Mortgage Loans Payable And Secured Revolving Credit Facilities

9 Months Ended

Sep. 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 September 30, 2011 and December 31, 2010:

	September 30, 2011			December 31, 2010 (a)
		Interest rates			Interest rates
	Balance	Weighted		Balance	Weighted
Description	outstanding	average	Range	outstanding	average	Range
Fixed-rate mortgages (a)	$  527,197,000	5.8%	5.0% - 7.6%	$  487,957,000	5.9%	5.0% - 7.6%
Variable-rate mortgage (a)	63,768,000	3.5%		62,568,000	2.5%
Total property-specific mortgages	590,965,000	5.6%		550,525,000	5.6%
Stabilized property credit facility	74,035,000	5.5%		29,535,000	5.5%
Development property credit facility	92,282,000	2.5%		103,062,000	2.5%
	$  757,282,000	5.2%		$  683,122,000	5.1%
Mortgage loans payable related to real estate held for sale/conveyance - discontinued operations (a)
Fixed-rate mortgages	$  129,214,000	5.6%	5.0% - 6.5%	$  135,991,000	5.6%	5.0% - 6.5%
Variable-rate mortgage	18,900,000	5.9%		21,000,000	5.9%
	$  148,114,000	5.6%		$  156,991,000	5.6%
(a) Restated to reflect the reclassifications of properties subsequently treated as "held for sale/conveyance".

On July 6, 2011, the Company refinanced a property that had collateralized the development property credit facility. The new fixed-rate mortgage, aggregating $16.5 million, bears interest at 5.2% per annum, with principal payments based on a 25-year amortization schedule, and maturing in July 2021. The proceeds reduced the balances under the development property credit facility and the stabilized property credit facility by $10.8 million and $5.7 million, respectively.

The variable-rate mortgage represents a $64.0 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 ground-up development property in Pottsgrove, Pennsylvania as collateral for borrowings thereunder. The facility is guaranteed by the Company and will expire, as extended, on November 26, 2011. Borrowings under the facility bear interest at the Company's option at either LIBOR plus a spread of 325 basis points ("bps"), or the agent bank's prime rate. Borrowings outstanding under the facility aggregated $63.8 million at September 30, 2011, and such borrowings bore interest at a rate of 3.5% per annum. As of September 30, 2011, the Company was in compliance with the financial covenants as required by the terms of the construction facility. Subsequent to September 30, 2011, the Company concluded an amended and restated facility with principally the same lenders, for an availability of up to $70.7 million, bearing interest at the Company's option at either LIBOR plus a spread of 275 bps or the agent bank's prime rate plus a spread of 125 bps, with principal payable based on a 30-year amortization schedule, and maturing in October 2013, subject to a one-year extension option.

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 $74.0 million at September 30, 2011. Such borrowings bore interest at an average rate of 5.5% per annum, and the Company had pledged 22 of its shopping center properties as collateral for such borrowings, including six properties which are being treated as "real estate held for sale/conveyance".

The stabilized property credit facility is available to fund acquisitions, remaining 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 September 30, 2011, the Company was permitted to draw up to approximately $137.4 million ($122.1 million if the collateral properties being treated as "held for sale/conveyance" were removed), of which approximately $63.4 million remained available as of that date. As of September 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 ground-up 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 $92.3 million at September 30, 2011, and such borrowings bore interest at a rate of 2.5% per annum. As of September 30, 2011, the Company was in compliance with the as financial covenants required by the terms of the development property credit facility.