Revenue outperformance driven by lease renewals
Two August renewals at 8% above expiring rents added $420K to quarterly revenue vs. budget assumptions.
Q4 renewal pipeline de-risks near-term revenue
Three leases representing 28% of GLA in advanced negotiation - expected to close at market or above.
CapEx overrun requires board action
Unplanned HVAC replacement at Building C exceeded budget by $340K. Reserve fund reallocation needed.
Operating leverage continues to expand margins
Fixed cost base spread over higher revenues drove 210 bps of EBITDA margin expansion year-over-year.