Mortgage Notes Payable, Net

12 Months Ended

Dec. 31, 2025

In connection with the REIT Merger, the Company assumed all of RTL’s mortgage notes payable as of the Acquisition Date. Mortgage notes payable, net as of December 31, 2025 and 2024 consisted of the following:


		Encumbered Properties	Outstanding Loan Amount (1), (2)				Effective Interest Rate	Interest Rate
Country	Portfolio		December 31, 2025		December 31, 2024				Maturity	Anticipated Repayment (3)
			(In thousands)		(In thousands)
Finland:	Finland Properties (4)	5	$	86,878	$	76,866	5.1%	Fixed/Variable	Jan. 2029	Jan. 2029
	Total EUR denominated	5	86,878		76,866

United States:	Penske Logistics	1	70,000		70,000		4.7%	Fixed	Nov. 2028	Nov. 2028
	Multi-Tenant Mortgage Loan I	8	129,949		162,580		4.4%	Fixed	Nov. 2027	Nov. 2027
	Multi-Tenant Mortgage Loan II	8	32,750		32,750		4.4%	Fixed	Feb. 2028	Feb. 2028
	Multi-Tenant Mortgage Loan III	7	98,500		98,500		4.9%	Fixed	Dec. 2028	Dec. 2028
	Multi-Tenant Mortgage Loan IV	14	77,798		90,111		4.6%	Fixed	May 2029	May 2029
	Multi-Tenant Mortgage Loan V	10	128,780		139,771		3.7%	Fixed	Oct. 2029	Oct. 2029
	2019 Class A-1 Net-Lease Mortgage Notes	63	94,202		105,859		3.8%	Fixed	May 2049	May 2026
	2019 Class A-2 Net-Lease Mortgage Notes	63	118,187		118,798		4.5%	Fixed	May 2049	May 2029
	2021 Class A-1 Net-Lease Mortgage Notes	41	45,267		49,362		2.2%	Fixed	May 2051	May 2028
	2021 Class A-2 Net-Lease Mortgage Notes	41	78,189		85,262		2.8%	Fixed	May 2051	May 2031
	2021 Class A-3 Net-Lease Mortgage Notes	30	34,997		34,997		3.1%	Fixed	May 2051	May 2028
	2021 Class A-4 Net-Lease Mortgage Notes	30	54,995		54,995		3.7%	Fixed	May 2051	May 2031
	Column Financial Mortgage Notes (5)	—	—		463,370		—%	Fixed	N/A	N/A
	Mortgage Loan II (6)	—	—		210,000		—%	Fixed	N/A	N/A
	Mortgage Loan III	22	33,400		33,400		4.1%	Fixed	Jan. 2028	Jan. 2028
	CMBS Loan (7)	—	—		260,000		—%	Fixed	N/A	N/A
	CMBS Loan II	20	237,000		237,000		5.8%	Fixed	Apr. 2029	Apr. 2029
	Total USD denominated	358	1,234,014		2,246,755
	Gross mortgage notes payable	363	1,320,892		2,323,621		4.4%
	Mortgages classified in discontinued operations:
	Mortgage Loan II (6)	—	—		(210,000)
	CMBS Loan (7)	—	—		(260,000)
	Gross mortgage notes payable (continuing operations)	363	1,320,892		1,853,621
	Mortgage discounts		(47,807)		(73,542)
	Deferred financing costs, net of accumulated amortization (8)		(8,481)		(11,471)
	Mortgage notes payable, net	363	$	1,264,604	$	1,768,608	4.4%

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(1)Amounts borrowed in local currency are translated at the spot rate in effect at the applicable reporting date.

(2)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.

(3)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.

(4)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 December 31, 2025.

(5)This mortgage was repaid in May 2025, primarily using borrowings under the USD portion of the Company’s Prior Revolving Credit Facility (as defined in Note 7 — Revolving Credit Facility).

(6)This mortgage was assumed by RCG as part of the completion of the Multi-Tenant Retail Disposition in the second quarter of 2025. As of December 31, 2024, this mortgage was classified within discontinued operations (see Note 3 — Multi-Tenant Retail Disposition for additional information).

(7)Approximately $256.3 million of the original principal amount of this mortgage was assumed by RCG as part of the completion of the Multi-Tenant Retail Disposition in the second quarter of 2025, and the remaining principal of approximately $3.7 million was repaid by the Company. As of December 31, 2024, this mortgage was classified within discontinued operations (see Note 3 — Multi-Tenant Retail Disposition for additional information).

(8)Deferred financing costs consist of 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 mortgage notes payable over the next five calendar years and thereafter as of December 31, 2025:


(In thousands)	Future Principal Payments (1)
2026	$	94,813
2027	130,560
2028	315,525
2029	646,810
2030	—
Thereafter	133,184
Total	$	1,320,892

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(1)Assumes exchange rates of €1.00 to $1.17 for EUR as of December 31, 2025 for illustrative purposes, as applicable.

The total gross carrying value of the Company’s unencumbered assets as of December 31, 2025 was $3.61 billion, and approximately $3.57 billion of this amount was included in the unencumbered asset pool comprising the borrowing base under the Revolving Credit Facility (as defined in Note 7 — Revolving Credit Facility) and therefore is not available to serve as collateral for future borrowings under the revolving credit facility.

Mortgage Covenants

As of December 31, 2025, the Company was in compliance with all property-level debt covenants with the exception of two property-level debt instruments. For those two 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 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.