Debt Obligations

9 Months Ended

Jun. 30, 2018

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


	June 30, 2018		September 30, 2017
Mortgages payable	$	790,205	$	704,171
Junior subordinated notes	37,400		37,400
Deferred mortgage costs	(7,040)		(6,727)
Total debt obligations, net of deferred costs	$	820,565	$	734,844

Mortgages Payable

During the nine months ended June 30, 2018, 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

Ocoee, FL

2/7/18

53,060

3.90

84 months

January 2028

Lawrenceville, GA

2/15/18

54,447

3.97

120 months

March 2028

Daytona Beach, FL

4/30/18

13,608

3.94

24 months

May 2025

Grand Prairie, TX

5/17/18

18,995

4.37

60 months

July 2028

164,310

_____________________________

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

The Company has construction loans financing two separate construction projects. Information regarding these loans at June 30, 2018 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

LIBOR + 1.70%

10/13/2019

1 year

Nashville,TN

6/2/2017

47,426

8,679

LIBOR + 2.85%

6/2/2022

N/A

77,691

38,944

_____________________

(a) This property has achieved 90% occupancy during the quarter ended June 30, 2018 and as of July 1, 2018 is considered stabilized.

Junior Subordinated Notes

At June 30, 2018, and September 30, 2017, the Company's junior subordinated notes had an outstanding principal balance of $37,400,000, before deferred financing costs of $367,000 and $382,000, respectively. At June 30, 2018, the interest rate on the outstanding balance is three month LIBOR + 2.00% or 4.36%.

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 June 30, 2018 and 2017, which includes amortization of deferred costs, was $386,000 and $300,000, respectively, and for the nine months ended June 30, 2018 and 2017, was $1,058,000 and $862,000, respectively.