XML 26 R16.htm IDEA: XBRL DOCUMENT v3.23.2
Debt
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Debt

7. Debt

A summary of the Company’s consolidated indebtedness is as follows (dollars in thousands):

 

 

 

Interest Rate at (a)

 

 

 

Carrying Value at

 

 

June 30,

 

December 31,

 

Maturity Date at

 

June 30,

 

December 31,

 

 

2023

 

2022

 

June 30, 2023

 

2023

 

2022

Mortgages Payable

 

 

 

 

 

 

 

 

 

 

Core Mortgages Payable

 

3.99% - 5.89%

 

3.88% - 5.89%

 

Feb 2024 - Apr 2035

 

$192,844

 

$193,838

Fund II Mortgages Payable

 

SOFR+2.61%

 

SOFR+2.61%

 

Aug 2025

 

137,485

 

133,655

Fund III Mortgages Payable

 

SOFR+3.35%

 

SOFR+3.35%

 

Oct 2023

 

35,970

 

35,970

Fund IV Mortgages and Other Notes Payable (b)

 

LIBOR+2.25% - SOFR+3.65%

 

LIBOR+2.25% - LIBOR+3.65%

 

Jul 2023 - Jun 2026

 

146,622

 

146,230

Total Fund V Mortgages Payable

 

SOFR + 1.61% - SOFR + 2.76%

 

LIBOR + 1.85% - SOFR + 2.76%

 

Jan 2024 - Jun 2028

 

429,544

 

426,224

Net unamortized debt issuance costs

 

 

 

 

 

 

 

(7,409)

 

(7,621)

Unamortized premium

 

 

 

 

 

 

 

292

 

343

Total Mortgages Payable

 

 

 

 

 

 

 

$935,348

 

$928,639

 

 

 

 

 

 

 

 

 

 

 

Unsecured Notes Payable

 

 

 

 

 

 

 

 

 

 

Core Unsecured Term Loans

 

3.57%-5.20%

 

3.74%-5.11%

 

Jun 2026 - Jul 2029

 

$650,000

 

$650,000

Fund V Subscription Facility

 

SOFR+3.05%

 

SOFR+1.86%

 

Nov 2023

 

2,000

 

51,210

Net unamortized debt issuance costs

 

 

 

 

 

 

 

(4,411)

 

(5,076)

Total Unsecured Notes Payable

 

 

 

 

 

 

 

$647,589

 

$696,134

 

 

 

 

 

 

 

 

 

 

 

Unsecured Line of Credit

 

 

 

 

 

 

 

 

 

 

Total Unsecured Line of Credit

 

SOFR+1.45%

 

SOFR+1.50%

 

Jun 2025

 

$180,087

 

$168,287

 

 

 

 

 

 

 

 

 

 

 

Total Debt (c)(d)

 

 

 

 

 

 

 

$1,774,552

 

$1,805,414

Net unamortized debt issuance costs

 

 

 

 

 

 

 

(11,820)

 

(12,697)

Unamortized premium

 

 

 

 

 

 

 

292

 

343

Total Indebtedness

 

 

 

 

 

 

 

$1,763,024

 

$1,793,060

 

 

a)
At June 30, 2023, the stated rates ranged from 4.53% for Core variable-rate debt; SOFR + 2.61% for Fund II variable-rate debt; SOFR + 3.35% for Fund III variable-rate debt; LIBOR + 2.25% to SOFR + 3.65% for Fund IV variable-rate debt; SOFR + 1.61% - SOFR + 2.76% for Fund V variable-rate debt; 3.57% - 5.20% for Core variable-rate unsecured term loans; and SOFR + 1.45% for Core variable-rate unsecured lines of credit.
b)
Includes the outstanding balance on the Fund IV secured bridge facility of $39.2 million at each of June 30, 2023 and December 31, 2022.
c)
Includes $1,251.9 million and $1,264.0 million, respectively, of variable-rate debt that has been fixed with interest rate swap agreements as of the periods presented.
d)
Includes $144.3 million and $103.8 million, respectively, of variable-rate debt that is subject to interest cap agreements as of the periods presented.

 

Credit Facilities

The Operating Partnership has a $700.0 million senior unsecured credit facility, as amended (the “Credit Facility”), with Bank of America, N.A. as administrative agent, comprised of a $300.0 million senior unsecured revolving credit facility (the “Revolver”) which bears interest at a floating rate based on SOFR with margins based on leverage or credit rating, and a $400.0 million senior unsecured term loan (the “Term Loan”) which bears interest at a floating rate based on SOFR with margins based on leverage or credit rating. Currently, the Revolver bears interest at SOFR + 1.50% and the Term Loan bears interest at SOFR + 1.65%. The Revolver matures on June 29, 2025, subject to two six-month extension options, and the Term Loan matures on June 29, 2026. The Credit Facility provides for an accordion feature, which allows for one or more increases in the revolving credit facility or term loan facility, for a maximum aggregate principal amount not to exceed $900.0 million. The Credit Facility is guaranteed by the Company and certain subsidiaries of the Company (Note 9).

On April 6, 2022, the Operating Partnership entered into a $175.0 million term loan facility (the “$175.0 Million Term Loan”), with Bank of America, N.A. as administrative agent, which bears interest at a floating rate based on SOFR with margins based on leverage or credit rating, and which matures on April 6, 2027. The proceeds of the $175.0 million term loan were used to pay down the Revolver. Currently the $175.0 million term loan bears interest at SOFR + 1.60%. The $175.0 million term loan is guaranteed by the Company and certain subsidiaries of the Company (Note 9).

On July 29, 2022, the Operating Partnership entered into the $75.0 million term loan (the “$75.0 Million Term Loan”), with TD Bank, N.A. as administrative agent, which bears interest at a floating rate based on SOFR with margins based on leverage or credit rating and which matures on July 29, 2029. Currently the $75.0 million term loan bears interest at SOFR + 2.05%. The proceeds of the $75.0 million term loan were used to pay down the Revolver. The $75.0 million term loan is guaranteed by the Company and certain subsidiaries of the Company (Note 9).

The Company has entered into various swap agreements to effectively fix its interest costs on a portion of its Revolver and term loans, as described above (Note 8).

Mortgages and Other Notes Payable

During the six months ended June 30, 2023, the Company (amounts represent balances at the time of transactions):

•
extended four Fund mortgages, two of which were extended in the first quarter totaling $58.0 million (excluding principal reductions of $0.2 million), and two of which were extended in the second quarter totaling $61.3 million;
•
refinanced three Fund mortgages in the second quarter totaling $78.4 million; and
•
made scheduled principal payments totaling $3.8 million.

At June 30, 2023 and December 31, 2022, the Company’s mortgages were collateralized by 32 and 31 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. The Operating Partnership has guaranteed up to $50.0 million related to the Fund II City Point mortgage loan. The Company is not in default on any of its loan agreements at June 30, 2023. A portion of the Company’s variable-rate mortgage debt has been effectively fixed through certain cash flow hedge transactions (Note 8).

Fund IV also has an outstanding balance and total available credit on its secured bridge facility of $39.2 million and $0.0 million, respectively, at June 30, 2023 and December 31, 2022. The Operating Partnership has guaranteed up to $22.5 million of the Fund IV secured bridge facility (Note 9).

At June 30, 2023, a Fund V mortgage of $29.2 million, or $5.9 million at the Company’s share, had not met their debt service coverage ratio requirements. The lender may require a cash sweep of property rent until these conditions are remedied unless the Company’s request for a waiver is granted.

On July 15, 2023 a non-recourse Fund IV loan with an outstanding balance of $19.3 million, or $4.5 million at our share, matured and was in default. The loan accrues default interest at a rate of 4.00% per annum in excess of the interest rate (Note 16).

Unsecured Notes Payable

Unsecured notes payable at June 30, 2023 and December 31, 2022 are comprised of the following:

•
The outstanding balance of the Term Loan was $400.0 million at each of June 30, 2023 and December 31, 2022.
•
The outstanding balance of the $175.0 Million Term Loan was $175.0 million at each of June 30, 2023 and December 31, 2022.
•
The outstanding balance of the $75.0 Million Term Loan was $75.0 million at each of June 30, 2023 and December 31, 2022.
•
Fund II refinanced its City Point debt in the third quarter of 2022 (Note 10).
•
Fund V has a $100.0 million subscription line collateralized by Fund V’s unfunded capital commitments, and, to the extent of Acadia’s capital commitments, is guaranteed by the Operating Partnership. On May 1, 2023, Fund V modified its subscription line and extended the maturity date to November 1, 2023. The outstanding balance and total available credit of the Fund V subscription line was $2.0 million and $91.0 million, respectively at June 30, 2023 reflecting outstanding letters of credit of $7.0 million. The outstanding balance and total available credit were $51.2 million and $41.8 million at December 31, 2022, respectively, reflecting outstanding letters of credit of $7.0 million.

Unsecured Revolving Line of Credit

At June 30, 2023 and December 31, 2022, the Company had a total of $119.9 million and $131.7 million available under its Revolver, reflecting borrowings of $180.1 million and $168.3 million, respectively, and no letters of credit outstanding.

Scheduled Debt Principal Payments

The scheduled principal repayments, without regard to available extension options (described further below), of the Company’s consolidated indebtedness, as of June 30, 2023 are as follows (in thousands):

 

Year Ending December 31,

 

 

 

2023 (Remainder)

 

$

154,636

 

2024

 

 

252,756

 

2025

 

 

500,494

 

2026

 

 

436,705

 

2027

 

 

202,788

 

Thereafter

 

 

227,173

 

 

 

 

1,774,552

 

Unamortized premium

 

 

292

 

Net unamortized debt issuance costs

 

 

(11,820

)

Total indebtedness

 

$

1,763,024

 

The table above does not reflect available extension options (subject to customary conditions) on consolidated debt with balances as of June 30, 2023 of $2.0 million contractually due in the remainder of 2023 for which the Company has available options to extend by up to 6 months. However, there can be no assurance that the Company will be able to successfully execute any or all of its available extension options.

See Note 4 for information about liabilities of the Company’s unconsolidated affiliates.