| Schedule of senior mortgage indebtedness |
The following table summarizes certain information at March 31, 2026 and December 31, 2025 with respect to the Company’s senior mortgage indebtedness (amounts in thousands): | | | | | | | | | | | | | | | Outstanding Principal | | As of March 31, 2026 | | | March 31, | | December 31, | | | | Interest-only | | | Property | | 2026 | | 2025 | | Interest Rate | | through date | | Maturity Date | Fixed Rate: | | | | | | | | | | | | | Allure at Southpark | | $ | 55,166 | | $ | 55,166 | | 5.58 | % | Interest-only | | January 1, 2030 | Amira at Westly | | | 56,650 | | | 56,650 | | 4.81 | % | Interest-only | | November 1, 2034 | Avenue at Timberlin Park | | | 23,660 | | | 23,660 | | 5.47 | % | August 2027 | | August 1, 2029 | District at Parkview | | | 38,625 | | | 38,625 | | 5.18 | % | Interest-only | | January 1, 2036 | ILE (1) | | | 17,995 | | | 23,096 | | 4.30 | % | (2) | | (1) | Skytop Apartments | | | 57,525 | | | 57,525 | | 4.98 | % | Interest-only | | October 1, 2035 | Southern Pines Reserve | | | 30,739 | | | 30,739 | | 5.13 | % | Interest-only | | May 1, 2035 | Villas at Huffmeister | | | 26,713 | | | 26,846 | | 3.56 | % | (2) | | October 1, 2029 | Yauger Park Villas (3) | | | 13,634 | | | 13,720 | | 4.86 | % | (2) | | April 1, 2026 | Total Fixed Rate | | $ | 320,707 | | $ | 326,027 | | | | | | | | | | | | | | | | | | | | Floating Rate: | | | | | | | | | | | | | DB Loan (4) | | $ | 55,000 | | $ | 60,000 | | 5.45 | % | Interest-only | | October 4, 2027 | Harmony at Clear Creek (5) | | | 1 | | | 1 | | 6.83 | % | Interest-only | | September 30, 2028 | ILE (6) | | | 19,838 | | | 21,782 | | 6.52 | % | Interest-only | | October 1, 2027 | Wayford at Concord (7) | | | 32,973 | | | 32,973 | | 4.73 | % | May 2027 | | May 1, 2029 | Total Floating Rate | | $ | 107,812 | | $ | 114,756 | | | | | | | Total | | $ | 428,519 | | $ | 440,783 | | | | | | | Fair value adjustments | | | (1,994) | | | (2,075) | | | | | | | Deferred financing costs, net | | | (9,715) | | | (10,316) | | | | | | | Total mortgages payable | | $ | 416,810 | | $ | 428,392 | | | | | | |
(1) | ILE’s fixed rate debt represents the aggregate debt outstanding across two separate credit agreements. Of the outstanding balance, one credit agreement (“CA1”) has a balance of $13.6 million at a fixed rate of 3.75%, and the second credit agreement (“CA2”) has a balance of $4.4 million at a fixed rate of 6.00%. CA2 bears interest at a floating rate that is subject to an interest rate swap to effectuate a fixed rate; refer to Note 13 for further information. CA1 matures in 2026; CA2 matures in 2028. The ILE credit agreements contain certain financial and operating covenants, including minimum liquidity and minimum debt service coverage. |
(2) | The loan requires monthly payments of principal and interest. |
(3) | The principal balance includes a $9.4 million senior loan at a fixed rate of 4.81% and a $4.2 million supplemental loan at a fixed rate of 4.96%. On April 1, 2026, the Company entered into a new floating rate loan and paid off the previous fixed rate senior and supplemental loans. |
(4) | The Deutsche Bank loan (“DB Loan”) bears interest at one-month Term SOFR plus 2.95%. In March 2026, the one-month Term SOFR was 3.67%. The Term SOFR rate is subject to a 2.50% rate cap through April 2026; refer to Note 13 for further information. The DB Loan contains certain financial and operating covenants, including maximum leverage, minimum debt yield and minimum debt service coverage. |
(5) | Represents a construction loan with a maximum commitment of $46.5 million. At March 31, 2026, a negligible amount was drawn on the loan. |
(6) | The ILE loan bears interest at one-month Term SOFR plus 2.85%, subject to a 6.50% rate floor, and contains a minimum debt service coverage covenant. In March 2026, the one-month Term SOFR was 3.67%. |
(7) | The Wayford at Concord loan bears interest at the 30-day average SOFR plus 2.23%. In March 2026, the 30-day average SOFR was 3.67%. SOFR rate is subject to a 2.50% rate cap through April 2027; refer to Note 13 for further information. |
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| Schedule of contractual principal payments of its borrowings |
The following table summarizes the Company’s contractual principal payments of its borrowings at March 31, 2026 for the five subsequent years and thereafter (amounts in thousands): | | | | Year | | Total | 2026 (April 1 – December 31) | | $ | 27,716 | 2027 | | | 75,945 | 2028 | | | 5,703 | 2029 | | | 80,450 | 2030 | | | 55,166 | Thereafter | | | 183,539 | | | $ | 428,519 | Add: Unamortized fair value debt adjustment | | | (1,994) | Subtract: Deferred financing costs, net | | | (9,715) | Total | | $ | 416,810 |
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