NOTES PAYABLE

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Notes Payable

7. NOTES PAYABLE

          Our outstanding debt as of June 30, 2014, and December 31, 2013, consisted of the following (in thousands):

	June 30, 2014		December 31, 2013
Fixed-rate mortgage loans	$	198,786	$	199,851
$75 Million Facility		20,500		—
Total	$	219,286	$	199,851

          On June 24, 2014, we borrowed $20.5 million under our $75 Million Facility to fund a portion of the Lantern Lane shopping center purchase price. See also Note 3. As of June 30, 2014, the $75 Million Facility (our primary source of additional credit) had an outstanding balance of $20.5 million with $51.6 million available for future borrowings for general corporate purposes, including debt refinancing, property acquisitions, construction, renovations, expansions, tenant improvement costs and equity investments.

          The $75 Million Facility has an accordion feature that may allow us to increase the availability by $75.0 million to $150.0 million provided we are not in default. The $75 Million Facility bears interest at LIBOR plus a margin of 205 basis points to 275 basis points, depending on our leverage ratio, and matures in August 2015. The interest rate as of June 30, 2014 was 2.21%. The amount available for us to borrow under the $75 Million Facility at any given time is subject to the lesser of the unencumbered asset property value at such time, the maximum commitment amount at such time or an amount that results in a debt service coverage ratio for the four preceding calendar quarters of 1.50 to 1.00.

          Our ability to borrow under the $75 Million Facility is subject to our ongoing compliance with a number of customary restrictive covenants, including a maximum leverage ratio, a minimum fixed charge coverage ratio, a maximum recourse debt ratio, a minimum net worth and maximum dividend payout ratio. As of June 30, 2014, we were in compliance with our covenants under our $75 Million Facility. We also covenant that certain changes in our executive management team will not occur unless the departing executive management team member is replaced by a party reasonably acceptable to the administrative agent within 90 days of such departure. Additionally, it will constitute an event of default under the $75 Million Facility if we default on any of our other indebtedness that equals or exceeds $1.0 million, including any indebtedness we have guaranteed.

          As of June 30, 2014, the weighted average interest rate on our fixed-rate debt was 4.7% and the remaining average life on such debt was 3.6 years.