Mortgages Payable

Mortgage loans outstanding for as of September 30, 2014 and December 31, 2013 were $3,960,285 and $4,737,459 and had a weighted average interest rate of 4.83% and 5.09% per annum, respectively. Of these mortgage loans outstanding at September 30, 2014 and December 31, 2013, approximately $510,405 and $1,338,360 related to properties held for sale, respectively. Mortgage premium and discount, net, was a discount of $13,204 and $17,459 as of September 30, 2014 and December 31, 2013, respectively. Of this mortgage discount, net, a discount of $133 and $51 related to properties held for sale at September 30, 2014 and December 31, 2013, respectively. As of September 30, 2014, scheduled maturities for the Company’s outstanding mortgage indebtedness had various due dates through December 2041, as follows:



Maturity Date	As of September 30, 2014	Weighted average annual interest rate
2014	$73,558	2.66%
2015	425,441	3.45%
2016	718,769	5.36%
2017	1,092,401	5.67%
2018	690,992	4.83%
Thereafter	959,124	4.25%
Total	$3,960,285	4.83%

The Company is negotiating refinancing debt maturing in 2014 with various lenders at terms that will allow the Company to pay comparable interest rates. It is anticipated that the Company will be able to repay, refinance or extend the debt maturing in 2014, and the Company believes it has adequate sources of funds to meet short term cash needs related to these refinancings. Of the total outstanding debt for all years, approximately $227,640 is recourse to the Company, of which $15,344 relates to properties classified as held for sale as of September 30, 2014.

Some of the mortgage loans require compliance with certain covenants, such as debt coverage service ratios, investment restrictions and distribution limitations. As of September 30, 2014, the Company was in compliance with all mortgage loan requirements except three loans with a carrying value of $73,695; none of which are cross collateralized with any other mortgage loans or recourse to the Company. The stated maturities of the mortgage loans in default at September 30, 2014 are reflected as follows: $73,695 in 2017. As of December 31, 2013, the Company was in compliance with all mortgage loan requirements except six loans with a carrying value of $116,910; none of which were cross collateralized with any other mortgage loans or recourse to the Company. The stated maturities of the mortgage loans in default at December 31, 2013 were reflected as follows: $12,100 in 2011, $11,000 in 2012, $20,115 in 2016, and $73,695 in 2017.

Line of Credit

In 2013, the Company entered into a credit agreement with KeyBank National Association, JP Morgan Chase Bank National Association and other financial institutions to provide for a senior unsecured credit facility in the aggregate amount of $500,000. The credit facility consists of a $300,000 senior unsecured revolving line of credit and the total outstanding term loan is $200,000. The Company's accordion feature is $800,000. The senior unsecured revolving line of credit matures on May 7, 2016 and the unsecured term loan matures on May 7, 2017. The Company has a one year extension option on the revolver which it may exercise as long as there is no existing default, it is in compliance with all covenants, a 60-day notice has been provided and it pays an extension fee equal to 0.20% of the commitment amount being extended.

As of September 30, 2014, the Company was in compliance with all of the covenants and default provisions under the credit agreement. As of September 30, 2014, the interest rates of the revolving line of credit and unsecured term loan were 1.76% and 1.66%, respectively. As of December 31, 2013, the interest rates of the revolving line of credit and unsecured term loan were 1.60% and 1.67%, respectively. Upon closing the credit agreement, the Company borrowed the full amount of the term loan which remains outstanding as of September 30, 2014. As of September 30, 2014 and December 31, 2013, the Company had $300,000 and $299,820 available under the revolving line of credit, respectively.

Margins payable

The Company has purchased a portion of its securities through margin accounts. As of September 30, 2014, the Company had no securities purchased on margin. As of December 31, 2013, the Company had $59,681 of securities purchased on margin. At September 30, 2014 and December 31, 2013, the average interest rate on margin loans was 0.503% and 0.516%, respectively. Interest expense in the amount of $3 and $70 was recognized in interest expense on the consolidated statements of operations and comprehensive income for the three months ended September 30, 2014 and 2013, respectively. Interest expense in the amount of $133 and $404 was recognized in interest expense on the consolidated statements of operations and comprehensive income for the nine months ended September 30, 2014 and 2013, respectively.