LONG-TERM DEBT (Tables)

9 Months Ended

Sep. 30, 2018

LONG-TERM DEBT

Schedule of outstanding indebtedness, at face value

As of September 30, 2018, the Company’s outstanding indebtedness, at face value, was as follows:

	Face		Maturity	Interest
	Value Debt		Date	Rate
Credit Facility	$	50,745,579	September 2021		30‑day LIBOR plus 1.50% -2.20%
Mortgage Note Payable (originated with Wells Fargo) (1)		30,000,000	October 2034		4.330%
Mortgage Note Payable (originated with Wells Fargo) (2)		24,723,948	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	$	180,469,527

(1)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.

(2)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, 2018				December 31, 2017
			Due Within				Due Within
	Total		One Year		Total		One Year
Credit Facility	$	50,745,579	$	—	$	70,000,000	$	—
Mortgage Note Payable (originated with Wells Fargo)		30,000,000		—		30,000,000		—
Mortgage Note Payable (originated with Wells Fargo)		24,723,948		—		25,000,000		—
4.50% Convertible Senior Notes due 2020, net of discount		73,022,714		—		72,075,295		—
Loan Costs, net of accumulated amortization		(1,132,748)		—		(1,258,931)		—
Total Long-Term Debt	$	177,359,493	$	—	$	195,816,364	$	—

Schedule of payments applicable to reduction of principal amounts

	September 30, 2018				December 31, 2017
			Due Within				Due Within
	Total		One Year		Total		One Year
Credit Facility	$	50,745,579	$	—	$	70,000,000	$	—
Mortgage Note Payable (originated with Wells Fargo)		30,000,000		—		30,000,000		—
Mortgage Note Payable (originated with Wells Fargo)		24,723,948		—		25,000,000		—
4.50% Convertible Senior Notes due 2020, net of discount		73,022,714		—		72,075,295		—
Loan Costs, net of accumulated amortization		(1,132,748)		—		(1,258,931)		—
Total Long-Term Debt	$	177,359,493	$	—	$	195,816,364	$	—

Payments applicable to reduction of principal amounts as of September 30, 2018 will be required as follows:

Year Ending December 31,	Amount
2019	$	—
2020		75,000,000
2021		75,469,527
2022		—
2023		—
Thereafter		30,000,000
Total Long-Term Debt - Face Value	$	180,469,527

Schedule of carrying value of long-term debt

The carrying value of long-term debt as of September 30, 2018 consisted of the following:

	Total
Current Face Amount	$	180,469,527
Unamortized Discount on Convertible Debt		(1,977,286)
Loan Costs, net of accumulated amortization		(1,132,748)
Total Long-Term Debt	$	177,359,493

Schedule of interest expense on debt

The following table reflects a summary of interest expense incurred and paid during the three and nine months ended September 30, 2018 and 2017:

	Three Months Ended				Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
	($000's)		($000's)		($000's)		($000's)
Interest Expense	$	1,921	$	1,771	$	6,107	$	5,164
Amortization of Loan Costs		103		125		390		350
Amortization of Discount on Convertible Notes		321		301		947		889
Capitalized Interest		—		(124)		—		(124)
Total Interest Expense	$	2,345	$	2,073	$	7,444	$	6,279
Total Interest Paid	$	2,798	$	2,588	$	6,989	$	6,026