Notes Payable

12 Months Ended

Dec. 31, 2021

Notes Payable [Abstract]

Notes Payable

Notes PayableOur notes payable are reflected net of issuance costs (including original issue discounts), which are amortized as interest expense on the effective interest method over the term of each respective note. Our notes payable at December 31, 2021 and 2020 are set forth in the tables below:

			Amounts at December 31, 2021
	Coupon Rate	Effective Rate	Principal		Unamortized Costs		Book  Value		Fair  Value
			($ amounts in thousands)
U.S. Dollar Denominated Unsecured Debt
Notes due September 15, 2022	2.370%	2.483%	$	500,000	$	(363)	$	499,637	$	506,362
Notes due April 23, 2024	SOFR+0.47%	0.617%	700,000		(1,628)		698,372		700,314
Notes due February 15, 2026	0.875%	1.030%	500,000		(3,061)		496,939		488,141
Notes due November 9, 2026	1.500%	1.640%	650,000		(4,227)		645,773		649,996
Notes due September 15, 2027	3.094%	3.218%	500,000		(3,020)		496,980		535,206
Notes due May 1, 2028	1.850%	1.962%	650,000		(4,276)		645,724		649,221
Notes due November 9, 2028	1.950%	2.044%	550,000		(3,299)		546,701		548,241
Notes due May 1, 2029	3.385%	3.459%	500,000		(2,257)		497,743		545,580
Notes due May 1, 2031	2.300%	2.419%	650,000		(6,383)		643,617		656,546
Notes due November 9, 2031	2.250%	2.322%	550,000		(3,488)		546,512		551,932
			5,750,000		(32,002)		5,717,998		5,831,539
Euro Denominated Unsecured Debt
Notes due April 12, 2024	1.540%	1.540%	113,431		—		113,431		117,526
Notes due November 3, 2025	2.175%	2.175%	274,518		—		274,518		295,256
Notes due September 9, 2030	0.500%	0.640%	794,017		(9,730)		784,287		769,561
Notes due January 24, 2032	0.875%	0.978%	567,155		(5,394)		561,761		551,842
			1,749,121		(15,124)		1,733,997		1,734,185
Mortgage Debt, secured by 11 real estate facilities with a net book value of $66.1 million	3.878%	3.897%	23,284		—		23,284		24,208
			$	7,522,405	$	(47,126)	$	7,475,279	$	7,589,932

	Amounts at
	December 31, 2020
	Book Value		Fair Value
	($ amounts in thousands)
U.S. Dollar Denominated Unsecured Debt
Notes due September 15, 2022	$	499,109	$	517,419
Notes due September 15, 2027	496,452		560,833
Notes due May 1, 2029	497,433		574,833
	1,492,994		1,653,085
Euro Denominated Unsecured Debt
Notes due April 12, 2024	122,646		129,192
Notes due November 3, 2025	296,821		323,552
Notes due January 24, 2032	607,301		634,389
	1,026,768		1,087,133
Mortgage Debt	25,230		26,958
	$	2,544,992	$	2,767,176

U.S. Dollar Denominated Unsecured Notes

On January 19, 2021, we completed a public offering of $500 million aggregate principal amount of senior notes bearing interest at an annual rate of 0.875% and maturing on February 15, 2026. Interest on the senior notes is payable semi-annually, commencing on August 15, 2021. In connection with the offering, we incurred $3.8 million in costs.

On April 23, 2021, we completed a public offering of $700 million, $650 million and $650 million aggregate principal amount of senior notes bearing interest at an annual rate of the Compounded Secured Overnight Financing Rate (“SOFR”) plus 0.47% (reset quarterly and at 0.52% as of December 31, 2021), 1.850% and 2.300%, respectively, and maturing on April 23, 2024, May 1, 2028 and May 1, 2031, respectively. Interest on the 2024 notes is payable quarterly, commencing on July 23, 2021. Interest on the 2028 notes and 2031 notes is payable semi-annually, commencing on November 1, 2021. In connection with the offering, we incurred a total of $13.7 million in costs.

On November 9, 2021, we completed a public offering of $650 million, $550 million and $550 million aggregate principal amount of senior notes bearing interest at an annual rate of 1.500%, 1.950% and 2.250%, respectively, and maturing on November 9, 2026, November 9, 2028 and November 9, 2031, respectively. Interest on the senior notes is payable semi-annually, commencing on May 9, 2022. In connection with the offering, we incurred a total of $11.3 million in costs.

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 U.S. Dollar Denominated Unsecured Notes have various financial covenants, with which we were in compliance at December 31, 2021. Included in these covenants are (a) a maximum Debt to Total Assets of 65% (approximately 16% at December 31, 2021) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5x (approximately 30x for the twelve months ended December 31, 2021) 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”) consist of four tranches: (i) €242.0 million issued to institutional investors on November 3, 2015 for $264.3 million in net proceeds upon converting the Euros to U.S. Dollars, (ii) €100.0 million issued to institutional investors on April 12, 2016 for $113.6 million in net proceeds upon converting the Euros to U.S. Dollars, (iii) €500.0 million issued in a public offering on January 24, 2020 for $545.2 million in net proceeds upon converting the Euros to U.S. Dollars, and (iv) €700.0 million issued in a public offering on September 9, 2021 for $817.6 million in net proceeds upon converting the Euros to U.S. Dollars. Interest is payable semi-annually on the notes issued November 3, 2015 and April 12, 2016, and annually on the notes issued January 24, 2020 and September 9, 2021. The Euro Notes have financial covenants similar to those of the U.S. Dollar Denominated Unsecured Notes.

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 $111.8 million for 2021, as compared to losses of $98.0 million for 2020 and gains of $7.8 million for 2019).

Mortgage Notes

We assumed our non-recourse mortgage debt in connection with property acquisitions, and we recorded such debt 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, 2021, the related contractual interest rates are fixed, ranging between 3.2% and 7.1%, and mature between November 1, 2022 and July 1, 2030.

At December 31, 2021, approximate principal maturities of our Notes Payable are as follows (amounts in thousands):

	Unsecured Debt		Mortgage Debt		Total
2022	$	500,000	$	2,483	$	502,483
2023	—		19,219		19,219
2024	813,431		124		813,555
2025	274,518		131		274,649
2026	1,150,000		138		1,150,138
Thereafter	4,761,172		1,189		4,762,361
	$	7,499,121	$	23,284	$	7,522,405
Weighted average effective rate	1.8%		3.9%		1.8%

Cash paid for interest totaled $77.7 million, $52.7 million and $48.3 million for 2021, 2020, and 2019, respectively. Interest capitalized as real estate totaled $3.5 million, $3.4 million and $3.9 million for 2021, 2020, and 2019, respectively.