Mortgage Notes Payable and Credit Facility (Tables)
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12 Months Ended |
Dec. 31, 2019 |
|---|
| Debt Disclosure [Abstract] |
|
| Company's Mortgage Notes Payable and Credit Facility |
Our mortgage notes payable and Credit Facility as of December 31, 2019 and December 31, 2018 are summarized below (dollars in thousands):
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
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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 |
|
|
December 31, 2019 |
|
December 31, 2019 |
|
December 31, 2018 |
|
December 31, 2019 |
|
December 31, 2019 |
Mortgage and other secured loans: |
|
|
|
|
|
|
|
|
|
|
Fixed rate mortgage loans |
|
58 |
|
|
$ |
412,771 |
|
|
$ |
385,051 |
|
|
(1) |
|
(2) |
Variable rate mortgage loans |
|
12 |
|
|
45,151 |
|
|
60,659 |
|
|
(3) |
|
(2) |
Premiums and discounts, net |
|
- |
|
|
(239 |
) |
|
(301 |
) |
|
N/A |
|
N/A |
Deferred financing costs, mortgage loans, net |
|
- |
|
|
(3,944 |
) |
|
(4,063 |
) |
|
N/A |
|
N/A |
Total mortgage notes payable, net |
|
70 |
|
|
$ |
453,739 |
|
|
$ |
441,346 |
|
|
(4) |
|
|
Variable rate revolving credit facility |
|
46 |
|
(6) |
$ |
52,400 |
|
|
$ |
50,600 |
|
|
LIBOR + 1.65% |
|
7/2/2023 |
Deferred financing costs, revolving credit facility |
|
- |
|
|
(821 |
) |
|
(516 |
) |
|
N/A |
|
N/A |
Total revolver, net |
|
46 |
|
|
$ |
51,579 |
|
|
$ |
50,084 |
|
|
|
|
|
Variable rate term loan facility |
|
- |
|
|
$ |
122,300 |
|
|
$ |
75,000 |
|
|
LIBOR + 1.60% |
|
7/2/2024 |
Deferred financing costs, term loan facility |
|
- |
|
|
(1,024 |
) |
|
(371 |
) |
|
N/A |
|
N/A |
Total term loan, net |
|
N/A |
|
|
$ |
121,276 |
|
|
$ |
74,629 |
|
|
|
|
|
Total mortgage notes payable and credit facility |
|
116 |
|
|
$ |
626,594 |
|
|
$ |
566,059 |
|
|
(5) |
|
|
|
|
(1) |
Interest rates on our fixed rate mortgage notes payable vary from 3.42% to 6.63%.
|
|
|
(2) |
We have 54 mortgage notes payable with maturity dates ranging from 7/1/2020 through 8/1/2037.
|
|
|
(3) |
Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.00% to one month LIBOR +2.75%. At December 31, 2019, one month LIBOR was approximately 1.76%.
|
|
|
(4) |
The weighted average interest rate on the mortgage notes outstanding at December 31, 2019, was approximately 4.49%.
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|
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(5) |
The weighted average interest rate on all debt outstanding at December 31, 2019, was approximately 4.18%.
|
|
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(6) |
The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 46 unencumbered properties as of December 31, 2019.
|
N/A - Not Applicable
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| Schedule of Repaid Debt |
During the year ended December 31, 2019, we partially repaid one mortgage collateralized by three properties, releasing one of the collateralized properties that we sold on January 31, 2019, and fully repaid four mortgages collateralized by eight properties, all of which are summarized below (dollars in thousands):
|
|
|
|
|
|
|
Aggregate Fixed Rate Debt Repaid |
|
Weighted Average Interest Rate on Fixed Rate Debt Repaid |
$ |
31,385 |
|
|
4.55 |
% |
|
|
|
|
|
|
|
Aggregate Variable Rate Debt Repaid |
|
Weighted Average Interest Rate on Variable Rate Debt Repaid |
$ |
13,600 |
|
|
LIBOR + |
2.47% |
|
| Summary of Long-Term Mortgages |
During the year ended December 31, 2019, we issued 11 mortgages, collateralized by 11 properties, which are summarized below (dollars in thousands):
|
|
|
|
|
|
|
Aggregate Fixed Rate Debt Issued |
|
Weighted Average Interest Rate on Fixed Rate Debt |
$ |
69,650 |
|
(1) |
3.90 |
% |
|
|
(1) |
We issued $10.6 million of fixed rate debt in connection with one property acquired on December 27, 2018, with a maturity date of February 8, 2029. The interest rate is fixed at 4.7% for the first seven years of the mortgage. After the fixed interest rate period expires, we have the option to adjust the interest rate to a fixed interest rate equal to 1.8%, plus the three-year treasury rate per annum, or a variable interest rate equal to 1.8%, plus the 30 day LIBOR rate per annum. On May 31, 2019, we issued $21.6 million of floating rate debt swapped to fixed rate debt of 3.42% in connection with refinancing mortgage debt on one property with a new maturity date of June 1, 2024. We issued $8.9 million of fixed rate debt in connection with our June 18, 2019 property acquisition with a maturity date of June 18, 2024 and a rate of 4.35%. We issued $4.8 million of fixed rate debt in connection with our December 16, 2019 property acquisition with a maturity date of December 10, 2026 and a rate of 3.97%. We issued $4.2 million of fixed rate debt in connection with our December 17, 2019 property acquisition with a maturity date of December 17, 2026 and a rate of 3.97%. We issued an aggregate $19.5 million of fixed rate debt in connection with our December 17, 2019 six property portfolio acquisition with a maturity date of January 1, 2027 and a rate of 3.75%.
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During the year ended December 31, 2019, we extended the maturity dates of two mortgages, collateralized by four properties, which are summarized below (dollars in thousands):
|
|
|
|
|
|
|
|
|
Aggregate Variable Rate Debt Extended |
|
Weighted Average Interest Rate on Variable Rate Debt Extended |
|
Weighted Average Extension Term |
$ |
12,561 |
|
|
LIBOR + |
2.51% |
|
2.4 years |
|
| Schedule of Principal Payments of Mortgage Notes Payable |
Scheduled principal payments of mortgage notes payable for each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):
|
|
|
|
|
|
|
Year |
|
Scheduled Principal Payments |
|
2020 |
|
$ |
31,259 |
|
|
2021 |
|
38,554 |
|
|
2022 |
|
106,933 |
|
|
2023 |
|
71,238 |
|
|
2024 |
|
48,318 |
|
|
Thereafter |
|
161,620 |
|
|
|
|
$ |
457,922 |
|
(1) |
|
|
(1) |
This figure is does not include $(0.2) million premiums and (discounts), net, and $3.9 million of deferred financing costs, which are reflected in mortgage notes payable on the consolidated balance sheet.
|
|
| Summary of Interest Rate Cap Agreement |
The following table summarizes the interest rate caps at December 31, 2019 and 2018 (dollars in thousands):
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December 31, 2019 |
|
December 31, 2018 |
Aggregate Cost |
|
Aggregate Notional Amount |
|
Aggregate Fair Value |
|
Aggregate Notional Amount |
|
Aggregate Fair Value |
$ |
1,596 |
|
(1) |
$ |
166,728 |
|
|
$ |
250 |
|
|
$ |
134,678 |
|
|
$ |
622 |
|
|
|
(1) |
We have entered into various interest rate cap agreements on new variable rate debt with LIBOR caps ranging from 2.50% to 3.25%.
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We have assumed or entered into interest rate swap agreements in connection with certain of our acquisitions, whereby we will pay our counterparty a fixed interest rate on a monthly basis, and receive payments from our counterparty equivalent to the stipulated floating rate. The fair value of our interest rate swap agreements are recorded in other liabilities on our accompanying consolidated balance sheets. We have designated our interest rate swaps as cash flow hedges, and we record changes in the fair value of the respective interest rate swap agreement to accumulated other comprehensive income on the consolidated balance sheets. We record changes in fair value on a quarterly basis, using current market valuations at quarter end. The following table summarizes our interest rate swaps at December 31, 2019 and 2018 (dollars in thousands):
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December 31, 2019 |
|
December 31, 2018 |
Aggregate Notional Amount |
|
Aggregate Fair Value Asset |
|
Aggregate Fair Value Liability |
|
Aggregate Notional Amount |
|
Aggregate Fair Value Asset |
|
Aggregate Fair Value Liability |
$ |
45,777 |
|
|
$ |
— |
|
|
$ |
(1,173 |
) |
|
$ |
24,732 |
|
|
$ |
451 |
|
|
$ |
(396 |
) |
|
| Schedule of Derivative Instruments |
The following tables present the impact of our derivative instruments in the consolidated financial statements (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of (Loss) Gain, net recognized in Comprehensive Income |
|
|
2019 |
|
2018 |
|
2017 |
Derivatives in cash flow hedging relationships |
|
|
|
|
|
|
Interest rate caps |
|
$ |
(749 |
) |
|
$ |
77 |
|
|
$ |
(239 |
) |
Interest rate swaps |
|
(1,229 |
) |
|
(260 |
) |
|
274 |
|
Total |
|
$ |
(1,978 |
) |
|
$ |
(183 |
) |
|
$ |
35 |
|
The following table sets forth certain information regarding our derivative instruments (dollars in thousands):
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|
|
|
|
|
|
|
|
|
|
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Asset (Liability) Derivatives Fair Value at |
Derivatives Designated as Hedging Instruments |
|
Balance Sheet Location |
|
December 31, 2019 |
|
|
December 31, 2018 |
|
Interest rate caps |
|
Other assets |
|
$ |
250 |
|
|
$ |
552 |
|
Interest rate swaps |
|
Other assets |
|
— |
|
|
451 |
|
Interest rate swaps |
|
Other liabilities |
|
(1,173 |
) |
|
(396 |
) |
|
|
|
|
|
|
|
Derivatives Not Designated as Hedging Instruments |
|
|
|
|
|
|
Interest rate caps |
|
Other assets |
|
$ |
— |
|
|
70 |
|
|
|
|
|
|
|
|
Total derivative (liabilities) assets |
|
|
|
$ |
(923 |
) |
|
$ |
677 |
|
|