v3.26.1
Mortgage Notes Payable and Other Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Mortgage Notes Payable and Other Debt Mortgage Notes Payable and Other Debt
The following table reflects the Company’s mortgage notes payable and other debt as of June 30, 2026 and December 31, 2025 (dollars in thousands):
Encumbered properties at June 30, 2026
Outstanding balance as of
Effective interest rate as of
June 30,
2026		December 31, 2025June 30,
2026		December 31, 2025Interest rateMaturity
Secured Term Loan 1 due 202815$85,771 $85,771 4.60 %4.60 %FixedMay 2028
Secured Term Loan 3 due 2031733,066 33,066 2.93 %2.93 %FixedDec 2031
Secured Term Loan 4 due 203356219,500 219,500 6.54 %6.54 %FixedJun 2033
Single Property Mortgage 1 due 204716,195 6,289 4.04 %4.04 %FixedMay 2047
Single Property Mortgage 2 due 2049114,197 14,412 2.99 %2.99 %FixedMay 2049
Single Property Mortgage 3 due 204918,809 8,942 2.99 %2.99 %FixedMay 2049
Multi Property Mortgage 1 due 203447,500 7,500 6.94 %6.94 %FixedMar 2034
Gross mortgage notes payable (1)
85375,038 375,480 5.53 %5.52 %
Deferred financing costs, net(6,354)(6,753)
Mortgage premiums and discounts, net(1,055)(1,098)
Mortgage notes payable, net$367,629 $367,629 
Fannie Mae Secured Debt 1 due 202611$198,096 $199,866 6.20 %6.63 %VariableNov 2026
Fannie Mae Secured Debt 2 due 202610133,758 134,873 6.25 %6.68 %VariableNov 2026
Total Fannie Mae Secured Debt (1)(2)
21$331,854 $334,739 6.22 %6.65 %
Term Loan due 2028 (3)
—$150,000 $150,000 5.36 %5.51 %VariableDec 2028
Deferred financing costs, net(1,326)(1,595)
Unsecured term loan, net$148,674 $148,405 
Unsecured revolving credit facility59$— $186,000 5.65 %5.94 %VariableDec 2028
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(1)For total gross mortgage notes payable and total Fannie Mae Secured Debt as of June 30, 2026 and December 31, 2025, effective interest rate is calculated on a weighted average basis.
(2)The Fannie Mae Secured Debt had interest rate caps that limit one-month SOFR (as defined below) at 3.50%.
(3)The Term Loan due 2028 has interest rate swaps that convert variable interest rates to fixed interest rates.

Mortgage Notes Payable
As of June 30, 2026, the Company had pledged $684.3 million in total real estate investments, at cost, as collateral for its $375.0 million of gross mortgage notes payable. The collateralized real estate investments are not available to satisfy other debts and obligations unless first satisfying the mortgage notes payable secured by these properties. The Company makes payments of principal and interest, or interest only, depending upon the specific requirements of each mortgage note, on a monthly basis.
Some of the Company’s mortgage note agreements require compliance with certain property-level financial covenants, including debt service coverage ratios. Notably, the Secured Term Loan 4 due 2033 loan agreement requires the OP to comply with certain covenants, including, maintaining combined cash and cash equivalents totaling at least $12.5 million at all times.

Fannie Mae Secured Debt
On October 31, 2016, the Company, through wholly-owned subsidiaries of the OP, entered into a master secured debt agreement with KeyBank (the “KeyBank Secured Debt”) and a master secured debt agreement with Capital One Multifamily
Finance LLC, an affiliate of Capital One (the “Capital One Secured Debt” and, together with the KeyBank Secured Debt, “Fannie Mae Secured Debt”). Advances made under these agreements were assigned by Capital One and KeyBank to Fannie Mae at closing for inclusion in Fannie Mae’s Multifamily MBS program. Borrowings under the Fannie Mae Secured Debt bore monthly interest equal to the sum of the current SOFR for one-month denominated deposits and a spread of 2.41% and 2.46% for the Capital One Secured Debt and the KeyBank Secured Debt, respectively. The Fannie Mae Secured Debt was scheduled to mature on November 1, 2026. The Company fully prepaid the Fannie Mae Secured Debt on August 3, 2026.
Through June 30, 2026, the Company had provided cash deposits totaling $15.4 million to Fannie Mae because the debt service coverage ratios of the underlying properties of each facility were below the minimum required amounts per the debt agreements. These deposits were recorded as restricted cash on the Company’s consolidated balance sheets and were pledged as additional collateral for the Fannie Mae Secured Debt. These deposits were fully refunded upon the prepayment of the Fannie Mae Secured Debt on August 3, 2026 in connection with the recast of the Credit Facilities (as defined below) on August 3, 2026.
As of June 30, 2026, the Company had pledged $597.6 million in total real estate investments, at cost as collateral under its Fannie Mae Secured Debt. All of the real estate assets pledged to secure borrowings under the Fannie Mae Secured Debt were released upon the prepayment of the Fannie Mae Secured Debt on August 3, 2026.

Unsecured Credit Facilities
On December 11, 2025, the Company, as guarantor, the OP, as borrower, and certain indirect subsidiaries of the Company entered into a credit agreement (the “2025 Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, and certain lenders party thereto. The 2025 Credit Agreement provided for (i) a $400 million senior unsecured revolving credit facility (the “Revolving Facility”) and (ii) a $150 million senior unsecured term loan facility (the “Term Loan” and, together with the Revolving Facility, the “Credit Facilities”). The Credit Facilities were recast on August 3, 2026. See Note 15 — Subsequent Events for further information.
The Credit Facilities had a maturity date of December 11, 2028. The interest rates applicable to loans under the Credit Facilities were, at the OP’s option, equal to either a base rate plus a margin ranging from 0.55% to 1.10% per annum or Daily Simple SOFR or Term SOFR plus a margin ranging from 1.55% to 2.10% per annum, in each case based on the Company’s consolidated leverage ratio. The Credit Facilities were guaranteed, jointly and severally, by the Company and certain indirect subsidiaries of the Company. As of June 30, 2026, the Company had $870.4 million in total real estate investments, at cost as the borrowing base under the Credit Facilities.
On April 25, 2026, the Company used a portion of the net proceeds from the Offering to repay in full the $186.0 million of then outstanding indebtedness under its Revolving Facility.

Debt Maturities
As of June 30, 2026, the Company’s indebtedness had the following maturities (dollars in thousands):
Mortgage notes payableFannie Mae Secured Debt Term LoanRevolving FacilityTotal
2026$450 $331,854 $— $— $332,304 
2027922 — — — 922 
202886,722 — 150,000 — 236,722 
2029982 — — — 982 
20301,013 — — — 1,013 
Thereafter284,949 — — — 284,949 
Total$375,038 $331,854 $150,000 $— $856,892 

The Company’s existing principal demands for cash are to fund acquisitions, capital expenditures, the payment of its operating and administrative expenses, debt service obligations (including principal repayment) and distributions to holders of its Series A Preferred Stock, Series B Preferred Stock and common stock. The Company closely monitors its current and anticipated liquidity position relative to its current and anticipated demands for cash and believes that it has sufficient current liquidity to meet its financial obligations for at least the next 12 months. The Company expects to fund its future short-term operating
liquidity requirements, including acquisitions and distributions to holders of its Series A Preferred Stock, Series B Preferred Stock and common stock, through a combination of current cash on hand, net cash provided by its operating activities and property dispositions, future takedowns under the Revolving Facility, issuance of equity securities and potential new financings utilizing certain of its unencumbered properties.