Debt Obligations

3 Months Ended

Mar. 31, 2020

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


	March 31, 2020		December 31, 2019
Mortgages payable	$	133,282	$	134,038
Junior subordinated notes	37,400		37,400

Deferred financing costs	(1,090)		(1,160)
Total debt obligations, net of deferred costs	$	169,592	$	170,278

Mortgages Payable

The weighted average interest rate on the Company's mortgage debt at March 31, 2020 was 4.15%. For the three months ended March 31, 2020 and 2019 interest expense, which includes amortization of deferred fees, was $1,475,000 and $1,500,000, respectively.

Credit Facility

The Company entered into a credit facility dated April 18, 2019, as amended from time-to-time, with an affiliate of Valley National Bank. The facility allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $10,000,000 to facilitate the acquisition of multi-family properties and for working capital (including dividend payments) and operating expenses. The facility is secured by the cash available in certain cash accounts maintained by the Company at Valley National Bank, matures April 2021 and bears an adjustable interest rate of 50 basis points over the prime rate, with a floor of 5%. The interest rate in effect as of March 31, 2020 is 5%. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and maximum amount then available under the facility. On May 21, 2020, the Company borrowed $5,000,000 for working capital and operating expense purposes.

At March 31, 2020, there was no outstanding balance on the facility. At June 1, 2020, the outstanding balance on the credit facility was $5,000,000.

Junior Subordinated Notes

At March 31, 2020 and December 31, 2019, the Company's junior subordinated notes had an outstanding principal balance of $37,400,000, before deferred financing costs of $332,000 and $337,000, respectively. At March 31, 2020, the interest rate on the outstanding balance is three month LIBOR + 2.00% or 3.77%. The interest rate in effect for the next payment period (April 30 - July 30, 2020) is 2.76%

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 March 31, 2020 and 2019, which includes amortization of deferred costs, was $370,000 and $449,000, respectively.