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Note 5 - Indebtedness
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Debt Disclosure [Text Block]

NOTE 5: Indebtedness

 

Unsecured Revolver and Term Loans

 

On January 8, 2025, IROP entered into the Fifth Amended and Restated Credit Agreement (the “Fifth Restated Credit Agreement”), which amended and restated in its entirety the Fourth Amended and Restated Credit Agreement dated as of July 25, 2022. The Fifth Restated Credit Agreement increased the maximum principal amount of the unsecured revolver to $750,000, which represents an increase of $250,000 over the prior credit agreement, extended its maturity date until January 8, 2029 and reduced the margin on our unsecured revolver and existing $200,000 term loan while leaving the terms of our existing $400,000 term loan unchanged. In summary, the Fifth Restated Credit Agreement provides for a $750,000 unsecured revolving credit facility (the “Unsecured Revolver”) with a January 8, 2029 maturity date and two unsecured term loans, specifically: (i) a $200,000 term loan with a May 18, 2026 maturity date and (ii) a $400,000 term loan with a January 28, 2028 maturity date.

 

The Fifth Restated Credit Agreement increased the aggregate amount of borrowings under the credit agreement to $1,350,000 and permits IROP to request an increase in such aggregate amount to up to $2,000,000 subject to certain terms and conditions, including receipt of commitments from one or more lenders, whether or not currently parties to the Fifth Restated Credit Agreement, to provide such increased amounts, which increase may be allocated, at IROP’s option, to the Unsecured Revolver and/or to one or more of the term loans, in accordance with the Fifth Restated Credit Agreement. Refer to our 2024 Annual Report on Form 10-K for additional borrowing terms and financial covenant details.

 

The following tables contain summary information concerning our consolidated indebtedness, as of June 30, 2025:

 

Consolidated Debt:

 

Outstanding Principal

  

Unamortized Debt Issuance Costs

  

Unamortized Loan (Discount)/Premiums

  

Carrying Amount

  

Type

 

Weighted Average Contractual Rate (2)

  

Weighted Average Effective Rate (3)

  

Weighted Average Maturity (in years)

 

Unsecured revolver (1)

 $214,892  $(5,258) $—  $209,634  

Floating

  5.1%  4.8%  3.5 

Unsecured term loans

  600,000   (1,488)  —   598,512  

Floating

  5.1%  3.6%  2.0 

Secured credit facilities

  585,635   (1,699)  14,613   598,549  

Fixed

  4.2%  4.4%  3.4 

Mortgages

  686,370   (2,626)  10,856   694,600  

Fixed

  3.8%  4.0%  3.4 

Unsecured notes

  150,000   (1,494)  —   148,506  

Fixed

  5.4%  5.6%  7.8 

Total Consolidated Debt

 $2,236,897  $(12,565) $25,469  $2,249,801     4.5%  4.2%  3.4 

 

 

(1)

The unsecured revolver total capacity is $750,000, of which $214,892 was outstanding as of June 30, 2025.

 

(2)

Represents the weighted average of the contractual interest rates in effect as of  June 30, 2025, without regard to any interest rate swaps or collars.

 

(3)

Represents the weighted average effective interest rates for the three months ended June 30, 2025, including the impact of interest rate swaps and collars, the amortization of hedging costs, and deferred financing costs, but excluding the impact of loan premium amortization, discount accretion, and interest capitalization.

 

The following table contains summary information concerning our consolidated indebtedness as of June 30, 2025:

 

  

Scheduled maturities on our consolidated indebtedness outstanding as of June 30, 2025

 

Consolidated Debt:

 

2025

  

2026

  

2027

  

2028

  

2029

  

Thereafter

 

Unsecured revolver

 $—  $—  $—  $—  $214,892  $— 

Unsecured term loans

  —   200,000   —   400,000   —   — 

Secured credit facilities

  3,065   9,111   10,081   453,937   2,669   106,772 

Mortgages

  6,835   126,201   11,281   126,018   416,035   — 

Unsecured notes

  —   —   —   —   —   150,000 

Total

 $9,900  $335,312  $21,362  $979,955  $633,596  $256,772 

 

The following table contains summary information concerning our consolidated indebtedness, including indebtedness secured by real estate held for sale, as of December 31, 2024:

 

Consolidated Debt:

 

Outstanding Principal

  

Unamortized Debt Issuance Costs

  

Unamortized Loan (Discount)/Premiums

  

Carrying Amount

  

Type

 

Weighted Average Contractual Rate (3)

  

Weighted Average Effective Rate (4)

  

Weighted Average Maturity (in years)

 

Unsecured revolver (1)

 $194,478  $(526) $—  $193,952  

Floating

  5.5%  4.8%  4.0 

Unsecured term loans

  600,000   (1,831)  —   598,169  

Floating

  5.6%  4.0%  2.5 

Secured credit facilities

  585,635   (1,901)  17,034   600,768  

Fixed

  4.2%  4.4%  3.9 

Mortgages (2)

  780,794   (3,175)  14,687   792,306  

Fixed

  3.8%  4.0%  3.7 

Unsecured notes

  150,000   (1,512)  —   148,488  

Fixed

  5.4%  5.6%  8.3 

Total Consolidated Debt

 $2,310,907  $(8,945) $31,721  $2,333,683     4.6%  4.3%  3.8 

 

 

(1)

The unsecured revolver total capacity was $500,000, of which $194,478 was outstanding as of December 31, 2024.

 

(2)

Includes indebtedness secured by real estate held for sale of $59,032.

 

(3)

Represents the weighted average of the contractual interest rates in effect as of year-end December 31, 2024, without regard to any interest rate swaps or collars.

 

(4)

Represents the total weighted average effective interest rates for the full year ended December 31, 2024, after giving effect to all components of interest expense including the impact of interest rate swaps and collars, but excluding the impact of loan premium amortization, discount accretion, and interest capitalization.

 

As of June 30, 2025, we were in compliance with all financial covenants contained in our consolidated indebtedness.