v3.25.4

Note 5 - Indebtedness | 12 Months Ended
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Dec. 31, 2025
Notes to Financial Statements |
Debt Disclosure [Text Block] | NOTE 5: Indebtedness The following tables contain summary information concerning our consolidated indebtedness as of December 31, 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) |  | $ | 198,892 |  |  | $ | (4,535 | ) |  | $ | — |  |  | $ | 194,357 |  | Floating |  |  | 4.5 | % |  |  | 4.8 | % |  |  | 3.0 |
Unsecured term loans |  |  | 600,000 |  |  |  | (1,142 | ) |  |  | — |  |  |  | 598,858 |  | Floating |  |  | 4.6 | % |  |  | 4.0 | % |  |  | 1.5 |
Secured credit facilities |  |  | 582,535 |  |  |  | (1,525 | ) |  |  | 12,157 |  |  |  | 593,167 |  | Fixed |  |  | 4.2 | % |  |  | 4.4 | % |  |  | 2.9 |
Mortgages |  |  | 739,596 |  |  |  | (2,741 | ) |  |  | 9,693 |  |  |  | 746,548 |  | Fixed |  |  | 3.9 | % |  |  | 4.0 | % |  |  | 3.3 |
Unsecured notes |  |  | 150,000 |  |  |  | (1,455 | ) |  |  | — |  |  |  | 148,545 |  | Fixed |  |  | 5.4 | % |  |  | 5.6 | % |  |  | 7.3 |
Total Consolidated Debt |  | $ | 2,271,023 |  |  | $ | (11,398 | ) |  | $ | 21,850 |  |  | $ | 2,281,475 |  |  |  |  | 4.3 | % |  |  | 4.3 | % |  |  | 3.0 |
| (1) | On January 8, 2025, we amended and restated our unsecured credit agreement, which increased our revolver capacity to $750,000, and extended the maturity date of borrowings under the unsecured revolver to January 8, 2029. The unsecured revolver total capacity was $750,000, of which $198,892 was outstanding as of December 31, 2025.
| (2) | Represents the weighted average of the contractual interest rates in effect as of year-end without regard to any interest rate swaps or collars.
| (3) | Represents the total weighted average effective interest rate for the three months ended December 31, 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.
|  | Original maturities on or before December 31, |
Debt: |  | 2026 |  |  | 2027 |  |  | 2028 |  |  | 2029 |  |  | 2030 |  |  | Thereafter |
Unsecured revolver (1) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 198,892 |  |  | $ | — |  |  | $ | — |
Unsecured term loans |  |  | 200,000 |  |  |  | — |  |  |  | 400,000 |  |  |  | — |  |  |  | — |  |  |  | — |
Secured credit facilities |  |  | 9,111 |  |  |  | 10,081 |  |  |  | 453,936 |  |  |  | 2,670 |  |  |  | 106,737 |  |  |  | — |
Mortgages |  |  | 126,763 |  |  |  | 11,281 |  |  |  | 126,019 |  |  |  | 416,031 |  |  |  | — |  |  |  | 59,502 |
Unsecured notes |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 150,000 |
Total |  | $ | 335,874 |  |  | $ | 21,362 |  |  | $ | 979,955 |  |  | $ | 617,593 |  |  | $ | 106,737 |  |  | $ | 209,502 |
| (1) | On January 8, 2025, we amended and restated our unsecured credit agreement, which increased our revolver capacity to $750,000, and extended the maturity date of borrowings under the unsecured revolver to January 8, 2029. The unsecured revolver total capacity was $750,000, of which $198,892 was outstanding as of December 31, 2025.
The following table contains summary information concerning our consolidated indebtedness as of December 31, 2024:
|  |  |  |  |  | Unamortized |  |  | Unamortized |  |  |  |  |  |  |  | Weighted |  |  | Weighted |  |  | Weighted |
|  |  |  |  |  | Debt |  |  | Loan |  |  |  |  |  |  |  | Average |  |  | Average |  |  | Average |
|  | Outstanding |  |  | Issuance |  |  | (Discount) |  |  | Carrying |  |  |  | Contractual |  |  | Effective |  |  | Maturity |
Debt: |  | Principal |  |  | Costs |  |  | /Premiums |  |  | Amount |  | Type |  | Rate (3) |  |  | Rate (4) |  |  | (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 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 rate for the three months ended December 31, 2024, including the impact of interest expense including the impact of interest rate swaps and collars, the amortization of hedging costs, and deferring financing costs, but excluding the impact of loan premium amortization, discount accretion, and interest capitalization.
As of December 31, 2025 we were in compliance with all financial covenants contained in our consolidated indebtedness. Unsecured Revolver and Term Loans On February, 11, 2026, IROP entered into the Sixth Amended and Restated Credit Agreement (the “Sixth Restated Credit Agreement”) by and among IROP, as borrower, IRT as parent guarantor, KeyBank National Association, as administrative agent, and the other agents and lender parties thereto, which amended and restated in its entirety the Fifth Amended and Restated Credit Agreement dated as of January 8, 2025 (the “Fifth Restated Credit Agreement”). The Fifth Restated Credit Agreement provided for a $750,000 unsecured revolving credit facility (the “Unsecured Revolver”) with a January 8, 2029 scheduled maturity date and two unsecured term loans, specifically: (i) a $200,000 term loan with a May 18, 2026 maturity date (the “2026 Term Loan”) and (ii) a $400,000 term loan with a January 28, 2028 maturity date (the “2028 Term Loan”). The Sixth Restated Credit Agreement provides for a new $350.0 million term loan with a maturity date of February 11, 2030, subject to a one year extension option (the “2030 Term Loan”). A portion of the proceeds from the 2030 Term Loan were used to pay off outstanding borrowings under the 2026 Term Loan. The Sixth Restated Credit Agreement also increases the aggregate amount of borrowings under the credit agreement to $1.5 billion and permits IROP to request an increase in such aggregate amount to up to $2.0 billion subject to certain terms and conditions, including receipt of commitments from one or more lenders, whether or not currently parties to the Sixth 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 Sixth Restated Credit Agreement. The margin for borrowings under the Unsecured Revolver, the 2028 Term Loan and the new 2030 Term Loan remain unchanged, with (1) Unsecured Revolver borrowings bearing interest at a rate equal to either (i) the SOFR rate plus a margin of 72.5 to 140 basis points, or (ii) a base rate plus a margin of 0 to 40 basis points; and (2) 2028 Term Loan and new 2030 Term Loan borrowings bearing interest at a rate equal to either (i) the SOFR rate plus a margin of 80 to 160 basis points, or (ii) a base rate plus a margin of 0 to 60 basis points. The applicable margin will be determined based upon IRT’s credit rating. At the time of closing, based upon IRT’s credit rating along with IROP’s consolidated leverage ratio, the applicable SOFR margin was 77.5 basis points for the Unsecured Revolver and 85 basis points for both the 2028 Term Loan and 2030 Term Loan. The Sixth Restated Credit Agreement contains customary covenants for credit facilities of this type, including restrictions on our ability to take the following actions: (i) make distributions after an event of default; (ii) incur debt; (iii) make investments; (iv) grant or suffer liens; (v) undertake mergers, consolidations, asset sales and other fundamental entity changes; (vi) make material changes to contracts and organizational documents; and (vii) enter into transactions with affiliates. The Sixth Restated Credit Agreement also contains financial covenants applicable to us involving (i) maximum consolidated total debt to total asset value, (ii) maximum distributions, (iii) maximum secured debt to total asset value, (iv) maximum unsecured debt to eligible unencumbered properties, and (v) minimum consolidated fixed charge coverage. The Sixth Restated Credit Agreement provides for certain customary events of default, including among others, non-payment of principal, interest or other amounts when due, inaccuracy of representations and warranties, violation of covenants, cross defaults with certain other indebtedness, insolvency or inability to pay debts, bankruptcy, or a change of control. Private Placement of $150 Million of Unsecured Notes On August 19, 2024, we entered into a Note and Guaranty Agreement granting us the right to sell up to $150,000 of unsecured notes (the “Private Placement”), consisting of $75,000 aggregate principal amount of unsecured notes due October 1, 2031 and $75,000 aggregate principal amount of unsecured notes due October 1, 2034 (each a “note” and collectively, the “notes”), to an institutional investor in the Private Placement at fixed annual interest rates of 5.32% and 5.53%, respectively. The entire unpaid principal balance of each note shall be due and payable on the maturity date thereof. On October 1, 2024, the notes were executed and funded. We incurred $1,120 of deferred financing costs attributable to the Private Placement which have been allocated evenly between the notes and will be amortized into interest expense over their respective 7- or 10-year terms, respectively. The net proceeds from the Private Placement were used to repay secured mortgage debt scheduled to mature in 2024 and 2025 and to reduce the borrowings under our unsecured revolver. Secured Credit Facilities PNC Secured Credit Facility On December 16, 2021, in connection with the STAR Merger, we assumed the PNC MCFA, a fixed rate multifamily note and other loan documents for the benefit of PNC Bank. The PNC MCFA provides for a fixed rate loan in the aggregate principal amount of $79,170 that accrues interest at 2.82% per annum and has a maturity date of July 1, 2030. As of December 31, 2025, and 2024, the outstanding principal balance was $75,528 and $76,249, respectively. Newmark Secured Credit Facility On December 16, 2021, in connection with the STAR Merger, we assumed the Newmark MCFA, which consists of four tranches: (1) a fixed rate loan in the aggregate principal amount of $331,001 that accrues interest at 4.43% per annum; (2) a fixed rate loan in the aggregate principal amount of $137,917 that accrues interest at 4.57% per annum; (3) a variable rate loan in the aggregate principal amount of $49,493 that accrues interest at the one-month LIBOR plus 1.70% per annum; and (4) a fixed rate loan in the aggregate principal amount of $40,468 that accrues interest at 3.34% per annum. The first three tranches have a maturity date of August 1, 2028, and the fourth tranche has a maturity date of March 1, 2030, unless in each case the maturity date is accelerated in accordance with the terms of the loan documents. Interest only payments are payable monthly through August 1, 2025 and April 1, 2027 on the first three tranches and fourth tranche, respectively, with interest and principal payments due monthly thereafter. During 2023 and 2024, tranche 3 was repaid and retired with proceeds from the 2023 property sales. As of December 31, 2025 and 2024, the outstanding principal balance was $507,007 and $509,386, respectively. Mortgages The following table summarizes the mortgage payoffs during the years ended December 31, 2025 and 2024:
|  |  |  |  |  | Weighted Average |
|  | Amount |  |  | Interest Rate |
Mortgage payoffs in 2024 |  | $ | 303,464 |  |  |  | 3.83 | %
Mortgage payoffs in 2025 |  |  | 88,303 |  |  |  | 4.46 | %
|  | $ | 391,767 |  |  |  | 3.97 | %

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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