v3.26.1
DEBT OBLIGATIONS
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
DEBT OBLIGATIONS
7. DEBT OBLIGATIONS
The following table sets forth information regarding the Company’s consolidated debt obligations outstanding as of June 30, 2026 and December 31, 2025 (in thousands):
June 30, 2026December 31, 2025Effective
Interest Rate		Maturity
Date
SECURED DEBT:
3025 JFK Construction Loan $— $178,014 
SOFR + 3.60%
(b)July 2026
Avira Secured Term Loan (g)90,000 — 
SOFR + 1.85%
(g)June 2033
3151 Market C-PACE Loan (a)
57,324 57,324 7.31%March 2054
Principal balance outstanding147,324 235,338 
Less: deferred financing costs(3,064)(1,259)
Total Secured indebtedness$144,260 $234,079 
UNSECURED DEBT
$600.0M Unsecured Credit Facility
$149,000 $— 
SOFR + 1.50%
(c)
June 2027
Term Loan - Swapped to fixed250,000 250,000 
SOFR + 1.70%
(c)(d)
June 2027
$450.0M 3.95% Guaranteed Notes due 2027
450,000 450,000 4.03%November 2027
$350.0M 8.30% Guaranteed Notes due 2028
350,000 350,000 8.48%
(e)
March 2028
$350.0M 4.55% Guaranteed Notes due 2029
350,000 350,000 4.30%October 2029
$550.0M 8.88% Guaranteed Notes due 2029
550,000 550,000 8.52%April 2029
$300.0M 6.13% Guaranteed Notes due 2031
300,000 300,000 6.13%January 2031
Indenture IA (Preferred Trust I)27,062 27,062 
SOFR + 1.51%
(f)
March 2035
Indenture IB (Preferred Trust I)25,774 25,774 
SOFR + 1.51%
(f)
April 2035
Indenture II (Preferred Trust II)25,774 25,774 
SOFR + 1.51%
(f)
July 2035
Principal balance outstanding2,477,610 2,328,610 
Plus: original issue premium (discount), net$6,825 $7,760 
Less: deferred financing costs(11,689)(13,587)
Total unsecured indebtedness$2,472,746 $2,322,783 
Total Debt Obligations$2,617,006 $2,556,862 

(a)In December 2025, we closed on a $50.5 million Commercial Property Assessed Clean Energy ("C-PACE") financing for the development project at 3151 Market Street, which includes $30.0 million in additional future funding for new leasing. The loan bears interest at 7.31%, has an initial maturity date of March 31, 2054 and includes $3.3 million of prepaid interest. The prepaid interest is included within other assets in the Consolidated Balance Sheet.
(b)The interest rate is capped at 6.60% through the maturity of the loan. On June 23, 2026, the Company retired the $178 million construction loan.
(c)Spread includes a 10 basis point daily secured overnight financing rate (" SOFR") adjustment. The Unsecured Credit Facility has an original maturity date of June 30, 2026, subject to two six-month extensions. The $250.0 million unsecured term loan has a scheduled maturity date of June 30, 2027.
(d)On November 23, 2022, the $250.0 million unsecured term loan was swapped to a fixed rate. At June 30, 2026, the fixed rate for this instrument was 5.41% and matures on June 30, 2027. The effective date of the swap was January 31, 2023.
(e)During the third quarter of 2023, Moody’s downgraded the Company's senior unsecured credit rating from Baa3 to Ba1. As a result of the downgrade, the interest rate on the Company's 7.55% Guaranteed Notes due 2028 (the "2028 Notes") increased 25 basis points in September 2023 due to the coupon adjustment provisions within the 2028 Notes. During the first quarter of 2024, S&P downgraded the Company's senior unsecured credit rating from BBB- to BB+. As a result of the downgrade, the interest rate on the 2028 Notes increased 25 basis points to 8.05% in March 2024 due to the coupon adjustment provisions within the 2028 Notes. During the second quarter of 2024, Moody's downgraded the Company's senior unsecured credit rating from Ba1 to Ba2. As a result of the downgrade, the interest rate on the 2028 Notes increased 25 basis points to 8.30% in April 2024 due to the coupon adjustment provisions within the 2028 Notes. During the first quarter of 2026, S&P downgraded the Company's senior unsecured credit rating from BB+ to BB-. As a result of the downgrade, the interest rate on the 2028 Notes increased 50 basis points to 8.80%, effective September 2026, due to the coupon adjustment provisions within the 2028 Notes.
(f)On January 16, 2024, the Trust Preferred I Indenture IA was swapped to a fixed rate at 5.14% for the period from March 30, 2024 to December 30, 2026 and Trust Preferred I Indenture IB and Trust Preferred II Indenture II were swapped to a fixed rate at 5.24% for the period from January 30, 2024 to January 30, 2027.
(g)On June 24, 2026, the Company closed on a $90 million secured term loan at Avira, the residential component of 3025 JFK, located in Philadelphia, Pennsylvania. The loan has a stated interest rate of SOFR + 1.85% and an initial maturity date of June 2033. Effective June 24, 2026, the loan was swapped to a fixed rate at 5.81% through the maturity date.
The Company utilizes borrowings under its unsecured credit facility (the “Unsecured Credit Facility”) for general business purposes, including to fund costs of acquisitions, developments and redevelopments of properties, and to fund share repurchases and repay other debt. The Unsecured Credit Facility provides for borrowings of up to $600.0 million and the per annum variable interest rate on borrowings is SOFR plus 1.40% plus a spread adjustment of 0.10%. The interest rate and facility fee are subject to adjustment upon a change in the Company’s unsecured debt ratings. During the six months ended June 30, 2026, the weighted-average interest rate on Unsecured Credit Facility borrowings was 5.15%, resulting in $1.9 million of interest expense for such period.
On May 28, 2026, the Company exercised its first six-month extension right on the existing Unsecured Credit Facility, extending the maturity date to December 30, 2026. The Company has one additional six-month extension right to extend the maturity date to June 30, 2027.
Additional Information on Unsecured and Secured Consolidated Debt
The Parent Company unconditionally guarantees the unsecured debt obligations of the Operating Partnership (or is a co-borrower with the Operating Partnership) but does not by itself incur unsecured indebtedness. The Parent Company has no material assets other than its investment in the Operating Partnership.
On September 26, 2025, the Company and the Operating Partnership amended its Unsecured Credit Facility to, among other things, amend the restricted payments covenant to permit the Operating Partnership to pay dividends and make distributions attributable to any period of four consecutive fiscal quarters that ends (i) on any date that occurs after June 30, 2025 and on or prior to March 31, 2026, in an amount not to exceed, in the aggregate, the greater of (a) 100% of FFO attributable to such period or (b) the minimum amount necessary for the Company to maintain its REIT status and (ii) on April 1, 2026 or any date that occurs thereafter, in amount not to exceed, in the aggregate, the greater of (a) 95% of FFO attributable to such period or (b) the minimum amount necessary for the Company to maintain its REIT status.
The Company was in compliance with all financial covenants as of June 30, 2026. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital.
As of June 30, 2026, the aggregate scheduled principal payments on the Company’s consolidated debt obligations (secured and unsecured) were as follows (in thousands):
2026 (six months remaining)$— 
2027849,000 
2028350,000 
2029900,000 
2030— 
Thereafter525,934 
Total principal payments 2,624,934 
Net unamortized premiums/(discounts)6,825 
Net deferred financing costs(14,753)
Outstanding indebtedness $2,617,006