DEBT (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Debt

A summary of our consolidated debt is as follows:

	Weighted-Average
	Effective Interest Rate as of					Balance as of
	June 30,		December 31,			June 30,		December 31,
($ in thousands)	2023		2022		Current Maturity Date	2023		2022
Line of credit (1)	5.17	%	5.72	%	November 2025	$	352,000	$	235,000
Term loan (2)	3.31		3.90		November 2026		400,000		400,000
Term loan (3)	4.26		4.56		January 2027		400,000		400,000
Fixed-rate mortgage notes	3.40		3.48		January 2027 - May 2031		309,875		380,316
Floating-rate mortgage notes (4)	4.59		4.52		October 2024 - October 2026		207,600		207,600
Total principal amount / weighted-average (5)	4.11	%	4.31	%		$	1,669,475	$	1,622,916
Less: unamortized debt issuance costs						$	(12,751)	$	(14,849)
Add: unamortized mark-to-market adjustment on assumed debt							7,887		8,408
Total debt, net						$	1,664,611	$	1,616,475
Gross book value of properties encumbered by debt						$	895,040	$	970,310

(1) The effective interest rate is calculated based on the Term Secured Overnight Financing Rate (”Term SOFR”) plus an 11.448 basis point adjustment (“Adjusted Term SOFR”), plus a margin ranging from 1.25% to 2.00% depending on our consolidated leverage ratio. As of June 30, 2023, the unused and available portions under the line of credit were approximately $548.0 million and $547.9 million, respectively. The weighted-average interest rate is the all-in interest rate, including the effects of interest rate cap agreements relating to $150.0 million in borrowings under this line of credit. The line of credit is available for general business purposes including, but not limited to, refinancing of existing indebtedness and financing the acquisition of permitted investments, including commercial properties.

(2) The effective interest rate is calculated based on Adjusted Term SOFR, plus a margin ranging from 1.20% to 1.90% depending on our consolidated leverage ratio. Total commitments for this term loan are $400.0 million. The weighted-average interest rate is the all-in interest rate, including the effects of interest rate swap agreements relating to $300.0 million in borrowings under this term loan and an interest rate cap agreement relating to $100.0 million in borrowings under this term loan.

(3) The effective interest rate is calculated based on Adjusted Term SOFR, plus a margin ranging from 1.20% to 1.90% depending on our consolidated leverage ratio. Total commitments for this term loan are $400.0 million. The weighted-average interest rate is the all-in interest rate, including the effects of interest rate swap agreements relating to $350.0 million in borrowings under this term loan and an interest rate cap agreement relating to $50.0 million in borrowings under this term loan.

(4) The effective interest rate is calculated based on either the London Interbank Offered Rate (“LIBOR”) or Adjusted Term SOFR plus a margin. As of both June 30, 2023 and December 31, 2022, our floating-rate mortgage notes were subject to interest rate spreads ranging from 1.55% to 2.50%. The weighted-average interest rate is the all-in interest rate, including the effects of interest rate cap agreements which capped the effective interest rates of our two floating-rate mortgage notes at 4.61% and 4.55%, respectively, as of June 30, 2023.

(5) The weighted-average remaining term of our consolidated borrowings was approximately 3.4 years as of June 30, 2023, excluding the impact of certain extension options.

Schedule of Maturities of Long-term Debt

As of June 30, 2023, the principal payments due on our consolidated debt during each of the next five years and thereafter were as follows:

(in thousands)	Line of Credit (1)		Term Loans		Mortgage Notes (2)		Total
Remainder of 2023		—		—		996		996
2024		—		—		129,265		129,265
2025		352,000		—		2,360		354,360
2026		—		400,000		84,214		484,214
2027		—		400,000		175,787		575,787
Thereafter		—		—		124,853		124,853
Total principal payments	$	352,000	$	800,000	$	517,475	$	1,669,475

(1) The term of the line of credit may be extended pursuant to two six-month extension options, subject to certain conditions.

(2) A $127.0 million mortgage note matures in October 2024 and the term may be extended pursuant to a one-year extension option, subject to certain conditions. A $115.0 million mortgage note matures in January 2027 and may be extended pursuant to two one-year extension options, subject to certain conditions.

Schedule of Derivative Instruments

The following table summarizes the location and fair value of our consolidated derivative instruments on our condensed consolidated balance sheets:

	Number of			Fair Value
($ in thousands)	Contracts	Notional Amount			Other Assets	Other Liabilities
As of June 30, 2023
Interest rate swaps designated as cash flow hedges	12	$	650,000	$	20,689	$	—
Interest rate caps designated as cash flow hedges	3		300,000		16,208
Interest rate caps not designated as cash flow hedges	2		207,600		1,789		—
Total derivative instruments	17	$	1,157,600	$	38,686	$	—
As of December 31, 2022
Interest rate swaps designated as cash flow hedges	12	$	650,000	$	20,279	$	—
Interest rate caps not designated as cash flow hedges	2		207,600		4,169		—
Total derivative instruments	14	$	857,600	$	24,448	$	—

Schedule of Derivative Instruments, Gain (Loss)

The following table presents the effect of our consolidated derivative instruments on our condensed consolidated financial statements:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
(in thousands)	2023		2022		2023		2022
Derivative instruments designated as cash flow hedges:
Gain (loss) recognized in AOCI	$	14,146	$	787	$	10,146	$	10,862
Amount reclassified from AOCI (out of) into interest expense		(4,038)		1,032		(7,094)		2,951
Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded		37,882		33,774		75,427		58,184
Derivative instruments not designated as cash flow hedges:
Unrealized (loss) gain on derivative instruments recognized in other income (expenses) (1)	$	(1,101)	$	982	$	(2,325)	$	2,532
Realized gain on derivative instruments recognized in other income (expenses) (2)		1,293		—		2,414		—

(1) Unrealized (loss) gain on changes in fair value of derivative instruments relates to mark-to-market changes on our derivatives not designated as cash flow hedges.

(2) Realized gain on derivative instruments relates to interim cash settlements for our derivatives not designated as cash flow hedges.