Debt |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Note 7. Debt
Mortgage Loans Payable
Mortgage loans payable are secured by the properties on which the debt was placed and were considered nonrecourse debt with limited customary exceptions at the time of loan origination. The Company was in compliance with all of its debt covenants related to its mortgage loans payable as of June 30, 2026. Fixed-rate mortgage loans payable are composed of the following as of June 30, 2026:
(a) Fixed-rate mortgages are recourse loans pursuant to their pre-defined loan terms, unless otherwise noted. (b) Fixed-rate mortgage is a nonrecourse loan pursuant to its pre-defined loan terms. (c) Mortgage bears interest at a variable-rate of 1.70% in excess of and concurrent with the closing of the mortgage, the Company entered into an interest rate swap agreement which effectively converted the variable-rate mortgage to a fixed-rate mortgage. Accordingly, this mortgage has been presented as a fixed-rate mortgage. (d) The weighted average effective interest rate on mortgage loans payable was 5.29% as of June 30, 2026.
Revolving Lines of Credit
On April 15, 2026, the Operating Partnership (as the borrower) and the Company entered into an Amended and Restated Credit Agreement which provides the Company with senior secured credit facilities consisting of a revolving credit facility (the “Revolving Credit Facility”) in the initial maximum principal amount of $200,000,000 until April 15, 2029 and a delayed draw term loan facility (the “DDTL Facility,” and collectively with the Revolving Credit Facility, the “Facilities”) in the initial maximum principal amount of $400,000,000 pursuant to which delayed draw term loans may be borrowed through October 15, 2026. The Facilities may be increased up to a maximum principal amount of $1,000,000,000 through additional revolver loans or term loans, upon request of the Borrower, subject to, among other things, the receipt of commitments for the increased amount. The Amended and Restated Credit Agreement replaces, in its entirety, the prior revolving credit facility which was entered into on May 30, 2024.
The Operating Partnership has the option to select loans under the Revolving Credit Facility and DDTL Facility as either a (i) base rate loan, (ii) term Secured Overnight Financing Rate (“SOFR”) loan (with a one, three or six months tenor), or (iii) daily simple SOFR loan (as in effect from time to time), each of which is subject to an applicable margin that varies based on a ratio of the total indebtedness and total asset value of the Company as defined in the agreement. Interest on base rate loans and daily simple SOFR loans shall be payable monthly in arrears on the first day of each month. Interest on term SOFR loans will be payable at the end of each interest period, and in the case of interest periods longer than three months, quarterly. The entire outstanding principal indebtedness of the Operating Partnership under the Amended and Restated Credit Agreement and any accrued interest thereon will be due and payable on April 15, 2029. The Operating Partnership is also required to pay an unused commitment fee on the difference between committed amounts under the Revolving Credit Facility and the amounts actually used under the Revolving Credit Facility, which is (i) 0.25% per annum when usage of the Revolving Credit Facility is less than or equal to 50%, and (ii) 0.15% per annum when usage of the Revolving Credit Facility is greater than 50%. The credit facility contains financial covenants including, but not limited to, maximum debt leverage, maximum secured debt, minimum fixed charge coverage, and minimum net worth. In addition, the facility contains restrictions including, but not limited to, limits on indebtedness, certain investments and distributions. As of June 30, 2026, the Company has borrowed $271.1 million under the DDTL Facility with an interest rate of 5.72% and the Company had not drawn any amount under the Revolving Credit Facility. The Company is in compliance with all financial covenants.
Scheduled Principal Payments
Scheduled principal payments on the Company's outstanding mortgage loans payable, term loans, and revolving credit facility as of June 30, 2026 are as follows:
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