Notes Payable |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| Notes Payable | 7. NOTES PAYABLE
At March 31, 2026 and December 31, 2025, notes payable consisted of the following:
1 As of March 31, 2026 and December 31, 2025, the Credit Facility (as defined below in Section (a) of this Note 7), had an outstanding principal balance of $188,750 thousand and $142,500 thousand, respectively. The Credit Facility was issued at a discount, the carrying value of which was $1,989 thousand and $1,591 thousand as of March 31, 2026 and December 31, 2025, respectively. The Credit Facility matures on September 11, 2029.
2 The Company has issued mortgage notes in connection with various operating properties at an aggregate value of $112,285 thousand as of March 31, 2026 and December 31, 2025. The mortgage notes were issued at a discount, the carrying value of which was $747 thousand and $799 thousand, and are presented net of principal payments of $8,376 thousand and $7,499 thousand as of March 31, 2026 and December 31, 2025, respectively. These mortgage notes mature between December 31, 2028 and June 5, 2035 with interest rates ranging between 5.00% and 7.77%.
(a) Syndicated Credit Facility On September 11, 2024, the Company entered into a $150,000 thousand syndicated credit facility led by Valley National Bank, which was amended on February 19, 2026 via Amendment No. 1 thereto to increase the total amount borrowed to $200,000 thousand (as amended, the “Credit Facility”). The Credit Facility has a maturity date of September 11, 2029 and bears interest from the date of issuance at SOFR plus 500 basis points, payable quarterly. As of March 31, 2026, the floating interest rate on the Credit Facility was 8.67%. The Credit Facility includes certain covenants which require the Company to maintain a debt service coverage ratio of 1.5 to 1.0, a funded debt to Adjusted Earnings Before Interest Depreciation and Amortization (“Adjusted EBITDA”) (see “Non-GAAP Measures” below for additional information on Adjusted EBITDA) ratio no greater than 3.5 to 1.0, and a tangible net worth of at least $500 thousand. As of March 31, 2026, the Company was in compliance with all covenants associated with the Credit Facility. |
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