v3.26.3
Debt
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Debt Disclosure Debt
The following table summarizes the Company’s outstanding indebtedness, including borrowings under the Company’s unsecured credit facility, unsecured term loans, unsecured notes, and mortgage note as of September 30, 2026 and December 31, 2025.

Principal Outstanding
Indebtedness (dollars in thousands)September 30, 2026December 31, 2025
Weighted Average Interest Rate(1)
    
Weighted Average Years(2) 
Unsecured credit facility$463,000 $262,000 
Term SOFR + 0.725%
2.9
Unsecured term loans1,025,000 1,025,000 3.54 %3.6
Unsecured notes1,925,000 1,975,000 4.84 %

4.8
Mortgage note3,927 4,099 3.71 %13.0
Total / weighted average
$3,416,927 $3,266,099 4.42 %4.2
(1)Interest rate as of September 30, 2026. At September 30, 2026, the one-month Term Secured Overnight Financing Rate (“Term SOFR”) was 3.9125%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any
unamortized fair market value premiums or discounts. The current interest rate includes the impact of interest rate swaps, which effectively fix the interest rate on certain variable rate debt.
(2)The weighted average years represents the remaining maturity in years on the principal outstanding as of September 30, 2026, and assumes that any extension options that are exercisable at the discretion of the Company, subject to certain terms and conditions, have been exercised.

The aggregate undrawn nominal commitment on the unsecured credit facility as of September 30, 2026 was approximately $533.8 million, including issued letters of credit. The Company’s actual borrowing capacity at any given point in time may be less or restricted to a maximum amount based on the Company’s debt covenant compliance. Total accrued interest for the Company’s indebtedness was approximately $29.6 million and $11.9 million as of September 30, 2026 and December 31, 2025, respectively, and is included in accounts payable, accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets.

The following table summarizes the costs included in interest expense related to the Company’s debt arrangements on the accompanying Consolidated Statement of Operations for the three and nine months ended September 30, 2026 and 2025.

Three months ended September 30,Nine months ended September 30,
Costs Included in Interest Expense (in thousands)2026202520262025
Amortization of deferred financing fees and debt issuance costs and fair market value discount$1,427 $1,406 $4,166 $4,044 
Facility, unused, and other fees$444 $440 $1,318 $1,314 

On July 16, 2026, the Company entered into an amended and restated loan agreement (the “Amended Term Loan Agreement”) with Wells Fargo Bank, National Association, and the other lenders named therein, to amend and restate the Company’s $150.0 million unsecured term loan that was set to mature on March 15, 2027 (the “Unsecured Term Loan A”). Borrowings under the Amended Unsecured Term Loan A (as defined below), at the Company’s election, bear interest based on a Base Rate, Term SOFR, or Daily Simple SOFR (each as defined in the Amended Term Loan Agreement), plus an applicable spread based on the Company’s debt rating and leverage ratio (each as defined in the Amended Term Loan Agreement). The Company entered into the Amended Term Loan Agreement to (i) combine the Unsecured Term Loan A and the Company’s $200.0 million unsecured term loan that was set to mature on March 23, 2029, into one senior unsecured term loan in the aggregate principal amount of $350.0 million (the “Amended Unsecured Term Loan A”), (ii) extend the maturity date to January 16, 2032 and (iii) reduce, by five basis points (but not below zero), the applicable spread based on the Company’s debt rating and leverage ratio. In connection with the Amended Term Loan Agreement, the Company incurred approximately $1.4 million in costs which have been deferred and will amortize through the maturity date of January 16, 2032. The Company also incurred approximately $1.5 million of modification expenses which were recognized in debt extinguishment and modification expenses in the accompanying Consolidated Statements of Operations.

On July 16, 2026, the Company entered into amendments (the “Amendments”) to each of the Company’s unsecured credit facility, $300.0 million unsecured term loan maturing March 14, 2031 (the “Unsecured Term Loan G”), $187.5 million unsecured term loan maturing January 25, 2028 (the “Unsecured Term Loan H”), and $187.5 million unsecured term loan maturing January 25, 2028 (the “Unsecured Term Loan I”). Borrowings under the unsecured credit facility and the Unsecured Term Loans G, H, and I, at the Company’s election, bear interest based on a Base Rate, Term SOFR, or Daily Simple SOFR (each as defined in the applicable loan agreement, as amended), plus an applicable spread based on the Company’s debt rating and leverage ratio (each as defined in the applicable loan agreement, as amended). The Company entered into the Amendments to reduce, by five basis points (but not below zero), the applicable spread based on the Company’s debt rating and leverage ratio. The other material terms of each of the unsecured credit facility and the Unsecured Term Loans G, H, and I remain unchanged. In connection with the Amendments, the Company incurred approximately $0.6 million in costs which have been deferred and will amortize through the respective maturity dates. The Company also incurred approximately $0.1 million of modification expenses which were recognized in debt extinguishment and modification expenses in the accompanying Consolidated Statements of Operations.

On July 1, 2026, the Company redeemed in full at maturity $50.0 million in aggregate principal amount of unsecured notes.

Financial Covenant Considerations

The Company was in compliance with applicable restrictions and financial and other covenants as of September 30, 2026 and December 31, 2025 related to its unsecured credit facility, unsecured term loans, unsecured notes, and mortgage note. The real estate net book value of the property that is collateral for the Company’s debt arrangements was approximately $6.8 million and $7.0 million at September 30, 2026 and December 31, 2025, respectively, and is limited to senior, property-level secured debt financing arrangements.
Fair Value of Debt

The following table summarizes the aggregate principal amount outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of September 30, 2026 and December 31, 2025.

September 30, 2026December 31, 2025
Indebtedness (in thousands)Principal OutstandingFair ValuePrincipal OutstandingFair Value
Unsecured credit facility$463,000 $463,000 $262,000 $262,000 
Unsecured term loans1,025,000 1,025,000 1,025,000 1,025,000 
Unsecured notes1,925,000 1,799,393 1,975,000 1,937,338 
Mortgage note3,927 2,898 4,099 3,306 
Total principal amount3,416,927 $3,290,291 3,266,099 $3,227,644 
Unamortized fair market value discount(113)(119)
Total unamortized deferred financing fees and debt issuance costs (11,303)(11,665)
Total carrying value$3,405,511 $3,254,315 

The applicable fair value guidance establishes a three tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair value of the Company’s debt is based on Level 3 inputs.