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)	3.26	%	4.10	%	November 2023	$	107,000		$	119,000
Term loan (2)	2.85		—		February 2024	307,500			—
Fixed-rate mortgage notes (3)	3.71		—		August 2024 - December 2027	49,250			—
Total principal amount / weighted-average (4)	3.04	%	4.10	%		$	463,750		$	119,000
Less unamortized debt issuance costs						$	(4,602	)	$	(1,167	)
Add mark-to-market adjustment on assumed debt						1,063			—
Total debt, net						$	460,211		$	117,833
Gross book value of properties encumbered by debt						$	117,049		$	—

(1)

The effective interest rate is calculated based on either: (i) the London Interbank Offered Rate (“LIBOR”) plus a margin ranging from 1.30% to 2.10%; or (ii) an alternative base rate plus a margin ranging from 0.30% to 1.10%, each depending on the Company’s consolidated leverage ratio. Customary fall-back provisions apply if LIBOR is unavailable. The line of credit is available for general corporate purposes including, but not limited to, the acquisition and operation of permitted investments by the Company. A pledge of equity interests in the Company’s subsidiaries that directly own unencumbered properties will be provided until such time as the Company elects to terminate such pledges, subject to satisfaction of certain financial covenants. As of December 31, 2019, total commitments for the line of credit were $315.0 million, the unused portion under the line of credit was $208.0 million, none of which was available.

(2)

The effective interest rate is calculated based on either (i) LIBOR plus a margin ranging from 1.25% to 2.05%; or (ii) an alternative base rate plus a margin ranging from 0.25% to 1.05%, 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. As of December 31, 2019, total commitments for the term loan were $415.0 million, the unused portion under the term loan was $107.5 million, of which $99.7 million was available. This term loan is available for general corporate purposes including, but not limited to, the acquisition and operation of permitted investments by the Company.


(3)	Interest rates range from 3.59% to 3.75%. The assets and credit of each of the Company’s properties pledged as collateral for the Company’s mortgage notes are not available to satisfy the Company’s other debt and obligations, unless the Company first satisfies the mortgage notes payable on the respective underlying properties.


(4)	The weighted-average remaining term of the Company’s debt was approximately 4.2 years as of December 31, 2019, excluding any extension options on the line of credit.

Schedule of Maturities of Long-term Debt

As of December 31, 2019, the principal payments due on the Company’s consolidated debt during each of the next five years and thereafter were as follows:



(in thousands)	Line of Credit (1)		Term Loan		Mortgage Notes		Total
2020	$	—	$	—	$	—	$	—
2021	—		—		—		—
2022	—		—		—		—
2023	107,000		—		—		107,000
2024	—		307,500		38,000		345,500
Thereafter	—		—		11,250		11,250
Total principal payments	$	107,000	$	307,500	$	49,250	$	463,750


(1)	The term of the line of credit may be extended pursuant to a one-year extension option, subject to certain conditions.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table summarizes the location and fair value of the cash flow hedges on the Company’s consolidated balance sheets as of December 31, 2019. The Company did not have any cash flow hedges as of December 31, 2018.

($ in thousands)

Number of
Contracts

Notional
Amount

Balance Sheet
Location

Fair
Value

As of December 31, 2019

Interest rate swaps

200,000

Other assets

2,190

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

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
Gain recognized in AOCI	$	2,642		$	—	$	—
Gain reclassified from AOCI into interest expense	(452		)	—		—
Total interest expense and other presented in the consolidated statements of operations in which the effects of the cash flow hedges are recorded	8,290			—		—