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Long-Term Debt | 12 Months Ended
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Dec. 31, 2024
Long-Term Debt, Unclassified [Abstract] |
Long-Term Debt | Debt Debt at December 31, 2024 and 2023 consists of the following (in thousands):
| 2024 |  | 2023 |
Senior unsecured notes payable, 4.35%, paid in full on August 22, 2024 (1) | $ | — |  |  | $ | 136,637 |  |
Senior unsecured notes payable, 4.50%, due April 1, 2025 (2) | 300,000 |  |  | 300,000 |  |
Senior unsecured notes payable, 4.56%, due August 22, 2026 (3) | 179,597 |  |  | 179,597 |  |
Senior unsecured notes payable, 4.75%, due December 15, 2026 (2) | 450,000 |  |  | 450,000 |  |
Senior unsecured notes payable, 4.50%, due June 1, 2027 (2) | 450,000 |  |  | 450,000 |  |
Senior unsecured notes payable, 4.95%, due April 15, 2028 (2) | 400,000 |  |  | 400,000 |  |
Unsecured revolving variable rate credit facility, SOFR + 1.15%, due October 2, 2028 (4) | 175,000 |  |  | — |  |
Senior unsecured notes payable, 3.75%, due August 15, 2029 (2) | 500,000 |  |  | 500,000 |  |
Senior unsecured notes payable, 3.60%, due November 15, 2031 (2) | 400,000 |  |  | 400,000 |  |
Bonds payable, variable rate, fixed at 2.53% through September 30, 2026, due August 1, 2047 (5) | 24,995 |  |  | 24,995 |  |
Less: deferred financing costs, net | (19,134) |  |  | (25,134) |  |
Total | $ | 2,860,458 |  |  | $ | 2,816,095 |  |
(1) On August 22, 2024, the Company repaid its $136.6 million Series A unsecured private placement notes due 2024, using funds available under its $1.0 billion senior unsecured revolving credit facility. (2) These notes contain various covenants, including: (i) a limitation on incurrence of any debt that would cause the ratio of the Company’s debt to adjusted total assets to exceed 60%; (ii) a limitation on incurrence of any secured debt that would cause the ratio of the Company’s secured debt to adjusted total assets to exceed 40%; (iii) a limitation on incurrence of any debt that would cause the Company’s debt service coverage ratio to be less than 1.5 times; and (iv) the maintenance at all times of the Company's total unencumbered assets such that they are not less than 150% of the Company’s outstanding unsecured debt. (3) The amended Note Purchase Agreement, which governs the private placement notes, contains certain financial and other covenants that generally conform to the Company's unsecured revolving credit facility. (4) At December 31, 2024, the Company had $175.0 million balance outstanding under its $1.0 billion unsecured revolving credit facility. On September 19, 2024, the Company entered into the Fourth Amended, Restated and Consolidated Credit Agreement (the Amended Credit Agreement) providing for a new amended and restated senior unsecured revolving credit facility. The Amended Credit Agreement amended, restated and replaced the Company's prior senior unsecured revolving credit facility provided under the Third Amended, Restated and Consolidated Credit Agreement. The amendments to the prior facility, among other things: (i) extended the maturity date of the revolving credit facility; (ii) generally reduced the interest rate payable on outstanding loans; (iii) eliminated the tangible net worth covenant; (iv) modified the secured debt to total assets financial covenant to permit increased secured debt if the Company so elects; and (v) modified and simplified the capitalization rates used to value assets under the facility. The Amended Credit Agreement provides for an initial maximum principal amount of $1.0 billion, which includes a $100.0 million letter-of-credit subfacility and a $300.0 million foreign currency revolving credit subfacility. The new credit facility contains an "accordion" feature under which the Company may increase the total maximum principal amount available by $1.0 billion, to a total of $2.0 billion, subject to lender consent. The new credit facility matures on October 2, 2028. The Company has two options to extend the maturity date of the new credit facility by an additional six months each (for a total of 12 months), subject to applicable fees and the absence of any default. The unsecured revolving credit facility bears interest at a floating rate of SOFR plus 1.15% (based on our unsecured debt ratings and with a SOFR floor of zero), which was 5.46% at December 31, 2024. Additionally, the facility fee on the revolving credit facility is 0.25%. In connection with entering into the Amended Credit Agreement, the Company incurred $9.0 million in fees that were capitalized in deferred financing costs and amortized as part of the effective yield. These fees are included in "Other assets" in the accompanying consolidated balance sheet as of December 31, 2024. During the year ended December 31, 2024, the Company also recorded a non-cash write-off of deferred financing costs (net of accumulated amortization), totaling $0.3 million to "Costs associated with loan refinancing or payoff" in connection with entering into the Amended Credit Agreement. The facility contains financial covenants or restrictions that limit the Company's level of consolidated debt, secured debt, investment levels outside certain categories and dividend distribution and require the Company to meet certain coverage levels for fixed charges and debt service. (5) The bonds have a variable interest rate that was approximately 4.46% at December 31, 2024. See Note 10 for further details on the Company's interest rate swap agreement related to the Company's variable rate secured bonds. Certain of the Company’s debt agreements contain customary restrictive covenants related to financial and operating performance and certain cross-default provisions. The Company was in compliance with all financial covenants under the Company's consolidated debt instruments at December 31, 2024. As discussed above in Note 8, the Company's unconsolidated joint ventures holding its equity investments in two experiential lodging properties located in St. Pete Beach, Florida, were severely damaged by two hurricanes in 2024. The Company is working in good faith with its joint venture partners, the non-recourse debt provider and the insurance companies to identify a path forward in which the Company expects to result in the eventual removal of the unconsolidated equity investments in these experiential lodging properties and the related non-recourse debt from its portfolio, although there can be no assurances as to the outcome of those discussions. Certain of the Company’s debt agreements contain customary restrictive covenants related to financial and operating performance and certain cross-default provisions. The Company was in compliance with all financial covenants under the Company's consolidated debt instruments at December 31, 2024. As discussed in Note 8, the Company is working in good faith with its joint venture partners, the non-recourse debt providers and insurance companies (as applicable) to identify a path forward in which the Company expects will result in the eventual removal of the unconsolidated equity investments in three experiential lodging properties and related non-recourse debt from the Company's portfolio. Principal payments due on long-term debt obligations subsequent to December 31, 2024 (without consideration of any extensions) are as follows (in thousands):
| Amount
Year: |
2025 | $ | 300,000 |
2026 | 629,597 |
2027 | 450,000 |
2028 | 575,000 |
2029 | 500,000 |
Thereafter | 424,995 |
Less: deferred financing costs, net | (19,134) |
Total | $ | 2,860,458 |
The Company capitalizes a portion of interest costs as a component of property under development. The following is a summary of interest expense, net, for the years ended December 31, 2024, 2023 and 2022 (in thousands):
| 2024 |  | 2023 |  | 2022
Interest on loans | $ | 125,261 |  |  | $ | 122,968 |  |  | $ | 123,070 |
Amortization of deferred financing costs | 8,844 |  |  | 8,637 |  |  | 8,360 |
Credit facility and letter of credit fees | 2,664 |  |  | 2,676 |  |  | 2,682 |
Interest cost capitalized | (3,468) |  |  | (3,566) |  |  | (1,286) |
Interest income | (2,491) |  |  | (5,857) |  |  | (1,651) |
Interest expense, net | $ | 130,810 |  |  | $ | 124,858 |  |  | $ | 131,175 |

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