XML 46 R34.htm IDEA: XBRL DOCUMENT v3.23.3
MORTGAGE AND OTHER INDEBTEDNESS (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Schedules of Indebtedness
The following table summarizes the Company’s indebtedness as of September 30, 2023 and December 31, 2022 (in thousands):
September 30, 2023December 31, 2022
Mortgages payable$154,567 $233,621 
Senior unsecured notes1,829,635 1,924,635 
Unsecured term loans820,000 820,000 
Unsecured revolving line of credit39,000 — 
2,843,202 2,978,256 
Unamortized discounts and premiums, net35,721 44,362 
Unamortized debt issuance costs, net(10,095)(12,319)
Total mortgage and other indebtedness, net$2,868,828 $3,010,299 
The following table summarizes the Company’s mortgages payable (dollars in thousands):
September 30, 2023December 31, 2022
BalanceWeighted Average
Interest Rate		Weighted Average Years
to Maturity		BalanceWeighted Average
Interest Rate		Weighted Average Years
to Maturity
Fixed rate mortgages payable(1)
$136,967 5.09 %8.3$205,328 3.98 %1.4
Variable rate mortgage payable(2)
17,600 7.54 %3.828,293 5.96 %0.6
Total mortgages payable$154,567 $233,621 
(1)The fixed rate mortgages had interest rates ranging from 3.75% to 5.73% as of September 30, 2023 and December 31, 2022.
(2)During the three months ended September 30, 2023, the interest rate on the variable rate mortgage increased to Bloomberg Short Term Bank Yield Index (“BSBY”) plus 215 basis points from BSBY plus 160 basis points in conjunction with the July 2023 amendment of the loan agreement. The one-month BSBY rate was 5.39% and 4.36% as of September 30, 2023 and December 31, 2022, respectively.
The following table summarizes the Company’s senior unsecured notes and exchangeable senior notes (dollars in thousands):
September 30, 2023December 31, 2022
Maturity DateBalanceInterest RateBalanceInterest Rate
Senior notes – 4.23% due 2023
September 10, 2023$— — %$95,000 4.23 %
Senior notes – 4.58% due 2024
June 30, 2024149,635 4.58 %149,635 4.58 %
Senior notes – 4.00% due 2025
March 15, 2025350,000 4.00 %350,000 4.00 %
Senior notes – SOFR + 3.65% due 2025(1)
September 10, 202580,000 9.17 %80,000 8.41 %
Senior notes – 4.08% due 2026
September 30, 2026100,000 4.08 %100,000 4.08 %
Senior notes – 4.00% due 2026
October 1, 2026300,000 4.00 %300,000 4.00 %
Senior exchangeable notes – 0.75% due 2027
April 1, 2027175,000 0.75 %175,000 0.75 %
Senior notes – SOFR + 3.75% due 2027(2)
September 10, 202775,000 9.27 %75,000 8.51 %
Senior notes – 4.24% due 2028
December 28, 2028100,000 4.24 %100,000 4.24 %
Senior notes – 4.82% due 2029
June 28, 2029100,000 4.82 %100,000 4.82 %
Senior notes – 4.75% due 2030
September 15, 2030400,000 4.75 %400,000 4.75 %
Total senior unsecured notes$1,829,635 $1,924,635 
(1)On July 1, 2023, the fallback rate in the derivative agreement went into effect. As of September 30, 2023, $80,000 of 4.47% senior unsecured notes has been swapped to a variable rate of three-month Secured Overnight Financing Rate (“SOFR”) plus 3.65% through September 10, 2025. As of December 31, 2022, $80,000 of 4.47% senior unsecured notes had been swapped to a variable rate of three-month London Interbank Offered Rate (“LIBOR”) plus 3.65%.
(2)On July 1, 2023, the fallback rate in the derivative agreement went into effect. As of September 30, 2023, $75,000 of 4.57% senior unsecured notes has been swapped to a variable rate of three-month SOFR plus 3.75% through September 10, 2025. As of December 31, 2022, $75,000 of 4.57% senior unsecured notes had been swapped to a variable rate of three-month LIBOR plus 3.75%.
The following table summarizes the Company’s term loans and revolving line of credit (dollars in thousands):
September 30, 2023December 31, 2022
Maturity DateBalanceInterest RateBalanceInterest Rate
Unsecured term loan due 2024 – fixed rate(1)
July 17, 2024$120,000 2.68 %$120,000 2.68 %
Unsecured term loan due 2025 – fixed rate(2)
October 24, 2025250,000 5.09 %250,000 5.09 %
Unsecured term loan due 2026 – fixed rate(3)
July 17, 2026150,000 2.73 %150,000 2.73 %
Unsecured term loan due 2029 – fixed rate(4)
July 29, 2029300,000 4.05 %300,000 4.05 %
Total unsecured term loans$820,000 $820,000 
Unsecured credit facility revolving line of credit –
variable rate(5)
January 8, 2026$39,000 6.51 %$— 5.56 %
(1)$120,000 of SOFR-based variable rate debt has been swapped to a fixed rate of 1.58% plus a credit spread based on a ratings grid ranging from 0.80% to 1.65% through July 17, 2024. The applicable credit spread was 1.10% as of September 30, 2023 and December 31, 2022.
(2)$250,000 of SOFR-based variable rate debt has been swapped to a fixed rate of 5.09% through October 24, 2025. The maturity date of the term loan may be extended for up to three additional periods of one year each at the Operating Partnership’s option, subject to certain conditions.
(3)$150,000 of SOFR-based variable rate debt has been swapped to a fixed rate of 1.68% plus a credit spread based on a ratings grid ranging from 0.75% to 1.60% through July 17, 2026. The applicable credit spread was 1.05% as of September 30, 2023 and December 31, 2022.
(4)$300,000 of SOFR-based variable rate debt has been swapped to a fixed rate of 2.70% plus a credit spread based on a ratings grid ranging from 1.15% to 2.20% through November 22, 2023. The applicable credit spread was 1.35% as of September 30, 2023 and December 31, 2022.
(5)The revolving line of credit has two six-month extension options that the Company can exercise, at its election, subject to (i) customary representations and warranties, including, but not limited to, the absence of an event of default as defined in the unsecured credit agreement and (ii) payment of an extension fee equal to 0.075% of the revolving line of credit capacity.
Schedule of Weighted Average Interest Rates and Maturities
Consolidated indebtedness, including weighted average interest rates and weighted average maturities as of September 30, 2023, considering the impact of interest rate swaps, is summarized below (dollars in thousands):
Amount
Outstanding		RatioWeighted Average
Interest Rate		Weighted Average Years
to Maturity
Fixed rate debt(1)
$2,631,602 93 %4.01 %4.2
Variable rate debt(2)
211,600 7 %8.58 %3.1
Debt discounts, premiums and issuance costs, net25,626 N/AN/AN/A
Total$2,868,828 100 %4.35 %4.1
(1)Fixed rate debt includes the portion of variable rate debt that has been hedged by interest rate swaps. As of September 30, 2023, $820.0 million in variable rate debt is hedged to a fixed rate for a weighted average of 1.9 years.
(2)Variable rate debt includes the portion of fixed rate debt that has been hedged by interest rate swaps. As of September 30, 2023, $155.0 million in fixed rate debt is hedged to a floating rate for a weighted average of 1.9 years.
Schedule of Key Terms of Revolving Facility and Term Loans
The following table summarizes the key terms of the Revolving Facility as of September 30, 2023 (dollars in thousands):
Leverage-Based PricingInvestment Grade Pricing
Credit AgreementMaturity DateExtension OptionExtension FeeCredit SpreadFacility FeeCredit SpreadFacility FeeSOFR Adjustment
$1,100,000 unsecured revolving line of credit
1/8/2026
2 six-month
0.075%
1.05%–1.50%
0.15%–0.30%
0.725%–1.40%
0.125%–0.30%
0.10%
The following table summarizes the key terms of the unsecured term loans as of September 30, 2023 (dollars in thousands):
Unsecured Term Loans
Maturity DateLeverage-Based Pricing
Credit Spread		Investment Grade Pricing
Credit Spread		SOFR Adjustment
$120,000 unsecured term loan due 2024
7/17/2024
1.20% – 1.70%
0.80% – 1.65%
0.10%
$250,000 unsecured term loan due 2025
10/24/2025(1)
2.00% – 2.55%
2.00% – 2.50%
0.10%
$150,000 unsecured term loan due 2026
7/17/2026
1.20% – 1.70%
0.75% – 1.60%
0.10%
$300,000 unsecured term loan due 2029
7/29/2029N/A
1.15% – 2.20%
0.10%
(1)The maturity date may be extended for up to three additional periods of one year each at the Operating Partnership’s option, subject to certain conditions.
Schedule of Amortization of Debt Issuance Costs The amounts of such amortization included in the accompanying consolidated statements of operations and comprehensive income are as follows (in thousands):
 Nine Months Ended September 30,
20232022
Amortization of deferred leasing costs, lease intangibles and other$83,768 $117,177 
Amortization of above-market lease intangibles$9,305 $10,161 
The following amounts of amortization of debt issuance costs are included as a component of “Interest expense” in the accompanying consolidated statements of operations and comprehensive income (in thousands):
Nine Months Ended September 30,
20232022
Amortization of debt issuance costs$2,685 $2,169