Mortgage Loans Payable and Credit Facility (Tables)
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9 Months Ended |
Sep. 30, 2019 |
Debt Disclosure [Abstract] |
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Schedule of Debt and Capital Lease Obligations Related to Continuing Operations |
Debt and capital lease obligations are composed of the following at September 30, 2019:
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September 30, 2019 |
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Contractual |
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Maturity |
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Balance |
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interest rates |
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Description |
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dates |
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outstanding |
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weighted-average |
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Fixed-rate mortgage |
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Jun 2026 |
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$ |
46,931,000 |
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3.9% |
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Capital lease obligation |
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Sep 2050 |
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5,673,000 |
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5.3% |
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Unsecured credit facilities (a): |
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Variable-rate: |
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Revolving credit facility |
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Sep 2021 |
(b) |
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107,000,000 |
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3.6% |
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Term loan |
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Sep 2022 |
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50,000,000 |
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3.5% |
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Fixed-rate (c): |
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Term loan |
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Feb 2021 |
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75,000,000 |
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3.7% |
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Term loan |
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Feb 2022 |
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50,000,000 |
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3.1% |
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Term loan |
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Sep 2022 |
(d) |
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50,000,000 |
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2.9% |
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Term loan |
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Apr 2023 |
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100,000,000 |
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3.3% |
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Term loan |
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Sep 2024 |
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75,000,000 |
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3.8% |
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Term loan |
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Jul 2025 |
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75,000,000 |
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4.7% |
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634,604,000 |
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3.7% |
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Unamortized issuance costs |
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(2,962,000 |
) |
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$ |
631,642,000 |
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(a) |
During the quarter ended June 30, 2019, the weighted average interest rate for the Company’s unsecured credit facilities increased 14 basis points (“bps”) (ranging from an increase of 10 bps to 15 bps for each individual borrowing) as a result of a slight increase in the Company’s leverage ratio. |
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(b) |
The revolving credit facility is subject to a one-year extension at the Company’s option. |
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(c) |
The interest rates on these term loans consist of the London Interbank Offered Rate (“LIBOR”) plus a credit spread based on the Company’s leverage ratio, for which the Company has interest rate swap agreements which convert the LIBOR rates to fixed rates. Accordingly, these term loans are presented as fixed-rate debt. |
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(d) |
The current interest rate swap agreement expires in February 2020 at which time a new interest rate swap agreement will begin resulting in an effective interest ratio of 3.3%, based on the Company’s leverage ratio at September 30, 2019. |
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Summary of Derivative Financial Instruments Held |
The following is a summary of the derivative financial instruments held by the Company at September 30, 2019 and December 31, 2018:
September 30, 2019 |
Designation/ |
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Fair |
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Maturity |
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Balance sheet |
Cash flow |
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Derivative |
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Count |
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value |
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dates |
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location |
Qualifying |
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Interest rate swaps |
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1 |
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$ |
74,000 |
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2020 |
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Other assets and deferred charges, net |
Qualifying |
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Interest rate swaps |
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7 |
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$ |
9,961,000 |
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2021-2025 |
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Accounts payable and accrued liabilities |
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December 31, 2018 |
Designation/ |
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Fair |
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Maturity |
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Balance sheet |
Cash flow |
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Derivative |
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Count |
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value |
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dates |
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location |
Qualifying |
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Interest rate swaps |
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7 |
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$ |
8,871,000 |
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2019-2024 |
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Other assets and deferred charges, net |
Qualifying |
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Interest rate swaps |
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2 |
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$ |
1,576,000 |
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2025 |
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Accounts payable and accrued liabilities |
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Effect of Derivative Financial Instruments on Consolidated Statements of Operations and Consolidated Statements of Equity |
The following presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations and the consolidated statements of equity for the three and nine months ended September 30, 2019 and 2018, respectively:
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(Loss) gain recognized in other |
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comprehensive (loss) income |
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(effective portion) |
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Designation/ |
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Three months ended September 30, |
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Nine months ended September 30, |
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Cash flow |
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Derivative |
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2019 |
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2018 |
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2019 |
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2018 |
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Qualifying |
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Interest rate swaps |
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$ |
(2,883,000 |
) |
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$ |
2,375,000 |
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$ |
(15,837,000 |
) |
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$ |
10,221,000 |
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Gain (loss) recognized in other |
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comprehensive (loss) income |
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reclassified into earnings (effective portion) |
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Three months ended September 30, |
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Nine months ended September 30, |
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Classification |
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2019 |
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2018 |
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2019 |
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2018 |
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Continuing Operations |
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$ |
216,000 |
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$ |
246,000 |
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$ |
1,300,000 |
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$ |
265,000 |
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