Mortgage Notes Payable

Mortgage notes payable as of September 30, 2016 and December 31, 2015 consisted of the following:



		Encumbered Properties	Outstanding Loan Amount ⁽¹⁾						Effective Interest Rate		Interest Rate
Country	Portfolio	Encumbered Properties	September 30, 2016			December 31, 2015			Effective Interest Rate		Interest Rate	Maturity
			(In thousands)			(In thousands)
Finland:	Finnair	4	$	31,840		$	30,976		2.2%	⁽²⁾	Fixed	Sep. 2020
	Tokmanni	1	32,485			31,603			2.4%	⁽²⁾	Fixed	Oct. 2020

Germany:	Rheinmetall	1	11,884			11,561			2.6%	⁽²⁾	Fixed	Jan. 2019
	OBI DIY	1	5,045			4,908			2.4%		Fixed	Jan. 2019
	RWE AG	3	70,070			68,169			1.6%	⁽²⁾	Fixed	Oct. 2019
	Rexam	1	5,897			5,737			1.8%	⁽²⁾	Fixed	Oct. 2019
	Metro Tonic	1	29,710			28,904			1.7%	⁽²⁾	Fixed	Dec. 2019
	Total EUR denominated	12	186,931			181,858

United Kingdom:	McDonald's	1	986			1,125			4.1%	⁽²⁾	Fixed	Oct. 2017
	Wickes Building Supplies I	1	2,525			2,882			3.7%	⁽²⁾	Fixed	May 2018
	Everything Everywhere	1	5,188			5,922			4.0%	⁽²⁾	Fixed	Jun. 2018
	Thames Water	1	7,782			8,882			4.1%	⁽²⁾	Fixed	Jul. 2018
	Wickes Building Supplies II	1	2,140			2,443			4.2%	⁽²⁾	Fixed	Jul. 2018
	Northern Rock	2	6,809			7,772			4.5%	⁽²⁾	Fixed	Sep. 2018
	Wickes Building Supplies III	1	2,464			2,813			4.4%	⁽²⁾	Fixed	Nov. 2018
	Provident Financial	1	16,537			18,875			4.1%	⁽²⁾	Fixed	Feb. 2019
	Crown Crest	1	24,968			28,498			4.3%	⁽²⁾	Fixed	Feb. 2019
	Aviva	1	20,363			23,242			3.8%	⁽²⁾	Fixed	Mar. 2019
	Bradford & Bingley	1	9,806			11,192			3.5%	⁽²⁾	Fixed	May 2020
	Intier Automotive Interiors	1	6,128			6,995			3.5%	⁽²⁾	Fixed	May 2020
	Capgemini	1	7,134			8,142			3.2%	⁽²⁾	Fixed	Jun. 2020
	Fujitisu	3	32,129			36,684			3.2%	⁽²⁾	Fixed	Jun. 2020
	Amcor Packaging	7	4,055			4,628			3.6%	⁽²⁾	Fixed	Jul. 2020
	Fife Council	1	2,378			2,715			3.6%	⁽²⁾	Fixed	Jul. 2020
	Malthrust	3	4,150			4,737			3.6%	⁽²⁾	Fixed	Jul. 2020
	Talk Talk	1	4,961			5,663			3.6%	⁽²⁾	Fixed	Jul. 2020
	HBOS	3	6,991			7,979			3.6%	⁽²⁾	Fixed	Jul. 2020
	DFS Trading	5	13,151			15,010			3.4%	⁽²⁾	Fixed	Aug. 2020
	DFS Trading	2	3,079			3,514			3.4%	⁽²⁾	Fixed	Aug. 2020
	HP Enterprise Services	1	12,045			13,748			3.4%	⁽²⁾	Fixed	Aug. 2020
	Total GBP denominated	40	195,769			223,461

United States:	Quest Diagnostics	1	52,800			52,800			2.5%	⁽³⁾	Variable	Sep. 2018
	Western Digital	1	17,759			17,982			5.3%		Fixed	Jul. 2021
	AT&T Services	1	33,550			33,550			2.5%	⁽⁴⁾	Variable	Dec. 2020
Puerto Rico:	Encanto Restaurants	18	21,718			22,057			6.3%		Fixed	Jun. 2017
	Total USD denominated	21	125,827			126,389
	Gross mortgage notes payable	73	508,527			531,708			3.0%
	Deferred financing costs, net of accumulated amortization	—	(5,719		)	(7,446		)	—%
	Mortgage notes payable, net of deferred financing costs	73	$	502,808		$	524,262		3.0%

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⁽¹⁾	Amounts borrowed in local currency and translated at the spot rate as of the respective measurement date.


⁽²⁾	Fixed as a result of an interest rate swap agreement.


⁽³⁾	The interest rate is 2.0% plus 1-month LIBOR.


⁽⁴⁾	The interest rate is 2.0% plus 1-month Adjusted LIBOR as defined in the mortgage agreement.

The following table presents future scheduled aggregate principal payments on the gross mortgage notes payable over the next five calendar years and thereafter as of September 30, 2016:



(In thousands)	Future Principal Payments ⁽¹⁾
2016 (remainder)	$	197
2017	22,904
2018	80,045
2019	184,828
2020	204,253
2021	16,300
Thereafter	—
Total	$	508,527

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⁽¹⁾	Based on the exchange rates as of September 30, 2016.

The Company's mortgage notes payable agreements require compliance with certain property-level financial covenants including debt service coverage ratios. As of September 30, 2016, the Company was in compliance with financial covenants under its mortgage notes payable agreements.