Mortgages Payable and Debt Maturities |
7. MORTGAGES PAYABLE AND DEBT MATURITIES
Mortgages payable at June 30, 2020 and December 31, 2019 consist of the following:
(dollars in thousands)
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June 30,
2020
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December 31,
2019
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4.98% mortgage note due January 1, 2021, secured by one
self-storage facility with an aggregate net book value of $9.3
million, principal and interest paid monthly
(effective interest rate 5.25%)
|
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$
|
2,778
|
|
|
$
|
2,807
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4.065% mortgage note due April 1, 2023, secured by one self-
storage facility with an aggregate net book value of $7.2
million, principal and interest paid monthly
(effective interest rate 4.33%)
|
|
|
3,883
|
|
|
|
3,932
|
|
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 5.60%)
|
|
|
3,763
|
|
|
|
3,800
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|
4.4625% mortgage notes due December 6, 2024, secured by
three self-storage facilities with an aggregate net book value
of $55.2 million, principal and interest paid monthly
(effective interest rate 3.18%)
|
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|
22,814
|
|
|
|
22,942
|
|
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 6.37%)
|
|
|
1,281
|
|
|
|
1,370
|
|
Total mortgages payable
|
|
$
|
34,519
|
|
|
$
|
34,851
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|
The table below summarizes the Company’s debt obligations at June 30, 2020. 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 such 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.
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Expected Maturity Date Including Discount
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(dollars in thousands)
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2020
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2021
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2022
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2023
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|
|
2024
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Thereafter
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Total
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Fair Value
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Line of credit - variable rate
LIBOR + 0.95% (1.13% at
June 30, 2020)
|
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—
|
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|
|
—
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|
|
—
|
|
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$
|
158,000
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
158,000
|
|
|
$
|
158,000
|
|
Notes Payable:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Term note - fixed rate 5.54%
|
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—
|
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$
|
100,000
|
|
|
|
—
|
|
|
|
—
|
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|
|
—
|
|
|
|
—
|
|
|
$
|
100,000
|
|
|
$
|
105,266
|
|
Term note - fixed rate 4.533%
|
|
|
—
|
|
|
|
—
|
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|
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—
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|
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—
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$
|
175,000
|
|
|
|
—
|
|
|
$
|
175,000
|
|
|
$
|
192,100
|
|
Term note - fixed rate 3.50%
|
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|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
600,000
|
|
|
$
|
600,000
|
|
|
$
|
639,875
|
|
Term note - fixed rate 3.875%
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
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|
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—
|
|
|
|
—
|
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$
|
450,000
|
|
|
$
|
450,000
|
|
|
$
|
495,635
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|
Term note - fixed rate 3.67%
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
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$
|
200,000
|
|
|
$
|
200,000
|
|
|
$
|
216,385
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Term note - fixed rate 4.00%
|
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—
|
|
|
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—
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—
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—
|
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—
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$
|
350,000
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$
|
350,000
|
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$
|
384,378
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|
Mortgage note - fixed rate 4.98%
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|
$
|
30
|
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|
$
|
2,748
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|
|
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—
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—
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—
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—
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$
|
2,778
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|
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$
|
2,787
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Mortgage note - fixed rate 4.065%
|
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$
|
50
|
|
|
$
|
104
|
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|
$
|
108
|
|
|
$
|
3,621
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
3,883
|
|
|
$
|
3,846
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|
Mortgage note - fixed rate 5.26%
|
|
$
|
37
|
|
|
$
|
78
|
|
|
$
|
83
|
|
|
$
|
3,565
|
|
|
|
—
|
|
|
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—
|
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$
|
3,763
|
|
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$
|
3,862
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Mortgage notes - fixed rate 4.4625%
|
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—
|
|
|
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—
|
|
|
|
—
|
|
|
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—
|
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$
|
22,814
|
|
|
|
—
|
|
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$
|
22,814
|
|
|
$
|
21,607
|
|
Mortgage note - fixed rate 5.99%
|
|
$
|
92
|
|
|
$
|
192
|
|
|
$
|
203
|
|
|
$
|
216
|
|
|
$
|
229
|
|
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$
|
349
|
|
|
$
|
1,281
|
|
|
$
|
1,335
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|
Total
|
|
$
|
209
|
|
|
$
|
103,122
|
|
|
$
|
394
|
|
|
$
|
165,402
|
|
|
$
|
198,043
|
|
|
$
|
1,600,349
|
|
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$
|
2,067,519
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