Indebtedness

3 Months Ended

Mar. 31, 2012

Indebtedness

Indebtedness

Note 5.  Indebtedness

At March 31, 2012 and December 31, 2011, our outstanding indebtedness consisted of the following:

	March 31,		December 31,
	2012		2011
Unsecured revolving credit facility, due in 2015	$	—	$	345,500
Unsecured term loan, due in 2017	350,000		—
Mortgage note payable, 5.73% interest rate, including unamortized premium of $775, due in 2015(1)	49,907		50,118
Mortgage note payable, 6.21% interest rate, due in 2016(1)	24,645		24,713
Mortgage note payable, 7.00% interest rate, including unamortized premium of $974, due in 2019(1)	10,483		10,559
Mortgage note payable, 8.15% interest rate, including unamortized premium of $749, due in 2021(1)	9,791		9,993
	$	444,826	$	440,883

(1)We assumed these mortgages in connection with our acquisition of certain properties.  The stated interest rates for these mortgage debts are the contractually stated rates; we recorded the assumed mortgages at estimated fair value on the date of acquisition and we are amortizing the fair value premiums, if any, to interest expense over the respective terms of the mortgages to reduce interest expense to the estimated market interest rates as of the date of acquisition.

We have a $550,000 unsecured revolving credit facility that is available for acquisitions, working capital and general business purposes.  Our revolving credit facility has a maturity date of October 19, 2015 and, subject to meeting certain conditions and the payment of a fee, we may extend the maturity date to October 19, 2016.   In addition, our revolving credit facility includes a feature under which maximum borrowings may be increased to up to $1,100,000 in certain circumstances.  Interest under our revolving credit facility is based upon LIBOR plus a spread that is subject to adjustment based upon changes to our senior unsecured debt ratings.  The weighted average annual interest rate for borrowings under our revolving credit facility was 1.80% for the three months ended March 31, 2012.  As of March 31, 2012, we had no amounts outstanding under our revolving credit facility.

On January 12, 2012, we entered into a five year $350,000 unsecured term loan. Our term loan matures on January 11, 2017, and is prepayable without penalty at any time.  In addition, our term loan includes a feature under which maximum borrowings may be increased to up to $700,000 in certain circumstances. Our term loan bears interest at a rate of LIBOR plus a spread that is subject to adjustment based upon changes to our senior unsecured debt ratings.  We used the net proceeds of our term loan to repay amounts outstanding under our revolving credit facility and to fund general business activities.  The weighted average annual interest rate for amounts outstanding on our term loan was 2.02% for the period from January 12, 2012 to March 31, 2012.

Our revolving credit facility agreement and our term loan agreement contain a number of covenants that restrict our ability to incur debts in excess of calculated amounts, restrict our ability to make distributions under certain circumstances and generally require us to maintain certain financial ratios.  We believe we were in compliance with the terms and conditions of our revolving credit facility agreement and our term loan agreement at March 31, 2012.

At March 31, 2012, five of our properties with an aggregate net book value of $123,825 were secured by four mortgage notes we assumed in connection with certain of our acquisitions. Our mortgage notes are non-recourse and do not contain any material financial covenants.