Indebtedness (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

Mortgage financing of property acquisitions

During the nine-month period ended September 30, 2020, the Company obtained original mortgage financing on the following properties as shown in the following table:

Property	Date	Initial principal amount (in thousands)		Fixed/Variable rate	Interest rate		Maturity date
251 Armour Yards	1/22/2020	$	3,522	Fixed	4.50	%	1/22/2025
Wakefield Crossing	1/29/2020	7,891		Fixed	3.66	%	2/1/2032
Morrocroft Centre	3/19/2020	70,000		Fixed	3.40	%	4/10/2033
Horizon at Wiregrass Ranch	4/23/2020	52,000		Fixed	2.90	%	5/1/2030
Parkside at the Beach	4/30/2020	45,037		Fixed	2.95	%	5/1/2030
		$	178,450

The following table summarizes our mortgage notes payable at September 30, 2020:

(In thousands)
Fixed rate mortgage debt:	Principal balances due		Weighted-average interest rate		Weighted average remaining life (years)
Residential Properties	$	1,442,905	3.68	%	8.8
New Market Properties	571,320		4.00	%	7.6
Preferred Office Properties	634,876		4.13	%	12.7
Total fixed rate mortgage debt	2,649,101		3.86	%	9.5
Variable rate mortgage debt:
Residential Properties	117,917		3.76	%	3.3
New Market Properties	47,150		2.81	%	3.1
Preferred Office Properties	—		—	%	—
Total variable rate mortgage debt	165,067		3.49	%	3.3
Total mortgage debt:
Residential Properties	1,560,823		3.68	%	8.4
New Market Properties	618,470		3.91	%	7.2
Preferred Office Properties	634,876		4.13	%	12.7
Total principal amount	2,814,169		3.83	%	9.1
Deferred loan costs	(44,338)
Mark to market loan adjustment	(4,038)
Mortgage notes payable, net	$	2,765,793

debt covenant [Table Text Block]

As of September 30, 2020, the Company was in compliance with all covenants related to the Revolving Line of Credit, as shown in the following table:

Covenant (1)	Requirement		Result
Net worth	Minimum $1.7 billion		$1.9 billion	(3)
Debt yield	Minimum 8.25%		9.89%
Payout ratio	Maximum 95%	(2)	88.1%
Total leverage ratio	Maximum 65%		63.7%
Debt service coverage ratio	Minimum 1.50x		1.74x

(1) All covenants are as defined in the credit agreement for the Revolving Line of Credit.

(2) Calculated on a trailing four-quarter basis, except for Common Stock dividends, which are annualized off of the trailing two quarters' dividend. For the year ended September 30, 2020, the maximum dividends and distributions allowed under this covenant was approximately $179.8 million.

(3) Adjusted to exclude the effect of costs incurred with internalization.

mortgage interest [Table Text Block]

c

Schedule of Maturities of Long-term Debt [Table Text Block]

The Company’s estimated future principal payments due on its debt instruments as of September 30, 2020 were:

Period	Future principal payments (in thousands)
2020 (1)	$	44,152
2021	166,730
2022	105,432
2023	117,605
2024	367,421
Thereafter	2,045,829
Total	$	2,847,169
(1) Includes the principal amount due on our revolving line of credit of $33.0 million as of September 30, 2020.

Schedule of Debt [Table Text Block]

Interest expense, including amortization of deferred loan costs was:

(In thousands)	Three-month periods ended September 30,				Nine-month periods ended September 30,
	2020		2019		2020		2019
Residential Properties	$	15,739	$	16,108	$	46,537	$	46,729
New Market Properties	6,539		6,422		19,876		18,123
Preferred Office Properties	6,699		5,909		20,256		16,617
Interest paid to real estate loan participants	—		—		—		110
Total	28,977		28,439		86,669		81,579
Credit Facility and Acquisition Facility	902		360		3,939		1,587
Interest Expense	$	29,879	$	28,799	$	90,608	$	83,166