DEBT (Tables)

12 Months Ended

Dec. 31, 2019

A summary of the Company’s debt is as follows:



	Weighted-Average Effective Interest Rate as of					Balance as of
($ in thousands)	December 31, 2019		December 31, 2018		Maturity Date	December 31, 2019			December 31, 2018
Line of credit (1)	2.91	%	3.38	%	January 2020	$	378,000		$	324,000
Term loan (2)	2.50		2.65		January 2021	350,000			350,000
Term loan (3)	3.16		4.05		May 2022	150,000			150,000
Total principal amount / weighted-average	2.79	%	3.19	%		878,000			824,000
Less unamortized debt issuance costs						$	(1,431	)	$	(3,116	)
Total debt, net (excluding debt related to assets held for sale)						$	876,569		$	820,884

Fixed-rate mortgage notes related to assets held for sale, net of unamortized debt issuance costs (4)	3.36	%	3.36	%	July 2020 - December 2025	716,470			717,940
Total debt, net / weighted-average (including debt related to assets held for sale) (5)	3.04	%	3.27	%		$	1,593,039		$	1,538,824
Gross book value of properties encumbered by debt						$	1,154,412		$	1,147,963

(1)

The effective interest rate is calculated based on either: (i) the London Interbank Offered Rate (“LIBOR”) multiplied by a statutory reserve rate plus a margin ranging from 1.40% to 2.30%; or (ii) an alternative base rate plus a margin ranging from 0.40% to 1.30%, each depending on the Company’s consolidated leverage ratio. The weighted-average effective interest rate is the all-in interest rate, including the effects of interest rate swap agreements relating to $150.0 million in borrowings under this line of credit.

(2)

The effective interest rate is calculated based on either: (i) LIBOR multiplied by a statutory reserve rate, plus a margin ranging from 1.35% to 2.20%; or (ii) an alternative base rate plus a margin ranging from 0.35% to 1.20%, each depending on the Company’s consolidated leverage ratio. The weighted-average effective interest rate is the all-in interest rate, including the effects of interest rate swap agreements.


(3)	The effective interest rate is calculated based on either: (i) LIBOR multiplied by a statutory reserve rate, plus a margin ranging from 1.30% to 2.15%; or (ii) an alternative base rate plus a margin ranging from 0.30% to 1.15%, each depending on the Company’s consolidated leverage ratio. The weighted-average effective interest rate is the all-in interest rate.


(4)	Interest rates range from 2.94% to 3.65%, which includes the effects of an interest rate swap agreement relating to a variable-rate mortgage note with an outstanding amount of $93.7 million and $95.6 million as of December 31, 2019 and December 31, 2018, respectively.


(5)	The weighted-average remaining term of the Company’s consolidated debt was approximately 2.5 years as of December 31, 2019, excluding any extension options on the line of credit.

Summary of Location and Fair Value of Cash Flow Hedges

The following table summarizes the location and fair value of the cash flow hedges on the Company’s consolidated balance sheets:



($ in thousands)	Number of Contracts	Notional Amount		Balance Sheet Location	Fair Value
As of December 31, 2019
Interest rate swaps	11	$	593,749	Other assets	$	2,514
As of December 31, 2018
Interest rate swaps	11	$	595,626	Other assets	$	16,438

Effect of Derivative Instruments

The following table presents the effect of the Company’s cash flow hedges on the Company’s consolidated financial statements:



	For the Year Ended December 31,
(in thousands)	2019			2018			2017
Derivative Instruments Designated as Cash Flow Hedges
(Loss) gain recognized in AOCI	$	(6,645	)	$	5,165		$	3,452
Gain reclassified from AOCI into interest expense	(7,279		)	(5,599		)	(671		)
Total interest expense presented in the consolidated statements of operations in which the effects of the cash flow hedges are recorded (1)	52,133			50,401			41,750


(1)	Interest expense is included in discontinued operations on the consolidated statements of operations for the years ended December 31, 2019, 2018 and 2017.