v3.26.1
Mortgage Notes Payable
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Mortgage Notes Payable Mortgage Notes Payable:
Mortgage notes payable at June 30, 2026 and December 31, 2025 consist of the following:
Carrying Amount of Mortgage Notes(1)
Property Pledged as CollateralJune 30, 2026December 31, 2025Effective Interest
Rate(2)		Monthly
Debt
Service(3)		Maturity
Date(4)
Arrowhead Towne Center$353,090 $352,776 6.75 %$1,921 2028
Crabtree Mall(5)156,104 155,793 6.57 %811 2029
Danbury Fair Mall152,612 152,455 6.59 %836 2034
Fashion Outlets of Chicago299,598 299,554 4.61 %1,145 2031
Fashion Outlets of Niagara Falls USA75,242 76,995 6.52 %727 2026
Freehold Raceway Mall399,460 399,376 3.94 %1,300 2029
Fresno Fashion Fair324,950 324,851 3.67 %971 2026
Green Acres Mall365,974 364,632 6.62 %1,819 2028
Kings Plaza Shopping Center524,072 528,906 3.71 %2,414 2030
Los Cerritos Center464,217 465,727 5.77 %2,506 2027
Pacific View69,236 69,691 5.45 %399 2032
Queens Center523,562 523,346 5.45 %2,349 2029
Santa Monica Place(6)300,000 300,000 5.15 %1,287 2024
SanTan Village Regional Center219,733 219,687 4.34 %788 2029
South Plains Mall(7)197,653 200,000 4.59 %703 2029
Victor Valley, Mall of84,089 84,033 6.85 %476 2034
Vintage Faire Mall(8)— 212,728 — %— — 
Washington Square(9)338,483 338,396 5.63 %1,580 2035
$4,848,075 $5,068,946 

(1)The mortgage notes payable balances include the unamortized debt discounts. Debt discounts represent the deficiency of the fair value of debt under the principal value of debt assumed in various acquisitions. The debt discounts are being amortized into interest expense over the term of the related debt in a manner which approximates the effective interest method. The debt discounts as of June 30, 2026 and December 31, 2025 consisted of the following:
Property Pledged as CollateralJune 30,
2026		December 31,
2025
Arrowhead Towne Center$14,501 $18,851 
Los Cerritos Center10,598 14,573 
Total$25,099 $33,424 

The mortgage notes payable also include unamortized deferred finance costs that are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. Unamortized deferred finance costs were $19,525 and $20,274 at June 30, 2026 and December 31, 2025, respectively.
(2)The interest rate disclosed represents the effective interest rate, including the impact of debt discounts and deferred finance costs.
(3)The monthly debt service represents the payment of principal and interest.
(4)The maturity date assumes that all extension options are fully exercised and that the Company does not opt to refinance the debt prior to these dates. These extension options are at the Company's discretion, subject to certain conditions, which the Company believes will be met.
(5)On August 7, 2025, the Company closed on an initial $159,100 two-year term loan with two one-year extension options on Crabtree Mall. The term loan also allows for additional requested advances of up to $51,180 based on defined conditions for capital expenditures and leasing costs for a maximum total term loan of $210,280. The term loan bears interest at a rate of SOFR plus 2.50%. The Company has purchased a SOFR interest rate cap for the initial term loan advance with a strike rate of 5.0% for the two-year base term of the term loan. The Company used a portion of the net proceeds from this term loan to fully repay borrowings outstanding on the Company's revolving credit facility (See Note 14—Acquisitions).
(6)Effective April 9, 2024, the loan is in default and accrues incremental default interest of 4%. On March 18, 2025, a court-appointed receiver assumed operational control and managerial responsibility for Santa Monica Place. The Company anticipates the disposition of the asset, which is under the control of the receiver, will be executed through foreclosure, deed-in-lieu of foreclosure, or by some other means, and is expected to be completed in the near future. Although the Company is no longer funding any cash shortfall, it will continue to record the operations of the property until the title for the Center is transferred and its obligation for the loan is discharged. Once title to the property is transferred, the Company will remove the net assets and liabilities from the Company's consolidated balance sheets. The loan is non-recourse to the Company.
(7)Effective November 6, 2025, the loan was in default and accrued incremental default interest of 4%. On February 6, 2026, the Company extended the loan maturity on the $200,000 loan to November 6, 2029, at the existing rate of 4.22%.
(8)On March 6, 2026, the Company repaid the outstanding loan balance of $211,507 on Vintage Faire Mall at maturity with cash on hand and $100,000 of borrowings on the revolving credit facility.
(9)On March 27, 2025, the Company closed a $340,000, ten-year loan on Washington Square, which matures on April 6, 2035. The loan bears interest at a fixed rate of 5.58% and is interest only during the entire loan term.
Most of the mortgage loan agreements contain a prepayment penalty provision for the early extinguishment of the debt.
The Company's mortgage notes payable are secured by the properties on which they are placed and are non-recourse to the Company.
The Company expects that all loan maturities during the next twelve months will be refinanced, restructured, extended and/or paid off from the Company's line of credit or with cash on hand, with the exception of Santa Monica Place as noted above.
Total interest expense capitalized was $3,698 and $4,696 for the three months ended June 30, 2026 and 2025, respectively, and $7,183 and $9,465 for the six months ended June 30, 2026 and 2025, respectively.
The estimated fair value (Level 2 measurement) of mortgage notes payable at June 30, 2026 and December 31, 2025 was $4,774,797 and $4,982,754, respectively, based on current interest rates for comparable loans. Fair value was determined using a present value model and an interest rate that included a credit value adjustment based on the estimated value of the property that serves as collateral for the underlying debt.