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Mortgage Loans Payable And Credit Facilities | 9 Months Ended
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Sep. 30, 2016
Debt Disclosure [Abstract] |
Mortgage Loans Payable And Credit Facilities | Note 5. Mortgage Loans Payable and Credit Facility In April 2015, the FASB issued guidance which amends the balance sheet presentation for debt issuance costs. Under the amended guidance, the Company presents the balance of unamortized debt issuance costs for mortgage loans payable and term loans as a direct deduction from the carrying amount of that debt liability. The guidance was adopted on January 1, 2016 and has been applied on a retrospective basis. Mortgage Loans Payable The Company repaid the following mortgage loans payable during 2016:
|  |  |  | Principal payoff |
Property |  | Repayment date |  | amount |
Gold Star Plaza |  | March 10, 2016 |  | $ | 953,000 |
West Bridgewater |  | June 6, 2016 |  | $ | 10,037,000 |
Hamburg Square |  | July 1, 2016 |  | $ | 4,569,000 |
Meadows Marketplace |  | August 1, 2016 |  | $ | 9,089,000 |
Carman's Plaza |  | August 1, 2016 |  | $ | 33,500,000 |
San Souci Plaza |  | September 1, 2016 |  | $ | 27,200,000 |
Camp Hill |  | September 30, 2016 |  | $ | 60,742,000 |
On May 3, 2016, the Company refinanced its existing $40.3 million mortgage loan payable secured by Franklin Village Plaza with a new $50.0 million mortgage loan payable, bearing interest at the rate of 3.9% per annum and maturing in June 2026. Unsecured Revolving Credit Facility and Term Loans The Company has a $310 million unsecured credit facility which consists of (1) a $260 million revolving credit facility, and (2) a $50 million term loan. Under an accordion feature, the facility can be increased to $750 million, subject to customary conditions and lending commitments. As of September 30, 2016, the Company had $130.0 million available for additional borrowings under the revolving credit facility. On April 26, 2016, the Company closed a new $100 million unsecured term loan maturing on April 26, 2023 (all of which was borrowed on September 30, 2016). Proceeds were used primarily to repay mortgages maturing through January 2017. Interest on borrowings under the term loan can range from LIBOR plus 165 to 225 bps (165 bps on September 30, 2016), based on the Company’s leverage ratio. Additionally, the Company entered into a forward interest rate swap agreement which converts the LIBOR rate to a fixed rate for the term loan beginning November 1, 2016 through its maturity. As a result, the effective fixed interest rate will be 3.2%, based on the Company’s leverage ratio at September 30, 2016. 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 agreements. The Company’s failure to comply with the covenants or the occurrence of an event of default under the facilities could result in the acceleration of the related debt. As of September 30, 2016 the Company is in compliance with all financial covenants. Interest on borrowings under the unsecured credit facility and terms loans are based on the Company’s leverage ratio. Derivative Financial Instruments At September 30, 2016, the Company had $11.2 million included in accounts payable and accrued liabilities on the consolidated balance sheet 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 $3.9 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 September 30, 2016 and December 31, 2015:
September 30, 2016
Designation/ |  |  |  |  |  |  |  | Notional |  |  | Fair |  |  | Maturity |  | Balance sheet
Cash flow |  | Derivative |  | Count |  |  | value |  |  | value |  |  | dates |  | location
Qualifying |  | Interest rate swaps |  |  | 5 |  |  | $ | 350,000,000 |  |  | $ | 11,161,000 |  |  | 2019 - 2023 |  | Accounts payable and accrued liabilities
December 31, 2015
Designation/ |  |  |  |  |  |  |  | Notional |  |  | Fair |  |  | Maturity |  | Balance sheet
Cash flow |  | Derivative |  | Count |  |  | value |  |  | value |  |  | dates |  | location
Qualifying |  | Interest rate swaps |  |  | 4 |  |  | $ | 250,000,000 |  |  | $ | 3,945,000 |  |  | 2019 - 2022 |  | 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 and nine months ended September 30, 2016 and 2015, respectively:
|  |  |  | Gain (loss) recognized in other |
|  |  |  | comprehensive income |
|  |  |  | (effective portion) |
Designation/ |  |  |  | Three months ended September 30, |  |  | Nine months ended September 30, |
Cash flow |  | Derivative |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Qualifying |  | Interest rate swaps |  | $ | 1,625,000 |  |  | $ | (5,434,000 | ) |  | $ | (9,771,000 | ) |  | $ | (6,619,000 | )
|  |  |  | (Loss) recognized in other |
|  |  |  | comprehensive income |
|  |  |  | reclassified into earnings (effective portion) |
|  |  |  | Three months ended September 30, |  |  | Nine months ended September 30, |
|  | Classification |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
|  | Continuing Operations |  | $ | (881,000 | ) |  | $ | (1,087,000 | ) |  | $ | (2,711,000 | ) |  | $ | (2,550,000 | )
As of September 30, 2016 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 September 30, 2016, 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 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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