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Mortgage Notes Payable, Net (Tables)
 9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
Mortgage notes payable, net as of September 30, 2019 and December 31, 2018 consisted of the following:
 
 
 
 
Encumbered Properties
 
Outstanding Loan Amount (1)
 
Effective Interest Rate
 
Interest Rate
 
 
Country
 
Portfolio
 
 
September 30,
2019
 
December 31,
2018
 
 
 
Maturity
 
 
 
 
 
 
(In thousands)
 
(In thousands)
 
 
 
 
 
 
Finland:
 
Finnair (8)
 
—
 
$
—

 
$
32,501

 
—%
 
—

 
—

 
 
Tokmanni (8)
 
—
 
—

 
33,159

 
—%
 
—

 
—

 
 
Finland
 
5
 
80,785

 
—

 
1.7%
(2) 
Fixed/Variable
 
Feb. 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
France:
 
Auchan
 
1
 
9,061

 
9,498

 
1.7%
(3) 
Fixed
 
Dec. 2019
 
 
Pole Emploi
 
1
 
6,332

 
6,637

 
1.7%
(3) 
Fixed
 
Dec. 2019
 
 
Sagemcom
 
1
 
39,192

 
41,083

 
1.7%
(3) 
Fixed
 
Dec. 2019
 
 
Worldline
 
1
 
5,458

 
5,722

 
1.9%
(3) 
Fixed
 
Jul. 2020
 
 
DCNS
 
1
 
10,371

 
10,872

 
1.5%
(3) 
Fixed
 
Dec. 2020
 
 
ID Logistics II
 
2
 
11,463

 
12,016

 
1.3%
 
Fixed
 
Jun. 2021
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Germany
 
Rheinmetall (9)(10)
 
—
 
—

 
12,130

 
—%

—

 
—

 
 
OBI DIY (9)(10)
 
—
 
—

 
5,150

 
—%
 
—

 
—

 
 
RWE AG
 
3
 
68,231

 
71,524

 
1.6%
(3) 
Fixed
 
Oct. 2019 (14)
 
 
Rexam (11)
 
—
 
—

 
5,876

 
—%

—

 
—

 
 
Metro Tonic (11)
 
—
 
—

 
30,326

 
—%
 
—

 
—

 
 
ID Logistics I (11)
 
—
 
—

 
4,578

 
—%
 
—

 
—

 
 
Germany
 
5
 
56,222

 
—

 
2.0%
(13) 
Fixed/Variable
 
Jun. 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Luxembourg:
 
DB Luxembourg (12)
 
—
 
—

 
41,198

 
—%
 
—

 
—

The Netherlands:
 
ING Amsterdam (12)
 
—
 
—

 
50,353

 
—%
 
—

 
—

Luxembourg/ The Netherlands
 
Benelux
 
3
 
131,004

 
—

 
1.4%
 
Fixed
 
Jun. 2024
 
 
Total EUR denominated
 
23
 
418,119

 
372,623

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United Kingdom:
 
UK Multi-Property Cross Collateralized Loan
 
42
 
274,512

 
292,890

 
3.2%
(4) 
Fixed/Variable
 
Aug. 2023
 
 
Total GBP denominated
 
42
 
274,512

 
292,890

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States:
 
Quest Diagnostics (5)
 
—
 
—

 
52,800

 
—%
 
—

 
—

 
 
AT&T Services (5)
 
—
 
—

 
33,550

 
—%
 
—

 
—

 
 
Penske Logistics (6)
 
1
 
70,000

 
70,000

 
4.7%
 
Fixed
 
Nov. 2028
 
 
Multi-Tenant Mortgage Loan I (6)
 
12
 
187,000

 
187,000

 
4.4%
 
Fixed
 
Nov. 2027
 
 
Multi-Tenant Mortgage Loan II
 
8
 
32,750

 
32,750

 
4.4%
 
Fixed
 
Feb. 2028
 
 
Multi-Tenant Mortgage Loan III
 
7
 
98,500

 
98,500

 
4.9%
 
Fixed
 
Dec. 2028
 
 
Multi-Tenant Mortgage Loan IV
 
16
 
97,500

 
—

 
4.6%
 
Fixed
 
May 2029
 
 
Multi-Tenant Mortgage Loan V
 
12
 
204,000

 
—

 
3.7%
 
Fixed
 
Oct. 2029
 
 
Total USD denominated
 
56
 
689,750

 
474,600

 
 
 
 
 
 
 
 
Gross mortgage notes payable
 
121
 
1,382,381

 
1,140,113

 
3.3%
 
 
 
 
 
 
Mortgage discount
 
 
 
(53
)
 
(569
)
 
 
 
 
 
 
 
 
Deferred financing costs, net of accumulated amortization (7)
 
 
 
(15,510
)
 
(9,737
)
 
 
 
 
 
 
 
 
Mortgage notes payable, net
 
121
 
$
1,366,818

 
$
1,129,807

 
3.3%
 
 
 
 







_______________________________
(1) 
Amounts borrowed in local currency and translated at the spot rate in effect at the applicable reporting date.
(2) 
80% fixed as a result of a “pay-fixed” interest rate swap agreement and 20% variable. Variable portion is approximately 1.4% plus 3-month Euribor. Euribor rate in effect as of September 30, 2019.
(3) 
Fixed as a result of a “pay-fixed” interest rate swap agreement.
(4) 
80% fixed as a result of a “pay-fixed” interest rate swap agreement and 20% variable. Variable portion is approximately 2.0% plus 3-month GBP LIBOR. LIBOR rate in effect as of September 30, 2019.
(5) 
This loan was refinanced in September 2019 as part of the Multi-Tenant Mortgage Loan V.
(6) 
The borrower’s (wholly owned subsidiaries of the Company) financial statements are included within the Company’s consolidated financial statements, however, the borrowers’ assets and credit are only available to pay the debts of the borrowers and their liabilities constitute obligations of the borrowers.
(7) 
Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or paid down before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close.
(8) 
These loans were refinanced in February 2019 as part of the Finland Refinancing (see below for further details).
(9) 
These loans were repaid in full upon maturity in January 2019.
(10) 
These loans were refinanced in May 2019 as part of the German Refinancing (see below for further details).
(11) 
These loans were refinanced in May 2019 as part of the German Refinancing (see below for further details).
(12) 
These loans were refinanced in June 2019 as part of the Benelux Refinancing (see below for further details).
(13) 
The loan initially bore interest at a rate of 3-month Euribor plus 1.80% per annum, but, following the replacement of an easement on one property, the loan will bear interest going forward at a rate of Euribor plus 1.55% per annum beginning on October 1, 2019. 80% fixed as a result of a “pay-fixed” interest rate swap agreement and 20% variable.
(14) 
The Company was under contract to sell these three properties in Germany as of September 30, 2019. This mortgage loan was originally scheduled to mature in October 2019. However, during October 2019 the Company negotiated an extension of the maturity date to December 2019, to coincide with the expected closing date of the three mortgaged properties.
Schedule of Maturities of Long-term Debt
The following table presents future scheduled aggregate principal payments on the Company’s gross mortgage notes payable over the next five calendar years and thereafter as of September 30, 2019:
(In thousands)
 
Future Principal Payments (1)
2019 (remainder)
 
$
122,816

2020
 
18,342

2021
 
23,762

2022
 
19,046

2023
 
296,877

2024
 
211,789

Thereafter
 
689,749

Total
 
$
1,382,381

_________________________
(1) 
Assumes exchange rates of £1.00 to $1.23 for GBP and €1.00 to $1.09 for EUR as of September 30, 2019 for illustrative purposes, as applicable.