Notes Payable

On March 31, 2012 and December 31, 2011, we had total indebtedness of $1.5 billion and $1.6 billion, respectively. Our indebtedness as of March 31, 2012 consisted of both conventional and tax exempt debt. Borrowings were made through individual property mortgages as well as company-wide credit facilities. We utilize both secured and unsecured debt.

On March 1, 2012, we entered into a $150 million unsecured term loan agreement with a syndicate of banks led by Key Bank and J.P. Morgan with a variable rate resetting monthly at LIBOR plus a spread of 1.40% to 2.15% based on a leveraged based pricing grid and a maturity date of March 1, 2017. We had borrowings of $50 million outstanding under this agreement at March 31, 2012, with the remaining balance to be received in the second quarter.

As of March 31, 2012, approximately 64% of our outstanding debt was borrowed through secured credit facility relationships with Prudential Mortgage Capital, which are credit enhanced by the Federal National Mortgage Association, or FNMA, and Financial Federal, which are credit enhanced by Freddie Mac.

We utilize interest rate swaps and interest rate caps to help manage our current and future interest rate risk and entered into 24 interest rate swaps and 18 interest rate caps as of March 31, 2012, representing notional amounts totaling $651.8 million and $256.4 million, respectively. We also held 3 non-designated interest rate caps with notional amounts totaling $14.3 million as of March 31, 2012.

The following table summarizes our outstanding debt structure as of March 31, 2012 (dollars in thousands):



	Borrowed Balance		Effective Rate		Contract Maturity
Fixed Rate Secured Debt
Individual property mortgages	$	352,111	5.0	%	7/6/2020
FNMA conventional credit facilities	50,000		4.7	%	3/31/2017
Credit facility balances with:
LIBOR-based interest rate swaps	484,000		5.3	%	10/30/2013
SIFMA-based interest rate swaps	17,800		4.4	%	10/15/2012
Total fixed rate secured debt	$	903,911	5.1	%	8/7/2016
Variable Rate Secured Debt ⁽¹⁾
FNMA conventional credit facilities	$	296,983	0.7	%	10/1/2015
FNMA tax-free credit facilities	72,715		1.0	%	7/23/2031
Freddie Mac credit facilities	64,247		0.7	%	7/1/2014
Freddie Mac mortgage	15,200		3.6	%	12/10/2015
Total variable rate secured debt	$	449,145	0.8	%	2/18/2018
Total Secured Debt	$	1,353,056	3.7	%	2/9/2017

Unsecured Debt
Variable rate credit facility	$	2,000	2.7	%	11/1/2015
Term loan fixed with swaps ⁽²⁾	50,000		1.9	%	3/1/2017
Fixed rate senior private placement bonds	135,000		5.1	%	8/23/2020
Total Unsecured Debt	$	187,000	4.3	%	8/30/2019

Total Outstanding Debt	$	1,540,056	3.8	%	6/2/2017

⁽¹⁾ Includes capped balances.

⁽²⁾ Balance is fixed at 2.7% by interest rate swaps that do not become effective until June 1, 2012. The unswapped rate has been used in this table.