Quarterly report pursuant to Section 13 or 15(d)

Mortgage Notes Payable and Credit Facility (Tables)

v3.22.2
Mortgage Notes Payable and Credit Facility (Tables)
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Company's Mortgage Notes Payable and Line of Credit
Our mortgage notes payable and Credit Facility as of June 30, 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
June 30, 2022 June 30, 2022 December 31, 2021 June 30, 2022 June 30, 2022
Mortgage and other secured loans:
Fixed rate mortgage loans 64  $ 435,314  $ 436,530  (1) (2)
Variable rate mortgage loans 6  30,513  16,338  (3) (2)
Premiums and discounts, net - (106) (130) N/A N/A
Deferred financing costs, mortgage loans, net - (2,889) (2,794) N/A N/A
Total mortgage notes payable, net 70  $ 462,832  $ 449,944  (4)
Variable rate revolving credit facility 62  (6) $ 46,950  $ 33,550 
LIBOR + 1.90%
 7/2/2023
Total revolver 62  $ 46,950  $ 33,550 
Variable rate term loan facility A - (6) $ 160,000  $ 160,000 
LIBOR + 1.85%
 7/2/2024
Variable rate term loan facility B - (6) 65,000  65,000 
LIBOR + 2.00%
 2/11/2026
Deferred financing costs, term loan facility - (806) (968) N/A N/A
Total term loan, net N/A $ 224,194  $ 224,032 
Total mortgage notes payable and credit facility 132  $ 733,976  $ 707,526  (5)
(1)Interest rates on our fixed rate mortgage notes payable vary from 2.80% to 6.63%.
(2)We have 54 mortgage notes payable with maturity dates ranging from July 1, 2022 through August 1, 2037.
(3)Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.35% to one month LIBOR + 2.75%. As of June 30, 2022, one month LIBOR was approximately 1.79%.
(4)The weighted average interest rate on the mortgage notes outstanding as of June 30, 2022 was approximately 4.18%.
(5)The weighted average interest rate on all debt outstanding as of June 30, 2022 was approximately 4.00%.
(6)The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 62 unencumbered properties as of June 30, 2022.
N/A - Not Applicable
Summary of Long-Term Mortgages During the six months ended June 30, 2022, we repaid one mortgage, collateralized by four properties, which is summarized in the table below (dollars in thousands):.
Fixed Rate Debt Repaid Interest Rate on Fixed Rate Debt Repaid
$ 14,812  6.10  %

During the six months ended June 30, 2022, we issued three mortgages, collateralized by seven properties, which is summarized in the table below (dollars in thousands):

.
Aggregate Fixed Rate Debt Issued Weighted Average Interest Rate on Fixed Rate Debt
$ 20,000  (1) 3.70  %
(1)We issued $10.0 million of fixed rate debt in connection with the two-property portfolio acquired on May 4, 2022 with a maturity date of May 4, 2027. The interest rate is fixed at 4.00%. We issued $10.0 million of fixed rate debt in connection with the three-property acquisition on May 12, 2022 with a maturity date of June 1, 2032. The interest rate is fixed at 3.40%.

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%.

During the six months ended June 30, 2022, we extended the maturity date of two mortgages, collateralized by four properties, which is summarized in the table below (dollars in thousands):

Fixed Rate Debt Extended Interest Rate on Fixed Rate Debt Extended Extension Term
$ 3,585  5.13  % 1.0 year

Variable Rate Debt Extended Interest Rate on Variable Rate Debt Extended Extension Term
$ 7,059  LIBOR + 2.75% 1.0 year
Schedule of Principal Payments of Mortgage Notes Payable
Scheduled principal payments of mortgage notes payable for the six months ending December 31, 2022, and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):
 
Year Scheduled Principal Payments
Six Months Ending December 31, 2022 $ 72,877 
2023 83,556 
2024 60,858 
2025 38,534 
2026 43,693 
2027 78,414 
Thereafter 87,895 
Total $ 465,827  (1)
(1)This figure does not include $(0.1) million of premiums and (discounts), net, and $2.9 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 the interest rate caps at June 30, 2022 and December 31, 2021 (dollars in thousands):
 
June 30, 2022 December 31, 2021
Aggregate Cost Aggregate Notional Amount Aggregate Fair Value Aggregate Notional Amount Aggregate Fair Value
$ 1,228  (1) $ 233,481  $ 3,089  $ 233,632  $ 324 
(1)We have entered into various interest rate cap agreements on variable rate debt with LIBOR caps ranging from 1.50% to 2.75%.
The following table summarizes our interest rate swaps at June 30, 2022 and December 31, 2021 (dollars in thousands):
June 30, 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
$ 72,629  $ 3,888  $ (156) $ 73,212  $ 841  $ (1,217)
Schedule of Derivative Instruments
The following table presents the impact of our derivative instruments in the condensed consolidated financial statements (dollars in thousands):

Amount of gain (loss) recognized in Comprehensive Income
Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Derivatives in cash flow hedging relationships
Interest rate caps $ 1,138  $ (31) $ 2,762  $ 23 
Interest rate swaps 1,465  (689) 4,108  1,681 
Total $ 2,603  $ (720) $ 6,870  $ 1,704 

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 June 30, 2022 December 31, 2021
Interest rate caps Other assets $ 3,089  $ 324 
Interest rate swaps Other assets 3,888  841 
Interest rate swaps Other liabilities (156) (1,217)
Total derivative liabilities, net $ 6,821  $ (52)