Mortgage Notes Payable, Net (Tables)

6 Months Ended

Jun. 30, 2020

Mortgage notes payable, net as of June 30, 2020 and December 31, 2019 consisted of the following:



		Encumbered Properties	Outstanding Loan Amount ⁽¹⁾						Effective Interest Rate		Interest Rate
Country	Portfolio	Encumbered Properties	June 30, 2020			December 31, 2019			Effective Interest Rate		Interest Rate	Maturity
			(In thousands)			(In thousands)
Finland:	Finland Properties	5	$	83,094		$	82,996		1.8%	⁽²⁾	Fixed/Variable	Feb. 2024

France:	Worldline	—	—			5,608			—	⁽³⁾	—	—
	DCNS	—	—			10,655			—	⁽³⁾	—	—
	ID Logistics II	—	—			11,776			—	⁽³⁾	—	—
	French Properties	7	78,601			—			2.5%	⁽⁴⁾	Fixed/Variable	May 2025

Germany:	Germany Properties	5	57,829			57,761			1.8%	⁽⁵⁾	Fixed/Variable	Jun. 2023

Luxembourg/ The Netherlands:	Benelux Properties	3	134,748			134,587			1.4%		Fixed	Jun. 2024
	Total EUR denominated	20	354,272			303,383

United Kingdom:	United Kingdom Properties	42	275,151			294,315			3.2%	⁽⁶⁾	Fixed/Variable	Aug. 2023
	Total GBP denominated	42	275,151			294,315

United States:	Penske Logistics	1	70,000			70,000			4.7%	⁽⁷⁾	Fixed	Nov. 2028
	Multi-Tenant Mortgage Loan I	12	187,000			187,000			4.4%	⁽⁷⁾	Fixed	Nov. 2027
	Multi-Tenant Mortgage Loan II	8	32,750			32,750			4.4%	⁽⁷⁾	Fixed	Feb. 2028
	Multi-Tenant Mortgage Loan III	7	98,500			98,500			4.9%	⁽⁷⁾	Fixed	Dec. 2028
	Multi-Tenant Mortgage Loan IV	16	97,500			97,500			4.6%	⁽⁷⁾	Fixed	May 2029
	Multi-Tenant Mortgage Loan V	12	204,000			204,000			3.7%	⁽⁷⁾	Fixed	Oct. 2029
	Total USD denominated	56	689,750			689,750
	Gross mortgage notes payable	118	1,319,173			1,287,448			3.4%
	Mortgage discount		—			(26		)
	Deferred financing costs, net of accumulated amortization ⁽⁸⁾		(16,012		)	(15,268		)
	Mortgage notes payable, net	118	$	1,303,161		$	1,272,154		3.4%

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⁽¹⁾	Amounts borrowed in local currency and translated at the spot rate in effect at the applicable reporting date.


⁽²⁾	80% fixed as a result of a “pay-fixed” interest rate swap agreement and 20% variable. Variable portion is approximately 1.4% plus 3-month Euribor rate in effect as of June 30, 2020.


⁽³⁾	These loans were refinanced in May 2020 as part of the French Refinancing (see below for further details). As a result, the Company terminated an interest rate swap agreement for two of these properties (see Note 7 — Derivatives and Hedging Activities).


⁽⁴⁾	90% fixed as a result of a “pay-fixed” interest rate swap agreement and 10% variable. Variable portion is approximately 2.3% plus 3-month Euribor. Euribor rate in effect as of June 30, 2020.


⁽⁵⁾	80% fixed as a result of a “pay-fixed” interest rate swap agreement and 20% variable. Variable portion is approximately 1.55% plus 3 month Euribor. Euribor rate in effect as of June 30, 2020.


⁽⁶⁾	80% fixed as a result of a “pay-fixed” interest rate swap agreement and 20% variable. Variable portion is approximately 2.0% plus 3-month GBP LIBOR. LIBOR rate in effect as of June 30, 2020.


⁽⁷⁾	The borrower’s (wholly owned subsidiaries of the Company) financial statements are included within the Company’s consolidated financial statements, however, the borrowers’ assets and credit are only available to pay the debts of the borrowers and their liabilities constitute obligations of the borrowers.

⁽⁸⁾

Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or paid down before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close.

Future Principal Payments on Mortgage Notes Payable

The following table presents future scheduled aggregate principal payments on the Company’s gross mortgage notes payable over the next five calendar years and thereafter as of June 30, 2020:



(In thousands)	Future Principal Payments ⁽¹⁾
2020 (remainder)	$	2,609
2021	12,772
2022	19,779
2023	316,985
2024	217,842
Thereafter	749,186
Total	$	1,319,173

_________________________

⁽¹⁾

Assumes exchange rates of £1.00 to $1.23 for GBP and €1.00 to $1.12 for EUR as of June 30, 2020 for illustrative purposes, as applicable.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details