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v3.23.2

Notes Payable | 6 Months Ended
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Jun. 30, 2023
Notes Payable [Abstract] |
Notes Payable | 7. Notes Payable The following is a summary of our indebtedness:
(in millions) |  | June 30, 2023 |  | December 31, 2022
Commercial banks |  |  |  |
6.35% Term Loan, due 2024 |  | $ | 39.9 |  |  | $ | 39.8 |
5.95% Term Loan, due 2024 |  | 300.0 |  |  | 300.0 |
5.88% Unsecured revolving credit facility |  | 477.0 |  |  | 42.0 |
|  | $ | 816.9 |  |  | $ | 381.8 |
Senior unsecured notes |  |  |  |
5.07% Notes, due 2023 |  | — |  |  | 249.8 |
4.36% Notes, due 2024 |  | 249.9 |  |  | 249.7 |
3.68% Notes, due 2024 |  | 249.5 |  |  | 249.2 |
3.74% Notes, due 2028 |  | 398.4 |  |  | 398.3 |
3.67% Notes, due 2029 (1) |  | 595.8 |  |  | 595.5 |
2.91% Notes, due 2030 |  | 745.1 |  |  | 744.8 |
3.41% Notes, due 2049 |  | 296.8 |  |  | 296.8 |
|  | $ | 2,535.5 |  |  | $ | 2,784.1 |
Total unsecured notes payable |  | $ | 3,352.4 |  |  | $ | 3,165.9 |
Secured notes |  |  |  |
Master Credit Facilities |  |  |  |
3.78% - 4.04% Conventional Mortgage Notes, due 2026 - 2028 |  | $ | 291.3 |  |  | $ | 291.2 |
6.69% Variable Rate Notes, due 2026 |  | — |  |  | 166.2 |
6.99% Variable Rate Construction Note, due 2024 |  | — |  |  | 18.9 |
3.87% note, due 2028 |  | 38.7 |  |  | 38.7 |
Total secured notes payable |  | $ | 330.0 |  |  | $ | 515.0 |
Total notes payable (2) |  | $ | 3,682.4 |  |  | $ | 3,680.9 |
(1) The 2029 Notes have an effective annual interest rate of approximately 3.84% through June 2026, which includes the effect of a settled forward interest rate swap, and approximately 3.28% thereafter, for an all-in average effective rate of approximately 3.67%. (2) Unamortized debt discounts, debt issuance costs, and fair market value adjustments of $15.5 million and $18.0 million are included in notes payable as of June 30, 2023 and December 31, 2022, respectively. We have a $300 million unsecured term loan facility which matures in August 2024, with one option to extend the facility at our election to August 2025, and a $1.2 billion unsecured revolving credit facility which matures in August 2026, with two options to extend the facility at our election for two consecutive six-month periods and to expand the facility up to three times by up to an additional $500 million upon satisfaction of certain conditions. The interest rates on our unsecured revolving credit facility and term loan are based upon, at our option, (a) the daily or the one-, three-, or six-month Secured Overnight Financing Rate ("SOFR") plus, in each case, a spread based on our credit rating, or (b) a base rate equal to the higher of: (i) the Federal Funds Rate plus 0.50%, (ii) Bank of America, N.A.'s prime rate, (iii) Term SOFR plus 1.0%, and (iv) 1.0%. Advances under our unsecured revolving credit facility may be priced at the scheduled rates, or we may enter into bid rate loans with participating banks at rates below the scheduled rates. These bid rate loans have terms of 180 days or less and may not exceed the lesser of $600 million or the remaining amount available under our unsecured revolving credit facility. Our unsecured revolving credit facility and term loan are subject to customary financial covenants and limitations. We believe we are in compliance with all such financial covenants and limitations as of June 30, 2023 and through the date of this filing. Our unsecured revolving credit facility provides us with the ability to issue up to $50 million in letters of credit. While our issuance of letters of credit does not increase our borrowings outstanding under our unsecured revolving credit facility, it does reduce the amount available. At June 30, 2023, we had outstanding letters of credit totaling approximately $17.8 million, resulting in approximately $705.2 million available under our unsecured revolving credit facility. In May 2023, we utilized our unsecured revolving credit facility to retire our $185.2 million secured variable rate notes due in 2024 and 2026. As a result of the early repayments, we recorded a $2.5 million loss on early retirement of debt in our condensed consolidated statements of income and comprehensive income, which was comprised of approximately $1.7 million of prepayment penalties and fees and approximately $0.8 million for the write-off of applicable unamortized fair value adjustments. In June 2023, we utilized our unsecured revolving credit facility to repay the principal amount of our 5.07% senior unsecured note payable, which matured on June 15, 2023, for a total of $250.0 million, plus accrued interest. As a result of the acquisition of the Funds on April 1, 2022, we assumed secured mortgage loans and recorded an approximate $2.4 million fair value adjustment as a decrease to the note balances, which is being amortized over the respective debt terms as an increase to interest expense. Due to the repayment of the secured variable rate notes discussed above, approximately $0.8 million of the applicable unamortized fair value adjustment was written-off and expensed as part of the loss on the early retirement of debt. During the three and six months ended June 30, 2023, we also recorded amortization of the fair value adjustment of approximately $0.1 million and $0.3 million, respectively, and recorded approximately $0.1 million for each of the three and six months ended June 30, 2022. The remaining unamortized fair value adjustment at June 30, 2023 was approximately $0.9 million. We had outstanding floating rate debt of approximately $816.9 million and $274.9 million at June 30, 2023 and 2022, respectively. The weighted average interest rate on such debt was approximately 5.9% and 2.9% for the six months ended June 30, 2023 and 2022, respectively. Our indebtedness had a weighted average maturity of approximately 6.3 years at June 30, 2023. The table below is a summary of the maturity dates of our outstanding debt and principal amortizations, and the weighted average interest rates on such debt, at June 30, 2023:
(in millions) (1) |  | Amount (2) |  | Weighted Average Interest Rate (3)
Remainder of 2023 |  | $ | (1.4) |  |  | — | %
2024 |  | 537.6 |  |  | 4.2 |
2025 |  | 298.0 |  |  | 6.0 |
2026 |  | 22.1 |  |  | 4.0 |
2027 |  | 649.9 |  |  | 5.3 |
Thereafter |  | 2,176.2 |  |  | 3.4 |
Total |  | $ | 3,682.4 |  |  | 4.1 | %
(1)Includes all available extension options. (2)Includes amortization of debt discounts, debt issuance costs, and fair market value adjustments. (3)Includes the effects of the applicable settled forward interest rate swaps.

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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 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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