Debt

9 Months Ended

Sep. 30, 2025

Debt Disclosures

Debt Disclosure [Text Block]

6. Debt

In April 2025 and July 2025, the Company drew down $27.0 million and $23.0 million, respectively, on its $500.0 million credit facility.

In September 2025, the Company entered into the Amended Credit Agreement, which expanded its unsecured debt borrowing capacity and extended the maturity of its term loans. The Amended Credit Agreement continues to provide for a $500.0 million revolving credit facility and increases the aggregate amount of the Company’s term loan facilities from $675.0 million (on four existing term loans) to $850.0 million (on three new term loans). The following includes the details of the Amended Credit Agreement:

● The maturity of the revolving credit facility was extended from July 25, 2026, with two six-month options to extend, to September 24, 2029, with two six-month options to extend;

● The new term loan facilities include a $275.0 million term loan, of which $185.0 million was funded in September 2025 and the remaining $90.0 million is available as a one-time delayed draw at any time through February 2026 (“New Term Loan 1”), a $275.0 million term loan funded in September 2025 (“New Term Loan 2”), and a $300.0 million term loan funded in September 2025 ("New Term Loan 3”) (together the “New Term Loans”);

● The Company utilized the $760.0 million in proceeds received from the New Term Loans to consolidate its previous four term loans into the three New Term Loans and to repay the $50.0 million outstanding on its revolving credit facility;

● The revolving credit facility and the New Term Loans bear interest pursuant to a leverage-based pricing grid ranging from 1.40% to 2.25% and 1.35% to 2.20%, respectively, over the applicable term SOFR;

● New Term Loan 1 has an initial maturity of January 24, 2029, with two twelve-month extension options (subject to customary fees), which would result in an extended maturity of January 24, 2031;

● New Term Loan 2 has an initial maturity of January 24, 2030, with one twelve-month extension option (subject to customary fees), which would result in an extended maturity of January 24, 2031;

● New Term Loan 3 has a maturity of January 24, 2031, with no available extension options; and

● The New Term Loans are available to be prepaid at any time with no prepayment penalty.

In connection with the Amended Credit Agreement, the Company incurred debt issuance costs of $17.5 million. A total of $7.7 million of the debt issuance costs were allocated to the revolving credit facility and the delayed draw portion of New Term Loan 1 and are included in prepaid expenses and other assets on the Company’s consolidated balance sheet as of September 30, 2025, and $9.9 million of the debt issuance costs were allocated to the funded New Terms Loans and are included in debt, net of unamortized deferred financing costs on the Company’s balance sheet as of September 30, 2025. In addition, the Company recorded a $0.2 million loss on extinguishment of debt related to the accelerated amortization of deferred financing costs.

As of September 30, 2025, the Company had no amount outstanding on its credit facility, with $500.0 million of capacity available for borrowing under the facility. The Company’s ability to draw on the credit facility is subject to the Company’s compliance with various financial covenants.

Debt consisted of the following (in thousands):

						Balance Outstanding as of
		September 30, 2025				September 30,		December 31,
		Rate Type	Interest Rate		Maturity Date	2025		2024
						(unaudited)
Unsecured Corporate Credit Facilities (1)
Term Loan 1	(2)	Fixed	4.68	%	January 24, 2029	$	185,000	$	175,000
Term Loan 2	(3)	Fixed	5.34	%	January 24, 2030		275,000		175,000
Term Loan 3	(4)	Floating	5.53	%	January 24, 2031		300,000		225,000
Term Loan 4	(5)	N/A	N/A		N/A		—		100,000
Total unsecured corporate credit facilities						$	760,000	$	675,000
Unsecured Senior Notes
Series A		Fixed	4.69	%	January 10, 2026	$	65,000	$	65,000
Series B		Fixed	4.79	%	January 10, 2028		105,000		105,000
Total unsecured senior notes						$	170,000	$	170,000
Total debt							930,000		845,000
Unamortized deferred financing costs							(12,548)		(3,953)
Debt, net of unamortized deferred financing costs						$	917,452	$	841,047

(1) The variable interest rates on the Company’s unsecured corporate credit facilities are based on a pricing grid depending on the Company’s leverage ratio plus SOFR.

(2) New Term Loan 1 is currently subject to one interest rate swap derivative (see Note 4). New Term Loan 1 has an initial maturity of January 24, 2029 with two twelve-month options to extend at the Company’s election, which would result in an extended maturity of January 24, 2031, upon the payment of applicable fees and the satisfaction of certain customary conditions.

(3) New Term Loan 2 is subject to three interest rate swap derivatives (see Note 4). New Term Loan 2 has an initial maturity of January 24, 2030 with one twelve-month option to extend at the Company’s election, which would result in an extended maturity of January 24, 2031, upon the payment of applicable fees and the satisfaction of certain customary conditions.

(4) New Term Loan 3 is subject to one interest rate swap derivative (see Note 4) covering a partial balance of $25.0 million.

(5) Term Loan 4 was consolidated into the New Term Loans in conjunction with the Company’s Amended Credit Agreement.

Interest Expense

Total interest incurred and expensed on the Company’s debt was as follows (unaudited and in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Interest expense on debt	$	12,927	$	12,395	$	37,209	$	37,012
Noncash interest on derivatives, net		(495)		3,326		668		1,095
Amortization of deferred financing costs		980		741		2,782		2,219
Capitalized interest		—		(480)		(1,401)		(641)
Total interest expense	$	13,412	$	15,982	$	39,258	$	39,685