Mortgage Notes Payable (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The Company’s mortgage notes payable, net as of December 31, 2019 and 2018 consisted of the following:

		Outstanding Loan Amount as of						Effective Interest Rate as of
		December 31,						December 31,
Portfolio	Encumbered Properties	2019			2018			2019			Interest Rate	Maturity	Anticipated Repayment
		(In thousands)			(In thousands)
Class A-1 Net Lease Mortgage Notes	95	$	120,294		$	—		3.83	%		Fixed	May 2049	May 2026
Class A-2 Net Lease Mortgage Notes	106	121,000			—			4.52	%		Fixed	May 2049	May 2029
Total Net Lease Mortgage Notes	201	241,294			—
SAAB Sensis I	1	$	6,660		$	7,077		5.93	%		Fixed	Apr. 2025	Apr. 2025
Truist Bank II	17	10,860			13,412			5.50	%		Fixed	Jul. 2031	Jul. 2021
Truist Bank III	78	62,228			68,080			5.50	%		Fixed	Jul. 2031	Jul. 2021
Truist Bank IV	12	6,626			18,113			5.50	%		Fixed	Jul. 2031	Jul. 2021
Sanofi US I	1	125,000			125,000			5.16	%		Fixed	Jul. 2026	Jan. 2021
Stop & Shop [1]	4	45,000			36,812			3.49	%		Fixed	Jan. 2030	Jan. 2030
Mortgage Loan I [2]	244	497,150			572,199			4.36	%		Fixed	Sep. 2020	Sep. 2020
Shops at Shelby Crossing	1	22,139			22,581			4.97	%		Fixed	Mar. 2024	Mar. 2024
Patton Creek	1	39,147			40,027			5.76	%		Fixed	Dec. 2020	Dec. 2020
Bob Evans I	23	23,950			23,950			4.71	%		Fixed	Sep. 2037	Sep. 2027
Mortgage Loan II	12	210,000			210,000			4.25	%		Fixed	Jan. 2028	Jan. 2028
Mortgage Loan III	22	33,400			33,400			4.12	%		Fixed	Jan. 2028	Jan. 2028
Mortgage Loan IV [3]	—	—			29,887			—	%		—	N/A	N/A
Gross mortgage notes payable	617	1,323,454			1,200,538			4.48	%	(4)
Deferred financing costs, net of accumulated amortization [5]		(15,564		)	(11,363		)
Mortgage premiums, net [6]		3,053			6,938
Mortgage notes payable, net		$	1,310,943		$	1,196,113

^__________ 

^[1]  The prior Stop & Shop loan was refinanced on December 19, 2019 with a new loan (see Stop&Shop Loan discussion in this Note). In connection with the prior loan, the Company paid prepayment penalties of approximately $2.0 million, which are included in the acquisition, transaction and other costs on the consolidated statement of operations and comprehensive (loss) income.

^[2]  In connection with repayment a portion of this mortgage note, the Company paid prepayment penalties of $1.6 million in the second quarter of 2019, which are included in the acquisition, transaction and other costs on the consolidated statement of operations and comprehensive (loss) income.

^[3]  This loan was repaid in connection with the issuance of the Net Lease Mortgage Notes (see definition below) in the second quarter of 2019 and all 39 properties, which were previously encumbered under Mortgage Loan IV were added to the collateral pool for the Net Lease Mortgage Notes. As a result of repaying the loan, remaining unamortized deferred financing costs of $0.8 million were written off, which is included in interest expense in the consolidated statement of operations. Also, the “pay-fixed” interest rate swap agreements related to Mortgage Loan IV were terminated upon repayment (see Note 8 — Derivatives and Hedging Activities), which is included in interest expense in the consolidated statement of operations.

^[4]  Calculated on a weighted-average basis for all mortgages outstanding as of December 31, 2019.

^[5]  Deferred financing costs represent commitment fees, legal fees and other costs associated with obtaining financing. These costs are amortized to interest expense over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close.

^[6] 

Mortgage premiums or discounts are amortized as an increase or reduction to interest expense over the remaining terms of the respective mortgages.

Schedule of Maturities of Long-term Debt

The following table summarizes the scheduled aggregate principal payments on mortgage notes payable based on stated maturity dates for the five years subsequent to December 31, 2019 and thereafter:

(In thousands)	Future Principal Payments
2020	$	538,411
2021	206,882
2022	2,311
2023	2,643
2024	22,287
Thereafter	550,920
	$	1,323,454