DEBT (Tables)

9 Months Ended

Sep. 30, 2022


	Weighted-Average Effective
	Interest Rate as of					Balance as of
	September 30,		December 31,			September 30,		December 31,
($ in thousands)	2022		2021		Maturity Date	2022		2021
Line of credit (1)	4.39	%	1.40	%	March 2025	$	—	$	—
Term loan (2)	2.87		2.23		March 2027		550,000		415,000
Term loan (3)	3.48		1.66		May 2026		600,000		600,000
Fixed-rate mortgage notes (4)	3.58		2.93		August 2024 - January 2029		996,720		628,890
Floating-rate mortgage notes (5)	3.57		1.74		January 2025 - July 2025		617,250		617,250
Total principal amount / weighted-average (6)	3.42	%	2.14	%		$	2,763,970	$	2,261,140
Less unamortized debt issuance costs							(28,749)		(16,106)
Add unamortized mark-to-market adjustment on assumed debt, net							480		639
Total debt, net						$	2,735,701	$	2,245,673
Gross book value of properties encumbered by debt						$	2,385,202	$	1,835,561

(1)

The effective interest rate is calculated based on either (i) the Term Secured Overnight Financing Rate (“Term SOFR”) plus a 10 basis point adjustment (“Adjusted Term SOFR”) plus a margin ranging from 1.25% to 2.00%; or (ii) an alternative base rate plus a margin of 0.25% to 1.0%, depending on our consolidated leverage ratio. Customary fall-back provisions apply if Term SOFR is unavailable. The line of credit is available for general corporate purposes including, but not limited to, our acquisition and operation of permitted investments. As of September 30, 2022, total commitments for the line of credit were $1.0 billion and the unused and available portions under the line of credit were both $1.0 billion.

(2)

The effective interest rate is calculated based on either (i) Adjusted Term SOFR plus a margin ranging from 1.20% to 1.90%; or (ii) an alternative base rate plus a margin of 0.20% to 0.90%, depending on our consolidated leverage ratio. The weighted-average effective interest rate is the all-in interest rate, including the effects of interest rate swap agreements which fix Term SOFR for the term loan. As of September 30, 2022, total commitments for the term loan were $550.0 million. This term loan is available for general corporate purposes including, but not limited to, our acquisition and operation of permitted investments.

(3)

The effective interest rate is calculated based on Term SOFR plus a 11.448 basis point adjustment 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%, depending on our consolidated leverage ratio. The weighted-average effective interest rate is the all-in interest rate, including the effects of interest rate swap agreements which fix Term SOFR for the term loan. As of September 30, 2022, total commitments for the term loan were $600.0 million. This term loan is available for general corporate purposes including, but not limited to, our acquisition and operation of permitted investments.

(4)

Interest rates range from 2.85% to 4.71%. The assets and credit of each of our consolidated properties pledged as collateral for our mortgage notes are not available to satisfy our other debt and obligations, unless we first satisfy the mortgage notes payable on the respective underlying properties.

(5)	The effective interest rate of the $209.3 million mortgage note is calculated based on LIBOR plus a margin of 1.50%. The effective interest rate of the $408.0 million mortgage note is calculated based on Adjusted Term SOFR plus a margin of 1.65%.

(6)	The weighted-average remaining term of our consolidated debt was approximately 3.9 years as of September 30, 2022, excluding any extension options on the line of credit and the floating-rate mortgage notes.

Schedule of Maturities of Long-term Debt

As of September 30, 2022, the principal payments due on our consolidated debt during each of the next five years and thereafter were as follows:


(in thousands)	Line of Credit (1)		Term Loans		Mortgage Notes (2)		Total
Remainder of 2022	$	—	$	—	$	—	$	—
2023		—		—		—		—
2024		—		—		38,000		38,000
2025		—		—		985,080		985,080
2026		—		600,000		—		600,000
Thereafter		—		550,000		590,890		1,140,890
Total principal payments	$	—	$	1,150,000	$	1,613,970	$	2,763,970

(1)	The line of credit matures in March 2025 and the term may be extended pursuant to two one-year extension options, subject to certain conditions.

(2)

The $209.3 million mortgage note matures in July 2025 and the term may be extended pursuant to a one-year extension option, subject to certain conditions. The $408.0 million mortgage note matures in January 2025 and the $367.8 million mortgage note matures in July 2025 and the terms of both may be extended pursuant to two one-year extension options, subject to certain conditions.

Schedule of Derivative Instruments

The following table summarizes the location and fair value of the derivative instruments on our condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021.


	Number of	Notional		Balance Sheet	Fair
($ in thousands)	Contracts	Amount		Location	Value
As of September 30, 2022
Interest rate swaps	17	$	1,442,830	Other assets	$	76,614
Interest rate caps	2		578,000	Other assets		28,710
Total derivative instruments	19	$	2,020,830		$	105,324
As of December 31, 2021
Interest rate swaps	10	$	575,000	Other assets	$	2,653
Interest rate caps	2		578,000	Other assets		3,164
Total derivative instruments	12	$	1,153,000		$	5,817

Derivative Instruments, Gain (Loss)

The following table presents the effect of our derivative instruments on our condensed consolidated financial statements.


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Derivative Instruments Designated as Cash Flow Hedges
Gain (loss) recognized in AOCI	$	49,192	$	1,752	$	73,132	$	3,146
Amount reclassified from AOCI into interest expense		(863)		1,097		829		2,901
Total interest expense presented in the condensed consolidated statements of operations in which the effects of the cash flow hedges are recorded		45,905		9,001		101,450		17,296
Derivative Instruments Not Designated as Cash Flow Hedges
Gain (loss) recognized in other income and expenses	$	11,310	$	(2)	$	26,149	$	(2)