Mortgage Notes Payable, Revolving Credit Facility, and Term Loan Facility (Tables)
|
12 Months Ended |
Dec. 31, 2018 |
|---|
| Debt Disclosure [Abstract] |
|
| Company's Mortgage Notes Payable and Credit Facility |
Our mortgage notes payable and Credit Facility as of December 31, 2018 and December 31, 2017 are summarized below (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2018 |
|
December 31, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2018 |
Mortgage and other secured loans: |
|
|
|
|
|
|
|
|
|
|
Fixed rate mortgage loans |
|
50 |
|
|
$ |
385,051 |
|
|
$ |
383,189 |
|
|
(1) |
|
(2) |
Variable rate mortgage loans |
|
18 |
|
|
60,659 |
|
|
69,302 |
|
|
(3) |
|
(2) |
Premiums and discounts, net |
|
- |
|
|
(301 |
) |
|
(281 |
) |
|
N/A |
|
N/A |
Deferred financing costs, mortgage loans, net |
|
- |
|
|
(4,063 |
) |
|
(4,830 |
) |
|
N/A |
|
N/A |
Total mortgage notes payable, net |
|
68 |
|
|
$ |
441,346 |
|
|
$ |
447,380 |
|
|
(4) |
|
|
Variable rate revolving credit facility |
|
32 |
|
(6) |
$ |
50,600 |
|
|
$ |
21,400 |
|
|
LIBOR + 1.75% |
|
10/27/2021 |
Deferred financing costs, revolving credit facility |
|
- |
|
|
(516 |
) |
|
(685 |
) |
|
N/A |
|
N/A |
Total revolver, net |
|
32 |
|
|
$ |
50,084 |
|
|
$ |
20,715 |
|
|
|
|
|
Variable rate term loan facility |
|
- |
|
|
$ |
75,000 |
|
|
$ |
75,000 |
|
|
LIBOR + 1.70% |
|
10/27/2022 |
Deferred financing costs, term loan facility |
|
- |
|
|
(371 |
) |
|
(468 |
) |
|
N/A |
|
N/A |
Total term loan, net |
|
N/A |
|
|
$ |
74,629 |
|
|
$ |
74,532 |
|
|
|
|
|
Total mortgage notes payable and credit facility |
|
100 |
|
|
$ |
566,059 |
|
|
$ |
542,627 |
|
|
(5) |
|
|
|
|
(1) |
Interest rates on our fixed rate mortgage notes payable vary from 3.55% to 6.63%.
|
|
|
(2) |
We have 47 mortgage notes payable with maturity dates ranging from 4/22/2019 through 7/1/2045.
|
|
|
(3) |
Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.25% to one month LIBOR +2.75%. At December 31, 2018, one month LIBOR was approximately 2.52%.
|
|
|
(4) |
The weighted average interest rate on the mortgage notes outstanding at December 31, 2018, was approximately 4.69%.
|
|
|
(5) |
The weighted average interest rate on all debt outstanding at December 31, 2018, was approximately 4.59%.
|
|
|
(6) |
The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 32 unencumbered properties as of December 31, 2018.
|
N/A - Not Applicable
|
| Schedule of Repaid Debt |
During the year ended December 31, 2018, we repaid two mortgages collateralized by two properties, which are summarized below (dollars in thousands):
|
|
|
|
|
|
|
Fixed Rate Debt Repaid |
|
Interest Rate on Fixed Rate Debt Repaid |
$ |
9,444 |
|
|
5.75 |
% |
|
|
|
|
|
|
|
Variable Rate Debt Repaid |
|
Interest Rate on Variable Rate Debt Repaid |
$ |
6,738 |
|
|
LIBOR + |
2.25% |
|
| Summary of Long-Term Mortgages |
During the year ended December 31, 2018, we issued or assumed three mortgages, collateralized by three properties, which are summarized below (dollars in thousands):
|
|
|
|
|
|
|
|
Aggregate Fixed Rate Debt Issued or Assumed |
|
Weighted Average Interest Rate on Fixed Rate Debt |
|
$ |
21,043 |
|
(1) |
4.76 |
% |
(2) |
|
|
(1) |
We issued or assumed $21.0 million of fixed rate, or swapped to fixed rate, debt in connection with two of our five property acquisitions in 2018 and one of our property acquisitions in 2017, with maturity dates ranging from March 1, 2023 to August 1, 2037.
|
|
|
(2) |
We entered into interest rate swaps in connection with two of the new mortgages and will be paying an all-in fixed rate of 4.58% and 5.32%, respectively. In addition, we assumed a fixed rate mortgage with an interest rate of 4.63%.
|
During the year ended December 31, 2018, we extended the maturity dates of four mortgages, collateralized by nine properties, which are summarized below (dollars in thousands):
|
|
|
|
|
|
|
|
|
Aggregate Fixed Rate Debt Extended |
|
Weighted Average Interest Rate on Fixed Rate Debt Extended |
|
Weighted Average Extension Term |
$ |
3,598 |
|
|
4.92 |
% |
|
3.0 years |
|
|
|
|
|
|
|
|
|
Aggregate Variable Rate Debt Extended |
|
Weighted Average Interest Rate on Variable Rate Debt Extended |
|
Weighted Average Extension Term |
$ |
24,832 |
|
|
LIBOR + |
2.29% |
|
1.5 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 |
|
2019 |
|
$ |
59,821 |
|
|
2020 |
|
32,256 |
|
|
2021 |
|
37,188 |
|
|
2022 |
|
97,718 |
|
|
2023 |
|
69,629 |
|
|
Thereafter |
|
149,098 |
|
|
|
|
$ |
445,710 |
|
(1) |
|
|
(1) |
This figure is does not include $(0.3) million premiums and (discounts), net, and $4.1 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, 2018 and 2017 (dollars in thousands):
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|
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|
|
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|
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|
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|
|
|
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|
December 31, 2018 |
|
December 31, 2017 |
Aggregate Cost |
|
Aggregate Notional Amount |
|
Aggregate Fair Value |
|
Aggregate Notional Amount |
|
Aggregate Fair Value |
$ |
1,105 |
|
(1) |
$ |
134,678 |
|
|
$ |
622 |
|
|
$ |
143,512 |
|
|
$ |
504 |
|
|
|
(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%.
|
|
| Schedule of Derivative Instruments |
The following tables present the impact of our derivative instruments in the consolidated financial statements (dollars in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of Gain (Loss), net recognized in Comprehensive Income |
|
|
2018 |
|
2017 |
|
2016 |
Derivatives in cash flow hedging relationships |
|
|
|
|
|
|
Interest rate caps |
|
$ |
77 |
|
|
$ |
(239 |
) |
|
$ |
— |
|
Interest rate swaps |
|
(260 |
) |
|
274 |
|
|
— |
|
Total |
|
$ |
(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 Derivatives Fair Value at |
Derivatives Designated as Hedging Instruments |
|
Balance Sheet Location |
|
December 31, 2018 |
|
|
December 31, 2017 |
|
Interest rate caps |
|
Other assets |
|
$ |
552 |
|
|
$ |
450 |
|
Interest rate swaps |
|
Other assets |
|
451 |
|
|
316 |
|
Interest rate swaps |
|
Other liabilities |
|
(396 |
) |
|
— |
|
|
|
|
|
|
|
|
Derivatives Not Designated as Hedging Instruments |
|
|
|
|
|
|
Interest rate caps |
|
Other assets |
|
$ |
70 |
|
|
54 |
|
|
|
|
|
|
|
|
Total derivatives |
|
|
|
$ |
677 |
|
|
$ |
820 |
|
|