Debt (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Summary of Mortgage Notes, Credit Facilities and Related Party Note Payable

The following table details the mortgage notes, credit facilities, unsecured senior notes, and related party note payable of the Company:

					Principal Balance Outstanding
Indebtedness	Weighted Average Interest Rate(1)(7)	Weighted Average Maturity Date	Maximum Facility Size		September 30, 2024		December 31, 2023
Mortgage notes & credit facilities:
Unsecured term loan credit facility(2)	S + 1.50%	8/11/2027	$	1,165,500	$	1,165,500	$	1,095,500
Unsecured revolving credit facility(3)	S + 1.68%	8/11/2026	$	724,500	252,988		231,255
Fixed rate mortgages	6.25%	4/6/2029	N/A		43,000		—
Variable rate mortgages (4)	S + 1.80%	1/6/2026	N/A		48,477		546,005
Deferred financing costs, net					(12,362)		(13,172)
Total Mortgage notes & credit facility, net:					$	1,497,603	$	1,859,588
Unsecured senior notes
Unsecured senior notes (5)	6.35%	2/2/2030	N/A		$	130,000	$	—
Deferred financing costs, net					(1,869)		—
Unsecured senior notes, net					$	128,131	$	—
Affiliate line of credit
Affiliate line of credit (6)	S + 1.55%	6/30/2024	N/A		—		200,000
Affiliate line of credit, net:					$	—	$	200,000

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(1)The term “S” refers to the relevant floating benchmark rates, which include daily secured overnight financing rate (“SOFR”), 30-day SOFR, one-month euro interbank offered rate (“EURIBOR”), daily Canadian overnight repo rate average (“CORRA”), and one-month SONIA as applicable to each loan. As of September 30, 2024, we have outstanding interest rate swaps that mitigate our exposure to potential future interest rate increases under our floating-rate debt. See further discussion of outstanding interest rate swaps below.

(2)The unsecured term loan credit facility bears interest at a base rate plus a margin ranging from 0.25% to 1.85%. The base rate is the greater of (a) Keybank N.A.’s announced prime rate, (b) 0.5% above the federal funds effective rate, (c) SOFR plus 0.10%, and (d) 1.0%. The weighted average interest rate for the unsecured term loan credit facility for the nine months ended September 30, 2024 was 6.89% (unhedged) and 5.26% (hedged). As of September 30, 2024, we have outstanding interest rate swaps with aggregate notional values of $700,000, $250,000, $145,500 and $70,000 that are structured such that the SOFR rates result in fixed rates of 3.65%, 3.42%, 4.23% and 3.67%, respectively.

(3)The unsecured revolving credit facility consists of USD (“USD Revolver”) and Alternative (“Alternative Revolver”) denominated currencies, and bears interest at a base rate plus a margin ranging from 0.30% to 1.90%. The base rate is the greater of (a) Keybank N.A.’s announced prime rate, (b) 0.5% above the federal funds effective rate, (c) adjusted floating rate, and (d) 1.0%. The adjusted floating rate for the USD Revolver is SOFR plus 0.10%, while the Alternative Revolver is EURIBOR for Euro borrowings, and CORRA plus 0.30% for Canadian Dollar borrowings. The weighted average interest rate for the unsecured revolving credit facility for the nine months ended September 30, 2024 was 6.58% (unhedged) and 6.15% (hedged). As of September 30, 2024, we have outstanding interest rate swaps with aggregate notional values of $30,000 and $100,000 that are structured such that the SOFR rate results in a fixed rate of 3.67% and 3.40%, respectively.

(4)We have an interest rate swap with an aggregate notional value of $48,892 as of September 30, 2024, that is structured such that the variable rate results in a fixed rate of 3.74%. During the nine months ended September 30, 2024, the Company repaid $494,902 of variable rate mortgages.

(5)On August 28, 2024, NLT OP entered into a Note Purchase Agreement (the “Note Purchase Agreement”) governing the issuance of $29,000,000 of 6.24% Senior Notes, Series A, due August 28, 2028, $38,500,000 of 6.32% Senior Notes, Series B, due August 28, 2029, $39,500,000 of 6.40% Senior Notes, Series C, due August 28, 2030 and $23,000,000 of 6.43% Senior Notes, Series D, due August 28, 2031 (collectively, the “notes”), to qualified institutional investors in a private placement. Interest on the notes is due semi-annually on the 28th day of February and August of each year, beginning on February 28, 2025. Proceeds from the issuance of the notes were used to pay down existing indebtedness of the Company and for other general purposes.

(6)The affiliate note payable bore interest at a base rate plus a margin ranging from 0.30% to 1.90%. The base rate was the greater of (a) Keybank N.A.’s announced prime rate, (b) 0.5% above the federal funds effective rate, (c) SOFR plus 0.10%, and (d) 1.0%. The weighted average interest rate for the affiliate note payable for the period from January 1, 2024 through the maturity date of June 30, 2024 was 6.97%.

(7)The Company’s mortgage and notes payable contain yield or spread maintenance provisions.

Summary of Future Principal Payments

The following table details the future principal payments due under the Company’s outstanding third-party borrowings as of September 30, 2024:

Year	Amount
2024 (remaining)	$	—
2025	—
2026	301,465
2027	1,165,500
2028	29,000
2029	81,500
Thereafter	62,500
Total	$	1,639,965