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v3.23.3

Notes Payable | 9 Months Ended
--- | ---
Sep. 30, 2023
Debt |
Debt | Mortgages Payable During the nine months ended September 30, 2023, we made $20.8 million in principal payments, including the full repayment of two mortgages for $17.4 million. No mortgages were assumed during the nine months ended September 30, 2023. Assumed mortgages are secured by the properties on which the debt was placed and are considered non-recourse debt with limited customary exceptions which vary from loan to loan. Our 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 September 30, 2023, we were in compliance with these covenants. The balance of our deferred financing costs, which are classified as part of 'Mortgages payable, net', on our consolidated balance sheets, was $0.6 million at September 30, 2023 and $0.8 million at December 31, 2022. These costs are being amortized over the remaining term of each mortgage. The following table summarizes our mortgages payable as of September 30, 2023 and December 31, 2022 (dollars in millions):
As Of | Number of Properties (1) |  | Weighted Average Stated Interest Rate (2) |  | Weighted Average Effective Interest Rate (3) |  | Weighted Average Remaining Years Until Maturity |  | Remaining Principal Balance |  | Unamortized Premium and Deferred Financing Costs Balance, net |  | Mortgage Payable Balance
September 30, 2023 | 131 |  | 4.8 | % |  | 3.3 | % |  | 0.7 |  | $ | 822.0 |  |  | $ | 2.3 |  |  | $ | 824.2 |
December 31, 2022 | 136 |  | 4.8 | % |  | 3.3 | % |  | 1.4 |  | $ | 842.3 |  |  | $ | 11.6 |  |  | $ | 853.9 |
(1)At September 30, 2023, there were 16 mortgages on 131 properties and at December 31, 2022, there were 18 mortgages on 136 properties. With the exception of one Sterling-denominated mortgage which is paid quarterly, the mortgages require monthly payments with principal payments due at maturity. At September 30, 2023 and December 31, 2022, all mortgages were at fixed interest rates. (2) Stated interest rates ranged from 3.0% to 6.9% at September 30, 2023 and December 31, 2022, respectively. (3) Effective interest rates ranged from 1.3% to 6.6% and 2.7% to 6.6% at September 30, 2023 and December 31, 2022, respectively. The following table summarizes the maturity of mortgages payable as of September 30, 2023, excluding $2.3 million related to unamortized net premiums and deferred financing costs (dollars in millions):
Year of Maturity |  | Principal
2023 |  | $ | 1.3
2024 |  | 740.5
2025 |  | 42.4
2026 |  | 12.0
2027 |  | 22.3
Thereafter |  | 3.5
Totals |  | $ | 822.0
Notes Payable |
Debt |
Debt | Notes Payable A. General At September 30, 2023, our senior unsecured notes and bonds are USD-denominated, Sterling-denominated, and Euro-denominated. Foreign-denominated notes are converted at the applicable exchange rate on the balance sheet date. The following are sorted by maturity date (in thousands):
|  |  |  |  |  | Carrying Value (USD) as of
|  | Maturity Dates |  | Principal (Currency Denomination) |  | September 30, 2023 |  | December 31, 2022
4.600% Notes due 2024 |  | February 6, 2024 |  | $ | 499,999 |  |  | $ | 499,999 |  |  | $ | 499,999 |
3.875% Notes due 2024 |  | July 15, 2024 |  | $ | 350,000 |  |  | 350,000 |  |  | 350,000 |
3.875% Notes due 2025 |  | April 15, 2025 |  | $ | 500,000 |  |  | 500,000 |  |  | 500,000 |
4.625% Notes due 2025 |  | November 1, 2025 |  | $ | 549,997 |  |  | 549,997 |  |  | 549,997 |
5.050% Notes due 2026 |  | January 13, 2026 |  | $ | 500,000 |  |  | 500,000 |  |  | — |
0.750% Notes due 2026 |  | March 15, 2026 |  | $ | 325,000 |  |  | 325,000 |  |  | 325,000 |
4.875% Notes due 2026 |  | June 1, 2026 |  | $ | 599,997 |  |  | 599,997 |  |  | 599,997 |
4.125% Notes due 2026 |  | October 15, 2026 |  | $ | 650,000 |  |  | 650,000 |  |  | 650,000 |
1.875% Notes due 2027 (1) |  | January 14, 2027 |  | £ | 250,000 |  |  | 305,075 |  |  | 301,225 |
3.000% Notes due 2027 |  | January 15, 2027 |  | $ | 600,000 |  |  | 600,000 |  |  | 600,000 |
1.125% Notes due 2027 (1) |  | July 13, 2027 |  | £ | 400,000 |  |  | 488,120 |  |  | 481,960 |
3.950% Notes due 2027 |  | August 15, 2027 |  | $ | 599,873 |  |  | 599,873 |  |  | 599,873 |
3.650% Notes due 2028 |  | January 15, 2028 |  | $ | 550,000 |  |  | 550,000 |  |  | 550,000 |
3.400% Notes due 2028 |  | January 15, 2028 |  | $ | 599,816 |  |  | 599,816 |  |  | 599,816 |
2.200% Notes due 2028 |  | June 15, 2028 |  | $ | 499,959 |  |  | 499,959 |  |  | 499,959 |
4.700% Notes due 2028 |  | December 15, 2028 |  | $ | 400,000 |  |  | 400,000 |  |  | — |
3.250% Notes due 2029 |  | June 15, 2029 |  | $ | 500,000 |  |  | 500,000 |  |  | 500,000 |
3.100% Notes due 2029 |  | December 15, 2029 |  | $ | 599,291 |  |  | 599,291 |  |  | 599,291 |
4.850% Notes due 2030 |  | March 15, 2030 |  | $ | 600,000 |  |  | 600,000 |  |  | — |
3.160% Notes due 2030 |  | June 30, 2030 |  | £ | 140,000 |  |  | 170,842 |  |  | 168,686 |
4.875% Notes due 2030 (1) |  | July 6, 2030 |  | € | 550,000 |  |  | 582,120 |  |  | — |
1.625% Notes due 2030 (1) |  | December 15, 2030 |  | £ | 400,000 |  |  | 488,120 |  |  | 481,960 |
3.250% Notes due 2031 |  | January 15, 2031 |  | $ | 950,000 |  |  | 950,000 |  |  | 950,000 |
3.180% Notes due 2032 |  | June 30, 2032 |  | £ | 345,000 |  |  | 421,004 |  |  | 415,691 |
5.625% Notes due 2032 |  | October 13, 2032 |  | $ | 750,000 |  |  | 750,000 |  |  | 750,000 |
2.850% Notes due 2032 |  | December 15, 2032 |  | $ | 699,655 |  |  | 699,655 |  |  | 699,655 |
1.800% Notes due 2033 |  | March 15, 2033 |  | $ | 400,000 |  |  | 400,000 |  |  | 400,000 |
1.750% Notes due 2033 (1) |  | July 13, 2033 |  | £ | 350,000 |  |  | 427,105 |  |  | 421,715 |
4.900% Notes due 2033 |  | July 15, 2033 |  | $ | 600,000 |  |  | 600,000 |  |  | — |
2.730% Notes due 2034 |  | May 20, 2034 |  | £ | 315,000 |  |  | 384,395 |  |  | 379,544 |
5.125% Notes due 2034 (1) |  | July 6, 2034 |  | € | 550,000 |  |  | 582,120 |  |  | — |
5.875% Bonds due 2035 |  | March 15, 2035 |  | $ | 250,000 |  |  | 250,000 |  |  | 250,000 |
3.390% Notes due 2037 |  | June 30, 2037 |  | £ | 115,000 |  |  | 140,335 |  |  | 138,563 |
2.500% Notes due 2042 (1) |  | January 14, 2042 |  | £ | 250,000 |  |  | 305,075 |  |  | 301,225 |
4.650% Notes due 2047 |  | March 15, 2047 |  | $ | 550,000 |  |  | 550,000 |  |  | 550,000 |
Total principal amount |  | $ | 17,417,897 |  |  | $ | 14,114,156 |
Unamortized net premiums, deferred financing costs, and cumulative basis adjustment on fair value hedge (2) |  | 64,755 |  |  | 163,857 |
|  |  |  |  |  | $ | 17,482,652 |  |  | $ | 14,278,013 |
(1) Interest paid annually. Interest on the remaining senior unsecured notes and bond obligations included in the table is paid semi-annually. (2) In January 2023, in conjunction with the pricing of these senior unsecured notes due January 2026, we entered into three-year, fixed-to-variable interest rate swaps, which are accounted for as fair value hedges. See Note 11, Derivative Instruments for further details. The following table summarizes the maturity of our notes and bonds payable as of September 30, 2023, excluding $64.8 million related to unamortized net premiums, deferred financing costs, and basis adjustment on interest rate swaps designated as fair value hedges (dollars in millions):
Year of Maturity |  | Principal
2023 |  | $ | — |
2024 |  | 850.0 |
2025 |  | 1,050.0 |
2026 |  | 2,075.0 |
2027 |  | 1,993.1 |
Thereafter |  | 11,449.8 |
Totals |  | $ | 17,417.9 |
As of September 30, 2023, the weighted average interest rate on our notes and bonds payable was 3.7%, and the weighted average remaining years until maturity was 6.6 years. Interest incurred on all of the notes and bonds was $159.7 million and $107.9 million for the three months ended September 30, 2023, and 2022, respectively, and $434.1 million and $314.0 million for the nine months ended September 30, 2023, and 2022, respectively. Our outstanding notes and bonds are unsecured; accordingly, we have not pledged any assets as collateral for these or any other obligations. All of these notes and bonds contain various covenants, including: (i) a limitation on incurrence of any debt which would cause our debt to total adjusted assets ratio to exceed 60%; (ii) a limitation on incurrence of any secured debt which would cause our secured debt to total adjusted assets ratio to exceed 40%; (iii) a limitation on incurrence of any debt which would cause our debt service coverage ratio to be less than 1.5 times; and (iv) the maintenance at all times of total unencumbered assets not less than 150% of our outstanding unsecured debt. At September 30, 2023, we were in compliance with these covenants. B. Note Issuances During the nine months ended September 30, 2023, we issued the following notes and bonds (in millions):
|  | Date of Issuance |  | Maturity Date |  | Principal amount |  | Price of par value |  | Effective yield to maturity
5.050% Notes |  | January 2023 |  | January 2026 |  | $ | 500.0 |  | (1) | 99.618 | % |  | 5.189 | %
4.850% Notes |  | January 2023 |  | March 2030 |  | $ | 600.0 |  |  | 98.813 | % |  | 5.047 | %
4.700% Notes |  | April 2023 |  | December 2028 |  | $ | 400.0 |  |  | 98.949 | % |  | 4.912 | %
4.900% Notes |  | April 2023 |  | July 2033 |  | $ | 600.0 |  |  | 98.020 | % |  | 5.148 | %
4.875% Notes |  | July 2023 |  | July 2030 |  | € | 550.0 |  |  | 99.421 | % |  | 4.975 | %
5.125% Notes |  | July 2023 |  | July 2034 |  | € | 550.0 |  |  | 99.506 | % |  | 5.185 | %
(1) In January 2023, we issued $500 million of 5.05% senior unsecured notes due January 13, 2026, which are callable at par on January 13, 2024.

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