Notes Payable

12 Months Ended

Dec. 31, 2019

6.Notes Payable

Our notes payable at December 31, 2019 and 2018 are set forth in the table below:


			Amounts at December 31, 2019
	Coupon	Effective			Unamortized			Book		Fair
	Rate	Rate		Principal	Costs			Value		Value
			($ amounts in thousands)
U.S. Dollar Denominated Unsecured Debt
Notes due September 15, 2022	2.370%	2.483%	$	500,000	$	(1,419)	$	498,581	$	505,639
Notes due September 15, 2027	3.094%	3.218%		500,000		(4,076)		495,924		520,694
Notes due May 1, 2029	3.385%	3.459%		500,000		(2,876)		497,124		531,911
				1,500,000		(8,371)		1,491,629		1,558,244

Euro Denominated Unsecured Debt
Notes due April 12, 2024	1.540%	1.540%		112,156		-		112,156		115,932
Notes due November 3, 2025	2.175%	2.175%		271,433		-		271,433		298,398
				383,589		-		383,589		414,330
Mortgage Debt, secured by 27
real estate facilities with a net
book value of $105.7 million	4.025%	3.995%		27,275		-		27,275		28,506

			$	1,910,864	$	(8,371)	$	1,902,493	$	2,001,080


	Amounts at
	December 31, 2018
		Book		Fair
		Value		Value
	($ amounts in thousands)
U.S. Dollar Denominated Unsecured Debt
Notes due September 15, 2022	$	498,053	$	482,017
Notes due September 15, 2027		495,396		469,055
Notes due May 1, 2029		-		-
		993,449		951,072

Euro Denominated Unsecured Debt
Notes due April 12, 2024		114,449		115,964
Notes due November 3, 2025		276,982		286,078
		391,431		402,042

Mortgage Debt		27,403		27,613

	$	1,412,283	$	1,380,727

U.S. Dollar Denominated Unsecured Notes

On September 18, 2017, we issued, in a public offering, two tranches each totaling $500.0 million of U.S. Dollar denominated unsecured notes. In connection with the offering, we incurred a total of $7.9 million in costs, which is reflected as a reduction in the principal amount and amortized, using the effective interest method, over the term of each respective note. Interest on such notes is payable semi-annually on March 15 and September 15 of each year, commencing March 15, 2018.

On April 12, 2019, we completed a public offering of $500 million in aggregate principal amount of senior notes bearing interest at an annual rate of 3.385% maturing on May 1, 2029. In connection with the offering, we incurred a total of $3.1 million in costs. The notes issued on April 12, 2019 and on September 18, 2017 are referred to hereinafter as the “U.S. Dollar Notes.”

The U.S. Dollar Notes have various financial covenants, all of which we were in compliance with at December 31, 2019. Included in these covenants are (a) a maximum Debt to Total Assets of 65% (approximately 5% at December 31, 2019) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5x (approximately 47x for the twelve months ended December 31, 2019) as well as covenants limiting the amount we can encumber our properties with mortgage debt.

Euro Denominated Unsecured Notes

Our euro denominated unsecured notes (the “Euro Notes”) are payable to institutional investors. The Euro Notes consist of two tranches, (i) €242.0 million issued on November 3, 2015 for $264.3 million in net proceeds upon converting the Euros to U.S. Dollars and (ii) €100.0 million issued on April 12, 2016 for $113.6 million in net proceeds upon converting the Euros to U.S. Dollars. Interest is payable semi-annually. The Euro Notes have various customary financial covenants, all of which we were in compliance with at December 31, 2019.

We reflect changes in the U.S. Dollar equivalent of the amount payable, as a result of changes in foreign exchange rates as “foreign currency exchange gain (loss)” on our income statement (gains of $7.8 million and $18.1 million for 2019 and 2018, respectively, as compared to a loss of $50.0 million for 2017).

Mortgage Notes

Our non-recourse mortgage debt was assumed in connection with property acquisitions, and recorded at fair value with any premium or discount to the stated note balance amortized using the effective interest method.

During 2019, we assumed a mortgage note with a contractual value of $1.8 million and an interest rate of 3.9%, which approximated market rate, in connection with the acquisition of a real estate facility.

At December 31, 2019, the related contractual interest rates are fixed, ranging between 3.2% and 7.1%, and mature between January 1, 2022 and July 1, 2030.

At December 31, 2019, approximate principal maturities of our Notes Payable are as follows (amounts in thousands):


	Unsecured		Mortgage
	Debt		Debt		Total


2020	$	-	$	2,015	$	2,015
2021		-		1,871		1,871
2022		500,000		2,584		502,584
2023		-		19,219		19,219
2024		112,156		124		112,280
Thereafter		1,271,433		1,462		1,272,895
	$	1,883,589	$	27,275	$	1,910,864
Weighted average effective rate		2.8%		4.0%		2.9%

Cash paid for interest totaled $48.3 million, $36.3 million and $16.8 million for 2019, 2018 and 2017, respectively. Interest capitalized as real estate totaled $3.9 million, $4.8 million and $4.4 million for 2019, 2018 and 2017, respectively.