Mortgage Notes Payable and Credit Facility (Tables)
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9 Months Ended |
Sep. 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 September 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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September 30, 2017 |
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September 30, 2017 |
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December 31, 2016 |
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September 30, 2017 |
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September 30, 2017 |
Mortgage and other secured loans: |
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Fixed rate mortgage loans |
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48 |
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$ |
385,555 |
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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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69,835 |
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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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(262 |
) |
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217 |
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N/A |
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N/A |
Deferred financing costs, mortgage loans, net |
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- |
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(5,096 |
) |
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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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67 |
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$ |
450,032 |
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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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$ |
44,200 |
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$ |
39,700 |
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LIBOR + 2.00% |
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8/7/2018 |
Deferred financing costs, revolving credit facility |
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- |
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(267 |
) |
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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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$ |
43,933 |
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$ |
39,225 |
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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 + 1.95% |
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10/5/2020 |
Deferred financing costs, term loan facility |
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- |
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(88 |
) |
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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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$ |
24,912 |
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$ |
24,892 |
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Total mortgage notes payable and credit facility |
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91 |
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$ |
518,877 |
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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 45 mortgage notes payable with maturity dates ranging from 12/1/2017 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 September 30, 2017, one month LIBOR was approximately 1.24%.
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(4) |
The weighted average interest rate on the mortgage notes outstanding at September 30, 2017 was approximately 4.52%.
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(5) |
The weighted average interest rate on all debt outstanding at September 30, 2017 was approximately 4.34%.
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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 September 30, 2017.
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N/A - Not Applicable
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| Summary of Long-Term Mortgages |
During the nine months ended September 30, 2017, we repaid four mortgages, collateralized by ten 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 |
$ |
41,077 |
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6.25% |
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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 nine months ended September 30, 2017, we issued or assumed four mortgages, collateralized by seven properties, and drew an additional advance on an existing mortgage note, collateralized by one property, 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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$ |
54,887 |
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(1) |
3.78% |
(2) |
$ |
7,500 |
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(3) |
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(1) |
We issued or assumed $54.9 million of fixed rate or swapped to fixed rate debt in connection with our five property acquisitions with maturity dates ranging from April 1, 2026 to August 10, 2027.
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(2) |
We assumed an interest rate swap in connection with one property acquisition and will be paying an all in fixed rate of 3.55%. The newly issued fixed rate mortgages have rates ranging from 3.75% to 3.89%.
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(3) |
The interest rate for our issued variable rate mortgage debt is equal to one month LIBOR plus a spread of 2.75%. The maturity date on this new variable rate debt is May 15, 2020. We have entered into a rate cap agreement on our new variable rate debt and will record all fair value changes into interest expense on the condensed consolidated statement of operations and other comprehensive income (loss). The interest rate for our additional advance on the existing mortgage note is equal to one month LIBOR plus a spread of 2.50% and the maturity date is December 1, 2021.
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| Schedule of Principal Payments of Mortgage Notes Payable |
Scheduled principal payments of mortgage notes payable for the remainder of 2017, and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):
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Year |
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Scheduled Principal Payments |
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Three Months Ending December 31, 2017 |
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$ |
10,405 |
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2018 |
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47,806 |
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2019 |
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47,474 |
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2020 |
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19,387 |
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2021 |
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33,367 |
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2022 |
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97,187 |
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Thereafter |
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199,764 |
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Total |
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$ |
455,390 |
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(1) |
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(1) |
This figure does not include $0.3 million of premiums and (discounts), net, and $5.1 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 September 30, 2017 and December 31, 2016 (dollars in thousands):
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September 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 |
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(1) |
$ |
93,920 |
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$ |
49 |
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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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