Mortgage loans payable, net consisted of the following as of June 30, 2026 and December 31, 2025 (dollars in thousands):


	June 30, 2026			December 31, 2025
Fixed-rate debt (84 and 85 loans as of June 30, 2026 and December 31, 2025, respectively)	$	890,070		$	985,565
Less: deferred financing costs, net		(8,293	)		(9,214	)
Less: discount		(8,425	)		(9,426	)
Mortgage loans payable, net	$	873,352		$	966,925

Based on interest rates in effect as of both June 30, 2026 and December 31, 2025, effective interest rates on mortgage loans payable ranged from 2.21% to 5.99% per annum, with a weighted average effective interest rate of 3.84% and 3.73%, respectively. We are required by the terms of certain loan documents to meet certain reporting requirements and covenants, such as net worth ratios, fixed charge coverage ratios and leverage ratios.

The following table reflects the changes in the carrying amount of mortgage loans payable, net for the periods presented below (in thousands):


	Six Months Ended June 30,
	2026			2025
Beginning balance	$	966,925		$	982,071
Additions:
Borrowings under mortgage loans payable		—			30,000
Amortization of deferred financing costs		920			869
Amortization of discount/premium on mortgage loans payable, net		1,001			2,291
Deductions:
Scheduled principal payments on mortgage loans payable		(95,494	)		(15,454	)
Payoff of mortgage loans payable due to dispositions of real estate investments		—			(15,254	)
Deferred financing costs		—			(1,013	)
Ending balance	$	873,352		$	983,510

Amortization of deferred financing costs and amortization of discount/premium on mortgage loans payable is included in interest expense in our accompanying condensed consolidated statements of operations and comprehensive income. For both the three and six months ended June 30, 2026, we did not incur any loss on the extinguishment of mortgage loans payable. For both the three and six months ended June 30, 2025, we incurred a loss on early extinguishment of a mortgage loan payable of $1,273,000, which is recorded as an increase to interest expense in our accompanying condensed consolidated statements of operations and comprehensive income. Such loss was related to the payoff of a mortgage loan payable due to the disposition of the underlying real estate investment in May 2025.

As of June 30, 2026, the principal payments due on our mortgage loans payable for the remaining six months ending December 31, 2026 and for each of the next four years ending December 31, and thereafter were as follows (in thousands):


Year	Amount
2026	$	64,192
2027		56,182
2028		139,740
2029		16,963
2030		44,732
Thereafter		568,261
Total	$	890,070