v3.26.1
Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt

6. Debt

At June 30, 2026, our consolidated borrowings consisted of the following (amounts in thousands):

 

 

Principal Outstanding

 

 

Interest

 

Current

 

Loan

 

June 30, 2026

 

 

Rate (1)(2)

 

Maturity

 

Revolving credit facility:

 

 

 

 

 

 

 

 

2024 revolving credit facility (3)

 

$

43,050

 

 

SOFR + 145 bps

 

June 2028 (4)

 

Total revolving credit facility

 

 

43,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term loan facilities:

 

 

 

 

 

 

 

 

2016 term loan facility

 

 

100,000

 

 

5.21% (5)

 

January 2028 (6)

 

2018 term loan facility

 

 

200,000

 

 

5.09% (7)

 

August 2028 (8)

 

2026 term loan facility

 

 

200,000

 

 

SOFR + 130 bps

 

June 2031

 

Total term loan facilities

 

 

500,000

 

 

 

 

 

 

Less: Total unamortized deferred financing fees

 

 

(4,153

)

 

 

 

 

 

Total term loan facilities, net

 

 

495,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes payable:

 

 

 

 

 

 

 

 

2017 series A senior notes

 

 

95,000

 

 

4.05%

 

May 2027

 

2017 series B senior notes

 

 

50,000

 

 

4.15%

 

May 2029

 

2017 series C senior notes

 

 

30,000

 

 

4.30%

 

May 2032

 

2019 series A senior notes

 

 

85,000

 

 

3.73%

 

September 2029

 

2019 series B senior notes

 

 

100,000

 

 

3.83%

 

September 2031

 

2019 series C senior notes

 

 

90,000

 

 

3.98%

 

September 2034

 

2021 series A senior notes

 

 

50,000

 

 

2.62%

 

October 2028

 

2021 series B senior notes

 

 

200,000

 

 

2.89%

 

October 2030

 

2024 series A senior notes

 

 

150,000

 

 

6.56%

 

May 2033

 

2024 series B senior notes

 

 

50,000

 

 

6.56%

 

August 2033

 

2025 series A senior notes

 

 

25,000

 

 

6.13%

 

March 2030

 

2025 series B senior notes

 

 

100,000

 

 

6.33% (9)

 

March 2032

 

Total notes payable

 

 

1,025,000

 

 

 

 

 

 

Less: Total unamortized deferred financing fees

 

 

(5,618

)

 

 

 

 

 

Total notes payable, net

 

 

1,019,382

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage notes payable:

 

 

 

 

 

 

 

 

USFS II – Albuquerque

 

 

6,368

 

 

4.46%

 

July 2026 (10)

 

ICE – Charleston

 

 

8,109

 

 

4.21%

 

January 2027

 

VA – Loma Linda

 

 

127,500

 

 

3.59%

 

July 2027

 

CBP – Savannah

 

 

7,331

 

 

3.40%

 

July 2033

 

Total mortgage notes payable

 

 

149,308

 

 

 

 

 

 

Less: Total unamortized deferred financing fees

 

 

(241

)

 

 

 

 

 

Less: Total unamortized premium/discount

 

 

(161

)

 

 

 

 

 

Total mortgage notes payable, net

 

 

148,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

$

1,707,185

 

 

 

 

 

 
(1)
Effective interest rates are as follows: 2016 term loan facility 5.49%, 2018 term loan facility 5.53%, 2026 term loan facility 5.11%, 2017 series A senior notes 4.15%, 2017 series B senior notes 4.23%, 2017 series C senior notes 4.37%, 2019 series A senior notes 3.82%, 2019 series B senior notes 3.91%, 2019 series C senior notes 4.04%, 2021 series A senior notes 2.74%, 2021 series B senior notes 2.99%, 2024 series A senior notes 6.74%, 2024 series B senior notes 6.73%, 2025 series A senior notes 6.36%, 2025 series B senior notes 6.51%, USFS II – Albuquerque 3.92%, ICE – Charleston 3.93%, VA – Loma Linda 3.78%, CBP – Savannah 4.12%.
(2)
At June 30, 2026, the USD secured overnight financing rate (“SOFR”) with a five day lookback was 3.62%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for each of our $400.0 million senior unsecured revolving credit facility (the “2024 revolving credit facility”), our $200.0 million senior unsecured term loan facility (our “2026 term loan facility”), our $200.0 million senior unsecured term loan facility (as amended, our “2018
term loan facility”) and our $100.0 million senior unsecured term loan facility (as amended, our “2016 term loan facility”) is based on our consolidated leverage ratio, as set forth in the respective loan agreements.
(3)
Our $400.0 million senior unsecured 2024 revolving credit facility had available capacity of $356.8 million at June 30, 2026, in addition to an accordion feature that provides us with additional capacity of up to $300.0 million, subject to syndication of the increase and the satisfaction of customary terms and conditions.
(4)
Our 2024 revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.
(5)
Our 2016 term loan facility is subject to three interest rate swaps with an effective date of December 23, 2024 and a notional value of $100.0 million, which effectively fixes the interest rate at 5.21% annually, based on our consolidated leverage ratio as defined in our 2016 term loan facility agreement.
(6)
Our 2016 term loan facility has two one-year as-of-right extension options subject to certain conditions and the payment of an extension fee.
(7)
Our 2018 term loan facility is subject to three interest rate swaps, of which one has an effective date of March 24, 2025 and two of the swaps have an effective date of June 30, 2025. The three swaps have an aggregate notional value of $200.0 million, which effectively fixes the interest rate at 5.09% annually, based on our consolidated leverage ratio as defined in our 2018 term loan facility agreement.
(8)
Our 2018 term loan facility has two one-year as-of-right extension options subject to certain conditions and the payment of an extension fee.
(9)
We entered into two $50.0 million treasury lock agreements to fix the Treasury rate of our 2025 series B senior notes.
(10)
On July 14, 2026, we used $6.4 million of available cash to extinguish the mortgage note obligation on USFS II – Albuquerque.

As of June 30, 2026, the net carrying value of real estate collateralizing our mortgages payable totaled $206.6 million. See Note 8 for the fair value of our debt instruments.

2026 Term Loan Facility

On June 25, 2026, we entered into our $200.0 million senior unsecured 2026 term loan facility, which includes an accordion feature that provides us with additional capacity, subject to the satisfaction of customary terms and conditions, of up to $50.0 million for a total facility size of $250.0 million. The 2026 term loan facility matures on June 25, 2031 and is prepayable without penalty.

Borrowings under our 2026 term loan facility will, at our option, bear interest at floating rates equal to either (i) a fluctuating rate equal to the sum of (a) highest of (x) PNC Bank's base rate, (y) the federal funds effective rate plus 0.50% and (z) the one-month adjusted term SOFR rate plus 1.00%, plus, in each case, (b) a margin ranging from 0.20% to 0.70% based on the Company’s leverage ratio, (ii) the daily simple SOFR (the “DSS”), or (iii) the term SOFR (the “Term SOFR”), plus, in the case of borrowings bearing interest at DSS or Term SOFR, a margin ranging from 1.20% to 1.70% based on the Company’s leverage ratio.

Our 2026 term loan facility also contains certain customary covenants, including but not limited to financial covenants that require us to maintain maximum ratios of consolidated total indebtedness, consolidated secured indebtedness and consolidated secured recourse indebtedness to total asset value and a minimum consolidated fixed charge ratio.

2016 Term Loan Facility

On June 25, 2026, we entered into the eleventh amendment to our 2016 term loan facility to remove the credit spread adjustment applicable to SOFR-based borrowings, consistent with our 2026 term loan facility.

Financial Covenant Considerations

As of June 30, 2026, we were in compliance with all financial and other covenants related to our debt.