Quarterly report pursuant to Section 13 or 15(d)

Mortgage Notes Payable and Credit Facility (Tables)

v3.20.2
Mortgage Notes Payable and Credit Facility (Tables)
 9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
Company's Mortgage Notes Payable and Line of Credit
Our mortgage notes payable and Credit Facility as of September 30, 2020 and December 31, 2019 are summarized below (dollars in thousands):
Encumbered properties at Carrying Value at Stated Interest Rates at Scheduled Maturity Dates at
September 30, 2020 September 30, 2020 December 31, 2019 September 30, 2020 September 30, 2020
Mortgage and other secured loans:
Fixed rate mortgage loans 61  $ 433,840  $ 412,771  (1) (2)
Variable rate mortgage loans 8  28,270  45,151  (3) (2)
Premiums and discounts, net - (196) (239) N/A N/A
Deferred financing costs, mortgage loans, net - (3,550) (3,944) N/A N/A
Total mortgage notes payable, net 69  $ 458,364  $ 453,739  (4)
Variable rate revolving credit facility 51  (6) $ 43,800  $ 52,400 
LIBOR + 1.65%
 7/2/2023
Deferred financing costs, revolving credit facility - (651) (821) N/A N/A
Total revolver, net 51  $ 43,149  $ 51,579 
Variable rate term loan facility - (6) $ 160,000  $ 122,300 
LIBOR + 1.60%
 7/2/2024
Deferred financing costs, term loan facility - (854) (1,024) N/A N/A
Total term loan, net N/A $ 159,146  $ 121,276 
Total mortgage notes payable and credit facility 120  $ 660,659  $ 626,594  (5)
 
(1)Interest rates on our fixed rate mortgage notes payable vary from 2.80% to 6.63%.
(2)We have 54 mortgage notes payable with maturity dates ranging from 12/1/2020 through 8/1/2037.
(3)Interest rates on our variable rate mortgage notes payable vary from one month LIBOR + 2.25% to one month LIBOR + 2.75%. As of September 30, 2020, one month LIBOR was approximately 0.15%.
(4)The weighted average interest rate on the mortgage notes outstanding as of September 30, 2020 was approximately 4.28%.
(5)The weighted average interest rate on all debt outstanding as of September 30, 2020 was approximately 3.51%.
(6)The amount we may draw under our Credit Facility is based on a percentage of the fair value of a combined pool of 51 unencumbered properties as of September 30, 2020.
N/A - Not Applicable
Summary of Long-Term Mortgages
During the nine months ended September 30, 2020, we repaid four mortgages, collateralized by five properties, which are summarized in the table below (dollars in thousands):
Aggregate Fixed Rate Debt Repaid Interest Rate on Fixed Rate Debt Repaid
$ 5,918  6.00%
Aggregate Variable Rate Debt Repaid Weighted Average Interest Rate on Variable Rate Debt Repaid
$ 16,107  LIBOR + 2.19%

During the nine months ended September 30, 2020, we issued four mortgages, collateralized by four properties, which are summarized in the table below (dollars in thousands):
Aggregate Fixed Rate Debt Issued Weighted Average Interest Rate on Fixed Rate Debt
$ 35,855  (1) 3.22%
(1)We issued $18.3 million of fixed rate debt in connection with the three-property portfolio acquired on January 27, 2020 with a maturity date of February 1, 2030. The interest rate is fixed at 3.625%. On March 9, 2020, we issued $17.5 million of floating rate debt swapped to fixed rate debt of 2.8% in connection with the one property acquisition.
Schedule of Principal Payments of Mortgage Notes Payable
Scheduled principal payments of mortgage notes payable for the three months ending December 31, 2020, and each of the five succeeding years and thereafter are as follows (dollars in thousands):
 
Year Scheduled Principal Payments
Three Months Ending December 31, 2020 $ 6,013 
2021 33,555 
2022 107,719 
2023 72,063 
2024 49,178 
2025 37,118 
Thereafter 156,464 
Total $ 462,110  (1)

(1)This figure does not include $0.2 million of premiums and discounts, net, and $3.5 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 September 30, 2020 and December 31, 2019 (dollars in thousands):
 
September 30, 2020 December 31, 2019
Aggregate Cost Aggregate Notional Amount Aggregate Fair Value Aggregate Notional Amount Aggregate Fair Value
$ 1,537  (1) $ 187,490  $ 17  $ 166,728  $ 250 

(1)We have entered into various interest rate cap agreements on variable rate debt with LIBOR caps ranging from 1.50% to 3.00%.
The following table summarizes our interest rate swaps at September 30, 2020 and December 31, 2019 (dollars in thousands):
September 30, 2020 December 31, 2019
Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability Aggregate Notional Amount Aggregate Fair Value Asset Aggregate Fair Value Liability
$ 62,696  $ —  $ (3,575) $ 45,777  $ —  $ (1,173)
Schedule of Derivative Instruments
The following tables present the impact of our derivative instruments in the condensed consolidated financial statements (dollars in thousands):
Amount of loss recognized in Comprehensive Income
Three Months Ended September 30, Nine Months Ended September 30,
2020 2019 2020 2019
Derivatives in cash flow hedging relationships
Interest rate caps $ (25) $ (187) $ (332) $ (671)
Interest rate swaps 301  (437) (2,401) (1,664)
Total $ 276  $ (624) $ (2,733) $ (2,335)

The following table sets forth certain information regarding our derivative instruments (dollars in thousands):
Asset (Liability) Derivatives Fair Value at
Derivatives Designated as Hedging Instruments Balance Sheet Location September 30, 2020 December 31, 2019
Interest rate caps Other assets $ 17  $ 250 
Interest rate swaps Other liabilities (3,575) (1,173)
Total derivative liabilities, net $ (3,558) $ (923)