y) any subordination by contract or otherwise (in each case, other than Permitted Property Encumbrances); (g<u>f</u>) the Borrower directly, or indirectly through a Wholly Owned Subsidiary, Controlled Joint Venture or Controlled Joint Venture Subsidiary, has the right to sell, transfer or otherwise dispose of the related Commercial Net Lease(s); (h<u>g</u>) none of the Equity Interests (or the right to any income therefrom or proceeds thereof) of the Direct Owner of such Eligible Ground Lease, or of any Indirect Owner of such Direct Owner (including, for the avoidance of doubt, all Equity Interests of any Controlled Joint Venture that is a Direct Owner or Indirect Owner thereof), are subject to any lien or negative pledge or any restriction on the ability to transfer or encumber such Equity Interests or any income therefrom or proceeds thereof (in each case, other than Permitted Equity Encumbrances); (i<u>h</u>) neither the Direct Owner of such Eligible Ground Lease nor any Indirect Owner of such Direct Owner is a borrower or guarantor of, or otherwise obligated in respect of, any Indebtedness other than (x) Indebtedness under the Facilities, and (y) in the case of an Indirect Owner, unsecured guarantees of Non-Recourse Indebtedness of a Subsidiary thereof for which recourse to such Indirect Owner is contractually limited to liability for Customary Recourse Carveouts; (j<u>i</u>) the Property that is the subject of such Eligible Ground Lease does not have any title, survey, environmental, structural, or other defects that would materially impair the profitable operation thereof and is not subject to any material condemnation or similar proceeding; (k<u>j</u>) no Material Event shall be continuing with respect to such Eligible Ground Leased Property; and (l<u>k</u>) neither the Direct Owner of such Eligible Ground Lease nor any Indirect Owner of such Direct Owner is a debtor in a proceeding under any Debtor Relief Law.

"<u>Eligible Other Asset</u>" means a Development Property or a BTS Property that (i) has not been excluded or removed as a Borrowing Base Property pursuant to the <u>Section 2.18</u> and (ii) all times satisfies each of the following criteria: (a) each Direct Owner of such Other Asset, and each Indirect Owner of each such Direct Owner, is a Wholly Owned Subsidiary that is a Domestic Subsidiary, a Controlled Joint Venture or a Controlled Joint Venture Subsidiary; (b) each Subsidiary that is a Direct Owner of such Property, or an Indirect Owner of such Direct Owner, is a Guarantor; (c<u>b</u>) at all times prior to the Collateral Release

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Date, all of the Equity Interests (and the right to any income therefrom or proceeds thereof) of each Subsidiary (other than an Excluded Foreign Subsidiary) that is a Direct Owner of such Property, or an Indirect Owner of such Direct Owner, shall be pledged in favor of the Administrative Agent for the benefit of the Secured Parties pursuant to the Collateral Documents; (d<u>c</u>) in the case of a BTS Property, (i) the Direct Owner of such Other Asset has signed a Commercial Net Lease with a tenant that is not a Consolidated Group Member or an affiliate thereof (provided that if an affiliate of the Borrower that is not a Consolidated Group Member is an investor in any such tenant, such affiliate of the Borrower will not, as a result of such investment, be deemed to be an affiliate of such tenant) that has a term longer than ten (10) years, (ii) such Commercial Net Lease (and the right to any income therefrom or proceeds thereof) is not subject to (x) any lien or negative pledge or any other encumbrance and does not contain any restriction on the ability of the Direct Owner thereof or any Indirect Owner of such Direct Owner to transfer, finance or encumber such ground lease or income therefrom or proceeds thereof or (y) any subordination by contract or otherwise (in each case, other than Permitted Property Encumbrances), and (iii) the Borrower directly, or indirectly through a Wholly Owned Subsidiary, a Controlled Joint Venture or Controlled Joint Venture Subsidiary, has the right to sell, transfer or otherwise dispose of such Commercial Net Lease; (e<u>d</u>) such Property (and the right to any income therefrom or proceeds thereof) shall not be subject to any lien or negative pledge or any other encumbrance or restriction on the ability of the Direct Owner thereof or any Indirect Owner of such Direct Owner to transfer, finance or encumber such Property or income therefrom or proceeds thereof (in each case, other than Permitted Property Encumbrances); <u>provided</u> that any option to purchase, including any rights of first offer or rights of first refusal, granted to any tenant under a related Commercial Net Lease on customary terms consistent with past practice of the Borrower and its Subsidiaries shall not be deemed such an impermissible encumbrance or restriction under this clause (e<u>d</u>) so long as the Property can be transferred subject to the rights of such tenant; (f<u>e</u>) none of the Equity Interests (or the right to any income therefrom or proceeds thereof) of the Direct Owner of such Property, or of any Indirect Owner of such Direct Owner (including, for the avoidance of doubt, all Equity Interests of any Controlled Joint Venture that is a Direct Owner or Indirect Owner thereof), are subject to any lien or negative pledge or any restriction on the ability to transfer or encumber such Equity Interests or any income therefrom or proceeds thereof (in each case, other than Permitted Equity Encumbrances); (g<u>f</u>) neither the Direct Owner of such Property nor any Indirect Owner of such Direct Owner is a borrower or guarantor of, or otherwise obligated in respect of, any Indebtedness other than (x) Indebtedness under the Facilities, and (y) in the case of an Indirect Owner, unsecured guarantees of Non-Recourse Indebtedness of a Subsidiary thereof for which recourse to such Indirect Owner is contractually limited to liability for Customary Recourse Carveouts; (h<u>g</u>) such Property does not have any title, survey, environmental, structural, or other defects that would materially impair the profitable operation thereof and is not subject to any material condemnation or similar proceeding; (i<u>h</u>) no Material Event shall be continuing with respect to such Other Asset; (j<u>i</u>) neither the Direct Owner of such Property nor any Indirect Owner of such Direct Owner is a debtor in a proceeding under any Debtor Relief Law; and (k<u>j</u>) such Property is being developed for use as an industrial, retail or distribution center or as may be approved by the Administrative Agent.

"<u>Eligible Owned Property</u>" means an Owned Property that (i) has not been excluded or removed as a Borrowing Base Property pursuant to <u>Section 2.18</u> and (ii) all times satisfies each of the following criteria: (a) each Direct Owner of such Owned Property, and each Indirect Owner of each such Direct Owner, is a Wholly Owned Subsidiary (that is a Domestic Subsidiary in the case where the Property is located in a state of the United States or the District of Columbia), a Controlled Joint Venture or a Controlled Joint Venture Subsidiary; (b) each Subsidiary (other than an Excluded Foreign Subsidiary) that is a Direct Owner of such Property, or an Indirect Owner of such Direct Owner, is a Guarantor; (c<u>b</u>) at all times prior to the Collateral Release Date, all of the Equity Interests (and the right to any income therefrom or proceeds thereof) of each Subsidiary (other than an Excluded Foreign Subsidiary) that is a Direct Owner of such Owned Property, or an Indirect Owner of such Direct Owner, shall be pledged in favor of the Administrative Agent for the benefit of the Secured Parties pursuant to the Collateral Documents; (d<u>c</u>) such Owned Property is occupied by tenants that are not Consolidated Group Members or affiliates thereof (provided

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that if an affiliate of the Borrower that is not a Consolidated Group Member is an investor in any such tenant, such affiliate of the Borrower will not, as a result of such investment, be deemed to be an affiliate of such tenant) and are tenants under Commercial Net Leases that generate income to the Direct Owner of such Owned Property; (e<u>d</u>) such Owned Property (and the right to any income therefrom or proceeds thereof) shall not be subject to any lien or negative pledge or any other encumbrance or restriction on the ability of the Direct Owner thereof or any Indirect Owner of such Direct Owner to transfer, finance or encumber such Owned Property or income therefrom or proceeds thereof (in each case, other than Permitted Property Encumbrances); provided that any option to purchase, including any rights of first offer or rights of first refusal, granted to any tenant under a related Commercial Net Lease on customary terms consistent with past practice of the Borrower and its Subsidiaries shall not be deemed such an impermissible encumbrance or restriction under this clause (e<u>d</u>) so long as the Owned Property can be transferred subject to the rights of such tenant; (f<u>e</u>) the related Commercial Net Lease(s) (and the right to any income therefrom or proceeds thereof) is(are) not subject to (x) any lien or negative pledge or any other encumbrance and does not contain any restriction on the ability of the Direct Owner thereof or any Indirect Owner of such Direct Owner to transfer, finance or encumber such ground lease or income therefrom or proceeds thereof or (y) any subordination by contract or otherwise (in each case, other than Permitted Property Encumbrances); (g<u>f</u>) the Borrower directly, or indirectly through a Wholly Owned Subsidiary, a Controlled Joint Venture or Controlled Joint Venture Subsidiary, has the right to sell, transfer or otherwise dispose of the related Commercial Net Lease(s); (h<u>g</u>) none of the Equity Interests (or the right to any income therefrom or proceeds thereof) of the Direct Owner of such Owned Property, or of any Indirect Owner of such Direct Owner (including, for the avoidance of doubt, all Equity Interests of any Controlled Joint Venture that is a Direct Owner or Indirect Owner thereof), are subject to any lien or negative pledge or any restriction on the ability to transfer or encumber such Equity Interests or any income therefrom or proceeds thereof (in each case, other than Permitted Equity Encumbrances); (i<u>h</u>) neither the Direct Owner of such Owned Property nor any Indirect Owner of such Direct Owner is a borrower or guarantor of, or otherwise obligated in respect of, any Indebtedness other than (x) Indebtedness under the Facilities, and (y) in the case of an Indirect Owner, unsecured guarantees of Non-Recourse Indebtedness of a Subsidiary thereof for which recourse to such Indirect Owner is contractually limited to liability for Customary Recourse Carveouts; (j<u>i</u>) such Owned Property does not have any title, survey, environmental, structural, or other defects that would materially impair the profitable operation thereof and is not subject to any material condemnation or similar proceeding; (k<u>j</u>) no Material Event shall be continuing with respect to such Owned Property; (l<u>k</u>) neither the Direct Owner of such Owned Property nor any Indirect Owner of such Direct Owner is a debtor in a proceeding under any Debtor Relief Law; and (m<u>l</u>) in the case of an Owned Property that is a Tax Incentive Property: (i) all related Tax Incentive Indebtedness is non-recourse to the Loan Parties and any successors and/or assigns thereof, (ii) the Direct Owner is the purchaser of the taxable bonds, or holder of the applicable notes or other obligations issued or to be issued in connection with such Tax Incentive Indebtedness and shall remain the owner or holder thereof, (iii) the Direct Owner has the option under the related Tax Incentive Indebtedness documents to re-acquire title to all or any portion of such Tax Incentive Property for a nominal sum at any time without further consent of the applicable Governmental Authority or any other party, and (iv) no documentation entered into in connection with such Tax Incentive Property or Tax Incentive Indebtedness shall (A) limit in any material respect the use by the Direct Owner of its property or assets (including the applicable Tax Incentive Property), except as may be required by applicable law to maintain the designation of the Tax Incentive Property as a "project" pursuant to the applicable legislation governing such tax incentive structures, (B) limit the ability of the Direct Owner to finance its interest in the Tax Incentive Property, including mortgaging any leasehold estate created in connection therewith, (C) limit the ability of the Direct Owner to transfer its interest in the Tax Incentive Property, (D) contain a "clawback" provision pursuant to which there could be an obligation by the Borrower or any other Consolidated Group Member to repay a material portion of prior

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such Lender immediately before it changed its Lending Office, (c) Taxes attributable to such Recipient's failure to comply with <u>Section 3.01(g)</u> and (d) any U.S. federal withholding Taxes imposed pursuant to FATCA.

"<u>Extension Effective Date</u>" has the meaning specified in <u>Section 2.14(b)</u>.

"<u>Facility</u>" means the Term Facility and the Revolving Credit Facility, as the context may require.

"<u>FASB ASC</u>" means the Accounting Standards Codification of the Financial Accounting Standards Board.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with) and any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code, as of the Closing Date (or any amended or successor version described above) and any intergovernmental agreement (and related fiscal or regulatory legislation, or related official rules or practices) implementing the foregoing.

"<u>Federal Funds Rate</u>" means, for any day, the rate per annum calculated by the Federal Reserve Bank of New York based on such day's federal funds transactions by depository institutions (as determined in such manner as the Federal Reserve Bank of New York shall set forth on its public website from time to time) and published on the next succeeding Business Day by the Federal Reserve Bank of New York as the federal funds effective rate; <u>provided</u> that if the Federal Funds Rate as so determined would be less than zero, such rate shall be deemed to be zero for purposes of this Agreement and the other Loan Documents.

"<u>Fee Letter</u>" means any letter agreement entered into among the Borrower and an Arranger with respect to arranger fees payable to such Arranger in connection with the arrangement of commitments under this Agreement, including the letter agreement, dated July 31, 2024, among the Borrower, the Administrative Agent and BofA Securities, Inc., as sole lead arranger and sole bookrunner, as amended and restated as of August 13, 2024.

"First Amendment Effective Date" mean October 18, 2024.

<u>"First Mortgage Investment" means a Loan Asset that (a) has not been excluded or removed from the calculation of Borrowing Base Value, Borrowing Base Amount and Total Asset Value pursuant to Section 2.18 and (b) at all times satisfies each of the following criteria: (i) each Subsidiary that is a Direct Owner of such Loan Asset, or an Indirect Owner of such Direct Owner, is a Guarantor; (ii) each Property securing such Loan Asset (x) is located in a state of the United States or in the District of Columbia, and (y) is not an office property; (iii) no borrower or other Person that has a payment obligation with respect to such Loan Asset is (x) a Consolidated Group Member or (y) a debtor in a proceeding under any Debtor Relief Law; (iv) such Loan Asset (and the right to any income therefrom or proceeds thereof) is not subject to any lien or negative pledge or any other encumbrance or restriction on the ability of the Direct Owner thereof or any Indirect Owner of such Direct Owner to transfer, finance or encumber such Loan Asset or income therefrom or proceeds thereof (in each case, other than Permitted Loan Asset Encumbrances); (v) none of the Equity Interests (or the right to any income therefrom or proceeds thereof) of the Direct Owner of such Loan Asset, or of any Indirect Owner of such Direct Owner, are subject to any lien or negative pledge or any restriction on the ability to transfer or encumber such Equity Interests or any income therefrom or proceeds thereof (in each case, other than Permitted Equity Encumbrances); (vi) neither the Direct Owner of such Loan Asset nor any Indirect Owner of such Direct Owner is (x) a borrower or guarantor of, or otherwise obligated in respect of, any Indebtedness other than Indebtedness under the Facilities or (y) a debtor in a proceeding under any Debtor Relief Law; and (vii) no borrower with respect</u> 

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<u>to such Loan Asset is delinquent forty-five (45) days or more in any payment of interest or principal payments thereunder.</u> 

"<u>Fixed Charge Coverage Ratio</u>" means, as of any date of determination, for the period of four fiscal quarters ended on such date (if such date is the last day of a fiscal quarter) or for the then most recently ended period of four full fiscal quarters (if such date is not the last day of a fiscal quarter), the ratio of Consolidated EBITDA to Fixed Charges; <u>provided</u> that in the case of (i) the last day of the fiscal quarter ended June 30, 2024, Consolidated EBITDA and Fixed Charges shall be calculated for the fiscal quarter ending on such date <u>multiplied by</u> 4, (ii) the last day of the fiscal quarter ending September 30, 2024, Consolidated EBITDA and Fixed Charges shall be calculated for the two (2) consecutive fiscal quarter period ending on such date <u>multiplied by</u> 2, and (iii) the last day of the fiscal quarter ending December 31, 2024, Consolidated EBITDA and Fixed Charges shall be for the three (3) consecutive fiscal quarter period ending on such date <u>multiplied by</u> 4/3.

"<u>Fixed Charges</u>" means, for the Consolidated Group and for any period, without duplication, the sum of (a) Interest Expense for such period, <u>plus</u> (b) all regularly scheduled principal payments made or required to be made with respect to Indebtedness of the Consolidated Group Members during such period, other than any balloon or bullet payments necessary to repay maturing Indebtedness in full, <u>plus</u> (c) Restricted Payments made with respect to preferred Equity Interests of any Consolidated Group Member that are paid in cash during such period to a Person that is not the Parent or a Wholly Owned Subsidiary thereof, in each case for such period, <u>plus</u> (d) the Consolidated Group Pro Rata Share of the foregoing items attributable to the Consolidated Group's ownership interests in Unconsolidated Affiliates; <u>provided</u> that, for purposes of calculating Fixed Charges, with respect to any Non-Wholly Owned Consolidated Subsidiary, only the Consolidated Group Pro Rata Share of the foregoing items and components attributable to the Consolidated Group's interests in such Non-Wholly Owned Consolidated Subsidiary shall be included in such calculation.

"<u>Foreign Lender</u>" means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes. For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.

"<u>Foreign Obligor</u>" means a Loan Party that is a Foreign Subsidiary.

"<u>Foreign Subsidiary</u>" means any Subsidiary that is not a Domestic Subsidiary.

"<u>FRB</u>" means the Board of Governors of the Federal Reserve System of the United States.

"<u>Fronting Exposure</u>" means, at any time there is a Defaulting Lender, with respect to any L/C Issuer, such Defaulting Lender's Applicable Percentage of the outstanding L/C Obligations other than L/C Obligations as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof.

"<u>Fund</u>" means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

"<u>GAAP</u>" means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified

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"<u>Letter of Credit Report</u>" means a report of outstanding Letters of Credit and information related thereto in form set forth as <u>Exhibit L</u> attached hereto.

"<u>Letter of Credit Sublimit</u>" means an amount equal to $25,000,000. The Letter of Credit Sublimit is part of, and not in addition to, the Revolving Credit Facility.

"<u>Lien</u>" means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, easement, right-of-way or other encumbrance on title to real property, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property and any financing lease having substantially the same economic effect as any of the foregoing).

"<u>Loan</u>" means an extension of credit by a Lender to the Borrower under <u>Article II</u> in the form of a Term Loan or a Revolving Credit Loan.

<u>"Loan Asset" means a performing loan or advance that is (a) denominated in Dollars, (b) owned or held by one or more of the Borrower and its Wholly Owned Subsidiaries that are Domestic Subsidiaries, and (c) secured by a first priority mortgage, deed of trust or similar security instrument with respect to one or more Properties in favor of such Borrower or Subsidiary.</u>

<u>"Loan Asset Inclusion Effective Date" has the meaning specified in Section 2.18(b)(ii).</u>

"<u>Loan Documents</u>" means this Agreement, including schedules and exhibits hereto, each Note, each Issuer Document, any agreement creating or perfecting rights in Cash Collateral pursuant to the provisions of <u>Section 2.16</u> of this Agreement, the Guaranty, the Collateral Documents, and any amendments, modifications or supplements hereto or to any other Loan Document or waivers hereof or to any other Loan Document.

<u>"Loan-to-Value Ratio" means, on any date with respect to any Loan Asset, the ratio (expressed as a percentage) (i) the numerator of which is the aggregate outstanding principal amount of such Loan Asset at such time and (ii) the denominator of which is the appraised value of the Property that secures such Loan Asset as reflected in an Acceptable Appraisal that has been received by the Administrative Agent on or prior to such date.</u> 

"<u>Loan Parties</u>" means, collectively, the Borrower and each Guarantor and shall also include the General Partner (regardless of whether such Person is a Guarantor).

"<u>Material Adverse Effect</u>" means (a) a material adverse change in, or a material adverse effect upon, the operations, business, assets, properties, liabilities (actual or contingent), or condition (financial or otherwise) of the Borrower or of the Parent and its Subsidiaries taken as a whole; or (b) a material adverse effect on (i) the rights and remedies of the Administrative Agent or any Lender under any Loan Documents or of the ability of the Loan Parties taken as a whole to perform their Obligations under any Loan Document, or (ii) the legality, validity, binding effect or enforceability against any Loan Party of any Loan Document to which it is a party.

"<u>Material Acquisition</u>" means the acquisition (in one or a series of related transactions) of all or substantially all of the assets or Equity Interests of a Person or any division, line of business or business unit of a Person for an aggregate consideration in an amount that exceeds ten percent (10%) of Total Asset Value as of the then most recently ended fiscal quarter.

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"<u>Multiple Employer Plan</u>" means a Plan which has two or more contributing sponsors (including the Borrower or any ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.

"<u>Net Operating Income</u>" means, for any period, with respect to any Borrowing Base Property, an amount equal to (a) income derived by the Direct Owner thereof from the operation of such Borrowing Base Property as determined in accordance with GAAP, minus (b) the amount of all expenses (as determined in accordance with GAAP) incurred in connection with, and directly attributable to, the ownership and operation by the Direct Owner of such Borrowing Base Property for such period, and amounts accrued by any Consolidated Group Member for the payment of real estate taxes and insurance premiums, but excluding (1) any general and administrative expenses, and acquisition costs, related to the operation of the Parent and its Consolidated Subsidiaries, (2) any interest expense or other debt service charges and (3) any non-cash charges such as depreciation or amortization of financing costs).

"<u>New Lender Joinder Agreement</u>" has the meaning specified in <u>Section 2.15(c)</u>.

"<u>Newly Acquired Property</u>" means, as of any date, a Property (other than an unimproved land holding, a BTS Property, or a Development Property) that has been owned in fee simple or as a condominium interest, or a Property that has been ground leased pursuant to an Eligible Ground Lease, in each case by a Consolidated Group Member for a period of less than twelve consecutive months as of such date (the last day of such twelve month period referred to as the "<u>Property Transition Date</u>"); <u>provided</u>, that prior to the applicable Property Transition Date the Borrower may by written notice to the Administrative Agent designate any Newly Acquired Property as an Eligible Owned Property or Eligible Ground Leased Property, as applicable, subject to, and only so long as, such Property satisfies all of the applicable criteria required under this Agreement to be included as a new Borrowing Base Property.

<u>"Nominated Loan Asset" has the meaning specified in Section 2.18(b).</u>

"<u>Nominated Property</u>" has the meaning specified in <u>Section 2.18(a)</u>.

"<u>Non-Consenting Lender</u>" means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all Lenders or all affected Lenders in accordance with the terms of <u>Section 10.01</u> and (b) has been approved by the Required Lenders.

"<u>Non-Defaulting Lender</u>" means, at any time, each Lender that is not a Defaulting Lender at such time.

"<u>Non-Extension Notice Date</u>" has the meaning specified in <u>Section 2.03(b)</u>.

"<u>Non-Recourse Indebtedness</u>" means, with respect to any Person, (a) any Indebtedness of such Person in which the holder of such Indebtedness may not look to such Person for repayment, other than to the extent of any security therefor or pursuant to Customary Non-Recourse Carveouts, (b) if such Person is a single asset entity, any Indebtedness of such Person (other than Indebtedness described in the immediately following clause (c)), or (c) if such Person is a single asset holding company, any Indebtedness of such single asset holding company resulting from a guarantee of, or lien securing, Indebtedness of a single asset entity that is a subsidiary of such single asset holding company, so long as, in each case, either (i) the holder of such Indebtedness has no recourse to such single asset holding company for repayment, other than to the Equity Interests held by such single asset holding company in such single asset entity or pursuant to Customary Non-Recourse Carveouts or (ii) such single asset

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any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

"<u>Other Taxes</u>" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to <u>Section 3.06</u>).

"<u>Outstanding Amount</u>" means (a) with respect to Term Loans and Revolving Credit Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Term Loans and Revolving Credit Loans, as the case may be, occurring on such date; and (b) with respect to any L/C Obligations on any date, the amount of such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any reimbursements by the Borrower of Unreimbursed Amounts.

"<u>Owned Property</u>" means a Property that is (a) owned in fee simple or as a condominium interest by one or more of the Borrower and its Wholly Owned Subsidiaries <u>(that are Domestic Subsidiaries in the case where the Property is located in a state of the United States or the District of Columbia)</u>, a Controlled Joint Venture or a Controlled Joint Venture Subsidiary<u>, and each Indirect Owner of each such Direct Owner, is a Wholly Owned Subsidiary, a Controlled Joint Venture or a Controlled Joint Venture Subsidiary;</u> or (b) a Tax Incentive Property.

"<u>Owner</u>" with respect to any Property <u>or Loan Asset</u>, means the Direct Owner of such Property <u>or Loan Asset, as the case may be,</u> and each Indirect Owner of such Direct Owner, as the context requires.

"<u>Parent</u>" has the meaning specified in the introductory paragraph hereto.

"<u>Parent Entities</u>" means, collectively, the Parent and each Subsidiary thereof (if any) that owns an Equity Interest in the Borrower, and "<u>Parent Entity</u>" means any of them individually.

"<u>Participant</u>" has the meaning specified in <u>Section 10.06(d)</u>.

"<u>Participant Register</u>" has the meaning specified in <u>Section 10.06(d)</u>.

"<u>PATRIOT Act</u>" has the meaning specified in <u>Section 10.18</u>.

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation.

"<u>Pension Funding Rules</u>" means the rules of the Code and ERISA regarding minimum funding standards with respect to Pension Plans and set forth in Sections 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.

"<u>Pension Plan</u>" means any employee pension benefit plan (including a Multiple Employer Plan or a Multiemployer Plan) that is maintained or is contributed to by the Borrower and any ERISA Affiliate or with respect to which the Borrower or any ERISA Affiliate has any liability and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code.

"<u>Permitted Equity Encumbrances</u>" means:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens arising under any Loan Document; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens for Taxes which are (i) immaterial to the Consolidated Group, taken as a whole, (ii) not delinquent for a period of more than thirty (30) days or (iii) being contested in good faith and by appropriate actions or proceedings diligently conducted (which actions or proceedings have the effect of preventing the forfeiture or sale of the property of assets subject to any such lien), if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP.

<u>"Permitted Loan Asset Encumbrances" means:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a) Liens arising under any Loan Document; and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b) commercially reasonable restrictions on transfers of a First Mortgage Investment that are set forth in the documentation governing such First Mortgage Investment; provided, that for the avoidance of doubt, in order to constitute a Permitted Loan Asset Encumbrance under this clause (b), (i) any identified restricted transferees or categories thereof must be approved by the Administrative Agent and (ii) in no event may any such restrictions limit the ability to transfer (including by way of foreclosure) any portion of such First Mortgage Investment to the Administrative Agent (or a Wholly-Owned Subsidiary of the Administrative Agent or the Lenders).</u>

"<u>Permitted Property Encumbrances</u>" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a) Liens arising under any Loan Document;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b)</u> (a) Liens for Taxes not yet delinquent or which are being contested by a Consolidated Group Member (or which are being contested by a tenant under a Commercial Net Lease pursuant to the provisions thereof) in good faith and by appropriate proceedings diligently conducted (which actions or proceedings have the effect of preventing the forfeiture or sale of the property or assets subject to any such lien), if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u> (b) easements, zoning restrictions, rights of way and similar encumbrances on real property imposed by Laws or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or materially interfere with the ordinary conduct of business of any Consolidated Group Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d)</u> (c) the rights of tenants under Commercial Net Leases entered into in the ordinary course of business; <u>provided</u> that such rights do not in any case materially detract from the value of the Property subject thereto or materially interfere with the Direct Owner's conduct of business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(e)</u> (d) rights of lessors under Eligible Ground Leases.

"<u>Person</u>" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

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"<u>Plan</u>" means any employee benefit plan within the meaning of Section 3(3) of ERISA (including a Pension Plan), maintained for employees of the Borrower or any ERISA Affiliate or any such Plan to which the Borrower or any ERISA Affiliate is required to contribute on behalf of any of its employees.

"<u>Platform</u>" has the meaning specified in <u>Section 6.02</u>.

"<u>Pledge Agreement</u>" has the meaning specified in <u>Section 4.01(a)(iii)</u>.

"<u>Property</u>" means as to any Person, all of the right, title, and interest of such Person in and to a commercial real estate parcel, including related land, improvements, common elements and fixtures, that is located in a state within the United States, the District of Columbia or a Specified Jurisdiction.

<u>"Property Inclusion Effective Date" has the meaning specified in Section 2.18(a)(iii)</u>

"<u>PTE</u>" means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"<u>Public Lender</u>" has the meaning specified in <u>Section 6.02</u>.

"<u>Qualified ECP Guarantor</u>" shall mean, at any time, each Loan Party with total assets exceeding $10,000,000 or that qualifies at such time as an "eligible contract participant" under the Commodity Exchange Act and can cause another person to qualify as an "eligible contract participant" at such time under §1a(18)(A)(v)(II) of the Commodity Exchange Act.

"<u>Recipient</u>" means the Administrative Agent, any Lender, any L/C Issuer or any other recipient of any payment to be made by or on account of any obligation of any Loan Party hereunder.

"<u>Recourse Indebtedness</u>" means Indebtedness other than Non-Recourse Indebtedness.

"<u>Register</u>" has the meaning specified in <u>Section 10.06(c)</u>.

"<u>Regulation U</u>" means Regulation U of the FRB, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

"<u>REIT Status</u>" means, with respect to any Person, (a) the qualification of such Person as a real estate investment trust under the provisions of Sections 856 et seq. of the Code and (b) the applicability to such Person and its shareholders of the method of taxation provided for in Sections 857 et seq. of the Code.

"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors, consultants, service providers and representatives of such Person and of such Person's Affiliates.

"<u>Release Conditions</u>" means, with respect to (i) the release of any Subsidiary Guarantor from its obligations under the Guaranty, (ii) the release of any Collateral, including any release of Collateral on the Collateral Release Date, or (iii) the removal of any Borrowing Base Property <u>or First Mortgage Investment</u> from the calculation of the Borrowing Base Value and the Borrowing Base Amount (each a "<u>Release Transaction</u>"), each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrower shall have delivered to the Administrative Agent, at least five (5) Business Days prior to the date of the proposed Release Transaction (or such shorter period of time as agreed to by the Administrative Agent in writing), a written notice requesting such Release

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Transaction (a "<u>Release Notice</u>"), which Release Notice shall identify any Subsidiary Guarantor, Equity Interests or<u>,</u> Borrowing Base Property <u>or First Mortgage Investment</u> to be released or removed, as applicable, as part of the proposed Release Transaction, and the date proposed for consummation of the Release Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) after giving effect to such Release Transaction, the Minimum Borrowing Base Property Requirement and the Minimum Aggregate Leasing Requirement shall remain satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) immediately before and after giving effect to such Release Transaction, no Default has occurred and is continuing or would result therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Availability shall equal or exceed zero ($0) on a pro forma basis immediately after giving effect to the proposed Release Transaction (and any contemporaneous prepayment of Loans and/or replacement with additional Borrowing Base Properties <u>or First Mortgage Investments</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Loan Parties will be in compliance with the provisions of <u>Section 7.11</u> on a pro forma basis immediately after giving effect to the proposed Release Transaction (and any contemporaneous prepayment of Loans and/or replacement with additional Borrowing Base Property<u>Properties or First Mortgage Investments</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) after giving effect to the proposed Release Transaction (and any contemporaneous prepayment of Loans and/or replacement with additional Borrowing Base Properties <u>or First Mortgage Investments</u>), the representations and warranties contained in <u>Article V</u> and the other Loan Documents are true and correct in all material respects (or, (1) with respect to representations and warranties set forth in <u>Sections 5.15(b)</u> and <u>5.19</u> and (2) representations and warranties qualified as to materiality or Material Adverse Effect, true and correct in all respects) on and as of the proposed release date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date, and except that for purposes of this <u>Section 2.18</u>, the representations and warranties contained in <u>clauses (a)</u> and <u>(b)</u> of <u>Section 5.05</u> shall be deemed to refer to the most recent statements furnished pursuant to <u>clauses (a)</u> and <u>(b)</u>, respectively, of <u>Section 6.01</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Administrative Agent shall have received a Notice of Loan Prepayment with respect to any prepayment or repayment of Loans to be made concurrently with such Release Transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) at least two (2) Business Days prior to the proposed release date (or such shorter period of time as agreed to by the Administrative Agent in writing), the Administrative Agent shall have received (1) a fully completed Borrowing Base Certificate setting forth reasonably detailed calculations of the Borrowing Base Value and the Borrowing Base Amount on a pro forma basis immediately after giving effect to such Release Transaction and demonstrating to the satisfaction of the Administrative Agent that, after giving effect to the proposed Release Transaction (and any contemporaneous prepayment of Loans and/or replacement with additional Borrowing Base Properties <u>or First Mortgage Investments</u>), the condition set forth in clause (d) above will be satisfied, (2) a Compliance Certificate demonstrating to the satisfaction of the Administrative Agent that, after giving effect to the proposed Release Transaction (and any contemporaneous prepayment of Loans and/or replacement with additional Borrowing Base Properties <u>or First Mortgage Investments</u>), the condition set forth in clauses (b) and (e) above will be satisfied and (3) a certificate executed by a Responsible Officer of the Borrower certifying to the Administrative Agent that the conditions in clauses (c) and (f) above have been satisfied; <u>provided</u> that, if the proposed Release Transaction involves either the release of the Administrative Agent's Lien on

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any Equity Interest in a Subsidiary Guarantor or the release of a Subsidiary Guarantor from its obligations under the Guaranty, in each case, at any time when no Property owned or ground leased by such Subsidiary Guarantor (or any Subsidiary thereof) is a Borrowing Base Property, then the Borrower shall not be required to satisfy this clause (h) as a condition to such Release Transaction.

"<u>Release Notice</u>" has the meaning specified in the definition of "Release Conditions."

"<u>Release Transaction</u>" has the meaning specified in the definition of "Release Conditions."

"<u>Reportable Event</u>" means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived.

"<u>Request for Credit Extension</u>" means (a) with respect to a Borrowing, conversion or continuation of Term Loans or Revolving Credit Loans, a Committed Loan Notice, and (b) with respect to an L/C Credit Extension, a Letter of Credit Application.

"<u>Required Class Lenders</u>" means, at any time with respect to any Class of Loans or Commitments, Lenders having Total Credit Exposures with respect to such Class representing more than 50% of the Total Credit Exposures of all Lenders of such Class. The Total Credit Exposure of any Defaulting Lender with respect to such Class shall be disregarded in determining Required Class Lenders at any time.

"<u>Required Lenders</u>" means, at any time, Lenders holding more than 50% of the sum of the (a) Total Outstandings (with the aggregate amount of each Revolving Credit Lender's risk participation and funded participation in L/C Obligations being deemed "held" by such Revolving Credit Lender for purposes of this definition) and (b) aggregate unused Commitments; <u>provided</u> that the amount of any participation in any Unreimbursed Amounts that such Defaulting Lender has failed to fund that have not been reallocated to and funded by another Lender shall be deemed to be held by the Lender that is the applicable L/C Issuer, as the case may be, in making such determination.

"<u>Required Revolving Lenders</u>" means, as of any date of determination, Revolving Credit Lenders holding more than 50% of the sum of the (a) Total Revolving Credit Outstandings (with the aggregate amount of each Revolving Credit Lender's risk participation and funded participation in L/C Obligations being deemed "held" by such Revolving Credit Lender for purposes of this definition) and (b) aggregate unused Revolving Credit Commitments; <u>provided</u> that the unused Revolving Credit Commitment of, and the portion of the Total Revolving Credit Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Revolving Lenders.

"<u>Required Subsidiary Guarantor</u>" means each existing and future direct and indirect Subsidiary of the Borrower that owns or ground leases, directly or indirectly, any Borrowing Base Property <u>or First Mortgage Investment</u>; <u>provided</u> that, if a Borrowing Base Property is directly owned by an Excluded Foreign Subsidiary, only the parent entities of such Subsidiary that are Domestic Subsidiaries (if any such parent entities exist) will be required to be Subsidiary Guarantors. For the avoidance of doubt and notwithstanding anything to the contrary set forth herein, each entity other than the Borrower that pledges Collateral will be a Guarantor.

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"<u>Revolving Credit Exposure</u>" means, as to any Lender at any time, the aggregate principal amount at such time of its outstanding Revolving Credit Loans and such Lender's participation in L/C Obligations at such time.

"<u>Revolving Credit Facility</u>" means, at any time, the aggregate amount of the Revolving Credit Lenders' Revolving Credit Commitments at such time. On the First<u>Third</u> Amendment Effective Date, the Revolving Credit Facility is $350,000,000<u>1,047,500,000</u>.

"<u>Revolving Credit Lender</u>" means, at any time, any Lender that has a Revolving Credit Commitment at such time.

"<u>Revolving Credit Loan</u>" has the meaning specified in <u>Section 2.01(c)</u>.

"<u>Revolving Credit Note</u>" means a promissory note made by the Borrower in favor of a Revolving Credit Lender evidencing Revolving Credit Loans made by such Revolving Credit Lender, substantially in the form of <u>Exhibit C-1</u>.

"<u>Sanction(s)</u>" means any sanction<u>sanctions, trade embargoes or similar restrictions</u> administered or enforced by the United States Government (including without limitation, OFAC), the United Nations Security Council, the European Union, His Majesty's Treasury ("HMT") or other relevant sanctions authority. <u>For the avoidance of doubt, Sanction(s) shall not include generally applicable tariffs, customs duties, or trade restrictions that do not prohibit transactions or dealings with specific sanctioned persons or jurisdictions</u>

"<u>Scheduled Unavailability Date</u>" has the meaning specified in <u>Section 3.03(c)</u>.

"<u>SEC</u>" means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

"<u>Secured Cash Management Agreement</u>" means any Cash Management Agreement that is entered into by and between any Loan Party and any Cash Management Bank.

"<u>Secured Hedge Agreement</u>" means any Swap Contract permitted under <u>Article VI</u> or <u>VII</u> that is entered into by and between any Loan Party and any Hedge Bank.

"<u>Secured Indebtedness</u>" means, as to any Person, Indebtedness of such Person that is secured by a lien (other than with respect to the Facilities).

"<u>Secured Leverage Ratio</u>" means, as of any date of determination, for the period of four fiscal quarters ended on such date (if such date is the last day of a fiscal quarter) or for the then most recently ended period of four full fiscal quarters (if such date is not the last day of a fiscal quarter), the ratio (expressed as a percentage) of Total Secured Indebtedness to Total Asset Value.

"<u>Secured Parties</u>" means, collectively, the Administrative Agent, the Lenders, the L/C Issuers, the Hedge Banks, the Cash Management Banks, each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to <u>Section 9.05</u> and the other Persons the Obligations owing to which are or are purported to be secured by the Collateral under the terms of the Collateral Documents.

"<u>Shareholders' Equity</u>" means, as of any date of determination, consolidated shareholders' equity of the Parent and its Consolidated Subsidiaries as of that date determined in accordance with GAAP.

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"<u>Term Borrowing</u>" means a borrowing consisting of simultaneous Term Loans of the same Type and, in the case of Term SOFR Loans, having the same Interest Period made by each of the Term Lenders pursuant to <u>Section 2.01(a)</u>.

"<u>Term Commitment</u>" means, as to each Term Lender, its obligation to make Term Loans to the Borrower pursuant to <u>Section 2.01(a)</u> in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Term Lender's name on <u>Schedule 2.01A</u> under the caption "Term Commitment" or opposite such caption in the Assignment and Assumption or New Lender Joinder Agreement pursuant to which such Term Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

"<u>Term Facility</u>" means, at any time, (a) on or prior to the Closing Date, the aggregate amount of the Term Commitments at such time and (b) thereafter, the aggregate principal amount of the Term Loans of all Term Lenders outstanding at such time. On the First<u>Third</u> Amendment Effective Date, the Term Facility is $100,000,000<u>227,500,000</u>.

"<u>Term Lender</u>" means (a) at any time on or prior to the Closing Date, any Lender that has a Term Commitment at such time and (b) at any time after the Closing Date, any Lender that holds Term Loans at such time.

"<u>Term Loan</u>" means an advance made by any Term Lender under the Term Facility.

"<u>Term Loan Exposure</u>" means, as to any Lender at any time, the aggregate Outstanding Amount at such time of its Term Loans; <u>provided</u> that at any time prior to the making of the Term Loans, the Term Loan Exposure of any Lender shall be equal to such Lender's Term Commitment.

"<u>Term Note</u>" means a promissory note made by the Borrower in favor of a Term Lender evidencing Term Loans made by such Term Lender, substantially in the form of <u>Exhibit C 2</u>.

"<u>Term SOFR</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any interest period with respect to a Term SOFR Loan, the rate per annum equal to the Term SOFR Screen Rate two U.S. Government Securities Business Days prior to the commencement of such interest period with a term equivalent to such interest period; <u>provided</u> that if the rate is not published prior to 11:00 a.m. on such determination date then Term SOFR means the Term SOFR Screen Rate on the first U.S. Government Securities Business Day immediately prior thereto, in each case, <u>plus</u> the SOFR Adjustment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to the Term SOFR Screen Rate two U.S. Government Securities Business Days prior to such date with a term of one month commencing that day; <u>provided</u> that if the rate is not published prior to 11:00 a.m. on such determination date then Term SOFR means the Term SOFR Screen Rate on the first U.S. Government Securities Business Day immediately prior thereto, in each case, <u>plus</u> the SOFR Adjustment;

<u>provided</u> that if Term SOFR determined in accordance with either of the foregoing clause (a) or (b) of this definition would otherwise be less than zero, Term SOFR shall be deemed zero for purposes of this Agreement and the other Loan Documents.

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"<u>Term SOFR Loan</u>" means a Loan that bears interest at a rate based on clause (a) of the definition of Term SOFR.

"<u>Term SOFR Screen Rate</u>" means the forward-looking SOFR term rate administered by CME (or any successor administrator satisfactory to the Administrative Agent) and published on the applicable Reuters screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time).

<u>"Third Amendment Effective Date"</u> <u>means July 25, 2025.</u>

"<u>Threshold Amount</u>" means $20,000,000.

"<u>Total Asset Value</u>" shall mean, as of any date of determination, the sum (without duplication) of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate Appraised Value of all then existing Properties (other than Newly Acquired Properties and Other Assets) owned or ground leased by a Consolidated Group Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the aggregate purchase price for all then existing Newly Acquired Properties paid by a Consolidated Group Member to Person(s) that are not Consolidated Group Members or affiliates thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the aggregate undepreciated book value of Other Assets owned by Consolidated Group Members on such date, as adjusted in accordance with GAAP to reflect impairment charges, write-downs and losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the aggregate amount of Unrestricted Cash and Cash Equivalents held by Consolidated Group Members on such date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(e) an amount equal to one hundred percent (100%) of the aggregate book value of First Mortgage Investments on such date, as adjusted in accordance with GAAP to reflect impairment charges, write-downs and losses; and</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(f)</u> (e) the Consolidated Group Pro Rata Share of the items described in clauses (a) through (c) above that is attributable to ownership of common Equity Interests in Unconsolidated Affiliates (calculated on a basis consistent with the above described treatment for assets that are Wholly Owned by Consolidated Group Members);

<u>provided</u>, that with respect to Properties that are owned by or ground leased to a Controlled Joint Venture or a Controlled Joint Venture Subsidiary, only the Consolidated Group Pro Rata Share of the foregoing shall be included in the calculation of Total Asset Value;

<u>provided</u> <u>further</u> that, notwithstanding anything to the contrary contained herein and without duplication:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) not more than twenty percent (20%) of Total Asset Value at any time may be in respect of Properties that are or are subject to ground leases, with any excess over such limit being excluded from calculations of Total Asset Value;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not more than thirty five percent (35%) of Total Asset Value at any time may be in respect of any single Property, with any excess over such limit being excluded from calculations of Total Asset Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) on and after March 31, 2025, the portion of Total Asset Value attributable to Properties that have related Commercial Net Leases with one or more tenants that are members of the same consolidated group for purposes financial reporting in excess of thirty five percent (35%) of Total Asset Value shall be excluded from calculations of Total Asset Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) on and after April 30, 2025, not more than twenty percent (20%) of Total Asset Value at any time may be in respect of Other Assets, with any excess over such limit being excluded from calculations of Total Asset Value; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) not more than fifteen percent (15%) of Total Asset Value at any time may be in respect of Properties that are located in a Specified Jurisdiction, with any excess over such limit being excluded from calculations of Total Asset Value.<u>; and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(vi) not more than ten percent (10%) of Total Asset Value at any time may be in respect of First Mortgage Investments, with any excess over such limit being excluded from calculations of Total Asset Value.</u>

"<u>Total Credit Exposure</u>" means, as to any Lender at any time, (a) in respect of the Revolving Credit Facility, the unused Revolving Credit Commitments and Revolving Credit Exposure of such Lender at such time, (b) in respect of the Term A Facility, the Term A Loan Exposure of such Lender at such time and (c) in respect of the Term B Facility, the Term B Loan Exposure of such Lender at such time.

"<u>Total Indebtedness</u>" means, as of any date, the then aggregate outstanding amount of all Indebtedness of all Consolidated Group Members.

"<u>Total Leverage Ratio</u>" means, as of any date of determination, the ratio (expressed as a percentage) of Total Indebtedness to Total Asset Value.

"<u>Total Outstandings</u>" means, as of any date of determination, the aggregate Outstanding Amount of all Loans and all L/C Obligations as of such date.

"<u>Total Revolving Credit Outstandings</u>" means the aggregate Outstanding Amount of all Revolving Credit Loans and L/C Obligations.

"<u>Total Secured Indebtedness</u>" means the portion of Total Indebtedness that is Secured Indebtedness.

"<u>Total Unsecured Indebtedness</u>" means the portion of Total Indebtedness that is Unsecured Indebtedness.

"<u>Type</u>" means, with respect to a Loan, its character as a Base Rate Loan, a Daily SOFR Loan or a Term SOFR Loan.

"<u>UCC</u>" means the Uniform Commercial Code as in effect in the State of New York <u>provided</u> that, if perfection or the effect of perfection or non-perfection or the priority of any security interest in any

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completed with the information for every outstanding Letter of Credit issued by such L/C Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Conflict with Issuer Documents</u>. In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.04 [Reserved]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.05 Prepayments**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Optional</u>. The Borrower may, upon notice to the Administrative Agent pursuant to delivery to the Administrative Agent of a Notice of Loan Prepayment, at any time or from time to time voluntarily prepay Term Loans and Revolving Credit Loans in whole or in part without premium or penalty; <u>provided</u> that (i) such notice must be received by the Administrative Agent not later than 11:00 a.m. (A) two Business Days prior to any date of prepayment of Term SOFR Loans and (B) on the date of prepayment of Daily SOFR Loans and Base Rate Loans; (ii) any prepayment of Term SOFR Loans shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof; and (iii) any prepayment of Daily SOFR Loans or Base Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding. Each such notice shall specify the date and amount of such prepayment and the Type(s) of Loans to be prepaid and, if Term SOFR Loans are to be prepaid, the Interest Period(s) of such Loans. The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender's Applicable Percentage of such prepayment. If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein. Any prepayment of any Term SOFR Loan shall be accompanied by all accrued interest on the amount prepaid, together with any additional amounts required pursuant to <u>Section 3.05</u>. Subject to <u>Section 2.17</u>, each such prepayment shall be applied to the Loans of the Lenders in accordance with their respective Applicable Percentages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mandatory</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In connection with any Release Transaction, the Borrower shall prepay Loans and/or Cash Collateralize the L/C Obligations on such date and in such aggregate amount as is set forth in the Notice of Loan Prepayment, if any, delivered to the Administrative Agent in connection with such Release Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Borrower or any of its Subsidiaries Disposes of a Borrowing Base Property<u>, a First Mortgage Investment</u> or any Collateral, the Borrower or such Subsidiary shall prepay Loans and/or Cash Collateralize the L/C Obligations on such date and in such aggregate amount as is set forth in the Notice of Loan Prepayment, if any, delivered to the Administrative Agent in connection with such Disposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In connection with any Current Appraisal furnished to the Administrative Agent pursuant to <u>Section 2.19</u>, the Borrower shall prepay Loans and/or Cash Collateralize the L/C Obligations on such date and in such aggregate amount as is set forth in the Notice of Loan Prepayment, if any, delivered to the Administrative Agent in connection with such Current Appraisal; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If for any reason Availability at any time is less than zero ($0) (including if due to the exclusion of a Borrowing Base Property <u>or First Mortgage Investment</u> pursuant to <u>Section 2.18(</u>b<u>c</u><u>)</u>, or if due to a change in the Appraised Value of a Borrowing Base Property upon any reappraisal required or permitted under this Agreement), the Borrower shall within five Business Days prepay Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount sufficient to restore Availability to at least zero ($0);

<u>provided</u>, <u>however</u>, that the Borrower shall not be required to Cash Collateralize the L/C Obligations pursuant to this <u>Section 2.05(b)</u> unless after the prepayment in full of the Loans Availability is less than zero ($0).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.06 Termination or Reduction of Commitments**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Optional</u>. The Borrower may, upon notice to the Administrative Agent, terminate the Revolving Credit Facility or the Letter of Credit Sublimit, or from time to time permanently reduce the Revolving Credit Facility or the Letter of Credit Sublimit; <u>provided</u> that (i) any such notice shall be received by the Administrative Agent not later than 11:00 a.m. five Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $10,000,000 or any whole multiple of $1,000,000 in excess thereof, and (iii) the Borrower shall not terminate or reduce (A) the Revolving Credit Facility if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Revolving Credit Outstandings would exceed the Revolving Credit Facility, or (B) the Letter of Credit Sublimit if, after giving effect thereto, the Outstanding Amount of L/C Obligations not fully Cash Collateralized hereunder would exceed the Letter of Credit Sublimit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mandatory</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The aggregate Term Commitments shall be automatically and permanently reduced to zero on the date of the Term Borrowing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If, after giving effect to any reduction of the Revolving Credit Facility, the Letter of Credit Sublimit exceeds the amount of the Revolving Credit Facility, the Letter of Credit Sublimit shall be automatically reduced by the amount of such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Application of Commitment Reductions; Payment of Fees</u>. The Administrative Agent will promptly notify the Lenders of any such notice of termination or reduction of the Revolving Credit Facility or the Letter of Credit Sublimit under this <u>Section 2.06</u>. Any reduction of the Revolving Credit Facility shall be applied to the Revolving Credit Commitment of each Revolving Credit Lender according to its Applicable Percentage. All fees accrued until the effective date of any termination of the Revolving Credit Facility shall be paid on the effective date of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.07 Repayment of Loans**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Term Loans</u>. The Borrower shall repay to the Term Lenders on the Maturity Date for the Term Facility the aggregate principal amount of all Term Loans outstanding on such date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>New Letters of Credit</u>. So long as any Revolving Credit Lender is a Defaulting Lender, no L/C Issuer shall be required to issue, extend, increase, reinstate or renew any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.18 Inclusions, Exclusions and Removals of Borrowing Base Properties <u>and First Mortgage Investments</u>; Releases of Collateral and Guarantors**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Inclusions of Borrowing Base Properties</u>. As of the Closing Date, the Borrowing Base Properties listed on <u>Schedule 5.08</u> (the "<u>Initial Borrowing Base Properties</u>") shall be the initial Borrowing Base Properties. The Borrower may, at its option, offer additional Properties that qualify as Eligible Properties (each such offered Property, a "<u>Nominated Property</u>"), to be included as Borrowing Base Properties in accordance with the following and any other applicable terms and conditions contained in this Agreement (or as otherwise agreed by the Borrower and the Required Lenders):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Notice of Proposed Inclusion</u>. The Borrower may, upon written notice to the Administrative Agent from time to time, request that a Nominated Property be included as a Borrowing Base Property; <u>provided</u> that (x) such notice must be received by the Administrative Agent at least seven (7) Business Days (or such shorter period of time as agreed to by the Administrative Agent in writing) prior to the proposed date of inclusion of such Nominated Property as a Borrowing Base Property as set forth in such notice (such date, the "Proposed Inclusion Date"), (y) such notice shall include a list of the Subsidiaries comprising the Direct Owner of the Nominated Property and each Indirect Owner of such Direct Owner and their <u>respective</u> U.S. taxpayer identification numbers (or the equivalent thereof, in the case of a Foreign Subsidiary) and (z) such notice shall be accompanied by such diligence materials and information with respect to such Property (each, a "<u>Diligence Package</u>") as the Administrative Agent shall have reasonably requested and such materials and information shall be reasonably satisfactory to the Administrative Agent in form and substance, and in any event, unless otherwise agreed to by the Administrative Agent, will include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a written certification from the Borrower that such Property will be an Eligible Property on the date that it is included as a Borrowing Base Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a Borrowing Base Certificate setting forth reasonably detailed calculations of the Borrowing Base Value and the Borrowing Base Amount on a pro forma basis immediately after giving effect to such addition and to the Credit Extension, if any, anticipated to be made contemporaneously with the inclusion of such Nominated Property or the proceeds of which are expected to be used to acquire such Nominated Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) a Compliance Certificate demonstrating that on a pro forma basis immediately after giving effect to such addition, the Loan Parties will be in compliance with the provisions of <u>Section 6.18</u> and <u>Section 7.11</u>, in each case, calculated as of the last quarter end for which consolidated financial statements of the Parent are available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a Current Appraisal with respect to such Nominated Property (other than in the case of a Newly Acquired Property or an Other Asset);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) a reasonably detailed due diligence package describing such Nominated Property, including an internally generated underwriting memorandum that details the location, size and age of the Nominated Property and historical operating results thereof (including a summary report of (1) historical Net Operating Income generated by the proposed Borrowing Base Property for the then most recently ended period of four full fiscal quarters (or, if historical Net Operating Income for the proposed Borrowing Base Property is not available for such period, such shorter period of time as the Administrative Agent agrees to in writing and (2) projected Net Operating Income to be generated by the proposed Borrowing Base Property for the period of four full fiscal quarters following its initial inclusion as a Borrowing Base Property), such memorandum to be in a form reasonably satisfactory to the Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) in the case of Nominated Property that is an Eligible Other Asset, (1) a detailed description of the status of construction in progress with respect to such Property as of a recent date, including the percentage completed, the projected completion date, and a construction schedule, (2) if such Property is a BTS Property, a lease excerpt with respect to the BTS Tenant and (3) such other diligence items relating to such Eligible Other Asset as reasonably requested by the Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) such additional documents, information, assurances, certificates, lien searches, consents or opinions as reasonably requested by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Approval of</u> <u>a</u> <u>Nominated Property</u>. Prior to the Collateral Release Date, the inclusion of any Nominated Property as a Borrowing Base Property shall require the approval of the Administrative Agent, which approval shall not be unreasonably withheld, conditioned or delayed; <u>provided</u> that in the event that the Administrative Agent does not provide a response within seven (7) Business Days after having received a Diligence Package, such Nominated Property shall be deemed a Borrowing Base Property commencing on the later of the following Business Day and the <u>Property</u> Inclusion Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Conditions to</u> <u>a</u> <u>Nominated Property Being Included as</u> <u>a</u> <u>Borrowing Base</u> Properties<u>Property</u>. The inclusion of any Nominated Property as a Borrowing Base Property, is subject to satisfaction of the following conditions precedent (and such Nominated Property shall be included as a Borrowing Base Property hereunder commencing on the date on which all such conditions precedent are satisfied (unless waived in writing by the Administrative Agent), (such date, the "<u>Property</u> <u>Inclusion Effective Date</u>")):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Nominated Property satisfies (or will satisfy concurrently with such inclusion and the satisfaction of the conditions precedent in this <u>Section 2.18(a)(iii)</u>) each of the criteria set forth in the definition of Eligible Ground Leased Property, Eligible Owned Property or Eligible Owned Asset, as applicable, and would not be required to be excluded as a Borrowing Base Property pursuant to <u>Section 2.18(</u>b<u>c</u><u>)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) no Default has occurred and is continuing or would result from the inclusion of such Nominated Property as a Borrowing Base Property;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) both before and after giving effect to such inclusion, the representations and warranties contained in <u>Article V</u> and the other Loan Documents are true and correct in all material respects (or, (1) with respect to representations and warranties set forth in <u>Sections 5.15(b)</u> and <u>5.19</u> and (2) representations and warranties qualified as to materiality or Material Adverse Effect, true and correct in all respects) on and as of the <u>Property</u> Inclusion Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date, and except that for purposes of this <u>Section 2.18</u>, the representations and warranties contained in <u>clauses (a)</u> and <u>(b)</u> of <u>Section 5.05</u> shall be deemed to refer to the most recent statements furnished pursuant to <u>clauses (a)</u> and <u>(b)</u>, respectively, of <u>Section 6.01</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the Borrower shall have delivered to the Administrative Agent, if required by the Administrative Agent, favorable opinions of counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, in form and substance reasonably satisfactory to the Administrative Agent, and as to such matters as the Administrative Agent may reasonably request concerning the Loan Documents and Loan Parties executing Loan Documents, all Persons that are becoming Loan Parties in connection with the inclusion of such Nominated Property as a Borrowing Base Property, such Nominated Property and any Collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) the Borrower shall have delivered to the Administrative Agent a certificate of a Responsible Officer certifying that (1) the conditions specified in <u>Section 2.18(a)(iii)(A)</u> through <u>(C)</u> have been satisfied; and (2) all financial and operating information delivered to the Administrative Agent pursuant to <u>Section 2.18(a)(i)</u>, to the knowledge of the Borrower, contains no material misstatement of fact or omit to state any material fact that would make such information not be true and correct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(b) Inclusions of First Mortgage Investments. The Borrower may, at its option, offer Loan Assets that qualify as First Mortgage Investments (each such offered Loan Asset, a "Nominated Loan Asset"), to be included in the calculation of Borrowing Base Value, Borrowing Base Amount and Total Asset Value in accordance with the following and any other applicable terms and conditions contained in this Agreement (or as otherwise agreed by the Borrower and the Required Lenders):</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(i) Notice of Proposed Inclusion. The Borrower may, upon written notice to the Administrative Agent from time to time, request that a Nominated Loan Asset be included in the calculation of Borrowing Base Value, Borrowing Base Amount and Total Asset Value; provided that (x) such notice must be received by the Administrative Agent at least seven (7) Business Days (or such shorter period of time as agreed to by the Administrative Agent in writing) prior to the proposed date of inclusion of such Nominated Loan Asset as set forth in such notice and (y) such notice shall be accompanied by such diligence materials and information with respect to such Nominated Loan Asset and the Owners thereof as the Administrative Agent shall have reasonably requested and such materials and information shall be reasonably satisfactory to the Administrative Agent in form and substance, and in any event, unless otherwise agreed to by the Administrative Agent, will include:</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(A) a written certification from the Borrower that such Nominated Loan Asset will be a First Mortgage Investment on the proposed Loan Asset Inclusion Effective Date;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(B) a Borrowing Base Certificate setting forth reasonably detailed calculations of the Borrowing Base Value and the Borrowing Base Amount on a pro forma basis immediately after giving effect to such addition and to the Credit Extension, if any, anticipated to be made contemporaneously with the inclusion of such Nominated Loan Asset or the proceeds of which are expected to be used to acquire or fund, as applicable, such Nominated Loan Asset;</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(C) a Compliance Certificate demonstrating that on a pro forma basis immediately after giving effect to such addition, the Loan Parties will be in compliance with the provisions of Section 6.18 and Section 7.11, in each case, calculated as of the last quarter end for which consolidated financial statements of the Parent are available;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(D) an Acceptable Appraisal with respect to the Property that secures such Nominated Loan Asset;</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(E) an internally generated underwriting memorandum in a form reasonably satisfactory to the Administrative Agent that describes the Nominated Loan Asset in reasonable detail, including (1) a description of the Property that secures such Nominated Loan Asset and (2) the identity of each borrower and each other Person that has a payment obligation with respect to the Nominated Loan Asset; and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(F) such additional documents, information, assurances, certificates, lien searches, consents or opinions as reasonably requested by the Administrative Agent.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(ii) Conditions to a Nominated Loan Asset Being Included. The inclusion of any Nominated Loan Asset in the calculation of Borrowing Base Value, Borrowing Base Amount and Total Asset Value, is subject to satisfaction of the following conditions precedent (and such Nominated Loan Asset shall be included in the calculation of Borrowing Base Value, Borrowing Base Amount and Total Asset Value hereunder commencing on the date on which all such conditions precedent are satisfied (unless waived in writing by the Administrative Agent), (such date, the "Loan Asset Inclusion Effective Date"):</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(A) the Nominated Loan Asset satisfies (or will satisfy concurrently with such inclusion and the satisfaction of the conditions precedent in this Section 2.18(b)(ii) each of the criteria set forth in the definition of First Mortgage Investment, and would not be required to be excluded from the calculation of Borrowing Base Value, Borrowing Base Amount or Total Asset Value pursuant to Section 2.18(c);</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(B) no Default has occurred and is continuing or would result from the inclusion of such Nominated Loan Asset in the calculation of Borrowing Base Value, Borrowing Base Amount or Total Asset Value;</u>

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<u>(C)` both before and after giving effect to such inclusion, the representations and warranties contained in Article V and the other Loan Documents are true and correct in all material respects (or, (1) with respect to representations and warranties set forth in Sections 5.15(b) and 5.19 and (2) representations and warranties qualified as to materiality or Material Adverse Effect, true and correct in all respects) on and as of the Loan Asset Inclusion Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date, and except that for purposes of this Section 2.18, the representations and warranties contained in clauses (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01;</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(D) the Loan-to-Value Ratio for such Loan Asset on the Loan Asset Inclusion Effective Date does not exceed sixty five percent (65%);</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(E) the Borrower shall have delivered to the Administrative Agent, if required by the Administrative Agent, favorable opinions of counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, in form and substance reasonably satisfactory to the Administrative Agent, and as to such matters as the Administrative Agent may reasonably request concerning the Loan Documents and Loan Parties executing Loan Documents; and</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(F) the Borrower shall have delivered to the Administrative Agent a certificate of a Responsible Officer dated as of the Loan Asset Inclusion Effective Date, certifying that (1) the conditions specified in Section 2.18(b)(ii)(A) through (D) have been satisfied; and (2) all financial and operating information delivered to the Administrative Agent pursuant to Section 2.18(b)(i), to the knowledge of the Borrower, contains no material misstatement of fact or omit to state any material fact that would make such information not be true and correct.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u> (b) <u>Exclusion of Borrowing Base</u> Property<u>Properties and First Mortgage Investments</u>. Any of the following shall result in the applicable Borrowing Base Property no longer constituting an Eligible Property <u>or a First Mortgage Investment no longer being included in the calculation of Borrowing Base Value, Borrowing Base Amount and Total Asset Value</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Loss of Eligibility Status</u>. Immediately, if such Borrowing Base Property fails to satisfy any of the criteria set forth in the definition of Eligible Ground Leased Property, Eligible Owned Property or Eligible Owned Asset <u>or if such First Mortgage Investment fails to satisfy any of the criteria set forth in the definition of First Mortgage Investment</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Dispositions</u>. Immediately, upon a Disposition of (whether in one transaction or in a series of transactions or pursuant to a Division) <u>such Borrowing Base Property, or</u> all assets comprising such Borrowing Base Property<u>, or such First Mortgage Investment,</u> or of the Equity Interests of any Owner thereof<u>of such Borrowing Base Property or First Mortgage Investment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Releases<u>Removals</u>. Immediately, upon the release<u>removal</u> of such Borrowing Base Property <u>or First Mortgage Investment</u> pursuant to <u>Section 2.18(</u>c<u>d</u><u>)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d)</u> (c) <u>Removal of Borrowing Base Properties and</u> <u>First Mortgage Investments and</u> <u>Releases of Collateral and Subsidiary Guarantors</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon satisfaction of each of the Release Conditions with respect to any proposed Release Transaction, the release contemplated by such Release Transaction shall be effective automatically and without further action of any Person and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) if the proposed Release Transaction involves release of a Subsidiary Guarantor from its obligations under the Guaranty, the Administrative Agent shall, at the sole expense of the Borrower, execute and deliver such documents as the Loan Parties may reasonably request as necessary or desirable to evidence the release of the applicable Subsidiary Guarantor from its obligations under the Guaranty; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) if the proposed Release Transaction involves release of the Lien of the Administrative Agent on any Equity Interest in a Subsidiary Guarantor or on any Equity Interest owned, directly or indirectly by a Subsidiary Guarantor, the Administrative Agent shall, at the sole expense of the Borrower, execute and deliver such documents as the Loan Parties may reasonably request as necessary or desirable to evidence the release of the Lien of the Administrative Agent on such Equity Interest and/or the release of the applicable Subsidiary Guarantor from its obligations under the Pledge Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For the avoidance of doubt, upon a release pursuant to a Release Transaction of the type contemplated in either clause (i)(A) or (i)(B) above, other than a release of the Lien of the Administrative Agent on any Collateral in connection with the Collateral Release Date, all Borrowing Base Properties owned, directly or indirectly, by the applicable Subsidiary Guarantor shall be removed from the calculation of Borrowing Base Value and Borrowing Base Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Administrative Agent shall promptly notify the Lenders following the consummation of any proposed Release Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) It is understood and agreed that no release pursuant to this <u>Section 2.18(</u>c<u>d</u><u>)</u> shall impair or otherwise adversely affect the Liens, security interests, guarantees and other rights of the Administrative Agent or the Secured Parties under the Loan Documents not being released (or as to the parties to the Loan Documents and the Collateral subject to the Loan Documents not being released).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.19 Appraisals; Additional Appraisals; Reappraisal Rights**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower will, at its sole expense, furnish to the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Current Appraisal with respect to each Eligible Property that is proposed to be included as a Borrowing Base Property (other than a Newly Acquired

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.06 Litigation**. There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Borrower after due and diligent investigation, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against any Loan Party or any of their respective Subsidiaries or against any of their properties or revenues that (a) purport to affect or pertain to this Agreement or any other Loan Document, or any of the transactions contemplated hereby, or (b) either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.07 No Default**. Neither any Loan Party nor any Subsidiary thereof is in default under or with respect to any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.08 Ownership of Property; Liens**. The Loan Parties or their respective Subsidiaries has good record and marketable title in fee simple to, or valid leasehold interests in, all real property necessary or used in the ordinary conduct of its business, except for such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each Borrowing Base Property, the Equity Interests in each Direct Owner thereof and each Indirect Owner of each Direct Owner, <u>each First Mortgage Investment, the Equity Interests in the Direct Owner thereof and each Indirect Owner of each Direct Owner</u> and the right to any income from and any proceeds of any of the foregoing, are subject to no Liens other than Permitted Property Encumbrances, in the case of Borrowing Base Properties (or any income therefrom or any proceeds thereof), <u>Permitted Loan Asset Encumbrances in the case of First Mortgage Investments</u> and Permitted Equity Encumbrances in the case of Equity Interests (or any income therefrom or any proceeds thereof). <u>Schedule 5.08</u> sets forth a list of the Properties included as Borrowing Base Properties on the Closing Date and the Direct Owners thereof and each Indirect Owner of each such Direct Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.09 Environmental Compliance**. The Loan Parties and their respective Subsidiaries conduct in the ordinary course of business a review of the effect of existing Environmental Laws and claims alleging potential liability or responsibility for violation of any Environmental Law on their respective businesses, operations and properties, and as a result thereof, the Borrower has reasonably concluded that such Environmental Laws and claims could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.10 Insurance**. The properties of the Borrower and its Subsidiaries are insured, or tenants under Commercial Net Leases in place at such properties are obligated to insure such properties, with financially sound and reputable insurance companies not Affiliates of the Parent, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the Borrower or the applicable Subsidiary operates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.11 Taxes**. The Parent and each of its Subsidiaries have timely filed all federal, state and other material tax returns and reports required to be filed, and have timely paid all federal, state and other material Taxes (whether or not shown on a tax return), including in its capacity as a withholding agent, levied or imposed upon it or its properties (or have obligated tenants under Commercial Net Leases in place at any of its properties to pay any Taxes imposed on such properties), income or assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP. There is no proposed tax assessment against the Borrower or any Subsidiary that would, if made, have a Material Adverse Effect.

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(a) currently the subject or target of any Sanctions, (b) included on OFAC's List of Specially Designated Nationals or HMT's Consolidated List of Financial Sanctions Targets, or any similar list enforced by any other relevant sanctions authority or (c) located, organized or resident in a Designated Jurisdiction. No Loan, nor the proceeds from any Credit Extension, has been used or will be used, directly or indirectly, to lend, contribute, provide or has otherwise made available to fund any activity or business in any Designated Jurisdiction or to fund any activity or business of any Person located, organized or residing in any Designated Jurisdiction or who is the subject or target of any Sanctions, or in any other manner that will result in any violation by any Person (including any Lender, any Arranger, the Administrative Agent or any L/C Issuer) of Sanctions. The Loan Parties and their respective Subsidiaries have conducted their businesses in compliance in all material respects with all applicable Sanctions and have instituted and maintained policies and procedures designed to promote and achieve compliance with such Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.20 Anti-Corruption Laws; Anti-Money Laundering Laws**. The Loan Parties and their Subsidiaries have conducted their businesses in compliance in all material respects with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other applicable anti-corruption legislation in other jurisdictions and have instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.21 Affected Financial Institutions.** No Loan Party is an Affected Financial Institution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.22 Covered Entities.** No Loan Party is a Covered Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.23 Collateral Documents.** The provisions of the Collateral Documents are effective to create in favor of the Administrative Agent for the benefit of the Secured Parties a legal, valid and enforceable first priority Lien (subject only to Permitted Equity Encumbrances) on all right, title and interest of the respective Grantors in the Collateral described therein. Except as contemplated by the Collateral Documents, no filing or other action will be necessary to perfect or protect such Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.24 Borrowing Base Properties; Subsidiary Guarantors.** Each Property included in any calculation of Borrowing Base Value and/or Borrowing Base Amount, at the time of such calculation, satisfied each of the criteria set forth in the definition of Eligible Ground Lease, Eligible Ground Leased Property, Eligible Owned Property or Eligible Other Asset, as the case may be. Each <u>Loan Asset included in any calculation of Borrowing Base Value, Total Asset Value and/or Borrowing Base Amount, at the time of such calculation, satisfied each of the criteria set forth in the definition of First Mortgage Investment. Each</u> Required Subsidiary Guarantor is a Subsidiary Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.25 REIT Status.** The Parent is organized and operated in a manner that allows it to qualify for REIT Status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.26 Representations as to Foreign Obligors.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Foreign Obligor is subject to civil and commercial Laws with respect to its obligations under this Agreement and the other Loan Documents to which it is a party (collectively as to such Foreign Obligor, the "<u>Applicable Foreign Obligor Documents</u>"), and the execution, delivery and performance by such Foreign Obligor of the Applicable Foreign Obligor Documents constitute and will constitute private and commercial acts and not public or governmental acts. Neither such Foreign Obligor nor any of its property has any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) under the laws of the jurisdiction in which such Foreign Obligor is organized and existing in respect of its obligations

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during normal business hours and without advance notice. Notwithstanding anything to the contrary set forth in this Section 6.10, any visitation and/or inspection of any property shall be subject to the terms and provisions of any Commercial Net Lease in effect with respect to such Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.11 Use of Proceeds**. Use the proceeds of the Credit Extensions for general corporate purposes not in contravention of any Law or of any Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.12 Additional Guarantors.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the inclusion of a Property as a Borrowing Base Property <u>or a Loan Asset as a First Mortgage Investment</u> hereunder the Borrower shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) notify the Administrative Agent in writing of any Required Subsidiary Guarantor that is not at such time a Guarantor (each such Subsidiary being referred to hereinafter as a "<u>Proposed Subsidiary Guarantor</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) provide the Administrative Agent with the U.S. taxpayer identification for each such Proposed Subsidiary Guarantor (or the equivalent thereof, with respect to any such Subsidiary that is a Foreign Subsidiary);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) provide the Administrative Agent and each Lender with all documentation and other information concerning each Proposed Subsidiary Guarantor that the Administrative Agent or such Lender requests in order to comply with its obligations under applicable "know your customer" and anti-money laundering rules and regulations, including the PATRIOT Act and the Beneficial Ownership Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) promptly thereafter (and in any event prior to any Property owned or ground leased by<u>, or any First Mortgage Investment owned by, as applicable,</u> such Proposed Subsidiary Guarantor or by any Subsidiary of such Proposed Subsidiary Guarantor), cause such Proposed Subsidiary Guarantor to become a Guarantor under this Agreement by executing and delivering to the Administrative Agent a joinder agreement in substantially the form of <u>Exhibit H</u> or such other document as the Administrative Agent shall deem appropriate for such purpose, together with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) documents of the types referred to in <u>clauses (iv),</u> <u>(v)</u> and <u>(vii)</u> of <u>Section 4.01(a)</u> with respect to such Proposed Subsidiary Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>if such inclusion is prior to the Collateral Release Date,</u> a joinder agreement and/or pledge amendment with respect to the Pledge Agreement pursuant to which the Equity Interests in such Proposed Subsidiary Guarantor shall be pledged in favor of the Administrative Agent for the benefit of the Secured Parties (in each case to the extent not already pledged as Collateral) together with the items referenced in <u>Section 4.01(a)(iii)(A)-(C)</u> with respect to such Proposed Subsidiary Guarantor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) if requested by the Administrative Agent, favorable opinions of counsel to such Person addressed to the Administrative Agent, the L/C Issuers and the Lenders (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to in <u>clause (A)</u>), all in form, content and scope reasonably satisfactory to the Administrative Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary contained in this Agreement, in the event that the results of any such "know your customer" or similar investigation conducted by the Administrative Agent or any Lender with respect to any Proposed Subsidiary Guarantor are not reasonably satisfactory to the Administrative Agent and each Lender, such Subsidiary shall not be permitted to become a Guarantor, and for the avoidance of doubt no Property owned or ground leased, <u>and no Loan Asset owned or held, in each case,</u> directly or indirectly, by such Proposed Subsidiary Guarantor shall be included as a Borrowing Base Property <u>or a First Mortgage Investment, as applicable</u>, in each case without the prior written consent of the Administrative Agent and the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.13 Anti-Corruption Laws; Sanctions; Anti-Money Laundering Laws**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Conduct its businesses in compliance in all material respects with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other applicable anti-corruption legislation in other jurisdictions and with all applicable Sanctions, and maintain policies and procedures designed to promote and achieve compliance with such laws and Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Conduct its businesses in a manner that will not result in a violation of any applicable anti-money laundering law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.14 Compliance with Environmental Laws**. Comply, and cause all lessees and other Persons operating or occupying its properties to comply, in all material respects, with all applicable Environmental Laws and Environmental Permits; obtain and renew all Environmental Permits necessary for its operations and properties; and conduct any investigation, study, sampling and testing, cleanup, removal, remedial or other action necessary to address Hazardous Materials at, on, under or emanating from any properties owned, leased or operated by it, in each case in accordance in all material respects with Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.15 Approvals and Authorizations**. Maintain all authorizations, consents, approvals and licenses from, exemptions of, and filings and registrations with, each Governmental Authority of the jurisdiction in which each Foreign Obligor is organized and existing, and all approvals and consents of each other Person in such jurisdiction, in each case that are required in connection with the Loan Documents and applicable laws, except to the extent the failure to do so could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.16 Information Regarding Collateral.** Provide, or cause each Grantor to provide, the Administrative Agent with not less than ten (10) Business Days' prior written notice (in the form of a certificate signed by a Responsible Officer of such Loan Party, Subsidiary or Grantor), or such lesser notice period agreed to by the Administrative Agent, before effecting any change (i) in any Grantor's legal name, (ii) in any Grantor's identity or organizational structure, (iii) in any Grantor's U.S. taxpayer identification number or organizational identification number, if any, or (iv) in any Grantor's jurisdiction of organization or incorporation (in each case, including by merging with or into any other entity, reorganizing, dissolving, liquidating, reorganizing or organizing in any other jurisdiction). Such notice shall clearly describe such change and provide such other information in connection therewith as the Administrative Agent may reasonably request. In addition, prior to any such change, the Borrower shall, and shall cause each Grantor to, take all action reasonably satisfactory to the Administrative Agent to maintain the perfection and priority of the security interest of the Administrative Agent for the benefit of the Secured Parties in the Collateral, if applicable. The Grantors hereby agree to promptly provide the Administrative Agent with certified Organization Documents reflecting any of the changes described in the preceding sentence. Notwithstanding the foregoing or anything else to the contrary contained herein or in any other Loan Document, the Borrower agrees that it will, and will cause each other Grantor that is a Domestic Subsidiary

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to, at all times maintain its jurisdiction of organization as Delaware or one of the other States within the United States or the District of Columbia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.17 Further Assurances**. Promptly upon the reasonable request by the Administrative Agent, or any Lender through the Administrative Agent, do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments as the Administrative Agent, or any Lender through the Administrative Agent, may reasonably require from time to time in order to (i) carry out more effectively the purposes of the Loan Documents, (ii) to the full extent permitted by Applicable Law, subject any Loan Party's properties, assets, rights or interests to the Liens now or hereafter intended to be covered by any of the Collateral Documents, (iii) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be created thereunder and (iv) assure, convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Secured Parties the rights granted or now or hereafter intended to be granted to the Secured Parties under any Loan Document or under any other instrument executed in connection with any Loan Document to which any Loan Party is or is to be a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.18 Minimum Aggregate Leasing Requirement; Minimum Borrowing Base Property Requirement**. (a) Comply, at all times, with the Minimum Aggregate Leasing Requirement and (b) comply, at all times, with the Minimum Borrowing Base Property Requirement.

**Article VII. NEGATIVE COVENANTS**

So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, no Loan Party shall, nor shall it permit any Subsidiary to, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.01 Liens**. Create, incur, assume or suffer to exist any Lien upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Borrowing Base Property (or any income therefrom or any proceeds thereof), other than Permitted Property Encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Collateral, other than Permitted Equity Encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u> <u>any First Mortgage Investment (or any income therefrom or any proceeds thereof), other than Permitted Loan Asset Encumbrances;</u>

or sign, file or authorize under the Uniform Commercial Code of any jurisdiction a financing statement that includes in its collateral description any portion of any Collateral, any Borrowing Base Property, any <u>First Mortgage Investment, any</u> Equity Interest in any Owner, or any income from or proceeds of any of the foregoing, except in each case, to perfect a Lien permitted pursuant to this <u>Section 7.01</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Parent and each Subsidiary may declare and make dividend payments or other distributions payable solely in the common stock or other common Equity Interests of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity Interests issued by it with the proceeds received from the substantially concurrent issue of new shares of its common stock or other common Equity Interests so long as such purchase, redemption or other acquisition is consummated within thirty (30) days of such issuance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Borrower shall be permitted to declare and make other Restricted Payments on or in respect of its Equity Interests; <u>provided</u>, <u>however</u>, (i) if an Event of Default under (x) <u>Section 8.01(a)</u> or (y) <u>Section 8.01(b)</u> resulting from a failure to be in compliance with any of the provisions of <u>Section 7.11</u>, in each case, shall have occurred and be continuing or would result therefrom on a pro forma basis after giving effect to such Restricted Payment, the Borrower shall only be permitted to declare and pay pro rata cash dividends on its Equity Interests or make pro rata cash distributions with respect thereto in an amount that will result in the Parent receiving the minimum amount of funds required to be distributed to its equity holders in order for the Parent to maintain its REIT Status for federal and state income tax purposes and (ii) no Restricted Payments shall be permitted under this clause (d) following the acceleration of the Obligations pursuant to <u>Section 8.02</u> or following the occurrence of any Event of Default under <u>Section 8.01(f)</u> or <u>(g)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Parent shall be permitted to make Restricted Payments with any amounts received by it from the Borrower pursuant to <u>Section 7.06(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.07 Change in Nature of Business**. Engage in any material line of business substantially different from those lines of business conducted by the Loan Parties and their Subsidiaries on the Closing Date or any business substantially related or incidental thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.08 Transactions with Affiliates**. Enter into any transaction of any kind with any Affiliate of the Parent, whether or not in the ordinary course of business, other than on fair and reasonable terms substantially as favorable to such Loan Party or such Subsidiary as would be obtainable by such Loan Party or such Subsidiary at the time in a comparable arm's length transaction with a Person other than an Affiliate); provided that the foregoing restriction shall not apply to (a) Investments and Restricted Payments expressly permitted hereunder, (b) transactions between or among the Loan Parties or (c) transactions between or among Consolidated Group Members that are not Loan Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.09 Burdensome Agreements**. Enter into or permit to exist any Contractual Obligation (other than this Agreement or any other Loan Document) that limits the ability of (a) any Subsidiary to make Restricted Payments to the Borrower or any other Loan Party, (b) the Parent, any Parent Entity or any Required Subsidiary Guarantor to Guarantee the Obligations, (c) the Borrower or any Subsidiary to create, incur, assume or suffer to exist Liens on any Borrowing Base Property<u>, any First Mortgage Investment</u> or any Collateral or (d) the Borrower or any Subsidiary to otherwise transfer (including by way of a pledge) property to the Borrower or any Loan Party; <u>provided</u>, that clauses (a) and (d) above shall not prohibit any negative pledge incurred or provided in favor of any holder of Secured Indebtedness permitted under <u>Section 7.03</u> solely to the extent any such negative pledge relates to the property financed by or the subject of such Secured Indebtedness, or securing such Indebtedness and such property is neither Collateral nor a Borrowing Base Property <u>nor a First Mortgage Investment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.10 Use of Proceeds**. Use the proceeds of any Credit Extension, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.11 Financial Covenants.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Maximum Total Leverage Ratio.** Permit the Total Leverage Ratio to exceed 60% as of the last day of each fiscal quarter; <u>provided</u> that such ratio shall be permitted to increase to sixty five percent (65%) for the fiscal quarter in which a Material Acquisition occurs and for the two consecutive full fiscal quarters immediately thereafter; provided further that in no event shall the Total Leverage Ratio as of the last day of any fiscal quarter exceed (i) sixty five percent (65%) or (ii) exceed sixty percent (60%) as of the last day of more than three consecutive fiscal quarters in any consecutive four fiscal quarter period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Minimum Fixed Charge Coverage Ratio.** Permit the Fixed Charge Coverage Ratio to be less than (i) 1.50 to 1.00 as of the last day of each fiscal quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Minimum Tangible Net Worth.** Permit Consolidated Tangible Net Worth at any time to be less than the sum of (i) $304,869,000, <u>plus</u> (ii) an amount equal to 75% of the net cash proceeds received by any Consolidated Group Member from issuances and sales of Equity Interests of the Parent to any Person other than another Consolidated Group Member since March 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Maximum Secured Recourse Indebtedness.** Permit Total Secured Indebtedness that is Recourse Indebtedness to exceed 10% of Total Asset Value as of the last day of each fiscal quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Maximum Secured Leverage Ratio.** Permit Total Secured Indebtedness to exceed 40% of Total Asset Value as of the last day of each fiscal quarter that occurs after the Collateral Release Date.

Notwithstanding the foregoing, in the event that there shall occur any Default arising as a result of the inclusion of any Property as a Borrowing Base Property <u>or any Loan Asset as a First Mortgage Investment</u>, and if such Default is capable of being cured solely by the exclusion of such Property as a Borrowing Base Property <u>or such Loan Asset as a First Mortgage Investment</u>, then within ten (10) Business Days from the earlier of (i) the date upon which the Borrower receives written notice of such Default from the Administrative Agent and (ii) the date upon which a responsible officer of the Parent or the Borrower obtains knowledge of such Default, the Borrower may elect to cure such Default by electing to remove the designation of such Property as a Borrowing Base Property <u>or such Loan Asset as a First Mortgage Investment, as applicable,</u> upon the delivery to Administrative Agent of (x) a written notice to the Administrative Agent thereof, (y) a Compliance Certificate setting forth reasonably detailed calculations excluding such Property as a Borrowing Base Property <u>or such Loan Asset as a First Mortgage Investment, as applicable,</u> and evidencing compliance with all of the Financial Covenants, the Minimum Borrowing Base Property Requirement and the Minimum Aggregate Leasing Requirement for the periods such Property <u>or Loan Asset</u> was included as a Borrowing Base Property <u>or a First Mortgage Investment, as applicable,</u> and (z) a Borrowing Base Certificate setting forth reasonably detailed calculations of the Borrowing Base Value and the Borrowing Base Amount and evidencing that Availability equaled or exceeded zero ($0) for the periods such Property <u>or Loan Asset</u> was included as a Borrowing Base Property <u>or a First Mortgage Investment, as applicable</u>. The Borrower's notice of its election and delivery of the Compliance Certificate pursuant to clause (y) and Borrowing Base Certificate pursuant to clause (z) above pursuant to the preceding sentence shall be delivered to the Administrative Agent within the period of ten (10) Business Days provided above, and if not so delivered the Borrower's cure period shall immediately terminate and any such Default shall become an Event of Default. Any cure effected pursuant to the foregoing is referred to herein as a "<u>Permitted Cure</u>".

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.12 Amendments of Organization Documents**. Amend, amend and restate, modify, supplement or otherwise change, cancel, terminate or waive in any respect the terms of any of its Organization Documents without, in each case, the express prior written consent or approval of the Administrative Agent, if such changes (i) would materially impair the rights or interests of the Administrative Agent or any Lender in any Collateral or (ii) would adversely affect in any material respect any other rights or interests of the Administrative Agent, the L/C Issuers or any of the Lenders hereunder or under any of the other Loan Documents; <u>provided</u> that if such prior consent or approval is not required, such Loan Party shall nonetheless notify the Administrative Agent in writing promptly after any such amendment, amendment and restatement, modification, or supplement to the charter documents of such Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.13 Accounting Changes; Fiscal Year.** Make any change in (a) accounting policies or reporting practices, except as required or permitted by GAAP, or (b) fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.14 Compliance with Environmental Laws.** Do, or permit any other Person to do, any of the following: (a) use any of the Properties or any portion thereof as a facility for the handling, processing, storage or disposal of Hazardous Materials except for quantities of Hazardous Materials used in the ordinary course of business and in material compliance with all applicable Environmental Laws, (b) cause or permit to be located on any of the Properties any underground tank or other underground storage receptacle for Hazardous Materials except in full compliance with Environmental Laws, (c) generate any Hazardous Materials on any of the Properties except in full compliance with Environmental Laws, (d) conduct any activity at any Property or use any Property in any manner that could reasonably be contemplated to cause a release of Hazardous Materials on, upon or into the Property or any surrounding properties or any threatened release of Hazardous Materials which might give rise to liability under CERCLA or any other Environmental Law, or (e) directly or indirectly transport or arrange for the transport of any Hazardous Materials (except in compliance with all Environmental Laws), except, with respect to any Property other than an Eligible Property where any such use, generation, conduct or other activity has not had and could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.15 Sanctions.** Directly or indirectly, use the proceeds of any Credit Extension, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person, to fund any activities of or business <u>in any Designated Jurisdiction or</u> with any Person that, at the time of such funding, is <u>located, organized or residing in any Designated Jurisdiction or</u> the subject of Sanctions, or in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as Lender, Arranger, Administrative Agent, L/C Issuer, or otherwise) of Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.16 Anti-Corruption Laws; Anti-Money Laundering**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Use the proceeds of any Credit Extension for any purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other anti-corruption legislation in other jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Knowingly engage in any transaction, investment, undertaking or activity that conceals the identity, source or destination of the proceeds from any category of prohibited offenses designated in any Applicable Law, regulation or other binding measure by the Organisation for Economic Cooperation and Development's Financial Action Task Force on

------

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

**PURSUANT TO 17 CFR 240.13a-14**

**PROMULGATED UNDER**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Joshua Pack, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the period ended June 30, 2025 of Fortress Net Lease REIT;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

------

Date: August 13, 2025

---

| | |
|:---|:---|
| /s/ Joshua Pack | /s/ Joshua Pack |
| Name: | Joshua Pack |
| Title: | Co-Chief Executive Officer |
|  | (*Co-Principal Executive Officer*) |

---

------

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

**PURSUANT TO 17 CFR 240.13a-14**

**PROMULGATED UNDER**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Ahsan Aijaz, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the period ended June 30, 2025 of Fortress Net Lease REIT;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

------

Date: August 13, 2025

---

| | |
|:---|:---|
| /s/ Ahsan Aijaz | /s/ Ahsan Aijaz |
| Name: | Ahsan Aijaz |
| Title: | Co-Chief Executive Officer |
|  | (*Co-Principal Executive Officer*) |

---

------

## Exhibit 31.3

**Exhibit 31.3**

**CERTIFICATION**

**PURSUANT TO 17 CFR 240.13a-14**

**PROMULGATED UNDER**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Avraham Dreyfuss, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the period ended June 30, 2025 of Fortress Net Lease REIT;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

------

Date: August 13, 2025

---

| | |
|:---|:---|
| /s/ Avraham Dreyfuss | /s/ Avraham Dreyfuss |
| Name: | Avraham Dreyfuss |
| Title: | Chief Financial Officer |
|  | *(Principal Financial Officer)* |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Fortress Net Lease REIT (the "Company") on Form 10-Q for the period ended June 30, 2025 as filed with the Securities and Exchange Commission (the "SEC") on the date hereof (the "Report"), I, Joshua Pack, Co-Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (the "Act"), that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 13, 2025

---

| | |
|:---|:---|
| /s/ Joshua Pack | /s/ Joshua Pack |
| Name: | Joshua Pack |
| Title: | Co-Chief Executive Officer |
|  | (*Co-Principal Executive Officer*) |

---

A signed original of this written statement required by Section 906 of the Act has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

------

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Fortress Net Lease REIT (the "Company") on Form 10-Q for the period ended June 30, 2025 as filed with the Securities and Exchange Commission (the "SEC") on the date hereof (the "Report"), I, Ahsan Aijaz, Co-Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (the "Act"), that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 13, 2025

---

| | |
|:---|:---|
| /s/ Ahsan Aijaz | /s/ Ahsan Aijaz |
| Name: | Ahsan Aijaz |
| Title: | Co-Chief Executive Officer |
|  | (*Co-Principal Executive Officer*) |

---

A signed original of this written statement required by Section 906 of the Act has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

------

## Exhibit 32.3

**Exhibit 32.3**

**CERTIFICATION PURSUANT TO**

**18 U.S.C SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Fortress Net Lease REIT (the "Company") on Form 10-Q for the period ended June 30, 2025 as filed with the Securities and Exchange Commission (the "SEC") on the date hereof (the "Report"), I, Avraham Dreyfuss, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (the "Act"), that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 13, 2025

---

| | |
|:---|:---|
| /s/ Avraham Dreyfuss | /s/ Avraham Dreyfuss |
| Name: | Avraham Dreyfuss |
| Title: | Chief Financial Officer |
|  | *(Principal Financial Officer)* |

---

A signed original of this written statement required by Section 906 of the Act has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

------