Annual report pursuant to Section 13 and 15(d)

Mortgage Notes Payable and Credit Facility (Tables)

v3.22.4
Mortgage Notes Payable and Credit Facility (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Company's Mortgage Notes Payable and Credit Facility
Our mortgage notes payable and Credit Facility as of December 31, 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
December 31, 2022 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2022
Mortgage and other secured loans:
Fixed rate mortgage loans 50  $ 362,037  $ 436,530  (1) (2)
Variable rate mortgage loans —  —  16,338  N/A (2)
Premiums and discounts, net —  (83) (130) N/A N/A
Deferred financing costs, mortgage loans, net —  (2,565) (2,794) N/A N/A
Total mortgage notes payable, net 50  $ 359,389  $ 449,944  (3)
Variable rate revolving credit facility 83  (6) $ 23,250  $ 33,550 
SOFR + 1.50%
 (4) 8/18/2026
Total revolver 83  $ 23,250  $ 33,550 
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  65,000 
SOFR + 1.45%
 (4) 2/11/2026
Variable rate term loan facility C —  150,000  — 
SOFR + 1.45%
 (4) 2/18/2028
Deferred financing costs, term loan facility —  (3,433) (968) N/A N/A
Total term loan, net N/A $ 366,567  $ 224,032 
Total mortgage notes payable and credit facility 133  $ 749,206  $ 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 April 6, 2023 through August 1, 2037.
(3)The weighted average interest rate on the mortgage notes outstanding at December 31, 2022, was approximately 4.24%.
(4)As of December 31, 2022, SOFR was approximately 4.30%.
(5)The weighted average interest rate on all debt outstanding at December 31, 2022, was approximately 5.03%.
(6)The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 83 unencumbered properties as of December 31, 2022.
N/A - Not Applicable
Summary of Long-Term Mortgages
During the year ended December 31, 2022, we repaid 14 mortgages collateralized by 28 properties, which are summarized below (dollars in thousands):

Aggregate Fixed Rate Debt Repaid Weighted Average Interest Rate on Fixed Rate Debt Repaid
$ 104,906  4.64  %
Aggregate Variable Rate Debt Repaid Weighted Average Interest Rate on Variable Rate Debt Repaid
$ 30,336  LIBOR/SOFR + 2.50% (1)
(1)As of December 31, 2022, SOFR was approximately 4.30% and LIBOR was approximately 4.39%.

During the year ended December 31, 2022, we issued six mortgages, collateralized by 11 properties, which are summarized below (dollars in thousands):

Aggregate Fixed Rate Debt Issued Weighted Average Interest Rate on Fixed Rate Debt
$ 47,913  (1) 4.60  %
(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%. We issued $6.6 million of swapped to fixed rate debt with a maturity date of September 16, 2029, in connection with the property acquisition on October 26, 2022. The interest rate is swapped to a fixed rate of 5.90%.

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 year ended December 31, 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 each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):

Year Scheduled Principal Payments
2023 $ 67,296 
2024 20,420 
2025 38,889 
2026 42,381 
2027 94,848 
Thereafter 98,203 
$ 362,037  (1)
(1)This figure does not include $(0.1) million premiums and (discounts), net, and $2.6 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, 2022 and 2021 (dollars in thousands):
December 31, 2022 December 31, 2021
Aggregate Cost Aggregate Notional Amount Aggregate Fair Value Aggregate Notional Amount Aggregate Fair Value
$ 620  (1) $ 225,000  $ 4,629  $ 233,632  $ 324 
(1)We have entered into various interest rate cap agreements on new variable rate debt with LIBOR caps ranging from 1.50% to 2.50%.
The following table summarizes our interest rate swaps at December 31, 2022 and 2021 (dollars in thousands):
December 31, 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
$ 362,832  $ 8,264  $ (897) $ 73,212  $ 841  $ (1,217)
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 (loss), net, recognized in Comprehensive Income
2022 2021 2020
Derivatives in cash flow hedging relationships
Interest rate caps $ 4,301  $ 174  $ (337)
Interest rate swaps 7,814  2,680  (1,882)
Total $ 12,115  $ 2,854  $ (2,219)

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
2022 2021 2020
Derivatives in cash flow hedging relationships
Interest rate caps $ (871) $ (145) $ — 
Total $ (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, 2022 December 31, 2021
Interest rate caps Other assets $ 4,629  $ 324 
Interest rate swaps Other assets 8,264  841 
Interest rate swaps Other liabilities (897) (1,217)
Total derivative liabilities, net $ 11,996  $ (52)