| Schedule of debt |
Our debt consisted of the following (dollars in thousands):
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Maximum |
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Availability at |
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Carrying Value at |
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Scheduled Maturity |
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March 31,
2013 |
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March 31,
2013 |
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December 31,
2012 |
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Stated Interest Rates at |
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Dates at |
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March 31, 2013 |
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March 31, 2013 |
Mortgage and Other Secured Loans: |
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Fixed rate mortgage loans (1) |
N/A |
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$ |
931,952 |
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$ |
948,414 |
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3.96% - 7.87% (2) |
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2013-2034 |
Variable rate secured loans |
N/A |
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38,270 |
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38,475 |
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LIBOR + 2.25% (3) |
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2015 |
Other construction loan facilities |
$ |
70,800 |
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35,400 |
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29,557 |
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LIBOR + 1.95% to 2.75% (4) |
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2013-2015 |
Total mortgage and other secured loans |
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1,005,622 |
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1,016,446 |
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Revolving Credit Facility |
800,000 |
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— |
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— |
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LIBOR + 1.75% to 2.50% |
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September 1, 2014 |
Term Loan Facilities (5) |
770,000 |
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770,000 |
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770,000 |
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LIBOR + 1.65% to 2.60% (6) |
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2015-2019 |
Unsecured notes payable |
N/A |
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1,766 |
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1,788 |
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0% (7) |
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2026 |
4.25% Exchangeable Senior Notes (8) |
N/A |
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179,972 |
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230,934 |
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4.25% |
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April 2030 |
Total debt |
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$ |
1,957,360 |
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$ |
2,019,168 |
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(1) |
Several of the fixed rate mortgages carry interest rates that were above or below market rates upon assumption and therefore were recorded at their fair value based on applicable effective interest rates. The carrying values of these loans reflect net unamortized premiums totaling $877,000 at March 31, 2013 and $1.3 million at December 31, 2012.
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(2) |
The weighted average interest rate on these loans was 5.97% at March 31, 2013.
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(3) |
The interest rate on the loan outstanding was 2.45% at March 31, 2013.
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(4) |
The weighted average interest rate on these loans was 2.51% at March 31, 2013.
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(5) |
We have the ability to borrow an aggregate of an additional $180.0 million under these term loan facilities, provided that there is no default under the facilities and subject to the approval of the lenders.
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(6) |
The weighted average interest rate on these loans was 1.93% at March 31, 2013.
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(7) |
These notes carry interest rates that were below market rates upon assumption and therefore were recorded at their fair value based on applicable effective interest rates. The carrying value of these notes reflects an unamortized discount totaling $845,000 at March 31, 2013 and $873,000 at December 31, 2012.
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(8) |
As described further in our 2012 Annual Report on Form 10-K, these notes have an exchange settlement feature that provides that the notes may, under certain circumstances, be exchangeable for cash and, at the Operating Partnership’s discretion, our common shares at an exchange rate (subject to adjustment) of 20.8513 shares per one thousand dollar principal amount of the notes (exchange rate is as of March 31, 2013 and is equivalent to an exchange price of $47.96 per common share). During the three months ended March 31, 2013, we repaid $53.7 million principal amount of these notes and recognized a $5.3 million loss on early extinguishment of debt. The carrying value of these notes included a principal amount of $186.3 million and an unamortized discount totaling $6.3 million at March 31, 2013 and a principal amount of $240.0 million and an unamortized discount totaling $9.1 million at December 31, 2012. The effective interest rate under the notes, including amortization of the issuance costs, was 6.05%. Because the closing price of our common shares at March 31, 2013 and December 31, 2012 was less than the exchange price per common share applicable to these notes, the if-converted value of the notes did not exceed the principal amount. The table below sets forth interest expense recognized on these notes before deductions for amounts capitalized (in thousands):
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For the Three Months Ended March 31, |
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2013 |
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2012 |
Interest expense at stated interest rate |
$ |
2,304 |
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$ |
2,550 |
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Interest expense associated with amortization of discount |
864 |
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892 |
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Total |
$ |
3,168 |
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$ |
3,442 |
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| Schedule of the fair value of debt |
The following table sets forth information pertaining to the fair value of our debt (in thousands):
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March 31, 2013 |
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December 31, 2012 |
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Carrying |
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Estimated |
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Carrying |
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Estimated |
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Amount |
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Fair Value |
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Amount |
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Fair Value |
Fixed-rate debt |
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4.25% Exchangeable Senior Notes |
$ |
179,972 |
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$ |
187,150 |
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$ |
230,934 |
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$ |
240,282 |
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Other fixed-rate debt |
933,718 |
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947,263 |
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950,202 |
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968,180 |
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Variable-rate debt |
843,670 |
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849,555 |
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838,032 |
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845,558 |
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$ |
1,957,360 |
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$ |
1,983,968 |
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$ |
2,019,168 |
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$ |
2,054,020 |
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