Mortgage Notes Payable and Credit Facility (Tables)
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6 Months Ended |
Jun. 30, 2017 |
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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 June 30, 2017 and December 31, 2016 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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June 30, 2017 |
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June 30, 2017 |
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December 31, 2016 |
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June 30, 2017 |
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June 30, 2017 |
Mortgage and other secured loans: |
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Fixed rate mortgage loans |
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47 |
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|
$ |
357,997 |
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|
$ |
378,477 |
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(1) |
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(2) |
Variable rate mortgage loans |
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19 |
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|
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69,493 |
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|
71,707 |
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(3) |
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(2) |
Premiums and discounts, net |
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- |
|
|
|
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(242 |
) |
|
217 |
|
|
N/A |
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N/A |
Deferred financing costs, mortgage loans, net |
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- |
|
|
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(4,850 |
) |
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(5,123 |
) |
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N/A |
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N/A |
Total mortgage notes payable, net |
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66 |
|
|
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$ |
422,398 |
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|
$ |
445,278 |
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(4) |
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Variable rate revolving credit facility |
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24 |
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(6) |
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$ |
37,800 |
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$ |
39,700 |
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LIBOR + 2.25% |
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8/7/2018 |
Deferred financing costs, revolving credit facility |
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- |
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(322 |
) |
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(475 |
) |
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N/A |
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N/A |
Total revolver, net |
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24 |
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$ |
37,478 |
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$ |
39,225 |
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|
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Variable rate term loan facility |
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- |
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(6) |
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$ |
25,000 |
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$ |
25,000 |
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LIBOR + 2.20% |
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10/5/2020 |
Deferred financing costs, term loan facility |
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- |
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|
|
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(95 |
) |
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(108 |
) |
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N/A |
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N/A |
Total term loan, net |
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N/A |
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$ |
24,905 |
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$ |
24,892 |
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Total mortgage notes payable and credit facility |
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90 |
|
|
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$ |
484,781 |
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$ |
509,395 |
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(5) |
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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 44 mortgage notes payable with maturity dates ranging from 11/8/2017 through 7/1/2045.
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(3) |
Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.15% to one month LIBOR + 2.75%. At June 30, 2017, one month LIBOR was approximately 1.23%.
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(4) |
The weighted average interest rate on the mortgage notes outstanding at June 30, 2017 was approximately 4.65%.
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(5) |
The weighted average interest rate on all debt outstanding at June 30, 2017 was approximately 4.50%.
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(6) |
The amount we may draw under our Revolver and Term Loan is based on a percentage of the fair value of a combined pool of 24 unencumbered properties as of June 30, 2017.
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N/A - Not Applicable
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| Summary of Long-Term Mortgages |
During the six months ended June 30, 2017, we repaid 3 mortgages, collateralized by 7 properties, which are aggregated below (dollars in thousands):
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Aggregate Fixed Rate Debt Repaid |
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Weighted Average Interest Rate on Fixed Rate Debt Repaid |
$ |
27,188 |
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|
6.05% |
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Aggregate Variable Rate Debt Repaid |
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Weighted Average Interest Rate on Variable Rate Debt Repaid |
$ |
8,163 |
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LIBOR + |
2.50% |
During the six months ended June 30, 2017, we issued or assumed 2 mortgages, collateralized by 3 properties, which are aggregated in the table below (dollars in thousands):
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Aggregate Fixed Rate Debt Issued or Assumed |
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Weighted Average Interest Rate on Fixed Rate Debt |
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Aggregate Variable Rate Debt Issued or Assumed |
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$ |
11,179 |
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(1) |
3.55% |
(2) |
$ |
6,700 |
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(3) |
(1) We assumed $11.2 million of debt in connection with our property acquisition with a maturity date of April 1, 2026.
(2) We assumed an interest rate swap in connection with our property acquisition and will be paying an all in fixed rate of 3.55%.
(3) The interest rate for our issued variable rate mortgage debt is equal to one month LIBOR plus a spread of 2.75%. The maturity date on this new variable rate debt is May 15, 2020. We have entered into a rate cap agreement on our new variable rate debt and will record all fair value changes into interest expense on the condensed consolidated statement of operations.
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| Schedule of Principal Payments of Mortgage Notes Payable |
Scheduled principal payments of mortgage notes payable for the remainder of 2017, and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):
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Year |
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Scheduled Principal Payments |
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Six Months Ending December 31, 2017 |
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$ |
26,784 |
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2018 |
|
47,091 |
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2019 |
|
46,732 |
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2020 |
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18,619 |
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2021 |
|
31,868 |
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2022 |
|
96,258 |
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Thereafter |
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160,138 |
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Total |
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$ |
427,490 |
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(1) |
(1) This figure does not include $0.2 million of premiums and (discounts), net, and $4.8 million of deferred financing costs, which are reflected in mortgage notes payable on the condensed consolidated balance sheet.
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| Summary of Interest Rate Cap Agreement |
The following table summarizes the interest rate caps at June 30, 2017 and December 31, 2016 (dollars in thousands):
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June 30, 2017 |
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December 31, 2016 |
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 |
$ |
482 |
|
(1) |
$ |
94,411 |
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|
$ |
72 |
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|
$ |
71,721 |
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$ |
101 |
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(1) We have entered into various interest rate cap agreements on variable rate debt with LIBOR caps ranging from 2.50% to 3.00%.
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