v3.24.3
Unsecured Credit Agreements
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Unsecured Credit Agreements

7. Unsecured Credit Agreements

The following table summarizes the Company’s unsecured credit agreements:

 

 

Outstanding Balance

 

 

 

 

 

(in thousands, except interest rates)

 

September 30,
2024

 

 

December 31,
2023

 

 

Interest Rate

 

Maturity Date

Unsecured revolving credit facility

 

$

125,482

 

 

$

90,434

 

 

Applicable reference rate + 0.85% (a)

 

Mar. 2026 (d)

Unsecured term loans:

 

 

 

 

 

 

 

 

 

 

2026 Unsecured Term Loan

 

 

400,000

 

 

 

400,000

 

 

one-month adjusted SOFR + 1.00% (b)

 

Feb. 2026

2027 Unsecured Term Loan

 

 

200,000

 

 

 

200,000

 

 

daily simple adjusted SOFR + 0.95% (c)

 

Aug. 2027

2029 Unsecured Term Loan

 

 

300,000

 

 

 

300,000

 

 

daily simple adjusted SOFR + 1.25% (c)

 

Aug. 2029

Total unsecured term loans

 

 

900,000

 

 

 

900,000

 

 

 

 

 

Unamortized debt issuance costs, net

 

 

(3,113

)

 

 

(4,053

)

 

 

 

 

Total unsecured term loans, net

 

 

896,887

 

 

 

895,947

 

 

 

 

 

Senior unsecured notes:

 

 

 

 

 

 

 

 

 

 

2027 Senior Unsecured Notes - Series A

 

 

150,000

 

 

 

150,000

 

 

4.84%

 

Apr. 2027

2028 Senior Unsecured Notes - Series B

 

 

225,000

 

 

 

225,000

 

 

5.09%

 

Jul. 2028

2030 Senior Unsecured Notes - Series C

 

 

100,000

 

 

 

100,000

 

 

5.19%

 

Jul. 2030

2031 Senior Unsecured Public Notes

 

 

375,000

 

 

 

375,000

 

 

2.60%

 

Sep. 2031

Total senior unsecured notes

 

 

850,000

 

 

 

850,000

 

 

 

 

 

Unamortized debt issuance costs and
   original issuance discount, net

 

 

(4,125

)

 

 

(4,691

)

 

 

 

 

Total senior unsecured notes, net

 

 

845,875

 

 

 

845,309

 

 

 

 

 

Total unsecured debt, net

 

$

1,868,244

 

 

$

1,831,690

 

 

 

 

 

 

(a)
At September 30, 2024, a balance of $51.5 million was subject to daily simple SOFR, and at December 31, 2023 a balance of $15.0 million was subject to one-month SOFR. The remaining balance of $100.0 million Canadian Dollar (“CAD”) borrowings remeasured to $74.0 million United States Dollar (“USD”) and $75.4 million USD, at September 30, 2024 and December 31, 2023, respectively, and was subject to daily simple CORRA of 4.30% at September 30, 2024 and one-month CDOR, of 5.46% at December 31, 2023.
(b)
At September 30, 2024 and December 31, 2023, one-month SOFR was 4.85% and 5.35%, respectively.
(c)
At September 30, 2024, overnight SOFR was 4.96%. The applicable reference rate at December 31, 2023 was one-month SOFR, which was 5.35%.
(d)
The Company’s unsecured revolving credit facility contains two six-month extension options subject to certain conditions, including the payment of an extension fee equal to 0.0625% of the revolving commitments.

At September 30, 2024, the weighted average interest rate on all outstanding borrowings was 5.09% exclusive of interest rate swap agreements, and 3.78% inclusive of interest rate swap agreements.

The Company is subject to various financial and operational covenants and financial reporting requirements pursuant to its unsecured credit agreements. These covenants require the Company to maintain certain financial ratios. As of September 30, 2024, and for all periods presented, the Company believes it was in compliance with all of its loan covenants. Failure to comply with the covenants would result in a default which, if the Company were unable to cure or obtain a waiver from the lenders, could accelerate the repayment of the obligations. Further, in the event of default, the Company may be restricted from paying dividends to its stockholders in excess of dividends required to maintain its REIT qualification. Accordingly, an event of default could have a material effect on the Company.

Debt issuance costs and original issuance discounts are amortized as a component of Interest expense in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income. The following table summarizes debt issuance cost and original issuance discount amortization:

 

 

For the Three Months Ended
September 30,

 

 

For the Nine Months Ended
September 30,

 

(in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Debt issuance costs and original issuance discount amortization

 

$

983

 

 

$

983

 

 

$

2,949

 

 

$

2,955