Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risks
Substantially all of our mortgage debt bears interest at fixed rates. Our junior subordinated notes bear interest at the rate of three month term SOFR plus 226 basis points. At June 30, 2026, the interest rate on these notes was 5.93%. Our credit facility bears interest at the rate of one month term SOFR plus 250 basis points and has a minimum interest rate of 6.00%. At June 30, 2026, the interest rate on the credit facility was 6.18%. A 100 basis point change in interest rates would change our related interest expense on our junior subordinated notes by approximately $374,000 annually. A 100 basis point change in interest rates would not change the interest expense on our credit facility as no amount was outstanding thereunder at June 30, 2026.
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