Quarterly report pursuant to Section 13 or 15(d)

Debt, Net

v3.23.2
Debt, Net
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Debt, Net Debt, Net
 
Our debt consisted of the following (dollars in thousands):
  Carrying Value (1) as of June 30, 2023
June 30,
2023		 December 31, 2022
  Stated Interest Rates Scheduled Maturity
Mortgage and Other Secured Debt:        
Fixed rate mortgage debt $ 67,415  $ 84,433 
3.82% to 4.62% (2)
 2024-2026
Variable rate secured debt 33,106  33,318 
SOFR + 0.10%
+ 1.45% to 1.55% (3)
 2025-2026
Total mortgage and other secured debt 100,521  117,751     
Revolving Credit Facility 171,000  211,000 
SOFR + 0.10%
+ 0.725% to 1.400% (4)
 October 2026 (5)
Term Loan Facility 124,120  123,948 
SOFR + 0.10%
+ 0.850% to 1.700% (6)
 January 2026 (7)
Unsecured Senior Notes
2.25%, $400,000 aggregate principal
 397,071  396,539 
2.25% (8)
 March 2026
2.00%, $400,000 aggregate principal
 397,229  396,988 
2.00% (9)
 January 2029
2.75%, $600,000 aggregate principal
 590,664  590,123 
2.75% (10)
 April 2031
2.90%, $400,000 aggregate principal
 395,055  394,848 
2.90% (11)
 December 2033
Unsecured note payable 514  597 
0% (12)
 May 2026
Total debt, net $ 2,176,174  $ 2,231,794     
(1)The carrying values of our debt other than the Revolving Credit Facility reflect net deferred financing costs of $4.8 million as of June 30, 2023 and $5.4 million as of December 31, 2022.
(2)The weighted average interest rate on our fixed rate mortgage debt was 4.10% as of June 30, 2023.
(3)Including the effect of interest rate swaps that hedge the risk of interest rate changes, the weighted average interest rate on our variable rate secured debt as of June 30, 2023 was 2.45%; excluding the effect of these swaps, the weighted average interest rate on this debt as of June 30, 2023 was 6.67%.
(4)The weighted average interest rate on the Revolving Credit Facility was 6.28% as of June 30, 2023, excluding the effect of interest rate swaps that hedge the risk of interest rate changes (see Note 9).
(5)The facility matures in October 2026, with the ability for us to extend such maturity by two six-month periods at our option, provided that there is no default under the facility and we pay an extension fee of 0.0625% of the total availability under the facility for each extension period.
(6)The interest rate on this loan was 6.56% as of June 30, 2023, excluding the effect of interest rate swaps that hedge the risk of interest rate changes (see Note 9).
(7)This facility matures in January 2026, with the ability for us to extend such maturity by two 12-month periods at our option, provided that there is no default under the facility and we pay an extension fee of 0.125% of the outstanding loan balance for each extension period.
(8)The carrying value of these notes reflects an unamortized discount totaling $2.4 million as of June 30, 2023 and $2.8 million as of December 31, 2022. The effective interest rate under the notes, including amortization of the issuance costs, was 2.48%.
(9)The carrying value of these notes reflects an unamortized discount totaling $2.0 million as of June 30, 2023 and $2.1 million as of December 31, 2022. The effective interest rate under the notes, including amortization of the issuance costs, was 2.09%.
(10)The carrying value of these notes reflects an unamortized discount totaling $8.1 million as of June 30, 2023 and $8.5 million as of December 31, 2022. The effective interest rate under the notes, including amortization of the issuance costs, was 2.94%.
(11)The carrying value of these notes reflects an unamortized discount totaling $4.1 million as of June 30, 2023 and $4.2 million as of December 31, 2022. The effective interest rate under the notes, including amortization of the issuance costs, was 3.01%.
(12)This note carries an interest rate that, upon assumption, was below market rates and it therefore was recorded at its fair value based on applicable effective interest rates.  The carrying value of this note reflects an unamortized discount totaling $47,000 as of June 30, 2023 and $65,000 as of December 31, 2022.
 
All debt is owed by the Operating Partnership. While COPT is not directly obligated by any debt, it has guaranteed COPLP’s Revolving Credit Facility, Term Loan Facility and Unsecured Senior Notes.

Certain of our debt instruments require that we comply with a number of restrictive financial covenants.  As of June 30, 2023, we were compliant with these financial covenants.
Our debt matures on the following schedule (in thousands):
Year Ending December 31, June 30, 2023
2023 (1)
 $ 1,516 
2024 29,983 
2025 23,717 
2026 742,300 
2027 — 
Thereafter 1,400,000 
Total $ 2,197,516  (2)
(1)Represents the six months ending December 31, 2023.
(2)Represents scheduled principal amortization and maturities only and therefore excludes net discounts and deferred financing costs of $21.3 million.

We capitalized interest costs of $1.2 million in the three months ended June 30, 2023, $1.4 million in the three months ended June 30, 2022, $2.0 million in the six months ended June 30, 2023 and $2.9 million in the six months ended June 30, 2022.

The following table sets forth information pertaining to the fair value of our debt (in thousands): 
  June 30, 2023 December 31, 2022
  Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value
Fixed-rate debt        
Unsecured Senior Notes $ 1,780,019  $ 1,401,467  $ 1,778,498  $ 1,433,561 
Other fixed-rate debt 67,929  63,545  85,030  80,330 
Variable-rate debt 328,226  328,340  368,266  367,896 
  $ 2,176,174  $ 1,793,352  $ 2,231,794  $ 1,881,787