Loans and Mortgages Payable

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Loans and Mortgages Payable

NOTE 4 – LOANS AND MORTGAGES PAYABLE

Unsecured Line of Credit

On November 29, 2018, the Company entered into a First Amendment to Amended and Restated Credit Agreement (the “Amendment”) to expand and extend its existing unsecured revolving credit facility (the “Facility”). The Facility is syndicated with two banks led by BMO Capital Markets Corp. (“BMO”), as sole lead arranger and sole book runner, with Bank of Montreal as administrative agent, and includes JPMorgan Chase Bank, N.A. (“J.P. Morgan”) as the sole syndication agent. The Amendment provided for an increase from $50 million in available borrowings to $75 million in available borrowings with a $50 million accordion feature, bringing the total potential availability up to $125 million, subject to certain conditions including obtaining commitments from additional lenders. The Amendment also extended the maturity date of the Facility from March 27, 2020 to November 29, 2022, with a one-year extension available at the Company’s option, subject to certain conditions including payment of an extension fee. Availability under the Facility is limited to 60% of the value of the unencumbered communities which the Company has placed in the Facility’s unencumbered asset pool (“Borrowing Base”). The Amendment increased the value of the Borrowing Base communities by reducing the capitalization rate applied to the Net Operating Income (“NOI”) generated by the communities in the Borrowing Base from 7.5% to 7.0%. As of March 31, 2020, the amount outstanding under the Facility was $15 million and the interest rate was 2.56%.

Loans Payable

Loans Payable includes unamortized debt issuance costs of $309,000 and $358,000 at March 31, 2020 and December 31, 2019, respectively. The weighted average interest rate was 2.3% and 3.7% at March 31, 2020 and December 31, 2019, respectively, not including the effect of unamortized debt issuance costs. At March 31, 2020, $18.5 million was outstanding on the margin loan at an interest rate of 0.75%.

Mortgages Payable

The following is a summary of our mortgages payable as of March 31, 2020 and December 31, 2019 (in thousands):

	3/31/2020						12/31/2019
	Amount			Rate			Amount			Rate
Fixed rate mortgages	$	374,927			4.14	%	$	377,045			4.14	%
Unamortized debt issuance costs		(3,230	)					(3,387	)
Mortgages, net of unamortized debt issuance costs	$	371,697			4.17	%	$	373,658			4.18	%

As of March 31, 2020 and December 31, 2019, the weighted average loan maturity of mortgages payable was 5.7 years and 6.0 years, respectively.