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Borrowings | 12 Months Ended
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Dec. 31, 2016
Borrowings [Abstract] |
BORROWINGS | BORROWINGS The weighted average interest rate at December 31, 2016 for the $4.50 billion of debt outstanding was 3.5%, compared to the weighted average interest rate of 3.7% on $3.43 billion of debt outstanding at December 31, 2015. Our debt consists of an unsecured credit facility, unsecured term loans, senior unsecured notes, a secured credit facility with Fannie Mae, and secured property mortgages. We utilize fixed rate borrowings, interest rate swaps, and interest rate caps to manage our current and future interest rate risk. More details on our borrowings can be found in the schedules presented later in this section. At December 31, 2016, we had $2.7 billion of senior unsecured notes and term loans fixed at an average interest rate of 3.7% and a $1.0 billion variable rate credit facility with an average interest rate of 1.6% with $490.0 million borrowed at December 31, 2016. Additionally, we had $110.0 million of secured variable rate debt outstanding at an average interest rate of 1.1%, $50.0 million of capped secured variable rate debt at an average interest rate of 1.1%. The interest rate on all other secured debt, totaling $1.1 billion, was hedged or fixed at an average interest rate of 3.9%. Unsecured Revolving Credit Facility We maintain a $1.0 billion unsecured credit facility with sixteen banks led by KeyBank National Association, or the KeyBank Facility. The KeyBank Facility includes an expansion option up to $1.5 billion. The KeyBank Facility bears an interest rate of LIBOR plus a spread of 0.85% to 1.55% based on an investment grade pricing grid and is currently bearing interest at 1.64%. The KeyBank Facility expires in April 2020 with an option to extend for an additional six months. At December 31, 2016, we had $490.0 million actually borrowed under this facility, and another approximately $3.3 million of the facility used to support letters of credit. Unsecured Term Loans We also maintain four term loans with a syndicate of banks, one led by KeyBank, two by Wells Fargo, and one by US Bank, respectively. The KeyBank term loan has a balance of $150.0 million, matures in 2021, and has a variable interest rate of LIBOR plus a spread of 0.90% to 1.75% based on our credit ratings. The Wells Fargo term loans have balances of $250.0 million and $300.0 million, mature in 2018 and 2022, and have variable interest rates of LIBOR plus a spread of 0.90% to 1.90% and 0.90% to 1.75%, respectively. The US Bank term loan has a balance of $150.0 million, matures in 2020, and has a variable interest rate of LIBOR plus a spread of 0.90% to 1.90%. Senior Unsecured Notes As of December 31, 2016, we had approximately $1.6 billion of publicly issued bonds and $310.0 million of private placement notes. These senior unsecured notes are longer term in nature and usually mature within five to twelve years, averaging 6.4 years remaining until maturity as of December 31, 2016. As part of the Merger on December 1, 2016, we assumed two publicly issued bonds, one of $250.0 million and one of $150.0 million, or $250.0 million Post Bond and $150.0 million Post Bond, respectively. The $250.0 million Post Bond matures December 1, 2022 and has an interest rate of 3.375% per annum with interest due on June 1 and December 1 of each year. The $150.0 million Post Bond matures on October 15, 2017 and has an interest rate of 4.75% per annum with interest due on April 15 and October 15 of each year. Both bonds are general unsecured senior obligations of the Operating Partnership and rank equally in right of payment with all other senior unsecured indebtedness of the Operating Partnership. The carrying values of the $250.0 million Post Bond and the $150.0 million Post Bond were adjusted down $2.3 million and up $2.6 million, respectively, to reflect fair market values at the date of assumption. There were no additional costs capitalized to assume these bonds. Secured Property Mortgages At December 31, 2016, we had $1.1 billion of fixed rate conventional property mortgages with an average interest rate of 3.9% and an average maturity in 2019. On February 1, 2016, we paid off a $13.4 million mortgage associated the Colonial Village at Matthews apartment community. The loan was scheduled for maturity in March 2016. On March 1, 2016, we paid off a $20.2 million mortgage associated with the Verandas at Southwood apartment community. The payoff was a scheduled maturity of the loan. On October 31, 2016, we paid off a $28.9 million mortgage associated with the Legacy at Western Oaks apartment community. We recorded a $0.1M gain on debt extinguishment due to paying off the mortgage prior to its scheduled maturity in February 2017 . As part of the Merger on December 1, 2016, we assumed $186.7 million of mortgages associated with five properties, or the Post Mortgages. The carrying value of the Post Mortgages was adjusted up by $8.6 million to reflect fair market values. These mortgages mature February 1, 2019 and have an interest rate of 5.99%. There were no additional costs incurred to transfer ownership. In addition to these payoffs, we have paid $8.4 million associated with property mortgage principal amortizations during the year ended December 31, 2016. Secured Credit Facility We maintain a $160.0 million secured credit facility with Prudential Mortgage Capital, which is credit enhanced by Fannie Mae, or Fannie Mae Facility. The Fannie Mae Facility has maturities from 2017 through 2018. Borrowings under the Fannie Mae Facility totaled $160.0 million at December 31, 2016, all of which was variable rate at an average rate of 1.1%. The available borrowing capacity at December 31, 2016 was $160.0 million. Guarantees MAA fully and unconditionally guarantees the following debt incurred by the Operating Partnership:
• | $160.0 million of the Fannie Mae Facility, all of which has been borrowed as of December 31, 2016; and
• | $310.0 million of the privately placed senior unsecured notes, all of which has been borrowed as of December 31, 2016.
Total Outstanding Debt The following table summarizes our indebtedness at December 31, 2016, (dollars in thousands):
| Borrowed Balance |  | Effective Rate |  | Contract Maturity
Fixed Rate Secured Debt |  |  |  |  |  |  |
Individual property mortgages | $ | 1,128,284 |  |  | 3.9 | % |  | 8/11/2019
Total fixed rate secured debt | 1,128,284 |  |  | 3.9 | % |  | 8/11/2019
Variable Rate Secured Debt (1) |  |  |  |  |
Fannie Mae conventional credit facilities | 160,000 |  |  | 1.1 | % |  | 6/1/2018
Total variable rate secured debt | 160,000 |  |  | 1.1 | % |  | 6/1/2018
Fair market value adjustments and debt issuance costs | 30,804 |  |  |  |  |  |
Total Secured Debt | $ | 1,319,088 |  |  | 3.5 | % |  | 6/16/2019
Unsecured Debt |  |  |  |  |
Variable rate credit facility | 490,000 |  |  | 1.6 | % |  | 4/15/2020
Term loan fixed with swaps | 850,000 |  |  | 3.1 | % |  | 11/10/2017
Fixed rate bonds | 1,860,000 |  |  | 4.1 | % |  | 5/29/2023
Fair market value adjustments, debt issuance costs and discounts | (19,376 | ) |  |  |  |  |
Total Unsecured Debt | $ | 3,180,624 |  |  | 3.4 | % |  | 6/7/2021
Total Outstanding Debt | $ | 4,499,712 |  |  | 3.5 | % |  | 11/8/2020
(1) Includes capped balances The following table summarizes interest rate ranges, maturity and balance of our indebtedness, net of fair market value adjustments, debt issuance costs and discounts, at December 31, 2016 and the balance of our indebtedness, net of fair market value adjustments, debt issuance costs and discounts, at December 31, 2015 (dollars in millions):
|  | At December 31, 2016 |  |
|  | Actual Interest Rates |  | Current Average Interest Rate |  | Maturity |  | Balance |  | Balance at December 31, 2015
Fixed Rate: |  |  |  |  |  |  |  |  |  |  |  |
Secured |  | 3.00 - 5.49% |  | 3.92% |  | 2017-2025 |  | $ | 1,128.3 |  |  | $ | 1,062.9 |
Unsecured |  | 3.15 - 5.57% |  | 4.06% |  | 2017-2025 |  | 1,860.0 |  |  | 1,535.2 |
Interest rate swaps |  | 2.63 - 6.63% |  | 2.80% |  | 2017-2018 |  | 850.0 |  |  | 550.0 |
|  |  |  |  |  |  |  | $ | 3,838.3 |  |  | $ | 3,148.1 |
Variable Rate: (1) |  |  |  |  |  |  |  |  |  |  |  |
Secured |  | 1.08% |  | 1.08% |  | 2017 |  | 110.0 |  |  | 65.0 |
Secured interest rate caps |  | 1.08% |  | 1.08% |  | 2017 |  | 50.0 |  |  | 125.0 |
Unsecured |  | 1.65% |  | 1.65% |  | 2020 |  | 490.0 |  |  | 75.0 |
|  |  |  |  |  |  |  | $ | 650.0 |  |  | $ | 265.0 |
Fair market value adjustments, debt issuance costs and discounts |  |  |  | $ | 11.4 |  |  | $ | 14.5 |
|  |  |  |  |  |  |  | $ | 4,499.7 |  |  | $ | 3,427.6 |
(1) Amounts are adjusted to reflect interest rate swap and cap agreements in effect at December 31, 2016, and 2015, respectively, which results in us paying fixed interest payments over the terms of the interest rate swaps and on changes in interest rates above the strike rate of the cap. Rates and maturities for capped balances are for the underlying debt, unless the strike rate has been reached. The following table includes scheduled principal repayments on the borrowings at December 31, 2016, as well as the amortization of the fair market value of debt assumed along with debt discounts and issuance costs (dollars in thousands):
Year | Amortization |  | Maturities |  | Total
2017 | $ | 26,110 |  |  | $ | 277,525 |  |  | $ | 303,635 |
2018 | 21,525 |  |  | 465,429 |  |  | 486,954 |
2019 | 6,778 |  |  | 719,142 |  |  | 725,920 |
2020 | 2,768 |  |  | 792,456 |  |  | 795,224 |
2021 | (677 | ) |  | 340,618 |  |  | 339,941 |
Thereafter | (1,350 | ) |  | 1,849,388 |  |  | 1,848,038 |
| $ | 55,154 |  |  | $ | 4,444,558 |  |  | $ | 4,499,712 |

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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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