Shares declined 6.1% following Q2 results as investors focused on slower-than-expected same-asset NOI performance and margin pressure from a one-time retroactive property tax assessment, alongside fair value adjustments reflecting rising market cap rates.
- Same-asset NOI declined 12%, missing the 10% contraction anticipated internally, primarily due to a one-time retroactive property tax charge.
- FFO per unit of $0.24 and AFFO per unit of $0.17 were in line with expectations but weighed down by the tax charge and reduced interest income.
- The portfolio ended the quarter 84.4% occupied and 86.7% leased, slightly above prior guidance but with occupancy expected to be flat or down modestly in Q3 due to known nonrenewals.
- Leasing activity remained steady with 522,000 square feet completed, though this alone did not offset broader operational headwinds.
- A fair value adjustment on properties reflected higher market discount and cap rates, highlighting pressure on asset valuations amid current market conditions.
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