Highlands REIT, Inc.

The following is a list of the investment properties and unimproved land in the Highlands portfolio as of December 31, 2025.

Investment Property Name · Location · Segment · Classification · Total Gross Leasable Area (GLA) (in square feet) · Percentage of Economic Occupancy (1) · Annualized Base Rent (2) (in thousands) · Annualized Base Rent per Leased Square Foot (3) · Significant Tenants (4)

1620 Central · Evanston, IL · Multi-Family · Multi-Family · 51,808 · 100.0 · 1,791 · 34.58 · N/A

Buerger Brothers Lofts · Denver, CO · Multi-Family · Multi-Family · 39,961 · 71.9 · 587 · 20.42 · N/A

Chamber Lofts · Denver, CO · Multi-Family · Multi-Family · 39,259 · 59.5 · 550 · 23.54 · N/A

Kenilworth Court · Denver, CO · Multi-Family · Multi-Family · 16,611 · 81.0 · 382 · 28.40 · N/A

Tennyson44 · Denver, CO · Multi-Family · Multi-Family · 35,280 · 92.1 · 976 · 30.04 · N/A

The Detroit and Detroit Terraces · Denver, CO · Multi-Family · Multi-Family · 41,594 · 79.3 · 1,081 · 32.78 · N/A

The Lafayette · Denver, CO · Multi-Family · Multi-Family · 25,575 · 70.0 · 458 · 25.61 · N/A

The Locale · Allendale, MI · Multi-Family · Multi-Family · 240,824 · 93.7 · 4,560 · 20.21 · N/A

The Muse · Denver, CO · Multi-Family · Multi-Family · 103,628 · 95.2 · 2,960 · 30.02 · N/A

The Q Lofts · San Diego, CA · Multi-Family · Multi-Family · 44,160 · 92.7 · 1,997 · 48.76 · N/A

The Sterling · San Diego, CA · Multi-Family · Multi-Family · 11,514 · 96.2 · 551 · 49.76 · N/A

The View · San Diego, CA · Multi-Family · Multi-Family · 37,745 · 97.4 · 1,279 · 34.78 · N/A

Buckhorn Plaza · Bloomsburg, PA · Other · Retail · 83,960 · 92.3 · 1,246 · 16.08 · Marshalls; Dollar Tree

Hudson Correctional Facility · Hudson, CO · Other · Correctional Facility · 301,029 · — · — · — · N/A

Market at Hilliard · Hilliard, OH · Other · Retail · 115,283 · 100.0 · 1,861 · 16.14 · Aldi; Michaels; Office Max; Old Navy

Palazzo Land · Orlando, FL · Other · Unimproved Land · — · — · — · — · N/A

Sherman Plaza (5) · Evanston, IL · Other · Retail · 151,846 · 91.7 · 4,042 · 29.04 · Northwestern Medical; Target; Life Time Fitness

Trimble · San Jose, CA · Other · Office/R&D · 176,905 · 100.0 · 5,517 · 31.18 · Veeco Instruments, Inc., XP Power, LLC

Total · 1,516,982 · 74.0 · 29,838 · 26.58

(1)Economic occupancy is defined as the percentage of total gross leasable area for which a tenant is obligated to pay rent under the terms of its lease agreement, regardless of the actual use or occupation by that tenant of the area being leased.

(2)Annualized base rent is computed as revenue for the last month of the period multiplied by twelve months. Annualized rent includes the effect of rent abatements, lease inducements, and straight-line rent GAAP adjustments.

(3)Annualized base rent per leased square foot is computed as annualized base rent divided by the total occupied square footage at the end of the period.

(4)Several of our investment properties have one or more tenants occupying more than 10% of the investment property’s gross leasable area.

(5)A portion of the land underlying this investment property is subject to a ground lease. The term of the lease expires in October 2042.

Significant Assets

As of · Total GLA(Sq. Ft.) · Percentage of Economic Occupancy · Average Annual Base Rent per Leased Square Foot

December 31, 2025 · 1,516,982 · 74.0% · 26.58

December 31, 2024 · 1,519,763 · 72.4% · 25.93

December 31, 2023 · 2,009,412 · 80.2% · 17.02

For the years ended December 31, 2025 and 2024, The Locale, Sherman Plaza and Trimble each accounted for 10% or more of our total revenues and The Muse, Sherman Plaza and Trimble each accounted for 10% or more of our total assets.

As of · Total GLA(Sq. Ft.) · Percentage of Economic Occupancy · Average Annual Base Rent per Leased Square Foot

The Muse

December 31, 2025 · 103,628 · 95.2% · 30.02

December 31, 2024 · 103,628 · 92.6% · 31.16

December 31, 2023 · 103,628 · 98.6% · 29.98

The Locale

December 31, 2025 · 240,824 · 93.7% · 20.21

December 31, 2024 · 240,824 · 96.7% · 19.29

December 31, 2023 · 240,824 · 99.2% · 18.22

Sherman Plaza

December 31, 2025 · 151,846 · 91.7% · 29.04

December 31, 2024 · 151,752 · 55.6% · 28.24

December 31, 2023 · 151,752 · 55.6% · 27.63

Trimble

December 31, 2025 · 176,905 · 100.0% · 31.18

December 31, 2024 · 176,905 · 100.0% · 29.64

December 31, 2023 · 176,905 · 100.0% · 11.56

For Sherman Plaza, the significant increase in occupancy during the year ended December 31, 2025 was the result of lease commencement for LTF Lease Company, LLC, an approximately 61,000 square foot Life Time Fitness.

Lease Expirations

Lease Expiration Year · Number ofExpiring Leases · GLA ofExpiring Leases(Sq. Ft.) · AnnualizedRent ofExpiring Leases(in thousands) · Percent of TotalLeased Area · Percent of TotalAnnualizedRent · ExpiringRent/SquareFoot

2026 · 7 · 40,509 · 633 · 7.8 · 4.7 · 15.64

2027 · 4 · 13,583 · 350 · 2.6 · 2.6 · 25.77

2028 · 6 · 26,594 · 481 · 5.1 · 3.5 · 18.09

2029 · 11 · 87,760 · 1,933 · 16.9 · 14.2 · 22.02

2030 · 9 · 60,402 · 913 · 11.7 · 6.7 · 15.12

2031 · 1 · 2,441 · 119 · 0.5 · 0.9 · 48.76

2032 · 3 · 10,599 · 225 · 2.0 · 1.6 · 21.20

2033 · 1 · 815 · 28 · 0.2 · 0.2 · 33.95

2034 · — · — · — · — · — · —

2035 · 2 · 8,813 · 213 · 1.7 · 1.6 · 24.16

Thereafter · 4 · 266,930 · 8,705 · 51.5 · 64.0 · 32.61

48 · 518,446 · 13,600 · 100.0 · 100.0 · 26.23

Mortgage Financing

Investment Property · Current Principal amount (in thousands) · Interest and Amortization Provisions · Interest Rate · Prepayment Provisions · Maturity Date

Buckhorn Plaza · 8,910 · Fixed Interest-Only for first 12 months · 4.35% · If prior to 8/6/2026 must be in full, with penalty · 11/6/2026

Market at Hilliard · 13,737 · Fixed Interest-Only for first 12 months · 4.70% · If prior to 9/6/2026 must be in full, with penalty · 12/6/2026

• Our ongoing business strategy involves the selling of investment properties; however, we may be unable to sell an investment property at acceptable terms and conditions, if at all.
• We may not successfully implement our strategy, in which case you may have to hold your investment for an indefinite period.
• Real estate is a competitive business.
• Any difficulties in obtaining capital necessary to make tenant improvements, pay leasing commissions and make capital improvements at our investment properties could materially and adversely affect our financial condition and results of operations.
• There are inherent risks with investments in real estate, including the relative illiquidity of such investments.
• Our investment properties may be subject to impairment charges that may materially affect our financial results.
• Many real estate costs and certain operating costs are fixed, even if revenue from our investment properties decreases.
• Operating and other expenses may increase in the future, which may cause our cash flow and our operating results to decrease.
• Our revenue from our retail investment properties will be impacted by the success and economic viability of our anchor retail tenants. Our reliance on single or significant tenants in certain buildings may decrease our ability to lease vacated space and adversely affect our financial condition, cash flows and results of operations.
• Our reputation and business may be harmed by news or social media coverage or other external scrutiny of the Company
• The land underlying a portion of one of our investment properties is subject to a ground lease, which could limit our use of the investment property, and a breach or termination of the ground lease could materially and adversely affect us.
• Uninsured and underinsured losses at our investment properties could materially and adversely affect our business, financial condition or results of operations.
• We could incur significant, material costs related to government regulation and litigation with respect to environmental matters, which could materially and adversely affect our business, financial condition or results of operations.
• The costs of compliance with laws and regulations relating to our investment properties may adversely affect our business, financial condition or results of operations.
• Adverse judgments or settlements resulting from legal proceedings in which we may be involved in the normal course of our business could reduce our profits or limit our ability to operate our business.
• If we fail to maintain an effective system of disclosure controls and procedures and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired.
• We are increasingly dependent on information technology, and potential cyber-attacks, security problems, or other disruptions present risks and could disrupt our operations, result in the loss of confidential information or damage our business relationships and reputation.
• Risks Related to Debt Financing
• If we are unable to repay or refinance our existing debt as it comes due, we may need to sell the underlying investment property sooner than anticipated or the lender may foreclose, in which case our financial condition, cash flows and results of operations could be materially adversely affected.
• Our special-purpose property-owning subsidiaries may default under non-recourse mortgage loans.
• Our failure to comply with the covenants in our debt agreements could materially and adversely affect us.
• We are subject to obligations under certain “non-recourse carve-out” indemnity agreements and guarantees that may be deemed to be triggered in the future.
• We may be unable to satisfy our debt obligations upon a change of control.
• Volatility in the financial markets and challenging economic conditions, could adversely affect our ability to secure debt financing on attractive terms and our ability to service any future indebtedness that we may incur.
• Borrowings may reduce the funds available for distribution and increase the risk of loss since defaults may cause us to lose the investment properties securing the loans.
• If we are unable to borrow at favorable rates, we may not be able to refinance existing loans at maturity.
• Covenants applicable to current or future debt could restrict our ability to make distributions to our stockholders and, as a result, we may be unable to make distributions necessary to qualify as a REIT, which could materially and adversely affect us and the value of our common stock.
• Our organizational documents have no limitation on the amount of indebtedness we may incur. As a result, we may become highly leveraged in the future, which could materially and adversely affect us.
• Increases in interest rates could increase the amount of our debt payments and adversely affect our ability to make distributions to our stockholders.
• Risks Related to Our Status as a REIT
• Failure to remain qualified as a REIT would cause us to be taxed as a regular corporation, which would substantially reduce funds available for distributions to our stockholders.
• Even if we continue to qualify as a REIT for tax purposes, we may face other tax liabilities that reduce our cash flows.
• Failure to make required distributions would subject us to U.S. federal corporate income tax.
• REIT distribution requirements could adversely affect our liquidity and may force us to borrow funds or sell investment properties during unfavorable market conditions.
• The prohibited transactions tax may limit our ability to dispose of our investment properties and we could incur a material tax liability if the Internal Revenue Service (“IRS”) successfully asserts that the 100% prohibited transaction tax applies to some of or all our dispositions.
• The stock ownership limit imposed by the Code for REITs and our charter may restrict our business combination opportunities and you may be restricted from acquiring or transferring certain amounts of our common stock.
• Dividends payable by REITs do not qualify for the reduced tax rates available for some dividends.
• Complying with REIT requirements may limit our ability to hedge effectively.
• We may be subject to adverse legislative or regulatory tax changes that could reduce the value of our common stock.
• The ability of our board of directors to revoke our REIT qualification without stockholder approval may cause adverse consequences to our stockholders.
• Risks Related to Ownership of Our Common Stock and Our Corporate Structure
• There is no established public market for our shares and you may not be able to sell your shares.
• The estimated value per share of our common stock is based on a number of assumptions and estimates that may not be accurate or complete and is also subject to a number of limitations.
• Our cash available for distribution to stockholders may not be sufficient to pay distributions at expected or required levels, and we may need external sources in order to make such distributions, or we may not be able to make such distributions at all.
• Future issuances of debt securities, which would rank senior to our common stock upon our liquidation, and future issuances of equity securities, which would dilute the holdings of our existing common stockholders and may be senior to our common stock for the purposes of making distributions, periodically or upon liquidation, may negatively affect the value of our common stock.
• Your percentage ownership in us may be diluted in the future.
• Increases in market interest rates may reduce demand for our common stock and result in a decline in the value of our common stock.
• Our rights and the rights of our stockholders to take action against our directors and officers are limited.
• Certain provisions of Maryland law could inhibit changes in control.
• All of our investment properties are owned by subsidiaries. Highlands depends on dividends and distributions from these subsidiaries. The creditors of these subsidiaries are entitled to amounts payable to them by the subsidiaries before the subsidiaries may pay any dividends or other distributions to Highlands.
• Our charter places limits on the amount of common stock that any person may own.
• Our charter permits our board of directors to authorize the issuance of preferred stock on terms that may subordinate the rights of the holders of our current common stock or discourage a third party from acquiring us.
• Our conflict of interest policy may not be successful in eliminating the influence of future conflicts of interest that may arise between us and our directors, officers and employees.
• Our board of directors may change our investment strategy without stockholder approval, which could alter the nature of your investment.