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DEBT OBLIGATIONS
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
DEBT OBLIGATIONS
7. DEBT OBLIGATIONS
The following table sets forth information regarding the Company’s consolidated debt obligations outstanding as of September 30, 2025 and December 31, 2024 (in thousands):
September 30, 2025December 31, 2024Effective
Interest Rate		Maturity
Date
SECURED DEBT:
$245.0M 5.88% Secured Term Loan due 2028 (a)
$245,000 $245,000 5.88%February 2028
 $50.0M Construction Loan due 2026 (b)
— 32,734 
SOFR + 2.50%
August 2026
Principal balance outstanding245,000 277,734 
Less: deferred financing costs(1,829)(2,396)
Total Secured indebtedness$243,171 $275,338 
UNSECURED DEBT
$600.0M Unsecured Credit Facility
$— $— 
SOFR + 1.50%
(c)
June 2027
Term Loan - Swapped to fixed250,000 250,000 
SOFR + 1.70%
(c)(d)
June 2027
$70.0M Term Loan
— 70,000 
SOFR + 2.00%
(c)
February 2025
$450.0M 3.95% Guaranteed Notes due 2027
450,000 450,000 4.03%November 2027
$350.0M 8.30% Guaranteed Notes due 2028
350,000 350,000 8.48%
(e)
March 2028
$350.0M 4.55% Guaranteed Notes due 2029
350,000 350,000 4.30%October 2029
$550.0M 8.875% Guaranteed Notes due 2029
550,000 400,000 8.52%April 2029
Indenture IA (Preferred Trust I)27,062 27,062 
SOFR + 1.51
(f)
March 2035
Indenture IB (Preferred Trust I)25,774 25,774 
SOFR + 1.51
(f)
April 2035
Indenture II (Preferred Trust II)25,774 25,774 
SOFR + 1.51
(f)
July 2035
Principal balance outstanding2,028,610 1,948,610 
Plus: original issue premium (discount), net$8,228 $(544)
Less: deferred financing costs(10,559)(10,590)
Total unsecured indebtedness$2,026,279 $1,937,476 
Total Debt Obligations$2,269,450 $2,212,814 
(a)On October 6, 2025, the Company repaid in full this secured loan.
(b)On July 23, 2025, the Company repaid in full this construction loan, which related to the Company's office Property at 155 King of Prussia Road in Radnor, Pennsylvania.
(c)Spread includes a 10 basis point daily SOFR adjustment.
(d)On November 23, 2022, the $250.0 million unsecured term loan was swapped to a fixed rate. At September 30, 2025, the fixed rate for this instrument was 5.41% and matures on June 30, 2027. The effective date of the swap was January 31, 2023.
(e)During the third quarter of 2023, Moody’s downgraded the Company's senior unsecured credit rating from Baa3 to Ba1. As a result of the downgrade, the interest rate on the Company's 7.55% Guaranteed Notes due 2028 (the "2028 Notes") increased 25 basis points in September 2023 due to the coupon adjustment provisions within the 2028 Notes. During the first quarter of 2024, S&P downgraded the Company's senior unsecured credit rating from BBB- to BB+. As a result of the downgrade, the interest rate on the 2028 Notes increased 25 basis points to 8.05% in March 2024 due to the coupon adjustment provisions within the 2028 Notes. During the second quarter of 2024, Moody's downgraded the Company's senior unsecured credit rating from Ba1 to Ba2. As a result of the downgrade, the interest rate on the 2028 Notes increased 25 basis points to 8.30% in April 2024 due to the coupon adjustment provisions within the 2028 Notes.
(f)On January 16, 2024, the Trust Preferred I Indenture IA was swapped to a fixed rate at 5.14% for the period from March 30, 2024 to December 30, 2026 and Trust Preferred I Indenture IB and Trust Preferred II Indenture II were swapped to a fixed rate at 5.24% for the period from January 30, 2024 to January 30, 2027.
The Company utilizes borrowings under its unsecured credit facility (the “Unsecured Credit Facility”) for general business purposes, including to fund costs of acquisitions, developments and redevelopments of properties, and to fund share repurchases and repay other debt. The Unsecured Credit Facility provides for borrowings of up to $600.0 million and the per annum variable interest rate on borrowings is SOFR plus 1.40% plus a spread adjustment of 0.10%. The interest rate and
facility fee are subject to adjustment upon a change in the Company’s unsecured debt ratings. During the nine months ended September 30, 2025, the weighted-average interest rate on Unsecured Credit Facility borrowings was 5.88%, resulting in $1.8 million of interest expense for such period.
Guaranteed Notes due 2031
On October 3, 2025, the Company completed an underwritten offering of $300.0 million aggregate principal amount of its 6.125% Guaranteed Notes due 2031 (the “ 2031 Notes”). The 2031 Notes were priced at 100% of their face amount. The net proceeds from the offering, after deducting underwriting discounts and estimated transaction expenses related to the offering, totaled approximately $296.3 million.
Additional Information on Unsecured and Secured Consolidated Debt
The Parent Company unconditionally guarantees the unsecured debt obligations of the Operating Partnership (or is a co-borrower with the Operating Partnership) but does not by itself incur unsecured indebtedness. The Parent Company has no material assets other than its investment in the Operating Partnership.
On September 26, 2025, the Company and the Operating Partnership amended its Unsecured Credit Facility to, among other things, amend the restricted payments covenant to permit the Operating Partnership to pay dividends and make distributions attributable to any period of four consecutive fiscal quarters that ends (i) on any date that occurs after June 30, 2025 and on or prior to March 31, 2026, in an amount not to exceed, in the aggregate, the greater of (a) 100% of FFO attributable to such period or (b) the minimum amount necessary for the Company to maintain its REIT status and (ii) on April 1, 2026 or any date that occurs thereafter, in amount not to exceed, in the aggregate, the greater of (a) 95% of FFO attributable to such period or (ii) the minimum amount necessary for the Company to maintain its REIT status. The amendment is attached to this Form 10-Q as Exhibit 10.1.
The Company was in compliance with all financial covenants as of September 30, 2025. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital.
As of September 30, 2025, the aggregate scheduled principal payments on the Company’s consolidated debt obligations (secured and unsecured) were as follows (in thousands):
2025 (three months remaining)$— 
2026— 
2027700,000 
2028595,000 
2029900,000 
Thereafter78,610 
Total principal payments 2,273,610 
Net unamortized premiums/(discounts)8,228 
Net deferred financing costs(12,388)
Outstanding indebtedness $2,269,450