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Borrowings | 12 Months Ended
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Dec. 31, 2024
Borrowings [Abstract] |
Borrowings | NOTE 13 – BORROWI NGS The Company’s borrowings at December 31, 2024 and 2023, net of deferred financing costs and incorporating the impact of interest rate swaps on our effective interest rates, are summarized below:
|  | As of December 31, 2024
(Dollars in thousands) |  | Maturity Date |  | Contractual ‎Facility |  | Balance, ‎Gross |  | Balance, ‎Net(1) |  | Stated ‎Interest Rate |  | Effective ‎Interest ‎Rate
Denominated in USD |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust Preferred Securities (US) |  | April 30, 2027 |  | $ | 27,913 |  | $ | 27,913 |  | $ | 27,394 |  | 8.85% |  | 8.85%
Bank of America Credit Facility (US) |  | August 18, 2025 |  |  | 14,750 |  |  | 14,750 |  |  | 14,699 |  | 10.50% |  | 10.50%
Cinemas 1, 2, 3 Term Loan (US) |  | April 1, 2025 |  |  | 20,682 |  |  | 20,682 |  |  | 20,594 |  | 9.57% |  | 9.57%
Minetta & Orpheum Theatres Loan (US) |  | June 1, 2025 |  |  | 7,464 |  |  | 7,464 |  |  | 7,446 |  | 7.00% |  | 7.00%
Union Square Financing (US) (4) |  | May 6, 2025 |  |  | 55,000 |  |  | 47,141 |  |  | 47,049 |  | 11.78% |  | 11.78%
Denominated in foreign currency ("FC") (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NAB Corporate Term Loan (AU) |  | July 31, 2026 |  |  | 61,850 |  |  | 61,850 |  |  | 61,740 |  | 6.12% |  | 6.12%
NAB Bridge Facility (AU) |  | April 30, 2025 |  |  | 12,370 |  |  | 12,370 |  |  | 12,361 |  | 6.16% |  | 6.16%
Westpac Bank Corporate (NZ) (3) |  | March 31, 2025 |  |  | 10,543 |  |  | 10,543 |  |  | 10,543 |  | 6.95% |  | 6.95%
|  |  |  | $ | 210,572 |  | $ | 202,713 |  | $ | 201,826 |  |  |  |
(1)Net of deferred financing costs amounting to $0.9 million. (2)The contractual facilities and outstanding balances of the FC-denominated borrowings were translated into U.S. dollars based on exchange rates as of December 31, 2024. (3)This debt was repaid in full on January 31, 2025. See the relevant heading below for discussion regarding this extension. (4)This loan has an option to extend for one year, which is within our control and we intend to exercise.
|  | As of December 31, 2023
(Dollars in thousands) |  | Maturity Date |  | Contractual ‎Facility |  | Balance, ‎Gross |  | Balance, ‎Net(1) |  | Stated ‎Interest ‎Rate |  | Effective ‎Interest ‎Rate
Denominated in USD |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust Preferred Securities (US) |  | April 30, 2027 |  | $ | 27,913 |  | $ | 27,913 |  | $ | 27,172 |  | 9.65% |  | 9.65%
Bank of America Credit Facility (US) |  | September 4, 2024 |  |  | 20,200 |  |  | 20,200 |  |  | 20,080 |  | 11.00% |  | 11.00%
Cinemas 1, 2, 3 Term Loan (US) |  | October 1, 2024 |  |  | 21,008 |  |  | 21,008 |  |  | 20,780 |  | 8.84% |  | 8.84%
Minetta & Orpheum Theatres Loan (US) |  | June 1, 2024 |  |  | 8,000 |  |  | 8,000 |  |  | 8,000 |  | 8.34% |  | 8.34%
U.S. Corporate Office Term Loan (US) |  | January 1, 2027 |  |  | 8,401 |  |  | 8,401 |  |  | 8,356 |  | 4.64% / 4.44% |  | 4.64% / 4.44%
Union Square Financing (US) |  | May 6, 2024 |  |  | 55,000 |  |  | 47,141 |  |  | 46,925 |  | 12.53% |  | 12.53%
Purchase Money Promissory Note (US) |  | September 18, 2024 |  |  | 586 |  |  | 586 |  |  | 586 |  | 5.00% |  | 5.00%
Denominated in foreign currency ("FC")(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
NAB Corporate Term Loan (AU) |  | July 31, 2025 |  |  | 68,276 |  |  | 68,276 |  |  | 68,173 |  | 6.11% |  | 6.11%
Westpac Bank Corporate (NZ) |  | January 1, 2025 |  |  | 8,775 |  |  | 8,775 |  |  | 8,775 |  | 8.20% |  | 8.20%
Total |  |  |  | $ | 218,159 |  | $ | 210,300 |  | $ | 208,847 |  |  |  |
(1)Net of deferred financing costs amounting to $1.5 million. (2)The contractual facilities and outstanding balances of the FC-denominated borrowings were translated into U.S. dollars based on exchange rates as of December 31, 2023. Our loan arrangements are presented, net of the deferred financing costs, on the face of our consolidated balance sheet as follows:
(Dollars in thousands) |  | December 31,
Balance Sheet Caption |  | 2024 |  | 2023
Debt - current portion |  | $ | 69,193 |  | $ | 34,484
Debt - long-term portion |  |  | 105,239 |  |  | 146,605
Subordinated debt - current portion |  |  | -- |  |  | 586
Subordinated debt - long-term portion |  |  | 27,394 |  |  | 27,172
Total borrowings |  | $ | 201,826 |  | $ | 208,847
Debt denominated in USD Trust Preferred Securities (“TPS”) On February 5, 2007, we issued $51.5 million in 20-year fully subordinated notes to a trust over which we have significant influence, which in turn issued $51.5 million in securities. Of the $51.5 million, $50.0 million in TPS were issued to unrelated investors in a private placement and $1.5 million of common trust securities were issued by the trust to Reading called “Investment in Reading International Trust I” on our balance sheets. Effective May 1, 2012, the interest rate on our Trust Preferred Securities changed from a fixed rate of 9.22%, which was in effect for five years, to a variable rate of three month LIBOR plus 4.00%, which will reset each quarter through the end of the loan unless we exercise our right to re-fix the rate at the current market rate at that time. There are no principal payments due until maturity in 2027 when the notes and the trust securities are scheduled to be paid in full. We may pay off the debt after the first five years at 100% of the principal amount without any penalty. The trust is essentially a pass through, and the transaction is accounted for on our books as the issuance of fully subordinated notes. The credit facility includes a number of affirmative and negative covenants designed to monitor our ability to service the debt. The most restrictive covenant of the facility requires that we must maintain a fixed charge coverage ratio at a certain level. However, on December 31, 2008, we secured a waiver of all financial covenants with respect to our TPS for a period of nine years (through December 31, 2017), in consideration of the payment of $1.6 million, consisting of an initial payment of $1.1 million, a payment of $270,000 made in December 2011, and a payment of $270,000 in December 2014. The covenant waiver expired January 1, 2018, after which a further covenant waiver was secured on October 11, 2018 for the remaining term of the loan, in consideration of payments totaling $1.6 million, consisting of an initial payment of $1.1 million paid on October 31, 2018, and a further payment made of $270,000 in October 2021 and $225,000 payable in October 2025. During the first quarter of 2009, we took advantage of the then current market illiquidity for securities such as our TPS to repurchase $22.9 million in face value of those securities through an exchange of $11.5 million worth of marketable securities purchased during the period for the express purpose of executing this exchange transaction with the third-party holder of these TPS. During the twelve months ended 2009, we amortized $106,000 of discount to interest income associated with the holding of these securities prior to their extinguishment. On April 30, 2009, we extinguished $22.9 million of these TPS, which resulted in a gain on retirement of subordinated debt (TPS) of $10.7 million net of loss on the associated write-off of deferred loan costs of $749,000 and a reduction in our Investment in Reading International Trust I from $1.5 million to $838,000. During the year ended December 31, 2024, we paid preferred dividends that are included in interest expense to unrelated investors of $2.6 million. We paid $2.5 million in 2023 and paid $1.4 million in 2022. At December 31, 2024 and 2023, we had preferred dividends payable of $406,000 and $443,000, respectively. Interest payments for this loan are required every three months. Bank of America Credit Facility As at December 31, 2023, our Bank of America facility matured on September 4, 2024, following a Q1 2023 loan modification, which, among other things, extended the maturity date from March 1, 2024 to September 4, 2024. We amended this facility on March 27, 2024, to among other terms and conditions, (i) extend the Maturity Date to August 18, 2025, (ii) require a $275,000 principal paydown, (iii) eliminate the minimum liquidity covenant, (iv) reduce the principal amortization amounts and provide a principal holiday period, and (v) require certain paydowns on the sale of certain real estate assets. Interest is charged at 2.5% above the Bank of America Prime rate, which itself has a floor of 1.0%. Payment-in-kind interest at a rate of 0.5% commenced on January 1, 2024, and continued until December 31, 2024, increasing to 1.5% on January 1, 2025, until the facility is repaid in full. This loan is subject to mandatory prepayment out of a portion of the net proceeds realized by us in the event that we determine to sell certain specified assets. In October 2024, we amended this facility to defer the monthly principal payments required in October, November and December, to the end of 2024. All deferred payments were made as contracted. Cinemas 1,2,3 Term Loan and Line of Credit Our Cinemas 1,2,3 Term Loan is held by Sutton Hill Properties LLC (“SHP”), a 75% owned subsidiary of RDI. On September 29, 2023, we extended the maturity of this loan from October 3, 2023, to October 1, 2024, and subsequently executed our six month option to extend this maturity to April 1, 2025. The loan is with Valley National Bank, carries an interest rate of 5.0% above monthly SOFR, with a floor of 7.50%, and includes provisions for a prepaid interest reserve. On February 26, 2025 we exercised our option to extend our Valley National debt to October 1, 2025. See Note 22 – Subsequent Events. The related party aspect of this loan is discussed at Note 21 – Related Parties. Minetta and Orpheum Theatres Loan On November 1, 2023, our $8.0 million loan with Santander Bank, which is secured by our Minetta and Orpheum Theatres, matured. On August 1, 2024, we extended the maturity of this loan to June 1, 2025. The loan now requires monthly principal and interest payments with a balloon payment of $7.7 million on maturity and carries an interest rate of 7.0%. Union Square Financing On May 7, 2021, we closed on a new three-year $55.0 million loan facility with Emerald Creek Capital secured by our 44 Union Square property and certain limited guarantees. Following the phase out of LIBOR, the facility bears a variable interest rate of TERM SOFR plus 6.9% and includes provisions for a prepaid interest and property tax reserve fund. The loan has one remaining 12-month option to extend the maturity to May 6, 2026, and may be repaid at any time, without the payment of any premium. As this option is within our control, we continue to keep the loan classified as long-term. Debt extinguished during 2024 U.S. Corporate Office Term Loan We repaid this $8.4 million loan in full in February 2024, with a portion of the proceeds from the sale of our Culver City office building. Purchase Money Promissory Note On September 18, 2019, we purchased 407,000 Company shares in a privately negotiated transaction under our Share Repurchase Program for $5.5 million. Of this amount, $3.5 million was paid by the issuance of a Purchase Money Promissory Note, which bears an interest rate of 5.0% per annum, payable in equal quarterly payments of principal plus accrued interest. The Purchase Money Promissory Note matured on September 18, 2024, with the final principal payment made on that date. Debt denominated in foreign currencies Australian NAB Corporate Loan Facility and Bridge Loan Prior to March 31, 2024, our Revolving Corporate Markets Loan Facility with National Australia Bank (“NAB”) matured on July 31, 2025. It consisted of (i) an AU$100.0 million Corporate Loan facility at 1.75% above BBSY, of which AU $60.0 million was revolving and AU$40.0 million was core and (ii) a Bank Guarantee Facility of AU$5.0 million at a rate of 1.9% per annum. On April 4, 2024, we amended this facility, which now matures on July 31, 2026. As part of the amendment, we obtained an additional AU$20.0 million bridge facility which matures on March 31, 2025 (or earlier, upon the sale of certain assets), and modified certain covenants. We are also required, from March 31, 2025, to make quarterly repayments of AU$1.5 million against the AU$100.0 million Corporate Loan facility, until maturity date, representing permanent reductions in that facility’s ceiling. The bank guarantee facility was reduced to AU$3.0 million. No other changes were made. On December 17, 2024, we extended the maturity date of the bridge facility to April 30, 2025. Effective June 28, 2024, we entered into an Interest Rate Hedging Agreement with NAB on AU$50.0 million of the Corporate Loan Facility. The Interest Rate Collar has a floor of 4.18% and a cap of 4.78%, and terminates on July 31, 2026. New Zealand Westpac Bank Corporate Credit Facility As of December 31, 2023, our Westpac Corporate Credit Facility for NZ$13.8 million matured on January 1, 2025. The facility carried an interest rate and line of credit charge of 2.40% above the Bank Bill Bid Rate and 1.65% respectively. Westpac waived the requirement to test certain covenants for each quarter since the third quarter of 2020, including the quarter ending December 31, 2024. On August 13, 2024, we increased the limit on this facility by NZ$5.0 million to NZ$18.8 million. On December 20, 2024, we extended the maturity date to March 31, 2025. On January 31, 2025, we repaid this loan in full using a portion of the proceeds from the monetization of our Wellington assets including Courtenay Central. Aggregate amount of future principal debt payments As of December 31, 2024, our aggregate amount of future principal debt payments is estimated as follows:
(Dollars in thousands) |  | Future ‎Principal ‎Debt Payments
2025 |  | $ | 69,520
2026 |  |  | 105,280
2027 |  |  | 27,913
2028 |  |  | --
2029 |  |  | --
Thereafter |  |  | --
Total future principal debt payments |  | $ | 202,713
The estimated amount of future principal payments in U.S. dollars is subject to change because the payments in U.S. dollars on the debt denominated in foreign currencies, which represent a significant portion of our total outstanding debt balance, will fluctuate based on the applicable foreign currency exchange rates.

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