The following is a summary of our secured and unsecured debt at June 30, 2021 and December 31, 2020 (dollars in thousands):

For purposes of classification of the above table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Company having effectively established a fixed interest rate for the underlying debt instrument.

Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. As of June 30, 2021, secured debt encumbered $1.7 billion or 12.6% of UDR’s total real estate owned based upon gross book value ($11.9 billion or 87.4% of UDR’s real estate owned based on gross book value is unencumbered).

During the six months ended June 30, 2021, the Company assumed three fixed rate mortgage notes payable with an aggregate outstanding balance of $183.3 million and a fair value of $201.3 million in connection with the acquisition of three operating properties, which carry a weighted average interest rate of 3.93%. (see Note 3, Real Estate Owned).

The Company will from time to time acquire properties subject to fixed rate debt instruments. In those situations, the Company records the debt at its estimated fair value and amortizes any difference between the fair value and par value to interest expense over the life of the underlying debt instrument.

(b) During the three months ended June 30, 2021 and 2020, the Company had $1.0 million and $2.5 million, respectively, and during the six months ended June 30, 2021 and 2020, the Company had $1.7 million and $5.1 million, respectively, of amortization of the fair market adjustment of debt assumed in the acquisition of properties inclusive of its fixed rate mortgage notes payable, which was included in Interest expense on the Consolidated Statements of Operations. The unamortized fair market adjustment was a net premium of $29.2 million and $12.9 million at June 30, 2021 and December 31, 2020, respectively.

(c) The variable rate mortgage note payable for $27.0 million secures a tax-exempt housing bond issue that matures in March 2032. Interest on this note is payable in monthly installments. As of June 30, 2021, the variable interest rate on the mortgage note was 0.73%.

(d) The Company has a $1.1 billion unsecured revolving credit facility (the “Revolving Credit Facility”) and a $350.0 million unsecured term loan (the “Term Loan”). The credit agreement for these facilities (the “Credit Agreement”) allows the total commitments under the Revolving Credit Facility and the total borrowings under the Term Loan to be increased to an aggregate maximum amount of up to $2.0 billion, subject to certain conditions, including obtaining commitments from one or more lenders. The Revolving Credit Facility has a scheduled maturity date of January 31, 2023, with two six-month extension options, subject to certain conditions. The Term Loan has a scheduled maturity date of September 30, 2023.

Based on the Company’s current credit rating, the Revolving Credit Facility has an interest rate equal to LIBOR plus a margin of 82.5 basis points and a facility fee of 15 basis points, and the Term Loan has an interest rate equal to LIBOR plus a margin of 90 basis points. Depending on the Company’s credit rating, the margin under the Revolving Credit Facility ranges from 75 to 145 basis points, the facility fee ranges from 10 to 30 basis points, and the margin under the Term Loan ranges from 80 to 165 basis points.

In November 2020, the Company entered into three interest rate swaps, which became effective in January 2021, to hedge against interest rate risk on the Term Loan until July 2022. The all-in weighted average interest rate, inclusive of the impact of the interest rate swaps, was 1.07%.

The Credit Agreement contains customary representations and warranties and financial and other affirmative and negative covenants. The Credit Agreement also includes customary events of default, in certain cases subject to customary periods to cure. The occurrence of an event of default, following the applicable cure period, would permit the

lenders to, among other things, declare the unpaid principal, accrued and unpaid interest and all other amounts payable under the Credit Agreement to be immediately due and payable.

The following is a summary of short-term bank borrowings under the Revolving Credit Facility at June 30, 2021 and December 31, 2020 (dollars in thousands):


	June 30,			December 31,
	2021			2020
Total revolving credit facility	$	1,100,000		$	1,100,000
Borrowings outstanding at end of period (1)		—			—
Weighted average daily borrowings during the period ended		—			42,186
Maximum daily borrowings during the period ended		—			375,000
Weighted average interest rate during the period ended		—	%		1.4	%
Interest rate at end of the period		—	%		—	%

(1)	Excludes $2.6 million and $2.8 million of letters of credit at June 30, 2021 and December 31, 2020, respectively.

(e) The Company has an unsecured commercial paper program. Under the terms of the program, the Company may issue unsecured commercial paper up to a maximum aggregate amount outstanding of $500.0 million. The notes are sold under customary terms in the United States commercial paper market and rank pari passu with all of the Company’s other unsecured indebtedness. The notes are fully and unconditionally guaranteed by the Operating Partnership.

In July 2021, the maximum aggregate amount was increased to $700.0 million.

The following is a summary of short-term bank borrowings under the unsecured commercial paper program at June 30, 2021 and December 31, 2020 (dollars in thousands):


	June 30,			December 31,
	2021			2020
Total unsecured commercial paper program	$	500,000		$	500,000
Borrowings outstanding at end of period		470,000			190,000
Weighted average daily borrowings during the period ended		278,177			227,090
Maximum daily borrowings during the period ended		470,000			500,000
Weighted average interest rate during the period ended		0.3	%		0.9	%
Interest rate at end of the period		0.3	%		0.3	%

In July 2021, the entire $470.0 million of outstanding unsecured commercial paper as of June 30, 2021 was repaid at maturity with additional proceeds of unsecured commercial paper with maturity dates in August 2021.

(f) The Company has a working capital credit facility, which provides for a $75.0 million unsecured revolving credit facility (the “Working Capital Credit Facility”) with a scheduled maturity date of January 14, 2022. Based on the Company’s current credit rating, the Working Capital Credit Facility has an interest rate equal to LIBOR plus a margin of 82.5 basis points. Depending on the Company’s credit rating, the margin ranges from 75 to 145 basis points.

The following is a summary of short-term bank borrowings under the Working Capital Credit Facility at June 30, 2021 and December 31, 2020 (dollars in thousands):


	June 30,			December 31,
	2021			2020
Total working capital credit facility	$	75,000		$	75,000
Borrowings outstanding at end of period		27,318			28,024
Weighted average daily borrowings during the period ended		8,839			20,132
Maximum daily borrowings during the period ended		39,503			54,974
Weighted average interest rate during the period ended		0.9	%		1.4	%
Interest rate at end of the period		0.9	%		1.0	%

(g) In February 2021, the Company redeemed all of its $300.0 million 4.00% senior unsecured medium-term notes due October 2025 (the “2025 Notes”) (plus the make-whole amount and accrued and unpaid interest). The Company incurred extinguishment costs of $42.0 million during the six months ended June 30, 2021, which was included in Interest expense on the Consolidated Statements of Operations.

(h) The Company previously entered into forward starting interest rate swaps to hedge against interest rate risk on $100.0 million of this debt. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 2.89%

(i) The Company previously entered into forward starting interest rate swaps to hedge against interest rate risk on $200.0 million of this debt. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 4.03%.

(j) The Company previously entered into forward starting interest rate swaps to hedge against interest rate risk on $150.0 million of the initial $300.0 million issued. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 4.27%.

(k) The Company previously entered into forward starting interest rate swaps and treasury lock to hedge against the interest rate risk of this debt. The all-in weighted average interest rate, inclusive of the impact of the forward starting swaps and treasury locks, was 3.32%.

(l) The Company entered into a treasury lock agreement to hedge against interest rate risk on $150.0 million of this debt. The all-in weighted average interest rate, inclusive of the impact of the treasury lock, was 3.01%.

(m) In February 2021, the Company issued $300.0 million of 2.10% senior unsecured medium-term notes due June 15, 2033. The notes were priced at 99.592% of the principal amount of the notes. The Company used the net proceeds to redeem its 2025 Notes (see footnote (g) above).

(n) The Company previously entered into forward starting interest rate swaps to hedge against the interest rate risk of this debt. The all-in weighted average interest rate, inclusive of the impact of these interest rate swaps, was 3.13%.

(o) The Operating Partnership is the guarantor of this debt.

The aggregate maturities, including amortizing principal payments on secured and unsecured debt, of total debt for the next ten calendar years subsequent to June 30, 2021 are as follows (dollars in thousands):


	Total Fixed		Total Variable		Total		Total			Total
Year	Secured Debt		Secured Debt		Secured Debt		Unsecured Debt			Debt
2021	$	555	$	—	$	555	$	470,000	(a)	$	470,555
2022		1,140		—		1,140		27,318			28,458
2023		1,242		—		1,242		350,000			351,242
2024		96,747		—		96,747		15,644			112,391
2025		174,793		—		174,793		—			174,793
2026		52,744		—		52,744		300,000			352,744
2027		2,860		—		2,860		300,000			302,860
2028		162,310		—		162,310		300,000			462,310
2029		191,986		—		191,986		300,000			491,986
2030		162,010		—		162,010		600,000			762,010
Thereafter		160,930		27,000		187,930		1,750,000			1,937,930
Subtotal		1,007,317		27,000		1,034,317		4,412,962			5,447,279
Non-cash (b)		25,660		(64)		25,596		(20,768)			4,828
Total	$	1,032,977	$	26,936	$	1,059,913	$	4,392,194		$	5,452,107

(a)	All unsecured debt due in the remainder of 2021 is related to the Company’s commercial paper program.

(b)

Includes the unamortized balance of fair market value adjustments, premiums/discounts and deferred financing costs. The Company amortized $1.2 million and $1.1 million, respectively, during the three months ended June 30, 2021 and 2020, and $2.4 million and $2.1 million, respectively, during the six months ended June 30, 2021 and 2020, of deferred financing costs into Interest expense.

We were in compliance with the covenants of our debt instruments at June 30, 2021.