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Mortgages Payable | 12 Months Ended
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Dec. 31, 2016
Mortgages Payable |
Debt instrument |
Debt | 7. Mortgages Payable During 2016, we made $231.7 million in principal payments, including the repayment of 11 mortgages in full for $201.8 million, and we assumed mortgages totaling $44.1 million, excluding net premiums. During 2016, we refinanced one of these assumed mortgages and received an additional $10.0 million in proceeds. The assumed mortgages are secured by the properties on which the debt was placed and are considered non-recourse debt with limited customary exceptions for items such as solvency, bankruptcy, misrepresentation, fraud, misapplication of payments, environmental liabilities, failure to pay taxes, insurance premiums, liens on the property, violations of the single purpose entity requirements, and uninsured losses. We expect to pay off our mortgages as soon as prepayment penalties make it economically feasible to do so. During 2016, a premium of $692,000 was recorded upon the assumption of one mortgage with an above-market interest rate. The interest rates on the remaining mortgages assumed were at market. Amortization of our net premiums is recorded as a reduction to interest expense over the remaining term of the respective mortgages, using a method that approximates the effective-interest method. These mortgages contain customary covenants, such as limiting our ability to further mortgage each applicable property or to discontinue insurance coverage without the prior consent of the lender. At December 31, 2016, we remain in compliance with these covenants. During 2015, we made $198.4 million in principal payments, including the repayment of 13 mortgages in full for $191.0 million. No mortgages were assumed during 2015. We did not incur any deferred financing costs on our mortgages assumed in 2016. The balance of our deferred financing costs, which are classified as part of mortgages payable, net, on our consolidated balance sheets, was $324,000 at December 31, 2016 and $553,000 at December 31, 2015. These costs are being amortized over the remaining term of each mortgage. The following is a summary of all our mortgages payable as of December 31, 2016 and 2015, respectively (dollars in thousands):
|  |  |  | Weighted |  | Weighted |  | Weighted |  |  |  | Unamortized |  |  |
|  |  |  | Average |  | Average |  | Average |  |  |  | Premium |  |  |
|  |  |  | Stated |  | Effective |  | Remaining |  | Remaining |  | and Deferred |  | Mortgage |
|  | Number of |  | Interest |  | Interest |  | Years Until |  | Principal |  | Finance Costs |  | Payable |
As Of |  | Properties(1) |  | Rate(2) |  | Rate(3) |  | Maturity |  | Balance |  | Balance, net |  | Balance |
12/31/16 |  | 127 |  | 4.9% |  | 4.3% |  | 4.0 |  | $ | 460,008 |  | $ | 6,037 |  | $ | 466,045 |
12/31/15 |  | 183 |  | 4.9% |  | 4.1% |  | 3.6 |  | $ | 637,658 |  | $ | 8,529 |  | $ | 646,187 |
(1) At December 31, 2016, there were 36 mortgages on 127 properties, while at December 31, 2015, there were 44 mortgages on 183 properties. The mortgages require monthly payments, with principal payments due at maturity. The mortgages are at fixed interest rates, except for six mortgages on 15 properties totaling $74.0 million at December 31, 2016, including net unamortized discounts. At December 31, 2015, four mortgages on 13 properties totaling $51.1 million, including net unamortized discounts, were at variable interest rates. After factoring in arrangements which limit our exposure to interest rate risk and effectively fix our per annum interest rates, our variable rate mortgage debt includes four mortgages totaling $38.2 million at December 31, 2016, and two mortgages totaling $15.5 million at December 31, 2015. (2) Stated interest rates ranged from 2.4% to 6.9% at December 31, 2016, while stated interest rates ranged from 2.0% to 6.9% at December 31, 2015. (3) Effective interest rates ranged from 2.5% to 8.8% at December 31, 2016, while effective interest rates ranged from 2.2% to 8.9% at December 31, 2015. The following table summarizes the maturity of mortgages payable, excluding net premiums of $6.4 million and deferred finance costs of $324,000, as of December 31, 2016 (dollars in millions):
Year of Maturity |  | Principal
2017 |  | $ | 103.2
2018 |  | 21.9
2019 |  | 42.3
2020 |  | 82.4
2021 |  | 66.9
Thereafter |  | 143.3
Totals |  | $ | 460.0

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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