| Debt |
Debt
A summary of the Company’s consolidated indebtedness is as follows (dollars in thousands): | | | | | | | | | | | | | | | | Interest Rate at December 31, | | Maturity Date at | | Carrying Value at December 31, | | 2017 | | 2016 | | December 31, 2017 | | 2017 | | 2016 | Mortgages Payable | | | | | | | | | | Core Fixed Rate | 3.88%-5.89% | | 3.88%-6.65% | | February 2024 - April 2035 | | $ | 179,870 |
| | $ | 234,875 |
| Core Variable Rate - Swapped (a) | 1.71%-3.77% | | 1.71%-3.77% | | July 2018 - July 2027 | | 74,152 |
| | 82,250 |
| Total Core Mortgages Payable | | | | | | | 254,022 |
| | 317,125 |
| Fund II Fixed Rate | 1.00%-4.75% | | 1.00%-5.80% | | August 2019 - May 2020 | | 205,262 |
| | 249,762 |
| Fund II Variable Rate | LIBOR+1.39% | | LIBOR+0.62%-LIBOR+2.50% | | November 2021 | | — |
| | 142,750 |
| Fund II Variable Rate - Swapped (a) | 2.88% | | 2.88% | | November 2021 | | 19,560 |
| | 19,779 |
| Total Fund II Mortgages Payable | | | | | | | 224,822 |
| | 412,291 |
| Fund III Variable Rate | Prime+0.50% -LIBOR+4.65% | | Prime+0.50%-LIBOR+4.65% | | May 2018 - December 2021 | | 65,866 |
| | 83,467 |
| Fund IV Fixed Rate | 3.4%-4.50% | | 3.4%-4.50% | | October 2025-June 2026 | | 10,503 |
| | 10,503 |
| Fund IV Variable Rate | LIBOR+1.70%-LIBOR+3.95% | | LIBOR+1.70%-LIBOR+3.95% | | January 2018 - April 2022 | | 250,584 |
| | 233,139 |
| Fund IV Variable Rate - Swapped (a) | 1.78% | | 1.78% | | May 2019 - April 2022 | | 86,851 |
| | 14,509 |
| Total Fund IV Mortgages Payable | | | | | | | 347,938 |
| | 258,151 |
| Fund V Variable Rate | LIBOR+2.25% | | — | | October 2020 | | 28,613 |
| | — |
| Net unamortized debt issuance costs | | | | | | | (12,943 | ) | | (16,642 | ) | Unamortized premium | | | | | | | 856 |
| | 1,336 |
| Total Mortgages Payable | | | | | | | $ | 909,174 |
| | $ | 1,055,728 |
| Unsecured Notes Payable | | | | | | | | | | Core Unsecured Term Loans | LIBOR+1.30%-LIBOR+1.60% | | LIBOR+1.30%-LIBOR+1.60% | | July 2020 - December 2022 | | $ | — |
| | $ | 51,194 |
| Core Variable Rate Unsecured
Term Loans - Swapped (a) | 1.24%-3.77% | | 1.24%-3.77% | | July 2018 - March 2025 | | 300,000 |
| | 248,806 |
| Total Core Unsecured Notes Payable | | | | | | | 300,000 |
| | 300,000 |
| Fund II Unsecured Notes Payable | LIBOR+1.40% | | — | | September 2020 | | 31,500 |
| | — |
| Fund IV Term Loan/Subscription Facility | LIBOR+1.65%-LIBOR+2.75% | | LIBOR+1.65%-LIBOR+2.75% | | December 2018 - October 2019 | | 40,825 |
| | 134,636 |
| Fund V Subscription Facility | LIBOR+1.60% | | — | | May 2020 | | 103,300 |
| | — |
| Net unamortized debt issuance costs | | | | | | | (1,890 | ) | | (1,646 | ) | Total Unsecured Notes Payable | | | | | | | $ | 473,735 |
| | $ | 432,990 |
| Unsecured Line of Credit | | | | | | | | | | Core Unsecured Line of Credit | LIBOR+1.40% | | LIBOR+1.40% | | June 2020 | | $ | 18,048 |
| | $ | — |
| Core Unsecured Line of Credit - Swapped (a) | 1.24%-3.77% | | — | | July 2018 - March 2025 | | 23,452 |
| | — |
| Total Unsecured Line of Credit | | | | | | | $ | 41,500 |
| | $ | — |
| | | | | | | | | | | Total Debt - Fixed Rate (b) | | | | | | $ | 899,650 |
| | $ | 860,486 |
| Total Debt - Variable Rate (c) | | | | | | | 538,736 |
| | 645,185 |
| Total Debt | | | | | | 1,438,386 |
| | 1,505,671 |
| Net unamortized debt issuance costs | | | | | | | (14,833 | ) | | (18,289 | ) | Unamortized premium | | | | | | | 856 |
| | 1,336 |
| Total Indebtedness | | | | | | | $ | 1,424,409 |
| | $ | 1,488,718 |
|
__________
| | (a) | At December 31, 2017, the stated rates ranged from LIBOR + 1.65% to LIBOR +1.90% for Core variable-rate debt; LIBOR + 1.39% for Fund II variable-rate debt; PRIME + 0.50% to LIBOR +4.65% for Fund III variable-rate debt; LIBOR + 1.70% to LIBOR +3.95% for Fund IV variable-rate debt, LIBOR + 2.25% for Fund V and LIBOR + 1.30% to LIBOR +1.60% for Core variable-rate unsecured notes. |
| | (b) | Includes $504,018 and $365,343, respectively, of variable-rate debt that has been fixed with interest rate swap agreements as of the periods presented. |
| | (c) | Includes $141.1 million and $186.6 million, respectively, of variable-rate debt that is subject to interest cap agreements. |
Mortgages Payable
During the year ended December 31, 2017, the Company obtained eleven new non-recourse mortgages totaling $162.9 million with a weighted-average interest rate of LIBOR + 3.47% collateralized by eleven properties, which mature between February 14, 2020 and December 1, 2022. The Company entered into interest rate swap contracts to effectively fix the variable portion of the interest rates of eight of these obligations with a notional value of $73.3 million at a weighted-average rate of 2.11%. During 2017, the Company repaid thirteen mortgages in full, which had a total balance of $280.8 million and a weighted-average interest rate of 3.90%, and made scheduled principal payments of $1.0 million. At December 31, 2017 and December 31, 2016, the Company’s mortgages were collateralized by 42 and 39 properties, respectively, and the related tenant leases. Certain loans are cross-collateralized and contain cross-default provisions. The loan agreements contain customary representations, covenants and events of default. Certain loan agreements require the Company to comply with affirmative and negative covenants, including the maintenance of debt service coverage and leverage ratios. A portion of the Company’s variable-rate mortgage debt has been effectively fixed through certain cash flow hedge transactions (Note 8).
The mortgage loan related to Brandywine Holdings in the Company’s Core Portfolio amounted to $26.3 million and was in default at December 31, 2017 and December 31, 2016. This loan bears interest at 5.99%, excluding default interest of 5%, and is collateralized by a property, in which the Company holds a 22% controlling interest. During the year ended December 31, 2015, the Company recognized an impairment charge on this property (Note 8). In April 2017, the lender on this mortgage initiated a lawsuit against the Company for the full balance of the principal, accrued interest as well as penalties and fees aggregating approximately $32.1 million. The Company’s management believes that the mortgage is not recourse to the Company and that the suit is without merit.
See Note 17 for information about additional financing obtained after December 31, 2017.
Unsecured Notes Payable
Unsecured notes payable for which total availability was $70.3 million and $9.9 million at December 31, 2017 and December 31, 2016, respectively, are comprised of the following:
| | • | In the Core portfolio there are outstanding at both December 31, 2017 and December 31, 2016 $300.0 million of unsecured term loans including a $150.0 million term loan and three $50.0 million term loans. All of the Core term loans are swapped to fixed rates. The Core unsecured term loans were refinanced in February 2018 (Note 17). |
| | • | During 2017, Fund II obtained a $40.0 million term loan secured by the real estate assets of City Point Phase II with an interest rate of LIBOR plus 140 basis points and maturing in September 2020. The Fund II loan is also guaranteed by the Company and the Operating Partnership. The outstanding balance and total available credit of the Fund II term loan was $31.5 million and $8.5 million, respectively, at December 31, 2017. |
| | • | At Fund IV there are a $41.8 million bridge facility and a $21.5 million subscription line. The outstanding balance of the Fund IV bridge facility was $40.8 million and $40.1 million at December 31, 2017 and December 31, 2016, respectively. Total availability was $1.0 million and $0 at December 31, 2017 and December 31, 2016. The outstanding balance of the Fund IV subscription line was $0.0 million and $94.5 million and total available credit was $14.1 million and $5.5 million at December 31, 2017 and December 31, 2016, reflecting letters of credit of $7.4 million and $0, respectively. |
| | • | During 2017, Fund V obtained a $150.0 million subscription line collateralized by Fund V’s unfunded capital commitments with an interest rate of LIBOR plus 160 basis points and maturing in May 2020. The Fund V subscription line is also guaranteed by the Operating Partnership. The outstanding balance and total available credit of the Fund V subscription line was $103.3 million and $46.7 million, respectively, at December 31, 2017. |
Unsecured Line of Credit
The Company had a total of $96.2 million and $138.7 million available under its $150.0 million Core unsecured revolving line of credit reflecting borrowings of $41.5 million and $0 and letters of credit of $12.3 million and $11.3 million at December 31, 2017 and December 31, 2016, respectively. At December 31, 2017 a portion of the Core unsecured revolving line of credit was swapped to a fixed rate. The Core unsecured revolving line of credit was refinanced in February 2018 (Note 17).
Scheduled Debt Principal Payments
The scheduled principal repayments of the Company’s consolidated indebtedness, as of December 31, 2017 are as follows (in thousands): | | | | | Year Ending December 31, | | 2018 | $ | 94,400 |
| 2019 | 213,573 |
| 2020 | 576,379 |
| 2021 | 255,027 |
| 2022 | 98,840 |
| Thereafter | 200,167 |
| | 1,438,386 |
| Unamortized fair market value of assumed debt | 856 |
| Net unamortized debt issuance costs | (14,833 | ) | Total indebtedness | $ | 1,424,409 |
|
See Note 4 for information about liabilities of the Company’s unconsolidated affiliates. |