Notes Payable and Unsecured Credit Facilities

12 Months Ended

Dec. 31, 2019

Notes Payable and Unsecured Credit Facilities

9.	Notes Payable and Unsecured Credit Facilities

The Company’s outstanding debt consists of the following:

	Maturing Through	Weighted Average Contractual Rate	Weighted Average Effective Rate	December 31,
(in thousands)				2019		2018
Notes payable:
Fixed rate mortgage loans	10/1/2036	4.4%	4.0%	$	342,020	$	403,306
Variable rate mortgage loans ⁽¹⁾	6/2/2027	3.2%	3.3%		148,389		127,850
Fixed rate unsecured public and private debt	3/15/2049	3.9%	4.1%		2,944,752		2,475,322
Total notes payable				$	3,435,161		3,006,478
Unsecured credit facilities:
Line of Credit ⁽²⁾	3/23/2022	2.7%	2.9%	$	220,000	$	145,000
Term Loans	1/5/2022	2.0%	2.1%		264,383		563,734
Total unsecured credit facilities				$	484,383		708,734
Total debt outstanding				$	3,919,544		3,715,212

⁽¹⁾

Includes six mortgages, whose interest varies on LIBOR based formulas. Four of these variable rate loans have interest rate swaps in place to fix the interest rates at a range of 2.5% to 4.1%. The weighted average contractual and effective rates above are based on the rates with the interest rate swaps.

⁽²⁾	Maturity is subject to two six month extensions at the Company's option. The weighted average contractual and effective interest rates for the Line are calculated based on a fully drawn Line balance.

Notes Payable

Notes payable consist of mortgage loans secured by properties and unsecured public and private debt. Mortgage loans may be prepaid, but could be subject to yield maintenance premiums, and are generally due in monthly installments of principal and interest or interest only. Unsecured public debt may be prepaid subject to accrued and unpaid interest through the proposed redemption date and a make-whole premium. Interest on unsecured public and private debt is payable semi-annually.

The Company is required to comply with certain financial covenants for its unsecured public debt as defined in the indenture agreements such as the following ratios: Consolidated Debt to Consolidated Assets, Consolidated Secured Debt to Consolidated Assets, Consolidated Income for Debt Service to Consolidated Debt Service, and Unencumbered Consolidated Assets to Unsecured Consolidated Debt. As of December 31, 2019, management of the Company believes it is in compliance with all financial covenants for its unsecured public debt.

Unsecured Credit Facilities

The Company has an unsecured line of credit commitment (the “Line”) and an unsecured term loan (the “Term Loan”) under separate credit agreements with a syndicate of banks.

The Line has a borrowing capacity of $1.25 billion, which is reduced by the balance of outstanding borrowings and commitments under outstanding letters of credit. The Line bears interest at a variable rate of LIBOR plus 0.875% and is subject to a commitment fee of 0.15%, both of which are based on the Company's corporate credit rating.

The Term Loan bears interest at a variable rate based on LIBOR plus 0.95% and has an interest rate swap in place to fix the interest rate at 2.0%, as discussed further in note 10.

The Company is required to comply with certain financial covenants as defined in the Line and Term Loan credit agreements, such as Ratio of Indebtedness to Total Asset Value (“TAV”), Ratio of Unsecured Indebtedness to Unencumbered Asset Value, Ratio of Adjusted EBITDA to Fixed Charges, Ratio of Secured Indebtedness to TAV, Ratio of Unencumbered Net Operating Income to Unsecured Interest Expense, and other covenants customary with this type of unsecured financing. As of December 31, 2019, management of the Company believes it is in compliance with all financial covenants for the Line and Term Loans.

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

(in thousands)	December 31, 2019
Scheduled Principal Payments and Maturities by Year:	Scheduled Principal Payments		Mortgage Loan Maturities		Unsecured Maturities ₍₁₎			Total
2020	$	11,285		39,074		—			50,359
2021		11,598		74,101		—			85,699
2022		11,797		5,848		785,000			802,645
2023		10,124		59,374		—			69,498
2024		5,301		90,742		250,000			346,043
Beyond 5 Years		21,712		145,303		2,425,000			2,592,015
Unamortized debt premium/(discount) and issuance costs		—		4,150		(30,865	)		(26,715	)
Total notes payable	$	71,817		418,592		3,429,135			3,919,544

⁽¹⁾

Includes unsecured public and private debt and unsecured credit facilities.

The Company has $39.1 million of debt maturing over the next twelve months, which is in the form of non-recourse mortgage loans. The Company currently intends to repay the maturing balances and leave the properties unencumbered. The Company has sufficient capacity on its Line to repay the maturing debt, if necessary.