v3.26.1
Mortgage and Other Indebtedness, Net (Tables)
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Schedule of Pre-Emergence Net Mortgage Notes Payable

The Company’s mortgage and other indebtedness, net, consisted of the following:

 

 

June 30, 2026

 

 

December 31, 2025

 

 

 

Amount

 

 

Weighted-
Average
Interest
Rate (1)

 

 

Amount

 

 

Weighted-
Average
Interest
Rate (1)

 

Fixed-rate debt:

 

 

 

 

 

 

 

 

 

 

 

 

2032 non-recourse bank loan (2)

 

$

367,956

 

 

 

7.70

%

 

$

367,956

 

 

 

7.70

%

Non-recourse secured mall loan due 2031

 

 

423,853

 

 

 

7.40

%

 

 

—

 

 

 

—

 

Non-recourse loans on operating properties

 

 

1,050,833

 

 

 

5.52

%

 

 

1,133,962

 

 

 

4.64

%

Total fixed-rate debt

 

 

1,842,642

 

 

 

6.39

%

 

 

1,501,918

 

 

 

5.39

%

Variable-rate debt:

 

 

 

 

 

 

 

 

 

 

 

 

Non-recourse, secured term loan

 

 

—

 

 

 

—

 

 

 

646,722

 

 

 

6.74

%

2032 non-recourse bank loan (2)

 

 

75,000

 

 

 

7.72

%

 

 

75,000

 

 

 

7.97

%

Non-recourse secured lifestyle centers loan due 2032

 

 

176,080

 

 

 

7.72

%

 

 

—

 

 

 

—

 

Non-recourse loan on an operating property

 

 

30,680

 

 

 

7.37

%

 

 

31,380

 

 

 

7.62

%

Total variable-rate debt

 

 

281,760

 

 

 

7.68

%

 

 

753,102

 

 

 

6.90

%

Total fixed-rate and variable-rate debt

 

 

2,124,402

 

 

 

6.56

%

 

 

2,255,020

 

 

 

5.89

%

Unamortized deferred financing costs

 

 

(29,708

)

 

 

 

 

 

(9,276

)

 

 

 

Debt discounts (3)

 

 

(60,683

)

 

 

 

 

 

(74,959

)

 

 

 

Total mortgage and other indebtedness, net

 

$

2,034,011

 

 

 

 

 

$

2,170,785

 

 

 

 
(1)
Weighted-average interest rate excludes amortization of deferred financing costs.
(2)
The interest rate is a fixed 7.70% for $367,956 of the outstanding loan balance through July 2030, with the remaining loan balance bearing a variable interest rate based on the 30-day SOFR plus 4.10%. The full principal balance will convert to a variable rate after July 2030. The Operating Partnership has an interest rate swap on a notional amount of $32,000 related to the variable portion of the loan to effectively fix the interest rate at 7.3975%.
(3)
In conjunction with the acquisition of the Company's partner's 50% joint venture interests in CoolSprings Galleria, Oak Park Mall and West County Center and the implementation of fresh start accounting upon emergence from bankruptcy, the Company estimated the fair value of its mortgage notes with the assistance of a third-party valuation advisor. This resulted in recognizing a debt discount, which is accreted over the term of the respective debt using the effective interest method. The remaining debt discounts at June 30, 2026 will be accreted over a weighted average period of 4.2 years.
Schedule of Pre-Emergence Principal Payments

As of June 30, 2026, the scheduled principal amortization and balloon payments of the Company’s consolidated debt, excluding extensions available at the Company’s option, on all mortgage and other indebtedness, are as follows:

2026 (1)

 

$

180,344

 

2027

 

 

21,653

 

2028

 

 

145,913

 

2029

 

 

20,069

 

2030

 

 

929,295

 

2031

 

 

606,470

 

Thereafter

 

 

58,699

 

Total

 

 

1,962,443

 

Principal balance of loans with maturity dates prior to June 30, 2026 (2)

 

 

161,959

 

Total mortgage and other indebtedness

 

$

2,124,402

 

 

(1)
Reflects scheduled principal amortization for the period July 1, 2026 through December 31, 2026.
(2)
Represents the aggregate principal balance as of June 30, 2026 of the loans secured by Arbor Place, Parkdale Mall and Parkdale Crossing and The Outlet Shoppes at Laredo, which are in default. The loan secured by Parkdale Mall and Parkdale Crossing matured in March 2026 and had a balance of $48,285 as of June 30, 2026. The loan secured by Arbor Place matured in May 2026 and had a balance of $82,994 as of June 30, 2026. The loan secured by The Outlet Shoppes at Laredo matured in June 2026 and had a balance of $30,680 as of June 30, 2026. The Company anticipates returning Parkdale Mall and Parkdale Crossing and Arbor Place to the lenders in satisfaction of the debt. Subsequent to June 30, 2026, the loan secured by The Outlet Shoppes at Laredo was extended through November 2026. See Note 15.
Schedule of Effective Portion of Changes In The Fair Value of Derivatives Designated As, and That Qualify As, Cash Flow Hedges

The effective portion of changes in the fair value of derivatives designated as, and that qualify as, cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Such derivatives were used to hedge the variable cash flows associated with variable-rate debt.

Instrument Type

 

Location in the Condensed Consolidated Balance Sheet

 

Notional

 

 

Index

 

Fair Value at June 30, 2026

 

 

Maturity Date

Pay fixed/Receive variable swap

 

Intangible lease assets and other assets

 

$

32,000

 

 

1-month USD-SOFR CME

 

$

185

 

 

Jun-27

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

Hedging Instrument - Interest Rate Swap

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Gain (loss) recognized in other comprehensive income (loss)

 

$

63

 

 

$

(143

)

 

$

183

 

 

$

(424

)

Gain recognized in earnings (1)

 

$

28

 

 

$

82

 

 

$

58

 

 

$

163

 
(1)
Gain reclassified from accumulated other comprehensive income into earnings shown in interest expense.