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Debt Obligations
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt Obligations Debt Obligations
Debt obligations consist of the following (dollars in thousands):
  June 30, 2026December 31, 2025
Mortgages payable$473,486 $475,697 
Junior subordinated notes37,400 37,400 
Credit facility — — 
Deferred financing costs (1)(4,341)(4,831)
Total debt obligations, net of deferred costs$506,545 $508,266 
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(1) Excludes $167 and $236 of deferred financing costs related to the credit facility which are reflected in other assets at June 30, 2026 and December 31, 2025, respectively.

Mortgages Payable

At June 30, 2026 and December 31, 2025, the weighted average interest rate on the Company's mortgage payables was 4.22% and 4.22%, and the weighted average remaining term to maturity is 5.9 years and 6.4 years, respectively. For the three months ended June 30, 2026 and 2025, interest expense, which includes amortization of deferred financing costs, was $5,368,000 and $5,023,000, respectively. For the six months ended June 30, 2026 and 2025, interest expense, which includes amortization of deferred financing costs, was $10,704,000 and $10,014,000, respectively.

In July 2026, the Company refinanced the maturing mortgage of $27,767,000 (bearing an interest rate of 3.73%) on Civic Center 2 - Southaven, MS with a new mortgage of $47,864,000; such new mortgage matures on August 1, 2036, bears a fixed interest rate of 5.38% and is interest only through maturity.

Credit Facility

The Company's credit facility with an affiliate of Valley National Bank ("VNB"), allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $40,000,000. The facility can be used to facilitate
Note 10 – Debt Obligations (continued)

the acquisition of multifamily properties, repay mortgage debt secured by multifamily properties and for operating expenses (i.e., working capital (including dividend payments)); provided that no more than $25,000,000 may be used for operating
expenses. The facility is secured by the cash available at VNB and the Company's pledge of the interests in the entities that own the properties, and matures in September 2027.

The interest rate on the credit facility, which adjusts monthly and is subject to a floor of 6.0%, equals one-month term SOFR plus 250 basis points. The interest rate in effect as of June 30, 2026 is 6.18%. There is an unused facility fee of 0.25% per annum on the total amount committed by VNB and unused by the Company. At June 30, 2026, the Company is in compliance in all material respects with its obligations under the facility.

At June 30, 2026 and December 31, 2025, there was no outstanding balance, respectively, on the facility. Interest expense for the three months ended June 30, 2026 and 2025, which includes amortization of deferred financing costs and unused fees, was $60,000 and $60,000, respectively. Interest expense for the six months ended June 30, 2026 and 2025, which includes amortization of deferred financing costs and unused fees, was $119,000 and $119,000, respectively. The remaining deferred financing costs of $167,000 and $236,000 are recorded as Other Assets on the Consolidated Balance Sheets at June 30, 2026 and December 31, 2025, respectively.

Junior Subordinated Notes

At June 30, 2026 and December 31, 2025, the outstanding principal balance of the Company's junior subordinated notes was $37,400,000, before deferred financing costs of $207,000 and $217,000, respectively. The interest rate on outstanding balance resets quarterly and is equal to three month term SOFR + 2.26%. The interest rate in effect at June 30, 2026 and 2025 was 5.93% and 6.54%, respectively.
The junior subordinated notes require interest only payments through the maturity date of April 30, 2036, at which time repayment of the outstanding principal and unpaid interest become due. Interest expense for the three months ended June 30, 2026 and 2025, which includes amortization of deferred financing costs, was $566,000 and $624,000, respectively. Interest expense for the six months ended June 30, 2026 and 2025, which includes amortization of deferred financing costs, was $1,130,000 and $1,250,000, respectively.