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Debt | 3 Months Ended
--- | ---
Mar. 31, 2017
Debt Disclosure [Abstract] |
Debt | Debt A summary of the Company’s consolidated indebtedness is as follows (dollars in thousands):
| Interest Rate |  | Maturity Date at March 31, 2017 |  | Carrying Value
| March 31, 2017 |  | December 31, 2016 |  |  | March 31, 2017 |  | December 31, 2016
Mortgages Payable |  |  |  |  |  |  |  |  |
Core Fixed Rate | 3.88%-6.65% |  | 3.88%-6.65% |  | August 2017 - April 2035 |  | $ | 234,273 |  |  | $ | 234,875 |
Core Variable Rate - Swapped (a) | 1.71%-3.77% |  | 1.71%-3.77% |  | September 2022 - June 2026 |  | 81,663 |  |  | 82,250 |
Total Core Mortgages Payable |  |  |  |  |  |  | 315,936 |  |  | 317,125 |
Fund II Fixed Rate | 1.00%-5.80% |  | 1.00%-5.80% |  | October 2017 - May 2020 |  | 249,762 |  |  | 249,762 |
Fund II Variable Rate | LIBOR+0.79% -LIBOR+2.50% |  | LIBOR+0.62% -LIBOR+2.50% |  | August 2017 - November 2021 |  | 142,750 |  |  | 142,750 |
Fund II Variable Rate - Swapped (a) | 2.88% |  | 2.88% |  | November 2021 |  | 19,726 |  |  | 19,779 |
Total Fund II Mortgages Payable |  |  |  |  |  |  | 412,238 |  |  | 412,291 |
Fund III Variable Rate | Prime+0.50% -LIBOR+4.65% |  | Prime+0.50% -LIBOR+4.65% |  | May 2017 - December 2021 |  | 79,680 |  |  | 83,467 |
Fund IV Fixed Rate | 3.4%-4.50% |  | 3.4%-4.50% |  | October 2025-June 2026 |  | 10,504 |  |  | 10,503 |
Fund IV Variable Rate | LIBOR+1.70% -LIBOR+3.95% |  | LIBOR+1.70% - LIBOR+3.95% |  | May 2017 - April 2022 |  | 258,816 |  |  | 233,139 |
Fund IV Variable Rate - Swapped (a) | 1.78% |  | 1.78% |  | April 2022 |  | 81,668 |  |  | 14,509 |
Total Fund IV Mortgages Payable |  |  |  |  |  |  | 350,988 |  |  | 258,151 |
Net unamortized debt issuance costs |  |  |  |  |  |  | (16,951 | ) |  | (16,642 | )
Unamortized premium |  |  |  |  |  |  | 1,158 |  |  | 1,336 |
Total Mortgages Payable |  |  |  |  |  |  | $ | 1,143,049 |  |  | $ | 1,055,728 |
Unsecured Notes Payable |  |  |  |  |  |  |  |  |
Core Unsecured Term Loans | LIBOR+1.30% -LIBOR+1.60% |  | LIBOR+1.30% -LIBOR+1.60% |  | July 2020 - December 2022 |  | $ | 51,283 |  |  | $ | 51,194 |
Core Variable Rate Unsecured Term Loans - Swapped (a) | 1.24%-3.77% |  | 1.24%-3.77% |  | July 2018 - March 2025 |  | 248,717 |  |  | 248,806 |
Total Core Unsecured Notes Payable |  |  |  |  |  |  | 300,000 |  |  | 300,000 |
Fund IV Term Loan/Subscription Facility | LIBOR+1.65% -LIBOR+2.75% |  | LIBOR+1.65% -LIBOR+2.75% |  | February 2017- November 2017 |  | 60,536 |  |  | 134,636 |
Net unamortized debt issuance costs |  |  |  |  |  |  | (1,689 | ) |  | (1,646 | )
Total Unsecured Notes Payable |  |  |  |  |  |  | $ | 358,847 |  |  | $ | 432,990 |
Unsecured Line of Credit |  |  |  |  |  |  |  |  |
Core Unsecured Line of Credit | LIBOR+1.40% |  | LIBOR+1.40% |  | June 2020 |  | $ | — |  |  | $ | — |
Total Unsecured Line of Credit |  |  |  |  |  |  | $ | — |  |  | $ | — |
Total Debt - Fixed Rate (b) |  |  |  |  |  | $ | 926,314 |  |  | $ | 860,486 |
Total Debt - Variable Rate |  |  |  |  |  |  | 593,064 |  |  | 645,185 |
Total Debt |  |  |  |  |  |  | 1,519,378 |  |  | 1,505,671 |
Net unamortized debt issuance costs |  |  |  |  |  |  | (18,640 | ) |  | (18,289 | )
Unamortized premium |  |  |  |  |  |  | 1,158 |  |  | 1,336 |
Total Indebtedness |  |  |  |  |  |  | $ | 1,501,896 |  |  | $ | 1,488,718 |
__________
(a) | At March 31, 2017, the stated rates ranged from LIBOR + 1.08% to LIBOR +1.90% for Core variable-rate debt; LIBOR + .79% to LIBOR +2.50% for Fund II variable-rate debt; PRIME + 0.50% to LIBOR +4.65% for Fund III variable-rate debt; LIBOR + 1.70% to LIBOR +3.95% for Fund IV variable-rate debt and LIBOR + 1.30% to LIBOR +1.60% for Core variable-rate unsecured notes.
(b) | Includes $431,774 and $365,343, respectively, of variable-rate debt that has been fixed with interest rate swap agreements as of the periods presented.
Mortgages Payable During 2017, the Company obtained eight new non-recourse mortgages totaling $93.0 million with a weighted-average interest rate of 2.68% collateralized by eight properties, which mature between February 14, 2020 and April 1, 2022. The Company entered into interest rate swap contracts to effectively fix the interest rates of seven of these obligations with a notional value of $67.3 million at a weighted-average rate of 1.92%. During 2017, the Company repaid one mortgage in full, which had a balance of $3.5 million and an interest rate of LIBOR + 2.15%, and made scheduled principal payments of $1.9 million. At March 31, 2017 and December 31, 2016, the Company’s mortgages were collateralized by 47 and 39 properties, respectively, and the related tenant leases. Certain loans are cross-collateralized and contain cross-default provisions. The loan agreements contain customary representations, covenants and events of default. Certain loan agreements require the Company to comply with affirmative and negative covenants, including the maintenance of debt service coverage and leverage ratios. A portion of the Company’s variable-rate mortgage debt has been effectively fixed through certain cash flow hedge transactions (Note 8). The mortgage loan related to Brandywine Holdings in our Core Portfolio amounted to $26.3 million and was in default at March 31, 2017 and December 31, 2016. This loan bears interest at 5.99%, excluding default interest of 5%, and is collateralized by a property, in which the Company holds a 22% controlling interest. In April 2017, the lender on this mortgage initiated a lawsuit against the Company for the full balance of the principal, accrued interest as well as penalties and fees aggregating approximately $31.0 million. The Company’s management believes that the mortgage is not recourse to the Company and that the suit is without merit. In addition, at March 31, 2017, a mortgage loan in the amount of $14.3 million and collateralized by a Fund II property, was in default because its liquidity covenant had been breached. Unsecured Notes Payable At each of March 31, 2017 and December 31, 2016, the Company had a total of $0.0 and $9.9 million available under its unsecured term loans. A portion of the Company’s variable-rate term loan debt has been effectively fixed through certain cash flow hedge transactions (Note 8). The Company completed the following transactions related to its unsecured notes payable during the three months ended March 31, 2017:
• | The Company reduced its maximum commitment available on the Fund IV subscription line of credit from $100.0 million to $21.5 million. Furthermore, upon repayment of $74.1 million, net of $10.0 million in draws, the Company was in compliance with its liquidity covenant at March 31, 2017 which was not in compliance at December 31, 2016. The balance was $20.4 million at March 31, 2017 and $94.5 million at December 31, 2016. Total available credit at March 31, 2017 and December 31, 2016 was $1.1 million and $55.5 million respectively on this line.
Unsecured Lines of Credit At March 31, 2017 and December 31, 2016 the Company had a total of $150.0 million and $147.5 million, respectively available under its unsecured line of credit. The Company completed the following transactions related to its unsecured line of credit during the three months ended March 31, 2017:
• | The Company drew down and repaid $10.0 million on the Core unsecured line of credit. There was no outstanding balance as of March 31, 2017.
Scheduled Debt Principal Payments The scheduled principal repayments of the Company’s consolidated indebtedness, as of March 31, 2017 are as follows (in thousands):
Year Ending December 31, |
2017 (Remainder) | $ | 273,916 |
2018 | 115,846 |
2019 | 206,646 |
2020 | 369,107 |
2021 | 255,074 |
Thereafter | 298,789 |
| 1,519,378 |
Unamortized fair market value of assumed debt | 1,158 |
Net unamortized debt issuance costs | (18,640 | )
Total indebtedness | $ | 1,501,896 |
See Note 4 for information about liabilities of the Company’s unconsolidated affiliates.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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