Debt, net

Debt, net consists of Non-recourse mortgages, net, including debt attributable to Assets held for sale and Bonds payable, net, which are collateralized by the assignment of real estate properties. As of March 31, 2019, our debt bore interest at fixed annual rates ranging from 1.7% to 5.8% and variable contractual annual rates ranging from 1.6% to 8.2%, with maturity dates ranging from 2019 to 2039.

Financing Activity During 2019

On March 4, 2019, we obtained a construction loan of $51.7 million for a student housing development project located in Austin, Texas. The loan bears a variable interest rate on outstanding drawn balances (4.6% on the date of the loan), and is scheduled to mature in March 2023. We have the option to extend this loan one year from the original maturity date to March 2024. As of March 31, 2019, less than $0.1 million had been drawn on the construction loan.

In connection with the construction loan acquired in 2018 for the student housing development project located in Barcelona, Spain, we made additional draws during the three months ended March 31, 2019 at an annual fixed interest rate of 2.5% on (i) the development tranche of the loan totaling $2.1 million, which has a maturity date of April 2032; and (ii) the furniture, fixtures, and equipment tranche of the loan totaling $0.2 million, which has a maturity date of April 2026. Finally, we drew down a total of $0.2 million on the additional loan for this development project, which has a maturity date of May 2022 and also bears an annual fixed interest rate of 2.5%. All foregoing loan amounts are quoted based on the exchange rates of the euro at the date of each drawdown.

During the three months ended March 31, 2019, we made additional draws totaling $1.0 million in relation to a student housing operating property located in Portsmouth, United Kingdom. The loan bears a variable interest rate on outstanding drawn balances (6.3% as of March 31, 2019) and is scheduled to mature in November 2019. We made additional draws totaling $0.7 million on a construction loan related to a student housing operating property located in Cardiff, United Kingdom. The loan bears an annual interest rate of 7.5% plus LIBOR for outstanding drawn balances, with a maturity date of October 2019. All foregoing loan amounts are quoted based on the exchange rate of the British pound sterling at the date of each drawdown.

Scheduled Debt Principal Payments

Scheduled debt principal payments during the remainder of 2019, each of the next four calendar years following December 31, 2019, and thereafter are as follows (in thousands):



Years Ending December 31,	Total
2019 (remainder)	$	83,801
2020	88,996
2021	162,238
2022	118,598
2023	154,957
Thereafter through 2039	598,460
Total principal payments	1,207,050
Unamortized deferred financing costs	(6,534		)
Unamortized premium, net	1,477
Total	$	1,201,993

Certain amounts in the table above are based on the applicable foreign currency exchange rate at March 31, 2019.

The carrying value of our Non-recourse mortgages, net, and Bonds payable, net decreased by $2.5 million in the aggregate from December 31, 2018 to March 31, 2019, reflecting the impact of the strengthening of the U.S. dollar relative to certain foreign currencies (primarily the euro) during the same period.

Debt Covenants

As of March 31, 2019, we remained in breach of the debt service coverage ratio covenant on our Agrokor mortgage loan. The covenant breach will be cured once the net operating income for the related property exceeds the amount set forth in the related loan agreement. During the period ended March 31, 2019, no additional payments have been made on the loan principal as a result of the breach. As Agrokor is currently in financial distress, there is uncertainty regarding future rent collections (Note 13) and whether the default can be cured.

As of March 31, 2019, we remained in breach of a non-financial covenant on one of our non-recourse mortgage loans. As a result of the breach, the lender has the right to declare a “cash trap” in which any surplus cash in our rent account would be transferred to a reserve account with the lender. As of March 31, 2019, $2.5 million has been transferred to the reserve account with the lender, which is included as restricted cash within Accounts receivable and other assets, net on our condensed consolidated balance sheets. The amounts will be released once the non-financial covenant breach is cured.