Quarterly report pursuant to Section 13 or 15(d)

Mortgages Payable and Debt Maturities

v3.4.0.3
Mortgages Payable and Debt Maturities
3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
Mortgages Payable and Debt Maturities
6. MORTGAGES PAYABLE AND DEBT MATURITIES

Mortgages payable at March 31, 2016 and December 31, 2015 consist of the following:

 

(dollars in thousands)

   March 31,
2016
     December 31,
2015
 

5.99% mortgage notes due May 1, 2026, secured by one self-storage facility with an aggregate net book value of $4.3 million, principal and interest paid monthly (effective interest rate 6.24%)

     1,959         1,993   
  

 

 

    

 

 

 

Total mortgages payable

   $ 1,959       $ 1,993   
  

 

 

    

 

 

 

 

The table below summarizes the Company’s debt obligations and interest rate derivatives at March 31, 2016. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of the fixed rate term notes and mortgage notes were estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. These assumptions are considered Level 2 inputs within the fair value hierarchy as described in Note 8. The carrying values of our variable rate debt instruments approximate their fair values as these debt instruments bear interest at current market rates that approximate market participant rates. This is considered a Level 2 input within the fair value hierarchy. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company would realize in a current market exchange.

 

     Expected Maturity Date Including Discount          

(dollars in thousands)

   2016      2017      2018      2019      2020      Thereafter      Total      Fair
Value
 

Line of credit - variable rate LIBOR + 1.10% (1.53% at March 31, 2016)

     —           —           —         $ 141,000         —           —         $ 141,000       $ 141,000   

Notes Payable:

                       

Term note - fixed rate 6.38%

   $ 150,000         —           —           —           —           —         $ 150,000       $ 153,184   

Term note - variable rate LIBOR+1.15% (1.59% at March 31, 2016)

     —           —           —           —         $ 325,000         —         $ 325,000       $ 325,000   

Term note - fixed rate 5.54%

     —           —           —           —           —         $ 100,000       $ 100,000       $ 112,467   

Term note - fixed rate 4.533%

     —           —           —           —           —         $ 175,000       $ 175,000       $ 186,337   

Mortgage note - fixed rate 5.99%

   $ 108       $ 151       $ 160       $ 170       $ 181       $ 1,189       $ 1,959       $ 2,096   

Interest rate derivatives – liability

     —           —           —           —           —           —           —         $ 26,846