Note 11 - Notes and Mortgages Payable

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

11. 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. In 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. The Company achieved such sustainability metric targets, which effectively reduced the rate on the Credit Facility by two basis points. The Credit Facility, which accrues interest at a rate of Adjusted Term SOFR, as defined in the terms of the Credit Facility, plus 75.5 basis points (3.85% as of September 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 September 30, 2022, the Credit Facility had an outstanding balance of $128.0 million, appropriations for letters of credit of $1.2 million and the Company was in compliance with its covenants.

During the nine months ended September 30, 2022, the Company issued the following series of senior unsecured notes (dollars in millions):

Date Issued	Amount Issued		Interest Rate			Maturity Date
Aug-22	$	650.0		4.600	%	Feb-33
Feb-22	$	600.0		3.200	%	Apr-32

During the nine months ended September 30, 2022, the Company fully repaid the following senior unsecured notes (dollars in millions):

Date Paid	Amount Repaid		Interest Rate			Maturity Date
Sep-22 (1)	$	299.7		3.500	%	Apr-23
Sep-22 (1) (2)	$	350.0		3.125	%	Jun-23
Sep-22 (1) (2)	$	299.4		3.375	%	Oct-22
Mar-22 (3)	$	500.0		3.400	%	Nov-22

(1) There was no prepayment charge associated with this early repayment.

(2) Includes partial repayments during May and June 2022.

(3) The Company incurred a prepayment charge of $6.5 million and $0.7 million in write-off of deferred financing costs resulting from this early repayment, which are included in Early extinguishment of debt charges on the Company's Condensed Consolidated Statements of Income.

Mortgages Payable

During the nine months ended September 30, 2022, the Company (i) obtained a $19.0 million mortgage relating to a consolidated joint venture operating property and (ii) repaid $158.4 million of mortgage debt (including fair market value adjustment of $0.5 million) that encumbered 11 operating properties.