Quarterly report pursuant to Section 13 or 15(d)

Mortgage Notes Payable and Credit Facility (Tables)

v3.24.3
Mortgage Notes Payable and Credit Facility (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Company's Mortgage Notes Payable and Credit Facility
Our mortgage notes payable and Credit Facility as of September 30, 2024 and December 31, 2023 are summarized below (dollars in thousands):

Encumbered properties at Carrying Value at Stated Interest Rates at Scheduled Maturity Dates at
September 30, 2024 September 30, 2024 December 31, 2023 September 30, 2024 September 30, 2024
Mortgage and other secured loans:
Fixed rate mortgage loans 44  $ 266,121  $ 298,122  (1) (2)
Variable rate mortgage loans 1  7,308  —  N/A (2)
Premiums and discounts, net —  (16) (42) N/A N/A
Deferred financing costs, mortgage loans, net —  (1,792) (2,227) N/A N/A
Total mortgage notes payable, net 45  $ 271,621  $ 295,853  (3)
Variable rate revolving credit facility 87  (6) $ 53,250  $ 75,750 
SOFR + 1.35%
 (4) 8/18/2026
Total revolver 87  $ 53,250  $ 75,750 
Variable rate term loan facility A —  (6) $ 160,000  $ 160,000 
SOFR + 1.30%
 (4) 8/18/2027
Variable rate term loan facility B —  (6) 60,000  60,000 
SOFR + 1.30%
 (4) 2/11/2026
Variable rate term loan facility C —  (6) 150,000  150,000 
SOFR + 1.30%
 (4) 2/18/2028
Deferred financing costs, term loan facility —  (2,224) (2,742) N/A N/A
Total term loan, net N/A $ 367,776  $ 367,258 
Total mortgage notes payable and credit facility 132  $ 692,647  $ 738,861  (5)
(1)As of September 30, 2024, interest rates on our fixed rate mortgage notes payable varied from 2.80% to 6.63%.
(2)As of September 30, 2024, we had 39 mortgage notes payable with maturity dates ranging from January 1, 2025 through August 1, 2037.
(3)The weighted average interest rate on the mortgage notes outstanding as of September 30, 2024 was approximately 4.23%.
(4)As of September 30, 2024, the Secured Overnight Financing Rate (“SOFR”) was approximately 4.96%.
(5)The weighted average interest rate on all debt outstanding as of September 30, 2024 was approximately 5.47%.
(6)The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 87 unencumbered properties as of September 30, 2024.
N/A - Not Applicable
Schedule of Long-Term Mortgages
During the nine months ended September 30, 2024, we repaid two mortgages, collateralized by two properties, which are summarized in the table below (dollars in thousands):

Fixed Rate Debt Repaid Interest Rate on Fixed Rate Debt Repaid
$ 17,674  5.05  %

During the nine months ended September 30, 2024, we extended the maturity date of one mortgage, collateralized by one property, which is summarized in the table below (dollars in thousands):

Variable Rate Debt Extended Interest Rate on Variable Rate Debt Extended Extension Term
$ 7,386  SOFR + 2.25% 1.3 years
Schedule of Principal Payments of Mortgage Notes Payable
Scheduled principal payments of mortgage notes payable for the three months ending December 31, 2024, 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, 2024 $ 2,383 
2025 34,346 
2026 35,069 
2027 95,090 
2028 37,108 
2029 20,911 
Thereafter 48,522 
Total $ 273,429  (1)
(1)This figure does not include $(0.02) million of premiums and (discounts), net, and $1.8 million of deferred financing costs, which are reflected in mortgage notes payable, net on the condensed consolidated balance sheets.
Schedule of Interest Rate Caps and Swaps The following table summarizes the interest rate caps at September 30, 2024 and December 31, 2023 (dollars in thousands):
 
September 30, 2024 December 31, 2023
Aggregate Cost Aggregate Notional Amount Aggregate Fair Value Aggregate Notional Amount Aggregate Fair Value
$ 48  (1) $ 60,000  $ 1  $ 65,000  $ 684 
(1)We have entered into an interest rate cap agreement on variable rate debt with a SOFR cap of 5.50%.
The following table summarizes our interest rate swaps at September 30, 2024 and December 31, 2023 (dollars in thousands):
September 30, 2024 December 31, 2023
Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability
$ 360,787  $ 3,860  $ (2,186) $ 361,676  $ 6,222  $ (670)
Schedule of Impact of Derivative Instruments and Information Regarding Derivative Instruments
The following table presents the impact of our derivative instruments in the condensed consolidated financial statements (dollars in thousands):

Amount of gain, net, recognized in Comprehensive Income
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Derivatives in cash flow hedging relationships
Interest rate caps $ (62) $ (654) $ (690) $ (2,429)
Interest rate swaps (10,394) 5,743  (3,878) 9,647 
Total $ (10,456) $ 5,089  $ (4,568) $ 7,218 

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,
2024 2023 2024 2023
Interest rate caps $ 62  $ 409  $ 175  $ 937 
Total $ 62  $ 409  $ 175  $ 937 

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, 2024 December 31, 2023
Interest rate caps Other assets $ 1  $ 684 
Interest rate swaps Other assets 3,860  6,222 
Interest rate swaps Other liabilities (2,186) (670)
Total derivative liabilities, net $ 1,675  $ 6,236