Debt

6 Months Ended

Jun. 30, 2025

Debt Disclosure [Abstract]

Debt

7. Debt

A summary of the Company’s consolidated indebtedness is as follows (dollars in thousands):

			Carrying Value as of
	Interest Rate as of	Maturity Date as of	June 30,	December 31,
	June 30, 2025	June 30, 2025	2025	2024
Mortgages Payable
Core	3.99% - 6.05%	Nov 2026 - Apr 2035	$231,301	$180,212
Fund II (a)	SOFR+2.61%	Aug 2025	137,485	137,485
Fund III	SOFR+3.75%	Oct 2025	33,000	33,000
Fund IV (b)	SOFR+2.15% - SOFR+3.33%	Oct 2025 - Jun 2028	109,456	109,471
Fund V	SOFR+2.00% - SOFR+3.10%	Sep 2025 - Jun 2028	499,730	498,779
Net unamortized debt issuance costs			(4,762)	(5,459)
Unamortized premium			1,378	212
Total Mortgages Payable			$1,007,588	$953,700
Unsecured Notes Payable
Core Term Loans (c)	SOFR+1.20% - SOFR+1.75%	Apr 2028 - May 2030	$650,000	$475,000
Core Senior Notes	5.86% - 5.94%	Aug 2027 - Aug 2029	100,000	100,000
Net unamortized debt issuance costs			(6,951)	(5,434)
Total Unsecured Notes Payable			$743,049	$569,566
Unsecured Line of Credit
Revolving Credit (c)	SOFR+1.25%	Apr 2028	$53,500	$14,000
Total Debt (d)(e)			$1,814,472	$1,547,947
Net unamortized debt issuance costs			(11,713)	(10,893)
Unamortized premium			1,378	212
Total Indebtedness			$1,804,137	$1,537,266

(a)The Company has a total borrowing capacity of $198.0 million on the Fund II property mortgage loan as of both June 30, 2025 and December 31, 2024.

(b)Includes the outstanding balance on the Fund IV secured bridge facility of $36.2 million as of both June 30, 2025 and December 31, 2024.

(c)The Company has entered into various swap agreements to effectively fix its interest costs on a portion of its Revolver and term loans as of June 30, 2025 and December 31, 2024 (Note 8).

(d)As of June 30, 2025 and December 31, 2024, the Company had $1,072.8 million and $852.0 million, respectively, of variable-rate debt that has been fixed with interest rate swap agreements as of the periods presented. The effective fixed rates ranged from 1.98% to 4.50%.

(e)Includes $111.2 million at each June 30, 2025 and December 31, 2024, of variable-rate debt that is subject to interest cap agreements as of the periods presented. The effective fixed rates ranged from 5.00% to 6.00%.

Mortgages Payable

A portion of the Company’s variable-rate property mortgage debt has been effectively fixed through certain cash flow hedge transactions (Note 8).

At June 30, 2025 and December 31, 2024, the Company’s property mortgage loans were collateralized by 50 and 31 properties, respectively, as well as the related tenant leases. Certain loans are cross-collateralized and contain cross-default provisions. The loan agreements contain customary representations, covenants and events of default. Certain loan agreements require the Company to comply with affirmative and negative covenants, including the maintenance of debt service coverage and leverage ratios. The Company was in compliance with its debt covenants as of June 30, 2025.

Core Portfolio

On January 23, 2025, the Company acquired an additional 48% economic ownership interest in the Renaissance Portfolio (Note 2). The properties were subject to existing mortgage indebtedness. At acquisition the property mortgage loans had an aggregate outstanding principal balance of $156.1 million, bore interest at the Secured Overnight Financing Rate (“SOFR”) + 2.65% and was scheduled to mature on November 6, 2026. The property mortgage loans were recorded at a fair value of approximately $156.1 million. On January 24, 2025, the venture modified the property mortgage loan to reduce the interest rate to SOFR + 1.55%. This reduction was achieved through a $50.0 million principal paydown, which was funded by the Company as a note receivable from the venture. The note bears interest at 9.11%, matures in November 2026, and has been eliminated in consolidation.

During the six months ended June 30, 2025, the Company repaid a $50.0 million property mortgage loan and made scheduled principal payments totaling $0.9 million.

Investment Management

During the six months ended June 30, 2025, the Company, through Investment Management extended the Fund IV secured bridge facility to mature in March 2026 and made scheduled principal payments totaling $2.4 million. The Fund IV secured bridge facility had an outstanding balance and total available credit on its secured bridge facility of $36.2 million and $0.0 million, respectively, at both June 30, 2025 and December 31, 2024. The Operating Partnership has guaranteed up to $22.5 million of the Fund IV secured bridge facility (Note 9).

Unsecured Notes Payable and Unsecured Line of Credit

Credit Facility

In the second quarter of 2025, the Operating Partnership and the Company entered into the Third Amendment to the Third Amended and Restated Credit Agreement (the “Amendment”) to amend the existing senior unsecured credit facility (the “Credit Facility”), which includes a $525.0 million unsecured revolving credit facility (the “Revolver”) maturing on April 15, 2028, with two six-month extension options, and a $400.0 million unsecured term loan (the “Term Loan”) also maturing on April 15, 2028, with two six-month extension options. The Amendment established a new five-year $250.0 million incremental delayed draw term loan (the “$250.0 Million Term Loan”), of which $175.0 million was drawn at closing. The Amendment also increased the accordion feature limit to $1.5 billion and reduced the borrowing rate on the entire $925.0 million Credit Facility by 10 basis points. The $250.0 Million Term Loan bears interest at a floating rate based on SOFR with margins based on leverage or credit rating and matures on May 29, 2030. At June 30, 2025, the $250.0 Million Term Loan bears interest at SOFR + 1.20%.

At June 30, 2025, the Term Loan had an outstanding balance of $400.0 million bears interest at SOFR + 1.40%. Additionally, $75.0 million remains available under the $250.0 Million Term Loan.

Other Unsecured Term Loans

Excluding the Term Loan and the $250.0 Million Term Loan described above, which are part of the Credit Facility, the Operating Partnership also has a $75.0 million term loan (the “$75.0 Million Term Loan”), with TD Bank, N.A., as administrative agent. The $75.0 Million Term Loan is not part of the Credit Facility, bears interest at a floating rate based on SOFR with margins based on leverage or credit rating, matures on July 29, 2029, and is guaranteed by the Trust and certain subsidiaries of the Trust (Note 9). At June 30, 2025, the $75.0 Million Term Loan bears interest at SOFR + 1.75%.

Senior Notes

On August 21, 2024, the Operating Partnership issued $100.0 million aggregate principal amount of senior unsecured notes in a private placement, of which (i) $20.0 million are designated as 5.86% Senior Notes, Series A, due August 21, 2027 (the “Series A Notes”) and (ii) $80.0 million are designated as 5.94% Senior Notes, Series B, due August 21, 2029 (together with the Series A Notes, the “Senior Notes”) pursuant to a note purchase agreement (the “Senior Note Purchase Agreement”), dated July 30, 2024, between the Company, Operating Partnership and the purchasers named therein.

The Senior Notes were issued at par in accordance with the Senior Note Purchase Agreement and pay interest semiannually on February 21st and August 21st until their respective maturities. The Company may prepay the Senior Notes at any time in full or in part subject to certain limitations set forth in the Senior Note Purchase Agreement. The Senior Notes are guaranteed by the Company and certain subsidiaries of the Company.

Revolver

At June 30, 2025, the Revolver, which is part of the Credit Facility discussed above, bears interest at SOFR + 1.25% and matures on April 15, 2028, subject to two six-month extension options. The outstanding balance and total available credit of the Revolver were $53.5 million and $471.5 million, respectively, as of June 30, 2025, reflecting no letters of credit outstanding. The outstanding balance and total available credit of the Revolver were $14.0 million and $511.0 million, respectively, as of December 31, 2024, reflecting no letters of credit outstanding.

Scheduled Debt Principal Payments

The following table summarizes the scheduled principal repayments, without regard to available extension options (described further below), of the Company’s consolidated indebtedness, as of June 30, 2025 (in thousands):

Year Ending December 31,	Principal Repayments
2025 (Remainder)	$	288,466
2026		346,940
2027		217,373
2028		610,485
2029		173,292
Thereafter		177,916
		1,814,472
Unamortized premium		1,378
Net unamortized debt issuance costs		(11,713	)
Total indebtedness	$	1,804,137

The table above does not reflect available extension options (subject to customary conditions) on consolidated debt with balances as of June 30, 2025. The Company has the option to extend the following debt maturities by up to twelve months, and for some an additional twelve months thereafter, including $238.0 million contractually due in the remainder of 2025, $205.3 million in 2026, $194.0 million due in 2027 and $511.0 million in 2028. Execution of these extension options is subject to customary conditions, and there can be no assurance that the Company will meet such conditions or elect to exercise the options.