LONG-TERM DEBT (Tables)

9 Months Ended

Sep. 30, 2017

LONG-TERM DEBT

Schedule of outstanding indebtedness, at face value

As of September 30, 2017, the Company’s outstanding indebtedness, at face value, was as follows:

	Face		Maturity	Interest
	Value Debt		Date	Rate
Credit Facility	$	41,000,000	September 2021		30 ‑day LIBOR plus 1.50%  -2.20%
Mortgage Note Payable (originated with UBS) (1)		7,300,000	February 2018		3.655%
Mortgage Note Payable (originated with Wells Fargo) (2)		30,000,000	October 2034		4.330%
Mortgage Note Payable (originated with Wells Fargo) (3)		25,000,000	April 2021		30 ‑day LIBOR plus 1.90%
4.50% Convertible Senior Notes due 2020, net of discount		75,000,000	March 2020		4.500%
Total Long-Term Face Value Debt	$	178,300,000

(1)Secured by the Company’s interest in the two-building office complex leased to Hilton Resorts Corporation.

(2)Secured by the Company’s interest in six income properties. The mortgage loan carries a fixed rate of 4.33% per annum during the first ten years of the term, and requires payments of interest only during the first ten years of the loan. After the tenth anniversary of the effective date of the loan, the cash flows, as defined in the related loan agreement, generated by the underlying six income properties must be used to pay down the principal balance of the loan until paid off or until the loan matures. The loan is fully pre-payable after the tenth anniversary of the effective date of the loan.

(3)Secured by the Company’s income property leased to Wells Fargo located in Raleigh, North Carolina. The mortgage loan has a 5-year term with two years interest only, and interest and a 25-year amortization for the balance of the term.  The mortgage loan bears a variable rate of interest based on the 30-day LIBOR plus a rate of 190 basis points. The interest rate for this mortgage loan has been fixed through the use of an interest rate swap that fixed the rate at 3.17%.  The mortgage loan can be prepaid at any time subject to the termination of the interest rate swap.

Schedule of components of long-term debt

	September 30, 2017				December 31, 2016
			Due Within				Due Within
	Total		One Year		Total		One Year
Credit Facility	$	41,000,000	$	—	$	34,300,000	$	—
Mortgage Note Payable (originated with UBS)		7,300,000		7,300,000		7,300,000		—
Mortgage Note Payable (originated with Wells Fargo)		30,000,000		—		30,000,000		—
Mortgage Note Payable (originated with Wells Fargo)		25,000,000		—		25,000,000		—
4.50% Convertible Senior Notes due 2020, net of discount		71,769,432		—		70,880,581		—
Loan Costs, net of accumulated amortization		(1,417,902)		—		(1,235,380)		—
Total Long-Term Debt	$	173,651,530	$	7,300,000	$	166,245,201	$	—

Schedule of payments applicable to reduction of principal amounts

Payments applicable to reduction of principal amounts as of September 30, 2017 will be required as follows:

Year Ending December 31,	Amount
2018		7,300,000
2019		—
2020		75,000,000
2021		66,000,000
2022		—
Thereafter		30,000,000
Total Long-Term Debt - Face Value	$	178,300,000

Schedule of carrying value of long-term debt

The carrying value of long-term debt as of September 30, 2017 consisted of the following:

	Total
Current Face Amount	$	178,300,000
Unamortized Discount on Convertible Debt		(3,230,568)
Loan Costs, net of accumulated amortization		(1,417,902)
Total Long-Term Debt	$	173,651,530

Schedule of interest expense on debt

	Three Months		Three Months			Nine Months		Nine Months
	Ended		Ended			Ended		Ended
	9/30/2017		9/30/2016			9/30/2017		9/30/2016
	($000's)		($000's)			($000's)		($000's)
Interest Expense	$	1,771	$	1,684		$	5,164	$	5,151
Amortization of Loan Costs		125		488	(1)		350		716	(1)
Amortization of Discount on Convertible Notes		301		282			889		834
Capitalized Interest		(124)		—			(124)		—
Total Interest Expense	$	2,073	$	2,454		$	6,279	$	6,701
Total Interest Paid	$	2,588	$	2,589		$	6,026	$	6,048

(1)Includes approximately $367,000 of unamortized loan costs which were written off and included in interest expense related to the $23.1 million mortgage loan assumed by the buyer upon closing the Portfolio Sale on September 16, 2016.