MORTGAGES PAYABLE AND CONSTRUCTION DEBT

12 Months Ended

Apr. 30, 2016

MORTGAGES PAYABLE AND CONSTRUCTION DEBT [Abstract]

NOTE 8 • MORTGAGES PAYABLE AND CONSTRUCTION DEBT

Most of our properties owned individually serve as collateral for separate mortgage loans on single properties or groups of properties. The majority of these mortgages payable are non-recourse to us, other than for standard carve-out obligations such as fraud, waste, failure to insure, environmental conditions and failure to pay real estate taxes. Interest rates on mortgages payable range from 2.44% to 7.94%, and the mortgages have varying maturity dates from July 1, 2016 through July 1, 2036. As of April 30, 2016, management believes there are no material defaults or material compliance issues in regards to any of these mortgages payable.

Of the mortgages payable, including mortgages on properties held for sale, the balance of fixed rate mortgages totaled $689.3 million and $904.9 million at April 30, 2016 and 2015, respectively, and the balances of variable rate mortgages totaled $196.8 million and $70.0 million as of April 30, 2016, and 2015, respectively. We do not utilize derivative financial instruments to mitigate our exposure to changes in market interest rates. Most of the fixed rate mortgages have substantial pre-payment penalties. As of April 30, 2016, the weighted-average rate of interest on our mortgage debt was 4.54%, compared to 5.16% on April 30, 2015. The aggregate amount of required future principal payments on mortgages payable as of April 30, 2016, is as follows


		(in thousands)
		Mortgages		Mortgages
		on Properties		on Properties
		Held for		Held for
Year Ended April 30,		Investment		Sale
2017	$	102,636	$	48,046
2018		54,931		1,106
2019		144,436		6,921
2020		103,537		612
2021		154,389		4,901
Thereafter		257,395		7,237
Total payments	$	817,324	$	68,823

In addition to mortgage loans comprising our $886.1 million of mortgage indebtedness, our revolving, multi-bank secured line of credit discussed in Note 7 is secured as of April 30, 2016, by mortgages on 17 properties. This line of credit is not included in our mortgage indebtedness total. We currently have 29 unencumbered properties.

Our construction debt totaled $82.0 million and $136.2 million on April 30, 2016 and 2015, respectively. The weighted average rate of interest on the construction debt as of April 30, 2016 was 2.74%, compared to 3.38% as of April 30, 2015. The total available to be drawn on the construction loans was $26.2 million at April 30, 2016.