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Indebtedness
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Indebtedness
Indebtedness
The following table discloses certain information regarding our indebtedness: 
 
Outstanding Balance at
 
Interest
Rate at
June 30, 2017
 
Effective
Interest
Rate at
Issuance
 
Maturity
Date
 
June 30, 2017
 
December 31,
2016
 
Mortgage Loans Payable, Gross
$
456,928

 
$
498,435

 
4.03% – 8.26%
 
3.82% – 8.26%
 
June 2018 –
September 2022
Unamortized Deferred Financing Costs
(2,255
)
 
(2,905
)
 
 
 
 
 
 
Unamortized Premiums
343

 
426

 
 
 
 
 
 
Mortgage Loans Payable, Net
$
455,016

 
$
495,956

 
 
 
 
 
 
Senior Unsecured Notes, Gross
 
 
 
 
 
 
 
 
 
2017 Notes
54,981

 
54,981

 
7.50%
 
7.52%
 
12/1/2017
2027 Notes
6,070

 
6,070

 
7.15%
 
7.11%
 
5/15/2027
2028 Notes
31,901

 
31,901

 
7.60%
 
8.13%
 
7/15/2028
2032 Notes
10,600

 
10,600

 
7.75%
 
7.87%
 
4/15/2032
2017 II Notes

 
101,871

 
N/A
 
N/A
 
5/15/2017
2027 Private Placement Notes
125,000

 

 
4.30%
 
4.30%
 
4/20/2027
2029 Private Placement Notes
75,000

 

 
4.40%
 
4.40%
 
4/20/2029
Subtotal
$
303,552

 
$
205,423

 
 
 
 
 
 
Unamortized Deferred Financing Costs
(1,909
)
 
(320
)
 
 
 
 
 
 
Unamortized Discounts
(89
)
 
(105
)
 
 
 
 
 
 
Senior Unsecured Notes, Net
$
301,554

 
$
204,998

 
 
 
 
 
 
Unsecured Term Loans, Gross
 
 


 
 
 
 
 
 
2014 Unsecured Term Loan (A)
$
200,000

 
$
200,000

 
3.99%
 
N/A
 
1/29/2021
2015 Unsecured Term Loan (A)
260,000

 
260,000

 
3.39%
 
N/A
 
9/12/2022
Subtotal
$
460,000

 
$
460,000

 

 

 

Unamortized Deferred Financing Costs
(3,029
)
 
(3,362
)
 
 
 
 
 
 
Unsecured Term Loans, Net
$
456,971

 
$
456,638

 
 
 
 
 
 
Unsecured Credit Facility (B)
$
127,000

 
$
189,500

 
2.22%
 
N/A
 
3/11/2019

(A) The interest rate at June 30, 2017 reflects the interest rate protection agreements we entered into to effectively convert the variable rate to a fixed rate. See Note 10.
(B) The maturity date may be extended an additional year at our election, subject to certain restrictions. Amounts exclude unamortized deferred financing costs of $2,213 and $2,876 as of June 30, 2017 and December 31, 2016, respectively, which are included in prepaid expenses and other assets on the consolidated balance sheets.
Mortgage Loans Payable, Net
During the six months ended June 30, 2017, we paid off mortgage loans in the amount of $36,108. In connection with the mortgage loans paid off during the six months ended June 30, 2017, we recognized $1,653 as loss from retirement of debt representing prepayment penalties and the write-off of unamortized deferred financing costs.
As of June 30, 2017, mortgage loans payable are collateralized, and in some instances cross-collateralized, by industrial properties with a net carrying value of $590,246. We believe the Operating Partnership and the Company were in compliance with all covenants relating to mortgage loans as of June 30, 2017.
Senior Unsecured Notes, Net
During the six months ended June 30, 2017, the Operating Partnership issued $125,000 of 4.30% Series A Guaranteed Senior Notes due April 20, 2027 (the “2027 Private Placement Notes”) and $75,000 of 4.40% Series B Guaranteed Senior Notes due April 20, 2029 (the “2029 Private Placement Notes”) (collectively, the "Private Placement Notes") in a private placement pursuant to a Note and Guaranty Agreement dated February 21, 2017. The 2027 Private Placement Notes and the 2029 Private Placement Notes are unsecured obligations of the Operating Partnership that are fully and unconditionally guaranteed by the Company and require semi-annual interest payments.
Additionally, during the six months ended June 30, 2017, we paid off and retired our 2017 II Notes (as described in the table above), at maturity in the amount of $101,871.
Indebtedness
The following is a schedule of the stated maturities and scheduled principal payments of our indebtedness, exclusive of premiums, discounts and deferred financing costs, for the next five years as of June 30, and thereafter: 
 
Amount
Remainder of 2017
$
60,307

2018
165,449

2019
206,329

2020
58,762

2021
266,818

Thereafter
589,815

Total
$
1,347,480


Our unsecured credit facility (the "Unsecured Credit Facility"), the Unsecured Term Loans (as defined in Note 10), the Private Placement Notes and the indentures governing our senior unsecured notes contain certain financial covenants, including limitations on incurrence of debt and debt service coverage. Under the Unsecured Credit Facility and the Unsecured Term Loans an event of default can occur if the lenders, in their good faith judgment, determine that a material adverse change has occurred which could prevent timely repayment or materially impair our ability to perform our obligations under the loan agreements. We believe that the Operating Partnership and the Company were in compliance with all covenants relating to the Unsecured Credit Facility, the Unsecured Term Loans, the Private Placement Notes and indentures governing our senior unsecured notes as of June 30, 2017. However, these financial covenants are complex and there can be no assurance that these provisions would not be interpreted by our lenders and noteholders in a manner that could impose and cause us to incur material costs.
Fair Value
At June 30, 2017 and December 31, 2016, the fair value of our indebtedness was as follows: 
 
June 30, 2017
 
December 31, 2016
 
Carrying
Amount (A)
 
Fair
Value
 
Carrying
Amount (A)
 
Fair
Value
Mortgage Loans Payable, Net
$
457,271

 
$
470,999

 
$
498,861

 
$
513,540

Senior Unsecured Notes, Net
303,463

 
323,333

 
205,318

 
222,469

Unsecured Term Loans
460,000

 
466,596

 
460,000

 
458,602

Unsecured Credit Facility
127,000

 
127,000

 
189,500

 
189,500

Total
$
1,347,734

 
$
1,387,928

 
$
1,353,679

 
$
1,384,111


(A) The carrying amounts include unamortized premiums and discounts and exclude unamortized deferred financing costs.
The fair values of our mortgage loans payable were determined by discounting the future cash flows using the current rates at which similar loans would be made based upon similar remaining maturities. The current market rates we utilized were internally estimated. The fair value of the senior unsecured notes were determined by using rates, as advised by our bankers, that are based upon recent trades within the same series of the senior unsecured notes, recent trades for senior unsecured notes with comparable maturities, recent trades for fixed rate unsecured notes from companies with profiles similar to ours, as well as overall economic conditions. The fair value of the Unsecured Credit Facility and the Unsecured Term Loans was determined by discounting the future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term, assuming no repayment until maturity. We have concluded that our determination of fair value for each of our mortgage loans payable, senior unsecured notes, the Unsecured Term Loans and the Unsecured Credit Facility was primarily based upon Level 3 inputs.