Debt

12 Months Ended

Dec. 31, 2019

As of December 31, 2019, the Company's total debt, net, was $572,850, which consists of mortgages payable, net, of $175,321 and credit agreements, net, of $397,529. The Company believes that it has the ability to repay, refinance or extend any of its debt, and that it has adequate sources of funds to meet short-term cash needs related to its mortgages payable and credit agreements. It is anticipated that the Company will use proceeds from property sales, cash on hand, and available capacity on credit agreements, if any, to repay, refinance or extend the mortgages payable maturing in the near term.

Mortgages payable

As of December 31, 2019 and 2018, the Company had the following mortgages payable outstanding:



	December 31, 2019			December 31, 2018
Mortgages payable (a)	$	176,051		$	213,925
Premium, net of accumulated amortization	—			239
Discount, net of accumulated amortization	(121		)	(158		)
Debt issuance costs, net of accumulated amortization	(609		)	(1,079		)
Total mortgages payable, net	$	175,321		$	212,927


(a)	Mortgages payable had fixed interest rates ranging from 3.49% to 5.49% as of December 31, 2019 and 2018, with a weighted average interest rate of 4.34% and 4.33% as of December 31, 2019 and 2018, respectively.

Some of the mortgage loans require compliance with certain covenants, such as debt service coverage ratios, investment restrictions and distribution limitations. As of December 31, 2019 and 2018, the Company was in compliance with all mortgage loan requirements.

The following table shows the scheduled maturities of the Company's mortgages payable as of December 31, 2019, for each of the next five years, and thereafter:



	Maturities during the year ending December 31,
	2020		2021		2022		2023		2024		Thereafter		Total
Mortgages payable	$	41,000	$	—	$	49,788	$	40,933	$	15,700	$	28,630	$	176,051

Credit Agreements

Unsecured revolving line of credit

On December 21, 2018, the Company entered into an unsecured revolving credit agreement, which amended and restated the Company’s prior unsecured revolving credit agreement in its entirety, and provides for a $350,000 unsecured revolving line of credit (the "Revolving Credit Agreement"). The Revolving Credit Agreement has a 4-year term maturing on December 21, 2022, with two six month extension options. Interest rates are based on the Company's total leverage ratio or, at the Company's one-time irrevocable option, upon achievement of an investment-grade credit rating. A facility fee accrues on the aggregate commitments at a rate ranging from 0.15% to 0.30% depending on the Company’s total leverage ratio, and as of December 31, 2019 and 2018, the facility fee was 0.15%. As of December 31, 2019, the Company had no outstanding borrowings under the unsecured revolving credit agreements.

Unsecured term loans

On December 21, 2018, the Company entered into an unsecured term loan credit agreement, which amended and restated the Company’s prior unsecured term loan credit agreement in its entirety, and provides for $400,000 in unsecured term loans (the "Term Loan Agreement"). The Term Loan Agreement consists of two tranches: a $250,000 5-year tranche maturing on December 21, 2023, and a $150,000 5.5-year tranche maturing on June 21, 2024. Interest rates are based on the Company's total leverage ratio or, at the Company's one-time irrevocable option, upon achievement of an investment-grade credit rating.

The term loan credit facility is subject to maintenance of certain financial covenants. As of December 31, 2019 and 2018, the Company was in compliance with all of the covenants and default provisions under the credit agreements.

As of December 31, 2019 and 2018, the Company had the following borrowings outstanding under its unsecured term loans:



	December 31, 2019				December 31, 2018
	Principal Balance			Interest Rate	Principal Balance			Interest Rate	Maturity Date
$250.0 million 5 year - swapped to fixed rate	$	100,000		2.6795% (a)	$	90,000		2.5510% (a)	December 21, 2023
$250.0 million 5 year - swapped to fixed rate	100,000			2.6795% (a)	60,000			2.5525% (a)	December 21, 2023
$250.0 million 5 year - variable rate	50,000			2.8911% (b)	50,000			3.5493% (c)	December 21, 2023
$250.0 million 5 year - variable rate	—			—%	26,000			3.6794% (d)	December 21, 2023
$150.0 million 5.5 year - swapped to fixed rate	50,000			2.6915% (a)	50,000			3.5493% (c)	June 21, 2024
$150.0 million 5.5 year - swapped to fixed rate	50,000			2.6990% (a)	50,000			3.5493% (c)	June 21, 2024
$150.0 million 5.5 year - variable rate	50,000			2.8911% (b)	26,000			3.6794% (d)	June 21, 2024
Total unsecured term loans	400,000				352,000
Issuance costs, net of accumulated amortization	(2,471		)		(3,145		)
Total outstanding credit agreements, net	$	397,529			$	348,855

(a)

During the third quarter of 2019, the Company entered into four interest rate swap agreements which effectively replaced the two previous interest rate swaps which terminated on December 1, 2019. Of the four new interest rate swap agreements, two have a notional amount of $100,000, an effective date of December 2, 2019, a termination date of December 21, 2023, and achieve a fixed interest rate of 2.6795%. The other two interest rate swap agreements each have a notional amount of $50,000, an effective date of December 2, 2019, a termination date of June 21, 2024, and achieve fixed interest rates of 2.6915% and 2.6990%. As of December 31, 2018, the Company swapped $90,000 (notional amount of $90,000) and $60,000 (notional amount of $60,000) of variable-rate debt at an interest rate of 1-Month LIBOR plus 1.20% to a fixed rate of 2.5510% and 2.5525%, respectively. The swaps had an effective date of December 10, 2015, and a termination date of December 1, 2019.


(b)	Interest rate reflects 1-Month LIBOR plus 1.20% effective December 2, 2019.


(c)	Interest rate reflects 1-Month LIBOR plus 1.20% as of December 3, 2018.


(d)	Interest rate reflects 1-Month LIBOR plus 1.20% as of December 21, 2018.

For the years ending December 31, 2019 and 2018, each of the Company's interest rate swaps are in an asset position and included within deferred costs and other assets, net on the consolidated balance sheets. The Company has designated these interest rate swaps as cash flow hedges. The following table represents the effect of the derivative financial instruments on the consolidated financial statements:



Location and amount of gain recognized in accumulated comprehensive income					Location and amount of gain (loss) reclassified from accumulated comprehensive income into net income						Total interest expense presented in the consolidated statements of operations in which the effects of cash flow hedges are recorded
	2019		2018	2017		2019		2018	2017			2019		2018	2017
Unrealized gain on derivatives	$	816	923	1,183	Interest expense, net	$	1,396	956	(423	)	Interest expense, net	$	22,717	24,943	30,155

As of December 31, 2019, the Company expects $379 of deferred amounts in accumulated comprehensive income to be reclassified into earnings during the next 12 months.