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Mortgage Loans Payable And Credit Facility | 3 Months Ended
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Mar. 31, 2015
Mortgage Loans Payable And Credit Facility [Abstract] |
Mortgage Loans Payable And Credit Facility | Note 6. Mortgage Loans Payable and Credit Facility Mortgage Loans Payable During the three months ended March 31, 2015, the Company repaid the following mortgage loans payable:
|  |  |  | Principal Payoff
Property |  | Repayment Date |  | Amount
New London Mall |  | February 1, 2015 |  | $ 27,365,000
Oak Ridge Shopping Center |  | March 11, 2015 |  | $ 3,155,000
Unsecured Revolving Credit Facility and Term Loans The Company has 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. The revolving credit facility may be extended, at the Company’s option, for an additional one-year period, subject 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 basis points (“bps”) to 195 bps (135 bps at March 31, 2015) and borrowing under the term loan component can range from LIBOR plus 130 to 190 bps (130 bps at March 31, 2015), each based on the Company’s leverage ratio. As of March 31, 2015, the Company had $184.0 million available for additional borrowings under the revolving credit facility. The Company has $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, borrowing s under the five-year $75 million term loan can range from LIBOR plus 130 bps to 190 bps (130 bps at March 31, 2015) and borrowings under the seven-year $75 million term loan can range from LIBOR plus 170 bps to 230 bps (170 bps at March 31, 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 through their maturities. As of March 31, 2015, the effective fixed interest rates are 2.9% for the five-year $75 million term loan and 4.0% for the seven-year $75 million term loan, respectively. 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 until July 1, 2015. Borrowings under the five-year $50 million term loan can range from LIBOR plus 130 to 190 bps (130 bps at March 31, 2015) and borrowings under the seven-year $50 million term loan can range from LIBOR plus 155 bps to 215 bps (155 bps at March 31, 2015), each based on the Company’s leverage ratio. Additionally, the Company entered into forward interest rate swap agreements which will convert the LIBOR rates to fixed rates for these term loans beginning July 1, 2015 through their maturities. Based on the Company’s leverage ratio as of March 31, 2015, the effective fixed interest rates would be 2.8% for the five-year $50 million term loan and 3.3% for the seven-year $50 million term loan beginning on July 1, 2015. 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. Although the credit facility is unsecured, borrowing availability is based on unencumbered property adjusted net operating income, as defined in the agreement. 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 March 31, 2015 the Company is in compliance with all financial covenants. Derivative Financial Instruments At March 31, 2015, the Company had $4,861,000 on the consolidated balance sheet included in accounts payable and accrued liabilities relating to the fair value of the interest rate swaps applicable to the unsecured term loans discussed above. 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 applicable. 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 $3.5 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 March 31, 2015 and December 31, 2014:
March 31, 2015
Designation/ |  |  |  |  |  | Notional |  | Fair |  | Maturity |  | Balance sheet
Cash flow |  | Derivative |  | Count |  | value |  | value |  | dates |  | location
Qualifying |  | Interest rate swaps |  | 4 |  | $ 200,000,000 |  | $ 4,861,000 |  | 2019 - 2022 |  | Accounts payable and accrued liabilities
December 31, 2014
Designation/ |  |  |  |  |  | Notional |  | Fair |  | Maturity |  | Balance sheet
Cash flow |  | Derivative |  | Count |  | value |  | value |  | dates |  | location
Qualifying |  | Interest rate swaps |  | 2 |  | $ 150,000,000 |  | $ 2,777,000 |  | 2019 and 2021 |  | Accounts payable and accrued liabilities
The following presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations and the consolidated statements of equity for the three months ended March 31, 2015 and 2014, respectively:
|  |  |  | Gain (loss) recognized in other |
|  |  |  | comprehensive income |
|  |  |  | (effective portion) |
Designation/ |  |  |  | Three months ended March 31, |
Cash flow |  | Derivative |  | 2015 |  | 2014 |
Qualifying |  | Interest rate swaps |  | $ (2,747,000) |  | $ 535,000 |
|  |  |  | Gain (loss) recognized in other |
|  |  |  | comprehensive income |
|  |  |  | reclassified into earnings (effective portion) |
|  |  |  | Three months ended March 31, |
|  | Classification |  | 2015 |  | 2014 |
|  | Continuing Operations |  | $ 731,000 |  | $ 77,000 |
|  | Discontinued Operations |  | $ - |  | $ 76,000 |
As of March 31, 2015, 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 March 31, 2015, 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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