Quarterly report pursuant to Section 13 or 15(d)

Mortgage Notes Payable and Credit Facility (Tables)

v3.10.0.1
Mortgage Notes Payable and Credit Facility (Tables)
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Company's Mortgage Notes Payable and Line of Credit
Our mortgage notes payable and Credit Facility as of June 30, 2018 and December 31, 2017 are summarized below (dollars in thousands):
 
 
 
Encumbered properties at
 
 
 
Carrying Value at
 
Stated Interest Rates at
 
Scheduled Maturity Dates at
 
 
June 30, 2018
 
 
 
June 30, 2018
 
December 31, 2017
 
June 30, 2018

June 30, 2018
Mortgage and other secured loans:
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate mortgage loans
 
48

 
 
 
$
378,287

 
$
383,189

 
(1)
 
(2)
Variable rate mortgage loans
 
18

 
 
 
61,590

 
69,302

 
(3)
 
(2)
Premiums and discounts, net
 
-

 
 
 
(334
)
 
(281
)
 
N/A
 
N/A
Deferred financing costs, mortgage loans, net
 
-

 
 
 
(4,470
)
 
(4,830
)
 
N/A
 
N/A
Total mortgage notes payable, net
 
66

 
 
 
$
435,073

 
$
447,380

 
(4)
 
 
Variable rate revolving credit facility
 
32

 
(6)
 
$
33,400

 
$
21,400

 
LIBOR + 1.75%
 
10/27/2021
Deferred financing costs, revolving credit facility
 
-

 
 
 
(592
)
 
(685
)
 
N/A
 
N/A
Total revolver, net
 
32

 
 
 
$
32,808

 
$
20,715

 
 
 
 
Variable rate term loan facility
 
-

 
(6)
 
$
75,000

 
$
75,000

 
LIBOR + 1.70%
 
10/27/2022
Deferred financing costs, term loan facility
 
-

 
 
 
(420
)
 
(468
)
 
N/A
 
N/A
Total term loan, net
 
N/A

 
 
 
$
74,580

 
$
74,532

 
 
 
 
Total mortgage notes payable and credit facility
 
98

 
 
 
$
542,461

 
$
542,627

 
(5)
 
 
 
(1)
Interest rates on our fixed rate mortgage notes payable vary from 3.55% to 6.63%.
(2)
We have 45 mortgage notes payable with maturity dates ranging from 9/30/2018 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 June 30, 2018, one month LIBOR was approximately 2.09%.
(4)
The weighted average interest rate on the mortgage notes outstanding at June 30, 2018 was approximately 4.63%.
(5)
The weighted average interest rate on all debt outstanding at June 30, 2018 was approximately 4.46%.
(6)
The amount we may draw under our senior unsecured revolving credit facility and term loan facility is based on a percentage of the fair value of a combined pool of 32 unencumbered properties as of June 30, 2018.
N/A - Not Applicable
Schedule of Repaid Debt
During the six months ended June 30, 2018, we repaid one mortgage collateralized by one property and partially repaid one mortgage collateralized by two properties, releasing one of the collateralized properties, which are summarized below (dollars in thousands):
 
Variable Rate Debt Repaid
 
Interest Rate on Variable Rate Debt Repaid
 
Fixed Rate Debt Repaid
 
Interest Rate on Fixed Rate Debt Repaid
$
6,738

 
LIBOR +
2.25%
 
$
9,444

 
5.75
%
Summary of Long-Term Mortgages
During the six months ended June 30, 2018, we issued one mortgage, collateralized by one property, which is summarized in the table below (dollars in thousands):

Debt Issued
 
Interest Rate on Debt
 
$
9,380

(1)
4.58%
(2)

(1)
We issued $9.4 million of swapped to fixed rate debt in connection with one property with a maturity date of March 1, 2023.
(2)
We entered into an interest rate swap and will be paying an all in fixed rate of 4.58%.

Schedule of Principal Payments of Mortgage Notes Payable
Scheduled principal payments of mortgage notes payable for the six months ending 2018, and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):
 
Year
 
Scheduled Principal Payments
 
Six Months Ending December 31, 2018
 
$
20,695

 
2019
 
48,038

 
2020
 
31,772

 
2021
 
33,506

 
2022
 
97,333

 
2023
 
69,225

 
Thereafter
 
139,308

 
Total
 
$
439,877

(1)

(1)
This figure does not include $0.3 million of premiums and discounts, net, and $4.5 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 June 30, 2018 and December 31, 2017 (dollars in thousands):
 
 
 
June 30, 2018
 
December 31, 2017
Aggregate Cost
 
Aggregate Notional Amount
 
Aggregate Fair Value
 
Aggregate Notional Amount
 
Aggregate Fair Value
$
1,111

(1)
$
135,671

 
$
1,115

 
$
143,512

 
$
504


(1)
We have entered into various interest rate cap agreements on variable rate debt with LIBOR caps ranging from 2.25% to 3.25%.
Schedule of Derivative Instruments
The following table sets forth certain information regarding our derivative instruments (dollars in thousands):

 
 
 
 
Asset Derivatives Fair Value at
Derivatives Designated as Hedging Instruments
 
Balance Sheet Location
 
June 30, 2018

 
December 31, 2017

Interest rate caps
 
Other assets
 
$
920

 
$
450

 
 
 
 
 
 
 
Derivatives Not Designated as Hedging Instruments
 
 
 
 
 
 
Interest rate caps
 
Other assets
 
$
195

 
$
54

 
 
 
 
 
 
 
Total derivatives
 
 
 
$
1,115

 
$
504

The following tables present the impact of our derivative instruments in the condensed consolidated financial statements (dollars in thousands):

 
 
Amount of Gain recognized in Comprehensive Income
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2018
 
2017
 
2018
 
2017
Derivatives in cash flow hedging relationships
 
 
 
 
 
 
 
 
Interest rate caps
 
$
97

 
$

 
$
470

 
$

Interest rate swap
 
192

 
179

 
313

 
179

 
 
 
 
 
 
 
 
 
Total
 
$
289

 
$
179

 
$
783

 
$
179