6. Mortgages Payable

During the first three months of 2014, we assumed mortgages totaling $45.9 million, excluding net discounts. The mortgages are secured by the properties on which the debt was placed. The $45.9 million of mortgages assumed during the first three months of 2014 are considered non-recourse with limited customary exceptions for items such as solvency, bankruptcy, misrepresentation, fraud, misapplication of payments, environmental liabilities, failure to pay taxes, insurance premiums, liens on the property, violations of the single purpose entity requirements, and uninsured losses. We expect to pay off the mortgages as soon as prepayment penalties make it economically feasible to do so.

During the first three months of 2014, aggregate net discounts totaling $2.8 million were recorded upon assumption of the mortgages for below-market interest rates, as compared to net premiums totaling $28.4 million recorded in 2013, of which $26.8 million were recorded in the first three months of 2013. Amortization of these net premiums is recorded as a reduction to interest expense over the remaining term of the respective mortgages, using a method that approximates the effective-interest method.

These mortgages contain customary covenants, such as limiting our ability to further mortgage each applicable property or to discontinue insurance coverage, without the prior consent of the lender. At March 31, 2014, we remain in compliance with these covenants.

We did not incur any deferred financing costs on our mortgages payable assumed in the first three months of 2014 or 2013. The balance of our deferred financing costs, which are classified as part of other assets, net, on our consolidated balance sheets, was $1.1 million at March 31, 2014, and $1.2 million at December 31, 2013, which is being amortized over the remaining term of each mortgage.

The following is a summary of all our mortgages payable as of March 31, 2014 and December 31, 2013, respectively (dollars in thousands):

		Weighted	Weighted	Weighted
		Average	Average	Average
		Stated	Effective	Remaining	Remaining		Unamortized		Mortgage
	Number of	Interest	Interest	Years Until	Principal		Premium		Payable
As Of	Properties(1)	Rate(2)	Rate(3)	Maturity	Balance		Balance		Balance
3/31/14	239	5.2%	3.8%	3.9	$	798,580	$	23,690	$	822,270
12/31/13	227	5.3%	3.9%	4.3	$	754,508	$	28,852	$	783,360

(1) At March 31, 2014, there were 50 mortgages on the 239 properties, while at December 31, 2013, there were 47 mortgages on the 227 properties. The mortgages require monthly payments, with principal payments due at maturity. The mortgages are at fixed interest rates, except for six mortgages on 56 properties totaling $105.1 million at March 31, 2014, including net unamortized premiums. All of these variable rate mortgages were acquired with arrangements which limit our exposure to interest rate risk.

(2) Stated interest rates ranged from 2.0% through 6.9% at March 31, 2014, while stated interest rates ranged from 2.5% to 6.9% at December 31, 2013.

(3) Effective interest rates range from 2.2% through 9.1% at March 31, 2014, while stated interest rates ranged from 2.4% to 9.2% at December 31, 2013.

The following table summarizes the maturity of mortgages payable, excluding net premiums of $23.7 million, as of March 31, 2014 (dollars in millions):

Year of
Maturity
2014	$	48.1
2015	125.5
2016	248.5
2017	142.4
2018	15.0
Thereafter	219.1

Totals	$	798.6