Mortgage Notes Payable, Credit Facility, Unsecured Term Loan, and Senior Unsecured Notes (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Company's Mortgage Notes Payable and Credit Facility

Our mortgage notes payable, Credit Facility, our Operating Partnership’s $20.0 million unsecured term loan (“Term Loan D”), and our Operating Partnership’s $75.0 million senior unsecured notes (the “2029 Notes”) as of June 30, 2025 and December 31, 2024 are summarized below (dollars in thousands):


	Encumbered properties at		Carrying Value at				Stated Interest Rates at		Scheduled Maturity Dates at
	June 30, 2025		June 30, 2025		December 31, 2024		June 30, 2025		June 30, 2025
Mortgage and other secured loans:
Fixed rate mortgage loans	44		$	259,516	$	264,243	(1)		(2)
Variable rate mortgage loans	—		—		7,260		SOFR + 2.25%	(3)	(2)
Premiums and discounts, net	—		6		(8)		N/A		N/A
Deferred financing costs, mortgage loans, net	—		(1,640)		(1,916)		N/A		N/A
Total mortgage notes payable, net	44		$	257,882	$	269,579	(4)
Variable rate revolving credit facility	96	(6)	$	94,370	$	1,900	SOFR + 1.35%	(3)	8/18/2026

Total revolver	96		$	94,370	$	1,900
Variable rate term loan facility A	—	(6)	$	160,000	$	160,000	SOFR + 1.30%	(3)	8/18/2027
Variable rate term loan facility B	—	(6)	40,000		40,000		SOFR + 1.30%	(3)	2/11/2026
Variable rate term loan facility C	—	(6)	150,000		150,000		SOFR + 1.30%	(3)	2/18/2028
Deferred financing costs, term loan facility	—		(1,706)		(2,052)		N/A		N/A
Total term loan, net	N/A		$	348,294	$	347,948
Variable rate term loan D	—		$	20,000	$	—	SOFR + 1.55%	(3)	5/30/2027
Deferred financing costs, term loan D	—		(161)		—		N/A		N/A
Total unsecured term loan, net	N/A		$	19,839	$	—
Senior unsecured notes	—		$	75,000	$	75,000	6.47%		12/18/2029
Deferred financing costs, senior unsecured notes	—		(994)		(1,042)		N/A		N/A
Total senior unsecured notes, net	N/A		$	74,006	$	73,958
Total mortgage notes payable, credit facility, unsecured term loan, and senior unsecured notes	140		$	794,391	$	693,385	(5)

(1)As of June 30, 2025, interest rates on our fixed rate mortgage notes payable varied from 2.80% to 6.63%.

(2)As of June 30, 2025, we had 39 mortgage notes payable with maturity dates ranging from September 30, 2025 through August 1, 2037.

(3)As of June 30, 2025, the Secured Overnight Financing Rate (“SOFR”) was approximately 4.45%.

(4)The weighted average interest rate on the mortgage notes outstanding as of June 30, 2025 was approximately 4.22%.

(5)The weighted average interest rate on all debt outstanding as of June 30, 2025 was approximately 5.33%.

(6)The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 96 unencumbered properties as of June 30, 2025.

N/A - Not Applicable

Schedule of Long-Term Mortgages

During the six months ended June 30, 2025, we repaid one mortgage, collateralized by one property, which is summarized in the table below (dollars in thousands):


Aggregate Variable Rate Debt Repaid		Weighted Average Interest Rate on Variable Rate Debt Repaid
$	7,181	SOFR +	2.25%

Schedule of Principal Payments of Mortgage Notes Payable

Scheduled principal payments of mortgage notes payable for the six months ending December 31, 2025, and each of the five succeeding fiscal years and thereafter, are as follows (dollars in thousands):


Year	Scheduled Principal Payments
Six Months Ending December 31, 2025	$	7,929
2026	35,368
2027	95,399
2028	37,433
2029	34,869
2030	33,528
Thereafter	14,990
Total	$	259,516	(1)

(1)This figure does not include $6,378 of premiums and (discounts), net, and $1.6 million of deferred financing costs, which are reflected in mortgage notes payable, net on the condensed consolidated balance sheets.

Schedule of Interest Rate Caps and Swaps

The following table summarizes the interest rate caps at June 30, 2025 and December 31, 2024 (dollars in thousands):


			June 30, 2025				December 31, 2024
Aggregate Cost			Aggregate Notional Amount		Aggregate Fair Value		Aggregate Notional Amount		Aggregate Fair Value
$	—	(1)	$	—	$	—	$	60,000	$	—

(1)We entered into an interest rate cap agreement on variable rate debt with a SOFR cap of 5.50%. This cap matured in March 2025.

The following table summarizes our interest rate swaps at June 30, 2025 and December 31, 2024 (dollars in thousands):


June 30, 2025						December 31, 2024
Aggregate Notional Amount		Aggregate Fair Value Asset		Aggregate Fair Value Liability		Aggregate Notional Amount		Aggregate Fair Value Asset		Aggregate Fair Value Liability
$	359,821	$	3,742	$	(1,157)	$	360,484	$	8,965	$	(19)

Schedule of Impact of Derivative Instruments and Information Regarding Derivative Instruments

The following table presents the impact of our derivative instruments in the condensed consolidated financial statements (dollars in thousands):


	Amount of (loss) gain, net, recognized in Comprehensive Income
	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Derivatives in cash flow hedging relationships
Interest rate caps	$	—	$	(131)	$	—	$	(629)
Interest rate swaps	(2,344)		601		(6,360)		6,517
Total	$	(2,344)	$	470	$	(6,360)	$	5,888

The following table presents the reclassifications of our derivative instruments out of accumulated other comprehensive income into interest expense in the condensed consolidated financial statements (dollars in thousands):


	Amount reclassified out of Accumulated Other Comprehensive Income
	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Interest rate caps	$	—	$	8	$	15	$	113
Total	$	—	$	8	$	15	$	113

The following table sets forth certain information regarding our derivative instruments (dollars in thousands):


		Asset (Liability) Derivatives Fair Value at
Derivatives Designated as Hedging Instruments	Balance Sheet Location	June 30, 2025		December 31, 2024
Interest rate caps	Other assets	$	—	$	—
Interest rate swaps	Other assets	3,742		8,965
Interest rate swaps	Other liabilities	(1,157)		(19)
Total derivative liabilities, net		$	2,585	$	8,946

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

GLADSTONE COMMERCIAL CORP 10-Q