Quarterly report pursuant to Section 13 or 15(d)

Mortgages Payable and Debt Maturities

v3.10.0.1
Mortgages Payable and Debt Maturities
9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Mortgages Payable and Debt Maturities

7. MORTGAGES PAYABLE AND DEBT MATURITIES

Mortgages payable at September 30, 2018 and December 31, 2017 consist of the following:

 

(dollars in thousands)

 

September 30,

2018

 

 

December 31,

2017

 

4.98% mortgage note due January 1, 2021, secured by one

   self-storage facility with an aggregate net book value of $9.5

   million, principal and interest paid monthly

   (effective interest rate 5.24%)

 

$

2,877

 

 

$

2,916

 

4.065% mortgage note due April 1, 2023, secured by one self-

   storage facility with an aggregate net book value of $7.5

   million, principal and interest paid monthly

   (effective interest rate 4.31%)

 

 

4,051

 

 

 

4,119

 

5.26% mortgage note due November 1, 2023, secured by one

   self-storage facility with an aggregate net book value of $7.9

   million, principal and interest paid monthly

   (effective interest rate 5.58%)

 

 

3,888

 

 

 

3,939

 

5.99% mortgage note due May 1, 2026, secured by one self-

   storage facility with an aggregate net book value of $6.5

   million, principal and interest paid monthly

   (effective interest rate 6.30%)

 

 

1,581

 

 

 

1,700

 

Total mortgages payable

 

$

12,397

 

 

$

12,674

 

 

The table below summarizes the Company’s debt obligations at September 30, 2018. 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 9. 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)

 

2018

 

 

2019

 

 

2020

 

 

2021

 

 

2022

 

 

Thereafter

 

 

Total

 

 

Fair Value

 

Line of credit - variable rate

LIBOR + 1.10% (3.28% at

   September 30, 2018)

 

 

 

 

$

128,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

128,000

 

 

$

128,000

 

Notes Payable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term note - variable rate

   LIBOR + 1.15% (3.25% at

   September 30, 2018)

 

 

 

 

 

 

 

$

100,000

 

 

 

 

 

 

 

 

 

 

 

$

100,000

 

 

$

100,000

 

Term note - fixed rate 5.54%

 

 

 

 

 

 

 

 

 

 

$

100,000

 

 

 

 

 

 

 

 

$

100,000

 

 

$

104,084

 

Term note - fixed rate 4.533%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

175,000

 

 

$

175,000

 

 

$

176,767

 

Term note - fixed rate 3.50%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

600,000

 

 

$

600,000

 

 

$

563,528

 

Term note - fixed rate 3.875%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

450,000

 

 

$

450,000

 

 

$

421,815

 

Term note - fixed rate 3.67%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

200,000

 

 

$

200,000

 

 

$

180,734

 

Mortgage note - fixed rate 4.98%

 

$

14

 

 

$

56

 

 

$

59

 

 

$

2,748

 

 

 

 

 

 

 

 

$

2,877

 

 

$

2,887

 

Mortgage note - fixed rate 4.065%

 

$

23

 

 

$

96

 

 

$

99

 

 

$

104

 

 

$

108

 

 

$

3,621

 

 

$

4,051

 

 

$

3,911

 

Mortgage note - fixed rate 5.26%

 

$

17

 

 

$

71

 

 

$

74

 

 

$

78

 

 

$

83

 

 

$

3,565

 

 

$

3,888

 

 

$

3,944

 

Mortgage note - fixed rate 5.99%

 

$

41

 

 

$

170

 

 

$

181

 

 

$

192

 

 

$

203

 

 

$

794

 

 

$

1,581

 

 

$

1,638

 

Total

 

$

95

 

 

$

128,393

 

 

$

100,413

 

 

$

103,122

 

 

$

394

 

 

$

1,432,980

 

 

$

1,765,397