DEBT (Tables)

6 Months Ended

Jun. 30, 2022

A summary of our consolidated debt is as follows:


	Weighted-Average
	Effective Interest Rate as of					Balance as of
	June 30,		December 31,			June 30,		December 31,
($ in thousands)	2022		2021		Current Maturity Date	2022		2021
Line of credit (1)	3.04	%	1.35	%	November 2025	$	383,000	$	256,000
Term loan (2)	3.24		3.16		November 2026		400,000		325,000
Term loan (3)	2.99		3.19		January 2027		400,000		200,000
Fixed-rate mortgage notes	3.48		3.49		October 2022 - May 2031		380,797		381,954
Floating-rate mortgage note (4)	3.92		2.26		October 2024 - October 2026		207,600		207,600
Total principal amount / weighted-average (5)	3.27	%	2.78	%		$	1,771,397	$	1,370,554
Less: unamortized debt issuance costs						$	(15,030)	$	(16,762)
Add: unamortized mark-to-market adjustment on assumed debt							8,925		9,442
Total debt, net						$	1,765,292	$	1,363,234
Gross book value of properties encumbered by debt						$	966,932	$	981,927

(1)

The effective interest rate is calculated based on the London Interbank Offered Rate (“LIBOR”), plus a margin ranging from 1.25% to 2.00%, depending on our consolidated leverage ratio. As of June 30, 2022, the unused and available portions under the line of credit were approximately $317.0 million and $316.8 million, respectively. The line of credit is available for general business purposes including, but not limited to, refinancing of existing indebtedness and financing the acquisition of permitted investments, including commercial properties.

(2)

The effective interest rate is calculated based on LIBOR, plus a margin ranging from 1.20% to 1.90%, depending on our consolidated leverage ratio. Total commitments for this term loan are $400.0 million. The weighted-average interest rate is the all-in interest rate, including the effects of interest rate swap agreements relating to approximately $300.0 million in borrowings under this term loan.

(3)	The effective interest rate is calculated based on LIBOR, plus a margin ranging from 1.20% to 1.90%, depending on our consolidated leverage ratio. Total commitments for this term loan are $400.0 million.

(4)	The effective interest rate is calculated based on LIBOR plus a margin. As of both June 30, 2022 and December 31, 2021, our floating-rate mortgage notes were subject to interest rate spreads ranging from 1.55% to 2.50%.

(5)	The weighted-average remaining term of our consolidated borrowings was approximately 4.3 years as of June 30, 2022, excluding the impact of certain extension options.

Schedule of Maturities of Long-term Debt

As of June 30, 2022, the principal payments due on our consolidated debt during each of the next five years and thereafter were as follows:


(in thousands)	Line of Credit (1)		Term Loans		Mortgage Notes		Total
Remainder of 2022	$	—	$	—	$	455	$	455
2023		—		—		1,463		1,463
2024		—		—		129,265		129,265
2025		383,000		—		72,360		455,360
2026		—		400,000		84,214		484,214
Thereafter		—		400,000		300,640		700,640
Total principal payments	$	383,000	$	800,000	$	588,397	$	1,771,397

(1)	The term of the line of credit may be extended pursuant to two six-month extension options, subject to certain conditions.

Schedule of Derivative Instruments

The following table summarizes the location and fair value of our consolidated derivative instruments on our condensed consolidated balance sheets:


	Number of			Fair Value
($ in thousands)	Contracts	Notional Amount (1)			Other Assets	Other Liabilities
As of June 30, 2022
Interest rate swaps	12	$	300,000	$	4,735	$	2,019
Interest rate caps	2		207,600		2,690		—
Total derivative instruments	14	$	507,600	$	7,425	$	2,019
As of December 31, 2021
Interest rate swaps	13	$	500,000	$	164	$	11,236
Interest rate caps	2		207,600		159		—
Total derivative instruments	15	$	707,600	$	323	$	11,236

(1)	Excludes $350.0 million of notional amount for five interest rate swaps entered into in June 2022 with an effective date in July 2022.

Schedule of Derivative Instruments, Gain (Loss)

The following table presents the effect of our consolidated derivative instruments on our condensed consolidated financial statements:


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
(in thousands)	2022		2021		2022		2021
Derivative instruments designated as cash flow hedges:
Gain (loss) recognized in AOCI	$	787	$	(600)	$	10,862	$	2,743
Amount reclassified from AOCI into interest expense		1,032		2,631		2,951		5,203
Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded		33,774		17,048		58,184		33,611
Derivative instruments not designated as cash flow hedges:
Gain (loss) recognized in income	$	982	$	—	$	2,532	$	(13)