Mortgage Loans Payable and Credit Facility (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Debt Related to Continuing Operations

Debt is composed of the following at September 30, 2018:

			September 30, 2018
						Contractual
	Maturity		Balance			interest rates
Description	dates		outstanding			weighted-average
Fixed-rate mortgage	Jun 2026		$	47,917,000		3.9%
Unsecured credit facilities:
Variable-rate:
Revolving credit facility	Sep 2021	(a)		102,000,000		3.5%
Term loan	Sep 2022			50,000,000		3.4%
Fixed-rate (b):
Term loan	Feb 2021			75,000,000		3.6%
Term loan	Feb 2022			50,000,000		3.0%
Term loan	Sep 2022	(c)		50,000,000		2.8%
Term loan	Apr 2023			100,000,000		3.2%
Term loan	Sep 2024	(d)		75,000,000		3.3%
Term loan	Jul 2025			75,000,000		4.6%
				624,917,000		3.5%
Unamortized debt issuance costs				(3,418,000	)
			$	621,499,000

(a)

The revolving credit facility is subject to a one-year extension at the Company’s option.

(b)

The interest rates on these term loans consist of LIBOR plus a credit spread based on the Company’s leverage ratio, for which the Company has interest rate swap agreements which convert the LIBOR rates to fixed rates. Accordingly, these term loans are presented as fixed-rate debt.

(c)

The current interest rate swap agreement expires in February 2019 at which time a new interest rate swap agreement will begin resulting in an effective interest rate of 3.2%, based on the Company’s current leverage ratio.

(d)

The current interest rate swap agreement expires in February 2020 at which time a new interest rate swap agreement will begin resulting in an effective interest ratio of 3.7%, based on the Company’s current leverage ratio.

Schedule of Mortgage Loans Payable Repaid

During 2018, the Company repaid the following mortgage loans payable:

		Principal payoff
Property	Repayment date	amount
East River Park	August 10, 2018	$	18,772,000
Colonial Commons	August 24, 2018	$	24,108,000
Shoppes at Arts District	August 24, 2018	$	8,114,000
The Point	September 6, 2018	$	27,003,000

Summary of Derivative Financial Instruments Held

The following is a summary of the derivative financial instruments held by the Company at September 30, 2018 and December 31, 2017:

September 30, 2018

Designation/

Fair

Maturity

Balance sheet

Cash flow

Derivative

Count

value

dates

location

Qualifying

Interest rate swaps

15,755,000

2019-2025

Other assets and deferred charges, net

December 31, 2017

Designation/

Fair

Maturity

Balance sheet

Cash flow

Derivative

Count

value

dates

location

Qualifying

Interest rate swaps

6,394,000

2019-2024

Other assets and deferred charges, net

Qualifying

Interest rate swaps

511,000

2021

Accounts payable and accrued liabilities

Effect of Derivative Financial Instruments on Consolidated Statements of Operations and Consolidated Statements of Equity

The following presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations and the consolidated statements of equity for the three and nine months ended September 30, 2018 and 2017, respectively:

		Gain recognized in other
		comprehensive (loss) income
		(effective portion)
Designation/		Three months ended September 30,					Nine months ended September 30,
Cash flow	Derivative	2018		2017			2018		2017
Qualifying	Interest rate swaps	$	2,375,000	$	872,000		$	10,221,000	$	(332,000	)

		Gain (loss) recognized in other
		comprehensive (loss) income
		reclassified into earnings (effective portion)
		Three months ended September 30,					Nine months ended September 30,
	Classification	2018		2017			2018		2017
	Continuing Operations	$	246,000	$	(407,000	)	$	265,000	$	(1,923,000	)