CBL

The following discussion and analysis of financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and accompanying notes that are included in this Form 10-Q. Capitalized terms used, but not defined, in this Management’s Discussion and Analysis of Financial Condition and Results of Operations have the same meanings as defined in the notes to the condensed consolidated financial statements. Unless stated otherwise or the context otherwise requires, references to the “Company,” “we,” “us” and “our” mean CBL & Associates Properties, Inc. and its subsidiaries. Certain statements made in this section or elsewhere in this report may be deemed “forward-looking statements” within the meaning of the federal securities laws. All statements other than statements of historical fact should be considered to be forward-looking statements. In many cases, these forward-looking statements may be identified by the use of words such as “will,” “may,” “should,” “could,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “projects,” “goals,” “objectives,” “targets,” “predicts,” “plans,” “seeks,” and variations of these words and similar expressions. Any forward-looking statement speaks only as of the date on which it is made and is qualified in its entirety by reference to the factors discussed throughout this report. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, forward-looking statements are not guarantees of future performance or results and we can give no assurance that these expectations will be attained. It is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of known and unknown risks and uncertainties. In addition to the risk factors described in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, such known risks and uncertainties include, without limitation: •general industry, economic and business conditions; •interest rate fluctuations; •costs and availability of capital, including debt, and capital requirements; •the ability to obtain suitable equity and/or debt financing and the continued availability of financing, in the amounts and on the terms necessary to support our future refinancing requirements and business; •costs and availability of real estate; •inability to consummate acquisition or disposition opportunities and other risks associated with acquisitions and dispositions; •competition from other companies and retail formats; •changes in retail demand and rental rates in our markets; •shifts in customer demands including the impact of online shopping; •tenant bankruptcies or store closings; •changes in vacancy rates at our properties; •changes in operating expenses; •changes in applicable laws, rules and regulations; •cyberattacks or acts of cyberterrorism; •uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events; and •other risks referenced from time to time in filings with the Securities and Exchange Commission (“SEC”) and those factors listed or incorporated by reference into this report. This list of risks and uncertainties is only a summary and is not intended to be exhaustive. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information. 23 Executive Overview We are a self-managed, self-administered, fully integrated REIT that is engaged in the ownership, development, acquisition, leasing, management and operation of regional shopping malls, outlet centers, lifestyle centers, open-air centers and other properties. See Note 1 to the condensed consolidated financial statements for information on our property interests as of June 30, 2026. We have elected to be taxed as a REIT for federal income tax purposes. The following summarizes our net income and net income attributable to common shareholders (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income $ 46,321 $ 2,158 $ 92,706 $ 10,545 Net income attributable to common shareholders $ 45,358 $ 2,567 $ 90,761 $ 10,779 Significant items that affected comparability between the three-month periods include: •Items increasing net income for the three months ended June 30, 2026 compared to the prior-year period: •Rental revenues were $5.6 million higher; •Gain on deconsolidation was $5.9 million higher; •Depreciation and amortization expense was $3.4 million lower; •Interest expense was $1.2 million lower; •Equity in earnings was $15.9 million higher; •Gain on sales of real estate assets was $12.3 million higher; and •Loss on impairment was $1.5 million lower. •Items decreasing net income for the three months ended June 30, 2026 compared to the prior-year period: •Property operating expense was $2.2 million higher. Significant items that affected comparability between the six-month periods include: •Items increasing net income for the six months ended June 30, 2026 compared to the prior-year period: •Rental revenues were $9.6 million higher; •Gain on deconsolidation was $41.3 million higher; •Depreciation and amortization expense was $10.9 million lower; •Interest expense was $5.6 million lower; •Equity in earnings was $19.2 million higher; •Real estate tax expense was $2.6 million lower; •General and administrative expense was $2.5 million lower; and •Loss on impairment was $1.5 million lower. •Items decreasing net income for the six months ended June 30, 2026 compared to the prior-year period: •Gain on sales of real estate assets was $7.8 million lower; and •Property operating expense was $4.6 million higher. Our focus is on continuing to execute our strategy to improve occupancy, drive rent growth and transform the offerings available at our properties to include a targeted mix of retail, service, dining, entertainment and other non-retail uses, primarily through the re-tenanting of former anchor locations as well as diversification of in-line tenancy. This operational strategy is also supported by our balance sheet strategy of reducing overall debt, extending our debt maturity schedule and lowering our overall cost of borrowings to limit maturity risk, as well as improving net cash flow and enhancing enterprise value. During the first half of 2026, we reduced our debt balance and extended our debt maturity schedule through refinancings, such as the refinancing of the $634.0 million secured term loan with two new loans, which extended the maturity date five years. Additionally, we acquired Gateway Mall in Lincoln, NE for approximately $43.8 million and sold Hammock Landing for $78.5 million consistent with our strategic focus on growing our mall portfolio and increasing cash flow through capital recycling. Same-center NOI and FFO are non-GAAP measures. For a description of same-center NOI, a reconciliation from net income (loss) to same-center NOI, and an explanation of why we believe this is a useful performance measure, see Non-GAAP Measure - Same-center Net Operating Income in Results of Operations. For a description of FFO, a reconciliation from net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership 24 common unitholders, and an explanation of why we believe this is a useful performance measure, see Non-GAAP Measure - Funds from Operations. Results of Operations Properties that were in operation for the entire year during 2025 and the six months ended June 30, 2026 are referred to as the "Comparable Properties." Since January 2025, we have acquired, deconsolidated and disposed of the following properties: Acquisitions Property Location Date of Acquisition Ashland Town Center Ashland, KY July 2025 Mesa Mall Grand Junction, CO July 2025 Paddock Mall Ocala, FL July 2025 Southgate Mall Missoula, MT July 2025 Gateway Mall Lincoln, NE March 2026 Deconsolidations Property Location Date of Deconsolidation Southpark Mall Colonial Heights, VA July 2025 Jefferson Mall Louisville, KY February 2026 The Outlet Shoppes at Gettysburg Gettysburg, PA May 2026 Dispositions Property Location Date of Disposition Monroeville Mall Monroeville, PA January 2025 Annex at Monroeville Monroeville, PA January 2025 Imperial Valley Mall El Centro, CA February 2025 840 Greenbrier Circle Chesapeake, VA June 2025 The Promenade D'Iberville, MS July 2025 Fremaux Town Center (1) Slidell, LA October 2025 Hammock Landing (1) West Melbourne, FL May 2026 (1)The property was owned by a joint venture that was accounted for using the equity method of accounting and was included in equity in earnings of unconsolidated affiliates in the accompanying condensed consolidated statements of operations. We consider properties undergoing major redevelopment, properties being considered for repositioning, properties where we intend to renegotiate the terms of the debt secured by the related property or return the property to the lender as non-core. As of June 30, 2026, Arbor Place, Brookfield Square, Eastland Mall, Harford Mall, Jefferson Mall, Laurel Park Place, Old Hickory Mall, Parkdale Mall, Parkdale Crossing, Southpark Mall, The Outlet Shoppes at Gettysburg and York Galleria were designated as non-core. 25 Comparison of the Three Months Ended June 30, 2026 to the Three Months Ended June 30, 2025 Revenues Three Months Ended June 30, 2026 2025 Change Malls Outlet Centers Lifestyle Centers Open-Air Centers All Other Rental revenues $ 142,014 $ 136,453 $ 5,561 $ 8,458 $ (144 ) $ (226 ) $ (2,559 ) $ 32 Management, development and leasing fees 1,159 1,357 (198 ) — — — — (198 ) Other 3,306 3,095 211 81 46 14 28 42 Total revenues $ 146,479 $ 140,905 $ 5,574 $ 8,539 $ (98 ) $ (212 ) $ (2,531 ) $ (124 ) Rental revenues increased primarily due to the acquisition of four malls in July 2025 and one mall in March 2026, which resulted in an increase of $11.6 million during the current-year period. The increase was partially offset by $6.4 million of rental revenues associated with properties sold or deconsolidated since the prior-year period. Also, rental revenues at the comparable properties increased $0.9 million compared to the prior-year period. Operating Expenses Three Months Ended June 30, 2026 2025 Change Malls Outlet Centers Lifestyle Centers Open-Air Centers All Other Property operating $ (25,797 ) $ (23,583 ) $ (2,214 ) $ (1,926 ) $ 17 $ 175 $ 291 $ (771 ) Real estate taxes (14,055 ) (15,027 ) 972 41 31 601 242 57 Maintenance and repairs (10,841 ) (10,372 ) (469 ) (574 ) (8 ) (63 ) 136 40 Property operating expenses (50,693 ) (48,982 ) (1,711 ) (2,459 ) 40 713 669 (674 ) Depreciation and amortization (36,283 ) (39,702 ) 3,419 2,084 71 289 713 262 General and administrative (14,782 ) (15,188 ) 406 — — — — 406 Loss on impairment — (1,457 ) 1,457 — — — — 1,457 Other — (30 ) 30 30 — — — — Total operating expenses $ (101,758 ) $ (105,359 ) $ 3,601 $ (345 ) $ 111 $ 1,002 $ 1,382 $ 1,451 Property operating expenses increased primarily due to the acquisition of four malls in July 2025 and one mall in March 2026, which resulted in an increase of $2.6 million during the current-year period. Also, property operating expenses increased at the comparable properties compared to the prior-year period primarily due to higher property repair and maintenance expense and payroll related costs. The increase was partially offset by a reduction of $1.4 million of property operating expenses associated with properties sold or deconsolidated since the prior-year period. Depreciation and amortization expense decreased primarily due to tenant improvement and intangible in-place lease assets recognized upon consolidation of three malls in December 2024, as well as the adoption of fresh start accounting on November 1, 2021, becoming fully depreciated or amortized since the prior-year period. Also, dispositions accounted for a $1.2 million decrease in the current-year period as compared to the prior-year period. The decrease was partially offset by the addition of tangible assets and intangible lease assets recognized upon the acquisition of four malls in July 2025 and one mall in March 2026, which resulted in an increase of $5.0 million during the current-year period. During the three months ended June 30, 2025, we sold 840 Greenbrier Circle for less than its carrying value and recorded an impairment of $1.5 million. Other Income and Expenses Interest expense decreased $1.2 million during the three months ended June 30, 2026 as compared to the prior-year period. The decrease was primarily due to property-level debt discounts becoming fully accreted upon maturity of the related loans, as well as a deconsolidation, since the prior-year period. The decrease was partially offset due to additional interest on the 2032 non-recourse bank loan, as it was modified to increase the loan balance to finance the acquisition of four malls in July 2025, as well as an increase in default interest expense. For the three months ended June 30, 2026, we recorded a $5.9 million gain on deconsolidation related to The Outlet Shoppes at Gettysburg. The property was deconsolidated due to a loss of control when it was placed into receivership in connection with the foreclosure process. During the three months ended June 30, 2026, we recognized $13.6 million of gain on sales of real estate assets related to the sale of seven outparcels. During the three months ended June 30, 2025, we recognized $1.3 million of gain on sales of real estate assets primarily related to the sale of an outparcel. 26 Equity in earnings increased $15.9 million during the three months ended June 30, 2026 as compared to the prior-year period. The increase was primarily due to the sale of Hammock Landing during the current-year period. Comparison of the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025 Revenues Six Months Ended June 30, 2026 2025 Change Malls Outlet Centers Lifestyle Centers Open-Air Centers All Other Rental revenues $ 283,387 $ 273,813 $ 9,574 $ 14,911 $ (440 ) $ (120 ) $ (4,501 ) $ (276 ) Management, development and leasing fees 2,768 2,674 94 — — — — 94 Other 6,292 6,186 106 (177 ) 105 13 101 64 Total revenues $ 292,447 $ 282,673 $ 9,774 $ 14,734 $ (335 ) $ (107 ) $ (4,400 ) $ (118 ) Rental revenues increased primarily due to the acquisition of four malls in July 2025 and one mall in March 2026, which resulted in an increase of $21.6 million during the current-year period. The increase was partially offset by $13.3 million of rental revenues associated with properties sold or deconsolidated since the prior-year period. Also, rental revenues at the comparable properties increased $3.0 million compared to the prior-year period. Operating Expenses Six Months Ended June 30, 2026 2025 Change Malls Outlet Centers Lifestyle Centers Open-Air Centers All Other Property operating $ (54,030 ) $ (49,461 ) $ (4,569 ) $ (4,186 ) $ 28 $ 330 $ 330 $ (1,071 ) Real estate taxes (28,121 ) (30,758 ) 2,637 1,338 138 760 465 (64 ) Maintenance and repairs (23,174 ) (23,838 ) 664 280 26 (32 ) 301 89 Property operating expenses (105,325 ) (104,057 ) (1,268 ) (2,568 ) 192 1,058 1,096 (1,046 ) Depreciation and amortization (74,381 ) (85,243 ) 10,862 7,978 165 303 1,829 587 General and administrative (33,369 ) (35,895 ) 2,526 — — — — 2,526 Loss on impairment — (1,457 ) 1,457 — — — — 1,457 Other 30 (30 ) 60 60 — — — — Total operating expenses $ (213,045 ) $ (226,682 ) $ 13,637 $ 5,470 $ 357 $ 1,361 $ 2,925 $ 3,524 Property operating expenses increased primarily due to the acquisition of four malls in July 2025 and one mall in March 2026, which resulted in an increase of $4.9 million during the current-year period. Also, property operating expenses increased at the comparable properties compared to the prior-year period primarily due to higher property repair and maintenance expense, payroll and insurance related costs. The increase was partially offset by a reduction of $3.2 million of property operating expenses associated with properties sold or deconsolidated since the prior-year period. Depreciation and amortization expense decreased primarily due to tenant improvement and intangible in-place lease assets recognized upon consolidation of three malls in December 2024, as well as the adoption of fresh start accounting on November 1, 2021, becoming fully depreciated or amortized since the prior-year period. Also, dispositions accounted for a $3.0 million decrease in the current-year period as compared to the prior-year period. The decrease was partially offset by the addition of tangible assets and intangible lease assets recognized upon the acquisition of four malls in July 2025 and one mall in March 2026, which resulted in an increase of $9.3 million during the current-year period. Real estate taxes decreased primarily due to refunds received in the current period. General and administrative expense decreased $2.5 million primarily due to lower stock-based compensation expense in the current-year period as compared to the prior-year period. During the six months ended June 30, 2025, we sold 840 Greenbrier Circle for less than its carrying value and recorded an impairment of $1.5 million. Other Income and Expenses Interest expense decreased $5.6 million during the six months ended June 30, 2026 as compared to the prior-year period. The decrease was primarily due to property-level debt discounts becoming fully accreted upon maturity of the related loans, as well as a deconsolidation, since the prior-year period. The decrease was partially offset due to additional interest on the 2032 non-recourse bank loan, as it was modified to increase the loan balance to finance the acquisition of four malls in July 2025, as well as an increase in default interest expense. 27 For the six months ended June 30, 2026, we recorded a $41.3 million gain on deconsolidation related to Jefferson Mall and The Outlet Shoppes at Gettysburg. The properties were deconsolidated due to a loss of control when they were placed into receivership in connection with the foreclosure process. During the six months ended June 30, 2026, we recognized $15.0 million of gain on sales of real estate assets related to the sale of eight outparcels. During the six months ended June 30, 2025, we recognized a $22.9 million gain on sales of real estate assets related to the sales of Imperial Valley Mall, Monroeville Mall, Annex at Monroeville, three outparcels associated with the Monroeville Mall properties, a land parcel associated with Imperial Valley Mall and an outparcel. Equity in earnings increased $19.2 million during the six months ended June 30, 2026 as compared to the prior-year period. The increase was primarily due to the sale of Hammock Landing. Non-GAAP Measure Same-center Net Operating Income NOI is a supplemental non-GAAP measure of the operating performance of our shopping centers and other properties. We define NOI as property operating revenues (rental revenues and other income) less property operating expenses (property operating, real estate taxes and maintenance and repairs). We compute NOI based on the Operating Partnership's pro rata share of both consolidated and unconsolidated properties. We believe that presenting NOI and same-center NOI (described below) based on our Operating Partnership’s pro rata share of both consolidated and unconsolidated properties is useful since we conduct substantially all our business through our Operating Partnership and, therefore, it reflects the performance of the properties in absolute terms regardless of the ratio of ownership interests of our common shareholders and the noncontrolling interest in the Operating Partnership. Our definition of NOI may be different than that used by other companies, and accordingly, our calculation of NOI may not be comparable to that of other companies. Since NOI includes only those revenues and expenses related to the operations of our shopping center properties, we believe that same-center NOI provides a measure that reflects trends in occupancy rates, rental rates, sales at our properties and operating costs and the impact of those trends on our results of operations. Our calculation of same-center NOI excludes lease termination income, straight-line rent adjustments, amortization of above and below market lease intangibles and write-offs of landlord inducement assets in order to enhance the comparability of results from one period to another. We include a property in our same-center pool when we have owned all or a portion of the property since January 1 of the preceding calendar year and it has been in operation for both the entire preceding calendar year and current year-to-date period. New properties are excluded from same-center NOI until they meet these criteria. Properties excluded from the same-center pool that would otherwise meet these criteria are categorized as excluded properties. We exclude properties which are under major redevelopment or are being considered for repositioning, and where we are working or intend to work with the lender on a restructure of the terms of the loan secured by the property or convey the secured property to the lender (“Excluded Properties”). As of June 30, 2026, Arbor Place, Brookfield Square, Eastland Mall, Harford Mall, Jefferson Mall, Laurel Park Place, Old Hickory Mall, Parkdale Mall, Parkdale Crossing, Southpark Mall, The Outlet Shoppes at Gettysburg and York Galleria were classified as Excluded Properties. Due to the exclusions noted above, same-center NOI should only be used as a supplemental measure of our performance and not as an alternative to GAAP operating income (loss) or net income (loss). 28 A reconciliation of our same-center NOI to net income for the three and six months ended June 30, 2026 and 2025 is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income $ 46,321 $ 2,158 $ 92,706 $ 10,545 Adjustments: (1) Depreciation and amortization, including our share of unconsolidated affiliates and net of noncontrolling interests' share 39,072 42,579 79,961 91,126 Interest expense, including our share of unconsolidated affiliates and net of noncontrolling interests' share 48,235 50,262 93,632 100,763 Abandoned projects expense — 27 — 27 Gain on sales of real estate assets (13,633 ) (1,339 ) (15,035 ) (22,871 ) Gain on sales of real estate assets of unconsolidated affiliates (12,224 ) (832 ) (12,130 ) (1,867 ) Adjustment for unconsolidated affiliates with negative investment (1,781 ) 2,102 (4,665 ) 3,636 Loss on extinguishment of debt — — — 217 Gain on deconsolidation (5,925 ) — (41,259 ) — Loss on impairment — 1,457 — 1,457 Income tax provision (benefit) 642 369 (588 ) (102 ) Lease termination fees (93 ) (438 ) (474 ) (1,401 ) Straight-line rent and above- and below-market lease amortization (2) 2,335 1,866 4,635 6,105 Net loss attributable to noncontrolling interests in other consolidated subsidiaries 131 603 241 1,011 General and administrative expenses 14,782 15,188 33,369 35,895 Management fees and non-property level revenues (2) (3,467 ) (3,945 ) (7,513 ) (8,137 ) Operating Partnership's share of property NOI (2) 114,395 110,057 222,880 216,404 Non-comparable NOI (2) (16,742 ) (13,840 ) (31,105 ) (28,758 ) Total same-center NOI (3) $ 97,653 $ 96,217 $ 191,775 $ 187,646 (1)Adjustments are based on our Operating Partnership's pro rata ownership share, including our share of unconsolidated affiliates and excluding noncontrolling interests' share of consolidated properties. (2)We have reclassified amounts from management fees and non-property level revenues to the identified line items to conform to the current-year presentation. The current-year presentation is based on effective ownership percentages in certain unconsolidated joint ventures while the prior-year period was based on stated ownership percentages. The difference between the effective ownership and stated ownership percentages is due to differences in capital contributions between joint venture partners and related preferred returns. (3)We calculate same-center NOI based on stated ownership percentages. Same-center NOI increased 1.5% for the three months ended June 30, 2026 as compared to the prior-year period. The $1.4 million increase for the three months ended June 30, 2026 compared to the same period in 2025 primarily consisted of a $1.6 million increase in revenues, partially offset by a $0.2 million increase in operating expenses. Rental revenues were $1.6 million higher primarily due to higher minimum rents and percentage rents in the current-year period. The increase in rental revenues was partially offset by an unfavorable variance in the estimate for uncollectable revenues during the current-year period as compared to the prior-year period. Operating expenses increased in the current-year period primarily due to higher property repair and maintenance expense and payroll related costs, which was partially offset by lower real estate taxes. Same-center NOI increased 2.2% for the six months ended June 30, 2026 as compared to the prior-year period. The $4.1 million increase for the six months ended June 30, 2026 compared to the same period in 2025 primarily consisted of a $3.7 million increase in revenues and a $0.4 million decrease in operating expenses. Rental revenues were $3.4 million higher primarily due to higher minimum rents and percentage rents in the current-year period. The increase in rental revenues was partially offset by an unfavorable variance in the estimate for uncollectable revenues during the current-year period as compared to the prior-year period. Operating expenses decreased in the current-year period primarily due to lower real estate taxes, which was partially offset by higher property operating expenses primarily due to property repair and maintenance expense, payroll and insurance related costs. Operational Review The shopping center business is, to some extent, seasonal in nature with tenants typically achieving the highest levels of sales during the fourth quarter due to the holiday season, which generally results in higher percentage rents in the fourth quarter. Additionally, malls, lifestyle centers and outlet centers earn a large portion of their rents from short-term tenants during the holiday period. Thus, occupancy levels and revenue production are generally the highest in the fourth quarter of each year. Results of operations realized in any one quarter may not be indicative of the results likely to be experienced over the course of the fiscal year. 29 We derive the majority of our revenues from the malls. The sources of our revenues by property type were as follows: Six Months Ended June 30, 2026 2025 Malls 73.7 % 71.0 % Outlet Centers 5.1 % 5.3 % Lifestyle Centers 7.6 % 7.6 % Open-Air Centers 8.4 % 11.1 % All Other Properties 5.2 % 5.0 % Inline and Adjacent Freestanding Tenant Store Sales Inline and adjacent freestanding tenant store sales include reporting mall, lifestyle center and outlet center tenants of 10,000 square feet or less and exclude license agreements, which are retail leases that are temporary or short-term in nature and generally last more than three months but less than twelve months. The following is a comparison of our same-center tenant sales per square foot for mall, lifestyle center and outlet center tenants of 10,000 square feet or less (Excluded Properties are not included in sales metrics): Sales Per Square Foot for the Trailing Twelve Months Ended June 30, 2026 2025 % Change Malls, lifestyle centers and outlet centers same-center sales per square foot $ 455 $ 438 3.9% Occupancy Our portfolio occupancy is summarized in the following table (Excluded Properties are not included in occupancy metrics): As of June 30, 2026 2025 Total portfolio 90.4% 88.8% Malls, lifestyle centers and outlet centers: Total malls 88.3% 86.2% Total lifestyle centers 92.7% 90.8% Total outlet centers 91.5% 91.2% Total same-center malls, lifestyle centers and outlet centers 88.9% 88.9% Open-air centers 95.0% 93.6% All Other Properties 94.5% 91.0% Leasing The following is a summary of the total square feet of leases signed in the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Operating portfolio: New leases 257,968 211,811 409,234 323,605 Renewal leases 998,631 999,388 1,429,876 1,464,519 Development portfolio: New leases — 6,058 — 6,058 Total leased 1,256,599 1,217,257 1,839,110 1,794,182 30 Average annual base rents per square foot are based on contractual rents in effect as of June 30, 2026 and 2025, including the impact of any rent concessions. Average annual base rents per square foot for comparable small shop space of less than 10,000 square feet were as follows for each property type: Six Months Ended June 30, 2026 2025 Total portfolio (1) $ 27.82 $ 26.70 Malls, lifestyle centers and outlet centers: Total same-center malls, lifestyle centers and outlet centers 32.24 32.15 Total malls 31.96 31.75 Total lifestyle centers 32.88 32.68 Total outlet centers 32.78 30.35 Open-air centers 16.33 16.16 All Other Properties 21.62 21.75 (1)Excluded Properties are not included. Results from new and renewal leasing of comparable small shop space of less than 10,000 square feet during the three and six months ended June 30, 2026 for spaces that were previously occupied, based on the contractual terms of the related leases inclusive of the impact of any rent concessions, are set forth below. Rent concessions typically consist of periods of free rent. The impact of such concessions was not material for the period presented below. Property Type Square Feet Prior Gross Rent PSF New Initial Gross Rent PSF % Change Initial New Average Gross Rent PSF % Change Average Three Months Ended June 30, 2026: All Property Types (1) 585,056 $ 39.67 $ 41.33 4.2 % $ 43.17 8.8 % Malls, Lifestyle Centers & Outlet Centers (2) 531,821 40.17 41.54 3.4 % 43.45 8.2 % New leases (2) 88,376 37.79 46.73 23.7 % 51.27 35.7 % Renewal leases (2) 443,445 40.64 40.50 (0.3 )% 41.89 3.1 % Open-air Centers 40,406 35.11 40.54 15.5 % 41.57 18.4 % Six Months Ended June 30, 2026: All Property Types (1) 956,736 $ 41.12 $ 42.64 3.7 % $ 44.22 7.5 % Malls, Lifestyle Centers & Outlet Centers (2) 895,666 41.50 42.83 3.2 % 44.43 7.1 % New leases (2) 131,179 36.46 47.65 30.7 % 51.65 41.7 % Renewal leases (2) 764,487 42.37 42.01 (0.8 )% 43.20 2.0 % Open-air Centers 48,241 36.02 41.17 14.3 % 42.35 17.6 % (1)Includes malls, lifestyle centers, outlet centers, open-air centers and other. (2)The change is primarily driven by malls. New and renewal leasing activity of comparable small shop space of less than 10,000 square feet based on the lease commencement date is as follows: Number of Leases Square Feet Term (in years) Initial Rent PSF Average Rent PSF Expiring Rent PSF Initial Rent Spread Average Rent Spread Commencement 2026: New 79 213,605 7.33 $ 47.40 $ 51.70 $ 35.23 $ 12.17 34.5 % $ 16.47 46.7 % Renewal 514 1,509,581 3.05 43.60 44.62 43.37 0.23 0.5 % 1.25 2.9 % Commencement 2026 Total 593 1,723,186 3.62 44.07 45.50 42.36 1.71 4.0 % 3.14 7.4 % Commencement 2027: New 11 30,662 9.41 59.73 65.24 51.10 8.63 16.9 % 14.14 27.7 % Renewal 74 211,061 3.28 43.98 45.32 41.90 2.08 5.0 % 3.42 8.2 % Commencement 2027 Total 85 241,723 4.07 45.98 47.84 43.06 2.92 6.8 % 4.78 11.1 % Total 2026/2027 678 1,964,909 3.67 $ 44.30 $ 45.79 $ 42.45 $ 1.85 4.4 % $ 3.34 7.9 % Liquidity and Capital Resources As of June 30, 2026, we had $302.4 million available in unrestricted cash and U.S. Treasury securities, as well as unrestricted cash of $20.3 million, at our share, associated with unconsolidated joint ventures. Our total pro rata share of debt, excluding unamortized deferred financing costs and debt discounts, at June 30, 2026 was $2,533.5 million. We had $94.4 million in restricted cash at June 30, 2026 related to cash held in escrow accounts for insurance, real estate taxes, capital expenditures and tenant allowances as required by the terms of certain mortgage notes payable, as well as amounts related to cash management agreements with lenders of certain property-level mortgage indebtedness, which are 31 designated for debt service and operating expense obligations. We also had restricted cash of $6.9 million related to the properties that secure the 2032 non-recourse bank loan of which we may receive a portion via distributions quarterly in accordance with the provisions of the 2032 non-recourse bank loan. During the six months ended June 30, 2026, we continued to reinvest the cash from maturing U.S. Treasury securities into new U.S. Treasury securities. We designated our U.S. Treasury securities as available-for-sale. As of June 30, 2026, our U.S. Treasury securities have maturities through May 2027. Subsequent to June 30, 2026, we redeemed and purchased additional U.S. Treasury securities. See Note 15 for more information. During the six months ended June 30, 2026, we sold Hammock Landing and eight outparcels, which generated gross proceeds of $61.4 million at our share. In January 2026, the $48.6 million loan secured by Jefferson Mall entered default. In February 2026, the property was placed into receivership and we deconsolidated the property in conjunction with the property entering receivership. In May 2026, the $9.7 million loan, at our share, secured by The Outlet Shoppes at Gettysburg was placed into receivership and we deconsolidated the property due to a loss of control. For the six months ended June 30, 2026, we recognized gain on deconsolidation of $41.3 million. We anticipate returning the properties to the lender. See Note 8. In March 2026, we entered into a $425.0 million non-recourse loan (the "secured mall loan due 2031") that has a five-year term, maturing in April 2031, and a fixed interest rate of 7.40%. We used proceeds from redeemed U.S. Treasury securities and proceeds from the secured mall loan due 2031 to retire our existing $634.0 million secured term loan. The secured mall loan is secured by a pool of primarily mall properties that previously served as collateral for the secured term loan, which includes CherryVale Mall, Frontier Mall, Hanes Mall, Kirkwood Mall, Mall del Norte, Post Oak Mall, Richland Mall, Sunrise Mall, Turtle Creek Mall, Valley View Mall, West Towne Mall, Westmoreland Mall and Westmoreland Crossing. In March 2026, we entered into a $176.1 million variable‑rate, non‑recourse loan (the "secured lifestyle centers loan due 2032") that has a five‑year term, includes two one‑year extension options, and is interest‑only with a variable interest rate of SOFR plus 410 basis points. The secured lifestyle centers loan due 2032 is secured by Mayfaire Town Center, Pearland Town Center, Southaven Town Center and East Towne Mall, all of which served as collateral under the prior secured term loan. Also, the secured lifestyle centers loan due 2032 is subject to customary cross-default provisions with our $443.0 million 2032 non-recourse bank loan. In March 2026, we acquired Gateway Mall in Lincoln, NE for a purchase price of approximately $43.8 million including acquisition costs. The acquisition of Gateway Mall was financed through a $21.0 million non‑recourse, five‑year loan, which carries a fixed interest rate of 6.46%. In March 2026, the loan secured by Parkdale Mall and Parkdale Crossing entered maturity default. We are in discussions with the lender and intend to cooperate with the foreclosure or conveyance of the properties in satisfaction of the debt. In April 2026, we closed on a $43.0 million non-recourse, five-year loan secured by Northwoods Mall, which bears a fixed interest rate of 9.12%. Proceeds from the new loan were used to retire the previous loan. Under the previous loan, cash flows were being swept by the lender. In April 2026, we closed on a $6.6 million non-recourse, five-year loan secured by Coastal Grand Mall - Dick's Sporting Goods, which bears a fixed interest rate of 6.17%. Proceeds from the new loan were used to retire the previous loan. In May 2026, the loan secured by Arbor Place entered maturity default. We intend to cooperate with the foreclosure or conveyance of the property in satisfaction of the debt. In May 2026, we closed on a $97.5 million non-recourse, five-year loan secured by Fayette Mall, which bears a fixed interest rate of 7.25%. Proceeds from the new loan were used to retire the previous loan. In May 2026, we entered into a $71.9 million non-recourse, five-year loan secured by Hamilton Place, which bears a fixed interest rate of 6.85%. Proceeds from the new loan were used to retire the previous loan. In May 2026, the loan secured by Volusia Mall was modified, which extends the maturity date through October 2026. In June 2026, we were notified by the lender that the loan secured by The Outlet Shoppes at Laredo was in default. Subsequent to June 30, 2026, the loan was extended through November 2026. See Note 15. In June 2026, the loan secured by York Town Center was extended for four months through October 2026. We paid regular quarterly dividends of $0.45 per share for the first quarter of 2026 and $0.625 per share for the second quarter of 2026. Additionally, our board of directors declared a special dividend of $0.175 per share of common 32 stock, which was paid in cash in the second quarter of 2026. The special dividend was made as a result of improved cash flows following the refinancing of the prior secured term loan with the secured mall loan due 2031 and the secured lifestyle centers loan due 2032. As of June 30, 2026, our total share of consolidated, unconsolidated and other outstanding debt, excluding debt discounts and deferred financing costs, that has matured and remains outstanding in 2026 or is maturing during 2026, assuming all extension options are elected, is $441.9 million. Of the $441.9 million, $106.6 million relates to three property loans that are in receivership. Cash Flows - Operating, Investing and Financing Activities There was $202.6 million of cash, cash equivalents and restricted cash as of June 30, 2026, a decrease of $1.9 million from June 30, 2025. Of this amount, $101.3 million was unrestricted cash and cash equivalents as of June 30, 2026. Also, at June 30, 2026, we had $201.1 million in U.S. Treasuries with maturities through May 2027. Our net cash flows are summarized as follows (in thousands): Six Months Ended June 30, 2026 2025 Change Net cash provided by operating activities $ 133,188 $ 99,947 $ 33,241 Net cash provided by investing activities 51,576 98,055 (46,479 ) Net cash used in financing activities (135,096 ) (147,310 ) 12,214 Net cash flows $ 49,668 $ 50,692 $ (1,024 ) Cash Provided By Operating Activities Cash provided by operating activities increased primarily due to several factors. The acquisition of four malls in July 2025 and one mall in March 2026 increased rental revenues in the current-year period, as well as an increase at the comparable properties. Also, real estate tax refunds received in the current-year period contributed to the increase. The increase was partially offset by property operating expenses due to higher property repair and maintenance expense, payroll and insurance related costs, as well as higher interest expense on the 2032 non-recourse bank loan, as it was modified to increase the loan balance to finance the acquisition of four malls in July 2025. Cash Provided By Investing Activities Cash provided by investing activities decreased primarily due to the acquisition of a mall during March 2026 using a portion of funds from the redemption of U.S. Treasury securities, as well as significantly less proceeds from sales of real estate assets as compared to the prior-year period. The decrease was partially offset by a higher amount of net redemptions of U.S. Treasury securities and distributions from unconsolidated affiliates during the current-year period. Cash Used In Financing Activities Cash used in financing activities decreased primarily due to a lower amount of principal payments on loans, net of proceeds received on new loans, as well as significantly less dividends paid during the current-year period as compared to the prior-year period. The decrease was partially offset by an increase in debt issuance costs during the current-year period. 33 Debt The following tables summarize debt based on our pro rata ownership share, including our pro rata share of unconsolidated affiliates and excluding noncontrolling interests’ share of consolidated properties. Prior to consideration of unamortized deferred financing costs or debt discounts, of our $2,533.5 million outstanding debt at June 30, 2026, $2,532.5 million constituted non-recourse debt obligations and $1.0 million constituted recourse debt obligations. We believe the tables below provide investors and lenders a clearer understanding of our total debt obligations and liquidity (in thousands): June 30, 2026: Consolidated Noncontrolling Interests Other Debt (1) Unconsolidated Affiliates Total Weighted- Average Interest Rate (2) Fixed-rate debt: Non-recourse loans on operating properties $ 1,050,833 $ (12,653 ) $ 106,636 $ 315,643 $ 1,460,459 5.59% 2032 non-recourse bank loan 367,956 — — — 367,956 7.70% (3) Non-recourse secured mall loan due 2031 423,853 — — — 423,853 7.40% Recourse loan on an operating property — — — 1,012 1,012 7.26% Total fixed-rate debt 1,842,642 (12,653 ) 106,636 316,655 2,253,280 6.27% Variable-rate debt: Non-recourse loans on operating properties 30,680 (10,738 ) — 9,190 29,132 6.94% 2032 non-recourse bank loan 75,000 — — — 75,000 7.72% (3) Non-recourse secured lifestyle centers loan due 2032 176,080 — — — 176,080 7.72% Total variable-rate debt 281,760 (10,738 ) — 9,190 280,212 7.64% Total fixed-rate and variable-rate debt 2,124,402 (23,391 ) 106,636 325,845 2,533,492 6.43% Unamortized deferred financing costs (29,708 ) 177 — (2,389 ) (31,920 ) Debt discounts (4) (60,683 ) — — — (60,683 ) Total mortgage and other indebtedness, net $ 2,034,011 $ (23,214 ) $ 106,636 $ 323,456 $ 2,440,889 December 31, 2025: Consolidated Noncontrolling Interests Other Debt (1) Unconsolidated Affiliates Total Weighted- Average Interest Rate (2) Fixed-rate debt: Non-recourse loans on operating properties $ 1,133,962 $ (23,881 ) $ 48,271 $ 342,081 $ 1,500,433 4.97% 2032 non-recourse bank loan 367,956 — — — 367,956 7.70% (3) Recourse loan on an operating property — — — 2,797 2,797 7.26% Total fixed-rate debt 1,501,918 (23,881 ) 48,271 344,878 1,871,186 5.51% Variable-rate debt: Non-recourse loans on operating properties 31,380 (10,983 ) — 9,261 29,658 7.46% 2032 non-recourse bank loan 75,000 — — — 75,000 7.97% (3) Non-recourse, secured term loan 646,722 — — — 646,722 6.74% Total variable-rate debt 753,102 (10,983 ) — 9,261 751,380 6.89% Total fixed-rate and variable-rate debt 2,255,020 (34,864 ) 48,271 354,139 2,622,566 5.91% Unamortized deferred financing costs (9,276 ) 83 — (3,006 ) (12,199 ) Debt discounts (4) (74,959 ) 251 — — (74,708 ) Total mortgage and other indebtedness, net $ 2,170,785 $ (34,530 ) $ 48,271 $ 351,133 $ 2,535,659 (1)Represents the outstanding loan balance for properties in receivership. Receivership properties are deconsolidated due to a loss of control when the property is placed into receivership in connection with the foreclosure process. (2)Weighted-average interest rate excludes amortization of deferred financing costs. (3)The interest rate is a fixed 7.70% for $367,956 of the outstanding loan balance through July 2030, with the remaining loan balance bearing a variable interest rate based on the 30-day SOFR plus 4.10%. The full principal balance will convert to a variable rate after July 2030. The Operating Partnership has an interest rate swap on a notional amount of $32,000 related to the variable portion of the loan to effectively fix the interest rate at 7.3975%. (4)In conjunction with the acquisition of the Company's partner's 50% joint venture interests in CoolSprings Galleria, Oak Park Mall and West County Center and the implementation of fresh start accounting upon emergence from bankruptcy, the Company estimated the fair value of its mortgage notes with the assistance of a third-party valuation advisor. This resulted in recognizing a debt discount, which is accreted over the term of the respective debt using the effective interest method. The weighted-average remaining term of our total share of consolidated and unconsolidated debt, excluding debt discounts and deferred financing costs, was 3.6 years and 2.6 years at June 30, 2026 and December 31, 2025, respectively. The weighted-average remaining term of our pro rata share of fixed-rate debt, excluding debt discounts and deferred financing costs, was 3.5 years and 3.2 years at June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026 and December 31, 2025, our total share of consolidated and unconsolidated variable-rate debt, excluding debt discounts and deferred financing costs, represented 11.1% and 28.7%, respectively, of our total pro rata share of debt, excluding debt discounts and deferred financing costs. 34 See Note 8 to the condensed consolidated financial statements for information concerning activity related to unconsolidated affiliates. Equity We paid regular quarterly dividends of $0.45 per share for the first quarter of 2026 and $0.625 per share for the second quarter of 2026. Additionally, our board of directors declared a special dividend of $0.175 per share of common stock, which was paid in cash in the second quarter of 2026. The special dividend was made as a result of improved cash flows following the refinancing of the prior secured term loan with the secured mall loan due 2031 and the secured lifestyle centers loan due 2032. The decision to declare and pay dividends on any outstanding shares of our common stock, as well as the timing, amount and composition of any such future dividends, will be at the sole discretion of our board of directors and will depend on our earnings, taxable income, FFO, liquidity, financial condition, capital requirements, contractual prohibitions or other limitations under our then-current indebtedness, the annual distribution requirements under the REIT provisions of the Internal Revenue Code, Delaware law and such other factors as our board of directors deems relevant. Any dividends payable will be determined by our board of directors based upon the circumstances at the time of declaration. Our actual results of operations will be affected by a number of factors, including the revenues received from our properties, our operating expenses, interest expense, capital expenditures and the ability of the anchors and tenants at our properties to meet their obligations for payment of rents and tenant reimbursements. Subsequent to June 30, 2026, our board of directors declared a regular cash dividend of $0.625 per share for the quarter ending September 30, 2026. See Note 15. Capital Expenditures The following table, which excludes expenditures for developments, redevelopments and expansions, summarizes our capital expenditures, including our share of unconsolidated affiliates' capital expenditures, for the three and six months ended June 30, 2026 compared to the same period in 2025 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Tenant allowances (1) $ 4,457 $ 3,327 $ 9,035 $ 9,870 Renovations 29 — 29 — Maintenance capital expenditures: Parking area and parking area lighting 3,018 2,059 3,370 3,056 Roof replacements 1,010 1,604 1,086 2,880 Other capital expenditures 8,602 5,060 14,067 8,975 Total maintenance capital expenditures 12,630 8,723 18,523 14,911 Capitalized overhead 220 214 591 594 Capitalized interest 111 137 233 250 Total capital expenditures $ 17,447 $ 12,401 $ 28,411 $ 25,625 (1)Tenant allowances primarily relate to new leases. Tenant allowances related to renewal leases were not material for the periods presented. Annual capital expenditures budgets are prepared for each of our properties that are intended to provide for all necessary recurring and non-recurring capital expenditures. We believe that property operating cash flows, which include reimbursements from tenants for certain expenses, and readily available cash on hand will provide the necessary funding for these expenditures. Off-Balance Sheet Arrangements Unconsolidated Affiliates We have ownership interests in 24 unconsolidated affiliates as of June 30, 2026 that are described in Note 8 to the condensed consolidated financial statements. The unconsolidated affiliates are accounted for using the equity method of accounting and are reflected in the condensed consolidated balance sheets as investments in unconsolidated affiliates. The following are circumstances when we may consider entering into a joint venture with a third party: •Third parties may approach us with opportunities in which they have obtained land and performed some pre-development activities, but they may not have sufficient access to the capital resources or the development and leasing expertise to bring the project to fruition. We enter into such arrangements when we determine 35 such a project is viable and we can achieve a satisfactory return on our investment. We typically earn development fees from the joint venture and provide management and leasing services to the property for a fee once the property is placed in operation. •We determine that we may have the opportunity to capitalize on the value we have created in a property by selling an interest in the property to a third party. This provides us with an additional source of capital that can be used to develop or acquire additional real estate assets that we believe will provide greater potential for growth. When we retain an interest in an asset rather than selling a 100% interest, it is typically because this allows us to continue to manage the property, which provides us the ability to earn fees for management, leasing, development and financing services provided to the joint venture. •We also pursue opportunities to contribute available land at our properties into joint venture partnerships for development of primarily non-retail uses such as hotels, office, self-storage and multifamily. We typically partner with developers who have expertise in the non-retail property types. Critical Accounting Policies Our discussion and analysis of financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the financial statements and disclosures. Some of these estimates and assumptions require application of difficult, subjective, and/or complex judgment about the effect of matters that are inherently uncertain and that may change in subsequent periods. We evaluate our estimates and assumptions on an ongoing basis. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Our Annual Report on Form 10-K for the year ended December 31, 2025 contains a discussion of our critical accounting policies and estimates in the Management's Discussion and Analysis of Financial Condition and Results of Operations section. There have been no material changes to these policies and estimates during the six months ended June 30, 2026. Our significant accounting policies are disclosed in Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. Non-GAAP Measure Funds from Operations FFO is a widely used non-GAAP measure of the operating performance of real estate companies that supplements net income (loss) determined in accordance with GAAP. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income (loss) (computed in accordance with GAAP) excluding gains or losses on sales of depreciable operating properties and impairment losses of depreciable properties, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests. Adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests are calculated on the same basis. We define FFO as defined above by NAREIT. Our method of calculating FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. We believe that FFO provides an additional indicator of the operating performance of our properties without giving effect to real estate depreciation and amortization, which assumes the value of real estate assets declines predictably over time. Since values of real estate assets have historically risen or fallen with market conditions, we believe that FFO enhances investors’ understanding of our operating performance. The use of FFO as an indicator of financial performance is influenced not only by the operations of our properties and interest rates, but also by our capital structure. We believe FFO allocable to Operating Partnership common unitholders is a useful performance measure since we conduct substantially all our business through our Operating Partnership and, therefore, it reflects the performance of our properties in absolute terms regardless of the ratio of ownership interests of our common shareholders and the noncontrolling interest in our Operating Partnership. In our reconciliation of net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders that is presented below, we make an adjustment to add back noncontrolling interest in income (loss) of our Operating Partnership in order to arrive at FFO of the Operating Partnership common unitholders. FFO does not represent cash flows from operations as defined by GAAP, is not necessarily indicative of cash available to fund all cash flow needs and should not be considered as an alternative to net income (loss) for purposes of evaluating our operating performance or to cash flow as a measure of liquidity. We believe that it is important to identify the impact of certain significant items on our FFO measures for a reader to have a complete understanding of our results of operations. Therefore, we have also presented adjusted FFO measures 36 excluding these significant items from the applicable periods. Please refer to the reconciliation of net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders below for a description of these adjustments. The reconciliation of net income attributable to common shareholders to FFO allocable to Operating Partnership common unitholders for the three and six months ended June 30, 2026 and 2025 is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income attributable to common shareholders $ 45,358 $ 2,567 $ 90,761 $ 10,779 Noncontrolling interest in income of Operating Partnership 8 2 16 8 Earnings allocable to unvested restricted stock (347 ) (524 ) (1,239 ) (493 ) Depreciation and amortization expense of: Consolidated properties 36,283 39,702 74,381 85,243 Unconsolidated affiliates 3,111 3,256 6,255 6,688 Non-real estate assets (227 ) (247 ) (440 ) (494 ) Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries (322 ) (379 ) (675 ) (805 ) Loss on impairment, including our share of unconsolidated affiliates, net of taxes — 1,078 — 1,078 Gain on depreciable property, net of taxes (24,013 ) — (24,013 ) (21,706 ) FFO allocable to Operating Partnership common unitholders 59,851 45,455 145,046 80,298 Debt discount accretion, including our share of unconsolidated affiliates and net of noncontrolling interests' share (1) 5,143 9,197 10,822 18,404 Adjustment for unconsolidated affiliates with negative investment (2) (1,781 ) 2,102 (4,665 ) 3,636 Non-cash default interest expense (3) 1,042 517 1,589 880 Gain on deconsolidation (4) (5,925 ) — (41,259 ) — Loss on extinguishment of debt (5) — — — 217 FFO allocable to Operating Partnership common unitholders, as adjusted $ 58,330 $ 57,271 $ 111,533 $ 103,435 (1)In conjunction with the acquisition of our partners' 50% joint venture interests in CoolSprings Galleria, Oak Park Mall and West County Center and the implementation of fresh start accounting upon emergence from bankruptcy, we recognized debt discounts equal to the difference between the outstanding balance of mortgage notes payable and the estimated fair value of such mortgage notes payable. The debt discounts are accreted as additional interest expense over the terms of the respective mortgage notes payable using the effective interest method. (2)Represents our share of the earnings (losses) before depreciation and amortization expense of unconsolidated affiliates where we are recognizing equity in earnings (losses) on a cash basis because our investment in the unconsolidated affiliate is below zero. (3)The three and six months ended June 30, 2026 and 2025 include default interest on loans past their maturity date. (4)During the three months ended June 30, 2026, we deconsolidated The Outlet Shoppes at Gettysburg due to a loss of control when the property was placed into receivership in connection with the foreclosure process. During the six months ended June 30, 2026, we deconsolidated Jefferson Mall and The Outlet Shoppes at Gettysburg due to a loss of control when the properties were placed into receivership in connection with the foreclosure process. (5)During the six months ended June 30, 2025, we made a partial paydown on the 2032 non-recourse bank loan and recognized loss on extinguishment of debt related to a prepayment fee. The increase in FFO, as adjusted, for the three and six months ended June 30, 2026 was primarily driven by the acquisition of four malls in July 2025 and one mall in March 2026. Also, real estate tax refunds received and lower stock-based compensation expense in the current-year periods as compared to the prior-year periods contributed to the increase. The increase was partially offset by higher property operating expenses primarily due to property repair and maintenance expense, payroll and insurance related costs, as well as an unfavorable variance in the estimate for uncollectable revenues during the current-year periods as compared to the prior-year periods. Additionally, the increase was partially offset by higher interest expense on the 2032 non-recourse bank loan, as it was modified to increase the loan balance to finance the acquisition of four malls in July 2025. Lastly, the increase was partially offset by dispositions since the prior-year periods. 37