Mortgage Notes Payable and Credit Facility (Tables)
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6 Months Ended |
Jun. 30, 2018 |
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| Debt Disclosure [Abstract] |
|
| Company's Mortgage Notes Payable and Line of Credit |
Our mortgage notes payable and Credit Facility as of June 30, 2018 and December 31, 2017 are summarized below (dollars in thousands):
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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 |
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June 30, 2018 |
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June 30, 2018 |
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December 31, 2017 |
|
June 30, 2018 |
|
June 30, 2018 |
Mortgage and other secured loans: |
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|
|
|
|
|
|
|
|
|
|
|
Fixed rate mortgage loans |
|
48 |
|
|
|
|
$ |
378,287 |
|
|
$ |
383,189 |
|
|
(1) |
|
(2) |
Variable rate mortgage loans |
|
18 |
|
|
|
|
61,590 |
|
|
69,302 |
|
|
(3) |
|
(2) |
Premiums and discounts, net |
|
- |
|
|
|
|
(334 |
) |
|
(281 |
) |
|
N/A |
|
N/A |
Deferred financing costs, mortgage loans, net |
|
- |
|
|
|
|
(4,470 |
) |
|
(4,830 |
) |
|
N/A |
|
N/A |
Total mortgage notes payable, net |
|
66 |
|
|
|
|
$ |
435,073 |
|
|
$ |
447,380 |
|
|
(4) |
|
|
Variable rate revolving credit facility |
|
32 |
|
|
(6) |
|
$ |
33,400 |
|
|
$ |
21,400 |
|
|
LIBOR + 1.75% |
|
10/27/2021 |
Deferred financing costs, revolving credit facility |
|
- |
|
|
|
|
(592 |
) |
|
(685 |
) |
|
N/A |
|
N/A |
Total revolver, net |
|
32 |
|
|
|
|
$ |
32,808 |
|
|
$ |
20,715 |
|
|
|
|
|
Variable rate term loan facility |
|
- |
|
|
(6) |
|
$ |
75,000 |
|
|
$ |
75,000 |
|
|
LIBOR + 1.70% |
|
10/27/2022 |
Deferred financing costs, term loan facility |
|
- |
|
|
|
|
(420 |
) |
|
(468 |
) |
|
N/A |
|
N/A |
Total term loan, net |
|
N/A |
|
|
|
|
$ |
74,580 |
|
|
$ |
74,532 |
|
|
|
|
|
Total mortgage notes payable and credit facility |
|
98 |
|
|
|
|
$ |
542,461 |
|
|
$ |
542,627 |
|
|
(5) |
|
|
|
|
(1) |
Interest rates on our fixed rate mortgage notes payable vary from 3.55% to 6.63%.
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|
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(2) |
We have 45 mortgage notes payable with maturity dates ranging from 9/30/2018 through 7/1/2045.
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(3) |
Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.25% to one month LIBOR + 2.75%. At June 30, 2018, one month LIBOR was approximately 2.09%.
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(4) |
The weighted average interest rate on the mortgage notes outstanding at June 30, 2018 was approximately 4.63%.
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(5) |
The weighted average interest rate on all debt outstanding at June 30, 2018 was approximately 4.46%.
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(6) |
The amount we may draw under our senior unsecured revolving credit facility and term loan facility is based on a percentage of the fair value of a combined pool of 32 unencumbered properties as of June 30, 2018.
|
N/A - Not Applicable
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| Schedule of Repaid Debt |
During the six months ended June 30, 2018, we repaid one mortgage collateralized by one property and partially repaid one mortgage collateralized by two properties, releasing one of the collateralized properties, which are summarized below (dollars in thousands):
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Variable Rate Debt Repaid |
|
Interest Rate on Variable Rate Debt Repaid |
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Fixed Rate Debt Repaid |
|
Interest Rate on Fixed Rate Debt Repaid |
$ |
6,738 |
|
|
LIBOR + |
2.25% |
|
$ |
9,444 |
|
|
5.75 |
% |
|
| Summary of Long-Term Mortgages |
During the six months ended June 30, 2018, we issued one mortgage, collateralized by one property, which is summarized in the table below (dollars in thousands):
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|
|
|
|
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Debt Issued |
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Interest Rate on Debt |
|
$ |
9,380 |
|
(1) |
4.58% |
(2) |
|
|
(1) |
We issued $9.4 million of swapped to fixed rate debt in connection with one property with a maturity date of March 1, 2023.
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(2) |
We entered into an interest rate swap and will be paying an all in fixed rate of 4.58%.
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| Schedule of Principal Payments of Mortgage Notes Payable |
Scheduled principal payments of mortgage notes payable for the six months ending 2018, and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):
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|
|
|
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|
Year |
|
Scheduled Principal Payments |
|
Six Months Ending December 31, 2018 |
|
$ |
20,695 |
|
|
2019 |
|
48,038 |
|
|
2020 |
|
31,772 |
|
|
2021 |
|
33,506 |
|
|
2022 |
|
97,333 |
|
|
2023 |
|
69,225 |
|
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Thereafter |
|
139,308 |
|
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Total |
|
$ |
439,877 |
|
(1) |
|
|
(1) |
This figure does not include $0.3 million of premiums and discounts, net, and $4.5 million of deferred financing costs, which are reflected in mortgage notes payable, net on the condensed consolidated balance sheets.
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| Summary of Interest Rate Cap Agreement |
The following table summarizes the interest rate caps at June 30, 2018 and December 31, 2017 (dollars in thousands):
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June 30, 2018 |
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December 31, 2017 |
Aggregate Cost |
|
Aggregate Notional Amount |
|
Aggregate Fair Value |
|
Aggregate Notional Amount |
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Aggregate Fair Value |
$ |
1,111 |
|
(1) |
$ |
135,671 |
|
|
$ |
1,115 |
|
|
$ |
143,512 |
|
|
$ |
504 |
|
|
|
(1) |
We have entered into various interest rate cap agreements on variable rate debt with LIBOR caps ranging from 2.25% to 3.25%.
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| Schedule of Derivative Instruments |
The following table sets forth certain information regarding our derivative instruments (dollars in thousands):
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Asset Derivatives Fair Value at |
Derivatives Designated as Hedging Instruments |
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Balance Sheet Location |
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June 30, 2018 |
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|
December 31, 2017 |
|
Interest rate caps |
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Other assets |
|
$ |
920 |
|
|
$ |
450 |
|
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|
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|
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Derivatives Not Designated as Hedging Instruments |
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|
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Interest rate caps |
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Other assets |
|
$ |
195 |
|
|
$ |
54 |
|
|
|
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Total derivatives |
|
|
|
$ |
1,115 |
|
|
$ |
504 |
|
The following tables present the impact of our derivative instruments in the condensed consolidated financial statements (dollars in thousands):
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Amount of Gain recognized in Comprehensive Income |
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Three Months Ended June 30, |
|
Six Months Ended June 30, |
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2018 |
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2017 |
|
2018 |
|
2017 |
Derivatives in cash flow hedging relationships |
|
|
|
|
|
|
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Interest rate caps |
|
$ |
97 |
|
|
$ |
— |
|
|
$ |
470 |
|
|
$ |
— |
|
Interest rate swap |
|
192 |
|
|
179 |
|
|
313 |
|
|
179 |
|
|
|
|
|
|
|
|
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Total |
|
$ |
289 |
|
|
$ |
179 |
|
|
$ |
783 |
|
|
$ |
179 |
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