v3.25.2
Debt
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Debt Debt
The Company's debt, which consists of unsecured notes, the variable rate term loan (the "Term Loan"), mortgage notes payable, the Credit Facility and the Commercial Paper Program, each as defined below, as of June 30, 2025 and December 31, 2024 is summarized below. The following amounts and discussion do not include the mortgage notes related to the communities classified as held for sale, if any, as of June 30, 2025 and December 31, 2024, as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, "Real Estate Disposition Activities"). The weighted average interest rates in the following table for secured and unsecured notes include costs of financing including debt issuance costs as well as credit enhancement and trustees' fees, the impact of interest rate hedges and mark-to-market adjustments.
 June 30, 2025December 31, 2024
Fixed rate unsecured notes (1)$7,325,000 3.5 %$7,400,000 3.4 %
Fixed rate mortgage notes payable - conventional and tax-exempt332,949 3.9 %333,479 3.9 %
Variable rate mortgage notes payable - conventional and tax-exempt392,050 3.5 %400,950 5.2 %
Total mortgage notes payable, unsecured notes and Term Loan8,049,999 3.5 %8,134,429 3.5 %
Credit Facility— — %— — %
Commercial paper665,000 4.6 %— — %
Total principal outstanding8,714,999 3.6 %8,134,429 3.5 %
Less deferred financing costs and debt discount (2)(54,904)(57,180)
Total$8,660,095 $8,077,249 
_____________________________________
(1)Includes the $450,000,000 Term Loan that has been swapped to an effective fixed rate of 4.46% using interest rate hedges.
(2)Excludes deferred financing costs and debt discount associated with the Credit Facility which are included in prepaid expenses and other assets on the accompanying Condensed Consolidated Balance Sheets.

In April 2025, the Company entered into the Seventh Amended and Restated Revolving Loan Agreement with a syndicate of banks (the "Credit Facility"), amending the prior credit facility, dated September 27, 2022. The amended and restated Credit Facility (i) increased the borrowing capacity under the Credit Facility from $2,250,000,000 to $2,500,000,000, and (ii) extended the term from September 2026 to April 2030. The interest rate that would be applicable to borrowings under the Credit Facility was 5.16% at June 30, 2025 and was composed of (i) the Secured Overnight Financing Rate ("SOFR"), applicable to the period of borrowing for a particular draw of funds from the Credit Facility (e.g., one month to maturity, three months to maturity, etc.), plus (ii) the current borrowing spread to SOFR of 0.705% per annum, assuming a daily SOFR borrowing rate. The borrowing spread to SOFR can vary from SOFR plus 0.65% to SOFR plus 1.40% based upon the rating of the Company's unsecured senior notes. There is also an annual facility commitment fee of 0.12% of the borrowing capacity under the Credit Facility, which can vary from 0.10% to 0.30% based upon the rating of the Company's unsecured senior notes. The Credit Facility contains a sustainability-linked pricing component which provides for interest rate margin and commitment fee reductions or increases related to certain environmental sustainability targets, specifically greenhouse gas emission reductions, with the adjustment determined annually. An annual determination under the sustainability-linked pricing component occurred in July 2024, maintaining reductions of approximately 0.02% to the interest rate margin and 0.005% to the commitment fee due to the Company's achievement of sustainability targets. On August 1, 2025, the Company amended the Credit Facility to extend the applicability of its sustainability-linked pricing component. See Note 12, "Subsequent Events," for further discussion of debt activity subsequent to June 30, 2025.

The Company has an unsecured commercial paper note program (the “Commercial Paper Program”). During April 2025, the Company increased the capacity of the Commercial Paper Program from $500,000,000 to $1,000,000,000. Under the terms of the Commercial Paper Program, the Company may issue, unsecured commercial paper notes with maturities of less than one year. The program is backstopped by the Company's commitment to maintain available borrowing capacity under its unsecured credit facility in an amount equal to actual borrowings under the program.
The availability on the Company's Credit Facility as of June 30, 2025 and December 31, 2024 was as follows (dollars in thousands):
 June 30, 2025December 31, 2024
Credit Facility commitment$2,500,000 $2,250,000 
Credit Facility outstanding— — 
Commercial paper outstanding(665,000)— 
Letters of credit outstanding (1)(864)(1,714)
Total Credit Facility available$1,834,136 $2,248,286 
_____________________________________
(1)In addition, the Company had $55,237 and $45,910 outstanding in additional letters of credit unrelated to the Credit Facility as of June 30, 2025 and December 31, 2024, respectively.

The following debt activity occurred during the three months ended June 30, 2025:

•In April 2025, the Company entered into a $450,000,000 Term Loan which matures in April 2029. The Term Loan bears interest at varying levels based on (i) the SOFR applicable to the period of borrowing for a particular draw of funds from the facility, which rate is recalculated at the end of each such period if the Term Loan remains outstanding and (ii) a stated spread over SOFR that can vary from SOFR plus 0.70% to SOFR plus 1.60% per annum based upon the rating of the Company’s unsecured and unsubordinated long-term indebtedness. The current borrowing spread to SOFR under the Term Loan is 0.78% per annum. There is also a sustainability spread adjustment that can range from (0.02)% to 0.02% in the aggregate. During the three months ended June 30, 2025, the Company drew down the $450,000,000 available under the Term Loan. During the six months ended June 30, 2025, the Company entered into $450,000,000 notional amount of interest rate swaps to hedge the impact of variability in interest rates on the Term Loan. Of the $450,000,000 notional amount of interest rate swaps, $150,000,000 notional were entered into during the three months ended June 30, 2025. Including the impact of these swaps and transaction costs, assuming the Term Loan will be fully drawn until maturity and the Company's current borrowing spread to SOFR, the effective interest rate on borrowings under the Term Loan was 4.46% as of June 30, 2025.

•In June 2025, the Company repaid $525,000,000 of its 3.45% unsecured notes at par upon maturity.

See Note 12, "Subsequent Events," for further discussion of debt activity subsequent to June 30, 2025.

In the aggregate, secured notes payable mature at various dates from March 2027 through July 2066, and are secured by certain apartment communities (with a net carrying value of $1,227,306,000, excluding communities classified as held for sale, as of June 30, 2025).
Scheduled payments and maturities of secured notes payable and unsecured notes outstanding at June 30, 2025 were as follows (dollars in thousands):

YearSecured notes principal
payments and maturities		Unsecured notes and Term Loan maturitiesStated interest rate of
 unsecured notes and Term Loan
2025$1,935 $300,000 3.50 %
202611,811 475,000 2.95 %
300,000 2.90 %
2027250,159 400,000 3.35 %
202819,002 450,000 3.20 %
400,000 1.90 %
2029131,561 450,000 3.30 %
450,000 
SOFR + 0.78%
20309,000 700,000 2.30 %
20319,600 600,000 2.45 %
203210,400 700,000 2.05 %
203311,900 350,000 5.00 %
400,000 5.30 %
203412,800 400,000 5.35 %
Thereafter256,831 350,000 3.90 %
300,000 4.15 %
300,000 4.35 %
 $724,999 $7,325,000  
The Company was in compliance at June 30, 2025 with customary covenants under the Credit Facility, the Term Loan and the indentures under which the unsecured notes were issued.