Notes Payable

On June 30, 2012 and December 31, 2011, we had total indebtedness of approximately $1.59 billion and $1.65 billion, respectively. Our indebtedness as of June 30, 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. As of June 30, 2012 the full amount was outstanding under this agreement. Upon reaching an investment grade rating from either Moody's or Standard & Poor's, the variable rate will reset monthly at LIBOR plus a spread of 1.10% to 2.05% based on an investment grade ratings grid.

As of June 30, 2012, approximately 53% 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 23 interest rate swaps and 18 interest rate caps as of June 30, 2012, representing notional amounts totaling $601.8 million and $256.4 million, respectively. We also held 3 non-designated interest rate caps with notional amounts totaling $14.3 million as of June 30, 2012.

The following table summarizes our outstanding debt structure as of June 30, 2012 (dollars in thousands):



	Borrowed Balance ⁽²⁾		Effective Rate		Contract Maturity
Fixed Rate Secured Debt
Individual property mortgages	$	374,738	4.8	%	8/26/2019
FNMA conventional credit facilities	50,000		4.7	%	3/31/2017
Credit facility balances with:
LIBOR-based interest rate swaps	434,000		5.2	%	1/1/2014
SIFMA-based interest rate swaps	17,800		4.4	%	10/15/2012
Total fixed rate secured debt	$	876,538	5.0	%	7/29/2016
Variable Rate Secured Debt ⁽¹⁾
FNMA conventional credit facilities	$	197,721	0.8	%	3/18/2016
FNMA tax-free credit facilities	72,715		1.0	%	7/23/2031
Freddie Mac credit facilities	64,247		0.8	%	7/1/2014
Freddie Mac mortgage	15,200		3.6	%	12/10/2015
Total variable rate secured debt	$	349,883	1.0	%	1/27/2019
Total Secured Debt	$	1,226,421	3.9	%	4/15/2017

Unsecured Debt
Variable rate credit facility	$	78,000	1.7	%	11/1/2015
Term loan fixed with swaps	150,000		2.7	%	3/1/2017
Fixed rate senior private placement bonds	135,000		5.1	%	8/23/2020
Total Unsecured Debt	$	363,000	3.4	%	3/4/2018

Total Outstanding Debt	$	1,589,421	3.8	%	6/28/2017

⁽¹⁾ Includes capped balances.

⁽²⁾Excludes borrowings on properties categorized as Assets Held for Sale on the Consolidated Balance Sheet. As of June 30, 2012 held for sale properties include a $9.1 million mortgage with a fixed interest rate of 5.9% maturing on January 1, 2044.