v3.26.1
Borrowings
 6 Months Ended
Jun. 30, 2026
Notes To Financial Statements [Abstract]  
Borrowings

6. Borrowings

The following table summarizes the Company’s outstanding debt as of June 30, 2026 (dollars in thousands):

 

 

 

Balance

 

 

Weighted Average Effective Rate

 

 

Weighted Average Contract Maturity

Unsecured debt

 

 

 

 

 

 

 

 

Fixed rate senior notes

 

$

4,600,000

 

 

 

3.8

%

 

1/19/2032

Variable rate commercial paper program

 

 

664,000

 

 

 

4.1

%

 

7/8/2026

Variable rate term loan

 

 

100,000

 

 

 

4.4

%

 

11/15/2030

Debt issuance costs, discounts and premiums

 

 

(32,555

)

 

 

 

 

 

Total unsecured debt

 

$

5,331,445

 

 

 

3.8

%

 

 

Secured debt

 

 

 

 

 

 

 

 

Fixed rate property mortgages

 

$

363,293

 

 

 

4.4

%

 

1/26/2049

Debt issuance costs

 

 

(2,837

)

 

 

 

 

 

Total secured debt

 

$

360,456

 

 

 

4.4

%

 

 

Total outstanding debt

 

$

5,691,901

 

 

 

3.9

%

 

 

 

Unsecured Revolving Credit Facility

MAALP has entered into an unsecured revolving credit facility, with a borrowing capacity of $1.5 billion and an option to expand to $2.0 billion. The revolving credit facility bears interest at a variable rate, at MAALP’s election, of either (1) based upon the Secured Overnight Financing Rate plus an applicable margin ranging from 0.65% to 1.40% based upon MAALP’s credit rating, with the current spread at 0.725%, or (2) the base rate set forth in the credit agreement plus an applicable margin ranging from 0.00% to 0.40% based upon MAALP’s credit rating. The revolving credit facility has a maturity date in January 2030 with an option to extend for two additional six-month periods. As of June 30, 2026, there was no outstanding balance under the revolving credit facility, while $5.0 million of capacity was used to support outstanding letters of credit.

Unsecured Commercial Paper

MAALP has established an unsecured commercial paper program whereby MAALP may issue unsecured commercial paper notes with varying maturities not to exceed 397 days up to a maximum aggregate principal amount outstanding of $750.0 million. As of June 30, 2026, MAALP had $664.0 million of borrowings outstanding under the commercial paper program. For the three months ended June 30, 2026, the average daily borrowings outstanding under the commercial paper program were $680.7 million.

Unsecured Senior Notes

As of June 30, 2026, MAALP had $4.6 billion of publicly issued unsecured senior notes outstanding. The unsecured senior notes had maturities at issuance ranging from 5 to 30 years, with a weighted average maturity in 2032.

In February 2026, MAALP publicly issued $200.0 million in aggregate principal amount of unsecured senior notes, maturing January 2033 with a coupon rate of 4.650% per annum, or the Additional 2033 Notes. The Additional 2033 Notes have an effective interest rate of 4.606% over the life of the notes. The Additional 2033 Notes were issued as additional notes under the indenture and the supplemental indenture pursuant to which MAALP previously issued $400.0 million in aggregate principal amount of unsecured senior notes in November 2025, or the Initial 2033 Notes. The Additional 2033 Notes will be treated as a single series of securities with the Initial 2033 Notes and will have the same CUSIP number as, and be fungible with, the Initial 2033 Notes. The purchase price paid by the purchasers of the Additional 2033 Notes was 100.237% of the principal amount. The net proceeds of the offering, after considering the original issue premium, cash received for interest due but not accrued, and underwriting commissions and expenses totaling a net amount of approximately $2.0 million, were $202.0 million. The Additional 2033 Notes have been reflected net of premium and debt issuance costs in the Condensed Consolidated Balance Sheets as of June 30, 2026.

Unsecured Term Loan

In June 2026, MAALP entered into an unsecured delayed draw term loan program (the “DDTL Facility”) with a syndicate of banks in the aggregate committed principal amount of up to $350.0 million. Advances of loans under the DDTL Facility may be requested by MAALP in one or more draws (subject to a maximum of five draws) and will be available until December 21, 2026 (the “Commitment Expiration”). The DDTL Facility is scheduled to mature in November 2030. Amounts borrowed under the DDTL Facility will bear interest at a variable rate, at MAALP’s election, either (1) based upon the Secured Overnight Financing Rate plus an applicable margin ranging from 0.675% to 1.550% based upon MAALP’s credit rating or (2) a base rate plus an applicable margin ranging from 0.00% to 0.550% based upon MAALP’s credit rating. The DDTL Facility also contains an uncommitted accordion feature that allows MAALP to increase the total amount of unsecured indebtedness under the DDTL Facility to $550.0 million until the Commitment Expiration. The amounts due under the DDTL Facility may be prepaid, in whole or in part, subject to payment of applicable breakage fees. As of June 30, 2026, there was $100.0 million outstanding under the DDTL Facility. MAALP intends to use the loan proceeds for general corporate purposes, including repayment of other debt.

Secured Property Mortgages

As of June 30, 2026, MAALP had $363.3 million of fixed rate conventional property mortgages with a weighted average maturity in 2049.

Upcoming Debt Obligations

As of June 30, 2026, MAALP’s debt obligations over the next 12 months consist of approximately $1.6 billion of principal obligations, including $664.0 million of commercial paper borrowings due July 2026, $300.0 million of unsecured senior notes due September 2026 and $600.0 million of unsecured senior notes due June 2027.