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MORTGAGE AND OTHER INDEBTEDNESS (Tables) | 12 Months Ended
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Dec. 31, 2023
Debt Disclosure [Abstract] |
Schedule of Indebtedness | The following table summarizes the Company’s indebtedness as of December 31, 2023 and 2022 (in thousands):
| December 31,
| 2023 |  | 2022
Mortgages payable | $ | 153,306 |  |  | $ | 233,621 |
Senior unsecured notes | 1,829,635 |  |  | 1,924,635 |
Unsecured term loans | 820,000 |  |  | 820,000 |
Unsecured revolving line of credit | — |  |  | — |
| 2,802,941 |  |  | 2,978,256 |
Unamortized discounts and premiums, net | 35,765 |  |  | 44,362 |
Unamortized debt issuance costs, net | (9,504) |  |  | (12,319) |
Mortgage and other indebtedness, net | $ | 2,829,202 |  |  | $ | 3,010,299 |
The following table summarizes the Company’s senior unsecured notes and exchangeable senior notes (dollars in thousands):
|  |  | December 31, 2023 |  | December 31, 2022
| Maturity Date |  | Balance |  | Interest Rate |  | Balance |  | Interest Rate
Senior notes – 4.23% due 2023 | September 10, 2023 |  | $ | — |  |  | — | % |  | $ | 95,000 |  |  | 4.23 | %
Senior notes – 4.58% due 2024 | June 30, 2024 |  | 149,635 |  |  | 4.58 | % |  | 149,635 |  |  | 4.58 | %
Senior notes – 4.00% due 2025 | March 15, 2025 |  | 350,000 |  |  | 4.00 | % |  | 350,000 |  |  | 4.00 | %
Senior notes – SOFR + 3.65% due 2025(1) | September 10, 2025 |  | 80,000 |  |  | 9.27 | % |  | 80,000 |  |  | 8.41 | %
Senior notes – 4.08% due 2026 | September 30, 2026 |  | 100,000 |  |  | 4.08 | % |  | 100,000 |  |  | 4.08 | %
Senior notes – 4.00% due 2026 | October 1, 2026 |  | 300,000 |  |  | 4.00 | % |  | 300,000 |  |  | 4.00 | %
Senior exchangeable notes – 0.75% due 2027 | April 1, 2027 |  | 175,000 |  |  | 0.75 | % |  | 175,000 |  |  | 0.75 | %
Senior notes – SOFR + 3.75% due 2027(2) | September 10, 2027 |  | 75,000 |  |  | 9.37 | % |  | 75,000 |  |  | 8.51 | %
Senior notes – 4.24% due 2028 | December 28, 2028 |  | 100,000 |  |  | 4.24 | % |  | 100,000 |  |  | 4.24 | %
Senior notes – 4.82% due 2029 | June 28, 2029 |  | 100,000 |  |  | 4.82 | % |  | 100,000 |  |  | 4.82 | %
Senior notes – 4.75% due 2030 | September 15, 2030 |  | 400,000 |  |  | 4.75 | % |  | 400,000 |  |  | 4.75 | %
Total senior unsecured notes |  |  | $ | 1,829,635 |  |  |  |  | $ | 1,924,635 |  |  |
(1)On July 1, 2023, the fallback rate in the derivative agreement went into effect. As of December 31, 2023, $80,000 of 4.47% senior unsecured notes due 2025 has been swapped to a variable rate of three-month Secured Overnight Financing Rate (“SOFR”) plus 3.65% through September 10, 2025. As of December 31, 2022, $80,000 of 4.47% senior unsecured notes due 2025 had been swapped to a variable rate of three-month London Interbank Offered Rate (“LIBOR”) plus 3.65%. (2)On July 1, 2023, the fallback rate in the derivative agreement went into effect. As of December 31, 2023, $75,000 of 4.57% senior unsecured notes due 2027 has been swapped to a variable rate of three-month SOFR plus 3.75% through September 10, 2025. As of December 31, 2022, $75,000 of 4.57% senior unsecured notes due 2027 had been swapped to a variable rate of three-month LIBOR plus 3.75%. Unsecured Term Loans and Revolving Line of Credit The following table summarizes the Company’s term loans and revolving line of credit (dollars in thousands):
|  |  | December 31, 2023 |  | December 31, 2022
| Maturity Date |  | Balance |  | Interest Rate |  | Balance |  | Interest Rate
Unsecured term loan due 2024 – fixed rate(1) | July 17, 2024 |  | $ | 120,000 |  |  | 2.68 | % |  | $ | 120,000 |  |  | 2.68 | %
Unsecured term loan due 2025 – fixed rate(2) | October 24, 2025 |  | 250,000 |  |  | 5.09 | % |  | 250,000 |  |  | 5.09 | %
Unsecured term loan due 2026 – fixed rate(3) | July 17, 2026 |  | 150,000 |  |  | 2.73 | % |  | 150,000 |  |  | 2.73 | %
Unsecured term loan due 2029 – fixed rate(4) | July 29, 2029 |  | 300,000 |  |  | 3.82 | % |  | 300,000 |  |  | 4.05 | %
Total unsecured term loans |  |  | $ | 820,000 |  |  |  |  | $ | 820,000 |  |  |
Unsecured credit facility revolving line of credit – variable rate(5) | January 8, 2026 |  | $ | — |  |  | 6.58 | % |  | $ | — |  |  | 5.56 | %
(1)$120,000 of SOFR-based variable rate debt has been swapped to a fixed rate of 1.58% plus a credit spread based on a ratings grid ranging from 0.80% to 1.65% through July 17, 2024. The applicable credit spread was 1.10% as of December 31, 2023 and 2022. (2)$250,000 of SOFR-based variable rate debt has been swapped to a fixed rate of 5.09% through October 24, 2025. The maturity date of the term loan may be extended for up to three additional periods of one year each at the Operating Partnership’s option, subject to certain conditions. (3)$150,000 of SOFR-based variable rate debt has been swapped to a fixed rate of 1.68% plus a credit spread based on a ratings grid ranging from 0.75% to 1.60% through July 17, 2026. The applicable credit spread was 1.05% as of December 31, 2023 and 2022. (4)As of December 31, 2023, $300,000 of SOFR-based variable rate debt has been swapped to a fixed rate of 2.47% plus a credit spread based on a ratings grid ranging from 1.15% to 2.20% through August 1, 2025. As of December 31, 2022, $300,000 of SOFR-based variable rate debt had been swapped to a fixed rate of 2.70% plus a credit spread based on a ratings grid ranging from 1.15% to 2.20% through November 22, 2023. The applicable credit spread was 1.35% as of December 31, 2023 and 2022. (5)The revolving line of credit has two six-month extension options that the Company can exercise, at its election, subject to (i) customary representations and warranties, including, but not limited to, the absence of an event of default as defined in the unsecured credit agreement and (ii) payment of an extension fee equal to 0.075% of the revolving line of credit capacity.
Schedule of Weighted Average Interest Rates and Maturities | Consolidated indebtedness, including weighted average interest rates and weighted average maturities as of December 31, 2023, considering the impact of interest rate swaps, is summarized below (dollars in thousands):
| Amount Outstanding |  | Ratio |  | Weighted Average Interest Rate |  | Weighted Average Years to Maturity
Fixed rate debt(1) | $ | 2,630,941 |  |  | 94 | % |  | 3.98 | % |  | 3.6
Variable rate debt(2) | 172,000 |  |  | 6 | % |  | 9.15 | % |  | 2.7
Debt discounts, premiums and issuance costs, net | 26,261 |  |  | N/A |  | N/A |  | N/A
Mortgage and other indebtedness, net | $ | 2,829,202 |  |  | 100 | % |  | 4.30 | % |  | 3.6
(1)Fixed rate debt includes the portion of variable rate debt that has been hedged by interest rate swaps. As of December 31, 2023, $820.0 million in variable rate debt is hedged to a fixed rate for a weighted average of 1.7 years. (2)Variable rate debt includes the portion of fixed rate debt that has been hedged by interest rate swaps. As of December 31, 2023, $155.0 million in fixed rate debt is hedged to a floating rate for a weighted average of 1.7 years.
Schedule of Mortgages Payable | The following table summarizes the Company’s mortgages payable (dollars in thousands):
| December 31, 2023 |  | December 31, 2022
| Balance |  | Weighted Average Interest Rate |  | Weighted Average Years to Maturity |  | Balance |  | Weighted Average Interest Rate |  | Weighted Average Years to Maturity
Fixed rate mortgages payable(1) | $ | 136,306 |  |  | 5.09 | % |  | 8.1 |  | $ | 205,328 |  |  | 3.98 | % |  | 1.4
Variable rate mortgage payable(2) | 17,000 |  |  | 7.59 | % |  | 2.6 |  | 28,293 |  |  | 5.96 | % |  | 0.6
Total mortgages payable | $ | 153,306 |  |  |  |  |  |  | $ | 233,621 |  |  |  |  |
(1)The fixed rate mortgages had interest rates ranging from 3.75% to 5.73% as of December 31, 2023 and 2022. (2)In July 2023, the interest rate on the variable rate mortgage increased to Bloomberg Short Term Bank Yield Index (“BSBY”) plus 215 basis points from BSBY plus 160 basis points in conjunction with the July 2023 amendment of the loan agreement. The one-month BSBY rate was 5.44% and 4.36% as of December 31, 2023 and 2022, respectively.
Schedule of Revolving Credit Facility and Term Loans | The following table summarizes the key terms of the Revolving Facility as of December 31, 2023 (dollars in thousands):
|  |  |  |  |  |  |  | Leverage-Based Pricing |  | Investment Grade Pricing |  |
Credit Agreement |  | Maturity Date |  | Extension Option |  | Extension Fee |  | Credit Spread |  | Facility Fee |  | Credit Spread |  | Facility Fee |  | SOFR Adjustment
$1,100,000 unsecured revolving line of credit |  | 1/8/2026 |  | 2 six-month |  | 0.075% |  | 1.05%–1.50% |  | 0.15%–0.30% |  | 0.725%–1.40% |  | 0.125%–0.30% |  | 0.10%
The following table summarizes the key terms of the unsecured term loans as of December 31, 2023 (dollars in thousands):
Unsecured Term Loans |  | Maturity Date |  | Leverage-Based Pricing Credit Spread |  | Investment Grade Pricing Credit Spread |  | SOFR Adjustment
$120,000 unsecured term loan due 2024 |  | 7/17/2024 |  | 1.20% – 1.70% |  | 0.80% – 1.65% |  | 0.10%
$250,000 unsecured term loan due 2025 |  | 10/24/2025(1) |  | 2.00% – 2.55% |  | 2.00% – 2.50% |  | 0.10%
$150,000 unsecured term loan due 2026 |  | 7/17/2026 |  | 1.20% – 1.70% |  | 0.75% – 1.60% |  | 0.10%
$300,000 unsecured term loan due 2029 |  | 7/29/2029 |  | N/A |  | 1.15% – 2.20% |  | 0.10%
(1)The maturity date may be extended for up to three additional periods of one year each at the Operating Partnership’s option, subject to certain conditions.
Schedule of Deferred Cost Amortization | The amounts of such amortization included in the accompanying consolidated statements of operations and comprehensive income are as follows (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Amortization of deferred leasing costs, lease intangibles and other | $ | 107,542 |  |  | $ | 150,245 |  |  | $ | 45,423 |
Amortization of above-market lease intangibles | $ | 12,007 |  |  | $ | 13,562 |  |  | $ | 3,483 |
The following amounts of amortization of debt issuance costs are included as a component of “Interest expense” in the accompanying consolidated statements of operations and comprehensive income (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Amortization of debt issuance costs | $ | 3,609 |  |  | $ | 3,163 |  |  | $ | 2,681 |
Schedule of Maturities of Long-term Debt | The following table summarizes the scheduled maturities and principal amortization of the Company’s indebtedness as of December 31, 2023 (in thousands):
| Secured Debt |  |  |  |
| Scheduled Principal Payments |  | Term Maturities |  | Unsecured Debt |  | Total
2024 | $ | 5,121 |  |  | $ | — |  |  | $ | 269,635 |  |  | $ | 274,756 |
2025 | 5,248 |  |  | — |  |  | 680,000 |  |  | 685,248 |
2026 | 4,581 |  |  | 10,600 |  |  | 550,000 |  |  | 565,181 |
2027 | 3,120 |  |  | — |  |  | 250,000 |  |  | 253,120 |
2028 | 3,757 |  |  | — |  |  | 100,000 |  |  | 103,757 |
Thereafter | 28,091 |  |  | 92,788 |  |  | 800,000 |  |  | 920,879 |
| $ | 49,918 |  |  | $ | 103,388 |  |  | $ | 2,649,635 |  |  | $ | 2,802,941 |
Debt discounts, premiums and issuance costs, net |  |  |  |  |  | 26,261 |
Mortgage and other indebtedness, net |  |  |  |  |  |  | $ | 2,829,202 |

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