Mortgage Loans Payable And Secured Revolving Credit Facilities

6 Months Ended

Jun. 30, 2011

Mortgage Loans Payable And Secured Revolving Credit Facilities

Mortgage Loans Payable And Secured Revolving Credit Facilities

Note 4. Mortgage Loans Payable and Secured Revolving Credit Facilities 

Secured debt is comprised of the following at June 30, 2011 and December 31, 2010:

	June 30, 2011			December 31, 2010
		Interest rates			Interest rates
	Balance	Weighted		Balance	Weighted
Description	outstanding	average	Range	outstanding	average	Range
Fixed-rate mortgages (a)	$        599,350,000	5.8%	5.0% - 7.6%	$       575,635,000	5.8%	5.0% - 7.6%
Variable-rate mortgages	84,768,000	4.1%	3.5% and 5.9%	83,568,000	4.1%	2.5% and 5.9%
Total property-specific mortgages	684,118,000	5.6%		659,203,000	5.6%
Stabilized property credit facility	64,035,000	5.5%		29,535,000	5.5%
Development property credit facility	103,062,000	2.5%		103,062,000	2.5%
	$        851,215,000	5.2%		$       791,800,000	5.2%
Fixed-rate mortgages related to:
Real estate held for sale - discontinued
operations (a)	$          42,951,000	5.7%	5.0% - 6.5%	$         48,313,000	5.6%	5.0% - 6.5%
(a) Restated to reflect the reclassifications of properties treated as discontinued operations.

 Included in variable-rate mortgages is a $70.7 million construction facility, as amended, with Manufacturers and Traders Trust Company (as agent) and several other banks, pursuant to which the Company has pledged its joint venture development property in Pottsgrove, Pennsylvania as collateral for borrowings thereunder. The facility is guaranteed by the Company and will expire on September 26, 2011, subject to a one-year extension option. Borrowings under the facility bear interest at the Company's option at either LIBOR plus a spread of 325 bps, or the agent bank's prime rate. Borrowings outstanding under the facility aggregated $63.8 million at June 30, 2011, and such borrowings bore interest at an average rate of 3.5% per annum. As of June 30, 2011, the Company was in compliance with the financial covenants as required by the terms of the construction facility.

Stabilized Property Revolving Credit Facility

The Company has a $185 million stabilized property revolving credit facility with Bank of America, N.A. as administrative agent, together with three other lead lenders and other participating banks (the "stabilized property credit facility"). The facility is expandable to $400 million, subject principally to acceptable collateral and the availability of additional lender commitments, and will expire on January 31, 2012, subject to a one-year extension option. The principal terms of the facility include (i) an availability based primarily on appraisals, with a 67.5% advance rate, (ii) an interest rate based on LIBOR plus 350 bps, with a 200 bps LIBOR floor, (iii) a leverage ratio limited to 67.5%, and (iv) an unused portion fee of 50 bps.

Borrowings outstanding under the facility aggregated $64.0 million at June 30, 2011. Such borrowings bore interest at an average rate of 5.5% per annum, and the Company had pledged 29 of its shopping center properties as collateral for such borrowings, including five properties which are being treated as "real estate held for sale/conveyance".

The stabilized property credit facility has been, and will be, used to fund acquisitions, certain development and redevelopment activities, capital expenditures, mortgage repayments, dividend distributions, working capital and other general corporate purposes. The facility is subject to customary financial covenants, including limits on leverage and distributions (limited to 95% of funds from operations, as defined), and other financial statement ratios. Based on covenant measurements and collateral in place as of June 30, 2011, the Company was permitted to draw up to approximately $140.8 million ($138.0 million if the collateral properties being treated as "held for sale/conveyance" were removed), of which approximately $76.8 million remained available as of that date. As of June 30, 2011, the Company was in compliance with the financial covenants as required by the terms of the stabilized property credit facility.

Development Property Revolving Credit Facility

The Company has a $150 million development property credit facility with KeyBank, National Association (as agent) and several other banks, pursuant to which the Company has pledged certain of its development projects and redevelopment properties as collateral for borrowings thereunder. The facility, as amended, is expandable to $250 million, subject principally to acceptable collateral and the availability of additional lender commitments. In June 2011, the Company exercised its one-year extension option and the loan is now due on June 13, 2012. Borrowings under the facility bear interest at the Company's option at either LIBOR or the agent bank's prime rate, plus a spread of 225 bps or 75 bps, respectively. Advances under the facility are calculated at the least of 70% of aggregate project costs, 70% of "as stabilized" appraised values, or costs incurred in excess of a 30% equity requirement on the part of the Company. The facility also requires an unused portion fee of 15 bps. This facility has been, and will be, used to fund in part the Company's and certain consolidated joint ventures' development activities. In order to draw funds under this construction facility, the Company must meet certain pre-leasing and other conditions. Borrowings outstanding under the facility aggregated $103.1 million at June 30, 2011, and such borrowings bore interest at a rate of 2.5% per annum. As of June 30, 2011, the Company was in compliance with the as financial covenants required by the terms of the development property credit facility.