NOTE 4: Indebtedness

The following tables contains summary information concerning our indebtedness as of March 31, 2016:

Debt:	Outstanding Principal		Unamortized Discount and Debt Issuance Costs			Carrying Amount		Type	Weighted Average Rate		Weighted Average Maturity (in years)
Secured credit facility (1)	$	324,977	$	(4,122	)	$	320,855	Floating		2.9%		2.5
Bridge term loan (2)		90,216	$	(939	)		89,277	Floating		5.4%		0.5
Mortgages-Fixed rate		495,253		(3,124	)		492,129	Fixed		3.8%		7.2
Mortgages-Floating rate		38,075		-			38,075	Floating		2.8%		5.1
Total Debt	$	948,521	$	(8,185	)	$	940,336			3.6%		4.9

(1)

The secured credit facility total capacity is $325.0 million, of which $325.0 million was outstanding as of March 31, 2016.

(2)

The bridge term loan may be extended by 6 months at our option. If extended, the maturity date would be March 2017.

	Original maturities on or before December 31,
Debt:	2016		2017		2018		2019		2020		Thereafter
Secured credit facility	$	-	$	-	$	324,977	$	-	$	-	$	-
Bridge term loan (1)		90,216		-		-		-		-		-
Mortgages-Fixed rate		911		2,825		3,549		3,834		5,920		478,214
Mortgages-Floating rate		-		-		-		-		-		38,075
Total	$	91,127	$	2,825	$	328,526	$	3,834	$	5,920	$	516,289

(1)

The bridge term loan may be extended by 6 months at our option. If extended, the maturity date would be March 2017.

As of March 31, 2016 we were in compliance with all financial covenants contained in our indebtedness.

The following tables contains summary information concerning our indebtedness as of December 31, 2015:

Debt:	Outstanding Principal		Unamortized Discount and Debt Issuance Costs			Carrying Amount		Type	Rate		Weighted Average Maturity (in years)
Secured credit facility (1)	$	271,500	$	(4,345	)	$	267,155	Floating		2.9%		2.7
Bridge term loan (2)		120,000	$	(1,582	)		118,418	Floating		5.4%		0.7
Mortgages-Fixed rate		545,956		(2,993	)		542,963	Fixed		3.8%		6.9
Mortgages-Floating rate		38,075		-			38,075	Floating		2.8%		5.4
Total Debt	$	975,531	$	(8,920	)	$	966,611			3.7%		4.9

(1)

The secured credit facility total capacity was $325.0 million, of which $271.5 million was outstanding as of December 31, 2015.

(2)

The bridge term loan may be extended by 6 months at our option. If extended, the maturity date would be March 2017.

The weighted average interest rate of our mortgage indebtedness was 3.7% as of March 31, 2016. As of March 31, 2016 and December 31, 2015, RAIT held $38,075 and $38,075 of our mortgage indebtedness, respectively. For the three months ended March 31, 2016 and March 31, 2015, we incurred approximately $265 and $238 of interest expense related to the RAIT indebtedness, respectively.

Secured Credit Facility

On September 17, 2015, IROP entered into a credit agreement with KeyBank with respect to a $325 million senior secured credit facility, or the KeyBank senior facility, which will mature on September 17, 2018. The KeyBank senior facility is available for additional loans, may be increased to $450.0 million and/or extended for two 12-month terms. At March 31, 2016, amounts outstanding under the KeyBank secured facility bear interest at 245 basis points over 1-month LIBOR.

On September 17, 2015, IROP entered into a credit agreement with respect to a $120 million senior interim term loan facility, or the KeyBank interim facility, which will mature on September 16, 2016. The KeyBank interim facility may be extended for a six-month term. The KeyBank interim facility requires monthly payments of interest only. IROP was required to reduce the principal amount outstanding under the KeyBank interim facility to no greater than $100.0 million within six months of closing and must apply 100% of all net proceeds from equity issuances, sales of assets, or refinancing of assets towards repaying the KeyBank interim facility. At March 31, 2016, the KeyBank interim facility bears interest at 500 basis points over 1-month LIBOR.

In January and February of 2016, IROP repaid $23,784 of the KeyBank interim facility subsequent to two property dispositions.

In March of 2016, IROP drew down $8,000 on the KeyBank senior facility, which was used to repay $6,000 of the KeyBank interim facility.

In March of 2016, IROP drew down $45,476 on the KeyBank senior facility, which was used to satisfy the existing mortgages and closing costs relating to the Oklahoma City portfolio of properties we acquired in 2014.

In April of 2016, IROP repaid $11,600 of the KeyBank interim facility subsequent to a property disposition.

In May of 2016, IROP repaid $18,400 of the KeyBank interim facility subsequent to a property disposition.

Mortgages-Fixed Rate

In February of 2016, we repaid $6,659 of mortgage indebtedness as part of a property disposition.

Mortgages-Floating Rate

In April of 2016, we repaid $10,575 of mortgage indebtedness as part of a property disposition. This indebtedness was held by RAIT as of March 31, 2016.

In May of 2016, we repaid $27,500 of mortgage indebtedness as part of a property disposition. This indebtedness was held by RAIT as of March 31, 2016.