Mortgages, Notes and Loans Payable, Net (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Summary and activity for mortgages, notes and loans payable

Mortgages, notes and loans payable, net are summarized as follows: 

thousands	September 30, 2022		December 31, 2021
Fixed-rate debt
Unsecured 5.375% Senior Notes due 2028	$	750,000	$	750,000
Unsecured 4.125% Senior Notes due 2029	650,000		650,000
Unsecured 4.375% Senior Notes due 2031	650,000		650,000
Secured mortgages, notes and loans payable	1,204,101		1,006,428
Special Improvement District bonds	61,949		69,131
Variable-rate debt (a)
Secured Bridgeland Notes due 2026	275,000		275,000
Secured mortgages, notes and loans payable	1,084,277		1,238,857
Unamortized deferred financing costs (b)	(47,916)		(48,259)
Total mortgages, notes and loans payable, net	$	4,627,411	$	4,591,157

(a)The Company has entered into derivative instruments to manage a portion of the variable interest rate exposure. See Note 8 - Derivative Instruments and Hedging Activities for additional information.

(b)Deferred financing costs are amortized to interest expense over the terms of the respective financing agreements using the effective interest method (or other methods which approximate the effective interest method).

The Company’s borrowing activity is summarized as follows: 

thousands	Initial / Extended Maturity (a)	Interest Rate			Carrying Value
Balance at December 31, 2021					$	4,591,157
Borrowings:
Two Summerlin	February 2027 / February 2029	3.43	%		40,800
20/25 Waterway Avenue	April 2026 / April 2027	5.48	%	(b),(c)	14,500
One Merriweather	February 2032	3.53	%	(d)	49,800
Two Merriweather	February 2032	3.83	%	(d)	25,600
Millennium Waterway Apartments	June 2032	3.94	%	(d)	51,000
Two Lakes Edge	June 2032	4.39	%	(d)	105,000
The Lane at Waterway	July 2032	4.85	%	(d)	37,500
Draws on mortgages, notes and loans payable					252,109
Repayments:
20/25 Waterway Avenue	May 2022	4.79	%		(12,487)
Millennium Waterway Apartments	June 2022	3.75	%		(50,516)
Two Lakes Edge	October 2022 / October 2023	2.40	%	(b)	(69,031)
Outlet Collection at Riverwalk	October 2022 / October 2023	3.50	%	(b)	(26,258)
Kō‘ula	March 2023 / March 2024	3.14	%	(b)	(238,682)
The Lane at Waterway	August 2023 / August 2024	1.85	%	(b)	(27,729)
Senior Secured Credit Facility	September 2023	4.61	%		(74,482)
Repayments on mortgages, notes and loans payable					(35,353)
Other:
Special Improvement District bond assumptions	April 2051	4.13	%		(5,860)
Deferred financing costs, net					343
Balance at September 30, 2022					$	4,627,411

(a)Maturity dates presented represent initial maturity dates and the extended or final maturity dates as contractually stated. HHC has the option to exercise extension periods at the initial maturity date, subject to certain terms which may include minimum debt service coverage, minimum occupancy levels or condominium sales levels, as applicable and other performance criteria. In certain cases, due to property performance not meeting covenants, HHC may have to pay down a portion of the loan to obtain the extension.

(b)The interest rate presented is based on the Secured Overnight Financing Rate (SOFR) of 2.98% at September 30, 2022. Interest rates associated with loans which have been paid off reflect the interest rate at December 31, 2021.

(c)In April 2022, the Company closed on a $19.5 million financing of 20/25 Waterway Avenue, replacing the existing loan, with $5.0 million undrawn funds to be released and drawn upon upcoming tenant leasings. The loan is interest-only for the first three years with 25-year amortization thereafter.

(d)These financings are interest-only.