Quarterly report pursuant to Section 13 or 15(d)

Mortgage Notes Payable and Credit Facility (Tables)

v3.19.3
Mortgage Notes Payable and Credit Facility (Tables)
 9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Company's Mortgage Notes Payable and Line of Credit
Our mortgage notes payable and Credit Facility as of September 30, 2019 and December 31, 2018 are summarized below (dollars in thousands):

 
 
Encumbered properties at
 
 
 
Carrying Value at
 
Stated Interest Rates at
 
Scheduled Maturity Dates at
 
 
September 30, 2019
 
 
 
September 30, 2019
 
December 31, 2018
 
September 30, 2019

September 30, 2019
Mortgage and other secured loans:
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate mortgage loans
 
51

 
 
 
$
393,220

 
$
385,051

 
(1)
 
(2)
Variable rate mortgage loans
 
12

 
 
 
45,514

 
60,659

 
(3)
 
(2)
Premiums and discounts, net
 
-

 
 
 
(254
)
 
(301
)
 
N/A
 
N/A
Deferred financing costs, mortgage loans, net
 
-

 
 
 
(3,791
)
 
(4,063
)
 
N/A
 
N/A
Total mortgage notes payable, net
 
63

 
 
 
$
434,689

 
$
441,346

 
(4)
 
 
Variable rate revolving credit facility
 
43

 
(6)
 
$
35,800

 
$
50,600

 
LIBOR + 1.65%
 
7/2/2023
Deferred financing costs, revolving credit facility
 
-

 
 
 
(885
)
 
(516
)
 
N/A
 
N/A
Total revolver, net
 
43

 
 
 
$
34,915

 
$
50,084

 
 
 
 
Variable rate term loan facility
 
-

 
(6)
 
$
122,300

 
$
75,000

 
LIBOR + 1.60%
 
7/2/2024
Deferred financing costs, term loan facility
 
-

 
 
 
(1,081
)
 
(371
)
 
N/A
 
N/A
Total term loan, net
 
N/A

 
 
 
$
121,219

 
$
74,629

 
 
 
 
Total mortgage notes payable and credit facility
 
106

 
 
 
$
590,823

 
$
566,059

 
(5)
 
 
 
(1)
Interest rates on our fixed rate mortgage notes payable vary from 3.42% to 6.63%.
(2)
We have 47 mortgage notes payable with maturity dates ranging from 12/6/2019 through 7/1/2045.
(3)
Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.00% to one month LIBOR + 2.75%. At September 30, 2019, one month LIBOR was approximately 2.02%.
(4)
The weighted average interest rate on the mortgage notes outstanding at September 30, 2019 was approximately 4.58%.
(5)
The weighted average interest rate on all debt outstanding at September 30, 2019 was approximately 4.33%.
(6)
The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 43 unencumbered properties as of September 30, 2019.
N/A - Not Applicable
Schedule of Repaid Debt
During the nine months ended September 30, 2019, we partially repaid one mortgage collateralized by three properties, releasing one of the collateralized properties that we sold on January 31, 2019, and we fully repaid three mortgages fully collateralized by seven properties, all of which are summarized below (dollars in thousands):
 
Aggregate Variable Rate Debt Repaid
 
Weighted Average Interest Rate on Variable Rate Debt Repaid
 
Aggregate Fixed Rate Debt Repaid
 
Weighted Average Interest Rate on Fixed Rate Debt Repaid
$
13,600

 
LIBOR +
2.47%
 
$
25,042

 
4.18
%
Summary of Long-Term Mortgages
During the nine months ended September 30, 2019, we issued three mortgages, collateralized by three properties, which are summarized in the table below (dollars in thousands):

Aggregate Fixed Rate Debt Issued
 
Weighted Average Interest Rate on Fixed Rate Debt
$
41,140

(1)
3.95%

(1)
We issued $10.6 million of fixed rate debt in connection with one property acquired on December 27, 2018 with a maturity date of February 8, 2029. The interest rate is fixed at 4.70% for the first seven years of the mortgage. After the fixed interest rate period expires, we have the option to adjust the interest rate to a fixed interest rate equal to 1.8% plus the three year treasury rate per annum, or a variable interest rate equal to 1.8% plus the 30 day LIBOR rate per annum. On May 31, 2019, we issued $21.6 million of floating rate debt swapped to fixed rate debt of 3.42% in connection with refinancing mortgage debt at one property with a new maturity date of June 1, 2024. We issued $8.9 million of fixed rate debt in connection with our June 18, 2019 property acquisition with a maturity date of June 18, 2024 and a rate of 4.35%.

During the nine months ended September 30, 2019, we extended the maturity date of two mortgages, collateralized by four properties, which is summarized below (dollars in thousands):

Aggregate Variable Rate Debt Extended
 
Weighted Average Interest Rate on Variable Rate Debt Extended
 
Weighted Average Extension Term
$
12,561

 
LIBOR +
2.51%
 
2.4 years
Schedule of Principal Payments of Mortgage Notes Payable
Scheduled principal payments of mortgage notes payable for the three months ending December 31, 2019, and each of the five succeeding years and thereafter are as follows (dollars in thousands):
 
Year
 
Scheduled Principal Payments
 
Three Months Ending December 31, 2019
 
$
8,804

 
2020
 
31,118

 
2021
 
37,838

 
2022
 
106,189

 
2023
 
70,465

 
2024
 
47,514

 
Thereafter
 
136,806

 
Total
 
$
438,734

(1)

(1)
This figure does not include $0.3 million of premiums and discounts, net, and $3.8 million of deferred financing costs, which are reflected in mortgage notes payable, net on the condensed consolidated balance sheets.
Summary of Interest Rate Cap Agreement
The following table summarizes the interest rate caps at September 30, 2019 and December 31, 2018 (dollars in thousands):
 
 
 
September 30, 2019
 
December 31, 2018
Aggregate Cost
 
Aggregate Notional Amount
 
Aggregate Fair Value
 
Aggregate Notional Amount
 
Aggregate Fair Value
$
1,596

(1)
$
167,062

 
$
368

 
$
134,678

 
$
622


(1)
We have entered into various interest rate cap agreements on variable rate debt with LIBOR caps ranging from 2.50% to 3.00%.
The following table summarizes our interest rate swaps at September 30, 2019 and December 31, 2018 (dollars in thousands):

September 30, 2019
 
December 31, 2018
Aggregate Notional Amount
 
Aggregate Fair Value Asset
 
Aggregate Fair Value Liability
 
Aggregate Notional Amount
 
Aggregate Fair Value Asset
 
Aggregate Fair Value Liability
$
45,919

 
$
—

 
$
(1,609
)
 
$
24,732

 
$
451

 
$
(396
)
Schedule of Derivative Instruments
The following tables present 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 September 30,
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
Derivatives in cash flow hedging relationships
 
 
 
 
 
 
 
 
Interest rate caps
 
$
(187
)
 
$
107

 
$
(671
)
 
$
576

Interest rate swaps
 
(437
)
 
138

 
(1,664
)
 
452

 
 
 
 
 
 
 
 
 
Total
 
$
(624
)
 
$
245

 
$
(2,335
)
 
$
1,028



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
 
September 30, 2019

 
December 31, 2018

Interest rate caps
 
Other assets
 
$
366

 
$
552

Interest rate swaps
 
Other assets
 
—

 
451

Interest rate swaps
 
Other liabilities
 
(1,609
)
 
(396
)
 
 
 
 
 
 
 
Derivatives Not Designated as Hedging Instruments
 
 
 
 
 
 
Interest rate caps
 
Other assets
 
$
2

 
$
70

 
 
 
 
 
 
 
Total derivative (liabilities) assets
 
 
 
$
(1,241
)
 
$
677