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Mortgage Notes Payable, Unsecured Notes and Credit Facility | 9 Months Ended
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Sep. 30, 2017
Debt Disclosure [Abstract] |
Notes Payable, Unsecured Notes and Credit Facility | Mortgage Notes Payable, Unsecured Notes and Credit Facility The Company's mortgage notes payable, unsecured notes, variable rate unsecured term loans ("Term Loans") and Credit Facility, as defined below, as of September 30, 2017 and December 31, 2016 are summarized below. The following amounts and discussion do not include the mortgage notes related to the communities classified as held for sale, if any, as of September 30, 2017 and December 31, 2016, as shown in the accompanying Condensed Consolidated Balance Sheets (dollars in thousands) (see Note 6, "Real Estate Disposition Activities").
| 9/30/2017 |  | 12/31/2016
Fixed rate unsecured notes (1) | $ | 4,900,000 |  |  | $ | 4,200,000 |
Term Loans (1) | 550,000 |  |  | 300,000 |
Fixed rate mortgage notes payable - conventional and tax-exempt (2) | 617,285 |  |  | 1,668,496 |
Variable rate mortgage notes payable - conventional and tax-exempt (2) | 889,158 |  |  | 908,262 |
Total mortgage notes payable, unsecured notes and Term Loans | 6,956,443 |  |  | 7,076,758 |
Credit Facility | 242,000 |  |  | — |
Total mortgage notes payable, unsecured notes, Term Loans and Credit Facility | $ | 7,198,443 |  |  | $ | 7,076,758 |
_____________________________________
(1) | Balances at September 30, 2017 and December 31, 2016 exclude $9,392 and $8,930, respectively, of debt discount, and $33,517 and $27,768, respectively, of deferred financing costs, as reflected in unsecured notes, net on the accompanying Condensed Consolidated Balance Sheets.
(2) | Balances at September 30, 2017 and December 31, 2016 exclude $16,280 of debt discount and $1,866 of debt premium, respectively, and $11,224 and $11,046, respectively, of deferred financing costs, as reflected in mortgage notes payable on the accompanying Condensed Consolidated Balance Sheets.
The following debt activity occurred during the nine months ended September 30, 2017:
• | In February 2017, the Company repaid $17,300,000 of variable rate debt secured by Avalon Mountain View at par at its scheduled maturity date.
• | In February 2017, the Company entered into a $250,000,000 variable rate unsecured term loan (the "$250 million Term Loan"), of which $100,000,000 matures in February 2022 with stated pricing of LIBOR plus 0.90%, and $150,000,000 matures in February 2024 with stated pricing of LIBOR plus 1.50%. In April 2017, the Company borrowed the $250,000,000 available under the $250 million Term Loan.
• | In May 2017, the Company repaid $670,590,000 aggregate principal amount of 6.26% fixed rate secured notes secured by 11 communities, representing the majority of the Fannie Mae pool 2 secured indebtedness assumed as part of the Archstone acquisition, which had a contractual maturity date of November 2017 but opened for prepayment at par on April 30, 2017. In conjunction with the repayment, the Company recognized a gain of $10,839,000, primarily composed of the write-off of unamortized premium. The Company refinanced the secured borrowings for three of these communities for an aggregate principal amount of $185,100,000, with a contractual fixed interest rate of 3.61% and maturity dates of June 2027.
• | In May 2017, the Company issued $400,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds of approximately $396,016,000. The notes mature in May 2027 and were issued at a 3.35% interest rate.
• | In June 2017, the Company issued $300,000,000 principal amount of unsecured notes in a public offering under its existing shelf registration statement for net proceeds of approximately $297,372,000. The notes mature in July 2047 and were issued at a 4.15% interest rate.
• | In June 2017, the Company repaid $556,313,000 aggregate principal amount of 5.86% fixed rate secured notes secured by 12 wholly-owned operating communities, representing the remaining debt in the Company's Freddie Mac cross-collateralized pool financing originated in 2009, in advance of their May 2019 maturity date. In conjunction with the repayment, the Company recognized a charge of $34,965,000, consisting of prepayment penalties of $33,515,000 and the non-cash write-off of deferred financing costs of $1,450,000.
At September 30, 2017, the Company has a $1,500,000,000 revolving variable rate unsecured credit facility with a syndicate of banks (the "Credit Facility") which matures in April 2020. The Company may extend the maturity for up to nine months, provided the Company is not in default and upon payment of a $1,500,000 extension fee. The Credit Facility bears interest at varying levels based on the London Interbank Offered Rate ("LIBOR"), rating levels achieved on the Company's unsecured notes and on a maturity schedule selected by the Company. The current stated pricing is LIBOR plus 0.825% per annum (2.06% at September 30, 2017), assuming a one month borrowing rate. The annual facility fee is 0.125% (or approximately $1,875,000 annually based on the $1,500,000,000 facility size and based on the Company's current credit rating). The Company had $242,000,000 outstanding under the Credit Facility as of September 30, 2017 and no borrowings outstanding under the Credit Facility as of December 31, 2016. The Company had $44,282,000 and $46,711,000 outstanding in letters of credit that reduced the borrowing capacity as of September 30, 2017 and December 31, 2016, respectively. In the aggregate, secured notes payable mature at various dates from November 2017 through July 2066, and are secured by certain apartment communities (with a net carrying value of $2,204,341,000, excluding communities classified as held for sale, as of September 30, 2017). As of September 30, 2017, the Company has guaranteed a $100,000,000 secured note payable held by a wholly-owned subsidiary; such secured note payable is consolidated for financial reporting purposes. The weighted average interest rate of the Company's fixed rate secured notes payable (conventional and tax-exempt) was 4.0% and 4.4% at September 30, 2017 and December 31, 2016, respectively. The weighted average interest rate of the Company's variable rate secured notes payable (conventional and tax-exempt), the Term Loans and its Credit Facility, including the effect of certain financing related fees, was 2.6% and 2.3% at September 30, 2017 and December 31, 2016, respectively. Scheduled payments and maturities of secured notes payable and unsecured notes outstanding at September 30, 2017 are as follows (dollars in thousands):
Year |  | Secured notes payments |  | Secured notes maturities |  | Unsecured notes maturities |  | Stated interest rate of unsecured notes
2017 |  | 2,223 |  |  | 21,601 |  | (1) | — |  |  | N/A |
2018 |  | 7,258 |  |  | 76,667 |  |  | — |  |  | N/A |
2019 |  | 4,696 |  |  | 114,723 |  |  | — |  |  | N/A |
2020 |  | 3,624 |  |  | 118,729 |  |  | 250,000 |  |  | 6.100 | %
|  |  |  |  |  |  |  | 400,000 |  |  | 3.625 | %
2021 |  | 3,551 |  |  | 27,844 |  |  | 250,000 |  |  | 3.950 | %
|  |  |  |  |  |  |  | 300,000 |  |  | LIBOR + 1.450% |
2022 |  | 3,795 |  |  | — |  |  | 450,000 |  |  | 2.950 | %
|  |  |  |  |  | 100,000 |  |  | LIBOR + 0.90% |
2023 |  | 4,040 |  |  | — |  |  | 350,000 |  |  | 4.200 | %
|  |  |  |  |  |  |  | 250,000 |  |  | 2.850 | %
2024 |  | 4,310 |  |  | — |  |  | 300,000 |  |  | 3.500 | %
|  |  |  |  |  | 150,000 |  |  | LIBOR + 1.50% |
2025 |  | 4,585 |  |  | 84,835 |  |  | 525,000 |  |  | 3.450 | %
|  |  |  |  |  | 300,000 |  |  | 3.500 | %
2026 |  | 4,894 |  |  | — |  |  | 475,000 |  |  | 2.950 | %
|  |  |  |  |  | 300,000 |  |  | 2.900 | %
Thereafter |  | 213,751 |  |  | 805,317 |  |  | 350,000 |  |  | 3.900 | %
|  |  |  |  |  | 400,000 |  |  | 3.350 | %
|  |  |  |  |  | 300,000 |  |  | 4.150 | %
|  | $ | 256,727 |  |  | $ | 1,249,716 |  |  | $ | 5,450,000 |  |  |  |
_____________________________________
(1) | See Note 11, "Subsequent Events," for further discussion.
The Company was in compliance at September 30, 2017 with customary financial and other covenants under the Credit Facility, the Term Loans and the Company's fixed rate unsecured notes.

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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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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