Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Debt

Debt

The following table summarizes our total indebtedness (in thousands):

	March 31, 2024		December 31, 2023
Secured debt:
Fixed-rate property debt due May 2025 to January 2055 (1)	$	2,229,842	$	2,236,975
Debt issuance costs, net of accumulated amortization	(12,651)		(13,184)
Total non-recourse property debt, net	$	2,217,191	$	2,223,791
Unsecured debt:
Term loans due December 2024 to April 2026 (2)	$	475,000	$	475,000
Revolving credit facility borrowings due April 2025 (3)	260,000		115,000
4.58% Notes payable due June 2027	100,000		100,000
4.77% Notes payable due June 2029	100,000		100,000
4.84% Notes payable due June 2032	200,000		200,000
Total unsecured debt	1,135,000		990,000
Debt issuance costs, net of accumulated amortization	(3,142)		(3,447)
Total unsecured debt, net	$	1,131,858	$	986,553
Total indebtedness	$	3,349,049	$	3,210,344

(1)The stated rates on our fixed-rate property debt are between 2.7% to 5.7%.

(2)The term loans bear interest at a one-month Term Secured Overnight Financing Rate (“SOFR”) plus 1.00% and a SOFR adjustment of 10-basis points, based on our current credit rating. As of March 31, 2024, the weighted-average interest rate for our term loans before consideration of in place interest rate swaps was 6.4%. During the three months ended March 31, 2024, we restructured and terminated certain interest rate swaps, economically hedging our entire $475 million term loan balance at an effective interest rate for 2024 of 3.5%. The term loans mature on the following schedule: $125 million matures on December 15, 2024, with a one-year extension option; $150 million matures on December 15, 2025; and $200 million matures on April 14, 2026. As of March 31, 2024, the weighted-average remaining term of the term loans was 1.8 years.

(3)As of March 31, 2024, we had capacity to borrow up to $735.7 million under our revolving credit facility after consideration of undrawn letters of credit. The revolving credit facility bears interest at a one-month Term SOFR plus 0.89% and a SOFR adjustment of 10-basis points based on our current credit rating. During the three months ended March 31, 2024, we entered into interest rate swaps economically hedging $200 million of our $260 million revolving credit facility borrowings at 4.9%. As of March 31, 2024, the weighted-average interest rate for the remaining $60 million outstanding on our revolving credit facility was 6.3%.

During the three months ended March 31, 2024, we increased the borrowings against our revolving credit facility primarily to fund the acquisition of one apartment community located in Raleigh, North Carolina.

As of March 31, 2024, our available liquidity was approximately $1.7 billion, which is comprised of available capacity on our secured and revolving credit facilities, our share of restricted cash, and our share of cash and cash equivalents. As a result of the announced Plan of Merger with Blackstone Real Estate as described in Note 12, AIR is generally prohibited from creating, incurring, assuming, replacing, prepaying, or guaranteeing any indebtedness for borrowed money or issuing or materially amending the terms of any indebtedness.

Under our credit agreement and unsecured notes payable, we have agreed to maintain certain financial covenants, as well as other covenants customary for similar credit arrangements. The financial covenants we are required to maintain include a maximum leverage ratio of no greater than 0.60 to 1.00; a fixed charge coverage ratio of no less than 1.50 to 1.00, a maximum secured indebtedness to total assets ratio of no greater than 0.40 to 1.00, a maximum unsecured leverage ratio no greater than 0.60 to 1.00, and a minimum unsecured interest coverage ratio no less than 1.50 to 1.00.