Quarterly report [Sections 13 or 15(d)]

BORROWINGS (Tables)

v3.25.2
BORROWINGS (Tables)
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Schedule of Borrowings
Our borrowings as of June 30, 2025, and December 31, 2024, are summarized below (dollars in thousands):
  Carrying Value as of As of June 30, 2025
June 30, 2025 December 31, 2024
Stated Interest
Rates(1)
(Range; Wtd Avg)
 Maturity Dates
(Range; Wtd Avg)
Variable-rate revolving lines of credit $ 200  $ 3,600  6.28% 12/15/2033
Notes and bonds payable:
Fixed-rate notes payable $ 465,534  $ 493,363 
2.45%–6.97%; 3.70%
 11/27/2025–7/1/2051; Jan 2033
Fixed-rate bonds payable 32,808  32,946 
3.13%–4.57%; 3.85%
 7/24/2025–12/30/2030; Jan 2028
Total notes and bonds payable 498,342  526,309 
Debt issuance costs – notes and bonds payable (2,158) (2,387) N/A N/A
Notes and bonds payable, net $ 496,184  $ 523,922 
Total borrowings, net $ 496,384  $ 527,522 
(1)Where applicable, stated interest rates are before interest patronage (as described below).
The following table summarizes the pertinent terms of the MetLife Facility as of June 30, 2025 (dollars in thousands, except for footnotes):
Issuance Aggregate
Commitment		 Maturity
Dates		 Principal
Outstanding		   Interest Rate Terms  
Undrawn
Commitment(1)
MetLife Lines of Credit $ 75,000  12/15/2033 $ 200 
3M Term SOFR + 2.00%
(2)
 $ 74,800 
2020 MetLife Term Note 75,000 
(3)
 1/5/2030 36,254 
2.75%, fixed through 1/4/2030
(4)
 38,746 
2022 MetLife Term Note 100,000 
(3)
 1/5/2032 —  (4)

100,000 
Totals $ 250,000  $ 36,454  $ 213,546 
(1)Based on the properties that were pledged as collateral under the MetLife Facility, as of June 30, 2025, the maximum additional amount we could draw under the facility was approximately $110.0 million.
(2)The interest rate on the MetLife Lines of Credit is subject to a minimum annualized rate of 2.50%, plus an unused fee ranging from 0.10% to 0.20% on undrawn amounts (based on the balance drawn under each line of credit).
(3)If the aggregate commitments under the 2020 MetLife Term Note and the 2022 MetLife Term Note are not fully utilized by December 31, 2026, MetLife has no obligation to disburse the additional funds under either note.
(4)Interest rates on future disbursements under each of the 2020 MetLife Term Note and the 2022 MetLife Term Note will be based on prevailing market rates at the time of such disbursements. In addition, through December 31, 2026, the 2020 MetLife Term Note and the 2022 MetLife Term Note are each subject to an unused fee ranging from 0.10% to 0.20% on undrawn amounts (based on the balance drawn under the respective note).
During the six months ended June 30, 2025, we entered into a new loan agreement with MetLife, as summarized below (dollars in thousands):
Date of
Issuance		 Amount Maturity
Date		 Principal
Amortization		 Stated
Interest
Rate		 Interest Rate Terms
4/11/2025 $10,600
(1)
 2/15/2030 28.6 years 6.31% Fixed through 2/14/2028; variable thereafter
(1)The majority of proceeds from this loan were used to repay a $10.3 million maturing loan that bore interest at 3.85%.
Schedule of Aggregate Maturities
Scheduled principal payments of our aggregate notes and bonds payable as of June 30, 2025, for the succeeding years are as follows (dollars in thousands):
Period Scheduled Principal Payments
For the remaining six months ending December 31: 2025 $ 18,873 
(1)
For the fiscal years ending December 31: 2026 17,337 
2027 50,481 
2028 76,827 
2029 152,246 
2030 93,896 
Thereafter 88,682 
$ 498,342 
(1)Subsequent to June 30, 2025, we repaid a $10.4 million bond upon maturity. The bond bore interest at an annual rate of 4.45%.
Schedule of Borrowings by Type
We had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of June 30, 2025, and December 31, 2024 (dollars in thousands):
Period Number of Instruments Aggregate Notional Amount
As of June 30, 2025 4 $ 65,375 
As of December 31, 2024 4 67,067 
The following table presents the fair value of our interest rate swaps as well as their classification on the Condensed Consolidated Balance Sheets as of June 30, 2025, and December 31, 2024 (dollars in thousands):
Derivative Asset (Liability) Fair Value
Derivative Type Balance Sheet Location June 30, 2025 December 31, 2024
Derivatives Designated as Hedging Instruments:
Interest rate swaps Other assets, net $ 5,458  $ 7,632 
Total $ 5,458  $ 7,632 
The following table presents the amount of (loss) income recognized in comprehensive (loss) income within our condensed consolidated financial statements for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):
For the Three Months Ended June 30, For the Six Months Ended June 30,
2025 2024 2025 2024
Derivative in cash flow hedging relationship:
Interest rate swaps $ (856) $ (33) $ (2,174) $ 975 
Total $ (856) $ (33) $ (2,174) $ 975