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Indebtedness | 12 Months Ended
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Dec. 31, 2019
Debt Disclosure [Abstract] |
Indebtedness | NOTE 4: Indebtedness The following tables contains summary information concerning our indebtedness as of December 31, 2019:
Debt: |  | Outstanding Principal |  |  | Unamortized Debt Issuance Costs |  |  | Carrying Amount |  |  | Type |  | Weighted Average Rate |  |  | Weighted Average Maturity (in years) |
Unsecured credit facility (1) |  | $ | 186,302 |  |  | $ | (2,336 | ) |  | $ | 183,966 |  |  | Floating |  | 3.2% |  |  |  | 3.4 |
Unsecured term loans |  |  | 300,000 |  |  |  | (1,582 | ) |  |  | 298,418 |  |  | Floating |  | 3.1% |  |  |  | 4.3 |
Mortgages |  |  | 504,876 |  |  |  | (1,688 | ) |  |  | 503,188 |  |  | Fixed |  | 3.9% |  |  |  | 4.0 |
Total Debt |  | $ | 991,178 |  |  | $ | (5,606 | ) |  | $ | 985,572 |  |  |  |  | 3.5% |  |  |  | 4.0 |
| (1) | The unsecured credit facility total capacity is $350,000, of which $186,302 was outstanding as of December 31, 2019.
|  | Original maturities on or before December 31, |
Debt: |  | 2020 |  |  | 2021 |  |  | 2022 |  |  | 2023 |  |  | 2024 |  |  | Thereafter |
Unsecured credit facility |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 186,302 |  |  | $ | - |  |  | $ | - |
Unsecured term loans |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 300,000 |  |  |  | - |
Mortgages |  |  | 8,135 |  |  |  | 76,085 |  |  |  | 70,734 |  |  |  | 107,387 |  |  |  | 72,172 |  |  |  | 170,363 |
Total |  | $ | 8,135 |  |  | $ | 76,085 |  |  | $ | 70,734 |  |  | $ | 293,689 |  |  | $ | 372,172 |  |  | $ | 170,363 |
As of December 31, 2019 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, 2018:
Debt: |  | Outstanding Principal |  |  | Unamortized 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 secured credit facility total capacity was $300,000, of which $155,743 was outstanding as of December 31, 2018.
Unsecured Credit Facility and Revolving Line of Credit 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”). The Secured Credit Facility was subsequently amended on December 21, 2016. The amended Secured Credit Facility had a total capacity of $312,500. 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. We recognized the refinance as a partial extinguishment of our prior Secured Credit Facility and recognized a loss on extinguishment of debt of $572. On May 9, 2019, we entered into a new $350,000 unsecured credit facility that consists entirely of a revolving line of credit (the “Unsecured Revolving Line of Credit”), refinancing and terminating the previous Unsecured Credit Facility. We have the right to increase the aggregate amount of the Unsecured Revolving Line of Credit to up to $600,000. The maturity date on borrowings outstanding under the Unsecured Revolving Line of Credit is May 9, 2023, subject to our option to extend the revolving commitment for two additional 6-month periods under certain circumstances, including the payment of an extension fee. We may prepay the Unsecured Revolving Line of Credit, in whole or in part, at any time without a prepayment fee or penalty. At our option, borrowings under the Unsecured Revolving Line of Credit will bear interest at a rate equal to either (i) the 1-month LIBOR rate plus a margin of 125 to 200 basis points, or (ii) a base rate plus a margin of 25 to 100 basis points. The applicable margin is determined based upon our total consolidated leverage ratio, as defined in the agreements. At the time of closing, based on our leverage ratio, the margin spread to LIBOR was 155 basis points. We recognized the refinance as a modification of our prior unsecured credit facility and incurred deferred financing costs of $1,129 associated with this transaction. In addition to certain negative covenants, our Unsecured Revolving Line of Credit 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, and (iii) maintain a minimum consolidated tangible net worth. 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), and (b) 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 a total value of at least $100,000. We may draw upon or pay down our Unsecured Revolving Line of Credit from time-to-time based on our cash needs. Subsequent to December 31, 2019, we drew $62,000 associated with capital expenditures and a property acquisition. Term Loans On November 20, 2017, we entered into an agreement for a $100,000 unsecured term loan that matures in November 2024. We incurred upfront deferred costs of $917 associated with this facility. In November 2019, the unsecured term loan was amended, which reduced the interest spread. We incurred $257 of upfront deferred costs associated with the amendment. The interest rate on the unsecured term loan is LIBOR plus a spread of 1.20% – 1.90% based on our consolidated leverage ratio. On October 30, 2018, we entered into an agreement for a $200,000 unsecured term loan that matures in January 2024. We incurred upfront deferred costs of $821 associated with this facility. The interest rate on the unsecured term loan is LIBOR plus a spread of 1.20% – 1.90% based on our overall leverage ratio. 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. Mortgages During the year ended December 31, 2019, in connection with three property dispositions, we extinguished property mortgages totaling $76,512. 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.

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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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