Debt Obligations

3 Months Ended

Dec. 31, 2017

Debt obligations consist of the following (dollars in thousands):



	December 31, 2017			September 30, 2017
Mortgages payable	$	718,281		$	704,171
Junior subordinated notes	37,400			37,400
Deferred mortgage costs	(6,597		)	(6,727		)
Total debt obligations, net of deferred costs	$	749,084		$	734,844

Mortgages Payable

During the three months ended December 31, 2017, the Company obtained the following mortgage debt in connection with the related property acquisitions (dollars in thousands):

Location

Closing Date

Acquisition Mortgage Debt

Interest Rate

Interest only period

Maturity Date

Madison, AL

12/7/17

15,000

4.08

60 months

January 2028

Boerne, TX (a)

12/14/17

9,200

LIBOR+ 2.39%

36 months

January 2028

24,200

_____________________________

(a) The Company entered into an agreement related to this loan to cap LIBOR at 3.86%. See Note 13.

The Company has two construction loans that are being used to finance two separate construction projects. Information regarding these loans at December 31, 2017 is set forth below (dollars in thousand):

Location

Closing Date

Maximum Loan Amount

Amount outstanding

Interest Rate

Maturity Date

Extension Option

N Charleston, SC (a)

10/13/2015

30,265

29,863

LIBOR + 1.70%

10/13/2019

1 year

Nashville,TN

6/2/2017

47,426

—

LIBOR + 2.85%

6/2/2020

N/A

77,691

29,863

_____________________

(a) Currently in lease up.

Junior Subordinated Notes

At December 31, 2017 and September 30, 2017, the Company's junior subordinated notes had an outstanding principal balance of $37,400,000, before deferred financing costs of $377,000 and $382,000, respectively. At December 31, 2017, the interest rate on the outstanding balance is three month LIBOR + 2.00%, or 3.17%.

The junior subordinated notes require interest only payments through the maturity date of April 30, 2036, at which time repayment of the outstanding principal and unpaid interest become due. Interest expense for the three months ended December 31, 2017 and 2016, which includes amortization of deferred costs, was $330,000 and $274,000, respectively.