Quarterly report pursuant to Section 13 or 15(d)

Mortgage Notes Payable and Credit Facility (Tables)

v3.23.3
Mortgage Notes Payable and Credit Facility (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Company's Mortgage Notes Payable and Line of Credit
Our mortgage notes payable and Credit Facility as of September 30, 2023 and December 31, 2022 are summarized below (dollars in thousands):

Encumbered properties at Carrying Value at Stated Interest Rates at Scheduled Maturity Dates at
September 30, 2023 September 30, 2023 December 31, 2022 September 30, 2023 September 30, 2023
Mortgage and other secured loans:
Fixed rate mortgage loans 49  $ 313,400  $ 362,037  (1) (2)
Premiums and discounts, net —  (52) (83) N/A N/A
Deferred financing costs, mortgage loans, net —  (2,374) (2,565) N/A N/A
Total mortgage notes payable, net 49  $ 310,974  $ 359,389  (3)
Variable rate revolving credit facility 82  (6) $ 70,950  $ 23,250 
SOFR + 1.50%
 (4) 8/18/2026
Total revolver 82  $ 70,950  $ 23,250 
Variable rate term loan facility A —  (6) $ 160,000  $ 160,000 
SOFR + 1.45%
 (4) 8/18/2027
Variable rate term loan facility B —  (6) 60,000  60,000 
SOFR + 1.45%
 (4) 2/11/2026
Variable rate term loan facility C —  (6) 150,000  150,000 
SOFR + 1.45%
 (4) 2/18/2028
Deferred financing costs, term loan facility —  (2,915) (3,433) N/A N/A
Total term loan, net N/A $ 367,085  $ 366,567 
Total mortgage notes payable and credit facility 131  $ 749,009  $ 749,206  (5)
(1)As of September 30, 2023, interest rates on our fixed rate mortgage notes payable varied from 2.80% to 6.63%.
(2)As of September 30, 2023, we had 43 mortgage notes payable with maturity dates ranging from January 1, 2024 through August 1, 2037.
(3)The weighted average interest rate on the mortgage notes outstanding as of September 30, 2023 was approximately 4.20%.
(4)As of September 30, 2023, Secured Overnight Financing Rate (“SOFR”) was approximately 5.31%.
(5)The weighted average interest rate on all debt outstanding as of September 30, 2023 was approximately 5.70%.
(6)The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 82 unencumbered properties as of September 30, 2023.
N/A - Not Applicable
Summary of Long-Term Mortgages During the nine months ended September 30, 2023, we repaid four mortgages, collateralized by four properties, which are summarized in the table below (dollars in thousands):
Fixed Rate Debt Repaid Interest Rate on Fixed Rate Debt Repaid
$ 46,530  4.78  %

During the nine months ended September 30, 2023, we issued three mortgages, collateralized by three properties, which are summarized in the table below (dollars in thousands):

Aggregate Fixed Rate Debt Issued Weighted Average Interest Rate on Fixed Rate Debt
$ 9,000  6.10  %

During the nine months ended September 30, 2023, we extended the maturity date of one mortgage, collateralized by one property, which is summarized in the table below (dollars in thousands):

Fixed Rate Debt Extended Interest Rate on Fixed Rate Debt Extended Extension Term
$ 8,769  6.50  % 1.0 year
Schedule of Principal Payments of Mortgage Notes Payable
Scheduled principal payments of mortgage notes payable for the three months ending December 31, 2023, 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, 2023 $ 11,995 
2024 28,400 
2025 36,420 
2026 35,084 
2027 95,040 
2028 37,116 
Thereafter 69,345 
Total $ 313,400  (1)
(1)This figure does not include $(0.1) million of premiums and (discounts), net, and $2.4 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 September 30, 2023 and December 31, 2022 (dollars in thousands):
 
September 30, 2023 December 31, 2022
Aggregate Cost Aggregate Notional Amount Aggregate Fair Value Aggregate Notional Amount Aggregate Fair Value
$ 141  (1) $ 65,000  $ 1,340  $ 225,000  $ 4,629 
(1)We have entered into various interest rate cap agreements on variable rate debt with SOFR caps ranging from 1.49% to 1.75%.
The following table summarizes our interest rate swaps at September 30, 2023 and December 31, 2022 (dollars in thousands):
September 30, 2023 December 31, 2022
Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability
$ 361,969  $ 17,015  $ —  $ 362,832  $ 8,264  $ (897)
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, net, recognized in Comprehensive Income
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Derivatives in cash flow hedging relationships
Interest rate caps $ (654) $ 1,758  $ (2,429) $ 4,520 
Interest rate swaps 5,743  5,032  9,647  9,140 
Total $ 5,089  $ 6,790  $ 7,218  $ 13,660 

The following table presents the reclassifications of our derivative instruments out of accumulated other comprehensive income into interest expense in the condensed consolidated financial statements (dollars in thousands):

Amount reclassified out of Accumulated Other Comprehensive Income
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Interest rate caps $ 409  $ (52) $ 937  $ (52)
Total $ 409  $ (52) $ 937  $ (52)

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 September 30, 2023 December 31, 2022
Interest rate caps Other assets $ 1,340  $ 4,629 
Interest rate swaps Other assets 17,015  8,264 
Interest rate swaps Other liabilities —  (897)
Total derivative liabilities, net $ 18,355  $ 11,996