Mortgage Notes Payable and Credit Facility (Tables)
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9 Months Ended |
Sep. 30, 2018 |
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| Debt Disclosure [Abstract] |
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| Company's Mortgage Notes Payable and Line of Credit |
Our mortgage notes payable and Credit Facility as of September 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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September 30, 2018 |
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September 30, 2018 |
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December 31, 2017 |
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September 30, 2018 |
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September 30, 2018 |
Mortgage and other secured loans: |
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|
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|
|
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Fixed rate mortgage loans |
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49 |
|
|
|
|
$ |
380,620 |
|
|
$ |
383,189 |
|
|
(1) |
|
(2) |
Variable rate mortgage loans |
|
18 |
|
|
|
|
61,115 |
|
|
69,302 |
|
|
(3) |
|
(2) |
Premiums and discounts, net |
|
- |
|
|
|
|
(318 |
) |
|
(281 |
) |
|
N/A |
|
N/A |
Deferred financing costs, mortgage loans, net |
|
- |
|
|
|
|
(4,271 |
) |
|
(4,830 |
) |
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N/A |
|
N/A |
Total mortgage notes payable, net |
|
67 |
|
|
|
|
$ |
437,146 |
|
|
$ |
447,380 |
|
|
(4) |
|
|
Variable rate revolving credit facility |
|
32 |
|
|
(6) |
|
$ |
30,900 |
|
|
$ |
21,400 |
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|
LIBOR + 1.75% |
|
10/27/2021 |
Deferred financing costs, revolving credit facility |
|
- |
|
|
|
|
(566 |
) |
|
(685 |
) |
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N/A |
|
N/A |
Total revolver, net |
|
32 |
|
|
|
|
$ |
30,334 |
|
|
$ |
20,715 |
|
|
|
|
|
Variable rate term loan facility |
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- |
|
|
(6) |
|
$ |
75,000 |
|
|
$ |
75,000 |
|
|
LIBOR + 1.70% |
|
10/27/2022 |
Deferred financing costs, term loan facility |
|
- |
|
|
|
|
(396 |
) |
|
(468 |
) |
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N/A |
|
N/A |
Total term loan, net |
|
N/A |
|
|
|
|
$ |
74,604 |
|
|
$ |
74,532 |
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|
|
|
|
Total mortgage notes payable and credit facility |
|
99 |
|
|
|
|
$ |
542,084 |
|
|
$ |
542,627 |
|
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(5) |
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|
|
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(1) |
Interest rates on our fixed rate mortgage notes payable vary from 3.55% to 6.63%.
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(2) |
We have 46 mortgage notes payable with maturity dates ranging from 12/1/2018 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 September 30, 2018, one month LIBOR was approximately 2.26%.
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(4) |
The weighted average interest rate on the mortgage notes outstanding at September 30, 2018 was approximately 4.66%.
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(5) |
The weighted average interest rate on all debt outstanding at September 30, 2018 was approximately 4.52%.
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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 September 30, 2018.
|
N/A - Not Applicable
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| Schedule of Repaid Debt |
During the nine months ended September 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 |
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Interest Rate on Variable Rate Debt Repaid |
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Fixed Rate Debt Repaid |
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Interest Rate on Fixed Rate Debt Repaid |
$ |
6,738 |
|
|
LIBOR + |
2.25% |
|
$ |
9,444 |
|
|
5.75 |
% |
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| Summary of Long-Term Mortgages |
During the nine months ended September 30, 2018, we issued two mortgages, collateralized by two properties, which are summarized in the table below (dollars in thousands):
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Aggregate Fixed Rate Debt Issued |
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Weighted Average Interest Rate on Fixed Rate Debt |
|
$ |
14,125 |
|
(1) |
4.83% |
(2) |
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|
(1) |
We issued $14.1 million of swapped to fixed rate debt in connection with two properties with maturity dates of March 1, 2023 and November 1, 2028.
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(2) |
We entered into two interest rate swaps and will be paying an all in fixed rates of 4.58% and 5.32%, respectively.
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| Schedule of Principal Payments of Mortgage Notes Payable |
Scheduled principal payments of mortgage notes payable for the three months ending December 31, 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 |
|
Three Months Ending December 31, 2018 |
|
$ |
10,255 |
|
|
2019 |
|
52,262 |
|
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2020 |
|
32,006 |
|
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2021 |
|
36,917 |
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2022 |
|
97,444 |
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2023 |
|
69,342 |
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Thereafter |
|
143,509 |
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Total |
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$ |
441,735 |
|
(1) |
|
|
(1) |
This figure does not include $0.3 million of premiums and discounts, net, and $4.3 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 our interest rate swaps at September 30, 2018 and December 31, 2017 (dollars in thousands):
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September 30, 2018 |
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December 31, 2017 |
Aggregate Notional Amount |
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Aggregate Fair Value |
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Aggregate Notional Amount |
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Aggregate Fair Value |
$ |
24,867 |
|
|
$ |
768 |
|
|
$ |
11,036 |
|
|
$ |
316 |
|
The following table summarizes the interest rate caps at September 30, 2018 and December 31, 2017 (dollars in thousands):
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September 30, 2018 |
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December 31, 2017 |
Aggregate Cost |
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Aggregate Notional Amount |
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Aggregate Fair Value |
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Aggregate Notional Amount |
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Aggregate Fair Value |
$ |
1,111 |
|
(1) |
$ |
135,185 |
|
|
$ |
1,245 |
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|
$ |
143,512 |
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|
$ |
504 |
|
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|
(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 tables present the impact of our derivative instruments in the condensed consolidated financial statements (dollars in thousands):
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Amount of Gain (Loss), net recognized in Comprehensive Income |
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Three Months Ended September 30, |
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Nine Months Ended September 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 |
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$ |
107 |
|
|
$ |
— |
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$ |
576 |
|
|
$ |
— |
|
Interest rate swaps |
|
138 |
|
|
(7 |
) |
|
452 |
|
|
172 |
|
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Total |
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$ |
245 |
|
|
$ |
(7 |
) |
|
$ |
1,028 |
|
|
$ |
172 |
|
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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September 30, 2018 |
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|
December 31, 2017 |
|
Interest rate caps |
|
Other assets |
|
$ |
1,036 |
|
|
$ |
450 |
|
Interest rate swaps |
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Other assets |
|
768 |
|
|
316 |
|
|
|
|
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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 |
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$ |
209 |
|
|
$ |
54 |
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Total derivatives |
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|
|
$ |
2,013 |
|
|
$ |
820 |
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