| Debt Obligations |
Unsecured Credit Facility. We had an unsecured credit agreement (the “Original Credit Agreement”) that provided for an aggregate commitment of the lenders of up to $525,000,000 comprising of a $425,000,000 revolving credit facility and two $50,000,000 term loans with maturities of November 19, 2025 and November 19, 2026 (the “Original Term Loans”). The Original Credit Agreement had a maturity date of November 19, 2026 and permitted us to request increases to the revolving credit facility and term loans commitments up to a total of $1,000,000 (the “Original Accordion”). During the third quarter of 2025, we entered into a new four-year unsecured credit agreement (the “Credit Agreement”) maturing in July 2029, to replace the Original Credit Agreement. The Credit Agreement increased the aggregate commitment on our revolving line of credit from $425,000,000 to $600,000,000 (the “Revolving Line of Credit”), provides for the opportunity to increase the total commitment to an aggregate $1,200,000,000 (the “Accordion”) and allows for a one-year extension option, subject to customary conditions. Material terms of the Credit Agreement remain unchanged. In connection with the Credit Agreement, the Original Term Loans were rolled into the Revolving Line of Credit. During the fourth quarter of 2025, we amended our Credit Agreement to increase the aggregate commitment of the lenders by $200,000,000 to a total of $800,000,000 through the exercise of the Accordion and established term loans totaling $200,000,000 (the “Term Loans”). The Term Loans consist of $50,000,000, $55,000,000, $55,000,000 and $40,000,000 borrowings, with contractual maturities of three, four, five and seven years, respectively. Based on our leverage at March 31, 2026, the facility provides for interest annually at SOFR plus 110 basis points and a facility fee of 15 basis points. Interest Rate Swap Agreements. In connection with entering into the Original Term Loans described above, we entered into two receive variable/pay fixed interest rate swap agreements with maturities of November 19, 2025 and November 19, 2026, respectively, that effectively locked in the forecasted interest payments on the Original Term Loans’ borrowings over their four and five year terms of the loans. Additionally, during the fourth quarter of 2025, we entered into interest rate swaps with maturities of three, four, five and seven years, respectively (the “Interest Rate Swaps”) to effectively lock-in the forecasted interest payments on the Term Loans. The Interest Rate Swaps are considered cash flow hedges and are recorded on our Consolidated Balance Sheets at fair value in Prepaid expenses and other assets, with cumulative changes in the fair value of these instruments recognized in Accumulated other comprehensive income (loss) on our Consolidated Balance Sheets. During the three months ended March 31, 2026 and 2025, we recorded an increase of $1,074,000 and a decrease of $910,000 to the fair value of Interest Rate Swaps, respectively. Information regarding our Interest Rate Swaps measured at fair value, which are classified as Level 2 of the fair value hierarchy, is presented below (dollar amounts in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Notional | | Fair Value at | | Date Entered | | Maturity Date | | Swap Rate | | Rate Index | | | Amount | | | March 31, 2026 | | | | December 31, 2025 | | November 2021 | | November 19, 2026 | | 2.46 | % | | 1-month SOFR | | $ | 50,000 | (1) | $ | 755 | | | $ | 938 | | December 2025 | | December 12, 2028 | | 4.61 | % | | SOFR with 5-day lookback | | | 25,000 | | | 103 | | | | (52) | | December 2025 | | December 12, 2028 | | 4.61 | % | | SOFR with 5-day lookback | | | 25,000 | | | 106 | | | | (55) | | December 2025 | | December 12, 2029 | | 4.65 | % | | SOFR with 5-day lookback | | | 55,000 | | | 214 | | | | (136) | | December 2025 | | December 12, 2030 | | 4.68 | % | | SOFR with 5-day lookback | | | 30,000 | | | 145 | | | | (45) | | December 2025 | | December 12, 2030 | | 4.72 | % | | SOFR with 5-day lookback | | | 25,000 | | | 85 | | | | (74) | | December 2025 | | December 12, 2032 | | 5.21 | % | | SOFR with 5-day lookback | | | 27,500 | | | 121 | | | | (45) | | December 2025 | | December 12, 2032 | | 5.25 | % | | SOFR with 5-day lookback | | | 12,500 | | | 27 | | | | (49) | | | | | | | | | | | $ | 250,000 | | $ | 1,556 | | | $ | 482 | |
| (1) | During the third quarter of 2025, the interest rate swap was rolled into the Revolving Line of Credit. |
Senior Unsecured Notes. We have senior unsecured notes held by institutional investors with interest rates ranging from 3.66% to 4.50%. The senior unsecured notes mature between 2026 and 2033. The senior unsecured notes and the Credit Agreement contain financial covenants, which are measured quarterly, that require us to maintain, among other things: | ● | a ratio of total indebtedness to total asset value not greater than 0.6 to 1.0; |
| ● | a ratio of secured debt to total asset value not greater than 0.35 to 1.0; |
| ● | a ratio of unsecured debt to the value of the unencumbered asset value not greater than 0.6 to 1.0; and |
| ● | a ratio of EBITDA, as calculated in the debt obligation, to fixed charges not less than 1.50 to 1.0. |
At March 31, 2026, we were in compliance with all applicable financial covenants. These debt obligations also contain additional customary covenants and events of default that are subject to a number of important and significant limitations, qualifications and exceptions. The following table sets forth information regarding debt obligations by component as of March 31, 2026 and December 31, 2025 (dollar amounts in thousands): | | | | | | | | | | | | | | | | | | | | At March 31, 2026 | | At December 31, 2025 | | | | Applicable | | | | Available | | | | Available | | | | Interest | | Outstanding | | for | | Outstanding | | for | | Debt Obligations | | Rate (1) | | Balance | | Borrowing | | Balance | | Borrowing | | Revolving line of credit (2) | | 4.39% | | $ | 282,963 | | $ | 317,037 | | $ | 252,863 | | $ | 347,137 | | Term loans, net of debt issue costs | | 4.87% | | | 198,315 | | | — | | | 198,213 | | | — | | Senior unsecured notes, net of debt issue costs | | 4.11% | | | 386,145 | | | — | | | 391,105 | | | — | | Total | | 4.38% | | $ | 867,423 | | $ | 317,037 | | $ | 842,181 | | $ | 347,137 | |
| (1) | Represents weighted average interest rate as of March 31, 2026. |
| (2) | Subsequent to March 31, 2026, we repaid $56,000 under our unsecured revolving line of credit. Accordingly, we have $226,963 outstanding and $373,037 available for borrowing under our unsecured revolving line of credit as of May 6, 2026. |
During the three months ended March 31, 2026 and 2025, our debt borrowings and repayments were as follows (in thousands): | | | | | | | | | | | | | | | | Three Months Ended March 31, | | | | 2026 | | 2025 | | Debt Obligations | | | Borrowings | | | Repayments | | Borrowings | | Repayments | | Revolving line of credit | | $ | 119,000 | | $ | (88,900) | (1) | $ | 15,000 | | $ | (10,500) | | Senior unsecured notes | | | — | | | (5,000) | | | — | | | (7,000) | | Total | | $ | 119,000 | | $ | (93,900) | | $ | 15,000 | | $ | (17,500) | |
| (1) | Subsequent to March 31, 2026, we repaid $56,000 under our unsecured revolving line of credit. Accordingly, we have $226,963 outstanding and $373,037 available for borrowing under our unsecured revolving line of credit as of May 6, 2026. |
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