Annual report pursuant to Section 13 and 15(d)

Mortgage Notes Payable and Credit Facility (Tables)

v3.24.0.1
Mortgage Notes Payable and Credit Facility (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Company's Mortgage Notes Payable and Credit Facility
Our mortgage notes payable and Credit Facility as of December 31, 2023 and December 31, 2022 are summarized below (dollars in thousands):

Encumbered properties at Carrying Value at Stated Interest Rates at Scheduled Maturity Dates at
December 31, 2023 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2023
Mortgage and other secured loans:
Fixed rate mortgage loans 47  $ 298,122  $ 362,037  (1) (2)
Premiums and discounts, net —  (42) (83) N/A N/A
Deferred financing costs, mortgage loans, net —  (2,227) (2,565) N/A N/A
Total mortgage notes payable, net 47  $ 295,853  $ 359,389  (3)
Variable rate revolving credit facility 85  (6) $ 75,750  $ 23,250 
SOFR + 1.50%
 (4) 8/18/2026
Total revolver 85  $ 75,750  $ 23,250 
Variable rate term loan facility A —  160,000  160,000 
SOFR + 1.45%
 (4) 8/18/2027
Variable rate term loan facility B —  60,000  60,000 
SOFR + 1.45%
 (4) 2/11/2026
Variable rate term loan facility C —  150,000  150,000 
SOFR + 1.45%
 (4) 2/18/2028
Deferred financing costs, term loan facility —  (2,742) (3,433) N/A N/A
Total term loan, net N/A $ 367,258  $ 366,567 
Total mortgage notes payable and credit facility 132  $ 738,861  $ 749,206  (5)
(1)Interest rates on our fixed rate mortgage notes payable vary from 2.80% to 6.63%.
(2)We have 41 mortgage notes payable with maturity dates ranging from June 18, 2024 through August 1, 2037.
(3)The weighted average interest rate on the mortgage notes outstanding at December 31, 2023, was approximately 4.19%.
(4)As of December 31, 2023, SOFR was approximately 5.38%.
(5)The weighted average interest rate on all debt outstanding at December 31, 2023, was approximately 5.78%.
(6)The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 85 unencumbered properties as of December 31, 2023.
N/A - Not Applicable
Summary of Long-Term Mortgages
During the year ended December 31, 2023, we repaid six mortgages collateralized by six properties, which are summarized below (dollars in thousands):

Fixed Rate Debt Repaid Interest Rate on Fixed Rate Debt Repaid
$ 58,864  4.69  %

During the year ended December 31, 2023, we issued three mortgages, collateralized by three properties, which are summarized below (dollars in thousands):

Aggregate Fixed Rate Debt Issued Weighted Average Interest Rate on Fixed Rate Debt
$ 9,000  6.10  %

During the year ended December 31, 2023, we extended the maturity date of one mortgage, collateralized by one property, which is summarized in the table below (dollars in thousands):

Fixed Rate Debt Extended Interest Rate on Fixed Rate Debt Extended Extension Term
$ 8,769  6.50  % 1.0 year
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
2024 $ 25,079 
2025 36,457 
2026 35,087 
2027 95,039 
2028 37,115 
Thereafter 69,345 
$ 298,122  (1)
(1)This figure does not include $(0.04) million premiums and (discounts), net, and $2.2 million of deferred financing costs, which are reflected in mortgage notes payable on the consolidated balance sheets.
Summary of Interest Rate Cap Agreement The following table summarizes the interest rate caps at December 31, 2023 and 2022 (dollars in thousands):
December 31, 2023 December 31, 2022
Aggregate Cost Aggregate Notional Amount Aggregate Fair Value Aggregate Notional Amount Aggregate Fair Value
$ 141  (1) $ 65,000  $ 684  $ 225,000  $ 4,629 
(1)We have entered into various interest rate cap agreements on new variable rate debt with SOFR caps ranging from 1.49% to 1.75%.
The following table summarizes our interest rate swaps at December 31, 2023 and 2022 (dollars in thousands):
December 31, 2023 December 31, 2022
Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability
$ 361,676  $ 6,222  $ (670) $ 362,832  $ 8,264  $ (897)
Schedule of Derivative Instruments
The following tables present the impact of our derivative instruments in the consolidated financial statements (dollars in thousands):

Amount of gain, net, recognized in Comprehensive Income
2023 2022 2021
Derivatives in cash flow hedging relationships
Interest rate caps $ (3,038) $ 4,301  $ 174 
Interest rate swaps (1,815) 7,814  2,680 
Total $ (4,853) $ 12,115  $ 2,854 

The following table presents the reclassifications of our derivative instruments out of accumulated other comprehensive income into interest expense in the consolidated financial statements (dollars in thousands):
Amount reclassified out of Accumulated Other Comprehensive Income
2023 2022 2021
Derivatives in cash flow hedging relationships
Interest rate caps $ (971) $ (871) $ (145)
Total $ (971) $ (871) $ (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 December 31, 2023 December 31, 2022
Interest rate caps Other assets $ 684  $ 4,629 
Interest rate swaps Other assets 6,222  8,264 
Interest rate swaps Other liabilities (670) (897)
Total derivative liabilities, net $ 6,236  $ 11,996