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DEBT OBLIGATIONS
 12 Months Ended
Dec. 31, 2023
DEBT OBLIGATIONS  
DEBT OBLIGATIONS

NOTE 8 — DEBT OBLIGATIONS

​

Mortgages Payable

​

The following table details the Mortgages payable, net, balances per the consolidated balance sheets (amounts in thousands):

​

​

​

​

​

​

​

​

​

December 31, 

​

​

2023

    

2022

Mortgages payable, gross

​

$

422,565

​

$

409,175

Unamortized deferred financing costs

​

​

(3,414)

​

 

(3,355)

Unamortized mortgage intangible assets (a)

​

​

(804)

​

​

(658)

Mortgages payable, net

​

$

418,347

​

$

405,162

(a)In connection with the assumption of two below-market mortgages upon the acquisition of the Northwood, Ohio and Blythewood, South Carolina properties (see Note 4).

​

At December 31, 2023, there were 68 outstanding mortgages payable, all of which are secured by first liens on individual real estate investments with an aggregate gross carrying value of $670,157,000 before accumulated depreciation of $127,325,000. After giving effect to interest rate swap agreements (see Note 9), the mortgage payments bear interest at fixed rates ranging from 3.05% to 8.40% and mature between 2024 and 2047. The weighted average interest rate on all mortgage debt was 4.31% and 4.10% at December 31, 2023 and 2022, respectively.

​

Scheduled principal repayments during the years indicated are as follows (amounts in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ending December 31,

    

2024

    

2025

    

2026

    

2027

    

2028

    

Thereafter

    

Total

Amortization payments

​

$

11,873

​

$

10,627

​

$

10,491

​

$

9,399

​

$

8,718

​

$

34,283

​

$

85,391

Principal due at maturity

​

 

49,906

​

 

30,850

​

 

19,179

​

 

38,524

​

 

30,155

​

 

168,560

​

 

337,174

Total

​

$

61,779

​

$

41,477

​

$

29,670

​

$

47,923

​

$

38,873

​

$

202,843

​

$

422,565

​

NOTE 8 — DEBT OBLIGATIONS (CONTINUED)

​

Line of Credit

​

The Company’s credit facility with Manufacturers and Traders Trust Company and VNB New York, LLC, provides that it may borrow up to $100,000,000, subject to borrowing base requirements. The facility is available for the acquisition of commercial real estate, repayment of mortgage debt, and renovation and operating expense purposes; provided, that if used for renovation and operating expense purposes, the amount outstanding for such purposes will not exceed the lesser of $40,000,000 and 40% of the borrowing base. 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. The facility is guaranteed by subsidiaries of the Company that own unencumbered properties and the Company is required to pledge to the lenders the equity interests in such subsidiaries.

​

The facility, which matures December 31, 2026, provides for an interest rate equal to 30-day SOFR plus an applicable margin ranging from 175 basis points to 275 basis points depending on the ratio of the Company’s total debt to total value, as determined pursuant to the facility. The applicable margin was 175 basis points at December 31, 2023 and 2022. An unused facility fee of .25% per annum applies to the facility. The weighted average interest rate on the facility was approximately 6.69%, 3.42% and 1.86% during 2023, 2022 and 2021, respectively.

​

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, the minimum amount of tangible net worth, the minimum amount of debt service coverage, the minimum amount of fixed charge coverage, the maximum amount of debt to value, the minimum level of net income, certain investment limitations and the minimum value of unencumbered properties and the number of such properties. The Company was in compliance with all covenants at December 31, 2023.

​

The following table details the Line of credit, net, balances per the consolidated balance sheets (amounts in thousands):

​

​

​

​

​

​

​

​

​

​

December 31, 

​

​

2023

    

 

2022

Line of credit, gross

​

$

—

​

​

$

21,800

Unamortized deferred financing costs

​

​

—

(a)

​

​

(732)

Line of credit, net

​

$

—

​

​

$

21,068

(a)In accordance with ASU 2015-15, the Company reclassified the $549 balance of unamortized deferred financing costs to other assets and receivables on the consolidated balance sheet at December 31, 2023, as there was no balance outstanding on the Line of credit.

​

At each of December 31, 2023 and March 1, 2024, $100,000,000 was available to be borrowed under the facility, including an aggregate of up to $40,000,000 available for renovation and operating expense purposes.

​

Deferred Financing Costs

​

Mortgage and credit line costs are deferred and amortized on a straight-line basis over the terms of the respective debt obligations, which approximates the effective interest method. At December 31, 2023 and 2022, accumulated amortization of such costs was $5,298,000 and $4,791,000, respectively. The Company generally presents unamortized deferred financing costs as a direct deduction from the carrying amount of the associated debt liability.