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Debt and Line of Credit | 6 Months Ended
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Jun. 30, 2024
Debt Disclosure [Abstract] |
Debt and Line of Credit | 9. Debt and Line of Credit The following table sets forth certain information regarding debt, including premiums, discounts and deferred financing costs (in millions, except for statistical information):
| Carrying Amount |  | Weighted Average Years to Maturity |  | Weighted Average Interest Rates
| June 30, 2024 |  | December 31, 2023 |  | June 30, 2024 |  | December 31, 2023 |  | June 30, 2024 |  | December 31, 2023
Secured Debt |  |  |  |  |  |  |  |  |  |  |
Mortgage loans payable(1) | $ | 3,452.0 |  |  | $ | 3,478.9 |  |  | 8.7 |  | 9.2 |  | 3.995 | % |  | 3.994 | %
Secured borrowings on collateralized receivables(2) | 54.3 |  |  | 55.8 |  |  | 13.7 |  | 14.2 |  | 8.592 | % |  | 8.556 | %
Total Secured Debt | $ | 3,506.3 |  |  | $ | 3,534.7 |  |  |  |  |  |  |  |  |
Unsecured Debt |  |  |  |  |  |  |  |  |  |  |
Senior unsecured notes(3) | 2,674.6 |  |  | 2,177.5 |  |  | 6.5 |  | 7.5 |  | 3.778 | % |  | 3.375 | %
Line of credit and other debt(4) | 1,671.9 |  |  | 2,065.1 |  |  | 1.8 |  | 1.7 |  | 5.195 | % |  | 5.428 | %
Total Unsecured Debt | 4,346.5 |  |  | 4,242.6 |  |  |  |  |  |  |  |  |
Total Debt | $ | 7,852.8 |  |  | $ | 7,777.3 |  |  | 6.5 |  | 6.8 |  | 4.208 | % |  | 4.234 | %
(1) Balances at June 30, 2024 and December 31, 2023 include zero net debt premiums, as of each such date, and $15.6 million and $16.9 million of deferred financing costs, respectively. Weighted average interest rates include the impact of hedge activity. (2) Balances at June 30, 2024 and December 31, 2023 include fair value adjustments of $3.5 million and $1.9 million, respectively. (3) Balances at June 30, 2024 and December 31, 2023 include $6.7 million and $6.5 million of net debt discount, respectively, and $18.6 million and $16.0 million of deferred financing costs, respectively. Weighted average interest rates include the impact of hedge activity. (4) Balances at June 30, 2024 and December 31, 2023 include zero and $1.6 million of deferred financing costs, respectively. Weighted average interest rates include the impact of hedge activity. Secured Debt Mortgage term loans
During the six months ended June 30, 2024 and the year ended December 31, 2023, no mortgage term loans were repaid. During the six months ended June 30, 2024 we did not enter into any mortgage term loans. During the year ended December 31, 2023, we entered into the following mortgage term loans during the quarters presented below (in millions, except for statistical information):
Period |  | Loan Amount |  | Term (in years) |  | Interest Rate |  | Maturity Date
Three months ended December 31, 2023 |  | $ | 252.8 |  | (1) | 7 |  | 6.49 | % |  | November 1, 2030
Three months ended March 31, 2023 |  | $ | 85.0 |  | (2) | 3 |  | 5.0 | % |  | February 13, 2026
Three months ended March 31, 2023 |  | $ | 99.1 |  | (3) | 7 - 10 |  | 5.72 | % |  | April 1, 2030 - April 1, 2033
(1)Includes two newly encumbered properties. (2)Includes five existing encumbered properties. (3)Includes 22 existing encumbered properties. The mortgage term loans, which total $3.5 billion as of June 30, 2024, are secured by 156 properties comprised of 62,953 sites representing approximately $2.7 billion of net book value. Secured Borrowings on Collateralized Receivables Refer to Note 5, "Collateralized Receivables and Transfers of Financial Assets," for information on Secured borrowings on collateralized receivables. Unsecured Debt Senior Unsecured Notes The following table sets forth certain information regarding our outstanding senior unsecured notes (in millions, except for statistical information). All senior unsecured notes include interest payments on a semi-annual basis in arrears, and are recorded within the Unsecured debt line item on the Consolidated Balance Sheets.
|  |  |  | Carrying Amount
|  | Principal Amount |  | June 30, 2024 |  | December 31, 2023
5.5% notes, issued in January 2024 and due in January 2029(1) |  | $ | 500.0 |  |  | $ | 495.8 |  |  | $ | — |
5.7% notes, issued in January 2023 and due in January 2033 |  | 400.0 |  |  | 395.9 |  |  | 395.7
4.2% notes, issued in April 2022 and due in April 2032 |  | 600.0 |  |  | 592.8 |  |  | 592.6 |
2.3% notes, issued in October 2021 and due in November 2028 |  | 450.0 |  |  | 447.1 |  |  | 446.8 |
2.7% notes, issued in June 2021 and October 2021, and due in July 2031 |  | 750.0 |  |  | 743.0 |  |  | 742.4 |
Total |  | $ | 2,700.0 |  |  | $ | 2,674.6 |  |  | $ | 2,177.5 |
(1) In January 2024, the Operating Partnership issued $500.0 million of senior unsecured notes with an interest rate of 5.5% and a five-year term, due January 15, 2029 (the "2029 Notes"). Interest on the 2029 Notes is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2024. The net proceeds from the offering were $495.4 million, after deducting underwriters' discounts and offering expenses. We used the majority of the net proceeds to repay borrowings outstanding under our Senior Credit Facility. Line of Credit The Operating Partnership (as borrower), SUI (as guarantor), and certain lenders are parties to a credit agreement which governs our senior credit facility (the "Senior Credit Facility"). Prior to March 2024, the aggregate amount of our Senior Credit Facility was $4.2 billion with the ability to upsize the total borrowings by an additional $800.0 million, subject to certain conditions. The aggregate amount under the Senior Credit Facility consisted of the following: (a) a revolving loan in an amount up to $3.05 billion and (b) a term loan facility of $1.15 billion, with the ability to draw funds from the combined facilities in U.S. dollars, Pound sterling, Euros, Canadian dollars and Australian dollars, subject to certain limitations. The maturity date of the revolving term loan facility is April 7, 2026. At our option that maturity date may be extended two additional six-month periods. In March 2024, we terminated the term loan facility and settled the associated $1.1 billion of borrowings outstanding under the term loan by increasing our borrowings under the revolving loan of the Senior Credit Facility. By terminating the term loan, we reduced our aggregate borrowing capacity under the Senior Credit Facility to $3.05 billion under the revolving loan. During the six months ended June 30, 2024, we recognized a Loss on extinguishment of debt in our Consolidated Statements of Operations of $0.6 million related to the termination of the term loan facility. In June 2024, we amended the Senior Credit Facility to replace the Canadian Dollar Offered Rate with the Canadian Overnight Repo Rate Average ("CORRA") as the benchmark rate for borrowings denominated in Canadian Dollars, with no other significant changes to the terms of the Senior Credit Facility. The Senior Credit Facility bears interest at a floating rate based on the Adjusted Term Secured Overnight Financing Rate ("SOFR"), the Adjusted Eurocurrency Rate, the Australian Bank Bill Swap Bid Rate ("BBSY"), the Daily Sterling Overnight Index Average ("SONIA") Rate or the CORRA, as applicable, plus a margin, in all cases, which can range from 0.725% to 1.6%, subject to certain adjustments. As of June 30, 2024, the margins based on our credit ratings were 0.85% on the revolving loan facility. At the lenders' option, the Senior Credit Facility will become immediately due and payable upon an event of default under the Credit Facility Agreement. We had $1.7 billion and $944.1 million of borrowings outstanding under the revolving loan as of June 30, 2024 and December 31, 2023, respectively. We also had zero and $1.1 billion of borrowings outstanding under the term loan on the Senior Credit Facility as of June 30, 2024 and December 31, 2023, respectively. These balances are recorded in Unsecured debt on the Consolidated Balance Sheets. The Senior Credit Facility provides us with the ability to issue letters of credit. Our issuance of letters of credit does not increase our borrowings outstanding under the Senior Credit Facility, but does reduce the borrowing amount available. We had $11.2 million and $26.2 million of outstanding letters of credit at June 30, 2024 and December 31, 2023, respectively. Unsecured Term Loan In October 2019, we assumed a $58.0 million secured term loan facility related to an acquisition. The term loan initially had a four-year term ending October 29, 2023, and bore interest at a floating rate based on the Eurodollar rate or Prime rate plus a margin ranging from 1.2% to 2.05%. Effective July 1, 2021, we amended the agreement to release the associated collateral, extend the term loan facility maturity date to October 29, 2025 and adjust the interest rate margin to a range from 0.8% to 1.6%. In August 2022, we amended the unsecured term loan facility to transition from the Eurodollar rate to SOFR. During the three months ended June 30, 2024, we settled the term loan facility and had no balance outstanding as of June 30, 2024. The outstanding balance was $7.8 million at December 31, 2023 and was recorded in Unsecured debt on the Consolidated Balance Sheets. Covenants The mortgage term loans, senior unsecured notes and Senior Credit Facility are subject to various financial and other covenants. The most restrictive covenants are pursuant to (a) the terms of the Senior Credit Facility, which contains a maximum leverage ratio, minimum fixed charge coverage ratio and maximum secured leverage ratio, and (b) the terms of the senior unsecured notes, which contain a total debt to total assets ratio, secured debt to total assets ratio, consolidated income available for debt service to debt service ratio and unencumbered total asset value to unsecured debt ratio. At June 30, 2024, we were in compliance with all financial covenants. In addition, certain of our subsidiary borrowers own properties that secure loans. These subsidiaries are consolidated within our accompanying Consolidated Financial Statements, however, each of these subsidiaries' assets and credit are not available to satisfy our debts and other obligations, and any of our other subsidiaries or any other person or entity. Interest Capitalized We capitalize interest during the construction and development of our communities. Capitalized interest costs associated with construction and development activities during the three and six months ended June 30, 2024 and 2023 were as follows (in millions):
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2024 |  | June 30, 2023 |  | June 30, 2024 |  | June 30, 2023
Interest capitalized |  | $ | 2.2 |  |  | $ | 2.6 |  |  | $ | 4.9 |  |  | $ | 5.1 |

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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/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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