Mortgages and Notes Payable

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Mortgages and Notes Payable

Mortgages and Notes Payable

The following table sets forth our mortgages and notes payable:

	September 30, 2021		December 31, 2020
Secured indebtedness	$	493,887	$	93,350
Unsecured indebtedness	2,464,823		2,390,652
Less-unamortized debt issuance costs	(15,808)		(13,981)
Total mortgages and notes payable, net	$	2,942,902	$	2,470,021

At September 30, 2021, our secured mortgage loans were collateralized by real estate assets with an undepreciated book value of $721.0 million.

During the first quarter of 2021, we entered into a new $750.0 million unsecured revolving credit facility, which replaced our previously existing $600.0 million revolving credit facility and includes an accordion feature that allows for an additional $550.0 million of borrowing capacity subject to additional lender commitments. Our new revolving credit facility is scheduled to mature in March 2025. Assuming no defaults have occurred, we have an option to extend the maturity for two additional six-month periods. The current interest rate on the new facility at our existing credit ratings is LIBOR plus 90 basis points and the annual facility fee is 20 basis points. The interest rate and facility fee are based on the higher of the publicly announced ratings from Moody’s Investors Service or Standard & Poor’s Ratings Services. The financial and other covenants under the new facility are substantially similar to our previous credit facility. We incurred $4.8 million of debt issuance costs, which will be amortized along with certain existing unamortized debt issuance costs over the remaining term of our new revolving credit facility. We recorded $0.1 million of loss on debt extinguishment. There was $135.0 million and $155.0 million outstanding under our new revolving credit facility at September 30, 2021 and October 19, 2021, respectively. At both September 30, 2021 and October 19, 2021, we had $0.1 million of outstanding letters of credit, which reduces the availability on our revolving credit facility. As a result, the unused capacity of our revolving credit facility at September 30, 2021 and October 19, 2021 was $614.9 million and $594.9 million, respectively.

During the third quarter of 2021, in conjunction with the acquisition of real estate assets from PAC, we assumed four secured mortgage loans which were recorded at fair market value as of the acquisition date. The following table sets forth the balances of these assumed mortgages and related unamortized debt issuance costs included in mortgages and notes payable, net on our Consolidated Balance Sheets as of September 30, 2021:

	Balance at September 30, 2021
4.27% (3.61% effective rate) mortgage loan due 08/2028	$	116,374
3.61% (3.19% effective rate) mortgage loan due 08/2029	85,049
3.40% (3.50% effective rate) mortgage loan due 04/2033	69,409
4.60% (3.73% effective rate) mortgage loan due 01/2037	131,221
Less-unamortized debt issuance costs	(3,410)
Total	$	398,643

During the third quarter of 2021, we also obtained a $200.0 million, six-month unsecured bridge facility. The bridge facility is originally scheduled to mature in January 2022 and can be extended at our option for an additional six-month period. The bridge facility bears interest at LIBOR plus 85 basis points, has a commitment fee of 20 basis points and contains financial and other covenants that are similar to the covenants under our $750.0 million unsecured revolving credit facility. The interest rate is based on the higher of the publicly announced ratings from Moody’s Investors Service or Standard & Poor’s Ratings Services. There was $88.0 million outstanding under our bridge facility at both September 30, 2021 and October 19, 2021. We incurred $1.0 million of debt issuance costs related to this bridge facility which are being amortized over the six-month term.

During the second quarter of 2021, we prepaid without penalty the remaining $150.0 million principal amount of 3.20% unsecured notes that was scheduled to mature in June 2021. We recorded $0.1 million of loss on debt extinguishment related to this prepayment.

We are currently in compliance with financial covenants with respect to our consolidated debt.

We have considered our short-term liquidity needs and the adequacy of our estimated cash flows from operating activities and other available financing sources to meet these needs. We intend to meet these short-term liquidity requirements through a combination of the following:

•available cash and cash equivalents;

•cash flows from operating activities;

•issuance of debt securities by the Operating Partnership;

•issuance of secured debt;

•bank term loans;

•borrowings under our revolving credit facility;

•issuance of equity securities by the Company or the Operating Partnership; and

•the disposition of non-core assets.