Notes Payable and Unsecured Credit Facilities

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Notes Payable and Unsecured Credit Facilities

5. Notes Payable and Unsecured Credit Facilities

The Company’s outstanding debt, net of unamortized debt premium (discount) and debt issuance costs, consisted of the following:

(in thousands)	Weighted Average Contractual Rate	Weighted Average Effective Rate	September 30, 2021		December 31, 2020
Notes payable:
Fixed rate mortgage loans	4.0%	3.9%	$	362,237		272,750
Variable rate mortgage loans (1)	2.8%	2.9%		144,140		146,046
Fixed rate unsecured debt	3.8%	4.0%		3,242,896		3,239,609
Total notes payable				3,749,273		3,658,405
Unsecured credit facilities:
Line of Credit (the "Line") (2)	0.9%	1.3%		—		—
Term loan (3)	2.0%	2.1%		—		264,679
Total debt outstanding			$	3,749,273		3,923,084

(1)	Four of these variable rate loans have interest rate swaps in place to mitigate the interest rate fluctuation risk. Based on these swap agreements, the effective fixed rates of the four loans range from 2.5% to 4.1%.
(2)	Weighted average effective rate for the Line is calculated based on a fully drawn Line balance.
(3)	Weighted average contractual and effective rates for the Term Loan are as of December 31, 2020, as the entire balance was repaid during January 2021.

Significant financing activity during 2021 includes:

During January 2021, the Company repaid in full the $265 million Term Loan and cash settled its related interest rate swap for $2.5 million.

On February 9, 2021, the Company entered into an Amended and Restated Credit Agreement, which among other items, i) maintains its previous level of borrowing capacity of $1.25 billion, ii) includes a $125 million sublimit for swingline loans and $50 million available for issuance of letters of credits, iii) extends the maturity date to March 23, 2025 and iv) provides for two six-month extension options. The existing financial covenants under the Line remained unchanged. As of September 30, 2021, the Company’s borrowing capacity under the Line was $1.2 billion.

On August 1, 2021, the Company assumed $111.2 million, including debt premiums, of 3.81% interest-only fixed rate mortgage loans that mature in 2027 in connection with the Company's acquisition of its partner's 80% interest in the seven properties held in the USAA partnership, of which the Company previously owned a 20% equity interest. See note 2.

Scheduled principal payments and maturities on notes payable and unsecured credit facilities were as follows:

(in thousands)	September 30, 2021
Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities		Unsecured Maturities (1)			Total
2021 (2)	$	2,808		27,750		—			30,558
2022		11,389		5,848		—			17,237
2023		9,695		64,876		—			74,571
2024		4,849		90,742		250,000			345,591
2025		3,732		40,000		250,000			293,732
Beyond 5 Years		10,583		226,234		2,775,000			3,011,817
Unamortized debt premium/(discount) and issuance costs		—		7,871		(32,104	)		(24,233	)
Total	$	43,056		463,321		3,242,896			3,749,273

(1)	Includes unsecured public and private debt and unsecured credit facilities.
(2)	Reflects scheduled principal payments for the remainder of the year.

The Company was in compliance as of September 30, 2021, with the financial and other covenants under its unsecured public and private placement debt and unsecured credit facilities, and expects to remain in compliance for the next twelve months and thereafter.