DEBT OBLIGATIONS

12 Months Ended

Dec. 31, 2013

NOTE 6—DEBT OBLIGATIONS

Mortgages Payable

At December 31, 2013, there were 51 outstanding mortgages payable, all of which are secured by first liens on individual real estate investments with an aggregate carrying value of $459,760,000 before accumulated depreciation of $57,748,000. After giving effect to the interest rate swap agreements (see Note 7), the mortgage payments bear interest at fixed rates ranging from 3.13% to 8.80%, and mature between 2014 and 2037. The weighted average interest rate on all mortgage debt was 5.22% and 5.25% at December 31, 2013 and 2012, respectively.

Scheduled principal repayments during the next five years and thereafter are as follows (amounts in thousands):

Year Ending December 31,

2014	$	36,172	(a)
2015		14,643
2016		32,679
2017		44,595
2018		18,696
Thereafter		131,260


Total	$	278,045

(a): Includes a $16,261 mortgage loan which bears interest at 5.67% per annum and matures May 1, 2014. In February 2014, the Company refinanced this loan with a $19,750 new mortgage loan bearing interest at 4.75% per annum (with interest only payments for the first five years) and maturing March 2024.

Line of Credit

The Company has a $75,000,000 revolving credit facility with Manufacturer's & Trader's Trust Company, VNB New York Corp., Bank Leumi USA and Israel Discount Bank of New York. This facility matures March 31, 2015 and provides for an interest rate equal to the greater of (i) 90 day LIBOR plus 3% (3.25% at December 31, 2013), and (ii) 4.75% per annum, and an unused facility fee of .25% per annum. At December 31, 2013 and March 12, 2014, there were outstanding balances of $23,250,000 and $12,850,000, respectively, under the facility.

The credit facility includes certain restrictions and covenants which may limit, among other things, the incurrence of liens, and which require compliance with financial ratios relating to, among other things, minimum amount of tangible net worth, minimum amount of debt service coverage, minimum amount of fixed charge coverage, maximum amount of debt to value, minimum level of net income, certain investment limitations and minimum value of unencumbered properties and the number of such properties. The Company was in compliance with all covenants at December 31, 2013.

The facility is guaranteed by subsidiaries of the Company that own unencumbered properties and the Company pledged to the lenders the equity interests in the Company's subsidiaries and delivered to the lenders collateral mortgages with respect to certain unencumbered properties owned by the Company or its subsidiaries. The facility is available for the acquisition of commercial real estate, repayment of mortgage debt, property improvements and general working capital purposes; provided, that if used for property improvements and working capital purposes, the amount outstanding for such purposes will not exceed the lesser of $15 million and 15% of the borrowing base and if used for working capital purposes, will not exceed $10 million. Net proceeds received from the sale, financing or refinancing of properties are generally required to be used to repay amounts outstanding under the credit facility.

- 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+ Details