Annual report [Section 13 and 15(d), not S-K Item 405]

Mortgage Notes Payable, Credit Facility, and Senior Unsecured Notes (Tables)

v3.25.4
Mortgage Notes Payable, Credit Facility, and Senior Unsecured Notes (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Mortgage Notes Payable, Credit Facility, and Senior Unsecured Notes
Our mortgage notes payable, Credit Facility, and Senior Unsecured Notes as of December 31, 2025 and December 31, 2024 are summarized below (dollars in thousands):

Encumbered properties at Carrying Value at Stated Interest Rates at Scheduled Maturity Dates at
December 31, 2025 December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2025
Mortgage and other secured loans:
Fixed rate mortgage loans 44  $ 251,578  $ 264,243  (1) (2)
Variable rate mortgage loans —  —  7,260  N/A N/A
Premiums and discounts, net —  19  (8) N/A N/A
Deferred financing costs, mortgage loans, net —  (1,404) (1,916) N/A N/A
Total mortgage notes payable, net 44  $ 250,193  $ 269,579  (4)
Variable rate revolving credit facility —  (6) $ 37,370  $ 1,900 
SOFR + 1.60%
 (3) 10/10/2029
Total revolver —  $ 37,370  $ 1,900 
Variable rate term loan facility A —  (6) 125,000  160,000 
SOFR + 1.55%
 (3) 10/10/2029
Variable rate term loan facility B —  (6) 143,333  40,000 
SOFR + 1.55%
 (3) 2/15/2030
Variable rate term loan facility C —  (6) 131,667  150,000 
SOFR + 1.55%
 (3) 2/18/2028
Deferred financing costs, term loan facility —  (2,298) (2,052) N/A N/A
Total term loan, net N/A $ 397,702  $ 347,948 
Senior unsecured notes 2029 —  $ 75,000  $ 75,000  6.47% 12/18/2029
Senior unsecured notes 2030 —  $ 85,000  $ —  5.99% 12/15/2030
Deferred financing costs, senior unsecured notes —  (1,799) (1,042) N/A N/A
Total senior unsecured notes, net N/A $ 158,201  $ 73,958 
Total mortgage notes payable, credit facility, and senior unsecured notes 44  $ 843,466  $ 693,385  (5)
(1)Interest rates on our fixed rate mortgage notes payable vary from 2.80% to 6.63%.
(2)We have 38 mortgage notes payable with maturity dates ranging from April 1, 2026 through August 1, 2037.
(3)As of December 31, 2025, SOFR was approximately 3.87%.
(4)The weighted average interest rate on the mortgage notes outstanding at December 31, 2025, was approximately 4.21%.
(5)The weighted average interest rate on all debt outstanding at December 31, 2025, was approximately 5.21%.
(6)The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 106 unencumbered properties as of December 31, 2025.
N/A - Not Applicable
Schedule of Long-Term Mortgages
During the year ended December 31, 2025, we repaid two mortgages collateralized by two properties, which are summarized below (dollars in thousands):

Aggregate Variable Rate Debt Repaid Weighted Average Interest Rate on Variable Rate Debt Repaid
$ 7,181  SOFR + 2.25%
Aggregate Fixed Rate Debt Repaid Weighted Average Interest Rate on Fixed Rate Debt Repaid
$ 3,089  4.59  %
Schedule of Principal Payments of Mortgage Notes Payable
Scheduled principal payments of mortgage notes payable for each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):

Year Scheduled Principal Payments
2026 $ 35,369 
2027 95,392 
2028 37,433 
2029 34,868 
2030 33,528 
Thereafter 14,988 
$ 251,578  (1)
(1)This figure does not include $19,149 premiums and (discounts), net, and $1.4 million of deferred financing costs, which are reflected in mortgage notes payable on the consolidated balance sheets.
Schedule of Interest Rate Caps and Interest Rate Swaps The following table summarizes the interest rate caps at December 31, 2025 and 2024 (dollars in thousands):
December 31, 2025 December 31, 2024
Aggregate Cost Aggregate Notional Amount Aggregate Fair Value Aggregate Notional Amount Aggregate Fair Value
$ —  (1) $ —  $ —  $ 60,000  $ — 
(1)We have entered into an interest rate cap agreement on variable rate debt with a SOFR cap of 5.50%. This cap matured in March 2025.
The following table summarizes our interest rate swaps at December 31, 2025 and 2024 (dollars in thousands):
December 31, 2025 December 31, 2024
Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability
$ 627,097  $ 3,130  $ (1,532) $ 360,484  $ 8,965  $ (19)
Schedule of Impact of Derivative Instruments, Reclassifications of Derivative Instruments and Information Regarding Derivative Instruments
The following tables present the impact of our derivative instruments in the consolidated financial statements (dollars in thousands):

Amount of (loss) gain, net, recognized in Comprehensive Income
2025 2024 2023
Derivatives in cash flow hedging relationships
Interest rate caps $ —  $ (691) $ (3,038)
Interest rate swaps (7,349) 3,393  (1,815)
Total $ (7,349) $ 2,702  $ (4,853)

The following table presents the reclassifications of our derivative instruments out of accumulated other comprehensive income into interest expense in the consolidated financial statements (dollars in thousands):

Amount reclassified out of Accumulated Other Comprehensive Income
2025 2024 2023
Derivatives in cash flow hedging relationships
Interest rate caps $ (15) $ (188) $ (971)
Total $ (15) $ (188) $ (971)

The following table sets forth certain information regarding our derivative instruments (dollars in thousands):

Asset (Liability) Derivatives Fair Value at
Derivatives Designated as Hedging Instruments Balance Sheet Location December 31, 2025 December 31, 2024
Interest rate caps Other assets $ —  $ — 
Interest rate swaps Other assets 3,130  8,965 
Interest rate swaps Other liabilities (1,532) (19)
Total derivative liabilities, net $ 1,598  $ 8,946