Borrowings

12 Months Ended

Dec. 31, 2021

Notes To Financial Statements [Abstract]

Borrowings

5.Borrowings

The following table summarizes the Company’s outstanding debt as of December 31, 2021 and 2020 (dollars in thousands):

							As of December 31, 2021
Unsecured debt	December 31, 2021			December 31, 2020			Weighted Average Effective Rate			Weighted Average Contract Maturity
Variable rate commercial paper program	$	—		$	172,000			—			—
Fixed rate senior notes		4,175,000			3,922,000			3.3	%	3/4/2029
Debt issuance costs, discounts, premiums and fair market value adjustments		(23,625	)		(16,627	)
Total unsecured debt	$	4,151,375		$	4,077,373			3.3	%
Secured debt
Fixed rate property mortgages	$	368,555		$	488,709			4.4	%	9/24/2048
Debt issuance costs		(3,240	)		(3,370	)
Total secured debt	$	365,315		$	485,339			4.4	%
Total outstanding debt	$	4,516,690		$	4,562,712			3.4	%

Unsecured Revolving Credit Facility

In May 2019, MAALP entered into a $1.0 billion unsecured revolving credit facility with a syndicate of banks led by Wells Fargo Bank, National Association, and fourteen other banks, which is referred to as the Credit Facility. The Credit Facility replaced MAALP’s previous unsecured revolving credit facility, and it includes an expansion option up to $1.5 billion. The Credit Facility bears an interest rate of the London Interbank Offered Rate, or LIBOR, plus a spread of 0.75% to 1.45% based on an investment grade pricing grid. The Credit Facility matures in May 2023 with an option to extend for two additional six-month periods. As of December 31, 2021, there was no outstanding balance under the Credit Facility, while $4.0 million of capacity was used to support outstanding letters of credit. The terms of the Credit Facility allow for the transition to an alternate benchmark interest rate, including the Secured Overnight Financing Rate, to replace any outstanding U.S. dollar (USD) LIBOR borrowings at the time USD LIBOR is no longer published.

Unsecured Commercial Paper

In May 2019, MAALP established an unsecured commercial paper program whereby MAALP may issue unsecured commercial paper notes with varying maturities not to exceed 397 days up to a maximum aggregate principal amount outstanding of $500.0 million. As of December 31, 2021, MAALP had no outstanding borrowings under the commercial paper program.

Unsecured Senior Notes

As of December 31, 2021, MAALP had $4.2 billion of publicly issued unsecured senior notes outstanding. The unsecured senior notes had maturities at issuance ranging from 5 to 30 years, with a weighted average of 7.1 years remaining until maturity as of December 31, 2021.

In July 2021, MAALP retired a $72.8 million tranche of privately placed unsecured senior notes at maturity.

In August 2021, MAALP publicly issued $300 million in aggregate principal amount of unsecured senior notes maturing September 2026 with a coupon rate of 1.100% per annum, or the 2026 Notes. The purchase price paid by the purchasers of the 2026 Notes was 99.553% of the principal amount. The 2026 Notes are general unsecured senior obligations of MAALP and rank equally in right of payment with all other unsecured senior indebtedness of MAALP. Interest on the 2026 Notes is payable semi-annually in arrears on March 15 and September 15 of each year beginning March 15, 2022. The net proceeds of the offering were $296.9 million, after deducting the original issue discount and underwriting commissions totaling $3.1 million. The 2026 Notes have an effective interest rate of 1.191% and have been reflected net of discount and debt issuance costs in the accompanying Consolidated Balance Sheets as of December 31, 2021.

In August 2021, MAALP also publicly issued $300 million in aggregate principal amount of unsecured senior notes maturing September 2051 with a coupon rate of 2.875% per annum, or the 2051 Notes. The purchase price paid by the purchasers of the 2051 Notes was 98.588% of the principal amount. The 2051 Notes are general unsecured senior obligations of MAALP and rank equally in right of payment with all other unsecured senior indebtedness of MAALP. Interest on the 2051 Notes is payable semi-annually in arrears on March 15 and September 15 of each year beginning March 15, 2022. The net proceeds of the offering were $293.1 million, after deducting the original issue discount and underwriting commissions totaling $6.9 million. The 2051 Notes have an effective interest rate of 2.946% and have been reflected net of discount and debt issuance costs in the accompanying Consolidated Balance Sheets as of December 31, 2021.

In September 2021, MAALP retired a $117.0 million tranche of privately placed unsecured senior notes due in November 2022, a $125.0 million portion of the $250.0 million in aggregate principal amount of publicly issued unsecured senior notes due in December 2022, a $12.3 million tranche of privately placed unsecured senior notes due in July 2023, and a $20.0 million tranche of privately placed unsecured senior notes due in November 2024. MAALP incurred $13.4 million in prepayment penalties and write-offs of unamortized costs resulting from the debt retirements during the year ended December 31, 2021. These costs are included in “Other non-operating income” in the accompanying Consolidated Statements of Operations for the year ended December 31, 2021.

Secured Property Mortgages

As of December 31, 2021, MAALP had $368.6 million of fixed rate conventional property mortgages with a weighted average interest rate of 4.4% and a weighted average maturity in 2048.

In February 2021, MAALP retired a $118.6 million mortgage associated with eight apartment communities prior to its June 2021 maturity.

Schedule of Maturities

The following table includes scheduled principal repayments of MAALP’s outstanding borrowings as of December 31, 2021, as well as the amortization of the fair market value of debt assumed, debt discounts, premiums and issuance costs (in thousands):

	Maturities		Amortization			Total
2022	$	125,000	$	(173	)	$	124,827
2023		350,000		(1,166	)		348,834
2024		400,000		(1,976	)		398,024
2025		405,262		(2,838	)		402,424
2026		300,000		(3,570	)		296,430
Thereafter		2,963,293		(17,142	)		2,946,151
Total	$	4,543,555	$	(26,865	)	$	4,516,690