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Mortgage Loans Payable And Unsecured Credit Facilities | 12 Months Ended
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Dec. 31, 2014
Mortgage Loans Payable And Unsecured Credit Facilities [Abstract] |
Mortgage Loans Payable And Unsecured Credit Facilities | Note 10. Mortgage Loans Payable and Unsecured Credit Facilities Debt relating to continuing operations is comprised of the following at December 31, 2014 and 2013:
|  | December 31, 2014 |  | December 31, 2013
|  |  |  | Interest rates |  |  |  | Interest rates
|  | Balance |  | Weighted |  |  |  | Balance |  | Weighted |  |
Description |  | outstanding |  | average |  | Range |  | outstanding |  | average |  | Range
Fixed-rate mortgages |  | $ 393,388,000 |  | 5.4% |  | 3.1% - 7.5% |  | $ 458,207,000 |  | 5.5% |  | 3.1% - 7.5%
Variable-rate mortgage |  | - |  | - |  |  |  | 58,085,000 |  | 2.9% |  |
Total property-specific mortgages |  | 393,388,000 |  | 5.4% |  |  |  | 516,292,000 |  | 5.2% |  |
Unsecured credit facilities: |  |  |  |  |  |  |  |  |  |  |  |
Revolving facility |  | 72,000,000 |  | 1.9% |  |  |  | 153,500,000 |  | 2.3% |  |
Term loan |  | 50,000,000 |  | 1.9% |  |  |  | 50,000,000 |  | 2.3% |  |
Term loan |  | 75,000,000 |  | 3.2% |  |  |  | - |  | - |  |
Term loan |  | 75,000,000 |  | 4.1% |  |  |  | - |  | - |  |
|  | 272,000,000 |  | 2.8% |  |  |  | 203,500,000 |  | 2.3% |  |
|  | $ 665,388,000 |  | 4.3% |  |  |  | $ 719,792,000 |  | 4.3% |  |
Mortgage Loans P ayable Mortgage loan activity for 2014 and 2013 is summarized as follows:
|  | Years ended December 31,
|  | 2014 |  | 2013
Balance, beginning of year |  | $ 516,292,000 |  | $ 589,168,000
Mortgages on properties held for sale |  | (15,249,000) |  | -
Mortgage loan assumptions |  | 53,439,000 |  | -
Repayments |  | (161,094,000) |  | (72,876,000)
Balance, end of the year |  | $ 393,388,000 |  | $ 516,292,000
During 2014 and 2013, the Company repaid the following mortgage loans payable:
|  | Repayment |  | Maturity |  | Principal Payoff
Property |  | Date |  | Date |  | Amount
2014 |  |  |  |  |  |
Virginia Little Creek |  | February 3, 2014 |  | September 1, 2021 |  | $ 295,000
Upland Square |  | February 11, 2014 |  | October 26, 2014 |  | $ 57,839,000
Kings Plaza |  | April 1, 2014 |  | July 1, 2014 |  | $ 7,188,000
Coliseum Marketplace |  | April 1, 2014 |  | July 1, 2014 |  | $ 11,045,000
Liberty Marketplace |  | April 1, 2014 |  | July 1, 2014 |  | $ 8,171,000
Trexler Mall |  | May 11, 2014 |  | May 11, 2014 |  | $ 19,479,000
Yorktowne Plaza |  | June 2, 2014 |  | July 1, 2014 |  | $ 18,726,000
Quartermaster Plaza |  | June 5, 2014 |  | October 1, 2014 |  | $ 11,217,000
Fieldstone Marketplace |  | July 11, 2014 |  | July 11, 2014 |  | $ 16,878,000
Mechanicsburg Center |  | August 1, 2014 |  | November 1, 2014 |  | $ 8,215,000
Smithfield Plaza |  | October 21, 2014 |  | May 11, 2016 |  | $ 6,616,000
Elmhurst Square |  | December 11, 2014 |  | December 11, 2014 |  | $ 3,638,000
2013 |  |  |  |  |  |
East Chestnut |  | January 2, 2013 |  | April 1, 2018 |  | $ 1,538,000
Academy Plaza |  | January 10, 2013 |  | March 10, 2013 |  | $ 8,633,000
Fort Washington |  | January 29, 2013 |  | January 29, 2013 |  | $ 5,384,000
General Booth |  | February 1, 2013 |  | August 1, 2013 |  | $ 4,960,000
Kempsville Crossing |  | February 1, 2013 |  | August 1, 2013 |  | $ 5,592,000
Smithfield Plaza |  | February 1, 2013 |  | August 1, 2013 |  | $ 3,200,000
Suffolk Plaza |  | February 1, 2013 |  | August 1, 2013 |  | $ 4,185,000
Virginia Little Creek |  | February 1, 2013 |  | August 1, 2013 |  | $ 4,484,000
Carbondale Plaza |  | June 17, 2013 |  | May 1, 2015 |  | $ 4,721,000
Port Richmond |  | July 30, 2013 |  | August 1, 2013 |  | $ 13,690,000
Timpany Plaza |  | November 1, 2013 |  | January 1, 2014 |  | $ 7,610,000
During 2014 and 2013, in connection with these repayments, the Company incurred charges relating to early extinguishment of mortgage loans payable (prepayment penalties and accelerated amortization of deferred financing costs) of $825,000 and $106,000, respectively, included in continuing operations. In addition, during 2013, in connection with these repayments, the Company incurred charges relating to early extinguishment of mortgage loans payable (prepayment penalties and accelerated amortization of deferred financing costs) of $437,000, included in discontinued operations. Mortgage Loans Payable – Real Estate Held for Sale/Conveyance The Company had no debt included in mortgage loans payable – real estate held for sale/conveyance at December 31, 2014. Debt included in mortgage loans payable – real estate held for sale/conveyance is comprised of the following at December 31, 2013:
|  | December 31, 2013
|  |  |  | Interest rates
|  | Balance |  | Weighted |  |
Description |  | outstanding |  | average |  | Range
Fixed-rate mortgages (a) |  | $ 22,848,000 |  | 5.4% |  | 5.2% - 6.1%
(a) At December 31, 2013, the Company had a mortgage loan payable of approximately $11.9 million, subject to an interest rate swap which converted the LIBOR-based variable rate to a fixed annual rate of 5.2% per annum.
Unsecured Revolving C redit F acilit y and Term Loans On August 13, 2013, the Company entered into a $310 million unsecured credit facility which, as amended on February 5, 2015, consists of (1) a $260 million revolving credit facility, expiring on February 5, 2019, and (2) a $50 million term loan, expiring on February 5, 2020. T he revolving credit facility may be extended, at the Company’s option, for an additional one-year period, s ubject to customary conditions. Under an accordion feature, the facility can be increased to $750 million, subject to customary conditions and lending commitments. Borrowings under the revolving credit facility component can range from LIBOR plus 135 bps to 195 bps (150 bps on February 5, 2015) and borrowing under the term loan component can range from 130 to 190 bps (145 bps on February 5, 2015), each based on the Company’s leverage ratio. As of December 31, 2014, the Company had $187.7 million available for additional borrowings under the revolving credit facility. On February 11, 2014, the Company closed $150 million of unsecured term loans comprised of a five-year $75 million term loan, maturing on February 11, 2019, and a seven-year $75 million term loan, maturing on February 11, 2021. As amended on February 5, 2015, borrowing under the five-year $75 million term loan can range from LIBOR plus 130 bps to 190 bps (145 bps on February 5, 2015) and borrowings under the seven-year $75 million term loan can range from LIBOR plus 170 bps to 230 bps (180 bps on February 5, 2015), each based on the Company’s leverage ratio. Additionally, the Company has entered into forward interest rate swap agreements which convert the LIBOR rates to fixed rates for these term loans beginning July 1, 2014 through their maturities. Reflecting the February 5, 2015 amendment, the new effective fixed interest rates are 3.1% for the five-year $75 million term loan and 4.1% for the seven-year $75 million term loan. On February 5, 2015, the Company closed $100 million of new unsecured term loans comprised of a five-year $50 million term loan maturing February 5, 2020 (all of which was borrowed at closing), and a seven-year $50 million term loan maturing February 5, 2022. Proceeds from the seven-year term loan can be drawn at any time from closing until July 1, 2015. Borrowings under the five-year $50 million term loan can range from 130 to 190 bps (145 bps on February 5, 2015) and borrowing under the seven-year $50 million term loan can range from LIBOR plus 155 bps to 215 bps (170 bps as of February 5, 2015), each based on the Company’s leverage ratio. Additionally, the Company entered into forward interest rate swap agreements which converted the LIBOR rates to fixed rates for these term loans beginning July 1, 2015 through their maturities. As a result, the effective fixed interest rates will be 2.9% for the five-year $50 million term loan and 3.4% for the seven-year $50 million term loan. The Company’s unsecured credit facility and term loans contain financial covenants including, but not limited to, maximum debt leverage, maximum secured debt, minimum fixed charge coverage, and minimum net worth. In addition, the facility contains restrictions including, but not limited to, limits on indebtedness, certain investments and distributions. The Company’s failure to comply with the covenants or the occurrence of an event of default under the facility could result in the acceleration of the related debt. As of December 31, 2014, the Company is in compliance with all financial covenants. Scheduled Principal Payments Scheduled principal payments on mortgage loans payable, term loans, and the credit facility at December 31, 2014, due on various dates from 2015 to 2029, are as follows:
2015 |  | $ 110,479,000 | (a)
2016 |  | 133,018,000 |
2017 |  | 62,923,000 |
2018 |  | 20,158,000 |
2019 |  | 149,037,000 | (b)
Thereafter |  | 189,773,000 | (c)
|  | $ 665,388,000 |
(a) To be substantially refinanced with the proceeds from unsecured term loans which closed on February 5, 2015. (b) As amended on February 5, 2015, includes $72.0 million applicable to the unsecured revolving credit facility, subject to a one-year extension option, originally due in 2016. (c) As amended on February 5, 2015, includes $50.0 million applicable to a term loan originally due in 2018. Derivative Financial I nstruments As discussed above, on February 11, 2014, the Company closed $150 million of unsecured term loans for which it entered into forward interest rate swap agreements, which became effective on July 1, 2014. On May 29, 2014, the Company sold Townfair Center, which collateralized an $11.8 million mortgage loan payable subject to an interest rate swap having a fair value recorded as a liability of $0.7 million. At closing, the buyer assumed both the outstanding mortgage loan payable and the related interest rate swap, and the aforementioned $0.7 million was removed from both accumulated other comprehensive loss and accounts payable and accrued liabilities. At December 31, 2014, the Company had $2,777,000 on the consolidated balance sheet included in a ccounts payable and accrued liabilities relating to the fair value of the interest rate swaps applicable to the $150 million unsecured term loans which closed on February 11, 2014. Charges and/or credits relating to the changes in the fair value of the interest rate swaps are made to accumulated other comprehensive income (loss), noncontrolling interests (minority interests in consolidated joint ventures and limited partners’ interest), or operations (included in interest expense), as app licable. Over time, the unrealized gains and losses recorded in accumulated other comprehensive loss will be reclassified into earnings as an increase or reduction to interest expense in the same periods in which the hedged interest payments affect earnings. The Company estimates that approximately $2.7 million of accumulated other comprehensive loss will be reclassified as a charge to earnings within the next twelve months. The following is a summary of the derivative financial instruments held by the Company at December 31, 2014 and December 31, 201 3:
|  |  |  |  | Notional values |  |  |  | Balance |  | Fair value
Designation/ |  |  |  |  | December 31, |  |  |  | December 31, |  | Maturity |  | sheet |  | December 31, |  | December 31,
Cash flow | Derivative |  | Count |  | 2014 |  | Count |  | 2013 |  | date |  | location |  | 2014 |  | 2013
Qualifying | Interest rate swaps |  | 2 |  | $ 150,000,000 |  | - |  | $ - |  | 2019/2021 |  | Accounts payable and accrued liabilities |  | $ 2,777,000 |  | $ -
Qualifying | Interest rate swap |  | - |  | $ - |  | 1 |  | $ 11,894,000 | (a) | - |  | Accounts payable and accrued liabilities |  | $ - |  | $ 647,000
(a) Amount is an interest rate swap related to mortgage loans payable - real estate held for sale/conveyance on the consolidated balance sheet.
The following presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations and the consolidated statements of equity 2014 and 201 3, respectively:
|  |  |  | Gain (loss) recognized in other |
|  |  |  | comprehensive income |
|  |  |  | (effective portion) |
Designation/ |  |  |  | Years ended December 31, |
Cash flow |  | Derivative |  | 2014 |  | 2013 |
Qualifying |  | Interest rate swaps |  | $ (3,650,000) |  | $ 202,000 |
|  |  |  | Gain (loss) recognized in other |
|  |  |  | comprehensive income |
|  |  |  | reclassified into earnings (effective portion) |
|  |  |  | Years ended December 31, |
|  | Classification |  | 2014 |  | 2013 |
|  | Continuing Operations |  | $ 1,663,000 |  | $ 749,000 |
|  | Discontinued Operations |  | $ 129,000 |  | $ 309,000 |
As of December 31, 2014, the Company believes it has no significant risk associated with non-performance of the financial institutions which are the counterparties to its derivative contracts. Additionally, based on the rates in effect as of December 31, 2014, if a counterparty were to default, the Company would receive a net interest benefit.

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- 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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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