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UNSECURED LINES OF CREDIT PAYABLE | 12 Months Ended
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Dec. 31, 2024
Debt Disclosure [Abstract] |
UNSECURED LINES OF CREDIT PAYABLE | NOTE 6: UNSECURED LINES OF CREDIT PAYABLE During 2023, we prepaid the remaining $100.0 million portion of an existing $250.0 million unsecured term loan (the “2018 Term Loan”) and executed an amendment to the Revolving Credit Facility to convert the benchmark interest rate from LIBOR to an adjusted SOFR, with no change in the applicable interest rate margins. The Revolving Credit Facility bore interest at a rate of daily SOFR plus 0.10% plus a margin ranging from 0.70% to 1.40%. In addition, the Revolving Credit Facility required the payment of a facility fee ranging from 0.10% to 0.30% (in each case, depending on Elme Communities’ credit rating) on the $700.0 million committed revolving loan capacity, without regard to usage. During 2024, we entered into a third amended and restated credit agreement (the “Amended Credit Agreement”) which provides for aggregate revolving loan commitments of $500.0 million (the “Amended and Restated Revolving Credit Facility”) with an accordion feature that allows us to increase the aggregate revolving loan commitments or add term loans of up to $1.0 billion, subject to the lenders’ agreement to provide additional revolving commitments or term loans. The Amended and Restated Revolving Credit Facility has a four-year term ending in July 2028, with two six-month extension options. Borrowings under the Amended and Restated Revolving Credit Facility will bear interest, at our option, at a rate of either (a)(i) daily SOFR plus 0.10% (the “Adjusted Daily Simple SOFR”) or (ii) term SOFR plus 0.10%, plus, in each case, a margin ranging from 0.70% to 1.40% (depending on our credit rating) or (b) the base rate plus a margin ranging from 0.00% to 0.40% (based upon our credit rating). The base rate is the highest of the administrative agent’s prime rate, the federal funds rate plus 0.50% and Adjusted Daily Simple SOFR plus 1.0%. In addition, the Amended Credit Agreement requires the payment of a facility fee equal to 0.10% to 0.30% (depending on our credit rating) on the $500.0 million committed capacity in respect of the Amended and Restated Revolving Credit Facility, without regard to usage. The initial interest rate is based on Adjusted Daily Simple SOFR plus a margin of 0.85% and the initial facility fee equals 0.20%. As of December 31, 2024, the interest rate on the Amended and Restated Revolving Credit Facility is based on an adjusted daily SOFR (inclusive of the 0.10% credit spread adjustment) plus 0.85% applicable margin, the daily SOFR is 4.49% and the facility fee is 0.20%. The amount of the Amended and Restated Revolving Credit Facility unused and available at December 31, 2024 was as follows (in thousands):
Committed capacity | $ | 500,000 |
Borrowings outstanding | (176,000) |
Unused and available | $ | 324,000 |
We executed borrowings and repayments on the Revolving Credit Facility and Amended and Restated Revolving Credit Facility during 2024 as follows (in thousands):
Balance, December 31, 2023 | $ | 157,000 |
Borrowings | 158,000 |
Repayments | (139,000) |
Balance, December 31, 2024 | $ | 176,000 |
All outstanding advances for the Amended and Restated Revolving Credit Facility are due and payable upon maturity in July 2028, unless extended pursuant to one or both of the two six-month extension options. Interest only payments are due and payable generally on a monthly basis. For the three years ended December 31, 2024, we recognized interest expense (excluding facility fees) and facility fees as follows (in thousands):
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Interest expense (excluding facility fees) | $ | 10,509 |  |  | $ | 4,419 |  |  | $ | 912 |
Facility fees | 1,229 |  |  | 1,454 |  |  | 1,454 |
The Amended and Restated Revolving Credit Facility contains and the prior unsecured credit facility that it replaced contained certain financial and non-financial covenants, all of which we have met as of December 31, 2024 and 2023. Included in these covenants are limits on our total indebtedness, secured and unsecured indebtedness and required debt service payments. Information related to revolving credit facilities for the three years ended December 31, 2024 as follows (in thousands, except percentage amounts):
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Total revolving credit facilities at December 31 | $ | 500,000 |  |  | $ | 700,000 |  |  | $ | 700,000 |
Borrowings outstanding at December 31 | 176,000 |  |  | 157,000 |  |  | 55,000 |
Weighted average daily borrowings during the year | 169,344 |  |  | 70,578 |  |  | 21,636 |
Maximum daily borrowings during the year | 187,000 |  |  | 164,000 |  |  | 67,000 |
Weighted average interest rate during the year | 6.10 | % |  | 6.17 | % |  | 4.22 | %
Weighted average interest rate on borrowings outstanding at December 31 | 5.26 | % |  | 6.26 | % |  | 5.20 | %
The covenants under our Amended Credit Agreement require us to insure our properties against loss or damage in amounts customarily maintained by similar businesses or as they may be required by applicable law. The covenants for the notes require us to keep all of our insurable properties insured against loss or damage at least equal to their then full insurable value. We have an insurance policy that has no terrorism exclusion, except for non-certified nuclear, chemical and biological acts of terrorism. Our financial condition and results of operations are subject to the risks associated with acts of terrorism and the potential for uninsured losses as the result of any such acts. Effective November 26, 2002, under this existing coverage, any losses caused by certified acts of terrorism would be partially reimbursed by the United States under a formula established by federal law. Under this formula, the United States pays 85% of covered terrorism losses exceeding the statutorily established deductible paid by the insurance provider, and insurers pay 10% until aggregate insured losses from all insurers reach $100 billion in a calendar year. If the aggregate amount of insured losses under this program exceeds $100 billion during the applicable period for all insured and insurers combined, then each insurance provider will not be liable for payment of any amount which exceeds the aggregate amount of $100 billion. On December 20, 2019, The Terrorism Risk Insurance Program Reauthorization Act of 2019 was signed into law, extending the program through December 31, 2027.

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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/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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