DEBT (Tables)

9 Months Ended

Sep. 30, 2022

A summary of our consolidated debt is as follows:


	Weighted-Average
	Effective Interest Rate as of					Balance as of
	September 30,		December 31,			September 30,		December 31,
($ in thousands)	2022		2021		Current Maturity Date	2022		2021
Line of credit (1)	4.41	%	1.35	%	November 2025	$	185,000	$	256,000
Term loan (2)	3.57		3.16		November 2026		400,000		325,000
Term loan (3)	4.39		3.19		January 2027		400,000		200,000
Fixed-rate mortgage notes	3.48		3.49		December 2025 - May 2031		380,546		381,954
Floating-rate mortgage notes (4)	4.52		2.26		October 2024 - October 2026		207,600		207,600
Total principal amount / weighted-average (5)	3.98	%	2.78	%		$	1,573,146	$	1,370,554
Less: unamortized debt issuance costs						$	(15,588)	$	(16,762)
Add: unamortized mark-to-market adjustment on assumed debt							8,667		9,442
Total debt, net						$	1,566,225	$	1,363,234
Gross book value of properties encumbered by debt						$	969,752	$	981,927

(1)

The effective interest rate is calculated based on the Secured Overnight Financing Rate plus an 11.448 basis point adjustment (“Term SOFR”), plus a margin ranging from 1.25% to 2.00% depending on our consolidated leverage ratio. As of September 30, 2022, the unused and available portions under the line of credit were approximately $715.0 million and $573.3 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 Term SOFR, 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)

(4)

The effective interest rate is calculated based on the London Interbank Offered Rate (“LIBOR”) plus a margin. As of both September 30, 2022 and December 31, 2021, our floating-rate mortgage notes were subject to interest rate spreads ranging from 1.55% to 2.50%. As of September 30, 2022, our floating-rate mortgage notes were capped at 4.50% and 4.55% through interest rate cap agreements.

(5)	The weighted-average remaining term of our consolidated borrowings was approximately 4.2 years as of September 30, 2022, excluding the impact of certain extension options.

Schedule of Maturities of Long-term Debt

As of September 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	$	—	$	—	$	204	$	204
2023		—		—		1,463		1,463
2024		—		—		129,265		129,265
2025		185,000		—		72,360		257,360
2026		—		400,000		84,214		484,214
Thereafter		—		400,000		300,640		700,640
Total principal payments	$	185,000	$	800,000	$	588,146	$	1,573,146

(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			Other Assets	Other Liabilities
As of September 30, 2022
Interest rate swaps	12	$	650,000	$	20,148	$	—
Interest rate caps	2		207,600		4,341		—
Total derivative instruments	14	$	857,600	$	24,489	$	—
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

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 Nine Months Ended
	September 30,				September 30,
(in thousands)	2022		2021		2022		2021
Derivative instruments designated as cash flow hedges:
Gain (loss) recognized in AOCI	$	17,114	$	(224)	$	27,976	$	2,519
Amount reclassified from AOCI into interest expense		331		2,537		3,282		7,740
Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded		42,255		17,866		100,439		51,477
Derivative instruments not designated as cash flow hedges:
Gain (loss) recognized in other income	$	1,691	$	—	$	4,223	$	(13)