Schedule of Debt and Finance Lease Obligations Related to Continuing Operations |
Debt and finance lease obligations are composed of the following at March 31, 2020:
|
|
|
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
Contractual |
|
|
|
Maturity |
|
Balance |
|
|
interest rates |
|
Description |
|
dates |
|
outstanding |
|
|
weighted-average |
|
Fixed-rate mortgage |
|
Jun 2026 |
|
$ |
46,425,000 |
|
|
3.9% |
|
Finance lease obligation |
|
Sep 2050 |
|
|
5,656,000 |
|
|
5.3% |
|
Unsecured credit facilities (a): |
|
|
|
|
|
|
|
|
|
|
Variable-rate: |
|
|
|
|
|
|
|
|
|
|
Revolving credit facility |
|
Sep 2021 |
(b) |
|
182,000,000 |
|
|
2.5% |
|
Term loan |
|
Sep 2022 |
|
|
50,000,000 |
|
|
2.6% |
|
Fixed-rate (c): |
|
|
|
|
|
|
|
|
|
|
Term loan |
|
Feb 2021 |
|
|
75,000,000 |
|
|
3.7% |
|
Term loan |
|
Feb 2022 |
|
|
50,000,000 |
|
|
3.1% |
|
Term loan |
|
Sep 2022 |
|
|
50,000,000 |
|
|
3.3% |
|
Term loan |
|
Apr 2023 |
|
|
100,000,000 |
|
|
3.3% |
|
Term loan |
|
Sep 2024 |
|
|
75,000,000 |
|
|
3.8% |
|
Term loan |
|
Jul 2025 |
|
|
75,000,000 |
|
|
4.7% |
|
|
|
|
|
|
709,081,000 |
|
|
3.3% |
|
Unamortized issuance costs |
|
|
|
|
(2,578,000 |
) |
|
|
|
|
|
|
|
|
$ |
706,503,000 |
|
|
|
|
|
|
(a) |
During the quarter ended March 31, 2020, 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 an increase in the Company’s leverage ratio. |
|
(b) |
The revolving credit facility is subject to a one-year extension at the Company’s option. |
|
(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. |
|
Summary of Derivative Financial Instruments Held |
The following is a summary of the derivative financial instruments held by the Company at March 31, 2020 and December 31, 2019:
March 31, 2020 |
Designation/ |
|
|
|
|
|
|
|
Fair |
|
|
Maturity |
|
Balance sheet |
Cash flow |
|
Derivative |
|
Count |
|
|
value |
|
|
dates |
|
location |
Qualifying |
|
Interest rate swaps |
|
|
7 |
|
|
$ |
22,062,000 |
|
|
2020-2025 |
|
Accounts payable and accrued liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
Designation/ |
|
|
|
|
|
|
|
Fair |
|
|
Maturity |
|
Balance sheet |
Cash flow |
|
Derivative |
|
Count |
|
|
value |
|
|
dates |
|
location |
Qualifying |
|
Interest rate swaps |
|
|
2 |
|
|
$ |
136,000 |
|
|
2020-2023 |
|
Other assets and deferred charges, net |
Qualifying |
|
Interest rate swaps |
|
|
6 |
|
|
$ |
7,180,000 |
|
|
2021-2025 |
|
Accounts payable and accrued liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 months ended March 31, 2020 and 2019, respectively:
|
|
|
|
(Loss) gain recognized in other |
|
|
|
|
|
comprehensive (loss) income |
|
|
|
|
|
(effective portion) |
|
Designation/ |
|
|
|
Three months ended March 31, |
|
Cash flow |
|
Derivative |
|
2020 |
|
|
2019 |
|
Qualifying |
|
Interest rate swaps |
|
$ |
(15,363,000 |
) |
|
$ |
(4,877,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) recognized in other |
|
|
|
|
|
comprehensive (loss) income |
|
|
|
|
|
reclassified into earnings (effective portion) |
|
|
|
|
|
Three months ended March 31, |
|
|
|
Classification |
|
2020 |
|
|
2019 |
|
|
|
Continuing Operations |
|
$ |
(349,000 |
) |
|
$ |
565,000 |
|
|