XML 36 R26.htm IDEA: XBRL DOCUMENT v3.23.1
Mortgage Notes Payable, Net (Tables)
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Mortgage Notes Payable
Mortgage notes payable, net as of March 31, 2023 and December 31, 2022 consisted of the following:
Encumbered Properties
Outstanding Loan Amount (1)
Effective Interest Rate
Interest Rate
CountryPortfolioMarch 31,
2023		December 31,
2022
Maturity
(In thousands)(In thousands)
Finland:Finland Properties5$80,496 $79,232 3.8%(2)Fixed/VariableFeb. 2024
Germany:Germany Properties556,021 55,140 3.6%(3)Fixed/VariableJun. 2023
Luxembourg/ The Netherlands:Benelux Properties 3130,534 128,485 1.4%FixedJun. 2024
Total EUR denominated13267,051 262,857 
United Kingdom:McLaren3124,917 122,182 6.0%FixedApr. 2024
United Kingdom Properties - Bulk Loan41194,032 194,320 3.2%(4)Fixed/VariableAug. 2023
Total GBP denominated44318,949 316,502 
United States:Penske Logistics 170,000 70,000 4.7%(5)FixedNov. 2028
Multi-Tenant Mortgage Loan I 10162,580 162,580 4.4%(5)FixedNov. 2027
Multi-Tenant Mortgage Loan II832,750 32,750 4.4%(5)FixedFeb. 2028
Multi-Tenant Mortgage Loan III798,500 98,500 4.9%(5)FixedDec. 2028
Multi-Tenant Mortgage Loan IV1697,500 97,500 4.6%(5)FixedMay 2029
Multi-Tenant Mortgage Loan V12204,000 204,000 3.7%(5)FixedOct. 2029
Total USD denominated54665,330 665,330 
Gross mortgage notes payable
1111,251,330 1,244,689 3.9%
Mortgage discount
(1,003)(1,207)
Deferred financing costs, net of accumulated amortization (6)
(9,532)(10,401)
Mortgage notes payable, net
111$1,240,795 $1,233,081 3.9%

______________
(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 March 31, 2023.
(3)80% fixed as a result of a “pay-fixed” interest rate swap agreement and 20% variable. Variable portion is approximately 1.55% plus 3-month Euribor. Euribor rate in effect as of March 31, 2023.
(4)80% fixed as a result of a “pay-fixed” interest rate swap agreement and 20% variable. Variable portion is approximately 2.0% plus daily SONIA as of January 25, 2022 rate in effect as of March 31, 2023. This loan requires principal repayments which began in October 2020 based on amounts specified under the loan.
(5)The borrowers’ (wholly owned subsidiaries of the OP) 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.
(6)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.
Schedule of Future Principal Payments on Mortgage Notes Payable
The following table presents future scheduled aggregate principal payments on the Company’s gross mortgage notes payable over the next four calendar years and thereafter as of March 31, 2023:
(In thousands)
Future Principal Payments (1)
2023 (remainder) (2)
$250,053 
2024335,947 
2025— 
2026— 
2027162,580 
2028201,250 
Thereafter301,500 
Total$1,251,330 
______
(1)Assumes exchange rates of £1.00 to $1.24 for British Pounds Sterling (“GBP”) and €1.00 to $1.09 for Euros (“EUR”) as of March 31, 2023 for illustrative purposes, as applicable.
(2)This amount is comprised of the mortgage loan that encumbers the Company’s properties in Germany ($56.0 million as of March 31, 2023) and the United Kingdom Properties - Bulk Loan ($194.0 million as of March 31, 2023).
The loan in Germany was paid in full on May 5, 2023 (see Note 15 — Subsequent Events).
In April 2023, the Company made its scheduled principal repayment of £3.8 million ($4.7 million using the exchange rate on the date of repayment) on its United Kingdom Properties - Bulk Loan, which reduced the balance to approximately £153.1 million (approximately $191.4 million as of the end of April 2023) after the payment. The Company intends to repay the entire remaining principal amount of the United Kingdom Properties - Bulk Loan in May 2023, after the filing of this Quarterly Report on Form 10-Q, with additional borrowings in GBP under the Revolving Credit Facility. The 41 properties in the U.K. are expected to be added to the borrowing base of the Revolving Credit Facility.