Annual report [Section 13 and 15(d), not S-K Item 405]

BORROWINGS (Tables)

v3.25.4
BORROWINGS (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Borrowings
Our borrowings as of December 31, 2025 and 2024 are summarized below (dollars in thousands):
  Carrying Value as of As of December 31, 2025
December 31, 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  5.96% 12/15/2033
Notes and bonds payable:
Fixed-rate notes payable $ 453,040  $ 493,363 
2.45%–6.97%; 3.70%
10/17/2026–7/1/2051; Nov 2032
Fixed-rate bonds payable 22,312  32,946 
3.13%–4.57%; 3.57%
3/13/2028–12/30/2030; March 2029
Total notes and bonds payable 475,352  526,309 
Debt issuance costs – notes and bonds payable (1,917) (2,387) N/A N/A
Notes and bonds payable, net $ 473,435  $ 523,922 
Total borrowings, net $ 473,635  $ 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 December 31, 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 SOFR + 2.00%
(2)
 $ 74,800 
2020 MetLife Term Note 75,000 
(3)
 1/5/2030 35,620 
2.75%, fixed through 1/4/2030
(4)
 39,380 
2022 MetLife Term Note 100,000 
(3)
 1/5/2032 — 
(4)
 100,000 
Totals $ 250,000  $ 35,820  $ 214,180 
(1)Based on the properties that were pledged as collateral under the MetLife Facility, as of December 31, 2025, the maximum additional amount we could draw under the facility was approximately $76.9 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 year ended December 31, 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%.
The following table provides certain information about interest patronage related to interest accrued on the Farm Credit Notes Payable during the years ended December 31, 2024 and 2023 (dollars in thousands):
Amount Reduction in Interest Rates
Received
(basis points)(1)
2024 Interest Patronage(2)
$ 1,819  101
2023 Interest Patronage(3)
1,993  101
(1)Presented as a reduction in the stated interest rates on such borrowings, shown on a weighted-average basis.
(2)Relates to interest accrued on the Farm Credit Notes Payable during calendar year 2024. Of this amount, approximately $0.1 million was recorded in the third quarter of 2024, and approximately $1.7 million was recorded in the first quarter of 2025.
(3)Relates to interest accrued on the Farm Credit Notes Payable during calendar year 2023. Of this amount, approximately $0.1 million was recorded in the third quarter of 2023, and approximately $1.9 million was recorded in the first quarter of 2024.
Schedule of Aggregate Maturities
Scheduled principal payments of our aggregate notes and bonds payable as of December 31, 2025, for the succeeding years are as follows (dollars in thousands):
Period Scheduled Principal Payments
For the fiscal years ending December 31: 2026 $ 17,200 
2027 50,338 
2028 76,678 
2029 152,092 
2030 93,729 
Thereafter 85,315 
$ 475,352 
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 December 31, 2025 and 2024 (dollars in thousands):
Period Number of Instruments Aggregate Notional Amount
As of December 31, 2025 4 $ 63,904 
As of December 31, 2024 4 67,067 
The following table presents the fair value of our interest rate swaps and their classification on the Consolidated Balance Sheets as of December 31, 2025 and 2024 (dollars in thousands):
Derivative Asset (Liability) Fair Value
Derivative Type Balance Sheet Location December 31, 2025 December 31, 2024
Derivatives Designated as Hedging Instruments:
Interest rate swaps Other assets, net $ 4,896  $ 7,632 
Total $ 4,896  $ 7,632 
The following table presents the amount of income (loss) recognized in comprehensive income within our consolidated financial statements for the years ended December 31, 2025, 2024, and 2023 (dollars in thousands):
For the Years Ended
December 31, 2025 December 31, 2024 December 31, 2023
Derivative in cash flow hedging relationship:
Interest rate swaps $ (2,736) $ 266  $ (1,641)
Total $ (2,736) $ 266  $ (1,641)