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Mortgage and Other Indebtedness, Net (Tables)
 9 Months Ended
Sep. 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:

 

 

September 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)

 

$

179,415

 

 

 

6.95

%

 

$

180,000

 

 

 

6.95

%

Non-recourse loans on operating properties

 

 

746,548

 

 

 

5.30

%

 

 

843,634

 

 

 

4.90

%

Total fixed-rate debt

 

 

925,963

 

 

 

5.62

%

 

 

1,023,634

 

 

 

5.26

%

Variable-rate debt:

 

 

 

 

 

 

 

 

 

 

 

 

Secured term loan (3)

 

 

802,645

 

 

 

8.19

%

 

 

829,452

 

 

 

6.87

%

Open-air centers and outparcels loan (2)

 

 

179,415

 

 

 

9.43

%

 

 

180,000

 

 

 

8.22

%

Non-recourse loans on operating properties

 

 

54,915

 

 

 

8.47

%

 

 

56,490

 

 

 

7.26

%

Total variable-rate debt

 

 

1,036,975

 

 

 

8.42

%

 

 

1,065,942

 

 

 

7.12

%

Total fixed-rate and variable-rate debt

 

 

1,962,938

 

 

 

7.10

%

 

 

2,089,576

 

 

 

6.21

%

Unamortized deferred financing costs

 

 

(14,264

)

 

 

 

 

 

(17,101

)

 

 

 

Debt discounts (4)

 

 

(48,201

)

 

 

 

 

 

(72,289

)

 

 

 

Total mortgage and other indebtedness, net

 

$

1,900,473

 

 

 

 

 

$

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 September 30, 2023, the Principal Liability Cap had been reduced to $118,444. 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%. Subsequent to September 30, 2023, the limited guaranty was eliminated. See Note 15 for more information.
(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 September 30, 2023 will be accreted over a weighted average period of 2.4 years.
Schedule of Pre-Emergence Principal Payments

As of September 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)

 

$

28,904

 

2024

 

 

237,629

 

2025

 

 

900,544

 

2026

 

 

373,280

 

2027

 

 

359,726

 

2028

 

 

950

 

Thereafter

 

 

61,905

 

Total mortgage and other indebtedness

 

$

1,962,938

 
(1)
Reflects scheduled principal amortization and balloon payments for the fiscal period October 1, 2023 through December 31, 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 September 30, 2023

 

 

Maturity Date

Pay fixed/Receive variable swap

 

Intangible lease assets and other assets

 

$

32,000

 

 

1-month USD-SOFR CME

 

$

1,210

 

 

Jun-27

 

 

 

Gain Recognized in Other Comprehensive Income (Loss)

 

 

 

 

Gain Recognized in Earnings

 

 

 

Three Months Ended September 30,

 

 

 

 

Three Months Ended September 30,

 

Hedging Instrument

 

2023

 

 

2022

 

 

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

 

2023

 

 

2022

 

Interest rate swap

 

$

330

 

 

$

—

 

 

Interest Expense

 

$

158

 

 

$

—

 

 

 

 

Gain Recognized in Other Comprehensive Income (Loss)

 

 

 

 

Gain Recognized in Earnings

 

 

 

Nine Months Ended September 30,

 

 

 

 

Nine Months Ended September 30,

 

Hedging Instrument

 

2023

 

 

2022

 

 

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

 

2023

 

 

2022

 

Interest rate swap

 

$

1,210

 

 

$

—

 

 

Interest Expense

 

$

253

 

 

$

—