Mortgage Notes Payable, Line of Credit and Term Loan Facility (Tables)
|
9 Months Ended |
Sep. 30, 2016 |
|---|
| Debt Disclosure [Abstract] |
|
| Company's Mortgage Notes Payable and Line of Credit |
Our mortgage notes payable and line of credit as of September 30, 2016 and December 31, 2015 are summarized below (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Encumbered properties at |
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|
|
Carrying Value at |
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Stated Interest Rates at |
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Scheduled Maturity Dates at |
|
|
September 30, 2016 |
|
|
|
September 30, 2016 |
|
December 31, 2015 |
|
September 30, 2016 |
(4) |
September 30, 2016 |
Mortgage and Other Secured Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Fixed rate mortgage loans |
|
54 |
|
|
|
|
$ |
385,102 |
|
|
$ |
427,334 |
|
|
(1) |
|
(2) |
Variable rate mortgage loans |
|
17 |
|
|
|
|
64,161 |
|
|
33,044 |
|
|
(3) |
|
(2) |
Premiums and discounts, net |
|
- |
|
|
|
|
247 |
|
|
392 |
|
|
N/A |
|
N/A |
Deferred financing costs, mortgage loans, net |
|
- |
|
|
|
|
(4,988 |
) |
|
(4,907 |
) |
|
N/A |
|
N/A |
Total Mortgage Notes Payable, net |
|
71 |
|
|
|
|
$ |
444,522 |
|
|
$ |
455,863 |
|
|
(5) |
|
|
Variable rate Line of Credit |
|
25 |
|
|
(6) |
|
47,300 |
|
|
45,300 |
|
|
LIBOR + 2.50% |
|
8/7/2018 |
Deferred financing costs, line of credit |
|
- |
|
|
|
|
(528 |
) |
|
(709 |
) |
|
N/A |
|
N/A |
Total Line of Credit, net |
|
25 |
|
|
|
|
$ |
46,772 |
|
|
$ |
44,591 |
|
|
|
|
|
Variable rate Term Loan Facility |
|
- |
|
|
|
|
25,000 |
|
|
25,000 |
|
|
LIBOR + 2.45% |
|
10/5/2020 |
Deferred financing costs, term loan facility |
|
- |
|
|
|
|
(108 |
) |
|
(122 |
) |
|
N/A |
|
N/A |
Total Term Loan Facility, net |
|
N/A |
|
|
|
|
$ |
24,892 |
|
|
$ |
24,878 |
|
|
|
|
|
Total Mortgage Notes Payable, Line of Credit and Term Loan Facility |
|
96 |
|
|
|
|
$ |
516,186 |
|
|
$ |
525,332 |
|
|
|
|
|
|
|
(1) |
Interest rates on our fixed rate mortgage notes payable vary from 3.75% to 6.63%.
|
|
|
(2) |
We have 43 mortgage notes payable with maturity dates ranging from 12/1/2016 through 7/1/2045.
|
|
|
(3) |
Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.15% to one month LIBOR + 2.75%. At September 30, 2016, one month LIBOR was approximately 0.53%.
|
|
|
(4) |
The weighted average interest rate on all debt outstanding at September 30, 2016 was approximately 4.47%.
|
|
|
(5) |
The weighted average interest rate on the mortgage notes outstanding at September 30, 2016 was approximately 4.71%.
|
|
|
(6) |
The amount we may draw under our line of credit and term loan facility is based on a percentage of the fair value of a combined pool of 25 unencumbered properties as of September 30, 2016.
|
N/A - Not Applicable
|
| Summary of Long-Term Mortgages |
During the nine months ended September 30, 2016, we repaid 6 mortgages, collateralized by 12 properties, and issued 5 long-term mortgages, collateralized by 10 properties, which are summarized below (dollars in thousands):
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|
|
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|
|
|
|
|
|
|
|
|
|
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|
|
|
|
Date of Issuance/Repayment |
|
Issuing Bank |
|
New Debt Issued |
|
Interest Rate |
|
|
|
Maturity Date |
|
Principal Balance Repaid |
|
Previous Interest Rate |
3/1/2016 |
|
Key Bank |
|
$ |
18,475 |
|
|
LIBOR + 2.35% |
|
(1) |
|
3/1/2023 |
|
$ |
21,197 |
|
|
6.14% |
4/22/2016 |
|
Great Southern Bank |
|
9,530 |
|
|
LIBOR + 2.75% |
|
(2) |
|
4/22/2019 |
|
3,667 |
|
|
6.25% |
4/28/2016 |
|
N/A |
|
N/A |
|
N/A |
|
(3) |
|
N/A |
|
22,510 |
|
|
6.34% |
5/26/2016 |
|
Prudential |
|
9,900 |
|
|
4.684% |
|
(4) |
|
6/1/2026 |
|
N/A |
|
N/A |
9/1/2016 |
|
N/A |
|
N/A |
|
N/A |
|
(5) |
|
N/A |
|
12,677 |
|
|
5.76% |
9/12/2016 |
|
Union Fidelity Life Insurance Company |
|
14,100 |
|
|
4.25% |
|
(6) |
|
10/5/2026 |
|
N/A |
|
N/A |
9/30/2016 |
|
Huntington Bank |
|
4,000 |
|
|
LIBOR + 2.50% |
|
(7) |
|
9/30/2018 |
|
N/A |
|
N/A |
|
|
(1) |
We refinanced maturing debt on our Chalfont, Pennsylvania, Big Flats, New York and Franklin and Eatontown, New Jersey properties, which was originally set to mature during second quarter 2016. We entered into an interest rate cap agreement with Key Bank, which caps LIBOR at 3% through March 1, 2019.
|
|
|
(2) |
We refinanced maturing debt on our Coppell, Texas property, which was originally set to mature during second quarter 2016. We pooled the new mortgage debt with unencumbered properties located in Allen and Colleyville, Texas. We entered into an interest rate cap agreement with Great Southern Bank, which caps LIBOR at 2.5% through April 22, 2019.
|
|
|
(3) |
We repaid our $10.7 million mortgage on our Springfield, Missouri property that was originally set to mature on July 1, 2016, and we repaid our $11.8 million mortgage on our Wichita, Kansas, Clintonville, Wisconsin, Angola, Indiana and Rock Falls, Illinois properties that was originally set to mature on May 5, 2016. We repaid both mortgages using existing cash on hand and borrowings from our line of credit.
|
|
|
(4) |
We borrowed $9.9 million to acquire the property in Salt Lake City, Utah.
|
|
| Schedule of Principal Payments of Mortgage Notes Payable |
Scheduled principal payments of mortgage notes payable for the remainder of 2016, 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, 2016 |
|
$ |
10,213 |
|
|
2017 |
|
70,441 |
|
|
2018 |
|
46,367 |
|
|
2019 |
|
45,818 |
|
|
2020 |
|
12,280 |
|
|
2021 |
|
24,507 |
|
|
Thereafter |
|
239,637 |
|
|
Total |
|
$ |
449,263 |
|
(1) |
|
| Summary of Interest Rate Cap Agreement |
The following table summarizes the key terms of each interest rate cap agreement (dollars in thousands):
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September 30, 2016 |
|
December 31, 2015 |
Interest Rate Cap |
|
LIBOR Cap |
|
Maturity Date |
|
Cost |
|
Notional Amount |
|
Fair Value |
|
Notional Amount |
|
Fair Value |
11/2013 |
|
3.00 |
% |
|
12/2016 |
|
$ |
31 |
|
|
$ |
8,200 |
|
|
$ |
— |
|
|
$ |
8,200 |
|
|
$ |
— |
|
7/2015 |
|
3.00 |
% |
|
7/2018 |
|
68 |
|
|
20,709 |
|
|
— |
|
|
21,204 |
|
|
14 |
|
12/2015 |
|
3.00 |
% |
|
12/2020 |
|
52 |
|
|
3,574 |
|
|
5 |
|
|
3,640 |
|
|
26 |
|
3/2016 |
|
3.00 |
% |
|
03/2019 |
|
33 |
|
|
18,260 |
|
|
2 |
|
|
— |
|
|
— |
|
4/2016 |
|
2.50 |
% |
|
04/2019 |
|
27 |
|
|
9,441 |
|
|
2 |
|
|
— |
|
|
— |
|
9/2016 |
|
2.50 |
% |
|
9/2019 |
|
46 |
|
|
4,000 |
|
|
46 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
$ |
257 |
|
|
$ |
64,184 |
|
|
$ |
55 |
|
|
$ |
33,044 |
|
|
$ |
40 |
|
|