Debt Obligations

3 Months Ended

Mar. 31, 2025

Debt Disclosure [Abstract]

Debt Obligations

Debt Obligations

Debt obligations consist of the following (dollars in thousands):

	March 31, 2025		December 31, 2024
Mortgages payable	$	449,477	$	450,481
Junior subordinated notes	37,400		37,400
Credit facility	—		—
Deferred financing costs (1)	(3,998)		(4,247)
Total debt obligations, net of deferred costs	$	482,879	$	483,634

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(1) Excludes $340 and $374 of deferred financing costs related to the credit facility which are reflected in other assets at March 31, 2025 and December 31, 2024, respectively.

Mortgages Payable

At March 31, 2025, the weighted average interest rate on the Company's mortgage payables was 4.09% and the weighted average remaining term to maturity is 5.8 years. For the three months ended March 31, 2025 and 2024, interest expense, which includes amortization of deferred financing costs, was $4,991,000 and $4,699,000, respectively.

.Credit Facility

The Company's credit facility, with an affiliate of Valley National Bank ("VNB"), allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $40,000,000. The facility can be used to facilitate the acquisition of multi-family properties, repay mortgage debt secured by multi-family properties and for operating expenses (i.e., working capital (including dividend payments)); provided that no more than $25,000,000 may be used for operating expenses. The facility is secured by the cash available at VNB and the Company's pledge of the interests in the entities that own the properties, and matures in September 2027.

Note 10 – Debt Obligations (continued)

The interest rate on the credit facility, which adjusts monthly and is subject to a floor of 6.0%, equals one-month term SOFR plus 250 basis points. The interest rate in effect as of March 31, 2025 is 6.91%. There is an unused facility fee of 0.25% per annum on the total amount committed by VNB and unused by the Company. At March 31, 2025, the Company is in compliance in all material respects with its obligations under the facility.

At March 31, 2025 and December 31, 2024, there was no outstanding balance on the facility and at each such date, the full amount was available to be borrowed. Interest expense for the three months ended March 31, 2025 and 2024, which includes amortization of deferred financing costs and unused fees, was $59,000 and $92,000, respectively. The remaining deferred financing costs of $340,000 and $374,000 are recorded as Other Assets on the Consolidated balance sheets at March 31, 2025 and December 31, 2024, respectively.

Junior Subordinated Notes

At March 31, 2025 and December 31, 2024, the outstanding principal balance of the Company's junior subordinated notes was $37,400,000, before deferred financing costs of $232,000 and $237,000, respectively. The interest rate on outstanding balance resets quarterly and is equal to three month term SOFR + 2.26%. The interest rate in effect at March 31, 2025 and 2024 was 6.55% and 7.69%, respectively.

The junior subordinated notes require interest only payments through the maturity date of April 30, 2036, at which time repayment of the outstanding principal and unpaid interest become due. Interest expense for the three months ended March 31, 2025 and 2024, which includes amortization of deferred financing costs, was $626,000 and $732,000, respectively.