Note 7 - Mortgage Notes Payable

The Company's mortgage notes payable consist of the following as of September 30, 2013 and December 31, 2012 (dollar amounts in thousands):


	Encumbered Properties		Outstanding Loan Amount		Weighted Average Effective Interest Rate⁽¹⁾			Weighted Average Maturity⁽²⁾
September 30, 2013		165	$	269,891		4.25	%		4.68
December 31, 2012		164	$	265,118		4.28	%		5.51

(1)

Mortgage notes payable have fixed rates or are fixed by way of interest rate swap arrangements. Effective interest rates range from 2.73% to 6.13% at September 30, 2013 and 3.32% to 6.13% at December 31, 2012.

(2) Weighted average remaining years until maturity as of September 30, 2013 and December 31, 2012, respectively.

The following table summarizes the scheduled aggregate principal repayments subsequent to September 30, 2013 (amounts in thousands):


Year	Total
October 1, 2013 - December 31, 2013	$	47
2014		189
2015		13,767
2016		16,820
2017		169,768
Thereafter		69,300
Total	$	269,891

The Company's mortgage loan agreements generally require restrictions on corporate guarantees and the maintenance of financial covenants including maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios). As of September 30, 2013, the Company was in compliance with the debt covenants under the mortgage loan agreements.

Note 6 - Mortgage Notes Payable

The Company's mortgage notes payable consist of the following as of December 31, 2012 and 2011 (dollar amounts in thousands):


	Encumbered Properties		Outstanding Loan Amount		Weighted Average Effective Interest Rate⁽¹⁾			Weighted Average Maturity⁽²⁾
December 31, 2012		164	$	265,118		4.28	%		5.51
December 31, 2011		29	$	35,320		4.54	%		4.40

(1)

Mortgage notes payable have fixed rates or rates that are fixed through the use of derivative instruments. Effective interest rates range from 3.32% to 6.13% at December 31, 2012 and 3.75% to 5.32% at December 31, 2011.

(2)

Weighted average remaining years until maturity as of December 31, 2012 and 2011, respectively.

The following table summarizes the scheduled aggregate principal repayments subsequent to December 31, 2012 (amounts in thousands):


Year	Total
2013	$	74
2014		189
2015		13,767
2016		16,820
2017		164,968
Thereafter		69,300
Total	$	265,118

The Company's mortgage loan agreements generally require financial covenants as well as restrictions on corporate guarantees, the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios). As of December 31, 2012 and 2011, the Company was in compliance with the debt covenants under the mortgage loan agreements.