Indebtedness

6 Months Ended

Jun. 30, 2019

The following table discloses certain information regarding our indebtedness:



	Outstanding Balance at						Interest Rate at June 30, 2019	Effective Interest Rate at Issuance	Maturity Date
	June 30, 2019			December 31, 2018			Interest Rate at June 30, 2019	Effective Interest Rate at Issuance	Maturity Date
Mortgage Loans Payable, Gross	$	222,274		$	297,610		4.03% – 8.26%	4.03% – 8.26%	December 2019 – August 2028
Unamortized Debt Issuance Costs	(917		)	(1,246		)
Unamortized Premiums	—			106
Mortgage Loans Payable, Net	$	221,357		$	296,470
Senior Unsecured Notes, Gross
2027 Notes	6,070			6,070			7.15%	7.11%	5/15/2027
2028 Notes	31,901			31,901			7.60%	8.13%	7/15/2028
2032 Notes	10,600			10,600			7.75%	7.87%	4/15/2032
2027 Private Placement Notes	125,000			125,000			4.30%	4.30%	4/20/2027
2028 Private Placement Notes	150,000			150,000			3.86%	3.86%	2/15/2028
2029 Private Placement Notes	75,000			75,000			4.40%	4.40%	4/20/2029
2030 Private Placement Notes	150,000			150,000			3.96%	3.96%	2/15/2030
Subtotal	$	548,571		$	548,571
Unamortized Debt Issuance Costs	(3,782		)	(3,990		)
Unamortized Discounts	(74		)	(77		)
Senior Unsecured Notes, Net	$	544,715		$	544,504
Unsecured Term Loans, Gross
2014 Unsecured Term Loan ^(A)	$	200,000		$	200,000		3.39%	N/A	1/29/2021
2015 Unsecured Term Loan ^(A)	260,000			260,000			2.89%	N/A	9/12/2022
Subtotal	$	460,000		$	460,000
Unamortized Debt Issuance Costs	(2,663		)	(3,191		)
Unsecured Term Loans, Net	$	457,337		$	456,809
Unsecured Credit Facility ^(B)	$	158,000		$	—		3.51%	N/A	10/29/2021

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^(A) The interest rate at June 30, 2019 also reflects the derivative instruments we entered into to effectively convert the variable rate to a fixed rate. See Note 10.

^(B) The maturity date may be extended an additional year at our election, subject to certain restrictions. Amounts exclude unamortized debt issuance costs of $2,927 and $3,554 as of June 30, 2019 and December 31, 2018, respectively, which are included in the line item Prepaid Expenses and Other Assets, Net.

Mortgage Loans Payable, Net

During the six months ended June 30, 2019, we paid off mortgage loans in the amount of $72,073.

As of June 30, 2019, mortgage loans payable are collateralized, and in some instances cross-collateralized, by industrial properties with a net carrying value of $336,242. We believe the Operating Partnership and the Company were in compliance with all covenants relating to mortgage loans as of June 30, 2019.

Senior Unsecured Notes, Net

On July 23, 2019, the Operating Partnership issued $150,000 of senior unsecured notes in a private placement. See Subsequent Events (Note 14).

Indebtedness

The following is a schedule of the stated maturities and scheduled principal payments of our indebtedness, exclusive of premiums, discounts and debt issuance costs, for the next five years as of June 30, and thereafter:



	Amount
Remainder of 2019	$	4,264
2020	59,046
2021	425,113
2022	341,552
2023	321
Thereafter	558,549
Total	$	1,388,845

Our unsecured credit facility (the "Unsecured Credit Facility"), our unsecured term loans (the "Unsecured Term Loans"), our private placement notes (the "Private Placement Notes") and the indentures governing our senior unsecured notes contain certain financial covenants, including limitations on incurrence of debt and debt service coverage. Under the Unsecured Credit Facility and the Unsecured Term Loans an event of default can occur if the lenders, in their good faith judgment, determine that a material adverse change has occurred which could prevent timely repayment or materially impair our ability to perform our obligations under the loan agreements. We believe the Operating Partnership and the Company were in compliance with all covenants relating to the Unsecured Credit Facility, the Unsecured Term Loans, the Private Placement Notes and the indentures governing our senior unsecured notes as of June 30, 2019. However, these financial covenants are complex and there can be no assurance that these provisions would not be interpreted by our lenders and noteholders in a manner that could impose and cause us to incur material costs.

Fair Value

At June 30, 2019 and December 31, 2018, the fair value of our indebtedness was as follows:



	June 30, 2019				December 31, 2018
	Carrying Amount^(A)		Fair Value		Carrying Amount^(A)		Fair Value
Mortgage Loans Payable, Net	$	222,274	$	227,413	$	297,716	$	304,508
Senior Unsecured Notes, Net	548,497		585,968		548,494		546,607
Unsecured Term Loans	460,000		461,106		460,000		461,317
Unsecured Credit Facility	158,000		158,177		—		—
Total	$	1,388,771	$	1,432,664	$	1,306,210	$	1,312,432

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^(A) The carrying amounts include unamortized premiums and discounts and exclude unamortized debt issuance costs.

The fair values of our mortgage loans payable were determined by discounting the future cash flows using the current rates at which similar loans would be made based upon similar remaining maturities. The current market rates we utilized were internally estimated. The fair value of the senior unsecured notes were determined by using rates, as advised by our bankers, that are based upon recent trades within the same series of the senior unsecured notes, recent trades for senior unsecured notes with comparable maturities, recent trades for fixed rate unsecured notes from companies with profiles similar to ours, as well as overall economic conditions. The fair value of the Unsecured Credit Facility and the Unsecured Term Loans was determined by discounting the future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term, assuming no repayment until maturity. We have concluded that our determination of fair value for each of our mortgage loans payable, senior unsecured notes, the Unsecured Term Loans and the Unsecured Credit Facility was primarily based upon Level 3 inputs.