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Indebtedness
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Indebtedness Indebtedness
The following tables contain summary information concerning our consolidated indebtedness, including indebtedness secured by real estate held for sale as of December 31, 2023:
Debt:Outstanding PrincipalUnamortized Debt Issuance CostsUnamortized Loan (Discount)/PremiumsCarrying AmountType
Weighted
Average Contractual Rate (3)
Weighted Average Effective Rate (4)
Weighted
Average
Maturity
(in years)
Unsecured revolver (1)
$234,479 $(1,117)$— $233,362 Floating6.6%5.4%2.1
Unsecured term loans600,000 (2,456)— 597,544 Floating6.5%3.9%3.5
Secured credit
  facilities		586,286 (1,949)21,762 606,099 Floating/Fixed4.2%4.6%4.9
Mortgages (2)1,094,933 (5,250)22,721 1,112,404 Fixed3.8%4.0%4.3
Total Debt$2,515,698 $(10,772)$44,483 $2,549,409 4.8%4.2%4.0
(1)The unsecured revolver total capacity is $500,000, of which $234,479 was outstanding as of December 31, 2023.
(2)Includes indebtedness secured by real estate held for sale of $122,621.
(3)Represents the weighted average of the contractual interest rates in effect as of year-end without regard to any interest rate swaps or collars.
(4)Represents the total weighted average effective interest rate for the full year ended December 31, 2023, after giving effect to all components of interest expense including the impact of interest rate swaps and collars, but excluding the impact of loan premium amortization, discount accretion, and interest capitalization.
Original maturities on or before December 31,
Debt:20242025202620272028Thereafter
Unsecured revolver$— $— $234,479 $— $— $— 
Unsecured term loans— — 200,000 — 400,000 — 
Secured credit facilities— 3,065 9,111 10,081 454,589 109,440 
Mortgages (1)66,827 135,924 144,235 15,198 200,659 532,090 
Total$66,827 $138,989 $587,825 $25,279 $1,055,248 $641,530 
(1)Includes indebtedness secured by real estate held for sale.
The following table contains summary information concerning our consolidated indebtedness as of December 31, 2022:
Debt:Outstanding PrincipalUnamortized Debt Issuance CostsUnamortized Loan (Discount)/PremiumsCarrying
 Amount		Type
Weighted
Average Rate (2)
Weighted
Average
Maturity
(in years)
Unsecured revolver (1)
$165,978 $(1,695)$— $164,283 Floating4.9%3.1
Unsecured term loans600,000 (3,388)— 596,612 Floating5.1%4.5
Secured credit
  facilities		635,128 (2,256)27,670 660,542 Floating/Fixed4.3%5.9
Mortgages1,185,246 (7,305)32,267 1,210,208 Fixed3.9%5.2
Total Debt$2,586,352 $(14,644)$59,937 $2,631,645 4.5%5.1
(1)The unsecured credit facility total capacity was $500,000, of which $165,978 was outstanding as of December 31, 2022.
(2)Represents the weighted average of the contractual interest rates in effect as of quarter-end without regard to any interest rate swaps or collars. Our total weighted average effective interest rate as of the year ended December 31, 2022, after giving effect to the impact of interest rate swaps and collars, and excluding the impact of loan premium amortization and discount accretion was 4.1%.
As of December 31, 2023 we were in compliance with all financial covenants contained in our consolidated indebtedness.
Unsecured Revolving Credit Facility and Term Loans
On July 25, 2022, we entered into the Fourth Amended, Restated and Consolidated Credit Agreement (the “Fourth Restated Credit Agreement”) which amended and restated in its entirety the Third Amended and Restated Credit Agreement dated as of December 14, 2021 (the “Third Restated Credit Agreement”). The Fourth Restated Credit Agreement provides for an aggregate amount available for borrowing of $1,100,000, which consists of (i) a $500,000 unsecured revolving credit facility with a January 31, 2026 scheduled maturity date (the “Revolving Credit Facility”), (ii) a $400,000 term loan with a January 28, 2028 maturity date (the “2028 Term Loan”); and (iii) a $200,000 term loan with a May 18, 2026 maturity date (the “2026 Term Loan”). The Fourth Restated Credit Agreement represents an increase of $100,000 over the Third Restated Credit Agreement which provided for (i) the Revolving Credit Facility, (ii) the 2026 Term Loan, and (iii) two additional term loans of $200,000 and $100,000, which had maturity dates of January 17, 2024 and November 20, 2024, respectively (collectively, the “2024 Term Loans”). Proceeds of the 2028 Term Loan were used to (i) repay and retire the 2024 Term Loans, and (ii) reduce $100,000 of outstanding borrowings under the Revolving Credit Facility. In addition, the Fourth Restated Credit Agreement changed the LIBOR interest rate option to SOFR. The Fourth Restated Credit Agreement otherwise continues, without material change, the 2026 Term Loan and the Revolving Credit Facility. We recognized the restructuring of the Fourth Restated Credit Agreement as a modification of debt for all lenders except for one and incurred deferred financing costs of $1,477 associated with the transaction. We recognized the portion
of debt associated with the lender no longer participating in the Fourth Restated Credit Agreement as an extinguishment of debt and wrote off their de minimis deferred financing costs.
Borrowings under the 2028 Term Loan bear interest at a rate equal to either (i) the SOFR rate plus a margin of 115 to 180 basis points, or (ii) a base rate plus a margin of 15 to 80 basis points. These margins represent a 5-basis point decrease from those applicable to the term loans that were repaid and retired. The margin for borrowings under the Revolving Credit Facility and the 2026 Term Loan remained unchanged, with (1) Revolving Credit Facility borrowings bearing interest at a rate equal to either (i) the SOFR rate plus a margin of 125 to 200 basis points, or (ii) a base rate plus a margin of 25 to 100 basis points; and (2) 2026 Term Loan borrowings bearing interest at a rate equal to either (i) the SOFR rate plus a margin of 120 to 190 basis points, or (ii) a base rate plus a margin of 20 to 90 basis points. The applicable margin will be determined based upon IROP’s consolidated leverage ratio. At the time of closing, based on IROP’s consolidated leverage ratio, the applicable margin was 125 basis points for the Revolving Credit Facility, 120 basis points for the 2026 Term Loan and 115 basis points for the 2028 Term Loan.
IROP has the right to request an increase in the aggregate amount of the Fourth Restated Credit Agreement from $1,100,000 to up to $1,500,000, subject to certain terms and conditions, including receipt of commitments from one or more lenders, whether or not currently parties to the Fourth Restated Credit Agreement, to provide such increased amounts, which increase may be allocated, at IROP’s option, to the Revolving Credit Facility and/or to one or more of the Term Loans, in accordance with the Fourth Restated Credit Agreement.
In addition to certain negative covenants, the Fourth Restated Credit Agreement has financial covenants that require us to (i) maintain a consolidated leverage ratio below specified thresholds, (ii) maintain a minimum consolidated fixed charge coverage ratio, and (iii) maintain a minimum consolidated tangible net worth, (iv) and maintain secured and unsecured leverage ratios below specified thresholds. Additionally, the covenants 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) and the ratio of unencumbered asset adjusted net operating income to unsecured interest expense.
Secured Credit Facilities
PNC Secured Credit Facility
On December 16, 2021, in connection with the STAR Merger, we assumed the PNC MCFA, a fixed rate multifamily note and other loan documents for the benefit of PNC Bank. The PNC MCFA provides for a fixed rate loan in the aggregate principal amount of $79,170 that accrues interest at 2.82% per annum and has a maturity date of July 1, 2030. As of December 31, 2023, the outstanding principal balance was $76,248.
Newmark Secured Credit Facility
On December 16, 2021, in connection with the STAR Merger, we assumed the Newmark MCFA, which consists of four tranches: (1) a fixed rate loan in the aggregate principal amount of $331,001 that accrues interest at 4.43% per annum; (2) a fixed rate loan in the aggregate principal amount of $137,917 that accrues interest at 4.57% per annum; (3) a variable rate loan in the aggregate principal amount of $49,493 that accrues interest at the one-month LIBOR plus 1.70% per annum; and (4) a fixed rate loan in the aggregate principal amount of $40,468 that accrues interest at 3.34% per annum. The first three tranches have a maturity date of August 1, 2028, and the fourth tranche has a maturity date of March 1, 2030, unless in each case the maturity date is accelerated in accordance with the terms of the loan documents. Interest only payments are payable monthly through August 1, 2025 and April 1, 2027 on the first three tranches and fourth tranche, respectively, with interest and principal payments due monthly thereafter. As of December 31, 2023, the outstanding balance on tranche 3 was $652. In January 2024, tranche 3 was repaid and retired with proceeds from the 2023 property sales.
Mortgages
The following table summarizes the mortgage payoffs during the years ended December 31, 2023 and 2022.
AmountWeighted Average Interest Rate
Mortgage payoffs in 2022
$46,046 3.60 %
Mortgage payoffs in 2023
121,018 5.87 %
$167,064 5.24 %
In connection with mortgage debt prepaid during the year ended December 31, 2023, we incurred losses on extinguishment of debt totaling $124.
Subsequent to the year ended December 31, 2023, we reduced the balance on our unsecured revolving credit facility in the amount of $47,000 and paid off the balance of the third tranche of the Newmark Secured Credit Facility in the amount of $652 using proceeds from properties targeted for sale in our Portfolio Optimization and Deleveraging Strategy.
Subsequent to the year ended December 31, 2023, we paid off mortgages in the aggregate amount of $79,064 as a result of the sale of Villas at Kingwood and Belmar Villas, which were two properties targeted for sale in our Portfolio Optimization and Deleveraging Strategy. In connection with the sale of these properties we incurred aggregate gains on extinguishment of debt totaling $677.