Quarterly report pursuant to Section 13 or 15(d)

Mortgage Notes Payable and Credit Facility (Tables)

v3.20.1
Mortgage Notes Payable and Credit Facility (Tables)
 3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Company's Mortgage Notes Payable and Line of Credit
Our mortgage notes payable and Credit Facility as of March 31, 2020 and December 31, 2019 are summarized below (dollars in thousands):

 
 
Encumbered properties at
 
 
 
Carrying Value at
 
Stated Interest Rates at
 
Scheduled Maturity Dates at
 
 
March 31, 2020
 
 
 
March 31, 2020
 
December 31, 2019
 
March 31, 2020

March 31, 2020
Mortgage and other secured loans:
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate mortgage loans
 
62

 
 
 
$
445,786

 
$
412,771

 
(1)
 
(2)
Variable rate mortgage loans
 
12

 
 
 
44,830

 
45,151

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

 
 
 
(224
)
 
(239
)
 
N/A
 
N/A
Deferred financing costs, mortgage loans, net
 
-

 
 
 
(4,077
)
 
(3,944
)
 
N/A
 
N/A
Total mortgage notes payable, net
 
74

 
 
 
$
486,315

 
$
453,739

 
(4)
 
 
Variable rate revolving credit facility
 
47

 
(6)
 
$
21,600

 
$
52,400

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

 
 
 
(754
)
 
(821
)
 
N/A
 
N/A
Total revolver, net
 
47

 
 
 
$
20,846

 
$
51,579

 
 
 
 
Variable rate term loan facility
 
-

 
(6)
 
$
160,000

 
$
122,300

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

 
 
 
(967
)
 
(1,024
)
 
N/A
 
N/A
Total term loan, net
 
N/A

 
 
 
$
159,033

 
$
121,276

 
 
 
 
Total mortgage notes payable and credit facility
 
121

 
 
 
$
666,194

 
$
626,594

 
(5)
 
 
 
(1)
Interest rates on our fixed rate mortgage notes payable vary from 2.80% to 6.63%.
(2)
We have 58 mortgage notes payable with maturity dates ranging from 7/1/2020 through 8/1/2037.
(3)
Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.00% to one month LIBOR + 2.75%. As of March 31, 2020, one month LIBOR was approximately 0.99%.
(4)
The weighted average interest rate on the mortgage notes outstanding as of March 31, 2020 was approximately 4.32%.
(5)
The weighted average interest rate on all debt outstanding as of March 31, 2020 was approximately 3.86%.
(6)
The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 47 unencumbered properties as of March 31, 2020.
N/A - Not Applicable
Summary of Long-Term Mortgages
During the three months ended March 31, 2020, we issued four mortgages, collateralized by four properties, which are summarized in the table below (dollars in thousands):

Aggregate Fixed Rate Debt Issued
 
Weighted Average Interest Rate on Fixed Rate Debt
$
35,855

(1)
3.22%

(1)
We issued $18.3 million of fixed rate debt in connection with the three-property portfolio acquired on January 27, 2020 with a maturity date of February 1, 2030. The interest rate is fixed at 3.625%. On March 9, 2020, we issued $17.5 million of floating rate debt swapped to fixed rate debt of 2.8% in connection with the one property acquisition.
Schedule of Principal Payments of Mortgage Notes Payable
Scheduled principal payments of mortgage notes payable for the nine months ending December 31, 2020, and each of the five succeeding years and thereafter are as follows (dollars in thousands):
 
Year
 
Scheduled Principal Payments
 
Nine Months Ending December 31, 2020
 
$
28,514

 
2021
 
39,329

 
2022
 
107,733

 
2023
 
72,065

 
2024
 
49,172

 
2025
 
37,112

 
Thereafter
 
156,691

 
Total
 
$
490,616

(1)

(1)
This figure does not include $0.2 million of premiums and discounts, net, and $4.1 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 our interest rate swaps at March 31, 2020 and December 31, 2019 (dollars in thousands):

March 31, 2020
 
December 31, 2019
Aggregate Notional Amount
 
Aggregate Fair Value Asset
 
Aggregate Fair Value Liability
 
Aggregate Notional Amount
 
Aggregate Fair Value Asset
 
Aggregate Fair Value Liability
$
63,168

 
$
—

 
$
(3,538
)
 
$
45,777

 
$
—

 
$
(1,173
)
The following table summarizes the interest rate caps at March 31, 2020 and December 31, 2019 (dollars in thousands):
 
 
 
March 31, 2020
 
December 31, 2019
Aggregate Cost
 
Aggregate Notional Amount
 
Aggregate Fair Value
 
Aggregate Notional Amount
 
Aggregate Fair Value
$
1,672

(1)
$
204,090

 
$
161

 
$
166,728

 
$
250


(1)
We have entered into various interest rate cap agreements on variable rate debt with LIBOR caps ranging from 2.00% to 3.25%.
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 recognized in Comprehensive Income
 
 
Three Months Ended March 31,
 
 
2020
 
2019
Derivatives in cash flow hedging relationships
 
 
 
 
Interest rate caps
 
$
(163
)
 
$
(333
)
Interest rate swaps
 
(2,365
)
 
(389
)
 
 
 
 
 
Total
 
$
(2,528
)
 
$
(722
)


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
 
March 31, 2020

 
December 31, 2019

Interest rate caps
 
Other assets
 
$
161

 
$
250

Interest rate swaps
 
Other liabilities
 
(3,538
)
 
(1,173
)
Total derivative liabilities, net
 
 
 
$
(3,377
)
 
$
(923
)