Mortgage Notes Payable, Revolving Credit Facility, and Term Loan Facility (Tables)
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12 Months Ended |
Dec. 31, 2017 |
|---|
| Debt Disclosure [Abstract] |
|
| Company's Mortgage Notes Payable and Credit Facility |
Our mortgage notes payable and Credit Facility as of December 31, 2017 and December 31, 2016 are summarized below (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Encumbered properties at |
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Carrying Value at |
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Stated Interest Rates at |
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Scheduled Maturity Dates at |
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|
December 31, 2017 |
|
December 31, 2017 |
|
December 31, 2016 |
|
December 31, 2017 |
|
December 31, 2017 |
Mortgage and other secured loans: |
|
|
|
|
|
|
|
|
|
|
Fixed rate mortgage loans |
|
48 |
|
|
$ |
383,189 |
|
|
$ |
378,477 |
|
|
(1) |
|
(2) |
Variable rate mortgage loans |
|
19 |
|
|
69,302 |
|
|
71,707 |
|
|
(3) |
|
(2) |
Premiums and discounts, net |
|
- |
|
|
(281 |
) |
|
217 |
|
|
N/A |
|
N/A |
Deferred financing costs, mortgage loans, net |
|
- |
|
|
(4,830 |
) |
|
(5,123 |
) |
|
N/A |
|
N/A |
Total mortgage notes payable, net |
|
67 |
|
|
$ |
447,380 |
|
|
$ |
445,278 |
|
|
(4) |
|
|
Variable rate revolving credit facility |
|
29 |
|
(6) |
$ |
21,400 |
|
|
$ |
39,700 |
|
|
LIBOR + 1.75% |
|
10/27/2021 |
Deferred financing costs, revolving credit facility |
|
- |
|
|
(685 |
) |
|
(475 |
) |
|
N/A |
|
N/A |
Total revolver, net |
|
29 |
|
|
$ |
20,715 |
|
|
$ |
39,225 |
|
|
|
|
|
Variable rate term loan facility |
|
- |
|
|
$ |
75,000 |
|
|
$ |
25,000 |
|
|
LIBOR + 1.70% |
|
10/27/2022 |
Deferred financing costs, term loan facility |
|
- |
|
|
(468 |
) |
|
(108 |
) |
|
N/A |
|
N/A |
Total term loan, net |
|
N/A |
|
|
$ |
74,532 |
|
|
$ |
24,892 |
|
|
|
|
|
Total mortgage notes payable and credit facility |
|
96 |
|
|
$ |
542,627 |
|
|
$ |
509,395 |
|
|
(5) |
|
|
|
|
(1) |
Interest rates on our fixed rate mortgage notes payable vary from 3.55% to 6.63%.
|
|
|
(2) |
We have 45 mortgage notes payable with maturity dates ranging from 7/1/2018 through 7/1/2045.
|
|
|
(3) |
Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.15% to one month LIBOR +2.75%. At December 31, 2017, one month LIBOR was approximately 1.56%.
|
|
|
(4) |
The weighted average interest rate on the mortgage notes outstanding at December 31, 2017, was approximately 4.56%.
|
|
|
(5) |
The weighted average interest rate on all debt outstanding at December 31, 2017, was approximately 4.42%.
|
|
|
(6) |
The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 29 unencumbered properties as of December 31, 2017.
|
N/A - Not Applicable
|
| Schedule of Repaid Debt |
During the year ended December 31, 2017, we repaid four mortgages collateralized by 10 properties, which are summarized below (dollars in thousands):
|
|
|
|
|
|
|
Aggregate Fixed Rate Debt Repaid |
|
Weighted Average Interest Rate on Fixed Rate Debt Repaid |
$ |
41,077 |
|
|
6.25 |
% |
|
|
|
|
|
|
|
Aggregate Variable Rate Debt Repaid |
|
Weighted Average Interest Rate on Variable Rate Debt Repaid |
$ |
8,163 |
|
|
LIBOR + |
2.50% |
|
| Summary of Long-Term Mortgages |
During the year ended December 31, 2017, we issued or assumed four mortgages, collateralized by seven properties, and drew an additional advance on an existing mortgage note, collateralized by one property, which are summarized below (dollars in thousands):
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|
|
|
|
|
|
|
|
|
|
|
Aggregate Fixed Rate Debt Issued or Assumed |
|
Weighted Average Interest Rate on Fixed Rate Debt |
|
Aggregate Variable Rate Debt Issued or Assumed |
|
$ |
54,887 |
|
(1) |
3.78 |
% |
(2) |
$ |
7,500 |
|
(3) |
|
|
(1) |
We issued or assumed $54.9 million of fixed rate, or swapped to fixed rate, debt in connection with five of our seven property acquisitions in 2017, with maturity dates ranging from April 1, 2026 to August 10, 2027.
|
|
|
(2) |
We assumed an interest rate swap in connection with one property acquisition and will be paying an all-in fixed rate of 3.55%. The newly issued fixed rate mortgages have rates ranging from 3.75% to 3.89%.
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|
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(3) |
The interest rate for our newly issued variable rate mortgage debt is equal to one month LIBOR plus a spread of 2.75%. The maturity date on this new variable rate debt is May 15, 2020. We have entered into a rate cap agreement on our new variable rate debt and will record all fair value changes into interest expense on the consolidated statement of operations and comprehensive income. The interest rate for our additional advance on the existing mortgage note is equal to one month LIBOR plus a spread of 2.50% and the maturity date is December 1, 2021.
|
|
| Schedule of Principal Payments of Mortgage Notes Payable |
Scheduled principal payments of mortgage notes payable for each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):
|
|
|
|
|
|
|
Year |
|
Scheduled Principal Payments |
|
2018 |
|
$ |
55,267 |
|
|
2019 |
|
47,447 |
|
|
2020 |
|
19,357 |
|
|
2021 |
|
33,337 |
|
|
2022 |
|
97,156 |
|
|
Thereafter |
|
199,927 |
|
|
|
|
$ |
452,491 |
|
(1) |
|
|
(1) |
This figure is does not include $(0.3) million premiums and (discounts), net, and $4.8 million of deferred financing costs, which are reflected in mortgage notes payable on the consolidated balance sheet.
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|
| Summary of Interest Rate Cap Agreement |
The following table summarizes the interest rate caps for the year ended December 31, 2017 and 2016 (dollars in thousands):
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|
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|
December 31, 2017 |
|
December 31, 2016 |
Aggregate Cost |
|
Aggregate Notional Amount |
|
Aggregate Fair Value |
|
Aggregate Notional Amount |
|
Aggregate Fair Value |
$ |
1,171 |
|
(1) |
$ |
143,512 |
|
|
$ |
504 |
|
|
$ |
71,721 |
|
|
$ |
101 |
|
|
|
(1) |
We have entered into various interest rate cap agreements on new variable rate debt with LIBOR caps ranging from 2.50% to 3.00%.
|
|
| Schedule of Derivative Instruments |
The following table sets forth certain information regarding our derivative instruments (dollars in thousands):
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Asset Derivatives Fair Value at |
Derivatives Designated as Hedging Instruments |
|
Balance Sheet Location |
|
December 31, 2017 |
|
|
December 31, 2016 |
|
Interest rate caps |
|
Other assets |
|
$ |
450 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
Derivatives Not Designated as Hedging Instruments |
|
|
|
|
|
|
Interest rate caps |
|
Other assets |
|
$ |
54 |
|
|
101 |
|
|
|
|
|
|
|
|
Total derivatives |
|
|
|
$ |
504 |
|
|
$ |
101 |
|
The following tables present the impact of our derivative instruments in the consolidated financial statements (dollars in thousands):
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|
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|
|
|
|
|
|
|
|
|
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|
Amount of Gain (Loss) recognized in Comprehensive Income |
|
|
2017 |
|
2016 |
|
2015 |
Derivatives in cash flow hedging relationships |
|
|
|
|
|
|
Interest rate caps |
|
$ |
(239 |
) |
|
$ |
— |
|
|
$ |
— |
|
Interest rate swap |
|
274 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
35 |
|
|
$ |
— |
|
|
$ |
— |
|
|