| Debt |
6. Debt In January 2026, the Company drew down the $90.0 million available under the Term Loan 1 delayed draw and used the proceeds to repay the $65.0 million Series A Senior Notes at their scheduled maturity in January 2026 and for general corporate purposes. In connection with the draw down under the Term Loan 1 delayed draw, the Company reclassified deferred financing costs of $1.0 million from prepaid expenses and other assets, net to debt, net of unamortized deferred financing costs on the accompanying consolidated balance sheet as of March 31, 2026. As of March 31, 2026, the Company had no amount outstanding on its credit facility, with $500.0 million of capacity available for borrowing under the facility (see Note 14). The Company’s ability to draw on the credit facility is subject to the Company’s compliance with various financial covenants. Debt consisted of the following (in thousands): | | | | | | | | | | | | | | | | | | | | | | | Balance Outstanding as of | | | March 31, 2026 | | | | March 31, | | December 31, | | | Rate Type | | Interest Rate | | Maturity Date | | 2026 | | 2025 | | | | | | | | | | (unaudited) | | | | Unsecured Corporate Credit Facilities (1) | | | | | | | | | | | | | | Term Loan 1 | | Fixed | (2) | 4.67 | % | | January 24, 2029 | | $ | 275,000 | | $ | 185,000 | Term Loan 2 | | Fixed | (3) | 5.34 | % | | January 24, 2030 | | | 275,000 | | | 275,000 | Term Loan 3 | | Floating | | 5.13 | % | | January 24, 2031 | | | 300,000 | | | 300,000 | Total unsecured corporate credit facilities | | | | | | | | | $ | 850,000 | | $ | 760,000 | | | | | | | | | | | | | | | Unsecured Senior Notes | | | | | | | | | | | | | | Series A | | N/A | (4) | N/A | | | N/A | | $ | — | | $ | 65,000 | Series B | | Fixed | | 4.79 | % | | January 10, 2028 | | | 105,000 | | | 105,000 | Total unsecured senior notes | | | | | | | | | $ | 105,000 | | $ | 170,000 | | | | | | | | | | | | | | | Total debt | | | | | | | | | | 955,000 | | | 930,000 | Unamortized deferred financing costs | | | | | | | | | | (12,285) | | | (11,914) | Debt, net of unamortized deferred financing costs | | | | | | | | | $ | 942,715 | | $ | 918,086 |
| (1) | The variable interest rates on the Company’s unsecured corporate credit facilities are based on a pricing grid depending on the Company’s leverage ratio. |
| (2) | Term Loan 1 is currently subject to two interest rate swap derivatives (see Note 4). Term Loan 1 has an initial maturity of January 24, 2029 with two twelve-month options to extend at the Company’s election, which would result in an extended maturity of January 24, 2031, upon the payment of applicable fees and the satisfaction of certain customary conditions. |
| (3) | Term Loan 2 is currently subject to two interest rate swap derivatives (see Note 4) covering a partial balance of $200.0 million. Term Loan 2 has an initial maturity of January 24, 2030 with one twelve-month option to extend at the Company’s election, which would result in an extended maturity of January 24, 2031, upon the payment of applicable fees and the satisfaction of certain customary conditions. |
| (4) | Series A Senior Notes were repaid in January 2026, using proceeds received from the Company’s Term Loan 1 delayed draw. |
Interest Expense Total interest incurred and expensed on the Company’s debt was as follows (unaudited and in thousands): | | | | | | | | | Three Months Ended March 31, | | | 2026 | | 2025 | Interest expense on debt | | $ | 12,357 | | $ | 11,865 | Noncash interest on derivatives, net | | | (2,121) | | | 982 | Amortization of deferred financing costs | | | 1,041 | | | 863 | Capitalized interest | | | — | | | (1,028) | Total interest expense | | $ | 11,277 | | $ | 12,682 |
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