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Debt | 9 Months Ended
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Sep. 30, 2017
Debt Disclosure [Abstract] |
Debt Disclosure [Text Block] | Note 4 – Debt We account for debt issuance costs under ASU 2015-03 which requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the gross carrying amount of that debt liability, consistent with debt discounts. Unamortized debt issuance costs of approximately $2.8 million and $3.1 million are included as an offset to the respective debt balances as of September 30, 2017 and December 31, 2016. As of September 30, 2017, we had total gross indebtedness of $487.7 million, including (i) $68.2 million of mortgage notes payable; (ii) $159.5 million of unsecured term loans; (iii) $260.0 million of senior unsecured notes; and (iv) $0 borrowings under our Credit Facility. Mortgage Notes Payable As of September 30, 2017, the Company had total gross mortgage indebtedness of $68.2 million which was collateralized by related real estate with an aggregate net book value of $89.1 million. Including mortgages that have been swapped to a fixed interest rate, the weighted average interest rate on the Company’s mortgage notes payable was 3.90%. Mortgages payable consisted of the following:
|  | September 30, 2017 |  | December 31, 2016 |
(not presented in thousands) |  | (in thousands) |
Note payable in monthly installments of interest only at LIBOR plus 160 basis points, swapped to a fixed rate of 2.49% with a balloon payment due April 4, 2018; collateralized by related real estate and tenants' leases |  | $ | 25,000 |  | $ | 25,000 |
Note payable in monthly installments of $153,838, including interest at 6.90% per annum, with the final monthly payment due January 2020; collateralized by related real estate and tenants’ leases |  |  | 3,968 |  |  | 5,114 |
Note payable in monthly installments of $23,004, including interest at 6.24% per annum, with a balloon payment of $2,781,819 due February 2020; collateralized by related real estate and tenant lease |  |  | 2,986 |  |  | 3,049 |
Note payable in monthly installments of interest only at 3.60% per annum, with a balloon payment due January 1, 2023; collateralized by related real estate and tenants' leases |  |  | 23,640 |  |  | 23,640 |
Note payable in monthly installments of $35,673, including interest at 5.01% per annum, with a balloon payment of $4,034,627 due September 2023; collateralized by related real estate and tenant lease |  |  | 5,173 |  |  | 5,294 |
Note payable in monthly installments of $91,675 including interest at 6.27% per annum, with a final monthly payment due July 2026; collateralized by related real estate and tenants’ leases |  |  | 7,447 |  |  | 7,910 |
Total principal |  |  | 68,214 |  |  | 70,007 |
Unamortized debt issuance costs |  |  | (756) |  |  | (940) |
Total |  | $ | 67,458 |  | $ | 69,067 |
Senior Unsecured Notes The following table presents the Senior Unsecured Notes balance net of unamortized debt issuance costs as of September 30, 2017, and December 31, 2016 (in thousands):
|  | September 30, 2017 |  | December 31, 2016 |
2025 Senior Unsecured Notes |  | $ | 50,000 |  | $ | 50,000 |
2027 Senior Unsecured Notes |  |  | 50,000 |  |  | 50,000 |
2028 Senior Unsecured Notes |  |  | 60,000 |  |  | 60,000 |
2029 Senior Unsecured Notes |  |  | 100,000 |  |  | - |
Total Principal |  |  | 260,000 |  |  | 160,000 |
Unamortized debt issuance costs |  |  | (888) |  |  | (824) |
Total |  | $ | 259,112 |  | $ | 159,176 |
In May 2015, the Company completed a private placement of $100.0 million principal amount of senior unsecured notes. The senior unsecured notes were sold in two series; $50.0 million of 4.16% notes due in May 2025 and $50.0 million of 4.26% notes due in May 2027. The weighted average term of the senior unsecured notes is 11 years and the weighted average interest rate is 4.21%. In July 2016, the Company completed a private placement of $60.0 million principal amount of senior unsecured notes. The senior unsecured notes bear a fixed interest rate of 4.42% per annum and mature in July 2028. In September 2017, the Company completed a private placement of $100.0 million principal amount of senior unsecured notes. The senior unsecured notes bear a fixed interest rate of 4.19% per annum and mature in September 2029. Unsecured Term Loan Facilities The following table presents the Unsecured Term Loans balance net of unamortized debt issuance costs as of September 30, 2017 and December 31, 2016 (in thousands):
|  | September 30, 2017 |  | December 31, 2016 |
2019 Term Loan |  | $ | 19,495 |  | $ | 20,044 |
2023 Term Loan |  |  | 40,000 |  |  | 40,000 |
2024 Term Loans |  |  | 100,000 |  |  | 100,000 |
Total Principal |  |  | 159,495 |  |  | 160,044 |
Unamortized debt issuance costs |  |  | (1,190) |  |  | (1,365) |
Total |  | $ | 158,305 |  | $ | 158,679 |
Debt Maturities The following table presents scheduled principal payments related to our debt as of September 30, 2017 (in thousands):
|  | Scheduled |  | Balloon |  |  |
|  | Principal |  | Payment |  | Total |
Remainder of 2017 |  | $ | 808 |  | $ | - |  | $ | 808 |
2018 |  |  | 3,337 |  |  | 25,000 |  |  | 28,337 |
2019 |  |  | 2,751 |  |  | 18,543 |  |  | 21,294 |
2020 |  |  | 1,092 |  |  | 2,775 |  |  | 3,867 |
2021 (1) |  |  | 998 |  |  | - |  |  | 998 |
Thereafter |  |  | 4,749 |  |  | 427,656 |  |  | 432,405 |
Total |  | $ | 13,735 |  | $ | 473,974 |  | $ | 487,709 |
| (1) | The balloon payment balance includes the balance outstanding under the Credit Facility as of September 30, 2017. The Credit Facility matures in January 2021, with options to extend the maturity for one year at the Company’s election, subject to certain conditions.
The amended and restated credit agreement, described below, extended the maturity dates of the $65.0 million unsecured term loan facility and $35.0 million unsecured term loan facility (together, the “2024 Term Loan Facilities”) to January 2024. In connection with entering into the amended and restated credit agreement, the prior notes evidencing the existing $65.0 million unsecured term loan facility and $35.0 million unsecured term loan facility were canceled and new notes evidencing the 2024 Term Loan Facilities were executed. Borrowings under the unsecured 2024 Term Loan Facilities bear interest at a variable LIBOR plus 1.65% to 2.35%, depending on the Company's leverage ratio. The Company utilized existing interest rate swaps to effectively fix the LIBOR rate (refer to Note 7 – Derivative Instruments and Hedging Activity). In July 2016, the Company completed a $40.0 million unsecured term loan facility that matures in July 2023 (the “2023 Term Loan”). Borrowings under the 2023 Term Loan are priced at LIBOR plus 165 to 225 basis points, depending on the Company’s leverage. The Company entered into an interest rate swap to fix LIBOR at 1.40% until maturity. As of September 30, 2017, $40.0 million was outstanding under the 2023 Term Loan, which is subject to an all-in interest rate of 3.05%. In August 2016, the Company entered into a $20.3 million unsecured amortizing term loan that matures in May 2019 (the “2019 Term Loan”). Borrowings under the 2019 Term Loan are priced at LIBOR plus 170 basis points. In order to fix LIBOR on the 2019 Term Loan at 1.92% until maturity, the Company had an interest rate swap agreement in place, which was assigned by the lender under the Mortgage Note to the 2019 Term Loan lender. As of September 30, 2017, $19.5 million was outstanding under the 2019 Term Loan bearing an all-in interest rate of 3.62%. Senior Unsecured Revolving Credit Facility In December 2016, the Company amended and restated the credit agreement that governs the Company's senior unsecured revolving credit facility and the Company's unsecured term loan facility to increase the aggregate borrowing capacity to $350.0 million. The agreement provides for a $250.0 million unsecured revolving credit facility, a $65.0 million unsecured term loan facility and a $35.0 million unsecured term loan facility (Referenced above as 2024 Term Loan Facilities). The unsecured revolving credit facility matures in January 2021 with options to extend the maturity date to January 2022. The 2024 Term Loan Facilities mature in January 2024. The Company has the ability to increase the aggregate borrowing capacity under the credit agreement up to $500.0 million, subject to lender approval. Borrowings under the revolving credit facility bear interest at LIBOR plus 1.30% to 1.95%, depending on the Company’s leverage ratio. Additionally, the Company is required to pay an unused commitment fee at an annual rate of 0.15% or 0.25% of the unused portion of the revolving credit facility, depending on the amount of borrowings outstanding. The credit agreement contains certain financial covenants, including a maximum leverage ratio, a minimum fixed charge coverage ratio, and a maximum percentage of secured debt to total asset value. As of September 30, 2017 and December 31, 2016, the Company had $0 and $14.0 million of outstanding borrowings under the revolving credit facility, respectively, bearing weighted average interest rates of approximately 2.6% and 1.9%, respectively. As of September 30, 2017, $250.0 million was available for borrowing under the revolving credit facility and the Company was in compliance with the credit agreement covenants. Concurrent with the amendment and restatement of the Company’s senior unsecured revolving credit facility, conforming changes were made to the 2023 Term Loan and 2019 Term Loan.

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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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