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Indebtedness | 12 Months Ended
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Dec. 31, 2018
Debt Disclosure [Abstract] |
Indebtedness | NOTE 4: Indebtedness The following tables contains summary information concerning our indebtedness as of December 31, 2018:
Debt: |  | Outstanding Principal |  |  | Unamortized Discount and Debt Issuance Costs |  |  | Carrying Amount |  |  | Type |  | Weighted Average Rate |  |  | Weighted Average Maturity (in years) |
Unsecured credit facility (1) |  | $ | 155,743 |  |  | $ | (1,760 | ) |  | $ | 153,983 |  |  | Floating |  | 3.9% |  |  |  | 2.7 |
Unsecured term loans |  |  | 250,000 |  |  |  | (1,620 | ) |  |  | 248,380 |  |  | Floating |  | 4.0% |  |  |  | 5.4 |
Mortgages |  |  | 585,672 |  |  |  | (2,547 | ) |  |  | 583,125 |  |  | Fixed |  | 3.8% |  |  |  | 5.1 |
Total Debt |  | $ | 991,415 |  |  | $ | (5,927 | ) |  | $ | 985,488 |  |  |  |  | 3.9% |  |  |  | 4.8 |
| (1) | The unsecured credit facility total capacity is $300,000, of which $155,743 was outstanding as of December 31, 2018.
|  | Original maturities on or before December 31, |
Debt: |  | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2022 |  |  | 2023 |  |  | Thereafter |
Unsecured credit facility |  | $ | - |  |  | $ | - |  |  | $ | 105,743 |  |  | $ | 50,000 |  |  | $ | - |  |  | $ | - |
Unsecured term loans |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 250,000 |
Mortgages |  | $ | 4,950 |  |  | $ | 8,135 |  |  | $ | 76,033 |  |  | $ | 70,700 |  |  | $ | 107,203 |  |  | $ | 318,651 |
Total |  | $ | 4,950 |  |  | $ | 8,135 |  |  | $ | 181,776 |  |  | $ | 120,700 |  |  | $ | 107,203 |  |  | $ | 568,651 |
As of December 31, 2018 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, 2017:
Debt: |  | Outstanding Principal |  |  | Unamortized Discount and Debt Issuance Costs |  |  | Carrying Amount |  |  | Type |  | Weighted Average Rate |  |  | Weighted Average Maturity (in years) |
Unsecured credit facility (1) |  | $ | 104,005 |  |  | $ | (2,376 | ) |  | $ | 101,629 |  |  | Floating |  | 3.0% |  |  |  | 3.8 |
Unsecured Term loans |  |  | 100,000 |  |  |  | (895 | ) |  |  | 99,105 |  |  | Floating |  | 3.2% |  |  |  | 6.9 |
Mortgages |  |  | 580,635 |  |  |  | (2,927 | ) |  |  | 577,708 |  |  | Fixed |  | 3.7% |  |  |  | 5.8 |
Total Debt |  | $ | 784,640 |  |  | $ | (6,198 | ) |  | $ | 778,442 |  |  |  |  | 3.6% |  |  |  | 5.7 |
| (1) | The secured credit facility total capacity was $300,000, of which $104,005 was outstanding as of December 31, 2017.
Credit Facility On September 17, 2015, we entered into a credit agreement with KeyBank National Association (“KeyBank”) with respect to a $325,000 senior secured credit facility (the “Secured Credit Facility”). We incurred upfront costs of $4,722 associated with this facility that were capitalized as deferred financing costs. The Secured Credit Facility consisted of a revolving line of credit in an amount of up to $125,000 and a term loan in an amount of no less than $200,000. On December 21, 2016, we entered into an increase agreement with KeyBank which amended the terms of the previous Secured Credit Facility. The amended agreement increased the revolving line of credit to $172,500, which reflected the conversion of a portion of the term loan line of credit, which had previously been repaid and was therefore unavailable for re-borrowing, into availability under the revolving line of credit. The amended revised Secured Credit Facility had a total capacity was $312,500. The other features of the facility remained the same. On May 1, 2017, we entered into a $300,000 unsecured credit facility (the “Unsecured Credit Facility), refinancing and terminating the previous Secured Credit Facility. The Unsecured Credit Facility is comprised of a $50,000 term loan and a revolving commitment of up to $250,000. Additionally, we have the right to increase the aggregate amount of the Unsecured Credit Facility to up to $500,000. The maturity date on the new term loan is May 1, 2022. The maturity date on borrowings outstanding under the revolving commitment is May 1, 2021, subject to our option to extend the revolving commitment for two additional 6-month periods under certain circumstances. We may prepay the Unsecured Credit Facility, in whole or in part, at any time without prepayment fee or penalty, subject to the payment of any breakage costs associated with LIBOR borrowings and certain other conditions as set forth in the loan agreement. At our option, borrowings under the Unsecured Credit Facility will bear interest at a rate equal to either (i) the 1-month LIBOR rate plus a margin of 130 to 220 basis points, or (ii) a base rate plus a margin of 30 to 120 basis points. The applicable margin is determined based upon our total consolidated leverage ratio. In addition, we pay a fee of either 15 basis points (if greater than or equal to 50% of the revolver is used) or 25 basis points (if less than 50% of the revolver is used) on the unused portion of the revolver. The Unsecured Credit Facility requires regular interest only payments. We recognized the refinance as a partial extinguishment of our prior Secured Credit Facility and recognized a loss on extinguishment of debt of $572. In addition to certain negative covenants, our Unsecured Credit Facility with KeyBank has financial covenants that require us to (i) maintain a consolidated leverage ratio below thresholds described in the debt agreement, (ii) maintain a minimum consolidated fixed charge coverage ratio, (iii) maintain a minimum consolidated tangible net worth, and (iv) maintain a minimum liquidity amount. Additionally, the covenants (i) limit (a) the amount of distributions that IRT can make to a percentage of Funds from Operations (as such term is described in the debt agreement), (b) the amount of recourse indebtedness that may be incurred by us, and (c) the amount of unhedged variable rate indebtedness that may be incurred by us, and (ii) require us to maintain a pool of unencumbered properties with an occupancy level of not less than 85%. In January 2019, we drew down $14,000 on the Unsecured Credit Facility. Term Loans On September 17, 2015, we entered into a credit agreement with KeyBank with respect to a $120,000 senior interim term loan facility (“Interim Facility”). We incurred upfront deferred costs of $2,092 associated with this Interim Facility. On June 24, 2016, the Interim Facility was amended to replace the Interim Facility with a $40,000 senior secured term loan. Upon entering into the senior secured term loan, we borrowed $40,000, using $416 to pay closing costs and $33,512 to repay the remaining balance under the Interim Facility. The maturity date of the senior secured term loan was September 17, 2018, subject to acceleration in the event of customary events of default. The term loan required monthly interest only payments. The senior secured term loan was repaid in October 2016. On November 20, 2017, we entered into a loan agreement for a $100,000 unsecured term loan that will mature in November 2024. We incurred upfront deferred costs of $917 associated with this facility. The unsecured term loan requires monthly interest only payments. The interest rate on the unsecured term loan is LIBOR plus a spread of 1.60% - 2.50% based on our consolidated leverage ratio. The proceeds from this loan reduced borrowings then outstanding under the revolving portion of our Unsecured Credit Facility. On October 30, 2018, we entered into a five-year, $200,000 unsecured term loan agreement with KeyBank. The loan matures in January 2024 and bears interest at a spread over LIBOR, based on our overall leverage. At closing, the spread to LIBOR was 145 basis points. At closing, we drew $150,000 under the loan. The remaining $50,000 was drawn in February 2019. We applied proceeds of both draws to reduce outstanding borrowings under our Unsecured Credit Facility. We incurred upfront deferred costs of $821 associated with this facility. Mortgages On January 3, 2018, in connection with the acquisition of our Hartshire Lakes property, we assumed a $16,000 loan secured by a first mortgage on the property. The loan bears interest at a rate of 4.68% per annum, provides for monthly payments of interest only through January 2019, when principal and interest payments will be due monthly based on a 30-year amortization schedule. The loan matures January 2025. The loan was recorded at its fair value of $15,936 based on a discounted cash flows valuation technique. As this technique utilizes current credit spreads, which are generally unobservable, this is classified as a Level 3 fair value measurement within the fair value hierarchy. On January 3, 2018, in connection with the acquisition of our Creekside Corners property, we assumed a $23,500 loan secured by a first mortgage on the property. The loan bears interest at a rate of 4.56% per annum, provides for monthly payments of interest only through January 2019, when principal and interest payments will be due monthly based on a 30-year amortization schedule. The loan matures January 2025. The loan was recorded at its fair value of $23,426 based on a discounted cash flows valuation technique. As this technique utilizes current credit spreads, which are generally unobservable, this is classified as a Level 3 fair value measurement within the fair value hierarchy. On October 11, 2018, in connection with the acquisition of our Waterford Landing property, we assumed a $15,500 loan secured by a first mortgage on the property. The loan bears interest at a rate of 4.82% per annum, provides for monthly payments of interest only through January 2019, when principal and interest payments will be due monthly based on a 30-year amortization schedule. The loan matures January 2026. The loan was recorded at its fair value of $15,394 based on a discounted cash flows valuation technique. As this technique utilizes current credit spreads, which are generally unobservable, this is classified as a Level 3 fair value measurement within the fair value hierarchy. During the year ended December 31, 2018, in connection with two property dispositions, we extinguished property mortgages and made partial paydowns totaling $46,772. On December 12, 2017, in connection with our acquisition of our Brunswick Point property, we assumed a $19,000 loan secured by a first mortgage on the property. The loan bears interest at a rate of 4.4% per annum, provides for monthly payments of interest only through May 2019, when principal and interest payments will be due monthly based on a 30-year amortization schedule, and matures May 2025. This loan was recorded at its fair value of $18,977 based on a discounted cash flows valuation technique. As this technique utilizes current credit spreads, which are generally unobservable, this is classified as a Level 3 fair value measurement within the fair value hierarchy. During the year ended December 31, 2017, in connection with four property dispositions, we extinguished property mortgages totaling $35,901. In February of 2016, we repaid $6,659 of mortgage indebtedness as part of the disposition of our Cumberland property. In March of 2016, we repaid $43,694 of mortgage indebtedness related to the Oklahoma City portfolio of properties we acquired in 2014 through a refinancing whereby IROP drew down on the secured credit facility. On May 26, 2016, we entered into a loan agreement for a $25,050 loan secured by a first mortgage on our Aston property. The loan bears interest at a rate of 3.4% per annum, provides for monthly payments of interest only through December 2019, when principal and interest payments will be due monthly based on a 30-year amortization schedule, and matures June 2023. On May 17, 2016, we entered into a loan agreement for a $31,250 loan secured by a first mortgage on our Avenues at Craig Ranch property. The loan bears interest at a rate of 3.3% per annum, provides for monthly payments of interest only through May 2019, when principal and interest payments will be due monthly based on a 30-year amortization schedule, and matures June 2023. On May 20, 2016, we entered into a loan agreement for a $49,680 loan secured by a first mortgage on our Waterstone at Big Creek property. The loan bears interest at a rate of 3.7% per annum, provides for monthly payments of interest only through June 2019, when principal and interest payments will be due monthly based on a 30-year amortization schedule, and matures June 2026.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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