Debt (Tables)

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Summary of mortgages payable

The following table summarizes the Company’s mortgages payable:

	June 30, 2020						December 31, 2019
	Balance			Weighted Average Interest Rate		Weighted Average Years to Maturity	Balance			Weighted Average Interest Rate		Weighted Average Years to Maturity
Fixed rate mortgages payable (a)	$	93,662		4.37	%	4.6	$	94,904		4.37	%	5.1
Discount, net of accumulated amortization	(471		)				(493		)
Capitalized loan fees, net of accumulated amortization	(224		)				(256		)
Mortgages payable, net	$	92,967					$	94,155

(a)

The fixed rate mortgages had interest rates ranging from 3.75% to 7.48% as of June 30, 2020 and December 31, 2019.

Summary of unsecured notes payable

The following table summarizes the Company’s unsecured notes payable:

		June 30, 2020					December 31, 2019
Unsecured Notes Payable	Maturity Date	Balance			Interest Rate/ Weighted Average Interest Rate		Balance			Interest Rate/ Weighted Average Interest Rate
Senior notes – 4.12% due 2021	June 30, 2021	$	100,000		4.12	%	$	100,000		4.12	%
Senior notes – 4.58% due 2024	June 30, 2024	150,000			4.58	%	150,000			4.58	%
Senior notes – 4.00% due 2025 (a)	March 15, 2025	250,000			4.00	%	250,000			4.00	%
Senior notes – 4.08% due 2026	September 30, 2026	100,000			4.08	%	100,000			4.08	%
Senior notes – 4.24% due 2028	December 28, 2028	100,000			4.24	%	100,000			4.24	%
Senior notes – 4.82% due 2029	June 28, 2029	100,000			4.82	%	100,000			4.82	%
		800,000			4.27	%	800,000			4.27	%
Discount, net of accumulated amortization		(556		)			(616		)
Capitalized loan fees, net of accumulated amortization		(2,876		)			(3,137		)
	Total	$	796,568				$	796,247

(a)

Subsequent to June 30, 2020, the Company completed an offering of $100,000 aggregate principal amount of its 4.00% senior unsecured notes due 2025 (Notes Due 2025), issued at 99.010% of par value plus accrued and unpaid interest from March 15, 2020 through July 20, 2020. This $100,000 offering constitutes a further issuance of, and forms a single series with, the Company’s previously issued Notes Due 2025, of which $250,000 was outstanding as of June 30, 2020, and will mature on March 15, 2025, unless earlier redeemed. The total aggregate principal amount of Notes Due 2025 currently outstanding is $350,000, which enables the Notes Due 2025 to be eligible for index inclusion. The proceeds were used to repay borrowings on the Company’s unsecured revolving line of credit and for general corporate purposes.

Summary of term loans and revolving line of credit

The following table summarizes the Company’s term loans and revolving line of credit:

		June 30, 2020					December 31, 2019
	Maturity Date	Balance			Interest Rate		Balance			Interest Rate
Unsecured credit facility term loan due 2021 – fixed rate (a)	January 5, 2021	$	250,000		3.35	%	$	250,000		3.20	%
Unsecured term loan due 2023 – fixed rate (b)	November 22, 2023	200,000			4.20	%	200,000			4.05	%
Unsecured term loan due 2024 – fixed rate (c)	July 17, 2024	120,000			2.93	%	120,000			2.88	%
Unsecured term loan due 2026 – fixed rate (d)	July 17, 2026	150,000			3.42	%	150,000			3.27	%
Subtotal		720,000					720,000
Capitalized loan fees, net of accumulated amortization		(3,008		)			(3,477		)
Term loans, net		$	716,992				$	716,523
Unsecured credit facility revolving line of credit – variable rate (e)	April 22, 2022	$	135,000		1.33	%	$	18,000		2.85	%

(a) $250,000 of LIBOR-based variable rate debt has been swapped to a fixed rate of 2.00% plus a credit spread based on a leverage grid ranging from 1.20% to 1.70% through January 5, 2021. The applicable credit spread was 1.35% and 1.20% as of June 30, 2020 and December 31, 2019, respectively.

(b) $200,000 of LIBOR-based variable rate debt has been swapped to a fixed rate of 2.85% plus a credit spread based on a leverage grid ranging from 1.20% to 1.85% through November 22, 2023. The applicable credit spread was 1.35% and 1.20% as of June 30, 2020 and December 31, 2019, respectively.

(c) $120,000 of LIBOR-based variable rate debt has been swapped to a fixed rate of 1.68% plus a credit spread based on a leverage grid ranging from 1.20% to 1.70% through July 17, 2024. The applicable credit spread was 1.25% and 1.20% as of June 30, 2020 and December 31, 2019, respectively.

(d) $150,000 of LIBOR-based variable rate debt has been swapped to a fixed rate of 1.77% plus a credit spread based on a leverage grid ranging from 1.50% to 2.20% through July 17, 2026. The applicable credit spread was 1.65% and 1.50% as of June 30, 2020 and December 31, 2019, respectively.

(e)

Excludes capitalized loan fees, which are included within “Other assets, net” in the accompanying condensed consolidated balance sheets. The revolving line of credit has two six-month extension options that the Company can exercise, at its election, subject to (i) customary representations and warranties, including, but not limited to, the absence of an event of default as defined in the unsecured credit agreement and (ii) payment of an extension fee equal to 0.075% of the revolving line of credit capacity.

Summary of unsecured credit facility

The following table summarizes the key terms of the Unsecured Credit Facility:

				Leverage-Based Pricing		Investment Grade Pricing
Unsecured Credit Facility	Maturity Date	Extension Option	Extension Fee	Credit Spread	Facility Fee	Credit Spread	Facility Fee
$250,000 unsecured term loan due 2021	1/5/2021	N/A	N/A	1.20%–1.70%	N/A	0.90%–1.75%	N/A
$850,000 unsecured revolving line of credit	4/22/2022	2 six-month	0.075%	1.05%–1.50%	0.15%–0.30%	0.825%–1.55%	0.125%–0.30%

Summary of unsecured term loans

The following table summarizes the key terms of the unsecured term loans:

Unsecured Term Loans	Maturity Date	Leverage-Based Pricing Credit Spread				Investment Grade Pricing Credit Spread
$200,000 unsecured term loan due 2023	11/22/2023	1.20	%	–	1.85%	0.85	%	–	1.65%
$120,000 unsecured term loan due 2024	7/17/2024	1.20	%	–	1.70%	0.80	%	–	1.65%
$150,000 unsecured term loan due 2026	7/17/2026	1.50	%	–	2.20%	1.35	%	–	2.25%

Summary of scheduled maturities and principal amortization of indebtedness

The following table summarizes the scheduled maturities and principal amortization of the Company’s indebtedness as of June 30, 2020 for the remainder of 2020, each of the next four years and thereafter, and the weighted average interest rates by year. The table does not reflect the impact of any debt activity that occurred after June 30, 2020, such as the $100,000 public offering of Notes Due 2025, which were issued on July 21, 2020.

	2020			2021			2022			2023			2024			Thereafter			Total
Debt:
Fixed rate debt:
Mortgages payable (a)	$	1,252		$	2,626		$	26,678		$	31,758		$	1,737		$	29,611		$	93,662
Fixed rate term loans (b)	—			250,000			—			200,000			120,000			150,000			720,000
Unsecured notes payable (c)	—			100,000			—			—			150,000			550,000			800,000
Total fixed rate debt	1,252			352,626			26,678			231,758			271,737			729,611			1,613,662
Variable rate debt:
Variable rate revolving line of credit	—			—			135,000			—			—			—			135,000
Total debt (d)	$	1,252		$	352,626		$	161,678		$	231,758		$	271,737		$	729,611		$	1,748,662
Weighted average interest rate on debt:
Fixed rate debt	4.41		%	3.58		%	4.81		%	4.19		%	3.85		%	4.05		%	3.95		%
Variable rate debt (e)	—			—			1.33		%	—			—			—			1.33		%
Total	4.41		%	3.58		%	1.90		%	4.19		%	3.85		%	4.05		%	3.74		%

(a) Excludes mortgage discount of $(471) and capitalized loan fees of $(224), net of accumulated amortization, as of June 30, 2020.

(b) Excludes capitalized loan fees of $(3,008), net of accumulated amortization, as of June 30, 2020. The following variable rate term loans have been swapped to fixed rate debt: (i) $250,000 of LIBOR-based variable rate debt has been swapped to a fixed rate of 2.00% plus a credit spread based on a leverage grid through January 5, 2021; (ii) $200,000 of LIBOR-based variable rate debt has been swapped to a fixed rate of 2.85% plus a credit spread based on a leverage grid through November 22, 2023; (iii) $120,000 of LIBOR-based variable rate debt has been swapped to a fixed rate of 1.68% plus a credit spread based on a leverage grid through July 17, 2024; and (iv) $150,000 of LIBOR-based variable rate debt has been swapped to a fixed rate of 1.77% plus a credit spread based on a leverage grid through July 17, 2026. As of June 30, 2020, the applicable credit spread for (i) and (ii) was 1.35%, for (iii) was 1.25% and for (iv) was 1.65%.

(c) Excludes discount of $(556) and capitalized loan fees of $(2,876), net of accumulated amortization, as of June 30, 2020.

(d) The weighted average years to maturity of consolidated indebtedness was 4.1 years as of June 30, 2020.

(e)

Represents interest rate as of June 30, 2020.