Debt |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Debt Total debt outstanding as of June 30, 2026 and December 31, 2025 was as follows:
As of June 30, 2026, the Company’s outstanding mortgage indebtedness included 12 mortgage loans with various maturities through January 2036. The following table presents the principal amount of debt maturing each year, including amortization of principal based on debt outstanding at June 30, 2026, and the weighted average interest rates for the maturing debt in each specified period:
The mortgage loan on Buckhorn Plaza, in the amount of $8,791, matures November 6, 2026. The Company intends to sell this investment property prior to this upcoming maturity date. The mortgage loan on Market at Hilliard, in the amount of $13,564, matures December 6, 2026. The Company expects to refinance this mortgage loan prior to this upcoming maturity date. On April 30, 2026, we obtained a loan secured by a mortgage encumbering Sherman Plaza, one of our retail investment properties, located in Evanston, Illinois. The loan has a principal balance of $25,000 and matures on April 30, 2029, with two 12-month extension options, provided certain criteria are met at the time of each extension. The mortgage requires interest only payments through maturity and principal and interest payments during the extension periods. Simultaneously with the loan closing, we entered into a swap arrangement to fix the interest rate at 5.90% for the term of the loan. The mortgage loan encumbering the Trimble office investment property currently leased by Veeco Instruments, Inc. matured on April 6, 2025. This loan had a principal amount of $20,000, $4,000 of which was guaranteed by Highlands. The Company exercised the 12-month extension option that was available under the original loan documents, and paid an extension fee equal to $20, to extend the maturity date on the loan to April 6, 2026. The swap arrangement that the Company entered into at the time we closed the loan fixed the interest rate at 5.86% for the term of the loan, including the extended maturity date. In September 2025, the Company completed a long-term extension on the Trimble mortgage debt. The principal amount remains at $20,000 and the payment guarantee has been removed. The loan now matures on April 6, 2029. Additionally, we completed an extension on the required fixed rate swap agreement. The swap agreement fixes the interest rate at 5.71% for the term of the loan. In conjunction with this extension, the Company paid a fee of $120 to the lender. The Company’s ability to pay off the mortgages when they become due is dependent upon the Company’s ability either to refinance the related mortgage debt or to sell the related investment property. With respect to each mortgage loan, if the applicable wholly-owned property-owning subsidiary is unable to refinance or sell the related investment property, or in the event that the estimated value is less than the mortgage balance, the applicable wholly-owned property-owning subsidiary may, if appropriate, satisfy a mortgage obligation by transferring title of the investment property to the lender or permitting a lender to foreclose. There are no payment guarantees in place on mortgage loans as of June 30, 2026 and December 31, 2025. However, Highlands or its subsidiaries may act as guarantor under customary, non-recourse, carve-out guarantees in connection with obtaining mortgage loans on certain of our investment properties. Some of the mortgage loans require compliance with certain covenants, such as debt service coverage ratios and minimum net worth requirements. As of June 30, 2026 and December 31, 2025, the Company was in compliance with such covenants.
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