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Mortgage Notes Payable, Net
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Mortgage Notes Payable, Net Mortgage Notes Payable, Net
Mortgage notes payable, net as of June 30, 2024 and December 31, 2023 consisted of the following:
Encumbered Properties
Outstanding Loan Amount (1)
Effective Interest Rate
Interest Rate
CountryPortfolioJune 30,
2024		December 31,
2023
Maturity
Anticipated Repayment (2)
(In thousands)(In thousands)
Finland:Finland Properties5$79,302 $— 5.1%(3)Fixed/VariableJan. 2029Jan. 2029
Finland Properties—— 81,695 2.4%(3)Fixed/VariableFeb. 2024Feb. 2024
Luxembourg/ The Netherlands:Benelux Properties —— 129,752 1.4%(4)FixedJun. 2024Jun. 2024
Total EUR denominated579,302 211,447 
United Kingdom:McLaren—— 128,587 6.1%(5)FixedApr. 2024Apr. 2024
Total GBP denominated—— 128,587 
United States:Penske Logistics 170,000 70,000 4.7%(6)FixedNov. 2028Nov. 2028
Multi-Tenant Mortgage Loan I 10162,580 162,580 4.4%(6)FixedNov. 2027Nov. 2027
Multi-Tenant Mortgage Loan II832,750 32,750 4.4%(6)FixedFeb. 2028Feb. 2028
Multi-Tenant Mortgage Loan III798,500 98,500 4.9%(6)FixedDec. 2028Dec. 2028
Multi-Tenant Mortgage Loan IV1589,990 97,500 4.6%(6)FixedMay 2029May 2029
Multi-Tenant Mortgage Loan V11139,771 139,771 3.7%(6)FixedOct. 2029Oct. 2029
2019 Class A-1 Net-Lease Mortgage Notes96107,286 110,815 3.8%FixedMay 2049May 2026
2019 Class A-2 Net-Lease Mortgage Notes100119,104 119,409 4.5%FixedMay 2049May 2029
2021 Class A-1 Net-Lease Mortgage Notes4349,784 50,971 2.2%FixedMay 2051May 2028
2021 Class A-2 Net-Lease Mortgage Notes4485,991 88,041 2.8%FixedMay 2051May 2031
2021 Class A-3 Net-Lease Mortgage Notes3234,997 34,997 3.1%FixedMay 2051May 2028
2021 Class A-4 Net-Lease Mortgage Notes3354,995 54,995 3.7%FixedMay 2051May 2031
Column Financial Mortgage Notes334526,438 697,595 3.8%(7)FixedAug. 2025Aug. 2025
Mortgage Loan II12210,000 210,000 4.2%FixedJan. 2028Jan. 2028
Mortgage Loan III2233,400 33,400 4.1%FixedJan. 2028Jan. 2028
RTL Multi-Tenant Mortgage II—— 25,000 —%FixedFeb. 2024Feb. 2024
McGowin Park—— 39,025 —%FixedMay 2024May 2024
CMBS Loan 29260,000 260,000 6.5%FixedSept. 2033Sept. 2033
CMBS Loan II20237,000 — 5.8%FixedApr. 2029Apr. 2029
Total USD denominated8172,312,586 2,325,349 
Gross mortgage notes payable8222,391,888 2,665,383 4.5%
Mortgage discounts(110,046)(140,403)
     Deferred financing costs, net of accumulated amortization (8)
(13,041)(7,112)
Mortgage notes payable, net 822$2,268,801 $2,517,868 4.5%

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(1)Amounts borrowed in local currency and translated at the spot rate in effect at the applicable reporting date.
(2)The Company determines an anticipated repayment date when the terms of a debt obligation provide for earlier repayment than the legal maturity and when the Company expects to repay such debt obligations earlier due to factors such as elevated interest rates or additional principal payment requirements.
(3)80% fixed as a result of a “pay-fixed” interest rate swap agreement and 20% variable. Variable portion is approximately 1.4% plus 3-month Euribor and reflects the Euribor rate in effect as of June 30, 2024. This loan was extended from its original maturity date of February 2024 to February 2029.
(4)This mortgage was repaid in June 2024 using borrowings under the EUR portion of the Company’s Revolving Credit Facility.
(5)This mortgage was repaid in April 2024 using borrowings under the GBP portion of the Company’s Revolving Credit Facility.
(6)The borrowers’ (wholly-owned subsidiaries of the Company) financial statements are included within the Company’s consolidated financial statements, however, the borrowers’ assets and credit are only available to pay the debts of the borrowers and their liabilities constitute obligations of the borrowers.
(7)Decrease primarily due to the repayment of mortgages for certain encumbered properties that were sold during 2024.
(8)Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or paid down before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close.

The following table presents future scheduled aggregate principal payments on the Company’s gross mortgage notes payable over the next four calendar years and thereafter as of June 30, 2024:
(In thousands)
Future Principal Payments (1)
2024 (remainder) $589 
2025527,617 
2026107,046 
2027163,191 
2028530,042 
2029662,417 
Thereafter400,986 
Total$2,391,888 
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(1)Assumes exchange rates of £1.00 to $1.26 for British Pounds Sterling (“GBP”) and €1.00 to $1.07 for Euros (“EUR”) as of June 30, 2024 for illustrative purposes, as applicable.
The total gross carrying value of the Company’s unencumbered assets as of June 30, 2024 was $4.94 billion, and approximately $4.93 billion of this amount was included in the unencumbered asset pool comprising the borrowing base under the Revolving Credit Facility (as defined in Note 6 — Revolving Credit Facility) and therefore is not currently available to serve as collateral for future borrowings.
CMBS Loan II
On April 5, 2024, the Company entered into a CMBS Loan (“CMBS Loan II”) with (i) Bank of Montreal, (ii) Société Générale Financial Corporation, (iii) Barclays Capital Real Estate Inc. and (iv) KeyBank National Association (each individually, a “Lender,” and collectively, the “Lenders”), in the aggregate amount of $237.0 million. The net proceeds were used to repay draws on the USD portion of the Revolving Credit Facility. The CMBS Loan II is secured by, among other things, first priority mortgages on 20 industrial properties the Company owns across the United States. The CMBS Loan II has a 5-year term, is interest-only (payable monthly) at a fixed rate of 5.74% per year and matures on April 6, 2029. The CMBS Loan II contains certain covenants, including, certain obligations to reserve funds and requires the OP to maintain a net worth of $150.0 million and liquid assets having a market value of at least $10.0 million.
Mortgage Covenants
As of June 30, 2024, the Company was in compliance with all property-level debt covenants with the exception of four property-level debt instruments. For those four property-level debt instruments, the Company either (a) implemented a cure to the underlying noncompliance trigger by providing a letter of credit, or (b) permitted excess net cash flow after debt service from the impacted properties to become restricted, in each case in accordance with the terms of the applicable debt instrument. Each letter of credit, for so long as it is outstanding, represents a dollar-for-dollar reduction to availability for future borrowings under the Company’s Revolving Credit Facility. While the restricted cash cannot not be used for general corporate purposes, it is available to fund operations of the underlying assets. These matters did not have a material impact on the Company’s liquidity or its ability to operate the impacted assets.