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v3.23.2

Debt, Net | 6 Months Ended
--- | ---
Jun. 30, 2023
Debt Disclosure [Abstract] |
Debt, Net | Debt, Net Our debt consisted of the following (dollars in thousands):
|  |  | Carrying Value (1) as of |  | June 30, 2023
|  |  | June 30, 2023 |  | December 31, 2022 |
|  |  |  | Stated Interest Rates |  | Scheduled Maturity
Mortgage and Other Secured Debt: |  |  |  |  |  |  |  |  |
Fixed rate mortgage debt |  |  | $ | 67,415 |  |  | $ | 84,433 |  |  | 3.82% to 4.62% (2) |  | 2024-2026
Variable rate secured debt |  |  | 33,106 |  |  | 33,318 |  |  | SOFR + 0.10% + 1.45% to 1.55% (3) |  | 2025-2026
Total mortgage and other secured debt |  |  | 100,521 |  |  | 117,751 |  |  |  |  |
Revolving Credit Facility |  |  | 171,000 |  |  | 211,000 |  |  | SOFR + 0.10% + 0.725% to 1.400% (4) |  | October 2026 (5)
Term Loan Facility |  |  | 124,120 |  |  | 123,948 |  |  | SOFR + 0.10% + 0.850% to 1.700% (6) |  | January 2026 (7)
Unsecured Senior Notes |  |  |  |  |  |  |  |  |
2.25%, $400,000 aggregate principal |  |  | 397,071 |  |  | 396,539 |  |  | 2.25% (8) |  | March 2026
2.00%, $400,000 aggregate principal |  |  | 397,229 |  |  | 396,988 |  |  | 2.00% (9) |  | January 2029
2.75%, $600,000 aggregate principal |  |  | 590,664 |  |  | 590,123 |  |  | 2.75% (10) |  | April 2031
2.90%, $400,000 aggregate principal |  |  | 395,055 |  |  | 394,848 |  |  | 2.90% (11) |  | December 2033
Unsecured note payable |  |  | 514 |  |  | 597 |  |  | 0% (12) |  | May 2026
Total debt, net |  |  | $ | 2,176,174 |  |  | $ | 2,231,794 |  |  |  |  |
(1)The carrying values of our debt other than the Revolving Credit Facility reflect net deferred financing costs of $4.8 million as of June 30, 2023 and $5.4 million as of December 31, 2022. (2)The weighted average interest rate on our fixed rate mortgage debt was 4.10% as of June 30, 2023. (3)Including the effect of interest rate swaps that hedge the risk of interest rate changes, the weighted average interest rate on our variable rate secured debt as of June 30, 2023 was 2.45%; excluding the effect of these swaps, the weighted average interest rate on this debt as of June 30, 2023 was 6.67%. (4)The weighted average interest rate on the Revolving Credit Facility was 6.28% as of June 30, 2023, excluding the effect of interest rate swaps that hedge the risk of interest rate changes (see Note 9). (5)The facility matures in October 2026, with the ability for us to extend such maturity by two six-month periods at our option, provided that there is no default under the facility and we pay an extension fee of 0.0625% of the total availability under the facility for each extension period. (6)The interest rate on this loan was 6.56% as of June 30, 2023, excluding the effect of interest rate swaps that hedge the risk of interest rate changes (see Note 9). (7)This facility matures in January 2026, with the ability for us to extend such maturity by two 12-month periods at our option, provided that there is no default under the facility and we pay an extension fee of 0.125% of the outstanding loan balance for each extension period. (8)The carrying value of these notes reflects an unamortized discount totaling $2.4 million as of June 30, 2023 and $2.8 million as of December 31, 2022. The effective interest rate under the notes, including amortization of the issuance costs, was 2.48%. (9)The carrying value of these notes reflects an unamortized discount totaling $2.0 million as of June 30, 2023 and $2.1 million as of December 31, 2022. The effective interest rate under the notes, including amortization of the issuance costs, was 2.09%. (10)The carrying value of these notes reflects an unamortized discount totaling $8.1 million as of June 30, 2023 and $8.5 million as of December 31, 2022. The effective interest rate under the notes, including amortization of the issuance costs, was 2.94%. (11)The carrying value of these notes reflects an unamortized discount totaling $4.1 million as of June 30, 2023 and $4.2 million as of December 31, 2022. The effective interest rate under the notes, including amortization of the issuance costs, was 3.01%. (12)This note carries an interest rate that, upon assumption, was below market rates and it therefore was recorded at its fair value based on applicable effective interest rates. The carrying value of this note reflects an unamortized discount totaling $47,000 as of June 30, 2023 and $65,000 as of December 31, 2022. All debt is owed by the Operating Partnership. While COPT is not directly obligated by any debt, it has guaranteed COPLP’s Revolving Credit Facility, Term Loan Facility and Unsecured Senior Notes. Certain of our debt instruments require that we comply with a number of restrictive financial covenants. As of June 30, 2023, we were compliant with these financial covenants. Our debt matures on the following schedule (in thousands):
Year Ending December 31, |  | June 30, 2023 |
2023 (1) |  | $ | 1,516 |  |
2024 |  | 29,983 |  |
2025 |  | 23,717 |  |
2026 |  | 742,300 |  |
2027 |  | — |  |
Thereafter |  | 1,400,000 |  |
Total |  | $ | 2,197,516 |  | (2)
(1)Represents the six months ending December 31, 2023. (2)Represents scheduled principal amortization and maturities only and therefore excludes net discounts and deferred financing costs of $21.3 million. We capitalized interest costs of $1.2 million in the three months ended June 30, 2023, $1.4 million in the three months ended June 30, 2022, $2.0 million in the six months ended June 30, 2023 and $2.9 million in the six months ended June 30, 2022. The following table sets forth information pertaining to the fair value of our debt (in thousands):
| June 30, 2023 |  | December 31, 2022
| Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value
Fixed-rate debt |  |  |  |  |  |  |
Unsecured Senior Notes | $ | 1,780,019 |  |  | $ | 1,401,467 |  |  | $ | 1,778,498 |  |  | $ | 1,433,561 |
Other fixed-rate debt | 67,929 |  |  | 63,545 |  |  | 85,030 |  |  | 80,330 |
Variable-rate debt | 328,226 |  |  | 328,340 |  |  | 368,266 |  |  | 367,896 |
| $ | 2,176,174 |  |  | $ | 1,793,352 |  |  | $ | 2,231,794 |  |  | $ | 1,881,787 |

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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://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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