Loans and Mortgages Payable

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Loans and Mortgages Payable

NOTE 4 – LOANS AND MORTGAGES PAYABLE

Unsecured Line of Credit

On March 28, 2017, the Company entered into an amended and restated credit agreement to renew and expand its existing unsecured revolving credit facility. The new unsecured revolving credit facility (the “Facility”) is syndicated with BMO Capital Markets (“BMO”), as sole lead arranger and sole book runner, and Bank of Montreal as administrative agent. The Facility provides for an increase from $35 million in available borrowings to $50 million in available borrowings with a $75 million accordion feature, bringing the total potential availability up to $125 million, subject to certain conditions. The maturity date of the Facility is March 27, 2020, with a one year extension option. Borrowings will bear interest at the Company’s option of LIBOR plus 1.75% to 2.50% or BMO’s prime lending rate plus 0.75% to 1.50%, based on the Company’s overall leverage. Based on the Company’s current leverage ratio, borrowings under the Facility will bear interest at LIBOR plus 2% or at BMO’s prime lending rate plus 1%. As of March 31, 2018, the amount outstanding under the Facility was $15 million and the interest rate was 3.42%.

Loans Payable

Loans Payable includes unamortized debt issuance costs of $78,069 and $61,337 at March 31, 2018 and December 31, 2017, respectively. The weighted average interest rate was 3.3% and 3.1% at March 31, 2018 and December 31, 2017, respectively, not including the effect of unamortized debt issuance costs. At March 31, 2018, $21,566,338 was outstanding on the margin loan at an interest rate of 2.0%.

Mortgages Payable

The following is a summary of our mortgages payable as of March 31, 2018 and December 31, 2017:

	3/31/2018						12/31/2017
	Amount			Rate			Amount			Rate
Fixed rate mortgages	$	306,746,237			4.2	%	$	308,444,180			4.2	%
Variable rate mortgages		-0-			-0-			16,606			4.3	%
Total mortgages before unamortized debt issuance costs		306,746,237			4.2	%		308,460,786			4.2	%
Unamortized debt issuance costs		(3,429,056	)					(3,565,669	)
Mortgages, net of unamortized debt issuance costs	$	303,317,181			4.3	%	$	304,895,117			4.3	%

As of March 31, 2018 and December 31, 2017, the weighted average loan maturity of mortgages payable was 6.7 years and 6.9 years, respectively.