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Mortgage and Other Indebtedness, Net (Tables)
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Pre-Emergence Net Mortgage Notes Payable

The Company’s mortgage and other indebtedness, net, consisted of the following:

 

 

June 30, 2023

 

 

December 31, 2022

 

 

 

Amount

 

 

Weighted-
Average
Interest
Rate (1)

 

 

Amount

 

 

Weighted-
Average
Interest
Rate (1)

 

Fixed-rate debt:

 

 

 

 

 

 

 

 

 

 

 

 

Open-air centers and outparcels loan (2)

 

$

180,000

 

 

 

6.95

%

 

$

180,000

 

 

 

6.95

%

Non-recourse loans on operating properties

 

 

783,501

 

 

 

5.29

%

 

 

843,634

 

 

 

4.90

%

Total fixed-rate debt

 

 

963,501

 

 

 

5.60

%

 

 

1,023,634

 

 

 

5.26

%

Variable-rate debt:

 

 

 

 

 

 

 

 

 

 

 

 

Secured term loan (3)

 

 

813,038

 

 

 

7.92

%

 

 

829,452

 

 

 

6.87

%

Open-air centers and outparcels loan (2)

 

 

180,000

 

 

 

9.26

%

 

 

180,000

 

 

 

8.22

%

Non-recourse loans on operating properties

 

 

55,440

 

 

 

8.30

%

 

 

56,490

 

 

 

7.26

%

Total variable-rate debt

 

 

1,048,478

 

 

 

8.17

%

 

 

1,065,942

 

 

 

7.12

%

Total fixed-rate and variable-rate debt

 

 

2,011,979

 

 

 

6.94

%

 

 

2,089,576

 

 

 

6.21

%

Unamortized deferred financing costs

 

 

(15,407

)

 

 

 

 

 

(17,101

)

 

 

 

Debt discounts (4)

 

 

(54,523

)

 

 

 

 

 

(72,289

)

 

 

 

Total mortgage and other indebtedness, net

 

$

1,942,049

 

 

 

 

 

$

2,000,186

 

 

 

 
(1)
Weighted-average interest rate excludes amortization of deferred financing costs.
(2)
The Operating Partnership has an interest rate swap on a notional amount of $32,000 related to the variable portion of the loan to effectively fix the interest rate at 7.3975%.
(3)
The Operating Partnership provided a limited guaranty up to a maximum of $175,000 (the “Principal Liability Cap”). The Principal Liability Cap will be reduced by an amount equal to 100% of the first $2,500 in principal amortization made by HoldCo I each calendar year and will be reduced further by 50% of the principal amortization payments made by HoldCo I each calendar year in excess of the first $2,500 in principal amortization for such calendar year. As of June 30, 2023, the Principal Liability Cap had been reduced to $127,390. The Principal Liability Cap is eliminated when the loan balance is reduced below $650,000, or if at any time after November 1, 2023, the debt yield ratio is greater than 15.0%.
(4)
In conjunction with fresh start accounting, the Company estimated the fair value of its mortgage notes with the assistance of a third-party valuation advisor. This resulted in recognizing debt discounts upon emerging from bankruptcy. The debt discounts are accreted over the term of the respective debt using the effective interest method. The remaining debt discounts at June 30, 2023 will be accreted over a weighted average period of 2.6 years.
Schedule of Pre-Emergence Principal Payments

As of June 30, 2023, the scheduled principal amortization and balloon payments of the Company’s consolidated debt, excluding extensions available at the Company’s option, on all mortgage and other indebtedness, are as follows:

2023 (1)

 

$

39,522

 

2024

 

 

237,646

 

2025

 

 

908,717

 

2026

 

 

373,682

 

2027

 

 

360,896

 

2028

 

 

950

 

Thereafter

 

 

61,905

 

Total

 

 

1,983,318

 

Principal balance of a loan with a maturity date prior to June 30, 2023 (2)

 

 

28,661

 

Total mortgage and other indebtedness

 

$

2,011,979

 
(1)
Reflects scheduled principal amortization and balloon payments for the fiscal period July 1, 2023 through December 31, 2023.
(2)
Represents the principal balance as of June 30, 2023 of the loan secured by WestGate Mall, which is in maturity default. The Company is in discussions with the lender. The loan matured in July 2022 and had a balance of $28,661 as of June 30, 2023.
Schedule of Effective Portion of Changes In The Fair Value of Derivatives Designated As, and That Qualify As, Cash Flow Hedges

The effective portion of changes in the fair value of derivatives designated as, and that qualify as, cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Such derivatives were used to hedge the variable cash flows associated with variable-rate debt.

Instrument Type

 

Location in the Condensed Consolidated Balance Sheet

 

Notional

 

 

Index

 

Fair Value at June 30, 2023

 

 

Maturity Date

Pay fixed/Receive variable swap

 

Intangible lease assets and other assets

 

$

32,000

 

 

1-month USD-SOFR CME

 

$

880

 

 

Jun-27

 

 

 

Gain Recognized in Other Comprehensive Income (Loss)

 

 

 

 

Gain Recognized in Earnings

 

 

 

Three Months Ended June 30,

 

 

 

 

Three Months Ended June 30,

 

Hedging Instrument

 

2023

 

 

2022

 

 

Location of Gain Reclassified from Accumulated Other Comprehensive Income (Loss) into Earnings

 

2023

 

 

2022

 

Interest rate swap

 

$

880

 

 

$

—

 

 

Interest Expense

 

$

95

 

 

$

—

 

 

 

 

Gain Recognized in Other Comprehensive Income (Loss)

 

 

 

 

Gain Recognized in Earnings

 

 

 

Six Months Ended June 30,

 

 

 

 

Six Months Ended June 30,

 

Hedging Instrument

 

2023

 

 

2022

 

 

Location of Gain Reclassified from Accumulated Other Comprehensive Income (Loss) into Earnings

 

2023

 

 

2022

 

Interest rate swap

 

$

880

 

 

$

—

 

 

Interest Expense

 

$

95

 

 

$

—