Notes Payable and Unsecured Credit Facilities

9 Months Ended

Sep. 30, 2019

Notes Payable and Unsecured Credit Facilities

5.	Notes Payable and Unsecured Credit Facilities

The Company’s outstanding debt consisted of the following:

(in thousands)	Weighted Average Contractual Rate	Weighted Average Effective Rate	September 30, 2019		December 31, 2018
Notes payable:
Fixed rate mortgage loans	4.4%	4.0%	$	344,610		403,306
Variable rate mortgage loans ⁽¹⁾	3.2%	3.4%		149,273		127,850
Fixed rate unsecured public and private debt	3.9%	4.2%		2,944,076		2,475,322
Total notes payable				3,437,959		3,006,478
Unsecured credit facilities:
Line of Credit (the "Line") ⁽²⁾	3.1%	3.3%		185,000		145,000
Term loans	2.0%	2.1%		264,309		563,734
Total unsecured credit facilities				449,309		708,734
Total debt outstanding			$	3,887,268		3,715,212

⁽¹⁾ Includes six mortgages with interest rates that vary on LIBOR based formulas. Four of these variable rate loans have interest rate swaps in place to fix the interest rates. The effective fixed rates of the loans range from 2.5% to 4.1%.

⁽²⁾ Weighted average effective and contractual rate for the Line is calculated based on a fully drawn Line balance.

Significant financing activity during 2019 includes:

•

On March 6, 2019, the Company issued $300 million of 4.65% senior unsecured public notes, which priced at 99.661%, and mature in March 2049. The net proceeds of the offering were used to repay in full its $250 million 4.8% notes due April 15, 2021, including a make-whole premium of approximately $9.6 million and accrued interest, with the remaining proceeds used toward repaying in full two mortgages totaling $52.7 million with interest rates ranging between 6.25% and 7.25%, including a repayment premium of $1.0 million.

•

On August 13, 2019, the Company issued $425 million of 2.95% senior unsecured public notes, which priced at 99.903% and mature in September 2029. The net proceeds of the offering were used to repay in full its $300 million term loan that was due to mature in December 2020, including an interest rate swap breakage fee of approximately $1.1 million, and to reduce the outstanding balance on the Line.

As of September 30, 2019, scheduled principal payments and maturities on notes payable and unsecured credit facilities were as follows:

(in thousands)	September 30, 2019
Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities		Unsecured Maturities ⁽¹⁾			Total
2019 ⁽²⁾	$	2,530		—		—			2,530
2020		11,285		39,074		—			50,359
2021		11,598		74,751		—			86,349
2022		11,797		5,848		750,000			767,645
2023		10,077		59,374		—			69,451
Beyond 5 Years		27,013		236,046		2,675,000			2,938,059
Unamortized debt premium/(discount) and issuance costs		—		4,490		(31,615	)		(27,125	)
Total	$	74,300		419,583		3,393,385			3,887,268

⁽¹⁾ Includes unsecured public and private debt and unsecured credit facilities.

⁽²⁾ Reflects scheduled principal payments for the remainder of the year.

The Company was in compliance as of September 30, 2019 with the financial and other covenants under its unsecured public and private placement debt and unsecured credit facilities.