Quarterly report pursuant to Section 13 or 15(d)

Mortgages Payable

v2.3.0.15
Mortgages Payable
9 Months Ended
Sep. 30, 2011
Mortgages Payable [Abstract]  
Mortgages Payable
7.

MORTGAGES PAYABLE

Mortgages payable at September 30, 2011 and December 31, 2010 consist of the following:

 

The Company assumed the 7.25%, 6.76%, 6.35%, and 5.99% mortgage notes in connection with the acquisitions of storage facilities from 2005 through 2011. The 7.25% mortgage was recorded at its estimated fair value based upon the estimated market rate at the time of the acquisition of 5.40%. The carrying value of this mortgage exceeds the outstanding principal balance by less than $0.1 million at September 30, 2011, and this premium will be amortized over the remaining term of the mortgage based on the effective interest method.

The table below summarizes the Company's debt obligations and interest rate derivatives at September 30, 2011. 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. 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)    2011      2012      2013      2014      2015      Thereafter      Total     

Fair

Value

 
Line of credit - variable rate LIBOR +
2.0% (2.23% at September 30, 2011)
     -            -            -            -           -           $114,000        $114,000         $114,000   

Notes Payable:

                       

Term note - variable rate LIBOR+2.0%

    (2.23% at September 30, 2011)

     -            -            -            -           -           $125,000        $125,000         $125,000   

Term note - variable rate LIBOR+1.50%

    (1.99% at September 30, 2011)

     -            -            $ 20,000         -           -           -           $  20,000         $  20,000   

Term note - fixed rate 6.26%

     -            -            $ 80,000         -           -           -           $  80,000         $  84,627   

Term note - fixed rate 6.38%

     -            -            -            -           -           $150,000         $150,000         $162,781   

Term note - fixed rate 5.54%

     -            -            -            -           -           $100,000         $100,000         $95,709   

Mortgage note - fixed rate 7.80%

     $27,315         -            -            -           -           -           $  27,315         $  27,514   

Mortgage note - fixed rate 7.19%

     $      336         $ 38,963         -            -           -           -           $  39,299         $  39,871   

Mortgage note - fixed rate 7.25%

     $  3,103         -            -            -            -           -           $    3,103         $    3,113   

Mortgage note - fixed rate 6.76%

     $          7         $         29         $      896         -         -           -           $        932         $        976   

Mortgage note - fixed rate 6.35%

     $          8         $         31         $        34         $  949         -           -           $    1,022         $    1,067   

Mortgage notes - fixed rate 5.99%

     $        27         $       112         $      119         $  126         $134          $1,993        $    2,511         $    2,522   

Interest rate derivatives – liability

     -            -            -            -            -           -           -           $  8,649