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Debt | 3 Months Ended
--- | ---
Mar. 31, 2018
Debt Disclosure [Abstract] |
Debt | Debt A summary of the Company’s consolidated indebtedness is as follows (dollars in thousands):
| Interest Rate at |  |  |  |  |  |
| March 31, |  | December 31, |  | Maturity Date at |  | March 31, |  | December 31,
| 2018 |  | 2017 |  | March 31, 2018 |  | 2018 |  | 2017
Mortgages Payable |  |  |  |  |  |  |  |  |
Core Fixed Rate | 3.88%-6.00% |  | 3.88%-5.89% |  | February 2024 - April 2035 |  | $ | 179,475 |  |  | $ | 179,870 |
Core Variable Rate - Swapped (a) | 3.41%-3.77% |  | 1.71%-3.77% |  | January 2023 - June 2026 |  | 33,323 |  |  | 74,152 |
Total Core Mortgages Payable |  |  |  |  |  |  | 212,798 |  |  | 254,022 |
Fund II Fixed Rate | 1.00%-4.75% |  | 1.00%-4.75% |  | August 2019 - August 2042 |  | 205,262 |  |  | 205,262 |
Fund II Variable Rate - Swapped (a) | 2.88% |  | 2.88% |  | November 2021 |  | 19,503 |  |  | 19,560 |
Total Fund II Mortgages Payable |  |  |  |  |  |  | 224,765 |  |  | 224,822 |
Fund III Variable Rate | Prime+0.50%-LIBOR+4.65% |  | Prime+0.50%-LIBOR+4.65% |  | May 2018 - December 2021 |  | 70,344 |  |  | 65,866 |
Fund IV Fixed Rate | 3.40%-4.50% |  | 3.40%-4.50% |  | October 2025-June 2026 |  | 10,503 |  |  | 10,503 |
Fund IV Variable Rate | LIBOR+1.70%-LIBOR+3.95% |  | LIBOR+1.70%-LIBOR+3.95% |  | April 2018 - August 2021 |  | 249,954 |  |  | 250,584 |
Fund IV Variable Rate - Swapped (a) | 3.67%-4.23% |  | 1.78%-2.11% |  | May 2019 - December 2022 |  | 86,517 |  |  | 86,851 |
Total Fund IV Mortgages Payable |  |  |  |  |  |  | 346,974 |  |  | 347,938 |
Fund V Variable Rate | LIBOR+2.15%-LIBOR+2.25% |  | LIBOR+2.25% |  | October 2020 - January 2021 |  | 51,506 |  |  | 28,613 |
Fund V Variable Rate - Swapped (a) | 4.61% |  | — |  | February 2021 |  | 16,900 |  |  | — |
Total Fund V Mortgage Payable |  |  |  |  |  |  | 68,406 |  |  | 28,613 |
Net unamortized debt issuance costs |  |  |  |  |  |  | (12,590 | ) |  | (12,943 | )
Unamortized premium |  |  |  |  |  |  | 830 |  |  | 856 |
Total Mortgages Payable |  |  |  |  |  |  | $ | 911,527 |  |  | $ | 909,174 |
Unsecured Notes Payable |  |  |  |  |  |  |  |  |
Core Variable Rate Unsecured Term Loans - Swapped (a) | 2.49%-4.05% |  | 1.24%-3.77% |  | March 2023 |  | $ | 350,000 |  |  | $ | 300,000 |
Fund II Unsecured Notes Payable | LIBOR+1.65% |  | LIBOR+1.40% |  | September 2020 |  | 31,500 |  |  | 31,500 |
Fund IV Term Loan/Subscription Facility | LIBOR+1.65%-LIBOR+2.75% |  | LIBOR+1.65%-LIBOR+2.75% |  | December 2018- October 2019 |  | 40,825 |  |  | 40,825 |
Fund V Subscription Facility | LIBOR+1.60% |  | LIBOR+1.60% |  | May 2020 |  | 108,100 |  |  | 103,300 |
Net unamortized debt issuance costs |  |  |  |  |  |  | (669 | ) |  | (1,890 | )
Total Unsecured Notes Payable |  |  |  |  |  |  | $ | 529,756 |  |  | $ | 473,735 |
Unsecured Line of Credit |  |  |  |  |  |  |  |  |
Core Unsecured Line of Credit | — |  | LIBOR+1.40% |  | — |  | $ | — |  |  | $ | 18,048 |
Core Unsecured Line of Credit - Swapped (a) | 2.59%-4.15% |  | 1.24%-3.77% |  | March 2022 |  | 14,000 |  |  | 23,452 |
Total Unsecured Line of Credit |  |  |  |  |  |  | $ | 14,000 |  |  | $ | 41,500 |
Total Debt - Fixed Rate (b) |  |  |  |  |  | $ | 915,483 |  |  | $ | 899,650 |
Total Debt - Variable Rate (c) |  |  |  |  |  |  | 552,229 |  |  | 538,736 |
Total Debt |  |  |  |  |  | 1,467,712 |  |  | 1,438,386 |
Net unamortized debt issuance costs |  |  |  |  |  |  | (13,259 | ) |  | (14,833 | )
Unamortized premium |  |  |  |  |  |  | 830 |  |  | 856 |
Total Indebtedness |  |  |  |  |  |  | $ | 1,455,283 |  |  | $ | 1,424,409 |
__________
(a) | At March 31, 2018, the stated rates ranged from LIBOR + 1.70% to LIBOR +1.90% for Core variable-rate debt; LIBOR + 1.39% for Fund II variable-rate debt; PRIME + 0.50% to LIBOR +4.65% for Fund III variable-rate debt; LIBOR + 1.85% to LIBOR +2.25% for Fund IV variable-rate debt, LIBOR + 2.20% for Fund V and LIBOR + 1.25% for Core variable-rate unsecured term loans.
(b) | Includes $520.2 million and $504.0 million, respectively, of variable-rate debt that has been fixed with interest rate swap agreements as of the periods presented.
(c) | Includes $143.8 million and $141.1 million, respectively, of variable-rate debt that is subject to interest cap agreements.
Credit Facility On February 20, 2018, the Company entered into a $500.0 million senior unsecured credit facility (the “Credit Facility”), comprised of a $150.0 million senior unsecured revolving credit facility (the “Revolver”), and a $350.0 million senior unsecured term loan (the “Term Loan”). The Credit Facility refinanced the Company’s existing $300.0 million credit facility (comprised of the $150.0 million Core unsecured revolving line of credit and the $150.0 million term loan), $150.0 million in Core unsecured term loans and repaid a $40.4 million mortgage secured by its 664 North Michigan Property. The Revolver and Term Loans mature on March 31, 2022 and March 31, 2023, respectively. Mortgages Payable During the three months ended March 31, 2018, the Company obtained two new non-recourse Fund mortgages totaling $39.8 million with a weighted-average interest rate of LIBOR + 2.17% collateralized by two properties and maturing in 2021. The Company entered into interest rate swap contracts to effectively fix the variable portion of the interest rates of one of these obligations with a notional value of $16.9 million at an interest rate of 2.41%. During the three months ended March 31, 2018, the Company repaid one Core mortgage in full, which had a total balance of $40.4 million and a weighted-average interest rate of LIBOR + 1.65%, and made scheduled principal payments of $1.9 million. At March 31, 2018 and December 31, 2017, the Company’s mortgages were collateralized by 43 and 42 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 the Company’s Core Portfolio amounted to $26.3 million and was in default at March 31, 2018 and December 31, 2017. This loan bears interest at 6.00%, 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 $32.9 million. The Company’s management believes that the mortgage is not recourse to the Company and that the suit is without merit. Unsecured Notes Payable Unsecured notes payable for which total availability was $65.5 million and $70.3 million at March 31, 2018 and December 31, 2017, respectively, are comprised of the following:
• | As discussed above, the Core unsecured term loans totaling $300.0 million were refinanced in February 2018, into one $350.0 million term loan with an interest rate of LIBOR+1.25% and maturing in March 2023. The outstanding balance of the Core term loans was $350.0 million and $300.0 million, respectively, at March 31, 2018 and December 31, 2017. The Company entered into an interest rate swap contract to effectively fix the variable portion of the interest rate with a notional value of $50.0 million at an interest rate of 2.80%.
• | Fund II has a $40.0 million term loan secured by the real estate assets of City Point Phase II and guaranteed by the Company and the Operating Partnership. The outstanding balance of the Fund II term loan was $31.5 million at each of March 31, 2018 and December 31, 2017. Total availability was $8.5 million, at each of March 31, 2018 and December 31, 2017.
• | At Fund IV there are a $41.8 million bridge facility and a $21.5 million subscription line. The outstanding balance of the Fund IV bridge facility was $40.8 million at each of March 31, 2018 and December 31, 2017. Total availability was $1.0 million at each of March 31, 2018 and December 31, 2017. The outstanding balance of the Fund IV subscription line was $0.0 million and total available credit was $14.1 million at each of March 31, 2018 and December 31, 2017, reflecting letters of credit of $7.4 million.
• | Fund V has a $150.0 million subscription line collateralized by Fund V’s unfunded capital commitments and guaranteed by the Operating Partnership. The outstanding balance and total available credit of the Fund V subscription line was $108.1 million and $41.9 million, respectively at March 31, 2018. The outstanding balance and total available credit of the Fund V subscription line was $103.3 million and $46.7 million, respectively at December 31, 2017.
Unsecured Revolving Line of Credit As discussed above, the Core unsecured revolving line of credit was refinanced in February 2018. The Company had a total of $123.7 million and $96.2 million available under its $150.0 million Core unsecured revolving lines of credit reflecting borrowings of $14.0 million and $41.5 million and letters of credit of $12.3 million at each of March 31, 2018 and December 31, 2017. At March 31, 2018, the Core unsecured revolving line of credit was swapped to a fixed rate. Scheduled Debt Principal Payments The scheduled principal repayments of the Company’s consolidated indebtedness, as of March 31, 2018 are as follows (in thousands):
Year Ending December 31, |
2018 (Remainder) | $ | 52,396 |
2019 | 207,952 |
2020 | 494,608 |
2021 | 113,012 |
2022 | 62,529 |
Thereafter | 537,215 |
| 1,467,712 |
Unamortized fair market value of assumed debt | 830 |
Net unamortized debt issuance costs | (13,259 | )
Total indebtedness | $ | 1,455,283 |
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 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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