Risk factors

Debt fell to $6.59 billion from $6.65 billion, while the Path Forward Plan’s deleveraging horizon shortened to two to three years.

The climate-change discussion now focuses on physical weather damage to loan collateral, customers’ businesses, and bank operations.

Newly highlighted demand from data centers and other large customers could require costly infrastructure and create concentrated, more volatile revenues.

New risks cover AI-related liability and litigation; AI flaws could create bias in credit decisions and regulatory costs.

U.S. vaccine demand and costs may shift with FDA policies, post-marketing requirements, and CDC/ACIP recommendations.

Newly highlights expanded Section 232 and other tariffs, which could raise input costs, disrupt supply chains, and shift customer demand.

Talc-related cases increased from over 600 to over 900; the Chapter 11 process remains underway.

Tenant bad-debt expense fell to $0.7 million in 2025 from $1.5 million in 2024; default responses may shift properties to RIDEA operations, increasing operating risk.

Hong Kong generated 82% of revenue in both 2025 and 2024, keeping the China-linked concentration unchanged.

ADTech is exposed to U.S. defense and space budgets, appropriations delays, and shifting acquisition priorities.

Three U.S. labor agreements expire in 2026, covering about 24% of the global workforce, including East Alton and Lake City facilities.

The risk section adds competitive threats from generative and agentic AI, including clients building their own capabilities.