Quarterly report pursuant to Section 13 or 15(d)

Mortgage Notes Payable and Credit Facility (Tables)

v3.22.2.2
Mortgage Notes Payable and Credit Facility (Tables)
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Company's Mortgage Notes Payable and Line of Credit
Our mortgage notes payable and Credit Facility as of September 30, 2022 and December 31, 2021 are summarized below (dollars in thousands):

Encumbered properties at Carrying Value at Stated Interest Rates at Scheduled Maturity Dates at
September 30, 2022 September 30, 2022 December 31, 2021 September 30, 2022 September 30, 2022
Mortgage and other secured loans:
Fixed rate mortgage loans 50  $ 370,291  $ 436,530  (1) (2)
Variable rate mortgage loans —  —  16,338  N/A (2)
Premiums and discounts, net —  (94) (130) N/A N/A
Deferred financing costs, mortgage loans, net —  (2,579) (2,794) N/A N/A
Total mortgage notes payable, net 50  $ 367,618  $ 449,944  (3)
Variable rate revolving credit facility 82  (6) $ 7,750  $ 33,550 
SOFR + 1.50%
 (4) 8/18/2026
Total revolver 82  $ 7,750  $ 33,550 
Variable rate term loan facility A —  (6) $ 160,000  $ 160,000 
SOFR + 1.45%
 (4) 8/18/2027
Variable rate term loan facility B —  (6) 60,000  65,000 
SOFR + 1.45%
 (4) 2/11/2026
Variable rate term loan facility C —  (6) 150,000  — 
SOFR + 1.45%
 (4) 2/18/2028
Deferred financing costs, term loan facility —  (3,605) (968) N/A N/A
Total term loan, net N/A $ 366,395  $ 224,032 
Total mortgage notes payable and credit facility 132  $ 741,763  $ 707,526  (5)
(1)Interest rates on our fixed rate mortgage notes payable vary from 2.80% to 6.63%.
(2)We have 44 mortgage notes payable with maturity dates ranging from December 6, 2022 through August 1, 2037.
(3)The weighted average interest rate on the mortgage notes outstanding as of September 30, 2022 was approximately 4.19%.
(4)As of September 30, 2022, Secured Overnight Financing Rate (“SOFR”) was approximately 2.98%.
(5)The weighted average interest rate on all debt outstanding as of September 30, 2022 was approximately 4.31%.
(6)The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 82 unencumbered properties as of September 30, 2022.
N/A - Not Applicable
Summary of Long-Term Mortgages
During the nine months ended September 30, 2022, we repaid 13 mortgages, collateralized by 27 properties, which is summarized in the table below (dollars in thousands):

.
Aggregate Fixed Rate Debt Repaid Weighted Average Interest Rate on Fixed Rate Debt Repaid
$ 97,843  4.75  %

Aggregate Variable Rate Debt Repaid Weighted Average Interest Rate on Variable Rate Debt Repaid
$ 30,336  LIBOR/SOFR + 2.50% (1)
(1)As of September 30, 2022, Secured Overnight Financing Rate (“SOFR”) was approximately 2.98%.

During the nine months ended September 30, 2022, we issued five mortgages, collateralized by 10 properties, which is summarized in the table below (dollars in thousands):

.
Aggregate Fixed Rate Debt Issued Weighted Average Interest Rate on Fixed Rate Debt
$ 41,313  (1) 4.39  %
(1)We issued $10.0 million of fixed rate debt with a maturity date of May 4, 2027, in connection with the two-property portfolio acquired on May 4, 2022. The interest rate is fixed at 4.00%. We issued $10.0 million of fixed rate debt with a maturity date of June 1, 2032, in connection with the three-property acquisition on May 12, 2022. The interest rate is fixed at 3.40%. We issued $16.9 million of fixed rate debt with a maturity date of August 1, 2027, in connection with the two-property acquisition on August 5, 2022. The interest rate is fixed at 4.95%. We issued $4.4 million of swapped to fixed rate debt with a maturity date of September 16, 2029, in connection with the property acquisition on September 16, 2022. The interest rate is swapped to a fixed rate of 5.39%.

Variable Rate Debt Issued Interest Rate on Variable Rate Debt
$ 15,000  (1) SOFR + 2.50%
(1)We issued $15.0 million of variable rate debt in connection with refinancing mortgage debt at two properties with a new maturity date of April 27, 2024 and interest rate of SOFR plus 2.50%. This mortgage was repaid on August 18, 2022.

During the nine months ended September 30, 2022, we extended the maturity date of three mortgages, collateralized by five properties, which is summarized in the table below (dollars in thousands):

Aggregate Fixed Rate Debt Extended Weighted Average Interest Rate on Fixed Rate Debt Extended Extension Term
$ 14,633  5.41  % 1.0 year
Variable Rate Debt Extended Interest Rate on Variable Rate Debt Extended Extension Term
$ 7,059  (1) LIBOR + 2.75% 1.0 year
(1)We repaid this mortgage on August 18, 2022.
Schedule of Principal Payments of Mortgage Notes Payable
Scheduled principal payments of mortgage notes payable for the three months ending December 31, 2022, and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):
 
Year Scheduled Principal Payments
Three Months Ending December 31, 2022 $ 16,030 
2023 66,120 
2024 20,420 
2025 38,802 
2026 42,258 
2027 94,717 
Thereafter 91,944 
Total $ 370,291  (1)
(1)This figure does not include $(0.1) million of premiums and (discounts), net, and $2.6 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, 2022 and December 31, 2021 (dollars in thousands): 
September 30, 2022 December 31, 2021
Aggregate Cost Aggregate Notional Amount Aggregate Fair Value Aggregate Notional Amount Aggregate Fair Value
$ 1,228  (1) $ 225,000  $ 4,843  $ 233,632  $ 324 
(1)We have entered into various interest rate cap agreements on variable rate debt with LIBOR caps ranging from 1.50% to 2.75%.
The following table summarizes our interest rate swaps at September 30, 2022 and December 31, 2021 (dollars in thousands):
September 30, 2022 December 31, 2021
Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability
$ 230,136  $ 8,868  $ (66) $ 73,212  $ 841  $ (1,217)
Schedule of Derivative Instruments
The following table presents the impact of our derivative instruments in the condensed consolidated financial statements (dollars in thousands):

Amount of gain (loss), net, recognized in Comprehensive Income
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Derivatives in cash flow hedging relationships
Interest rate caps $ 1,758  $ (49) $ 4,520  $ (26)
Interest rate swaps 5,032  470  9,140  2,151 
Total $ 6,790  $ 421  $ 13,660  $ 2,125 

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 September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Interest rate caps $ (52) $ (145) $ (52) $ (145)
Total $ (52) $ (145) $ (52) $ (145)

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, 2022 December 31, 2021
Interest rate caps Other assets $ 4,843  $ 324 
Interest rate swaps Other assets 8,868  841 
Interest rate swaps Other liabilities (66) (1,217)
Total derivative liabilities, net $ 13,645  $ (52)