MORTGAGES PAYABLE AND CONSTRUCTION DEBT

12 Months Ended

Apr. 30, 2017

MORTGAGES PAYABLE AND CONSTRUCTION DEBT [Abstract]

NOTE 8 • MORTGAGES PAYABLE AND CONSTRUCTION DEBT

Most of our properties serve as collateral for separate mortgage loans on single properties or groups of properties. The majority of these mortgage loans are non-recourse to us, other than for standard carve-out obligations such as fraud, waste, failure to insure, environmental conditions and failure to pay real estate taxes. Interest rates on mortgage loans range from 3.28% to 6.66%, and the mortgage loans have varying maturity dates from May 28, 2017 through July 1, 2036. As of April 30, 2017, we believe there are no material defaults or material compliance issues in regards to any of these mortgage loans.

Including mortgage loans on properties held for sale, the balance of fixed rate mortgage loans totaled $629.5 million and $689.3 million at April 30, 2017 and 2016, respectively, and the balance of variable rate mortgage loans totaled $57.7 million and $196.8 million as of April 30, 2017, and 2016, respectively. We do not utilize derivative financial instruments to mitigate our exposure to changes in market interest rates. Most of the fixed rate mortgage loans have substantial pre-payment penalties. As of April 30, 2017, the weighted-average rate of interest on our mortgage debt was 4.71%, compared to 4.54% on April 30, 2016. The aggregate amount of required future principal payments on mortgage loans payable as of April 30, 2017, is as follows:


		(in thousands)
		Mortgage Loans		Mortgage Loans
		on Properties		on Properties
		Held for		Held for
Year Ended April 30,		Investment		Sale
2018	$	40,777	$	16,621
2019		75,918		1,870
2020		93,678		183
2021		136,390		193
2022		87,654		993
Thereafter		231,023		1,943
Total payments	$	665,440	$	21,803

In addition to mortgage loans comprising our $687.2 million of mortgage indebtedness, our revolving, multi-bank unsecured line of credit is discussed in Note 7. This line of credit is not included in our mortgage indebtedness total. As of April 30, 2017, we had 56 unencumbered properties.

Our construction debt totaled $41.7 million and $82.0 million on April 30, 2017 and 2016, respectively. The weighted average rate of interest on the construction debt as of April 30, 2017 was 3.27%, compared to 2.74% as of April 30, 2016. The total available to be drawn on the construction loans was $4.8 million at April 30, 2017.