Note 10 - Notes and Mortgages Payable

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

10. Notes and Mortgages Payable

Notes Payable

The Company has a $2.0 billion unsecured revolving credit facility (the “Credit Facility”) with a group of banks which is scheduled to expire in March 2024, with two additional six-month options to extend the maturity date, at the Company’s discretion, to March 2025. The Credit Facility is a green credit facility tied to sustainability metric targets, as described in the agreement. The Company achieved such targets, which effectively reduced the rate on the Credit Facility by one basis point. The Credit Facility, which accrues interest at a rate of LIBOR plus 76.5 basis points (2.55% as of June 30, 2022), can be increased to $2.75 billion through an accordion feature. Pursuant to the terms of the Credit Facility, the Company, among other things, is subject to covenants requiring the maintenance of (i) maximum indebtedness ratios and (ii) minimum interest and fixed charge coverage ratios. As of June 30, 2022, the Credit Facility had no outstanding balance, appropriations for letters of credit of $1.2 million and the Company was in compliance with its covenants.

During July 2022, the Company amended the Credit Facility to (i) replace LIBOR borrowings with Secured Overnight Financing Rate (“SOFR”) borrowings, (ii) supplement the sustainability grid with an additional one basis point reduction of applicable margin if certain criteria as defined in the Credit Facility are met, (iii) add a leverage metric test which, if met, reduces the applicable margin by five basis points and (iv) obtain pre-approval of a possible organizational conversion to an UPREIT structure.

In February 2022, the Company issued $600.0 million of senior unsecured notes, which are scheduled to mature in April 2032 and accrue interest at a rate of 3.20% per annum. Proceeds from this issuance were used for general corporate purposes, including the repayment of certain senior unsecured notes.

During the six months ended June 30, 2022, the Company repaid or partially repaid the following notes (dollars in millions):

Type	Date Paid	Amount Repaid		Interest Rate			Maturity Date
Senior unsecured notes (1)	Mar-22	$	500.0		3.400	%	Nov-22
Senior unsecured notes (2)	May-22 & Jun-22	$	36.1		3.125	%	Jun-23
Senior unsecured notes (3)	Jun-22	$	11.0		3.375	%	Oct-22

(1) The Company incurred a prepayment charge of $6.5 million and $0.7 million in write-off of deferred financing costs resulting from the early repayment.

(2) Represents partial repayments. As of June 30, 2022, these notes had an outstanding principal of $313.9 million.

(3) Represents partial repayments. As of June 30, 2022, these notes had an outstanding principal of $288.4 million.

Mortgages Payable

During the six months ended June 30, 2022, the Company (i) obtained a $19.0 million mortgage relating to a consolidated joint venture operating property and (ii) repaid $115.3 million of mortgage debt (including fair market value adjustment of $0.2 million) that encumbered six operating properties.