v3.26.1
Debt Financing
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
DEBT FINANCING DEBT FINANCING
As of June 30, 2026 and December 31, 2025, the Company had approximately $2.1 billion and $2.4 billion of debt outstanding, respectively, with a weighted average years to maturity of 2.2 years and 2.6 years, respectively, and a weighted average interest rate of 3.78% and 4.03%, respectively. The following table describes the Company’s debt outstanding at June 30, 2026 and December 31, 2025 (in thousands, except interest rates):
DescriptionMaturity DateMaximum Capacity in Functional Currency
Weighted Average Effective Interest Rate as of June 30, 2026
Principal Outstanding at June 30, 2026Principal Outstanding at December 31, 2025
Fixed Rate Loans
Seller-financed debt7/1/2034N/A1.55%$6,192 $6,373 
Private placement note issuances7/2029-9/2032N/A5.16%412,874 419,024 
Total fixed rate loans$419,066 $425,397 
Variable Rate Loans
Floating rate secured mortgage debt9/2026-11/2030N/A3.40%(1)$934,767 $871,272 
JPMorgan Chase Credit Facility - Revolver3/10/2028$650,000 5.21%— 391,000 
JPMorgan Chase Credit Facility - Term Loan(s)3/10/2028$700,000 3.50%(2)700,000 700,000 
Total variable rate loans$1,634,767 $1,962,272 
Total Notes Payable$2,053,833 $2,387,669 
Total Principal Outstanding$2,053,833 $2,387,669 
Unamortized financing fees (3)
(13,107)(15,624)
Total$2,040,726 $2,372,045 
(1)As of June 30, 2026, the effective interest rates on our floating rate mortgage debt ranged from 1.75% to 5.58%. The amount of principal outstanding as of June 30, 2026 includes $875.6 million that has been effectively fixed for the full term of the facilities by effective interest rate cap agreements or interest rate swap agreements as economic hedges against the variability of future interest rates on the borrowing.
(2)As of June 30, 2026, the effective interest rates related to these loans were effectively capped as a result of the Company entering into interest rate cap agreements as economic hedges against the variability of the future interest rate on the borrowings.
(3)Deferred financing costs consist of direct costs incurred in obtaining debt financing. These costs are presented as a direct reduction from the related debt liability for permanent mortgages and presented as an asset for revolving credit arrangements. In total, deferred financing costs had a carrying value of $17.8 million and $21.9 million as of June 30, 2026 and December 31, 2025, respectively. These costs are amortized into interest expense on a straight-line basis, which approximates the effective interest method, over the terms of the obligations. Amortization of deferred financing costs were $2.0 million and $4.7 million for the three and six months ended June 30, 2026, and were $2.2 million and $3.5 million for the three and six months ended June 30, 2025, respectively, which is recorded to interest expense in the accompanying condensed consolidated statements of operations and comprehensive income (loss).

Financial Covenants

The Company’s mortgage agreements and other loan documents for the debt described in the table above contain customary events of default, with corresponding grace periods, including payment defaults, bankruptcy-related defaults, and customary covenants, including limitations on liens and indebtedness and maintenance of certain financial ratios. The Company is not aware of any instances of noncompliance with financial covenants on any of its loans as of June 30, 2026 or the date of this report.
Principal Payments on Debt

The Company is required to make the following principal payments on its outstanding notes payable for the period from July 1, 2026 through December 31, 2026, for each of the years ending December 31, 2027 through December 31, 2030 and for the period thereafter (in thousands).
Payments Due by Year
July 1, 2026 through December 31, 20262027202820292030Thereafter
Principal payments$139,310 $436,219 $777,402 $313,730 $303,766 $83,406