Unsecured and Secured Indebtedness

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Unsecured and Secured Indebtedness

7.Unsecured and Secured Indebtedness

The following table discloses certain information regarding the Company’s unsecured and secured indebtedness (in millions):

	Carrying Value at December 31,						Interest Rate(A) at December 31,		Maturity Date at
	2023			2022			2023	2022	December 31, 2023
Unsecured indebtedness:
Senior notes(B)	$	1,307.1		$	1,460.0		3.625%–4.700%	3.375%–4.700%	February 2025 – June 2027
Senior notes – discount, net		(1.4	)		(2.3	)
Net unamortized debt issuance costs		(2.5	)		(3.8	)
Total Senior Notes	$	1,303.2		$	1,453.9
Term Loan	$	200.0		$	200.0		4.0% (C)	4.0% (C)	June 2027
Net unamortized debt issuance costs		(1.1	)		(1.5	)
Total Term Loan	$	198.9		$	198.5
Secured indebtedness:
Mortgage Indebtedness – Fixed Rate	$	125.9		$	54.9		6.2%	4.5%	February 2025  – November 2028
Net unamortized debt issuance costs		(1.7	)		(0.3	)
Total Mortgage Indebtedness	$	124.2		$	54.6

(A)The interest rates reflected above for the senior notes represent the range of the coupon rate of the notes outstanding. All other interest rates presented are a weighted average of the outstanding debt. Interest rate on variable-rate debt was calculated using the base rate and spreads effective December 31, 2023 and 2022.

(B)Effective interest rates ranged from 3.8% to 4.8% as of December 31, 2023 and from 3.5% to 4.8% as of December 31, 2022.

(C)Reflects the utilization of a swap, which caps the variable-rate (SOFR) interest rate at 2.75%, plus a 10-basis point credit spread adjustment plus the applicable margin (0.95% at both December 31, 2023 and 2022), which is based on the Company’s long-term unsecured debt rating as described below.

Senior Notes

The Company’s various fixed-rate senior notes have interest coupon rates that averaged 4.2% and 4.1% per annum at December 31, 2023 and 2022, respectively. The senior notes may be redeemed prior to maturity based upon a yield maintenance calculation (Note 8). The fixed-rate senior notes were issued pursuant to indentures that contain certain covenants, including limitations on incurrence of debt, maintenance of unencumbered real estate assets and debt service coverage. The covenants also provide that the cumulative dividends declared or paid from December 31, 1993, through the end of the current period cannot exceed Funds From Operations (as defined in the agreement) plus an additional $20.0 million for the same period unless required to maintain REIT status. Interest is paid semiannually in arrears. At December 31, 2023 and 2022, the Company was in compliance with all of the financial covenants under the indentures.

Term Loan

As of December 31, 2023 and 2022, the Company’s Term Loan (as defined below) had outstanding borrowings of $200.0 million, all of which have been converted to a fixed interest rate of 3.8% through the utilization of a swap (Note 8).

In 2022, the Company amended and restated its $100 million unsecured term loan with a syndicate of financial institutions and Wells Fargo Bank, National Association, as administrative agent (the “Term Loan”) to, among other things, (i) modify the financial covenants and certain other provisions contained therein in a manner consistent with the amendments made to the Revolving Credit Facility, (ii) extend the maturity date to June 2027, (iii) add a $100 million delayed draw feature (that was drawn upon in June 2022) and (iv) change the interest rate benchmark from LIBOR to SOFR. The Term Loan bears interest at variable rates equal to (i) the SOFR rate plus a 10-basis point credit spread adjustment plus an applicable margin (0.95% at December 31, 2023) or (ii) the alternative base rate plus an applicable margin (0.0% at December 31, 2023). The applicable margins vary depending on the Company’s long-term senior unsecured debt ratings from Moody’s, S&P and Fitch (or their respective successors). In August 2022, the variable-rate (SOFR) component of the interest rate applicable to $200 million of the Term Loan was converted to a fixed rate of 2.75% through the loan's maturity date. The Company may increase the principal amount of the Term Loan in the future to up to $800 million in the aggregate provided that existing or new lenders are identified to provide additional loan commitments and subject to other customary conditions precedent. The Term Loan also features a sustainability-linked pricing component whereby the applicable interest rate margin can be adjusted by one to two basis points if the Company meets certain sustainability performance

targets. The Company is required to comply with covenants similar to those contained in the Revolving Credit Facility. The Company was in compliance with these financial covenants at December 31, 2023 and 2022.

Mortgages Payable

Mortgages payable, collateralized by real estate with a net book value of $119.9 million at December 31, 2023, and related tenant leases are generally due in monthly installments of principal and/or interest. Fixed contractual interest rates on mortgages payable range from approximately 3.8% to 6.7% per annum.

Scheduled Principal Repayments

The scheduled principal repayments of the Revolving Credit Facility ($0 at December 31, 2023, Note 6) and unsecured and secured indebtedness, excluding extension options, as of December 31, 2023, were as follows (in thousands):

Year	Amount
2024	$	684
2025		483,508
2026		401,003
2027		651,581
2028		94,633
		1,631,409
Unamortized fair market value of assumed debt		201
Net unamortized debt issuance costs		(5,335	)
Total indebtedness	$	1,626,275

Total gross fees paid by the Company for its revolving credit facilities and term loans in 2023, 2022 and 2021 aggregated $2.1 million, $2.2 million and $2.1 million, respectively.