Risk factors

Sustainability language now emphasizes diverging stakeholder demands and possible legal, operational, reputational and financial consequences.

New tariffs on steel, aluminum and other imports may raise material costs or weaken demand; reciprocal tariffs could also affect sales in targeted markets.

New risks address AI errors, cybersecurity and fair-housing exposure, plus tariffs and labor shortages affecting renovations and operations.

The restructuring risk was dropped, removing warnings that cost-cutting could weaken R&D, customer response, quality, and production capacity.

Estimated pipeline development capacity fell from 11.0 million to 4.9 million square feet, including JBG SMITH’s share declining from 8.9 million to 3.6 million.

KMT’s share of inland tank barges rose to 28%, while industry additions and retirements were nearly even in 2025.

Pandemic language now focuses on tenants’ ability to pay rent and recoveries after default, rather than supply, labor, and e-commerce effects.

Federal NOLs were fully used in 2025; state losses remain, and tax-credit expiration dates moved to 2042.

Tariff disclosure now identifies increased Canada and Mexico tariffs and the 2026 USMCA review as specific uncertainties.

The new credit-facility risk specifies variable-rate pricing tied to base rates or Adjusted Term SOFR, with margins up to 2.500%.

A.M. Best kept A ratings but changed the outlook from Stable to Negative.

The October 2025 pivot to holistic metabolic health requires investment in products, research, marketing and coach support to reverse declining performance.