Notes Payable and Unsecured Credit Facilities

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Notes Payable and Unsecured Credit Facilities

5. Notes Payable and Unsecured Credit Facilities

The Company's outstanding debt, net of unamortized debt premium (discount) and debt issuance costs, consisted of the following as of the dates set forth below:

(in thousands)	Weighted Average Contractual Rate	Weighted Average Effective Rate	September 30, 2023		December 31, 2022
Notes payable:
Fixed rate mortgage loans	3.9%	4.1%	$	452,512		342,135
Variable rate mortgage loans (1)	4.1%	4.1%		287,922		136,246
Fixed rate unsecured debt	3.8%	4.0%		3,251,659		3,248,373
Total notes payable, net				3,992,093		3,726,754
Unsecured credit facilities:
$1.25 Billion Line of Credit (the "Line") (2)	6.3%	6.6%		77,000		—
Total unsecured credit facilities				77,000		—
Total debt outstanding			$	4,069,093		3,726,754

(1)As of September 30, 2023, 14 of these 16 variable rate loans, representing $283.0 million of debt in the aggregate, have interest rate swaps in place to mitigate interest rate fluctuation risk. Based on these swap agreements, the effective fixed rates of the 16 loans range from 2.5% to 6.7%.

(2)The Line is scheduled to mature on March 23, 2025. The Company has the option to extend the maturity for two additional six-month periods. Weighted average effective rate for the Line is calculated based on a fully drawn Line balance using the period end variable rate.

Scheduled principal payments and maturities on notes payable and unsecured credit facilities were as follows:

(in thousands)	September 30, 2023
Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities			Unsecured Maturities (1)			Total
2023 (2)	$	4,154		—			—			4,154
2024		12,934		133,809			250,000			396,743
2025		11,094		52,369			327,000			390,463
2026		11,426		134,850			200,000			346,276
2027		8,612		222,429			525,000			756,041
Beyond 5 Years		14,762		142,893			2,050,000			2,207,655
Unamortized debt premium/(discount) and issuance costs		—		(8,898	)		(23,341	)		(32,239	)
Total	$	62,982		677,452			3,328,659			4,069,093

(1)Includes unsecured public and private debt and unsecured credit facilities.

(2)Reflects scheduled principal payments and maturities for the remainder of the year.

In connection with the acquisition of UBP on August 18, 2023, the Company completed the following debt transactions:

•Assumed fixed rate debt of $130.0 million in the aggregate (including a mark to market debt discount of $13.6 million) that collectively encumbers 11 operating properties, and includes one unsecured note. This indebtedness has scheduled maturity dates ranging from November 2023 to June 2037, and accrue interest at rates ranging from 3.5% to 5.6% per annum.

•Assumed variable rate debt of $154.7 million in the aggregate (including a mark to market debt premium of $1.1 million) that collectively encumbers 9 operating properties. This indebtedness has interest rate swaps in place to mitigate rate fluctuation risk. Based on these swap agreements, the effective fixed rates range from 3.1% to 4.8% per annum. The scheduled maturity dates range from August 2024 to January 2032.

The Company was in compliance as of September 30, 2023, with all financial and other covenants under its unsecured public and private placement debt and unsecured credit facilities and expects to remain in compliance thereafter.